New Updated WRECKSTAGE Agreement 2024 Has Been Released By BIMCO

By June 18, 2024 No Comments

WRECKSTAGE, the industry-standard agreement for maritime wreck removal projects where the contractor is paid on a lump sum basis, has been updated by BIMCO. Several adjustments have been made, the most significant of which is the addition of an optional risk allocation process known as QRA (quantitative risk assessment), which aims to increase the level of certainty in risk allocation. The outcome is a better agreement that the industry will gladly accept.

The industry was first exposed to BIMCO’s three wreck cleanup agreements, WRECKSTAGE, WRECKHIRE, and WRECKFIXED, in 1999. The agreements were updated in 2010 to reflect changes in business practices and provide a more equitable distribution of power among the parties.

Significant casualties and wreck removals have occurred since the 2010 forms were released, as well as developments in technology and sophistication in the wreck removal contracting between the parties, as well as widespread adoption of the Nairobi Convention.

Bimco Wreckstage Agreement
WRECKSTAGE is the industry-standard agreement for maritime wreck removal projects

WRECKSTAGE was revised as a result of the Quantitative Risk Assessment (QRA) being incorporated into the maritime wreck removal operations contracting process and talks about updating the wreck removal tendering code of practice between the International Group of P&I Clubs and the International Salvage Union (ISU).

This prompted the decision to revise each of the three wreck disposal contracts. In order to inform and direct choices on the transfer of risk between the contracting parties and the ensuing pricing ramifications should such risks materialise, risk is assessed using quantitative risk analysis (QRA) during the negotiation, planning, and execution phases of an engineering project.

WRECKSTAGE is the outcome of a cooperative and mutually agreeable procedure including legal experts, salvors, the International Group of P&I Clubs and individual P&I Clubs, and representatives of the International Salvage Union (ISU).

Vassallo Associates can advise on all aspects of Maritime Law, contact us to discuss your requirements.

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