A Practical Guide To Yard Delivery of New Ship

A Practical Guide to Yard Delivery of New Ship
A Guide for Seafarers, Shipowners and Ship Managers
www.marineinsight.com
Table of Content
1 Introduction
A Practical Guide to Yard 2 The Contract: Shipbuilder & Purchaser

Delivery of New Ship 3 Responsibility of Owner/ Ship Manager
4 Responsibility of Takeover Team
5 Surveys, Certifications & Requirements

Authors
Bimal Roy / Anish Wankhede
Editor
6 Sea Trials
Abhishek Bhanawat / Raunek Kantharia o
Graphic Design 7 Handing Over and First Voyage
Swapna Lekshmanan
Marine Insight© About Marine Insight
“A Practical Guide To Yard Delivery Of New Ship” Since 2010, Marine Insight has been educating and guiding
people on various aspects of shipping and maritime
Publication date: Jan ’2017
industry. With the main aim of creating awareness about
Published by: Marine Insight the importance of the shipping industry to the world and
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Introduction
CHAPTER 1
Introduction
Birth of a Ship
Ship Construction Stages

checks and certifications before the vessel gets delivered
Introduction
from the yard.
The use of advanced technology, latest concepts, codes,
conventions, and regulations have kept the shipping industry
dynamic and ever-changing.
Among these, shipowners, operators and floating staff are

responsible for compliance and updates, keeping ships and
shipping industry abreast with the same.
As the shipping industry constantly upgrades itself with new

technologically advanced ships constructed and added into a
company’s fleet, the initial process of booking a shipyard and
delivering a ship has a set of procedures to ensure the ship Yard Delivery Team: Photo by - Jose Mateo S. Halagueña
received from the yard comes as promised by the manufacturer
This guide is an effort to simplify the complete process of
and does not have any shortcoming or problem.
Yard Delivery not only for the shipowner/ purchaser but
also for the seafarers, who today have to follow several
It’s the joint responsibility of ship’s staff, owners, classification
stringent regulations at port and sea. The yard delivery
society, ship operators and their superintendents to takeover
process includes many such planned steps along with
the ship from the yard, monitor, and conduct various tests,
exhaustive paperwork.
3. l Marine Insight Yard Delivery Procedure l 4.

Birth of a Ship
The decision of a shipowner/ purchaser to order new ships

from a shipyard depends on the following factors:
• Company growth in one type of fleet or expansion in

multiple fleet type
• The tonnage requirements for a particular type of trade and

size of vessel according to the same
• Current and future shipping trade scenario and projection

of global business
Once the decision has been taken to purchase a particular type

and size of a ship, a reputed shipyard is selected to complete
the construction and timely delivery of the ship to the
purchaser under a contract between them.
Following are the main phases in the ship construction process

and the average time taken to achieve the same.
Ship Construction Stages capacity. Provision for fitting important deck and engine
room machinery is made in the required blocks.
1. Signing of Contract & Designing: Contract or agreement
between the owner and the shipyard with respect to
specifications and time required for a particular ship is as
critical as it is for the purchaser to safeguard the interest of
the shipping company in case of defects or shortcomings
in the new built ship post delivery. This topic is discussed
in detail in the 2nd chapter.
Designing of ship is a separate area with its own time Ship construction: Photo by Martin Simon
requirement (it varies depending on the latest technological 4. Erection: In this phase, various blocks are brought and
features or methods required for the ship). assembled together. All the important machinery
systems (engines, deck winches, steering gear, propeller
2. Block Formation: This phase comprises of construction of etc.) are also erected. The important ship particulars
various blocks using steel plates and beams. In this stage, (LOA. Depth, draft, level of keel etc.) are then
all the piping systems are also fabricated. The fabrication measured.
goes through 500 to 600 inspections before moving to next
phase. 5. Commissioning: This is the most exhaustive phase of all,
which includes hull painting, class surveys, inspections,
3. Block and Machinery Fixing: Keel is laid in the dock and supply of provision, bridge equipment installation, sea
blocks are joined together as per the yard crane trails etc.
Factors that help in selecting a Shipyard:
• Physical characteristics
• Technical capabilities and experience
•
•
Order book and employment
Location “By carefully selecting the shipyard,
• Ability to assist financing structuring the contract to avoid conflicts,
• Reputation and references
instituting a rigorous progress monitoring
Even after shortlisting a shipyard, the owner must look into the system, and developing strict procedures to
following matters to ensure that the choice made is right in assure timely approvals and documentation, the
terms of reputation of the shipyard and timely delivery of the shipowner will greatly improve his chances of
ship:
being able to settle changes and disputes with
• Quality information the shipyard in an equitable manner.”
• Yard standard details
• Current order book
• Financial statement and bank reference
• Management plan
• Technical plan
• Major events schedule

