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Salvage & Wreck Asia

     Singapore

   September 2012

     Clive Reed
 C Solutions Limited
Practical use of BIMCO wreck
    removal contracts &
The Interface with
Emergency Salvage
     Services
Who are C Solutions limited
C Solutions Limited
•   Twelve Years old but 200 years of experience
•   Previously Incite Claims Management Limited
•   Formed by Chris Beesley
•   Employees mostly formally Ince & Co
•   Master Mariners
•   Became C Solutions Limited – April 2008
•   London, Newcastle, Monaco, Greece, Dubai, Hong
    Kong, Australia Mumbai, Shanghai and Singapore.
•   Prominent local lawyers “house” C Solutions
C Solutions Limited



What do we do?
• Investigations
• Legal Advice
• Claims Handling
• Out Sourcing
• Salvage and Wreck Removal
HISTORY

• BESPOKE AGREEMENTS

• BIMCO TOWCON and TOWHIRE

• WRECKCON/ WRECKHIRE –EARY
90’S

• WRECKHIRE 99/10

• WRECKFIX 99/10

• WRECKSTAGE 99/10
WRECKSTAGE 99
WRECKSTAGE 99
   ANNEX I
Change of Circumstance
CHANGE OF METHOD OF WORK and/or
     PERSONNEL, CRAFT AND EQUIPMENT
4.     The lumpsum (Fixed price/rates of hire) is based upon the
       Nature of the services, set out in Box 7 and the Personnel,
       Craft and Equipment and Method of Work set out in Annexes I
       and II, as well as the Description, Specifications, Position,
       Condition of the Vessel and the Worksite set out in Boxes 4, 5
       and 6.
       If before or during the operation, and without fault on the part
       of the Contractor, there is a substantial change in the services
       and or in the personnel, Craft and Equipment required to
       undertake the services due to any misdescription by the
       Company or error in the specification provided by the
       Company upon which the Contractor has relied or a material
       change in the position and/or condition of the Vessel or the
       worksite, the contractor shall forthwith give notice in writing
       thereof to the Company and of the estimated additional costs
       to effect the services.
The parties shall, without delay, consult each other to
    reach agreement on the amount of the additional
    costs to be added to the lumpsum. In the event that
    the parties are unable to reach agreement on the
    additional costs within 5 days of the Contractor
    providing details of the extra costs, either party may
    terminate the services. If permission to terminate is
    not given by the competent authorities the Contractor
    shall be paid…………………

Arbitration (by Agreement)/reference to Expert Evaluation

If Services become easier……..
DELAYS

7.   If the Contractor is delayed in performing its obligations
     under this Agreement due to adverse weather or sea
     conditions, in excess of the number of days set out in Box
     16, or due to any other reason outside the control of the
     Contractor, the Contractor shall receive from the Company
     an additional compensation – per working day or pro rata
     – at the rate set out in Box 14, for the time the Contractor
     is delayed in commencing or continuing the services with
     the customary progress. The Company shall be promptly
     advised by the Contractor about all delays, which shall be
     confirmed in writing as soon as possible.
Bad Weather
Deletion Certificate
Government Interference / Permission
Back to Back Contracts
Limitation of Liability
Innovation
The Use of Wreck Removal
Contracts for the provision
  of Emergency Services




     Salvage
Does the industry need a
commercial emergency services
contract to run as an alternative
     to Lloyd’s Open Form?
LOF 2000/2011
•General dislike of LOF
•Perceived view awards too high
•No relation to Commercial cost of
     services
•Increase in number of International
     salvors/Increase supply
•Superior communication
Reasonable Reward

    Investment in Men and Equipment
                   -V-
     Reasonable Cost to Underwriters


Maintain Experienced and Equipped Salvage
                Capability
Financial terms generally easy to agree
Nature of the Services,
      Personnel, Craft and Equipment
               Method of Work
   Description, Specifications, Position,
Condition of the Vessel and the Worksite set
Risk /Reward
•Knock for Knock contracts

