Image source: IADC
The International Association of Dredging Companies’ (IADC) latest edition of their Terra et Aqua magazine featured a very interesting article named ‘Managing risks: how to select the appropriate dredging contract’.
The contracting environment for dredging and offshore works is diverse. Moreover, increasing financial and/or managerial constraints are requiring contracting parties to change the apportionment of commercial risk, according to the article.
Contractors and suppliers have to adapt to the contractual set-up which is chosen unilaterally by the owner, and they need to reconsider how to manage their risks and procure their service providers.
Turnkey and engineering, procurement, and construction (EPC) type contracts are becoming more common in the industry and bring their own benefits and challenges.
Author: Charles Wilsoncroft (HKA)