From the President -  2010

In my last forward I discussed ‘risk’, and I want to continue with that theme as it is so important to us all.

The word ‘risk’ pops up regularly in Making Waves and publications alongside: analysis, assessment, capital, insurance, management, mitigation, reduction, transfer etc. Our publication Identifying and assessing risk in construction contracts discusses the fact that a contractor is engaged because a client wants to have construction works performed and the contractor is established as having the skills, personnel, equipment, time and desire to perform such works. We all know that performing construction works offshore, often in remote locations and in areas lacking infrastructure, involves risks associated with the weather, seabed, local and national regulations, political changes, tax regimes, currency exchange and currency export. Other risks relate to the performance of the work regardless of external risks, for example the ability of the contractor to obtain the right tools and use them in the right way.

The aim of the document is to promote dialogue and create clarity for the parties to allocate the risks in the contract at the outset, both fairly and clearly, and then to manage them.

The incident in the Gulf of Mexico has focused the minds of many parties on risk. The consequences may include pressures to change, for example in legislation, contracts and insurance. IMCA will continue to play its part, including being a forum for dialogue and a means to share ideas across the industry as they apply to the marine contracting sector. This is a positive action, but every action also has a ‘cost’ assigned to it. Risk allocation and management are not free but the cost of dealing with it is fundamentally worthwhile.

The IMCA annual seminar Delivering value in marine operations on 23-24 November in Dubai, UAE is both a huge opportunity for dialogue and sharing, as well as a means to show that delivering value is the best demonstration of successfully managing risk. Experience shows that a significant cross section of our industry will be there. Put the date in your diary!

Johan Rasmussen, Acergy
IMCA President 2010