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Showing posts from August, 2011

Shipbuilding delays (Shipyard’s Perspective)

Prelude – Jubilation at the yard following the signing of Shipbuilding Contracts for a series of identical pro to-type offshore supply vessels was short-lived. A fast track; 18 months multi-million dollars fixed lump sum shipbuilding project soon degenerated into perennial delays. The aftermath: delays of more than 2 years, multi million dollars loss and goodwill dented. The causes were multifold; the results predictable and avoidable. Even though the personnel involved in the contract negotiation were highly experienced in technical and commercial matters, there was no evidence to suggest that they had the required expertise to fully comprehend legal complexity of shipbuilding contract.   Thus adequate contract risk management was overlooked.   Consequently, shipyard accepted a stringent loop-sided "adhesion" contract. Basic design was developed by Designers originally employed by the Owner. However shipyard agreed to and thus assumed full responsibility and al