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We would like to invite you to come and see the posters at our upcoming conference. The posters will showcase a diverse range of research topics, and will give delegates an opportunity to engage with the authors and learn more about their work. Whether you are a seasoned researcher or simply curious about the latest developments in your field, we believe that the posters will offer something of interest to everyone. So please join us at the conference and take advantage of this opportunity to learn and engage with your peers in industry and the academic community.
PO208: From Warranty to Liability: How OEM Logistics Carve-Outs Reshape Risk in Offshore Wind Service Agreements
Nina Kolcheva, Lead Consultant, PEAK Wind
Abstract
Service and Maintenance Agreements (SMAs) in offshore wind are undergoing a structural shift as turbine OEMs (“Contractors”) increasingly exclude crew transfer and heavy lift logistics for Major Component Exchanges (MCEs) from their standard scope. This change transfers substantial commercial, operational and warranty-related risks to developers and owners (“Employers”). When logistics scope moves from “Contractor-provided” to “Employer-provided”, risks and obligations not only shift from one party to the other, but can also create new risks that may have not been previously considered. Implications extend far beyond securing vessel capacity. Employers must now assume responsibilities across a much wider spectrum, including vessel chartering and contract management, compliance with Availability Warranty (AW) provisions, interface management with OEMs, maritime insurance and liability oversights, regulatory/HSE compliance for heavy lift operations and crew transfer. Employer protection under the AW is likely to diminishes when logistics are carved out, leaving projects more exposed to warranty disputes, extended downtime, and unplanned costs especially after the Defects Notification Period (DNP) when MCE needs typically increase. These shifts also directly impact projects cost structure. Developers and owners must now account for higher pre-CoD costs associated with early procurement of vessels and logistics services, while OPEX may increase due to potential vessel unavailability, delays or weather-related downtime, adding further financial uncertainty. This study examines the commercial and contractual consequences of carving out O&M logistics scope from SMAs with focus on risk mitigation and contract negotiations strategies. It introduces a practical risk allocation matrix that maps key commercial and contractual risks, including “hidden” obligations arising from Employer-provided logistics. The study quantifies these risks in terms of their likelihood and potential impact on project financial performance, pre-COD and OPEX costs and project operational resilience, providing Employers with a practical tool to strengthen SMA negotiations, limit warranty disputes and decrease liability exposure.
No recording available for this poster.
