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Offshore Construction Contracting Principles

Independent Contractor

Principles

It is recommended that the following principles be applied in relation to Contractor's independence under offshore construction contracts:

Within the confines of the Contract, Contractor shall have complete control over the Work and the schedule and manner in which the Work is to be accomplished.

In its dealings with Third Parties, Contractor shall not be allowed to bind Company in any way.


Clarifications / Considerations

Like in any construction contract, whether compensation is on the basis of lump sum or dayrate, Contractor shall be free to schedule and perform its scope of work at its own discretion provided that Contractor complies with the Contract.

For clarity this clause emphasizes that Contractor performs its duties under the Contract at its own account and that Contractor shall not be authorized to bind Company in any way.


Example Independent Contractor Clause

The following is an example of a proper Independent Contractor article.

X. INDEPENDENT CONTRACTOR

Contractor shall be an independent contractor and has full power and authority to select the means, sequence, methods and manner for performing the Work in accordance with the Contract.

Contractor shall have no power or authority to execute contracts on behalf of Company nor to act as Company's agent or otherwise bind Company, nor shall Contractor hold itself forth as having such power.