Peter C Hunter BWEA Offshore Wind Conference – March 2003

Approaches to Offshore Contracting

Peter C Hunter BWEA Offshore Wind Conference – March 2003

Approaches to Offshore Contracting

The Contractual Triangle

Man

ufac

ture

rs Contractors

Developers

The Contractual Struggle

Man

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ture

rs Contractors

Developers

Negative Contractual Struggle

AgreementMan

ufac

ture

rs Contractors

Developers

Positive Contractual Approach

AgreementMan

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ture

rs Contractors

Developers

The Distorted Contract

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ufac

ture

rs Contractors

Developers

BWEA Offshore Wind Finance Forum

• Identified distortions

Single contract structure

Joint & Several Liability

Geotechnic risks

Lack of risk appreciation

BWEA Offshore Wind Energy

“That seemed like a good idea.

I wonder why it never happened ?“

Our grand-childrens‘ reflections:

Scorched Europe 2003

Offshore Wind - Stalled

MikeLeffel©2001

Now look what a fine mess you‘ve got us into !

EPC / Turnkey Tenders

A Reverse Bid Bond !

Murmurs of discontent

Offshore ContractingThe Way Forward:

• Continued dialogue

• Standard Form of Contract

• Eliminate the Unknown

• “A Road Map to Peace“

• Developer / Financier Confidence

• Measured Risk for Contractors

• Manufacturers Confidence in the Future

Standard Form of Contract

• UK Only or,

• Pan European ?

• All sides of the triangle to be represented

• Speedy progress essential

Offshore Contract Conditions

Standard Form of Contract

Conditions of Particular Application

Offshore Wind - Standard Form of Contract

Let‘s do it together

Let‘s do it today

Tomorrow could be too late !

Peter C Hunter BWEA Offshore Wind Conference – March 2003

Approaches to Offshore Contracting