The Contract
CHAPTER 2
Plans, Drawings and Specifications
Classifications, Regulations and

Registration
Warranties and Limitations
Extras, Additional Services and

Alterations
Insurance and Taxes
Completion Date and Payment

A shipbuilding contract can be specifically drafted as per
A contractual agreement between two parties is an owner or shipbuilder’s standard format or industry standards.
exhaustive document, which ideally should contain all the Following are the most important points of a shipbuilding
information of the agreement, payment, failure, contract explained in brief:
consequences etc. Since money involved in shipbuilding is
huge, it is imperative for the owner to know and understand
Plans, Drawings and Specifications:
the basic requirements of the contents of the agreement that
is with the shipbuilder, even when a reputed law firm or a
maritime/contractual lawyer is hired for this purpose. The shipbuilding process runs on a blueprint, which is agreed
by the shipowner and the shipyard on the type/kind of ship to
be constructed. It mainly consists of plans, drawings, and
specifications along with the tentative schedule of completion.
It is very important to go through each document and
understand the clauses attached to them. A shipowner or
purchaser can always take help of a professional naval architect
or an experienced surveyor to understand these documents in
depth.
The other important aspect of going through various

documents is to understand that shipbuilder is fulfilling the
minimum standard criteria of the flag state (which the
shipowner will opt for).
Classification, Regulations and Registration: It is also important to understand whether the payment and
fees involved with respect to the class or regulatory bodies,
The contract will also list that the vessel will be complying regulations and requirements shall be accounted by the
with all the applicable rules, regulations and requirements of shipbuilder or not.
the regulatory bodies. All such rules, regulations, and
requirements shall be complied without any conditions/ Normally the shipbuilder provides, delivers, and pays for all
recommendations. the certificates necessary for the approval of the vessel, and it
should be clearly mentioned in the contract for clarification
purpose that all documents reasonably required by the
Forums purchaser are a requirement for the registration of the vessel in
& the preferred flag state.
Organizations
The contract will also specify (and it is practiced in general)

Classification that buyer/ purchaser will bear all the expenses of registering
the vessel in the preferred flag state.
& Flag State
“C
IMO
lassification Societies, acting as alter ego to flag states,
work to meet the prescribed duties laid down under Article 94
of UNCLOS 1982.”

Warranties and Limitations: It is important that the contract includes all the services,
designs and machine parameters such as speed, fuel
The buying and selling market runs on 3 important things: consumption, length, hold capacity, tonnage etc., which the
shipbuilder will warrant. Since the breach of a warranty usually
entitles the injured party to damages, it can be problematic if a
• Quality and pricing
particular design characteristic, which is of great importance to
• Availability
a purchaser, is not included in the warrant.
• Warranty
The shipowner will choose a shipyard that can provide a

quality product at a compatible price. The time factor is an
important parameter as the business planning of the owner
will be dependent on this critical factor.
Warranties in writing guarantee that the shipbuilder will

repair or replace faulty workmanship or material for a set
period of time.
If the shipowner claims on the manufacturer's warranty and A well thought contract would ensure that the damages are
the products are replaced, he/she may still receive a new agreed to ahead of time on a sliding scale with respect to the
warranty on the replaced products. degree of deviation from the specifications.

