Guidelines on Identifying and Assessing Risk in Construction Contracts

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 descriptions of 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 as a PDF file.