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This Practice Note examines professional indemnity (PI) insurance in the setting of construction projects—the requirement to carry insurance, the level and basis of cover, and standard clause wording obliging parties to maintain PI cover. For a broader review of professional indemnity insurance, see Practice Note: Professional indemnity insurance—essentials. It also reviews the usual wording found in clauses mandating the maintenance of PI insurance. Although this Practice Note addresses a consultant’s duty to keep PI insurance in force, main contractors and sub-contractors who assume design duties must likewise maintain such insurance, and the same principles outlined below apply equally to them. A contractor with no design role might regard PI cover as unnecessary; however, if it departs from a consultant’s design, an employer might claim the contractor made an ‘on-the-spot design decision’, potentially engaging a PI policy. For further detail, see Practice Note: Design liability in construction contracts—Responsibility for design under different procurement routes (notably, the section headed ‘Traditional’). Requirement to hold professional indemnity insurance A consultant’s...

A clear grasp of the spectrum of risks confronting nuclear projects is essential not just for the project company (and its investors) but also for other principal stakeholders in the civil nuclear sector, such as lenders and government. This Practice Note summarises, at a high level, the following themes relating to nuclear projects and their risk profile: development phase risks operational phase risks specific concerns for lenders the role played by government, and practical guidance for negotiating risk allocation between stakeholders For additional hands-on guidance on financing energy, power and resources projects across various sectors, including those addressed in this Practice Note, see the textbook: Energy and Resources Financing: A Practical Handbook. What are the key development phase risks in nuclear energy projects? Nuclear projects encounter several risks during development, such as: High up-front costs Nuclear ventures involve exceptionally high up-front capital expenditure (CAPEX). The magnitude of the funding need frequently means investors are reluctant...

Introduction Wind energy has been pivotal in driving the shift in generation from fossil fuels to renewables. Among renewable technologies, onshore wind is generally inexpensive and its costs have fallen sharply over the last decade; a recent International Renewable Energy Agency (IRENA) analysis indicates the levelised cost of onshore wind power dropped by 69% between 2010 and 2022. In contrast with offshore turbines, which contend with stronger winds and need underwater installation and maintenance, onshore turbines are regarded as relatively low-tech and straightforward to set up. As a result, onshore wind is among the most widely deployed renewable options, supported by a mature global market that in 2023 surpassed 940 GW of capacity across developed and developing nations on five continents. By comparison, offshore wind — with just 72 GW across three continents — is far smaller than the more advanced onshore segment. Despite the onshore market’s size and maturity, rollout remains robust, with more than 105 GW added in 2023 versus 54 GW in 2019. In 2023, onshore...