Following are the points which can be included in the • In some cases, the manufacturer will allow its warranty to
contract for purchaser’s legal rights: flow through to the purchaser and in other cases, the
warranty must be assigned or enforced by the builder for
• Indicate who will bear the cost of bringing the ship to the benefit of the purchaser
shipyard if the ship got stranded due to breakdown in a
distant location • For expensive items, the question of transferability of
warranties should be reviewed ahead of time with the
• Indicate if the shipyard is willing to bear the cost of repair manufacturer before a commitment is made to purchase
or to grant an allowance to owner if the repair is taking the item
place in different ship repair yard
• Check if the shipbuilders included to limit their liability Since the cost of repairs is often quite high at remote locations,
with respect to equipment manufactured by others, these provisions are not always satisfactory to the purchaser.
unless the failure of that equipment was caused by
improper installation by the builder
• In the case of a builder having to actually enforce a Most shipbuilding contracts also contain a clause excluding
warranty for the benefit of a purchaser, the contract liability for indirect damages and consequential losses. From
should state who will pay the total expenses of such the perspective of the shipbuilder (and his insurers), this is a
activities very important provision.

Extras, Additional Services and Alterations: Following points must be clarified in the contract:
The clarification for the payment or cost of an extra item, • If the shipyard has provided any additional item during the
service or any alteration done while the ship is in shipyard, is construction of vessel, contract should be clear enough to
an important point which should be clearly written in the understand if this extra item will be priced additionally out
contract. of the pocket of the purchaser or it will be treated as under
fixed price of the contract
• For the benefit of purchaser and builder, there should be a

clause in the agreement to continue the work in a disputed
situation agreeing to sort out the problem at a later time by
either arbitration or litigation
• If the shipyard does not have such an agreement and the

purchaser refuses to make an agreement at the time the
dispute arises, the shipyard may lose its right to later claim
the item as an extra, even if it does the work under protest
• Hence from a shipyard’s perspective, it is advisable to have

a clause that allows disputes over use of an extra item,
which can later be resolved by a way of arbitration

after completion of the project • For contracts stating that extras are to be paid on a “cost
plus” basis, it is useful to stipulate whether this includes
any cost for items such as overhead and labor cost, and
what the mark up will be on materials
• Contract should mention if both the parties decide to

litigate or arbitrate the value of an extra item. A detailed
time record should be kept for each worker that allows the
shipyard to identify and quantify work done as extras.
Apart from this, the materials and other items used to
perform the “extra” work must be recorded
• It is important that the contract clearly mentions who will

be authorized to order for extra work and items as the
shipbuilding process in the shipyard will be under
• Contract should clearly indicate mode, amount or rate inspection from surveyor and classification bodies, who
applicable for payment when any alteration is required may order such extra work. If it is not mentioned in the
for a system or part of the vessel apart from the original contract, a letter of authorization should be provided by
decided plans, drawings and specifications. It should the owner authorizing surveyor, or class representative to
cover the extended time to complete the alteration work order any extra work or item which will benefit the existing
with penalties, if any, and offhire charges building process

• It may happen that the bigger sections/ parts of the ship
are outsourced by the builder and agreed to be made in a
low cost country by the buyer to reduce the overall
shipbuilding cost. In such cases, the shipbuilder shall
remain fully liable for the due performance of such work
as if done by the builder at the builder's yard and the
contract should clearly clarify such point
Except as otherwise stipulated in the specifications and the

"Maker's List" or agreed in writing, the builder may, without
interference from the buyer, freely choose its subcontractors,
but the builder shall in ample time notify the buyer in writing
before placing major orders for equipment or services with
subcontractors, and shall give reasonable consideration to
buyer's request.
Any opinion or request made by the buyer entails no alteration

of the builder's obligation and liability under the contract.

Insurance and Taxes: the shipbuilder is tied in, before going into a contract with the
shipbuilder. The contract will include the insurance policy of
Insurance the shipbuilder and all the benefits the shipbuilder and the
buyer will have in case of any mishap during the time of ship
It is an important feature of any new shipbuilding order. It construction.
needs to be understood by the buyer what insurance policy
The contract should also indicate the liability of the
shipbuilder if there is any damage to the ship during sea trials
out at sea.
It is best to have the shipyard review any proposed provisions

regarding insurance coverage with its broker prior to entering
any contract. Otherwise, it may find itself unable to obtain the
type of coverage it contractually bound itself to provide.
In general, till the handing over of the ship to the owner is

