IMCA General Contracting Principles

IMCA General Contracting Principles Rev. 1 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 General 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 General Contracting Principles Rev. 1" highlights sixteen 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.

Click here to download the principles as a PDF file.