•Third party Indemnities

•Criminal Liability
Simple/Agreed Quickly
Bind Cargo, cash flow and funding
C solutions   wreck removal contracts the interface with emergency salvage services singapore sept 2012

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C solutions wreck removal contracts the interface with emergency salvage services singapore sept 2012

  • 1.
  • 2. Salvage & Wreck Asia Singapore September 2012 Clive Reed C Solutions Limited
  • 3. Practical use of BIMCO wreck removal contracts &
  • 4. The Interface with Emergency Salvage Services
  • 5. Who are C Solutions limited
  • 6. C Solutions Limited • Twelve Years old but 200 years of experience • Previously Incite Claims Management Limited • Formed by Chris Beesley • Employees mostly formally Ince & Co • Master Mariners • Became C Solutions Limited – April 2008 • London, Newcastle, Monaco, Greece, Dubai, Hong Kong, Australia Mumbai, Shanghai and Singapore. • Prominent local lawyers “house” C Solutions
  • 7. C Solutions Limited What do we do? • Investigations • Legal Advice • Claims Handling • Out Sourcing • Salvage and Wreck Removal
  • 8. HISTORY • BESPOKE AGREEMENTS • BIMCO TOWCON and TOWHIRE • WRECKCON/ WRECKHIRE –EARY 90’S • WRECKHIRE 99/10 • WRECKFIX 99/10 • WRECKSTAGE 99/10
  • 10.
  • 11. WRECKSTAGE 99 ANNEX I
  • 13. CHANGE OF METHOD OF WORK and/or PERSONNEL, CRAFT AND EQUIPMENT 4. The lumpsum (Fixed price/rates of hire) is based upon the Nature of the services, set out in Box 7 and the Personnel, Craft and Equipment and Method of Work set out in Annexes I and II, as well as the Description, Specifications, Position, Condition of the Vessel and the Worksite set out in Boxes 4, 5 and 6. If before or during the operation, and without fault on the part of the Contractor, there is a substantial change in the services and or in the personnel, Craft and Equipment required to undertake the services due to any misdescription by the Company or error in the specification provided by the Company upon which the Contractor has relied or a material change in the position and/or condition of the Vessel or the worksite, the contractor shall forthwith give notice in writing thereof to the Company and of the estimated additional costs to effect the services.
  • 14. The parties shall, without delay, consult each other to reach agreement on the amount of the additional costs to be added to the lumpsum. In the event that the parties are unable to reach agreement on the additional costs within 5 days of the Contractor providing details of the extra costs, either party may terminate the services. If permission to terminate is not given by the competent authorities the Contractor shall be paid………………… Arbitration (by Agreement)/reference to Expert Evaluation If Services become easier……..
  • 15.
  • 16.
  • 17. DELAYS 7. If the Contractor is delayed in performing its obligations under this Agreement due to adverse weather or sea conditions, in excess of the number of days set out in Box 16, or due to any other reason outside the control of the Contractor, the Contractor shall receive from the Company an additional compensation – per working day or pro rata – at the rate set out in Box 14, for the time the Contractor is delayed in commencing or continuing the services with the customary progress. The Company shall be promptly advised by the Contractor about all delays, which shall be confirmed in writing as soon as possible.
  • 21. Back to Back Contracts
  • 24. The Use of Wreck Removal Contracts for the provision of Emergency Services Salvage
  • 25. Does the industry need a commercial emergency services contract to run as an alternative to Lloyd’s Open Form?
  • 26.
  • 28. •General dislike of LOF •Perceived view awards too high •No relation to Commercial cost of services •Increase in number of International salvors/Increase supply •Superior communication
  • 29. Reasonable Reward Investment in Men and Equipment -V- Reasonable Cost to Underwriters Maintain Experienced and Equipped Salvage Capability
  • 30. Financial terms generally easy to agree
  • 31. Nature of the Services, Personnel, Craft and Equipment Method of Work Description, Specifications, Position, Condition of the Vessel and the Worksite set
  • 33. •Knock for Knock contracts •Third party Indemnities •Criminal Liability
  • 35. Bind Cargo, cash flow and funding