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Offshore Construction Contracting Principles

Contractor's Marine Spread

Principles

It is recommended that the following principles be applied in relation to Contractor's Vessel Spread under offshore construction contracts:

  • Contractor shall supply Contractor's Marine Spread as defined in the Contract;
  • By signing of the Contract, Company accepts the DLB [or HLV, DSV, SSCV, etc.];
  • Company shall not reject or test the DLB [or HLV, DSV, SSCV, etc.] after the Effective Date of Contract, unless the DLB [or HLV, DSV, SSCV, etc.] has lost the certification as carried on the Effective Date of Contract and such is not corrected by Contractor within a reasonable time;
  • Contractor shall under no circumstances be obliged to provide a replacement derrick lay barge [or heavy lift vessel, diving support vessel, etc. ] or an additional derrick lay barge [or heavy lift vessel, diving support vessel, etc. ];
  • Contractor shall have the right to replace the DLB [or HLV, DSV, SSCV, etc.] subject to prior approval by Company.

Clarifications / Considerations

It would be relatively easy for Company to find one or more reasons to reject Contractor's construction vessel just prior to commencement of the Work, and Company could be tempted to misuse such possibility to avoid liability for its own delays.

Due to the nature, size and cost of Contractor's construction vessel, it would be an unreasonable burden on Contractor to be liable to replace the construction vessel or to provide an additional construction vessel.

To enable Contractor to fulfil its liability under the Contract to provide a construction vessel (like a derrick lay barge, heavy lift vessel, diving support vessel, etc.) Contractor should be entitled to substitute a construction vessel with equivalent capacity.


Example Clause for Contractor's Marine Spread

The following is an example of a proper article to cover Contractor's Vessel Spread.

X. CONTRACTOR'S MARINE SPREAD

  1. Contractor shall be responsible for the provision and maintenance of Contractor's Marine Spread for execution of the Work.
  2. Acceptance of the DLB [or HLV, DSV, SSCV, etc.] is deemed to be confirmed by the signing of the Contract by all Parties. Neither Company, nor the Marine Warranty Surveyor, nor any of Company's consultants or representatives, nor any other (government or non-government) body shall have the right to reject or test the DLB [or HLV, DSV, SSCV, etc.] after the Effective Date of Contract, unless the DLB [or HLV, DSV, SSCV, etc.] has lost the certification as carried on the Effective Date of Contract and such is not corrected by Contractor within a reasonable time.
  3. Irrespective of anything to the contrary contained in the Contract, Contractor shall under no circumstances be obliged to provide a replacement derrick lay barge [or heavy lift vessel, diving support vessel, etc. ] or an additional heavy lift vessel [or heavy lift vessel, diving support vessel, etc. ].
  4. Contractor shall have the right to replace the DLB [or HLV, DSV, SSCV, etc.] with another suitable derrick lay barge [or heavy lift vessel, diving support vessel, etc. ] subject to prior written approval by Company which shall not unreasonably be withheld or delayed.