We offer a unique prospective and an in-depth approach when it comes to choosing a shipyard that will be tasked with building a multi-million asset that turns your dream into a reality. As a passionate team of designers, engineers, captains, surveyors and production line professionals, we take pride and thrive in every day challenges of building and delivering the perfect yacht; a yacht that will be unique in quality, craftsmanship, performance and durability. A yacht that will stand the test of time. We go above and beyond to deliver this.
Working solely for the client, with their best interests and requirements at the front and centre of any given situation, we are able to deliver impartial advice on what to build, which shipyard to choose, and the best way to proceed at various stages; before, during and after the construction. Intelligence, thorough planning and quality control are paramount to the success of your new yacht and her first years in the water.
Our unbiased approach cuts through the marketing noise and ensures that you are provided with an in-depth analysis of a yard’s financial stability, their building quality, delivery history and warranty reputation, as well as their unique features, selling points and advantages. Based on realistic assessments of where the risks and opportunities lie with each of the shortlisted yards and competitive offers they have put forth, we are strategically positioned, guiding your authorised regional dealer where necessary, to negotiate balanced and compelling contracts once the shipyard has been chosen.
The procedure for making warranty claims and how any disputes will be dealt with. A common provision is for the parties to agree that a guarantee team employed and paid for by the Builder will be placed on the yacht for some or all of the warranty period so that, where possible, he can deal with any claims made by the Buyer or where he is unable, to authorise further remedial works.
How and where any further remedial works that cannot be carried out by the guarantee team will be effected. The Buyer will need to have an ability to carry out temporary repairs in the event of any emergency. For other repairs the Buyer will also normally wish to have a right to have repairs effected at a port near to the yacht when the defects are detected so that any interruption to the yacht’s itinerary can be minimised. In these cases the Buyer would also be seeking a right of reimbursement for all repair costs that it may incur even if these would exceed the cost of the repairs being carried out by the Builder. In contrast, the Builder will normally be seeking to impose an obligation that all repairs covered by the warranty are effected at the Builder’s yard and that where it agrees to repairs being carried out elsewhere its liability to reimburse the Buyer for the cost of the same will be limited to the costs that would have been incurred by it in remedying the defects at its own premises.
The extent to which any remedial works carried out in the warranty period will be covered by a further warranty. The Buyer will be seeking to have such work and material covered for an equivalent period after the warranty period has expired. A Builder will usually be prepared to do this to a limited extent but will normally insist that no such claims can be made more than 6 or 8 months after the expiry of the warranty period in order to provide it with an absolute date of termination of its warranty liability.
Although 24 months is the most common warranty period it may be possible to negotiate extended periods particularly if these are only to relate to certain specified matters. For example, for hull, engines, generators or specialised equipment, it may be possible to negotiate an extended warranty, since longer warranties will normally be available from the relevant suppliers thereof. Generally speaking, the Shipbuilding Contract should also provide for the Builder to assign the benefit of any remaining warranties that it has in relation to the ship from its sub-contractors to the Buyer upon the expiry of the warranty period
The security to be provided in respect of the Builder’s obligations under the warranty provision. This may take the form of a further bank guarantee issued by the Builder’s bank (a “warranty guarantee”) although any claim under such a bank guarantee is likely to be limited to a percentage of the purchase price. Alternatively, the Buyer may be able to negotiate the retention of an equivalent amount of the purchase price for the duration of the warranty period although a provision of this type is usually resisted by the Builder.
After the analysis stage has been approved, a draft contract will be supplied to the yard, of which they will then pass on to their own lawyers and the negotiation process can begin.
We will work closely with your counsel, or refer our partner law firm to draft a balanced contract to protect your interests, ensuring your requirements and rights are at the centre stage of the agreement.
The exact terms of the warranty provision will need to be considered carefully and are likely to be the subject of extensive negotiation. The following are some issues that will, in particular, need to be covered:
