IMCA Contracting Principles is a discussion document published by the Association that it believes will serve the long-term interests of all participants in the oil and gas industry by encouraging an equitable contractual balance based on the parties' respective risks and rewards.
This, in turn, should improve relations, increase efficiency and reduce overall costs.
Risk allocation goals with the very apt acronym 'FAIR' lie at the heart of the newly published "IMCA Contracting Principles":
- Fair (not equal) and realistic distribution of risk in proportion to relative rewards
- Allocation of risk - to the party best placed to assume
- Insure - sufficient scope of cover
- Reasonable - avoid "duplicate" assumptions of risk and minimise potential for dispute
The eight-page "IMCA Contracting Principles" highlights fifteen principles with a legal definition being given followed by a comment more easily understood by the layman showing clearly how each principle measures up to IMCA's FAIR risk allocation goals.
Full details are provided in the associated press release.
Click here to download the principles in PDF format.
Risk Guidelines - July 2006
Two industry conferences in recent years concerning oil and gas contracting terms and risk led to a request for IMCA to develop Guidelines on Identifying and Assessing Risk in Construction Contracts: An IMCA Discussion Document, published in July 2006.
The handling of risk in construction contracts can vary considerably, depending on the nature and location of the work, the operator and contractor involved and the prevailing contracting climate. Each of these varies over time, while there are also outside influences such as banks, governments and the insurance market. In recent years, operators and contractors have remarked that the balance and handling of risks in some contracts was not ideal and in marine construction projects the technical, geographical and political risks keep getting tougher.
This discussion document contains discussion on specific risks, grouped into the following main risk areas: contractual, performance, financial, political, technical, geographical and operator risks. The aim is to promote dialogue between the parties and serve the long-term interests of all participants in the oil and gas industry. The target audience for this document, therefore, includes operators, contractors, sub-contractors, vendors, financiers, host governments and national oil companies plus the financial and insurance markets.
Click here to download the document in PDF format.
Other Contracts Work
To raise awareness on contracting matters among its members and their clients, IMCA has previously issued contracting principles specifically covering the offshore survey and ROV sectors, together with generic terms and conditions - see the links to the right for more details.
For further information on any aspect of IMCA's work on contracting issues, please contact Hugh Williams, IMCA Chief Executive.
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