The main operational risks for Boskalis concern the contracting and execution of projects for clients, as outlined above. For most of our project activities the most common type of contract is fixed price/lump sum, under which the contractor’s price must take into account virtually all the operational risks as well as the cost risks associated with the procurement of materials and subcontractor services. In most cases it is not possible to charge clients for any unexpected costs. Furthermore, many contracts include milestones and associated penalty clauses if the milestones are not achieved on time. That is why much emphasis is placed on identifying, analyzing and quantifying such operating, cost and delay risks during the tendering procedure and contracting phase of a project.
Operational risks mainly relate to variable weather or working conditions, technical suitability and availability of the equipment, unexpected soil and settlement conditions, wear and tear on equipment (especially dredging equipment), damage to third-party equipment and property, the performance of subcontractors and suppliers, and the timely availability of cargo or services provided by the client in case of heavy marine transport and/or installation activities.
The following measures are taken systematically in order to control the aforementioned risks in the tender, preparation and/or execution phase: