Salvage, SCOPIC, LOF, special casualty representative Home Publications Articles Recent Developments in Salvage Recent Developments in Salvage Publications Ian Freeman Published: February 01, 2019 Contact author Download article pdf   February 2019 Video article   In late 2016, Lloyd’s of London, the custodians of LOF (Lloyd’s Open Form salvage agreement) and SCOPIC (Special Compensation P&I Clause), initiated a review of both SCOPIC and the LOF forms to ensure they remain relevant and viable in the current market. This culminated in the publication of the SCOPIC 2018 form, a revision of the SCOPIC security standard wording and a consolidation of all the guidance documentation provided to SCRs. SCOPIC 2018 First incorporated into the LOF 2000 form, and with some relatively modest modifications since, the SCOPIC Committee of Lloyd’s came to the conclusion that SCOPIC had worked well for the past eighteen years. As a replacement to Article 14 of the International Convention on Salvage 1989 (Special Compensation), SCOPIC continues to enjoy broad support from all sectors of the industry. However, an inequality was identified related to SCOPIC security and a contractor’s rights to terminate. Having signed an LOF with SCOPIC incorporated, the salvage contractor may invoke SCOPIC at any time. On doing so, the contractor is entitled to SCOPIC security of US$3,000,000 in the form of a bank guarantee or a P&I Club letter a to be provided within two working days of SCOPIC being invoked. This is the so named ‘Initial Security’. If the owner of the vessel fails to provide the requisite security the contractor has the option to withdraw from SCOPIC and continue the salvage operation under LOF as though SCOPIC had not existed. This is an incentive to the owner to provide security in order to avoid the vagaries of an Article 14 claim by the contractor. SCOPIC also obliges the owner to increase the initial security if it proves insufficient to cover the contractor’