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Offshore Construction Contracting Principles

Indemnity for Personnel and Property

It is recommended that the following principles be applied in relation to indemnities for personnel and property under offshore construction contracts.

Knock for Knock Indemnity

Each Party shall assume responsibility for the personnel and property within its own Party Group and shall indemnify the other Party accordingly, irrespective of cause or circumstances, and irrespective of any negligence or any misconduct.

Third Party Indemnity

For the purpose of liabilities and indemnities, any personnel or property at the Site such as platforms, pipelines, quaysides, vessels and rigs, but excluding any Contractor Group personnel or property, shall be considered Company Group personnel or property.
A few considerations:
  • As a marine contractor goes from project to project, and will always remain no more than a temporary guest at an operator's offshore Site, the operator is permanently "at home" at the offshore site and therefore should be in a much better position to be aware of any aspects or features related thereto, including but not necessarily limited to any and all personnel and property being present there.

    It should therefore be no more than reasonable for Company to assume responsibility for any and all personnel and property at its offshore site, and to indemnify Contractor accordingly.

    The same goes for the fabrication location / load out Site.

  • Company shall guarantee Contractor free and unencumbered access to the Work;

  • Contractor shall execute the Work in reliance of Company provided information;

Responsibility for "Deductible"

Irrespective of the above, Contractor shall assume liability towards loss, damage or destruction of Company Group property solely caused by Contractor up to a maximum of US$100,000 per event or series of events emanating from the same cause.