Transcript BIMCO Standard Shipbuilding Contract

BIMCO Standard
Shipbuilding Contract
Progress Report
Tripartite Meeting
October 2005
BIMCO Standard
Shipbuilding Contract
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Background
Project Team
Project Timetable
Mission Statement
Method and Format
Structure
BIMCO Standard
Shipbuilding Contract
PROJECT TEAM
Sub-committee
Nils Gustaf Palmgren
(Chairman)
Finland
Daniel Evans
Thomas Miller
UK
A A Spyrantis
Sun Enterprises Ltd
Greece
Amund Skou
IACS
Georg Scheel
Nordisk
Norway
Rajeev Philips
INTERTANKO
Hiroshi Sugiura
NYK
Japan
James Mason
Wellington
Underwriters
UK
Zhang Ming
China Shipbuilders
China
David Taylor
International
Underwriters
Association (IUA)
Drafting Group
Nils Gustaf Palmgren
(Chairman)
Finland
Georg Scheel
Nordisk
Norway
Daniel Evans
Thomas Miller
UK
Chris Hilton
Eversheds
UK
Chris Kidd
Ince & Co
UK
BIMCO Standard
Shipbuilding Contract
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Background
Project Team
Project Timetable
Mission Statement
Method and Format
Structure
BIMCO Standard
Shipbuilding Contract
Project Timeline
Start
July 2005
Tripartite
Oct 2005
Drafting
Drafting Drafting
Group
Group Group
Sub
Sub
Committee Committee
Meeting
Meeting
Review by
Documentary
Committee
Nov 2005
Drafting
Group
Drafting
Group
Sub
Committee
Meetings
Review by
Documentary
Committee
May 2006
Tripartite
Oct 2006
Drafting
Drafting
Group
Group
Sub
Committee
Meeting
Sub
Committee
Meeting
Review by
Documentary
Committee
Nov 2006
Finish
May 2007
BIMCO Standard
Shipbuilding Contract
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Background
Project Team
Project Timetable
Mission Statement
Method and Format
Structure
BIMCO Standard
Shipbuilding Contract
MISSION STATEMENT
1. In developing a Standard Shipbuilding Contract, BIMCO’s objective is to produce a single,
comprehensive document that will be applicable to all ship types and in all jurisdictions. In addition it
will serve as a benchmark for the key provisions that should be contained in any shipbuilding contract
and will facilitate negotiation.
The Contract will build upon and not simply replicate the terms of existing contracts. It is the intention
that the Contract will be drafted with the involvement of shipowners and shipyards and with the support
of other relevant parties to produce a document that is acceptable to all.
2. Such a Contract will provide:
Clarity - so that the parties can easily identify their rights and obligations and reduce the risk of
disputes on matters of interpretation of contract terms;
Balance - so that the liabilities are equally apportioned between the parties;
Harmonisation – the use of standard wordings across the industry to help facilitate the business
process.
3. BIMCO is renowned for its extensive experience and success in creating modern, quality documents
for global use that set industry standards. Such documents may replace existing standard forms or
private contracts. It is BIMCO’s objective to maintain its position at the forefront of the development of
documentation and to further strengthen its role as the recognised leader in the development of
standard documentation for the benefit of the entire maritime industry. In this respect, it is BIMCO’s
goal to produce a standard form of contract for use in each niche of the shipping industry.
BIMCO Standard
Shipbuilding Contract
MISSION STATEMENT
1. In developing a Standard Shipbuilding Contract, BIMCO’s objective is to produce a single,
comprehensive document that will be applicable to all ship types and in all jurisdictions. In addition it
will serve as a benchmark for the key provisions that should be contained in any shipbuilding contract
and will facilitate negotiation.
1. In developing a Standard Shipbuilding Contract, BIMCO’s
objective is to produce a single, comprehensive document that
will
be applicable to all ship types and in all jurisdictions. In
The Contract will build upon and not simply replicate the terms of existing contracts. It is the intention
that the Contract
will be
drafted with
of shipowners
and shipyards
and with the support
addition
it will
serve
as the
a involvement
benchmark
for the
key provisions
that
of other relevant parties to produce a document that is acceptable to all.
should be contained in any shipbuilding contract and will facilitate
2. Such a Contract will provide:
negotiation.
