Page 29: of Marine News Magazine (April 2015)

Shipyard Report: Construction & Repair

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to keep a yard on schedule and may provide some relief against delays, they can also back? re by causing the yard to cut corners and rush. Very aggressive contract language and schedules complimented by hefty liquidated damages may also be enough to make even the best shipyards to walk away from quoting a project in the ? rst place. If liquidated dam- ages put you at ease, be willing to also provide incentive pay for early completion. Bonding is another layer of protection, but unlike liquidated damages, the cost is realized from the get-go. Taking the less legalistic approach and employing a skilled owner’s representative may prove to be a win-win for both the yard and owner as a more tangible investment.

REAT XPECTATIONS

G E

The end goal is for both the operator and the shipyard to end up in a good position to do business again in the future. That being said; some business just isn’t worth it.

Savvy yards will steer clear of customers who are notorious for being litigious or have a history of leading yards down a path towards ? nancial trouble, through demands, debates, or payment delays.

Shipyards are loath to turn down work due to the poor planning of operators, hence, if you need to do scheduled maintenance and repairs – then go ahead and schedule it. If you think you need a new boat for next season, don’t wait until the current season is over to secure a build slot. For new construction or major overhaul work, lead times can range from 18 months to 2 years, especially in what has been in the last ? ve years, a robust up cycle for U.S. yards. The best yard experiences begin with realistic expectations, fair contracts, and suf? cient compensation which will create a lasting partnership and ensure smooth sailing for next time.