Offshore Construction Contracting Principles
Knock for Knock Indemnity
Knock for Knock Indemnities Principles
It is recommended that the following principles be applied in relation to indemnities for personnel and property under offshore construction contracts:
Each Party shall assume responsibility for the personnel and property within its own Party Group and shall indemnify the other Party accordingly,
irrespective of cause or circumstances,
and irrespective of gross negligence or wilful misconduct.
Clarifications / Considerations
This traditional knock for knock indemnity principle makes the responsibilities and liabilities of the Parties absolutely clear and simple.
- "Party Groups" shall be properly defined to include the respective Party's Affiliates, other Contractors, Subcontractors and Clients of any tier, and all of their personnel, officers, directors etc. as may be applicable and related to the Contract.
- To avoid massive discussions in court, with the associated cost of litigation and the risk of having the indemnities disabled, it is important to include any form of negligence and misconduct under the definition.
Whatever you agree in a contract, please be aware that not all law systems will recognize your indemnities.
For example, in a U.S. court your indemnity provisions remain subject to the common law concept known as the "express negligence rule" and must pass the "conspiciousness test", while in a Texas court the effectivity of contractuel indemnities is limited by a Texas statute known as the "Texas Anti Indemnity Act" (TAIA).
More Indemnity and Insurance Related Subjects:
- Deductible - Responsibility
- Indemnities for Personnel and Property - General
- Knock for Knock Indemnity
- Pollution Indemnity
- Third Party Indemnity
- Waivers of Subrogation