Offshore Construction Law and Practice
Page 443
Index
Index
- Acceleration 19.24–25
 - 
            Acceptance and delivery 
            10.6–12
- EPC project 10.4
 - illustrations of defects 10.59–73
 - immaterial defects 10.47–52
 - minor or insubstantial defects 10.26–36
 - multiple defects 10.37–46
 - offshore construction contract 10.3
 - place and time 10.122
 - place of
 - sea trials programme 10.17–25
 - technical acceptance 10.15–16
 - termination following rejection 10.53–58
 - test procedures 10.74–78
 - tests 10.13
 
 - Acceptance certificates 10.88
 - Acceptance period 10.86–87
 - Actual costs approach B.58
 - AFE procedure 5.141–142
 - Affirmation 13.47–56
 - Ambiguous wording 4.25–34
 - Anchor Handling Towing Supply vessels (AHTS) 1.12, A.1
 - Anticipatory repudiatory breach 13.14–18
 - Applicable law 1.30
 - Approved for construction (AFC) drawings B.26
 - Arbitration 6.39, 8.113, 11.48, 13.41, 13.79
 - Area of mutual interest agreement (AMIA) 5.114
 - 
            Audit
            
- of substantial cost overruns 6.96
 
 - Authorisation of changes 6.72–73
 
- Best efforts 8.48, 8.50
 - Best endeavours 2.61, 8.48, 8.50, 11.79, 11.81
 - Bidding process
 - Binding contract 2.12–18
 - Board approval 2.27
 - Business interruption 14.28–29
 
- Cancellation 2.76
 - Carry over agreements
 - Cashflow 2.127–128
 - Certification approval 3.93–101
 - 
            
Changes to the workPage 444
 - Claims
 - Collateral contracts 2.103–104
 - Collateral warranties 5.72–73
 - Compensation
 - Complete documents 2.102
 - Comprehensive clauses 6.43–52
 - Computer simulations 8.90
 - Concurrent delay 8.75–78
 - Confidential information 9.7
 - Conflict of laws 2.11
 - Consequential costs 2.75
 - 
            Consequential losses 
            12.32, 12.58
            
- see also Risk allocation
 
 - Constructability/suitability 3.69–75
 - 
            Construction all risks (CAR) policy 12.75 
            
- see also WELCAR form
 
 - 
            Construction contracts 
            1.34–39
- comparison table 1.39
 
 - Construction support vessels 1.13
 - Contingencies 15.45, 15.46, 19.21
 - Contract award 2.52
 - Contract documents 2.80–83
 - Contractor delay 8.53–61
 - Contractor’s default 1.24–25
 - Contractor’s liability 12.103–107
 - Contractor’s performance 7.6
 - Contracts
 - 
            Contractual definitions 
            5.38–41
- problems with 5.45
 
 - Contractual description 4.4–9
 - Contra proferentem 11.15–18
 - Control mechanisms 2.139
 - Conventional guarantees
 - Conversion contracts 1.31
 - Conversions 3.78–79
 - Cooperation principle 8.117
 - 
            Copyright 
            9.9
            
- see also Intellectual property rights
 
 - Corporate guarantees 16.43
 - Cost oil 5.112
 - Costs of delay
 - 
            
Culpability, degrees of 11.33–42Page 445
 - Cumulative effects 6.63–66
 
- Damages see Liquidated damages
 - Defects
 - 
            Delay
            
- caused by the company 8.92–93
 - consequences of 8.6–7
 - contract terminology 8.2–5
 - costs of delay 8.52, 8.62–8.73
 - due diligence and liquidated damages 8.47–50
 - due diligence obligations 8.45–46
 - liquidated damages and termination 8.38–41
 - liquidated damages for 8.11–14
 - no occurrence of loss 8.27–31
 - penalty clauses 8.15–26
 - target delivery date 8.8–10
 - termination date 8.41–44
 - time 8.51
 - unlimited liquidated damages 8.32–37
 
