WhoshouldIsee Tracks
4C Offshore Empowering Intelligence

A "standard contract" for offshore wind

4C Offshore | Chloe Emanuel
By: Chloe Emanuel 27/11/2023 IMCA

The International Marine Contractors Association (IMCA) has unveiled a "pioneering" standard contract designed explicitly for transport and installation (T&I) operations within offshore wind projects. This initiative attempts tp create a more balanced distribution of risk across the industry.


Following the release of IMCA's Contracting Principles earlier this year, the introduction of this standard contract aligns with IMCA's continuous efforts to foster sustainable contracting practices within offshore wind. Tim Pick, the UK's Offshore Wind Champion, acknowledged IMCA's Contracting Principles in his March 2023 report to the UK Government, highlighting its significance as a cornerstone of thought leadership in the field.


Recent setbacks in prominent offshore wind projects in both the UK and the USA have underscored the urgent need for a fairer risk allocation across the supply chain. IMCA's standard T&I contract, developed based on the 'FAIR' contracting principles, aims to address this critical industry challenge. These principles emphasise fairness, appropriateness, insurance coverage, and reasonableness in risk allocation.


Iain Grainger, CEO of IMCA, highlighted the potential consequences of project delays and cancellations on global Net Zero targets. Grainger pointed out what he considered the industry's frustration with inappropriate contracts that necessitate extensive and costly renegotiations, underscoring the pivotal role of IMCA's standardised contract in steering the industry towards fairness and sustainability.


Nathalie Louys, Chair of IMCA's Legal, Contracts, Insurance and Compliance (LCIC) Committee, and General Counsel at Subsea7, underscored the contract's significance in acknowledging the complexities of offshore wind construction. Louys stressed the document's alignment with FAIR risk allocation as a catalyst for productive collaboration to meet global offshore wind ambitions.


IMCA's upcoming seminar, 'Navigating Offshore Wind Contracts', slated for December 6th, 2023, in London, will delve into the current challenges surrounding offshore wind contracting, spotlighting the newly introduced standardized contract. The event will feature insights from industry leaders representing companies such as Allseas, DEME Offshore, EnBW UK, Heerema, NARDAC, Seaway7, and Van Oord.


Open to industry professionals, the seminar aims to drive discussions and collaborations for a more sustainable offshore wind sector.


For more information about offshore wind farm projects across the globe, click here.

Premium

ForeSEE Premium, our most popular subscription, gives you full access to use the ForeSEE WebApp which includes exclusive offshore wind, transmission and vessel reports, news and downloads.

Request a 30 minute Demo

Trending News!