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IMCA publishes Decommissioning Principles in Relation to DISMANTLECON

Published on 1 February 2021

The International Marine Contractors Association (IMCA) has published ‘IMCA’s Decommissioning Principles in Relation to DISMANTLECON’ (IMCA CI 015) in line with the ‘IMCA Decommissioning Contracting Principles’ (IMCA CI007 Rev 2).

This follows a detailed review of the text of DISMANTLECON by a working group established by the IMCA the Legal, Contracts, Insurance and Compliance (LCIC) Committee, who carefully studied both documents to verify that DISMANTLECON meets IMCA’s contracting principles.

IMCA Contact

Margaret Fitzgerald
Head of Marine Policy & Regulatory Affairs
Contact

Margaret Fitzgerald, IMCA’s Head of Marine Policy and Regulatory Affairs explained:

“The acronym ‘FAIR’ lies at the heart of all of IMCA’s 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.

“IMCA was represented in the BIMCO-led Working Group which developed DISMANTLECON, the goal being to preserve IMCA’s Decommissioning Principles in the final document. IMCA was satisfied that, in general, the FAIR Principles are properly addressed in DISMANTLECOM with following exceptions:

  • Section 2.5 – Company provided information;
  • Section 2.12 – Limitation of liabilities; and
  • Section 2.15 – Delay.

She added:

“These clauses require more detailed consideration when using DISMANTLECON. All three Principles are examined in IMCA CI 015 in sections 2.5, 2.12 and 2.15. We urge all contractors involved with a removal contract to address the issues highlighted in relation to these specific clauses.”

“Care will be needed in completing the boxes and attachments to ensure that all the Principles are indeed satisfactorily covered.”

About DISMANTLECON

BIMCO’s objective for developing DISMANTLECON was to create a global, industry standard, scalable contract for offshore structure dismantling work and the subsequent transport to a designated place of delivery.

It is a marine services contract designed to appeal equally to the party requiring removal of the structure and the marine contractors whose services they use. is a standard contract developed by BIMCO for parties entering into a contact for dismantling and removal of offshore facilities. Disposal of what is removed is not covered.