The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
This Practice Note considers the main terms included in standard form shipbuilding contracts. In particular, it looks at:
standard forms of the shipbuilding contract
title to the vessel
supervision and trials
delivery of the vessel
termination of the shipbuilding contract
dispute resolution provisions, and
potential issues for lenders
This Practice Note considers the position in relation to commercial vessels in general. For information relating specifically to superyachts (a motor or sailing yacht greater than 30 metres in length), see Practice Note: Superyacht finance—sale and purchase of superyachts.
Standard form documentation has been developed across the world. The most commonly used forms are:
the Shipbuilders' Association of Japan 1974 standard contract (SAJ form), which has also been used as a starting point for other standard forms of contract used in South Korea, Taiwan and Singapore
the China Maritime Arbitration Commission's Standard Ship Building Contract published in 2011
the BIMCO NEWBUILDCON published in 2007, and
the Community of European Shipyards’ Associations 1999 form
Although, it should be recognised that these will often be subject to a significant amount of negotiation, amendments and deletions.
The main contractual terms will be found within the shipbuilding contract itself and the technical data (the specification), drawings and plans will be attached separately. The terms of the contract will prevail over the terms of
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