The latest edition of this contract is WRECKHIRE 2010.
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Set out below are the changes made to the original WRECKHIRE Agreement in order to create the new WRECKHIRE 99 Agreement.
Box 4 now refers to GT, NT and DWT.
There is a new Box 9 (Permits), which deals with changes made to Clause 6.
The remaining boxes, up to and including the original Box 12 are re-numbered accordingly. Box 13 (Security Requirements) has been deleted due to changes to Clause 13.
A new paragraph has been added to the Preamble above the signature boxes, to deal with any conflict that may arise between the terms and conditions of Part I and Part II.
During the revision of WRECKHIRE, the P&I Clubs raised a point relating to a situation where the services become easier due to a change of circumstances. The particular instance they gave as an example was a sunken vessel which had to be reduced to give a certain depth clearance. Between agreeing the contract price and commencement of operations the vessel had sunk into the seabed. As a result the work required was significantly reduced.
The Clubs considered it was only fair and reasonable for Clause 4 to be amended to work both ways and, as a result, a new sub-clause 4.4 has been introduced reading as follows:
4.4 If, as a result of a material change in the position and/or condition of the Vessel, or the worksite, subsequent to entering into this Agreement, the services set out in Box 7 and Annex I become easier to perform in terms of personnel, craft, and/or equipment requirements, then:
4.4.1 the Company may, subject to the provisions of Clause 10.4 hereof, seek a reduction in respect of the monies payable pursuant to Clause 10.1 hereof;
4.4.2 in the event of a failure to agree the amount of any such reduction, then such dispute shall be dealt with pursuant to the provisions of Clause 18 hereof.
The original WRECKHIRE sub-clause 5.4 indemnity for removal, disposal or jettison of property has been deleted, as it is considered that the “hold harmless” provisions of the new sub-clause 14.2.2 adequately deal with this matter.
The Clubs wanted to reverse the obligation by placing the burden on the Contractor to obtain any permits, etc. However, the wording of Clause 6 now leaves it to the parties to decide this matter, on a case by case basis, by nominating in Box 9 the party who will be responsible for obtaining permits, licences, etc.
BIMCO recommends that the Standby Rate should be set at a level which will encourage the Contractor to progress the operation. It should be noted that in WRECKHIRE 99 it is the Company who must notify the Contractor when, in its opinion, the Standby Rate should apply. Without such notification the normal Daily Hire Rate(s) will continue to apply.
Sub-clause 9.2 deals with the consequences of a failure by the Company to take delivery, and the right of the Contractor to sell the property in such a situation. Finally, sub-clause 9.3 explains that references to the “Vessel” includes parts of the Vessel and/or its cargo and that delivery of such may take place at different times and at different places.
Contractors should note that the cross indemnities relating to liability for pollution from the “Vessel” or from the Contractor’s Craft are excluded from the Agreement. Contractors should therefore ensure that they have adequate and proper cover for such risks.
It should also be noted that sub-clause 14.2.1 has also been amended at lines 241 - 242 by including the words “excluding portable salvage equipment, materials or stores which are lost damaged or consumed during the services”. This is to avoid any conflict or ambiguity between sub-clause 12.7 and this sub-clause 14.2.1.
In addition, the Clubs requested that WRECKHIRE sub-clause 14.4 be deleted, as it could be used to argue that if the Contractor is liable to a third party and is unable to limit his liability, then the Company should indemnify the Contractor for any excess liability.
This could result in the Company accepting liabilities in excess of its own limit of liability.
The clause has been slightly amended from the original WRECKHIRE in that a claim must be brought either within 12 months of completion or termination of the services, or within 12 months of notification of a claim by a third party, but any suit must be brought within one year of the notification to the party against whom the claim is made.
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