New wreck removal contracts will have quantitative risk assessment com...

New wreck removal contracts will have quantitative risk assessment component

Published: 23 June 2022

Fairness, transparency and cooperation are the main drivers in a collaborative project by the International Salvage Union and the P&I Clubs to work with BIMCO to update industry-standard wreck removal agreements.

The initiative to update the BIMCO wreck agreements comes from a concern from P&I Clubs about the rising cost of wreck removal and a wish to make the process more efficient and manageable. Price alone should not be the determinative factor in tendering for projects – the focus should be on assessing risk and finding an optimal solution together with the right salvage contractor.

Work on revising the BIMCO wreck removal agreements has been ongoing for over a year and a half. The most notable change is the introduction of an optional new risk allocation clause that provides an alternative solution to the existing, but often deleted, Clause 4 (Change of Method of Work and/or Personnel, Craft and Equipment). Formulating this new clause has proved no easy task to find a solution workable, amenable and fair to both the contractor and the client. The P&I clubs and salvors are working closely together to forge a solution that they believe will best meet the needs of the industry in the years to come. The revision work will continue during the summer and it is hoped that a new edition of WRECKSTAGE will be available by the end of this year.

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