done, the shipbuilder will bear the risk of any loss or damage
to the vessel, materials, parts, machinery, and equipment
under the insurance policy.
Following are some important points which need to be

checked in the contract in terms of insurance: • It is to be clarified if the insurance covers the
amount to reorder the buyer supplies in case of any
• Insurance should clearly describe who will pay the mishap
insurance company for the policy taken for the
new ship • The insurance policy paper should be in the joint
name of builder and the buyer
• It should clearly mention whether the policy
includes the supplies provided by the buyer to • It has to be clarified that builder will not raise any
shipbuilder demand for shipyard losses other than those related
to the buyer’s constructed ship
• It should have clear mention of underwriters
acceptable to the buyer on customary "All Risk" • The proceeds recovered under the insurance
terms policies shall be applied to repairs satisfactory to the
class and regulatory bodies, and the buyer shall
• The insurance must contain the necessary fire and accept the vessel under the contract if completed
transport insurance of material and equipment thereafter in compliance with the contract
which the builder will procure from subcontractors
• It should clearly mention if the builder is obliged/

not obliged to insure the transport of buyer's
supplies

Taxes Apart from adhering to the local tax law, the contract should
also specify whether:
Unless a purchaser qualifies for some exemption, both
provincial and federal sales tax is payable upon the purchase • The builder shall bear and pay all the taxes as per the
of a new ship and it will entirely depend on the country’s country of building in accordance with the execution and
local taxation law. completion of contract
• The buyer’s supplies for building the ship may also be

exposed to local taxation which should be clarified in the
contract. Normally the buyer will bear this cost
• The buyer shall bear and pay all taxes and duties imposed
outside the country of the builder in connection with the
execution and/or performance of the contract, except for
taxes and duties imposed upon those items to be procured
by the builder for the construction of the vessel
• Any tax benefits or exemptions should be computed while

calculating total taxes applicable and appropriately
provided to the buyers or shipbuilders as stated in local tax
laws

Completion Date and Payment: Although shipyards are generally very reluctant to allow a
purchaser to terminate a contract for late delivery, they will
Completion date often agree to a provision allowing the purchaser to take
possession of the vessel (after reasonable notice of its intention
A shipyard works under the local laws of the country, which to do so) and have it completed by another shipyard.
will have its calendar of holidays and its own labor union.
It may happen that the shipyard will not operate due to Such provisions will also usually reserve the right of the
various reasons, which may cause delay in the project purchaser to make a claim against the original shipbuilder for
completion time. the extra costs associated with having the ship completed by
another yard.
The contract should include the date of completion and if
the buyer’s requirement insists the importance of completion
date, it is recommended to include a late completion date
and penalties, if any.
If it is important for a purchaser to have a ship completed by

a certain date, it is advised to include a clause of liquidated
damages in the contract, specifying the per diem penalty for
late delivery.
If this clause is demanded in the contract, the shipyard will

normally exchange it for a clause bonus for early delivery. Delivery Celebration - Photo by – Yasir Elfadil
Payment • Clause for retaining the vessel if buyer does not make the
payment or to deliver the vessel under bank guarantee of
The contract should have following details to make the the payment from the buyer
payment process smooth without any friction and litigation:
• Clause for handing over of the vessel in time if the builder
• Total contract price in specified currency: the contract is unable to process the final account at the time of
should mention the total agreed price from both the delivery. The costing should be settled under bank
parties and the currency in which the payment will be guarantee
done
Important examples of Payment Dispute Claims (from real
• Installments and method of payment: Various contracts):
installments with amount, which need to be paid by the
buyer at regular intervals of time
• Notice of the installments payable on delivery and

“I n the event of any dispute concerning the payment on
acceptance shall include notice of adjustments, if any delivery of the vessel, including the question of the buyer's right
to offset any claim it may have, the buyer may be paying the
• A refund guarantee by the builder for the installment entire amount demanded by the builder, who is required to
paid by the buyer in case of cancellation of contract by provide a bank guarantee or other security satisfactory to the
the builder buyer for the disputed amount. The builder cannot in such
case refuse to deliver the vessel.”

