Solving the riddle

Lewis McDonald, of Skuld Offshore, discusses the challenges of integrating transport and installation contracts with P&I insurance

When it comes to being integrated with P&I insurance, offshore construction project contracts are probably the most complex. Whether it is a transport and installation (T&I) contract, an engineering, procurement, construction and installation (EPCI) contract, or even accommodation and crew transport contracts, the liability regimes with which the offshore industry are familiar are changed, modified and amended, presenting alternative indemnity arrangements that rarely sit comfortably with standard P&I cover. It is therefore important, before entering into such arrangements, contractors fully understand the liability regimes they are signing up to in the contract and how their insurance covers sit within and react to that matrix.