Clarity - so that the parties can easily identify their rights and obligations and reduce the risk of
disputes on matters of interpretation of contract terms;
Balance - so that the liabilities are equally apportioned between the parties;
Harmonisation – the use of standard wordings across the industry to help facilitate the business
process.
The Contract will build upon and not simply replicate the terms of
existing contracts. It is the intention that the Contract will be
3. BIMCO with
is renowned
its extensive experience
success in creating
modern,
quality documents
drafted
theforinvolvement
of and
shipowners
and
shipyards
and
for global use that set industry standards. Such documents may replace existing standard forms or
with
the
support
of other
relevant
parties
document
private
contracts.
It is BIMCO’s
objective
to maintain its
position atto
the produce
forefront of theadevelopment
of
documentation and to further strengthen its role as the recognised leader in the development of
that
is acceptable to all.
standard documentation for the benefit of the entire maritime industry. In this respect, it is BIMCO’s
goal to produce a standard form of contract for use in each niche of the shipping industry.
BIMCO Standard
Shipbuilding Contract
MISSION STATEMENT
1. In developing a Standard Shipbuilding Contract, BIMCO’s objective is to produce a single,
comprehensive document that will be applicable to all ship types and in all jurisdictions. In addition it
will serve as a benchmark for the key provisions that should be contained in any shipbuilding contract
and will facilitate negotiation.
2. Such a Contract will provide:
The Contract will build upon and not simply replicate the terms of existing contracts. It is the intention
Clarity
- so that the parties can easily identify their
that the Contract will be drafted with the involvement of shipowners and shipyards and with the support
of other relevant parties to produce a document that is acceptable to all.
rights
and obligations and reduce the risk of disputes
Such a Contract will provide:
on2.Clarity
matters
of interpretation of contract terms;
- so that the parties can easily identify their rights and obligations and reduce the risk of
disputes on matters of interpretation of contract terms;
Balance
- so that the liabilities are equally
Balance - so that the liabilities are equally apportioned between the parties;
Harmonisation – the use of standard wordings across the industry to help facilitate the business
apportioned
between the parties;
process.
Harmonisation
– the use of standard wordings across
3. BIMCO is renowned for its extensive experience and success in creating modern, quality documents
for global use that set industry standards. Such documents may replace existing standard forms or
the
industry to help facilitate the business process.
private contracts. It is BIMCO’s objective to maintain its position at the forefront of the development of
documentation and to further strengthen its role as the recognised leader in the development of
standard documentation for the benefit of the entire maritime industry. In this respect, it is BIMCO’s
goal to produce a standard form of contract for use in each niche of the shipping industry.
BIMCO Standard
Shipbuilding Contract
MISSION STATEMENT
3.1. BIMCO
is renowned for its extensive experience
In developing a Standard Shipbuilding Contract, BIMCO’s objective is to produce a single,
comprehensive document that will be applicable to all ship types and in all jurisdictions. In addition it
and
success in creating modern, quality documents for
will serve as a benchmark for the key provisions that should be contained in any shipbuilding contract
and will facilitate negotiation.
global
use that set industry standards. Such
The Contract will build upon and not simply replicate the terms of existing contracts. It is the intention
documents
may replace existing standard forms or
that the Contract will be drafted with the involvement of shipowners and shipyards and with the support
of other relevant parties to produce a document that is acceptable to all.
private
contracts. It is BIMCO’s objective to maintain
Such a Contract will provide:
its2.Clarity
position
at the forefront of the development of
- so that the parties can easily identify their rights and obligations and reduce the risk of
disputes on matters of interpretation of contract terms;
documentation
and to further strengthen its role as the
Balance - so that the liabilities are equally apportioned between the parties;
Harmonisation – the use of standard wordings across the industry to help facilitate the business
recognised
leader in the development of standard
process.
documentation
for the benefit of the entire maritime
3. BIMCO is renowned for its extensive experience and success in creating modern, quality documents
for global use that set industry standards. Such documents may replace existing standard forms or
industry.
In this respect, it is BIMCO’s goal to produce
private contracts. It is BIMCO’s objective to maintain its position at the forefront of the development of
and to further strengthen its role as the recognised leader in the development of
a documentation
standard
form of contract for use in each niche of
standard documentation for the benefit of the entire maritime industry. In this respect, it is BIMCO’s
goal to produce a standard form of contract for use in each niche of the shipping industry.
the
shipping industry.
