LCIC Archives

New standard contract for offshore wind projects ensures a fairer distribution of risk

IMCA has published the industry’s first standard contract for transport and installation (T&I) works in offshore wind projects. The contract has been written to ensure a fairer allocation of risk. Building on the release of our Contracting Principles in January 2023, its publication comes on the heels of an IMCA-led campaign for an industry-wide discussion on sustainable contracting in offshore wind. The campaign was highlighted by the UK’s Offshore Wind Champion Tim Pick in his report to UK Government in March 2023 which noted that IMCA’s Contracting Principles, “is a helpful piece of thought-leadership.” In recent months, several high-profile projects

Exploring alternative contracting models

We preview the upcoming IMCA Regional Meeting in North America on 2 November 2023. Book your place now. IMCA’s hybrid regional meeting brings together leading voices in the offshore oil and gas and wind industry to discuss how we can overcome the performance challenges we collectively face in North America, and how alternative contracting models can help us collectively meet the huge expectations placed on our sectors. Challenging productivity, an adversarial and competitive working environment, and limited take-up of technology and innovation have impacted across the supply chain. Organising contracts around common goals with a focus on collaboration, cooperation, and

Navigating Offshore Wind Contracts

Join IMCA for a half day seminar on Wednesday 6 December exploring the solutions to current contracting challenges for offshore wind in London. It follows the publication of IMCA’s Contracting Principles for Offshore Wind and our industry-wide campaign for sustainable contracts. Whether you work in contract negotiation, insurance, legal, finance, or manage commercial aspects of offshore wind project delivery, attendance will be vital. Curated by our Legal, Contracts, Compliance and Insurance Committee (LCIC), our Seminar aims to bring the supply chain together at the historic Royal Horseguards Hotel, the former Liberal Club in Whitehall. Founded by former Prime Minister William

“The longer you negotiate a contract, the less time you spend driving value…”

The inappropriate allocation of risk, need for new standardised contracts, and how increased collaboration can reduce waste and improve delivery, were key debating points from an IMCA hosted industry panel at Global Offshore Wind 2023 in London on 16 June 2023 which featured speakers from bp, GE Renewable Energy, and DEME Offshore. Held at the largest dedicated offshore wind event in the UK, the panel discussed the current opportunities and challenges facing offshore wind and how the introduction of sustainable contracting could alleviate pressure across the supply chain and unlock the investment required for the industry to meet government expectations

Reuters Offshore & Floating Wind Europe 2023

IMCA’s Iain Grainger will be speaking at Europe’s most senior meeting for offshore and floating wind developers, Reuters’ Offshore & Floating Wind Europe 2023. Europe’s offshore and floating wind sector is experiencing unstoppable growth. Industry giants are scaling up to deliver more projects at multi-gigawatt levels and capitalize on the multibillion-dollar market opportunity. To achieve Europe’s 150GW target by 2030, we need to roll out an incredible 50GW of projects within the next two years. However, supply chain bottlenecks, aging infrastructure, and bureaucracy are all threats to industry growth and investor confidence. With $ billions in contracts ready to be

IMCA panel explores sustainable contracts at Global Offshore Wind

IMCA is hosting a panel on sustainable contracting at Global Offshore Wind in London with guests from BP, GE Renewable Energy, and DEME Offshore, on Thursday 15 June at 1.15pm. The panel discussion, which will be compered by IMCA CEO Iain Grainger, will take place on day two of the UK’s largest dedicated offshore wind event. Joining him on stage will be Hugo Bouvy (Deme Offshore), Richard Haydock (BP), and Richard Huxley (GE Renewable Energy). Together the panel will discuss how the offshore and energy sectors can come together to collaboratively address the risk and cost challenges that offshore wind is facing around

IMCA thought leadership recognised by UK Government

IMCA’s campaign on sustainable contracting in offshore wind has been recognised by the UK’s first Offshore Wind Champion, and previous co-chair of the Offshore Wind Acceleration Taskforce (May 22 to March 23), Tim Pick. Tim Pick was commissioned by the UK Government to explore the challenges for offshore wind and published his independent report, Seizing Our Opportunities, at the beginning of April. It highlighted that contracting terms in oil and gas are generally more commercially balanced than in offshore wind, noting that: “IMCA’s Renewables Contracting Principles is a helpful piece of thought leadership on this topic.” One of the recommendations

Contracting Principles for Offshore Wind at IPF 2023

Our campaign for sustainable contracting principles around offshore wind installation is heading to IPF 2023 in Baltimore, USA with IMCA taking part in an industry panel discussion on the topic of allocation of risk in offshore wind contracting. IPF 2023 is the 10th anniversary of the International Offshore Wind Partnering Forum, organised by the Business Network for Offshore Wind. The event, which is the premier offshore wind energy conference in the Americas, welcomes more than 4,000 delegates across three days with global leaders and businesses in the supply chain discussing the latest technical and policy developments in this space. Iain

Campaign for sustainable offshore wind continues

IMCA’s campaign for fairer contracting principles continues with CEO Allen Leatt recently interviewed in leading industry publication, Energy Voice recently. Speaking to editor Allister Thomas, Leatt reiterated the main point that the supply-side of offshore wind is currently unprofitable, putting at risk global ambitions for the sector. He said: “The allocation of risk is one-sided from developers and their bankers to the supply chain, which is not the case in the oil and gas industry which understands the dynamics of offshore construction and marine environment. As a consequence of this risk allocation, the supply side is largely loss-making, with an

IMCA calls for Offshore Wind Competitiveness Programme

A week after launching the International Marine Contractors Association’s (IMCA’s) newly updated Renewables Contracting Principles (IMCA LCIC 014) with the call for industry collaboration essential to address supply chain losses, IMCA’s CEO, Allen Leatt spoke on 7 February at the Offshore Wind Journal Conference in London with one of his recommendations being the formation of LOWIC: Leading Offshore Wind Industry Competitiveness programme, saying: “IMCA is keen to contribute to this with others”. In a hard-hitting presentation ‘Wind Targets at Risk’, he looked at offshore wind CAPEX, the difficult economic situation being faced by OEMs and contractors and the fact that

Global offshore wind energy targets at risk

The International Marine Contractors Association (IMCA) has published an update to its contracting principles in the marine renewable energy industry. This major piece of work has been essential due to progressively poor market conditions created by unrealistic expectations of the capital costs and risks of developing offshore wind energy. The new publication IMCA Renewables Contracting Principles (IMCA LCIC 014) reviews in detail the contractual challenges faced by industry. IMCA’s CEO Allen Leatt explained the challenges: “Marine contracting in offshore renewables has become increasingly unsustainable, which in turn places the long-term sustainability of the offshore wind energy industry at risk. This

Contracting Principles address sustainability of offshore wind

I am pleased to report that our Legal, Contracts, Insurance, and Compliance Committee (LCIC) has recently completed a major piece of work in updating our Renewables Contracting Principles (LCIC 014 Rev 3); and has developed a companion Guidance Document (LCIC 14A) for members highlighting key issues which they need to consider when contracting in the renewables sector. This work has been essential due to market conditions created by the unrealistic expectations of the capital costs and risks of developing offshore wind energy. Greater flexibility and fairness are needed in contracts by allocating the risk to the party who created it,

Tag: LCIC