The International Marine Contractors Association (IMCA) has introduced a pioneering standard contract for transport and installation (T&I) operations in offshore wind projects, marking a significant development in ensuring a more balanced distribution of risk within the industry.
This groundbreaking contract, the first of its kind, is designed to address the complexities of offshore wind projects and foster a fairer allocation of risk across the supply chain. Developed in accordance with IMCA's Contracting Principles study released in January 2023, the publication aligns with IMCA's ongoing campaign for sustainable contracting practices in offshore wind, endorsed by UK's Offshore Wind Champion, Tim Pick, in his March 2023 report to London.
Recent setbacks in high-profile projects in the UK and the USA have underscored the importance of a fair risk distribution to enhance the sustainability of the offshore wind sector. IMCA's standard T&I contract adheres to the ‘FAIR' contracting principles, as outlined by IMCA's Legal, Contracts, Insurance & Compliance (LCIC) Committee. These principles emphasize fairness, appropriateness, insurance coverage, and reasonability in risk allocation, aiming to avoid disputes and streamline project execution.
IMCA Chief Executive Iain Grainger highlighted the potential impact on global Net Zero targets if offshore wind projects face continued delays and cancellations. Grainger emphasized the concerns among members regarding market conditions and the need to navigate inappropriate contracts, requiring extensive and costly renegotiations.
The standardized T&I contract, crafted through extensive industry engagement, represents a positive step toward creating a fairer and more sustainable approach in offshore wind. IMCA plans to engage with developers and trade bodies to encourage industry-wide adoption, with a focus on promoting the contract at the “Navigating Offshore Wind Contracts” industry seminar scheduled for December 6 in London.
Nathalie Louys, Chair of IMCA's Legal, Contracts, Insurance and Compliance Committee, and General Counsel at Subsea7, emphasized the contract's limited scope, acknowledging the evolving landscape of offshore wind construction. Louys expressed the intent for the document to set a collaborative tone within the industry, facilitating productive advancement as the sector strives to meet global ambitions for offshore wind.