If the builder does not wish to issue security for the disputed vessel against payment of the undisputed amount and provide
part of the claim, the buyer is entitled to take delivery of the a bank guarantee or other security satisfactory to the builder
for the disputed part of the claim. The costs of security shall be
shared proportionately between the parties according to the
outcome of the dispute.
If on or before the delivery and acceptance of the vessel, the

builder is declared bankrupt or enters into a fund or a formal
composition arrangement or moratorium, or otherwise proves
to be in such a financial position that it is likely to be unable to
perform its obligations during the guarantee period, then the
buyer may demand that the builder shall provide satisfactory
security for the performance of such guaranteed obligations,
limited to 1% of the original contract price. On failing such
guarantee, the buyer is entitled to deposit the equivalent
amount in an escrow account in the joint name of the builder
and the buyer, and to deduct this amount from the installment
to be paid on delivery and acceptance of the vessel.
The ship builder may also require an alteration of the payment

schedule so as to allow for early payment for extras.

Responsibility Of Owner / Ship Manager
CHAPTER 3
Selection of Flag State
Selection of Classification
Society
Selection of Takeover Crew
Arrangement for Surveys

Selection of Flag State: There are multiple flag state options available and the owner
can choose the one, which suffices her/his financial as well as
statutory requirements, considering the flag state accepts the
The selection of flag state is an important decision for the type of ship as some flag states have eligibility criteria in terms
owner to ensure his business gets a positive response from the of ship type and age (applicable for resale ship).
market.
Following are some important points to be considered while
choosing and registering the ship to a flag state:
• Check if the name of the vessel that the owner wants is

available with the flag administration as same name cannot
be used under one flag
* Pro Tip: While the ship is under construction or even before

ordering the ship, the desired flag state can be contacted to
reserve the name of the ship; some may ask for a reservation
fee.
• Check if the ship is fulfilling the eligibility criteria, in terms

of type of ship or age (NA to new build)
Panama Flag Vessel: Photo by – Ishu Tiwari
• If the owner has a preference for selection of the Selection of Classification Society:
classification society, check with the flag state if the
desired classification society is on the list of approved Classification societies are independent commercial
societies for the concerned flag organisations, which work in conjunction with the shipyards,
shipowners, flag state authorities and insurance companies to
• For selecting a flag state, the cost factor will comprise of ensure that ship is constructed and certified as per the
initial cost of registration, continuing annual cost of minimum requirements laid down by IMO.
registration and cost of compliance with various
regulations of flag state It can be said that the most important objective of a
classification society is to ensure the safety of life and property
• The buyer must thoroughly understand and ensure that at sea by following a definite protocol for technical standards
flag state regulations are in line with important Maritime while the ship is being constructed or plying at high seas, or for
Regulations such as SOLAS, MARPOL etc. and has a all the businesses related to shipping.
good record of enforcing all the regulations
As per the IACS (International Association of Classification
• The buyer must ensure that the country, which the flag Society), the main functions of a Classification society are:
state represents, is politically stable
• A technical review of the design plans and related
documents for a new vessel to verify compliance with the
applicable rules and regulations

• Attendance in the shipyard during construction of the • Attendance by a classification society surveyor(s) at the
vessel by a classification society surveyor(s) to verify that relevant production facilities that provide key components
the vessel is constructed in accordance with the approved such as steel, engine, generators and castings to verify that
design plans and classification rules the component conforms to the applicable rule
requirements
• Attendance by a classification society surveyor(s) at the sea

trials and other trials relating to the vessel and its
equipment prior to delivery for conforming with the
applicable rule requirements
• Upon satisfactory completion of the above, the builder’s/

shipowner’s request for the issuance of a class certificate
will be considered by the relevant classification society and
if deemed satisfactory, the assignment of class may be
approved and a certificate will be issued
• Once the ship is in service, the owner must submit the