 - 
            Delivery 
            10.6–12
- acceptance and 10.6
 - buyer on 10.6
 - company accepts 10.13
 - company refuses 10.21
 - EPC project 10.4
 - illustrations of defects 10.59–73
 - immaterial defects 10.47–52
 - minor or insubstantial defects 10.26–36
 - multiple defects 10.37–46
 - offshore construction contract 10.3
 - place and time 10.122
 - place of
 - process of contractual delivery 10.8
 - sea trials programme 10.17–25
 - technical acceptance 10.15–16
 - termination following rejection 10.53–58
 - test procedures 10.74–78
 - tests 10.13
 - of work 10.3
 - see also Acceptance and delivery
 
 - Design property, ownership of 2.77
 - Design responsibility 1.21, 2.38–51
 - Design rights 9.8
 - Design risk
 - Design verification 3.62
 - Direct relationships 5.70–80
 - Disclosure 20.26–28
 - 
            
Dispute resolution procedures 20.12–25Page 446
 - Disputes over rework 7.37–40
 - Disruption claims 8.52
 - Doctrine of equivalents 9.22
 - Drawings, revision of 2.92
 - Drilling vessels A.19–31
 - Due diligence
 - Duty of mitigation 15.54–60
 
- Ejusdem generis principle 15.9
 - Emergency Response and Rescue Vessels (ERRV) 1.12, A.1
 - Endorsement period 3.62
 - Energy exploration and development 14.24–27
 - Entire agreement clauses 2.105–106
 - EPC contract terms 1.40–47
 - EPCI contract terms 1.40–47
 - 
            EPC project
            
- acceptance and delivery 10.4
 
 - EPIC contract terms 1.40–47
 - Exclusive nominees 5.55–56
 - Expert determination 20.20–21
 - Expert evidence 8.86–91
 - Exploration and production (E&P) 5.90
 
- Fabrication 1.22
 - FEED (front end engineering design) 3.2
 - Final investment decision (FID) 2.40, 2.41
 - Financial guarantees
 - Financing
 - 
            Fitness for purpose 
            3.72, 3.76
            
- design 3.1
 
 - Floating liquefied natural gas (FLNG) 1.40, A.84–86, A.88
 - Floating production, storage and offloading (FPSO) 1.9, 1.16, 1.18, 1.40, 5.7, 6.44, 6.50, 9.90, 10.71–72, 10.127, 10.128, 12.30, A.53
 - Floating Storage, Regasification and Power units (FSRP) 1.19, A.90–92
 - Floating storage and regasification unit (FSRU) 1.40, A.79–83, A.90–92
 - Force majeure
 - Fraud 11.71
 - Freight demurrage and defence (FD&D) 14.50
 - Freight prepaid 13.17
 - Functional specification 3.71, 3.73, 3.91, 3.92
 - Fundamental design defects 18.39–42
 
- Global claims 8.79–85
 - Good faith
 - Gross negligence 11.43–48, 11.48, 12.92, 12.95, 12.98
 - Guarantees, financial
 
- 
            
Health, safety and environment (HSE) 5.109–111Page 447
 - Heavy lift barges 1.13
 - Hold harmless 12.100–101
 - Hull and machinery insurance 14.33–35
 
- IMCA Construction Contract 11.38, 18.2, 18.8, 18.28
 - Implied duty of care 3.42–46
 - Implied terms 8.47, 13.35, 14.121, 18.14
 - Inchmaree clause 14.100, 14.101, 14.104
 - Incorporation
 - 
            Indemnities
            
- against claims 12.102
 - clauses 11.11–14
 - contra proferentem 11.15–18
 - defend and hold harmless 12.100–101
 - degrees of culpability 11.33–42
 - deliberate breach/deliberate default 11.64–70
 - fraud 11.71
 - gross negligence 11.43–48
 - liabilities and expenses 12.102
 - and limitation clauses 12.83–84
 - for liquidated damages for delay 19.23
 - losses 12.102
 - purpose of contract 11.19–20
 - rejection of literalism 11.25–32
 - repudiatory breach of contract 11.87–88
 - in respect of each party’s group 12.85–90
 - wilful misconduct 11.49–63
 - see also Liability clauses
 
 - Indemnity clauses 11.11–14
 - Independent acts 5.81–84
 - Indirect loss 12.58
 - Injunctions 13.74
 - Installation 19.19–20
 - Insurance
 - 
            Intellectual property rights
            
