ABSTRACT
Chapter 11 looks at the allocation of risk in offshore construction contracts and, in particular, the network of contracts and indemnity clauses that will cover the project. After introducing the topic, the chapter discusses the general principles for the interpretation of indemnity clauses under English law. There is no universally adopted wording so the chapter considers the different types of wording that are used and the typical allocation of risk. There is detailed discussion of the varying degrees of culpability, ranging from ‘no fault’, through negligence, gross negligence, wilful misconduct and deliberate breach to fraud, and an examination of whether it is possible to allocate risks in such circumstances and the clarity of wording required to do so. The chapter concludes with the A Turtle case study and a comparison of damages claims with indemnity clauses.