vessel to a clearly specified program of periodical class
surveys, carried out onboard the vessel to verify that the
ship continues to meet the relevant rule requirements for
continuation of class
43. l Marine Insight Class Surveyor in Yard : Photo by - Marhaban Yard Delivery Procedure l 44.
The importance of classification society to shipowners: A flag state appoints a recognized classification society on its
behalf to conduct the flag state surveys prior issuing flag state
1. Flag state recognition: Majority of the recognized flag states certificates and endorsing survey reports which are mandatory
are bound to various maritime regulations under the for vessel trading.
conventions drafted by IMO, which includes MARPOL,
SOLAS, Load Line convention etc. As per SOLAS, a ship 2. Insurance: Insurance companies are the savior for
can only get a SOLAS certificate if it is “in-class” as shipowners in case of any mishap, loss, or accidents. The
accordance with a classification society. insurance company will select a ship for insurance or decide
the premium of insurance taking these factors related to
It clearly means that the flag state recognition and classification classification society into consideration:
society certification are interrelated and equally important.
Without the classification society recognition, a ship will not • The reputation of the classification society
able to ply in international waters.
• The class rating assigned by the classification society to the
Each flag state has a list of recognized classification societies ship
from which a shipowner can opt for his/her ship.
• Remarks, non-compliance and previous annual survey
The intention is to delegate the requirement and statutory reports by the classification society
duties of the flag state to its recognized classification society to
ensure that the ship is complying with all the required In case of accident or damage to ship or its machinery, the
conventions, regulations, and protocols. class surveyor will play an important role in providing a
detailed report to the insurance company for claims.
3. Safety of ship and onboard crew: With the set of surveys Selection of Crew for Takeover:
which are put “in-line” by the classification society and
regulatory authorities, the surveyors will check all the Once the contract is signed with the shipyard and the flag state
important aspects of ship, which contribute to safety of crew and classification society is selected for the ship, the next
and ship at high seas. important step for the owner or its representative (a ship
management company) is to recruit an experienced staff that
In case of any major deficiency, the class surveyor can give a can take the delivery of the vessel from the shipyard.
notice to the ship and its owner by putting a condition of class
or even cancel the class certification which will again make the Following things are to be kept in mind when the ship
ship unfit to sail. management company/owner is selecting the takeover crew:
• Ensure that all the employees i.e. officers & crew signs the
Article of Agreement (AOA) and official log book as it is a
flag state requirement
• Passports, CDCs and visas of the officers & crew should be

collected, checked, validated, and kept (Check the validity
of Yellow fever certificate)
• Crew documents –check validity of certificates (licenses)

and endorsements of officers and crew as per STCW’95
• Required officers have GMDSS certificates • Safe Manning Certificate – Check minimum manning
against on-signers
• Pre-joining medical report and drug & alcohol (D&A)
declaration received When?
• Acceptance of the terms and conditions of employment The general practice for the ship management or shipowner is
by the taking-over crew to send the takeover crew 30 to 60 days before the formal
delivery of the ship.
• Crew list (needed for sailing) is prepared and copy of it is
kept in office The time to send the crew will vary depending upon the
experience of the ship staff, the type of ship and different
certification requirements for that type of ship. Hence, the
selection procedure will start well ahead of this.
How?
The company must apply and get a valid visa for the takeover
crew as they will be working and residing in the particular
country for minimum of 30 days.
Manning Ranks: Photo by – Ravish Rishishwar

The visa should be taken for 3-4 months considering a buffer
period in case of delay.
For taking over of the vessel, only a few seafarers are sent The general practice is to send management level officers from
which may include: both the departments. Along with them, a rating (for general
understanding of the ship and its operation) can be sent
depending upon the company’s decision.
• Chief engineer
The recruitment of the takeover crew mainly depends on the
• 2nd Engineer
experience of the seafarers and if they have carried out any
such operations in the past.
• Master
• Chief officer
• Fitter
The rank of the selected crew may vary as an eligible and

experienced 2nd engineer can also overlook all the engine
room operations and requirements without needing the chief
engineer or vice versa.
Similarly, only master may be sent to shipyard, without chief

