Contract Risk Management In Offshore Wind Construction

Registration And Morning Refreshments

Chair’s Welcome And Opening Remarks

Martin Sandgren, Partner, Ince&Co 

Considering The Impact That Changes In Subsidy Regimes And The Drive To Reduce The Cost Of Energy Is Having On Management Of Risks In Contracts

In this session review recent trends in contract strategy optimisation and O&M phase arrangements as well as assess how this may impact the management of individual contract risks.

Additionally, the impact and consequences of Brexit will also be discussed.  

Nicholas Carlin, Partner, Pinsent Masons LLP

PANEL DISCUSSION 

How Project Finance and Lenders are Shaping Risk Allocation and Contract Strategies 

• Role of project sponsors and impact on contracting strategies: what do they need to see in terms of ability to manage contract interface, structure and contractor selection 
  - Assessing financial capability of both employer and contractor

• What is optimal time to engage lenders in the contracting process? 
  - Impact of bringing lenders in at a late stage

• Exploring impact of contractual set up on conditions precedent

• Impact of increasing trend of direct agreement between banks and contractor

Matthew Taylor,  Partner,  Green Giraffe Energy Bank

Miruna Onofrei,   Director,   Energy & Infrastructure Group, BNP Paribas

Networking Break And Morning Refreshments 

Latest Approaches To Contract Standards

• FIDIC: Renewables Contract Initiative and Yellow Book update-status report

• “The Tail Wagging the Dog”: How wind specific contracts are influencing oil and gas contracts

• Best contract standard for offshore wind: FIDIC? LOGIC? Other?

Martin Sandgren,   Partner,   Ince & Co LLP

Networking Lunch

PANEL DISCUSSION

Getting The Balance Right: View From Contractor And Developer On Risk Allocation And Liability  

• How do employers and contractors define and measure different risks in different market conditions
  - Weather, vessel, contingency?
  - Extent to which standards are used or amended
  - Who carries risk for difference parts of the contract?

• Developer and contractor perspectives on:
  - Risk assessment
  - Evaluation of certain clauses
  - View of risk sharing
  - Reasons why these approaches are taken and steps both sides can take to improve cooperation

• What role can insurance play in improving bankability of projects?

• Impact of caps and limitations of liability

• Trend of contractors accepting higher caps to secure contract – how does this bode for project delivery in 2018 onwards and what steps can be taken to manage risk

• Damage to property and person: knock for knock and consequential loss post Macondo and impact on offshore wind contracts

Merten Pfeiffer, Legal Counsel, E.On SE
Arthur Uijterwijk, Manager Legal Counsel, Van Oord Offshore Wind Project BV
Kirsten Hartmann, Head Of Legal, Adwen Offshore 

Moderator: Melanie Grimmitt, Partner, Pinsent Masons

Networking Break And Afternoon Refreshments 

Exploring The Challenges With WTG Maintenance In-House 

• Required organisational set up and support contracts

• Ensuring performance is reached in absence of contractual guarantees

• Impact on bankability and profitability of project

• Evaluation of potential operational risk

Matthias Henke, Director Of German Operations, SgurrEnergy 

PANEL DISCUSSION

Design And Defect Risks - Fitness for Purpose in light of MTH  -v- E.ON

• The issue/context:
  - General background
  - MTH v E.ON.: Procedural and substantive background
  - Design flaw v. wear and tear
  - Specific standards v. general obligations

• Risk management:
  - How can the risk be limited and mitigated?
  - Structuring and drafting points
  - Risk allocation and insurability
  - Insurance aspects

Martin Sandgren, Partner, Ince & Co
Ralf Skowronnek, Offshore Wind Practice Leader Europe, Marsh
Barbora Bechnak, Renewable Energy Practice Leader, Continental Eastern Europe, Marsh

Chair’s Closing Remarks and End of Day One

End Of Day 1