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Standard Offshore Wind Farm Personnel
Transfer
and Support Vessel Charter Party, WINDTIME
Pijaca, M., Botić, M.
IMSC, Solin, Croatia, 20-21 April 2017

Progressive
development of a
large number of wind
firms
THE ANSWER TO THE
PROGRESSIVE DEVELOPMENT
OF A LARGE NUMBER OF WIND
FIRMS
SUPPLYTIME
2005
WINDTIME
FORM
•Goal of paper:
•Analysis the content of the provisions of the
WINDTIME form
•Ascertain the manner in which the form regulates
legal relationship between the parties  owner
and charterer
Legal nature of the contract and parties to the form WINDTIME
WINDTIME IS A TIME CHARTER,
NAMELY, THE NATURE OF THE
CONTRACT IS THAT OF A TIME
CHARTER PARTY
Parties to this contractual relationship are the owner and
the charterer, which in a reciprocal contract by virtue of
which one party, the owner, undertakes to let the vessel
and offer the service of transport vessel for wind farms
operations while the other party, the charterer, hires the
vessel for a certain charter period i.e. use the service of
transport vessel for wind farms operations and
undertakes to pay the hire.
WINDTIME FORM Definitions
Baltic and International Maritime Council (BIMCO)
published WINDTIME in 2013
INTRODUCTORY PROVISIONS OF THE WINDTIME
FORM
Introductory part of the
WINDTIME form cites the
relevant terms of the
contractual relationship:
Offshore unit, Vessel, Day,
Working day, Working
Hours…
… Charter Period - provisions
of the WINDTIME form on
delivery and redelivery of the
vessel together provide
information on the duration of
the contract
All terms in introductory part
are clearly defined by the
form, except the terms owner
and charterer!
Standard Offshore Wind Farm Personnel
Transfer and Support Vessel Charter Party
Standard box layout system with 40 boxes
to fill
LEGAL NATURE OF THE CONTRACT AND PARTIES TO THE FORM WINDTIME
FUNDAMENTAL RIGHTS AND
OBLIGATIONS OF THE PARTIES TO
WINDTIME FORM
emphasis on the of
liability of fulfilling
the contract
DELIVERY OF THE VESSEL
In the provision on delivery,
WINDTIME states that “If the
Vessel is not delivered by
midnight local time on the
cancelling date …, the
Charterers shall be entitled to
cancel this Charter Party …”
(clause 2(c), WINDTIME)
The form provide the parties
with three options as to how
liability for late delivery: first
charterer can cancel the
contract without liability to the
other for any losses incurred
by reason of the non-delivery
of the vessel or cancellation.
Second the parties can retain
their right to claim general
contractual damages in the
event of late delivery or
cancelling, third the owner
pays liquidated damages per
REDELIVERY OF THE
VESSEL
According to the redelivery
provision, the vessel must be
redelivered either at the end of
the agreed charter period or
the earlier termination of the
contract (clause 3(a),
WINDTIME) with regulated
payment of a lump sum
demobilisation fee which is
payable either when charter
reaches the end of the agreed
period or on the earlier
termination of the contract as
per clause 31(a) titled Early
Termination – At Charterers’
Convenience or 31(c) titled
Early Termination – Default.
HIRE AND PAYMENTS
Payment of charter hire is a fundamental obligation of the
charterer: charter hire is payable “per working day or pro rata for
part thereof from the time that the Vessel is delivered to the
Charterers until the expiration or earlier termination of this
Charter Party” (clause 14(a), WINDTIME)
WINDTIME form also states that „... any advances for
disbursements made on behalf of and approved by the Owners
may be deducted from Hire due.