officer or any additional deck officer.
The Takeover Crew: Photo by – Yanci Segovia
51. l Marine Insight Class Surveyor in Yard: Photo by - Marhaban Yard Delivery Procedure l 52.
Stay: It is the responsibility of the company to provide food/ meals
to its employees by either providing food coupons or
Since the takeover crew is going on an advance time of 30—60 compensating them on per day basis. The transport of the
days, they cannot use the accommodation of the vessel as it crew from residence to shipyard must also be arranged by the
will not have the necessary resources for people to stay. owner or the shipyard.
The company or the owner has to arrange for the Once the sea-trials are scheduled with the takeover team of
accommodation of the complete takeover crew in the nearest seafarers, the crew may shift to vessel accommodation
hotel or in any similar residential facility. depending upon the results of the sea trials.
Ship Accommodation
Arrangement for survey: the shipyard but it is advisable that the owner/ purchaser also
surveys the construction process using a third party.
As stated earlier, the ship under commissioning stage
undergoes several surveys, which are not only performed by This will help the owner/manager to manage the risks
associated with construction of the new ship as the
construction process will be completely monitored by the
surveyor hired by them.
The critical areas can be identified at the design stage to ensure

that the new vessel complies with the appropriate rules and
regulations and is completed with minimal interruptions to the
production schedule.
The owner/ manager can either hire a reputed third party

surveyor or the classification society already opted for (Many
classification societies provide other add-on services, which
includes the survey during the construction process).
Ship Construction: Photo by - Arturo R. Zea

The benefit of using the classification society is that the The other way to keep a track of the entire shipbuilding
surveyor and the class organization will have the complete data process is to hire and place any knowledgeable personnel
of the ship while providing the classification certificate. (marine engineer or independent shipyard engineer) as a
representative of the owner in the shipyard.
He/she can be present during the entire construction process,

monitoring the operation at ground level. This representative
will be the one point contact between the owner and the
shipyard. The takeover crew will contact the representative for
any discrepancies or approvals required in the shipyard.
Vessel Construction Inspection

Vessel Hull/ propeller Inspection: Photo by- Andrew Robson
Responsibility of Takeover Crew
CHAPTER 4
Responsibility of Crew before
Joining Yard
Responsibility of Crew in
Shipyard
Duties of Deck Officers
Duties of Engineer Officers
Important Checks by Takeover

Crew
Responsibilities Before Joining the Ship: • Before delivery of ship, there will be sea trials and checks
of all equipment and systems
The responsibilities of seafarers, who are going to take the • Obtain details and emergency contacts of owner/managers
yard delivery of the vessel, must be thoroughly discussed with and hull and machinery (H&M) policy and reporting
the ship management team located at shore. requirements of charterers
To avoid making this process tedious and complicated, the

deck and engine departments’ in-charge are provided with
separate responsibilities and duties, for taking over of the
vessel with utmost safety.
Following are the important preparatory points which the

takeover crew must go through:
• Go to the company office for briefing as per the SMS
• Obtain yard delivery and taking over check-list from Company Briefing
company’s office. Discuss various aspects and • The crew must understand and prepare for the
procedures provided in them with safety/technical communication (verbal & non-verbal) and cultural
superintendents, if required dimensions/diversity for the country where the shipyard is
located
• Ask for project, progress, follow-up and reporting, punch
list etc.
• The crew should understand how company is managing
the design approval and equipment acceptance at
various site inspections
• Understand surveys which happen at different stages:
 FAT (Factory Acceptance Test)

 HAT (Harbor Acceptance Test)
 SAT (Sea Acceptance Test)
• Check who will be the head/ in-charge for approving in
yard – either from takeover team or another company
representative (superintendent etc.)
Factory Test: FAT
• The takeover crew and the company office together
should do risk assessment through identification,
evaluation, and mitigation of previous accidents or
“ Test report (under various stages) can be accepted or
incidents happened in the shipyard rejected by the surveyor while checking the performance
of system during operating conditions.”
Additional responsibilities of Deck and Engine department • Ask for “Taking Over” checklist from the company and go
before joining the ship in yard: through it to understand the requirements
• The deck officer and engineer who are made in-charge • Understand which machinery and systems are tested under
of their respective department (Master or Chief officer factory acceptance and shipyard acceptance tests
and 2nd Engineer or Chief Engineer), and those who are
part of takeover team must go to the office for briefing as • Understand the sea acceptance of various ship machinery
per company SMS and system that the ship crew will be performing in the sea
trials with yard crew
• Apart from general briefing, he/she should understand
all the important design aspects of engine room and deck
machinery/ systems being installed on the newly
constructed vessel
• If any new technology is implemented on the vessel, or if

the deck/ engineer officer has not experienced a new
system, he/she must take a brief introduction and ask for
manual or training from the company
• Ask for “Yard Delivery Checklist” from the company

and go through it to understand the requirements
Yard Delivery Company Crew: Photo by- Sudhir Dixit

