longer primarily one of acting as a ‘policeman’ on behalf of insurers or other principals.


In an increasingly commercially competitive world, warranty surveyors are adding value to all project stakeholders by helping to ensure that the integrity of the project cargo and delay in start- up insurance cover is maintained throughout the project lifecycle.


MEETINGS Baggaley and Moran said all of LOC’s projects start with a kick- off meeting, as it is an invaluable opportunity to introduce all of the parties to each other. They discuss the scope of work, clarify the contractual terms, and make sure everyone understands what is required. The meeting also serves as a good opportunity to establish LOC’s independence.


Baggaley added that LOC also has a presentation that explains exactly what marine warranty is. He said that “people often think they know and you find they do not really, or even worse they think you are there as the man from the insurance or some sort of police enforcement surveyor. We can dispel all of those misconceptions and the meeting is usually very constructive.”


Weiss said that all the stakeholders should be involved. “I want all of the parties to be concerned about the move and pay attention to every detail. There are many companies out there that are very experienced in moving project cargo and while everyone has a problem occasionally, the ones that have problems all the time need to be rooted out and not used. It would be prudent to be working with financially stable carriers as well,” he stressed, alluding to Hanjin’s plight.


Honing said: “Sometimes they [the stakeholders] have different ideas which do not always provide a workable solution.”


Mills agreed but warned: “You should always try to see the motive behind their reasoning and actions.”


MINIMISING RISK LOC’s Baggaley and Moran said that successfully minimising risk is its absolute priority, but another stakeholder may be more focused on cost or keeping to schedule.


It


can be a juggling act to manage all of the different priorities, but no one actually wants to be a problem; if one party is being difficult, it usually means their objectives and priorities have not been understood correctly, or even more likely, it is a lack of, or breakdown in, communications.


As for any potential improvements in MWS, Weiss said that the intense competition and large amount of available insurance capacity has caused a decline in rates almost to the point of the project not being worth the risk for the underwriter. Therefore an improvement in rates would be an important factor.


Another consideration is that risk engineering is the driver behind the success or failure of a project. When a project is accomplished


It is never ideal to be


working on a project where everything is last minute.


Tony Moran,


London Offshore Consultants


without the use of risk engineering, while it can lower the immediate cost, the longer-term cost can be a claim, which not only costs the underwriters but also costs the project time and possibly reputation. Honing advised appointing a good surveyor at an early stage so that he or she can help with issues that might arise.


Mills advocated the use of ISO 55000 (standards for asset management), which “…would be a great way to start weighing up risk”.


Volante and Covello said the infrastructure project industry could benefit from the development of more combined and tailored insurance programmes that effectively cover a more extensive range of risks under a single insurance policy, which could be paid for, in an agreed proportion, by the key participating project stakeholders.


Baggaley and Moran said that they would always lobby for earlier visibility and earlier involvement in the process – the earlier the marine warranty surveyor is involved the more robust the management of risk can be.


“It would also help if the MWS could meet the lead underwriter and the insured party right at the beginning of the project so that they could review the scope of work and agree on the marine warranty surveyor’s role throughout the project. Too often they are remote and information is channelled through many intermediaries, which can lead to the distortion or loss of information en route,” Baggaley said.


The Report • March 2017 • Issue 79 | 35


RedBox’s Audax transports Yamal project modules.


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