If payment is not received by the Owners within five (5) Banking
Days following the due date the Owners are entitled to charge
interest at the rate stated in Box 29 on the amount outstanding
from and including the due date until payment is received.“
(clause 14(e), WINDTIME) if after the five (5) days of the written
notice ... the hire due has still not been received the Owners
may ... withdraw the vessel“ (clause 14(f)(ii), WINDTIME)
Right of the charterer to suspend charter hire payments (off-
hire clause) in WINDTIME form are possible if the vessel is
prevented from working as a result of a number of incidents;
deficiency of crew, strike, breakdown of the machinery…but not
in of not utilising or under-utilising the vessel. These are risks
OTHER PROVISIONS OF THE WINDTIME
FORM RELATED TO THE EXECUTION
OF THE CONTRACT
Both parties
involved jointly
According to the WINDTIME form, both parties participate in
the process of establishing the condition of the vessel at
handover and return of the vessel
consider several rights and obligations of the parties
related to the use and execution of the contract:
oin the provision titled Vessel Audit and Survey prescribes
that the owner and the charterer must jointly appoint
surveyors who must inspect and establish the condition
of the vessel: defines the manner in which the vessel
inspection costs are allocated and according to the
provision, the owner and the charterer must jointly bear
the costs of such surveys (clause 6, WINDTIME).
oprovision of the clause 12(a) WINDTIME form is that the
charterer does not pay for the fuel (bunker) of the vessel,
but it is the charterer or the owner, as applicable, who
must pay the shortfall or excess in the quantity of fuels
remaining on board at redelivery as compared to the
quantity on board at delivery at the price prevailing at
the time and port of redelivery
ochartered vessel is not at the disposal of the charterer
24 hours a day, but that, The vessel and Master will be at
the charterers' service during the agreed working day of
the contract, but if the charterer wishes to use the vessel
outside the agreed working day, they must inform the
owner in a timely manner (clause 8(a), WINDTIME).
LIABILITIES PURSUANT TO THE
WINDTIME FORM
allocation of the risk of loss to people and
property.
THE LIABILITY REGIME OF THE WINDTIME IS BASED
ON A KNOCK-FOR-KNOCK PRINCIPLE FOR DAMAGE
TO PROPERTY AND PERSONNEL
oparties agree not to hold the other party liable, even
when loss, damage, injury or death was caused „wholly
or partially by the act, neglect, gross neglect or default
ocharterer and owner bears responsibility for loss or
damage to property and personal injury or death of
personnel of the relevant party and they must through
this provision indemnify, protect, defend and hold
harmless the other party from „any and against all
claims, cost, expenses, actions, proceedings, suits,
demands and liabilities whatsoever arising out of or in
connection with such loss, damage, liability, personal
injury or death“ (clause 16(a)(i)(ii), WINDTIME).
oliability provision of the WINDTIME forms includes a
mutual exclusion of liability for the other party's,
primarily loss of profit, use or production and
consequential loss or damage, but not an express right
to be indemnified from such losses suffered by the other
party's contractors (clause 16(b), WINDTIME).
FINAL PROVISIONS OF THE
WINDTIME FORM
One of the innovative provisions of the form is the
mentioning of the mediation as an option for resolving
disputed between parties.
PROVISION ON DISPUTE RESOLUTION AND ON
NOTICES.
The provision contains several paragraphs which pertain
to the interpretation of the contract, court jurisdiction for
dispute resolution and amicable dispute resolution.
The WINDTIME form stipulates that all notices which the
parties deliver to one another must be made in writing
(also allows the communication of the parties through e-
mail as a novelty)
Provision on notices establishes the manner in which
the notices are delivered, however, it does not define
when the counterparty must receive the notice: since the
WINDTIME form does not provide a solution for this
issue, it is recommended to add a paragraph on the
interpretation of the time of the receipt of the notice
within the provision on notices, whether they are sent by
e-mail, telex etc. This issue may be considered
irrelevant, but is must not be left to chance, especially
when we consider the importance of these notices, for
example, in realisation of right on contract termination
due to late delivery of the vessel (cancellation clause)
CONCLUSION
•Final goal of paper:
•Establish whether the content of the provision of
the form satisfies the interest of the parties in
contractual relationship.
WINDTIME form contains a large number of provisions
and that it regulated the contractual needs of the parties
which provide and require service of transport vessels for
wind farm operations very clearly and in great detail
the form we observed a lack of definitions for the terms owner and charterer.