- allocation of 9.58–60
 - changes to original design 9.21–24
 - clearing the way 9.61–62
 - commissioning 9.19–20
 - confidential information 9.7
 - copyright 9.9
 - designs 9.8
 - enforcement and jurisdictional differences 9.72–76
 - intellectual property warranty 9.25–30
 - law of vessel’s flag state 9.18
 - licensing 9.63–71
 - modifications to existing works 9.77–80
 - new works to an existing design 9.81
 - no infringement due to patent 9.31
 - ownership of 9.38–43
 - patents 9.6
 - previous use of design 9.32
 - protection of 9.44–53
 - third party 9.54–57
 - trade marks 9.10
 - worldwide patent 9.16–17
 
 - Intellectual property warranty 9.25–30
 - Interim injunctions 13.74
 - International standards 2.72, 3.72
 - Interpretation of contracts 4.13
 
- Jackups
 - Joint operating agreement (JOA) 5.100
 - Joint study and bid agreement (JSBA) 5.114
 - Joint venture 5.87, 5.98, 5.113–150
 
- Leasing 2.136–138
 - Legal proceedings 20.4–11
 - Letters of intent 2.53
 - Lex situs 13.69
 - 
            Liability clauses
            
- contra proferentem 11.15–18
 - degrees of culpability 11.33–42
 - deliberate breach/deliberate default 11.64–70
 - fraud 11.71
 - gross negligence 11.43–48
 - 
                  
indemnity clauses 11.11–14Page 448
 - for liquidated damages for delay 19.23
 - purpose of contract 11.19–20
 - rejection of literalism 11.25–32
 - repudiatory breach of contract 11.87–88
 - wilful misconduct 11.49–63
 
 - Licensing regimes 5.91–96
 - Lien 19.12, 19.13
 - Limitation of Liability for Maritime Claims (LLMC) 12.108–117
 - Limitation periods 14.94
 - Liquidated damages 5.47
 - LNG regasification units 1.17, A.79–92
 - Local content 5.106–108
 - LOGIC (Leading Oil and Gas Industry Competitiveness) 11.18, 11.37, 11.39, 12.3, 12.24
 - Loss adjusters 14.119–120
 - Loss of profit 12.58
 
- Measured Mile B.59
 - Mediation 20.22–23
 - Misrepresentation 3.28–32, 5.75–77
 - Mitigation
 - Mobile production units (MOPU) A.50–78
 - Multiple defects 10.37–46
 - Multiple variations 6.52–71, 6.53–54
 
- Negative change orders 6.104–113
 - Negligence
 - Negotiations 2.71
 - Nominated subcontractors
 - Non-conformity 7.7
 - Non-disclosure 3.33–37
 - Notice provisions 15.17
 
- Offshore support vessels (OSV) 1.12, 10.74, A.1–5
 - Omissions, contract price for 6.109
 - On demand guarantees
 - On demand performance guarantees
 - Operating committee (OpCom) 5.132
 - Operator appointment 5.122
 - Operator exclusion 5.130–131
 - Operator-led structure, JOAs 5.120
 - Operator liability 5.129
 - Operator rights and responsibilities 5.124–128
 - Outstanding work 17.13–15
 
- Paget’s presumption 16.34
 - Patent/latent errors 3.67–68
 - Patents 9.6
 - Penalty clauses 8.15–26
 - Performance bonds 2.8, 13.89, 16.20, 16.37–40
 - Performance tests by contractor
 - Perform rework 7.29–36
 - 
            Petroleum rights contracts
            
- cost oil 5.112
 - health, safety and environment (HSE) 5.109–111
 - joint venture structures 5.113–114
 - liability 5.100
 - local content and social welfare 5.106–108
 - management 5.104
 - 
                  
minimum work obligations 5.102Page 449
 - parties 5.98
 - profit oil 5.112
 - relinquishment 5.103
 - state participation 5.99
 - term 5.101
 - work programme and budgets (WPB) 5.105
 
 - Pipelaying vessels 1.13
 - Pipelay systems A.13–14
 - Piping systems 3.2
 - Piracy 14.36
 - Platform supply vessels 1.12, A.1
 - 
            Policy wordings 
            14.22–23
- business interruption 14.28–29
 - construction all risks 14.32
 - contingent business interruption 14.30–31
 - delay in start-up insurance 14.39–41
 - energy exploration and development 14.24–27
 - freight demurrage and defence (FD&D) 14.50
 - hull and machinery insurance 14.33–35
 - kidnap and ransom 14.51
 - loss of hire insurance 14.38
 - loss of production income 14.28–29
 - operators’ extra expense 14.24–27
 - protection and indemnity (P&I) insurance 14.42–49
 - strike insurance 14.37
 - war risks insurance 14.36
 
