Service Sector Contracting Malcolm Mackay, Partner, Litigation, Brodies LLP Eve Brazier, Contracts Specialist, Oil & Gas, Brodies LLP.

Slides:



Advertisements
Similar presentations
A GIA is a contract between a surety company and a contractor (or subcontractor)/principal. A GIA is a standard, typical document in the construction.
Advertisements

THE ROLE OF INSURANCE REQUIREMENTS WITHIN AN ORGANIZATION By Aaron Hardiman, MBA, ARM.
The insurance on a project should be the responsibility of the Project Owner rather than the Contractor.
Presented by: Attorney Laurence W. Getman Historical Overview Two or more persons engaged in unlawful enterprise are jointly and severally liable. No.
© 2012 McNees Wallace & Nurick LLC CONTRACT ESSENTIALS Diane M. Tokarsky Chair, Construction Law 100 Pine Street, PO Box 1166 Harrisburg, PA
1 CONTRACT RISK MANAGEMENT: Strategies and Tactics J. Scott Hommer, III Venable LLP 8010 Towers Crescent Drive, Suite 300 Vienna, Virginia (703)
1. Among the most important advisors to a construction firm are: –Professional surety bond producer –Knowledgeable construction/surety attorney –Construction-oriented.
A LITIGATOR’S ADVICE ON LITIGATION AVOIDANCE Alan N. Greenspan Jackson Walker LLP © 2004 by Alan N. Greenspan. All rights reserved.
The Legal Edge: Solving Today’s Construction Problems Texas Housing Conference July 28-30, 2014 Hilton Hotel Austin, TX.
Pension Fund Trustees Liability Ncedi Mbongwe. Introduction to Camargue Underwriting Managers Established in 2001 Underwriters: Mutual and Federal and.
CARLIN LAW GROUP, APC (619) Know Your Indemnity Obligation Know Your Risk Know Your Insurance Company by KEVIN R. CARLIN, ESQ.
©2008 Perkins Coie LLP Game Industry Roundtable Privacy Developments for the Game Industry Thomas C. Bell September 24, 2008.
Presented by BUSINESS INSURANCE FOR CONTRACTOR CANDIDATES EXPERTS IN FREELANCER & CONTRACTOR INSURANCE Tania Bowers.
Contract Drafting Class 20 Thurs. Mar. 29 University of Houston Law Center D. C. Toedt III.
Contractual Liability For Schools… Making Smart Choices and Finding the Negotiator Within Presented by Jessica K. Walls, Esq. Isaac, Brant, Ledman & Teetor.
Presented by: David S. Bland LeBlanc Bland, P.L.L.C St. James Pl., Suite 360 Houston, Texas (713) MANAGING RISKS THROUGH CONTRACTUAL.
Soft Law Guidelines, Recommendations and Standards: The Issue of Armed Guards on Board Vessels VIII European Colloquium on Maritime Law Research – Common.
Design Lease Contracting for Services IT/Security Medical IGA Special Events Providing Services.
“In the vast area of legal jurisprudence, there are undoubtedly many instances where being the first, or only, jurisdiction to grant rights to persons.
Chapter 18 Defective Products. What are Express and Implied Warranties? Warranty -A statement about the product’s qualities or performance that the seller.
Liabilities and Risk Sharing RA Dirk Hoffmann MBA all rights reserved Best practices – a European perspective Dirk Hoffmann, MBA, Lawyer (Germany)
1 Keys for Chapter 5 Keys for Chapter 5 1. Do you think the insurance company should pay the claim to the insured? Why? Yes, the insurance company should.
Proudly supported by: Procurement Challenges “Perspectives on Insurance” Simon Gray State Manager NSW/ACT Planned Cover.
The Islamic University of Gaza Engineering Faculty
9-1 General Requirements - Enforceable Contract 1.Offer and acceptance 2.Consideration 3.Legal object 4.Competent parties 5.Legal form.
Chapter 9 Fundamental Legal Principles.
ENVIRONMENTAL LIABILITY IN GREECE THE LEGAL FRAMEWORK & THE ROLE OF FINANCIAL GUARANTEES/ INSURANCE PRODUCTS TO COVER OPERATORS’ RESPONSIBILITIES UNDER.
Insurances. Insurance Insurance, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the.
Insurance provisions under JCT 1998 and JCT Standard Building Contract 2005 Brian Lewis – QBE CAR.
Chapter 9 Fundamental Legal Principles
© 2002 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle, NJ Instructor’s Manual with Transparency Masters to accompany Introduction.
Legal Principles of Insurance Chapter 9. Agenda Recall topics learned in your insurance or business law class to better understand this chapter Principle.
The information contained in this presentation is intended for illustration purposes only and does not provide coverage, actual policy terms and conditions.
 The Community authorities follow the attribution of jurisdiction in Article 81 of the TFEU (formerly Article 65 TA): Rome I, Rome II and Rome III Regulations.
Insurance Law PA E TR HC 27 “If anything can go wrong, it will.” Anonymous (1950s), known as Murphy’s Law.
Construction Contracts What You Need to Know March 19, 2015.
Middleware Promises Warranties that Don’t Indemnities that Won’t Stephen Rubin, Esquire
Local Government Forum, 15 September 2010 Tender Negotiations, Indemnity and Exclusion of Liability Kathryn Walker Senior Associate (08)
Indemnification Agreements for the Staffing Industry Recognizing potential pitfalls in service agreements.
Consumer Protection Law. Uniform Commercial Code The UCC is a large set of business statutes which simplified, clarified, and modernized many laws relating.
. Introduction  This class is not designed to discuss and apply contract clauses that impact insurance contracts.
Contract Bond Forms What to Look For and What Might be Missing Presented by Steve Nelson EVP & General Counsel SureTec Insurance Company 1.
Joint Liability and Indemnity Several people or companies may contribute to one loss. Each party will pay damages in proportion to the amount of their.
 1. Primary Purpose [infinitely varied, but usually the provision of goods and or services in return for money  2. Secondary Purpose: regulate distribution.
27-1 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
When Common Law Isn’t So Common Drafting Enforceable Agreements in Other Jurisdictions Speakers: Sara A. Biro, Former Senior European Counsel, Fitch Ratings.
Key Legal Considerations for Agencies Wake Forest Business School Charlotte Campus June 12, 2013.
JEFFREY L. HUNTER SR RISK ANALYST County of Riverside Human Resource Dept. Risk Management Div. Insurance Requirements In Contracts.
HOW TO PROTECT YOUR INTEREST IN A SALE CONTRACT Focus on what you “get” when you sign!
Contract Review: Practices and Pitfalls Cynthia A. Haines, Esquire Post & Schell, PC LeadingAge PA Annual Conference June 16, 2016.
LEGAL AGREEMENTS AROUND THE WORLD. International legal systems and liability Property and contracts Resolving legal differences Legal Agreements Around.
Copyright © 2017 Pearson Education, Inc. All rights reserved. Chapter 9 Fundamental Legal Principles.
Chapter 5 Contract Law. Chapter Objectives After reading this chapter, you will know the following: The elements of a valid contract Common provisions.
INDEMNITY The University of Texas System Office of General Counsel Dana Hollingsworth, Attorney.
Contracts A contract is an agreement between two or more parties which creates an obligation to do or not to do a particular thing. The document containing.
What Small and Emerging Contractors Need to Know Understanding Selected Key Provisions of Construction Contracts © Copyright 2017 NASBP.
Indemnification 101 February 24, 2017
The Value of a Knowledgeable Construction/Surety Attorney
Chapter 9 Fundamental Legal Principles.
Indemnities in commercial contracts: your questions answered
Fundamental Legal Principles
Things to look for in owner contracts
DEALINGS WITH CONTRACTS AND INDEMNIFICATIONS
THE MANY POLICIES INVOLVED IN A CONSTRUCTION PROJECT
American Bar Association
Find the Problems with the Provisions May 11, 2016 Presented By:
How good are your T’s and C’s? A talk for SPATA members 3 October 2018
Contractual Indemnity 101
Understanding & Mitigating Risks in Contracts
Presentation transcript:

Service Sector Contracting Malcolm Mackay, Partner, Litigation, Brodies LLP Eve Brazier, Contracts Specialist, Oil & Gas, Brodies LLP

Service Sector Contracting Agenda  Introduction to “supply chain contracts”  Model contracts  Allocation of risk  Insuring the risk  Dispute resolution

What is the oil and gas supply chain? Meeting clients needs and relying on your subcontractors

Chain or matrix?

Model Contracts  Introduced in the 1990s by CRINE (Cost Reduction in New Era) now under the auspices of LOGIC (Leading Oil and Gas Industry Competitiveness)  Objective: reducing costs by 30% and helping to simplify the industry’s procedures  Suite of Model Contracts available for use throughout the oil and gas industry  Broad range of operations in the UKCS and are widely used across the contracting community

Allocation of risk  Exclusion of liability for death or personal injury resulting from negligence is unlawful  Parties allocate the risk such that the party best placed to insure the risk bears the risk  ‘Knock-for-knock’ indemnity regime commonplace: each party indemnifies the other party’s group in the event of a claim  Third Parties  Pollution Risk  Catastrophic Loss  Consequential Loss  IMHH (Industry Mutual Hold Harmless)

Limitation/Exclusion of Liability  Common for contracting community to seek to limit their liability for the risks they do agree to bear  Indemnities are usually carved out  Exclusion of terms as to quality etc implied by statute with warranties as to fitness and quality expressed in the contract  Contracts provide for liquidated damages as sole and exclusive remedy

Cancellation/Termination  Company right to terminate for convenience  Company right to terminate for default by Contractor  Contractor generally has no right of termination

Insuring the risk  Generally the contractor is obliged to provide insurance.  Aim: to ensure that the contractor has adequate means to stand behind his indemnity obligations.  Common to expressly provide that the insurance amounts set out in a contract in no way limit the liability of the contractor.  Usually language requesting that the company is included on the contractor’s insurance policies as an additional insured (except for Employer’s Liability insurance) and that the underwriters will waive their right to subrogate which means waive their right of recovery against the party that actually caused the loss or damage which would undermine the indemnity regime.

Governing Law/Dispute Resolution English contract law Predictability of outcome and legal certainty Fairness Freedom of contract Well-founded principles Requirement for exact performance Choice of law rules: choice of law rules are generally excluded in an attempt to prevent a court applying a different governing law Exclusive jurisdiction: ensure that the authority to adjudicate on a dispute is limited to the English courts Generally parties expressly agree to litigate instead of use arbitration to resolve a dispute that has not been resolved by negotiation between the parties.

Contact Malcolm Mackay, Partner, Litigation, Brodies LLP Eve Brazier, Contracts Specialist, Oil & Gas, Brodies LLP