MPIJACA@UNIZD.HR
MBOTIC@UNIZD.HR
thank you for your attention

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WINDTIME -Pijaca Botić_FINAL.ppt

  • 1. Standard Offshore Wind Farm Personnel Transfer and Support Vessel Charter Party, WINDTIME Pijaca, M., Botić, M. IMSC, Solin, Croatia, 20-21 April 2017
  • 3. THE ANSWER TO THE PROGRESSIVE DEVELOPMENT OF A LARGE NUMBER OF WIND FIRMS SUPPLYTIME 2005 WINDTIME FORM
  • 4. •Goal of paper: •Analysis the content of the provisions of the WINDTIME form •Ascertain the manner in which the form regulates legal relationship between the parties  owner and charterer
  • 5. Legal nature of the contract and parties to the form WINDTIME
  • 6. WINDTIME IS A TIME CHARTER, NAMELY, THE NATURE OF THE CONTRACT IS THAT OF A TIME CHARTER PARTY Parties to this contractual relationship are the owner and the charterer, which in a reciprocal contract by virtue of which one party, the owner, undertakes to let the vessel and offer the service of transport vessel for wind farms operations while the other party, the charterer, hires the vessel for a certain charter period i.e. use the service of transport vessel for wind farms operations and undertakes to pay the hire.
  • 7. WINDTIME FORM Definitions Baltic and International Maritime Council (BIMCO) published WINDTIME in 2013
  • 8. INTRODUCTORY PROVISIONS OF THE WINDTIME FORM Introductory part of the WINDTIME form cites the relevant terms of the contractual relationship: Offshore unit, Vessel, Day, Working day, Working Hours… … Charter Period - provisions of the WINDTIME form on delivery and redelivery of the vessel together provide information on the duration of the contract All terms in introductory part are clearly defined by the form, except the terms owner and charterer!
  • 9. Standard Offshore Wind Farm Personnel Transfer and Support Vessel Charter Party Standard box layout system with 40 boxes to fill LEGAL NATURE OF THE CONTRACT AND PARTIES TO THE FORM WINDTIME
  • 10. FUNDAMENTAL RIGHTS AND OBLIGATIONS OF THE PARTIES TO WINDTIME FORM emphasis on the of liability of fulfilling the contract
  • 11. DELIVERY OF THE VESSEL In the provision on delivery, WINDTIME states that “If the Vessel is not delivered by midnight local time on the cancelling date …, the Charterers shall be entitled to cancel this Charter Party …” (clause 2(c), WINDTIME) The form provide the parties with three options as to how liability for late delivery: first charterer can cancel the contract without liability to the other for any losses incurred by reason of the non-delivery of the vessel or cancellation. Second the parties can retain their right to claim general contractual damages in the event of late delivery or cancelling, third the owner pays liquidated damages per REDELIVERY OF THE VESSEL According to the redelivery provision, the vessel must be redelivered either at the end of the agreed charter period or the earlier termination of the contract (clause 3(a), WINDTIME) with regulated payment of a lump sum demobilisation fee which is payable either when charter reaches the end of the agreed period or on the earlier termination of the contract as per clause 31(a) titled Early Termination – At Charterers’ Convenience or 31(c) titled Early Termination – Default.