 - Pollution 12.19–30
 - Post-delivery defects 18.25–27
 - Post-delivery guarantee obligations 17.11–12
 - Pre-contract bid clarification 2.80
 - Pre-FEED/concept design 3.2
 - Production contracts 5.85–89
 - Production sharing contract (PSC) 5.96
 - Profit oil 5.112
 - Project controls
 - Protection and indemnity (P&I) insurance 14.42–49
 
- Reasonable endeavours 8.10, 10.112, 15.31, 15.54, 15.55, 15.57
 - Rectification 2.108–116
 - Refund guarantees 2.34–37
 - Regulatory and certification approval
 - 
            Rejection
            
- termination following 10.53–58
 
 - Relevant policy wordings 14.22–51
 - Relinquishment 5.103
 - Remotely operated vehicle (ROV) operations 12.79
 - 
            Repairs undertaken by company 
            18.28–32
- see also Defects
 
 - Repudiation 13.14
 - Rescission 13.7–9
 - Retrospective effect 2.78
 - Risk allocation
 
- Saturation diving systems A.15–18
 - Sea trials programme 10.17–25
 - Security 2.129–135
 - Semi-submersibles 1.15, 3.4, 10.124, 41–49
 - Service contract regime 5.94–95
 - 
            Shipbuilding contracts 
            1.32–33
- vs. construction contract 1.33–39
 
 - Side letters 2.107
 - Simple negligence 11.43
 - Standard form 1.28–29
 - Standby vessels 1.12, 1
 - Starting position, subcontracting 5.9–10
 - 
            Step-in rights 
            5.48
            
- see also Terminology
 
 - Strike insurance 14.37
 - Subcontracting
 - 
            Subcontractor 
            15.25–30
- see also Nominated subcontractors
 
 - Subrogation 14.124–131
 - 
            Subsea support vessels 
            1.13, A.6–A.12
            
- construction and 1.13
 
 - System integration tests (SITs) 10.97
 
- Target delivery date 8.8–10
 - Technical acceptance 10.10
 - Technical documentation
 - Technical requirements (TR) 3.72
 - Tendering and negotiating contracts
 - 
            Terminology 
            1.7–10
- affirmation 13.47–56
 - anticipatory repudiatory breach 13.14–18
 - cancellation and similar terms 13.7–13
 - clear and unequivocal evidence 13.19–25
 - by contractor 13.93–97
 - damages for repudiation 13.43–46
 - impossibility 13.26–39
 - qualified termination 13.40–42
 - repudiation and similar terms 13.14
 - taking possession of the work 13.57–61
 
 - TOWCON form 11.76
 - Transportation and installation
 - True documents 2.102
 - Turret mooring system (TMS) 9.84
 
- Variable deck load (VDL) 10.63
 - Variation clause
 - Variations, changes to the work
 - Verification of company-produced documents 3.62
 - Verification period 3.62
 - Vessels
 
- 
            
Warranties 14.18–21Page 451
 - Warranty claims
 - Warranty surveyors 14.79–83
 - War risks 12.76, 14.36
 - 
            WELCAR form 
            14.3, 14.32, 14.52–136
- activities 14.77–78
 - claims
 - coverage 14.84–88
 - damages for late payment 14.121–123
 - design and defective parts 14.95–118
 - insureds 14.55–61
 - interests 14.63–66
 - law and jurisdiction 14.132–136
 - loss adjusters 14.119–120
 - maintenance coverage 14.74–76
 - period 14.70–73
 - QA/QC systems 14.67–69
 - rights exercisable through 14.62
 - subrogation 14.124–131
 - warranties and warranty surveyors 14.79–83
 
 - Well intervention vessels 1.13
 - Wilful misconduct 11.49–63
 - Wind 3.71, 3.72, 14.90, A.93–98
 - Wind turbine construction vessels (WTIV) A.93–98
 - Witness evidence 20.31–32
 - Work modification 3.99–101
 - Work programme and budgets (WPB) 5.105
 - Wreck removal 12.72–74