Knock-for-knock liability in the offshore wind farm sector: why is it important and what issues do you need to be aware of?

By Chris Kidd

Conducting construction, operations and maintenance offshore poses a large number of challenges for developers, operators and contractors. Typically, there are many parties involved, very large sums of money at stake and constantly evolving and therefore potentially dangerous work environments to contend with. As a result, the allocation of risk between the parties is a fundamental issue for consideration at the outset of contract negotiations. In the offshore oil and gas sector, the ‘knock-for-knock’ regime has been tried and tested for decades. In the burgeoning offshore wind farm sector, although many parties are keen to contract on a knock-for-knock basis, there has been and remains resistance from some.

This article explores the history and development of the knock-for-knock regime, highlights the key advantages of it and looks at some important issues that parties should be aware of when drafting their contracts. In doing so, it is hoped that this article will serve to explain the benefits of knock-for-knock and why it is likely to remain of importance for wind farm construction and operation activity…

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