Executive Summary : Draft Shipbuilding Contract
This document provides a comprehensive analysis of a draft Shipbuilding Contract for the construction of a single Floating Production & Storage Unit (FPSO), designated as Hull No. 123. The contract outlines a detailed framework governing the relationship, responsibilities, and liabilities of the two primary parties: the BUILDER and the OWNER. Key takeaways from the contract include: Project Framework : The BUILDER is contracted to construct one FPSO vessel over a thirteen (13) month period from the contract's effective date. A critical feature is that the vessel's basis design and overall engineering support are to be provided by the OWNER. Financial Structure : The contract is based on a fixed price, payable in ten (10) distinct milestone instalments. To secure the OWNER's payments, the BUILDER is required to furnish a Performance Bond equivalent to 10% of the Contract Price upon receiving the first instalment. Risk Allocation for Delays : The ...