This is great news. BIMCO is the largest shipping association out there, and with it’s large membership pool, it has some pull. So when they come up with a standard contract for armed guards on boats, then that helps to create a single standard that all of the companies, lawyers and insurance providers can work from. This is important, because with a standard like this there is no guess work. Either your company meets the standard, or it does not. A standardized contract also helps to mitigate the principal agent problem, and it is a means to protect the interest of both parties.
As to commentary on the GUARDCON Contract, I would head over to Close Protection World’s Maritime Security Forum. The guys are already discussing it and it’s possible impact on the industry.
On a side note, it is interesting to me that a NGO like BIMCO has the ability to determine the appropriate rules for the use of force, and basically guide all of their members to use those rules. I am used to countries and their military leaders dictating what the appropriate rules are, just because they have the monopoly on the use of force throughout the world. In this case, a NGO is now dictating that. What an odd set of circumstances… –Matt
Copies and Information about GUARDCON Contract here.
BIMCO publishes much anticipated GUARDCON Contract
March 28, 2012
BIMCO is pleased to announce the publication of the GUARDCON standard contract for the employment of security guards on vessels. This brand new contract has been developed to provide ship owners and private maritime security companies (PMSC) with a clearly worded and comprehensive standard contract to govern the employment and use of security guards, with or without firearms, on board merchant vessels. While BIMCO would not like to see the use of armed security guards on ships becoming institutionalised, it recognises that while the industry awaits a more permanent long term solution, armed guards currently provide an effective deterrent to piracy attacks.
BIMCO’s Chief Officer Legal and Contractual Affairs, Grant Hunter said “In response to ship owners’ increasing demand for security services, an ever growing number of private maritime security companies have entered the market to meet that demand. In the absence of a standard contract for these services, ship owners and their P&I Clubs are currently faced with the difficult and time consuming task of assessing large numbers of contracts from these security companies, all with varying terms and conditions.GUARDCON’s objective is to create a contractual benchmark for the employment of security services so that minimum levels of insurance cover for PMSCs are established and that adequate safeguards are put in place to ensure that liabilities and responsibilities are properly addressed and that all necessary permits and licenses are obtained.”
According to BIMCO Deputy Secretary General, Søren Larsen, “GUARDCON has been drafted in just a little over three months by a small group of experts drawn from ship owners, underwriters, P&I Clubs and lawyers with first-hand experience of working with contracts for security services. The speed at which GUARDCON has been drafted is a considerable credit to the drafting group whose members devoted many long hours free of charge to the project.”
The members of the drafting team are Tor Langrud, Wilhelmsen, Norway (Chairman); Daniel Carr, Stolt-Nielsen, USA; Chris South, West of England P&I Club; Andrew Moulton, Ascot Underwriters; Stephen Askins, Ince & Co; and Elinor Dautlich, Holman Fenwick Willan.
The drafting work was not however conducted in isolation; consultations were conducted with PMSCs and insurance underwriters during the process and the drafts were also carefully scrutinised by members of the International Group of P&I Clubs. BIMCO’s own influential Documentary Committee also played their usual essential role by thoroughly reviewing GUARDCON to ensure it met the standards expected of a BIMCO standard contract.
BIMCO has also published Guidance on the Rules for the Use of Force (RUF) to accompany GUARDCON which will undoubtedly be of great assistance to owners and private maritime security companies when drawing up and agreeing RUF for their own purposes.
Sample copies of the GUARDCON contract, with detailed Explanatory Notes, and the Guidance on the Rules of the Use of Force can be obtained from the below link.
Contact person:?Mr Grant Hunter?Chief Officer Legal and Contractual Affairs?Tel: +45 44 36 68 00 ?Direct:+44 56 02 05 16 01?E-mail: gh@bimco.org?Web: www.bimco.org
Press release here.————————————
About BIMCO (from website)
BIMCO is the largest of the international shipping associations representing ship-owners controlling around 65 percent of the world’s tonnage and with members in more than 120 countries drawn from a broad range of stakeholders having a vested interest in the shipping industry, including managers, brokers and agents.
The association’s main objective is to protect its global membership through the provision of quality information and advice, and while promoting fair business practices, facilitate harmonisation and standardization of commercial shipping practices and contracts. In support of its commitment to promote the development and application of global regulatory instruments, BIMCO is accredited as a Non-Governmental Organisation (NGO) with all relevant United Nations organs.
In an effort to promote its agenda and objectives, the association maintains a close dialogue with Governments and diplomatic representations around the world including maritime administrations, regulatory institutions and other stakeholders within the areas of EU, the USA and Asia.