Traditionally during the construction and installation phases of offshore construction projects, a Construction All Risks (CAR) policy will be taken out by the operator or their appointed contractor to cover against fortuitous losses during design, handling, transportation, installation and testing & commissioning activities of the permanent components of the project. In most cases the terms of these policies include a "Marine Warranty Clause" within which the Underwriter(s) will require that an independent Marine Warranty Surveyor (MWS) be appointed to the project to act as marine experts on their behalf. This is to ensure the construction phases are completed effectively and safely. Despite Underwriter(s) appointing MWS for the majority of construction projects there appears to be a steady stream of construction losses in the insurance industry.
The scope of MWS task is enormous, from reviewing design documents and installation documents to approving installation activities offshore - so is one MWS representative sufficient to minimise the risk? This paper discusses the real importance of MWS for any offshore construction project and identifies the current shortfalls.