1 / 13

Shipbuilding & Repair Contracts

Shipbuilding & Repair Contracts. Attorney-at-Law/Partner Axel Øwre Advoco Advokatfirma DA UiO/NIFS October 20, 2010. Scope. Chapter 4 in Scandinavian Maritime Law, 2nd ed. 2004, page 83 - 106 or “Innføring i Sjørett 7 . utgave 20 10 , side 6 7 – 90 ”. Starting point. Ship

stephanyg
Download Presentation

Shipbuilding & Repair Contracts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Shipbuilding & Repair Contracts Attorney-at-Law/Partner Axel Øwre Advoco Advokatfirma DA UiO/NIFS October 20, 2010

  2. Scope • Chapter 4 in Scandinavian Maritime Law, 2nd ed. 2004, page 83 - 106 or • “Innføring i Sjørett 7. utgave 2010, side 67 – 90”

  3. Starting point Ship Management Customer 1 Financing Customer 2 ? Ship owning Company Charterer Insurance Customer 3

  4. Shipbuilding contracts Shipbuilding Contract (a sales contract) Builder/Seller (“Shipyard”) Buyer/Purchaser (“Ship owning Company”) Question 1: Just Builder & Buyer ?

  5. Shipbuilding contracts-cont’d Sales Contract Purchaser/Buyer Contractor/Seller Shipbuilding Contract Builder (“Shipyard”) 5

  6. Shipbuilding contracts-cont’d Purchaser/Buyer (Owner/Leasing Company) Bareboat Charterer Charter Party Shipbuilding Contract Builder (“Shipyard”)

  7. Shipbuilding – standard contracts • Yard friendly contracts SAJ Form – Japanese Shipbuilders. Often adjusted, but need to be adjusted to secure balance AWES Form – Association of West European Shipbuilders Norwegian standard Shipbuilding Contract [Duis p 17 – 67] • Buyer friendly contracts Few owners do have their own standard, but those who has need to be a major in order to gain accept for such a document • Agreed contracts Standard form Shipbuilding Contract 2000 – considered to be balanced Bimco’s Newbuildcon 2007. Different organized but risk wise meant to be in line with Standard form Shipbuilding Contract 2000 • Does market competition means anything for the content of a shipbuilding contract?

  8. Shipbuilding contracts-cont’d A few topics worth focusing on, apart from main dimensions and characteristics, speed, warranty of quality etc. : • Design responsibility • Buyer’s supplies • Contingency fund • Buyers representative • Security for instalments paid to the Builder by the Purchaser • Who is the Owner during the building period

  9. Shipbuilding – the future • Even more competition • Labour costs • Subsidies • Japan >> Korea >> China >> India (?) >> ? • Where – not necessarily in just one country • (In this respect and with effect as from 01.07.2009 an alteration in the Norwegian Maritime Code Section 31 went into force.) • Who sets the standard ? • Environmental requirements – need for long term strategy • Other risk factors

  10. Interested parties in additon to the Builder and the Buyer Among such parties you may find: • Contractors • Authorities • Insurance companies • Financial institutions • Charterers

  11. Repair Contracts • In general • Some basic differences regarding facts and power to negotiate when comparing with shipbuilding • Formalities – efficiencies and thoroughness; advice and decisions – who decides?

  12. Repair Contracts cont. • Standard contracts ? [Repaircon Duis p 2 – 11] • General conditions • Individual repair contracts • Scope of work sometimes more difficult to define compared with shipbuilding contracts. Why? • What about quality of work?

  13. Repair Contracts cont. • Delivery time • Price and manner of payment • Sanctions available for breach of contract • Other damages www.advoco.no

More Related