The introduction of QRA (Quantitative Risk Analysis) into the contracting process for maritime wreck removal operations has prompted a revision of WRECKSTAGE.
According to BIMCO, QRA is used to assess risk in the operation of an engineering process to inform and guide decisions on the allocation of risk between the contracting parties and the consequent pricing ramifications.
BIMCO has been working with the International Salvage Union (ISU) and the International Group of P&I Clubs on a new edition of WRECKSTAGE for the past two years. That task is now close to completion.
The initiative to revise BIMCO’s three wreck removal agreements, WRECKSTAGE, WRECKHIRE and WRECKFIXED, was first proposed in May 2017. It was prompted by the introduction of QRA into the contracting process for maritime wreck removal operations.
At the heart of the new edition of WRECKSTAGE is a new optional “Risk Allocation Procedure” Clause that sets out the parties’ obligation to agree on the allocation of risk at the beginning of the agreement. A risk allocation matrix is set out in a new Annex V.
All costs related to the risks accepted by the contractor form part of the lump sum with no additional remuneration.
Only in the event of a misdescription or error by the company or a material change in the position or condition of the wreck will the contractor be able to invoke the provisions of the old Clause 4 (Change of Method of Work, Personnel, Craft and Equipment and/or Estimated Time Schedule) for variation costs.
The new WRECKSTAGE will meet the needs of the industry in terms of providing an optional QRA-based mechanism that gives greater certainty in the allocation of risks and the consequences of change under the agreement.
The revision of WRECKHIRE and WRECKFIXED will begin once WRECKSTAGE has been adopted early next year.
