Pre-Qualification for Shipyard

Now that we are clear (actually quite only) what a ship is, the next thing we may think about is to build, charter or buy a used vessel for business or leisure (yacht) For many of us, this will only be a dream...and hope. Afterall without hope, what are we?

For newbuilding, we need to find a suitable shipyard. Next question, what is a suitable shipyard? A good practice would be a field visit. I would recommend a personal visit to the shipyard (and more visits if neccessary till I feel all is well).

The object of this exercise: to have first hand knowledge of their people, culture, facility and “just visiting” or to put it bluntly, tacit probing. I will stay for a while to pick out “signal” from yard or owner’s representatives. An impromptu visit will be the best. As you will most probably be given “VIP” treatment, do not get too swell, stay focus. If I were to choose an overseas yard, I will need to find someone who can tell me all about them and doing business in that particular country, the import, export duties and of course tax etc.
Ok…what does the book says: Due Diligence (sounds strange). It is a term used for a number of concepts involving either the performance of an investigation of a business or person, or the performance of an act within a certain standard. It can be a legal obligation, as in legal due diligence for Merger and Acquisitions purposes etc, but the term is also applicable to voluntary enquiries. [I would describe it like a doctor asking someone take off their pants for a complete medical examination]
For starters, I will review my own corporate requirements and financing capability or facilities and thereafter conduct a pre-qualification enquiry on the shipyard. This will include a formal questionnaire requesting for info on: Corporate Information, Corporate Statutory documents, Financial Information and Data, Liens, security charges (if any), Shipyard Facilities and layout, Shipyard Experience, Production Facilities, Summary of engineering capabilities, Summary of planning, capabilities, Summary of scheduling capabilities, Current Workloads , Health & Safety Records, Quality Assurance, Policy/Procedure , Arbitration or Legal Suits , Cost Overruns Record, Schedule Delays Details, Statement of Interest, References and Other Information. Hey, that’s a lot of work for now.

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