  • 12. HIRE AND PAYMENTS Payment of charter hire is a fundamental obligation of the charterer: charter hire is payable “per working day or pro rata for part thereof from the time that the Vessel is delivered to the Charterers until the expiration or earlier termination of this Charter Party” (clause 14(a), WINDTIME) WINDTIME form also states that „... any advances for disbursements made on behalf of and approved by the Owners may be deducted from Hire due. If payment is not received by the Owners within five (5) Banking Days following the due date the Owners are entitled to charge interest at the rate stated in Box 29 on the amount outstanding from and including the due date until payment is received.“ (clause 14(e), WINDTIME) if after the five (5) days of the written notice ... the hire due has still not been received the Owners may ... withdraw the vessel“ (clause 14(f)(ii), WINDTIME) Right of the charterer to suspend charter hire payments (off- hire clause) in WINDTIME form are possible if the vessel is prevented from working as a result of a number of incidents; deficiency of crew, strike, breakdown of the machinery…but not in of not utilising or under-utilising the vessel. These are risks
  • 13. OTHER PROVISIONS OF THE WINDTIME FORM RELATED TO THE EXECUTION OF THE CONTRACT Both parties involved jointly According to the WINDTIME form, both parties participate in the process of establishing the condition of the vessel at handover and return of the vessel
  • 14. consider several rights and obligations of the parties related to the use and execution of the contract: oin the provision titled Vessel Audit and Survey prescribes that the owner and the charterer must jointly appoint surveyors who must inspect and establish the condition of the vessel: defines the manner in which the vessel inspection costs are allocated and according to the provision, the owner and the charterer must jointly bear the costs of such surveys (clause 6, WINDTIME). oprovision of the clause 12(a) WINDTIME form is that the charterer does not pay for the fuel (bunker) of the vessel, but it is the charterer or the owner, as applicable, who must pay the shortfall or excess in the quantity of fuels remaining on board at redelivery as compared to the quantity on board at delivery at the price prevailing at the time and port of redelivery ochartered vessel is not at the disposal of the charterer 24 hours a day, but that, The vessel and Master will be at the charterers' service during the agreed working day of the contract, but if the charterer wishes to use the vessel outside the agreed working day, they must inform the owner in a timely manner (clause 8(a), WINDTIME).
  • 15. LIABILITIES PURSUANT TO THE WINDTIME FORM allocation of the risk of loss to people and property.
  • 16. THE LIABILITY REGIME OF THE WINDTIME IS BASED ON A KNOCK-FOR-KNOCK PRINCIPLE FOR DAMAGE TO PROPERTY AND PERSONNEL oparties agree not to hold the other party liable, even when loss, damage, injury or death was caused „wholly or partially by the act, neglect, gross neglect or default ocharterer and owner bears responsibility for loss or damage to property and personal injury or death of personnel of the relevant party and they must through this provision indemnify, protect, defend and hold harmless the other party from „any and against all claims, cost, expenses, actions, proceedings, suits, demands and liabilities whatsoever arising out of or in connection with such loss, damage, liability, personal injury or death“ (clause 16(a)(i)(ii), WINDTIME). oliability provision of the WINDTIME forms includes a mutual exclusion of liability for the other party's, primarily loss of profit, use or production and consequential loss or damage, but not an express right to be indemnified from such losses suffered by the other party's contractors (clause 16(b), WINDTIME).
  • 17. FINAL PROVISIONS OF THE WINDTIME FORM One of the innovative provisions of the form is the mentioning of the mediation as an option for resolving disputed between parties.
  • 18. PROVISION ON DISPUTE RESOLUTION AND ON NOTICES. The provision contains several paragraphs which pertain to the interpretation of the contract, court jurisdiction for dispute resolution and amicable dispute resolution. The WINDTIME form stipulates that all notices which the parties deliver to one another must be made in writing (also allows the communication of the parties through e- mail as a novelty) Provision on notices establishes the manner in which the notices are delivered, however, it does not define when the counterparty must receive the notice: since the WINDTIME form does not provide a solution for this issue, it is recommended to add a paragraph on the interpretation of the time of the receipt of the notice within the provision on notices, whether they are sent by e-mail, telex etc. This issue may be considered irrelevant, but is must not be left to chance, especially when we consider the importance of these notices, for example, in realisation of right on contract termination due to late delivery of the vessel (cancellation clause)
  • 19. CONCLUSION •Final goal of paper: •Establish whether the content of the provision of the form satisfies the interest of the parties in contractual relationship. WINDTIME form contains a large number of provisions and that it regulated the contractual needs of the parties which provide and require service of transport vessels for wind farm operations very clearly and in great detail the form we observed a lack of definitions for the terms owner and charterer.