QRA and Risk Based Contracting
- The Casualty Management Team Concept
- QRA & Risk Based Contracting
- xpoSure Software
- Click to read our QRA whitepapers:
- Part 1 - A Salvage Consultant's Perspective
- Part 2 - Considerations for the P&I Clubs
Casualty Management Team
Reed Maritime promotes a Casualty Management Team (CMT) concept for large wreck removal projects. On the
THORCO CLOUD wreck removal the Casualty Management Team instructed by the P&I Club was comprised of
salvage consultants (including Reed Maritime), a risk manager (CL Risk Solutions), the Club’s local Correspondent
(Spica) and a Solicitor (Hill Dickinson). This five person team provided contracting and project management tools,
technical expertise, local knowledge and legal guidance. The difficult and risky wreck removal was successfully
completed in Indonesian waters in the busiest waterway in the world on time and on budget. The CMT concept, along
with the implementation of the xpoSure© software, proved very effective in contract negotiations and project
management through completion of the project. Reed Maritime is happy to discuss the merits of the CMT concept for
your next project.
QRA and Risk Based Contracting
Reed Maritime has been involved in three major projects where the xpoSure© software was used to successfully
negotiate a mutually agreed fixed lump sum contract with the Contractor.
M/V THORCO CLOUD – A two piece wreck removal in the Singapore Straits under Indonesian jurisdiction executed in
three stages under three different contracts.
M/V MAERSK HONAM – The processing and recovery/disposal of 20,000 tons of hazardous waste that resulted from
a fire in holds 1, 2 and 3.
Grand Bahama Shipyard Drydock #2 – The wreck removal of a 20,000 ton floating drydock.
In each instance a modified BIMCO Wreckstage contract excluding Clause 4 (Change of Circumstance) and Clause 7
(Delays) was used as the starting point of the negotiations. Project risks were identified and quantified. The identified
risks included commercial, operational, logistical, technical, environmental, subcontractor interface, meteorological
inclusive hurricanes and political inclusive bribery. The Contractors received a premium for the risks they accepted
and the remaining risks were dealt with in additional clauses added to the contract. These bespoke clauses included
but were not limited to hurricane risks, contractor interface risks, price of scrap risks and safety risks operating within
the narrowest part of the Singapore Straits. They could easily have included a pandemic risk.
Reed Maritime is happy to discuss the merits of risk-based contracting & project management for your next casualty.
Read our QRA whitepaper.