BIMCO Standard
Shipbuilding Contract
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•
•
•
•
•
Background
Project Team
Project Timetable
Mission Statement
Method and Format
Structure
BIMCO Standard
Shipbuilding Contract
SUN DRY
AN N EXES
P REAMBLE
FACTS
N EW AREAS
BIMCO
Standard Shipbuilding
Contract Draft Structure
18/10/2005 - v12
DEFIN ITION S
FIN AN CIAL
LEGAL
P RODUCTION
BIMCO Standard
Shipbuilding Contract
SUN DRY
P REAMBLE
DEFIN ITION S
AN N EXES
FACTS
N EW AREAS
Price paid
BIMCO
Standard Shipbuilding
Contract Draft Structure
18/10/2005 - v12
Adjust ment of price
I nsurance
Tax es and dues
FIN AN CIAL
Guarant ees
Escalat ion/de-escalat ion
LEGAL
Currency
Right t o set -off
I nt erest
P RODUCTION
BIMCO Standard
Shipbuilding Contract
SUN DRY
P REAMBLE
DEFIN ITION S
AN N EXES
FACTS
N EW AREAS
FIN AN CIAL
BIMCO
Standard Shipbuilding
Contract Draft Structure
Superv ision and approv als
I nspect ion
Test s and t rials
Amendment s/modificat ions
18/10/2005 - v12
Dev iat ions
LEGAL
P RODUCTION
Deliv ery
Sub-cont ract ing
Buy ers' supplied it ems
Buy ers' represent at iv e
Subst it ut ion of mat erials
Delay
Document s on deliv ery
BIMCO Standard
Shipbuilding Contract
AN N EXES
FACTS
SUN DRY
N EW AREAS
P REAMBLE
Liabilit ies
BIMCO
Standard Shipbuilding
Contract Draft Structure
Sanct ions
Remedies
Right s
Copy right s/pat ent s
Jurisdict ion and disput e resolut ion
Buy ers' default
Builders' default
Force majeure/permissable delay s
W arrant ies
Tit le
Risk
18/10/2005 - v12
DEFIN ITION S
FIN AN CIAL
LEGAL
P RODUCTION
BIMCO Standard
Shipbuilding Contract
SUN DRY
AN N EXES
FACTS
Green clauses
Green Passport
N EW AREAS
P REAMBLE
BIMCO
Standard Shipbuilding
Contract Draft Structure
18/10/2005 - v12
LEGAL
DEFIN ITION S
FIN AN CIAL
P RODUCTION
BIMCO Standard
Shipbuilding Contract
AN N EXES
Cont ract or
Nominee
Shipow ner
Cont ract ing part ies
W here built
W ho is liable
Yard
Regulat ions
Flag
SUN DRY
Class
LOA
P REAMBLE
LBP
FACTS
GT
Breadt h moulded
Loaded draft
Dimensions and charact erist ics
Propelling machinery
Descript ion of ship (Spec)
Deadw eight
BIMCO
Standard Shipbuilding
Contract Draft Structure
18/10/2005 - v12
DEFIN ITION S
FIN AN CIAL
Trial speed
Fuel consumpt ion
P RODUCTION
Yard number
M akers' list
Design
N EW AREAS
LEGAL
BIMCO Standard
Shipbuilding Contract
W ork Variat ion Form
Specificat ion
Refund gurant ees
SUN DRY
AN N EXES
Tariff for modificat ions
P REAMBLE
FACTS
N EW AREAS
LEGAL
BIMCO
Standard Shipbuilding
Contract Draft Structure
18/10/2005 - v12
DEFIN ITION S
FIN AN CIAL
P RODUCTION
BIMCO Standard
Shipbuilding Contract
Not ices
Effect iv e dat e of cont ract
SUN DRY
AN N EXES
Assignment
Opt ions
Ent ire agreement
Third part y right s
FACTS
N EW AREAS
BIMCO
Standard Shipbuilding
Contract Draft Structure
18/10/2005 - v12
P REAMBLE
DEFIN ITION S
LEGAL
FIN AN CIAL
P RODUCTION
BIMCO Standard
Shipbuilding Contract