The following Banking & Finance practice 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 the specification and the specification shall
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Admissibility of hearsay evidence in criminal proceedingsHow to identify hearsayThe definition of hearsay is contained in the Criminal Justice Act 2003 (CJA 2003). It comprises of four essential elements.There must be:•a statement•made out of court•relied on for the truth of the matter stated,
Common financial covenantsThis Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan
PRA Rulebook—introduction for the insurance and reinsurance sectorOn 29 August 2015, the Prudential Regulation Authority (PRA) published the PRA Rulebook (Rulebook). The transition from the Handbook to the Rulebook was intended to benefit PRA-authorised firms, to access clearer and more concise
Highways, street works and statutory undertakersCoronavirus (COVID-19): This Practice Note contains guidance on matters that have temporarily been altered to assist in the management of the coronavirus (COVID-19) pandemic. For further information, see: Traffic Orders Procedure (Coronavirus)
0330 161 1234