The International Marine Contractors Association (IMCA) has published the “industry’s first” standard contract for transport and installation (T&I) works in offshore wind projects.
The contract has been written to ensure a fairer allocation of risk, IMCA said.
Building on the organisation’s contracting principles release in January, its publication comes on the heels of an IMCA-led campaign for an industry-wide discussion on sustainable contracting in offshore wind. Specifically, the campaign called for a more distributed allocation of risk across the supply chain.
“It’s not hyperbole to suggest that Net Zero targets around the globe are at risk if offshore wind projects continue to be delayed and cancelled. I also know from my discussions with Members how concerned they are with current market conditions and frustrated with having to deal with inappropriate contracts, which require lengthy and costly rounds of renegotiation,” said Iain Grainger, IMCA CEO.
IMCA’s standard T&I contract follows the ‘FAIR’ contracting principles, developed by IMCA’s Legal, Contracts, Insurance & Compliance (LCIC) Committee, which encourage an equitable allocation at risk, said the organisation.
These propose that contracts should be: Fair (with a realistic allocation of risk in proportion to relative rewards); Appropriate (with a distribution of risk to the best-placed party); Insured (have a sufficient scope of cover); and Reasonable (avoid duplicate risk assumptions and minimise the potential for disputes).
“This first contract with a limited scope recognises the current reality of offshore wind construction including the development of increasingly complex project solutions,” said Nathalie Louys, Chair of IMCA’s Legal, Contracts, Insurance and Compliance (LCIC) Committee, and General Counsel at Subsea7.
“With this document reflecting the FAIR allocation of risks, IMCA aims to set the tone so that the industry can move forward productively and collaboratively as we gear up to help meet global ambitions for offshore wind.”
Sourced by: offshoreWIND.biz
