Managing Shipyard Repair Contracts
Specification, bid and contract define the shipyard work. During execution, variations, tests and outstanding work must remain linked to authorised decisions and the agreed redelivery.
Operational Explanation
The contract allocates scope, price, time, responsibility, insurance, variations, tests, delivery, warranty and disputes. Preparation must start early enough for the actual project; intervals such as 6, 9 or 12 months are planning examples, not mandatory standards.
BIMCO REPAIRCON 2018 is a standard ship-repair form that can be adapted. The form, rider clauses, law and jurisdiction should be reviewed together by technical, procurement and competent advisory functions.
The working process connects each decision to evidence: the specification describes the work, the bid prices it, variations record what changes and tests show the result. This makes it possible to reconstruct what was planned and what was actually performed.
Regulatory Reference
BIMCO REPAIRCON 2018 is a contractual reference for repairs, adaptable to conversions. Signed terms, amendments, applicable law and statutory/class requirements must be examined within their respective scope; the form does not set a universal docking timeline.
In the REPAIRCON 2018 sample, clause 5(c) connects redelivery with necessary inspections and tests; the signed protocol identifies agreed work to be completed afterwards. Operational records should assign each outstanding task an owner, deadline and acceptance check. Always check amendments and riders in the signed contract. REPAIRCON 2018 sample, clause 5(c).
In the sample, 5(c)(iii) requires the yard to rectify defects at its cost before redelivery unless the owners agree that certain work may be completed afterwards. A punch list alone does not authorize deferral: document the agreement and identify outstanding work in the redelivery and acceptance protocol under 5(c)(iv).
The sample links additional work and reductions to records of changes in price and contract period. For the actual project, check the process and authority provided in the signed contract. REPAIRCON 2018, 1 and 2(a)(iii)–(iv). BIMCO: current REPAIRCON 2018 edition.
Scope of Application
Repairs and conversions placed with a yard. Internal responsibility and approval authority follow Company organization and contract; they do not universally belong to one role.
Procedure / How to Complete It
- Define scope, standards, drawings, inclusions, exclusions and acceptance criteria.
- Check yard capability, availability, subcontractors and interfaces.
- Compare bids on a common basis and clarify extra-work rates.
- Negotiate variations, delay, liability, insurance, payment, warranty and disputes.
- Define authority, records, hold points, tests and close-out.
During the work, link each discovery to the specification item: description and measured quantities, reason for the change, decision by authorised persons, cost and schedule impact. Track unresolved matters. Technical agreement that work is needed and commercial approval of the extra may require separate evidence under the contract.
Practical Example
For steel renewal, the specification defines areas, grade, tolerances, NDT, class attendance and acceptance criteria; the bid separates base scope from unit rates for added quantities found after opening.
If the area requiring renewal increases after opening, link the finding to its location and measurements, the relevant price item and the decision on the variation. At close-out, link executed quantities to inspection reports; record any outstanding work in the redelivery agreement with its subsequent verification.
What Typically Goes Wrong
Common Mistakes Mistake Library
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Extra work performed without a traceable decision | Price, quantities and schedule impact may become disputed. | Link the finding, variation and approval to the contract’s authority and process; retain the evidence. |
| Timeline presented as a standard | False assurance | Plan from the actual critical path |
| Form used without adaptation | Risks not allocated | Coordinate form, riders and applicable law |
What the PSCO Checks
Operational Tips
- Link each deliverable to an acceptance criterion.
- Define who may order and price variations.
- Close work with tests, certificates, as-built drawings and punch list.
Preparation checklist
- Scope and standards defined
- Comparable bids
- Extra rates and variations governed
- Liability and insurance checked
- Tests and close-out agreed
FAQ
Related Topics
Certified substantive revision: 13 October 2026 · page fingerprint 90341b483d3e