Tracking Spill Response Dollars: From Osro Contract To Invoice Review1

Abstract

ABSTRACT Cleanup costs for pollution incidents continue to escalate, prompting closer scrutiny of contractor invoices and activity during cleanup operations. Many times this scrutiny results in delayed payments as the responsible party (RP) and oil spill removal organization (OSRO) argue about expectations and debate what is fair and reasonable given the contract terms and specifics of the cleanup. Although both sides appear to have drawn a line in the sand, each is eager to resolve the conflict. As in most disputes, the answer very well may lie in better communications between the parties.