Contracts and Risk Management

Designing a maritime tender: from the scope of services to a risk allocation matrix

How to prepare RFP documents that are clear, can be evaluated and stand up to contractual disputes.

A good tender starts with defining the problem

Ambiguity in the scope of services, the evaluation criteria or the point of delivery turns into change requests, delay and disputes during performance. The RFP should define the employer’s functional need in measurable terms, not just list equipment and repeat documents. Qualification criteria, technical and financial evaluation and contract conditions must be kept separate from the start.

Figure 06Standard maritime contract forms, a comparison of port governance models, commercial risk allocation and the regulatory controls that frame procurement.

Six knots in risk allocation

In maritime projects, change in law, restrictions on port access, weather conditions, baseline technical data, force majeure and insurance liability are sensitive points. For each risk, ask which party is able to prevent, reduce or insure it. Transferring a risk by contract to a party that has no control over it can raise the bid price or lead to multiple claims during performance.

Transparent evaluation and conflicts of interest

The evaluation committee must follow the published criteria, weightings and documentation of its decisions. Changing criteria after bids are received, or subjective evaluation, weakens the credibility and defensibility of the process. A conflict of interest declaration form and minutes of the decision are essential for institutional control.

The practical output: two complementary documents

For every tender, prepare an “RFP control checklist” and a “risk allocation matrix”. The matrix should include a description of each risk, its likelihood and impact, the risk owner, the contract clause and the monitoring method. In contracts based on BIMCO forms, the text must also be reviewed by a specialist to fit the subject, the governing law and the terms of the transaction.

Practical checklist

  • Make the scope and the acceptance criteria for the service measurable
  • Fix the evaluation criteria in advance
  • Allocate the risks of change in law and delay
  • Write the change control and dispute route clearly

Frequently asked questions

Does a standard BIMCO contract need no review?

No. Standard terms are a useful basis, but they must be adapted to the transaction, the governing law and the specific need.

Editorial note: this article is written for awareness and management decision-making. Applying any rule depends on the authentic current text, the legal position of the State concerned and the facts of the case. The content is independent and implies no endorsement by, or affiliation with, IMO.

Sources

  1. BIMCO — Contractual Affairs
  2. World Bank — Port Reform Toolkit (3rd Edition)

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