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Offshore Construction Contracting Principles

Responsibility for the "Deductible"

Principles

It is recommended that the following principles be applied in relation to the responsibility for the deductible under offshore construction contracts.

Irrespective of the knock for knock indemnity, 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.


Clarifications / Considerations

While the US$100,000 per event represents a fair part of Contractor's projected profit, this should be no problem for a Contractor which has confidence in the quality and safety of its operations;

Notes:

This maximum sum is irrespective of any deductibles which Company may be liable for under its insurances (if any) and for which Company shall always remain solely liable. (Some operators elect to self-insure)