Knock-for-knock in onshore construction contracts

Foreword v

1 Introduction
1.1 Subject 1
1.2 Research Question 1
1.3 Methodology 2
1.4 Civil and Common Law Traditions 2
1.5 Interviews 3

2 Knock for knock
2.1 Fault 5
2.2 The Offshore Industry 6
2.3 The Use of Knock-for-knock 7
2.4 The Knock-for-knock Clause 8
2.4.1 Company Group and Contractor Group 10
2.4.1.1 Nuclear Family 12
2.4.1.2 Extended Family 13
2.4.2 Insurance 13
2.4.3 Carve-outs 14
2.4.4 Allocation of third party claims 14
2.5 Advantages and Disadvantages 15
2.5.1 The Insurance scheme 15
2.5.2 Disputes 15
2.5.3 The Hazardous Effect 16
2.6 The Clause in an Onshore Setting 16

3 Validity
3.1 Freedom of Contract 19
3.2 English Law 19
3.2.1 Negligence 19
3.2.2 Wilful Misconduct 22
3.2.3 The Unfair Contract Terms Act 25
3.3 Danish Law 27
3.3.1 Gross Negligence 27
3.3.2 DL 5-1-2 29
3.3.3 Contract Act § 36 30
3.3.4 Failed Assumptions 33
3.4 Norwegian Law 34
3.4.1 Gross Negligence 34
3.4.2 NL 5-1-2 35
3.4.3 Contracts Act § 36 36
3.4.4 Failed Assumptions 39
3.5 Lack of Insurance Coverage 40

4 Findings
4.1 Conclusion 43
4.2 Perspectives 44

References 47
Judgements 53

Appendix I 55
Appendix II 61
Appendix III 65
Appendix IV 67
Appendix V 71