Abstract

Parties' liability of contractual risk under Offshore Wind Farm contracts seeks to radically abandon common law assumptions regarding risk allocation. Under the provisions of common law, whoever breaches a contract obligation or any particular legal obligation holds liability based on the fault committed, and therefore indemnifies the damaged person. Yet, this is not always the case in the offshore wind farm industry, where risk is allocated to the party who is capable of controlling this risk. In this regard, the parties use the contract to reduce the risk potential or control the consequences of that risk. Risk provisions are arranged either in an agreement between project developer and contractor (multi-contracting system), or between contractor and sub-contractor (EPCI contracts regime). This research paper discusses risk allocation contracts for offshore wind energy with regard to "Knock-for-Knock" standard agreement practice.