Responsibility of Ship’s Crew in Yard:
The shipyard is a form of factory where fabrication is a

continuous process. You will see all types of high risk jobs such
as welding, cutting, grinding, hydro blasting etc. taking place
within one real estate.
Yard Delivery Company Training
“It's important for the owner/ship

managers to train the crew regarding the
equipment/ system which has new features
to ensure that the yard delivery operation
can run smoothly”
Shipyard View
Once the takeover crew arrives to the country where the Most of the shipyards operate during the day within fixed
shipyard is based, they are first escorted to their timing. Once the takeover crew arrives at the shipyard for first
accommodation. time, they should do the following things:
The ship crew then meets the owner’s representative, who • Ensure everyone has the necessary personal protective
can be: equipment
• Company superintendent
• Company appointed yard engineer
• A third party appointment (e.g. classification society

shipyard service)
The owner’s representative will ensure that the construction

process is as per the regulatory requirements and on time.
He/she will also provide the information on the latest

timeline and situation of the under construction ship and on
which areas the takeover team should concentrate more.
PPE in Yard: Photo by- CEPhoto, Uwe Aranas
• The senior most officer must take initiative to brief on • Understand various safety protocols and safe working
the safe working practice and hazards related to shipyard practices with the shipyard representative
• Before going to the ship building site, visit the yard office • Discuss with the shipyard representative how the yard
and meet the shipyard representative and team heads team is carrying out hazard identification, assessment and
responsible for construction of the ship control in the yard
• Inform yard team about the crew’s readiness to participate

in emergency preparedness and response drills, if
conducted by the shipyard for the yard crew
• Understand the fire fighting equipment provided in the

shipyard and alarm signals used for emergency
• Check for emergency exits or muster stations
It is difficult for the small team of takeover crew to keep a

track of each and every record of the work that is taking place
on the under-construction ship as the yard deploys multiple
teams and individuals to carry out different jobs.
Yard Office

As the main job of the takeover crew is to ensure that the This meeting should be attended by the following members:
machinery and systems are working and functioning as
promised and are according to the contract, the safety and • The takeover ship officers
emergency devices should also be checked for their limits,
specifications, functioning, operations and standards. • The owner representative in yard
The most effective way (generally followed in shipyards) for • Ship repair manager representing yard
the takeover team is to have a daily Safety and Progressive
meeting to get the updates on yard construction operation. • Yard and company subcontractors (if any)
• Yard safety officer and important safety staffs
• Other yard supervisors involved with construction of ship
The following discussions to be carried out in this meeting:
• The progress of ship construction and time line

management
• Coordination among the yard, contractors and seafarers to

ensure safe working conditions and job progress

• Review all safety and work permits, which have been • Identify the pipes and valves which are to be dismantled in
issued areas where people are working. Marking and securing the
area to be done to avoid fall and trips
• Review safety and work permits, which need to be issued
during the day • The shipyard must inform the takeover crew about any x-
ray, ultrasonic or hydrostatic testing which have to be done
• Discuss any violation of safety measures noticed during during the day
the previous days and identify the cause of the incident
and the action to be taken to prevent reoccurrence • Review own or other vessel movements that could impact
on safety or progress of the repairs
• Resolve the existing conflicts between different parties to
ensure safe and smooth operation • Review all systems and equipment tests and coordinate
• Identify the location and take extra precaution where hull

blasting and hull painting are carried out
• Identify the location and take extra precaution where

welding and hot work need to be carried out
• Identify the location and take extra precaution where

heavy lift operations are carried out
Checks with Shipyard Representative
The ship crew must distribute their work among the team • Discuss and enhance the approach to yard site for
members and at the end of the day, should have a formal inspections
meeting to:
• Understand the practices and principles of commissioning
• Understand the work progress and efficiency of the work by discussing each other’s experience throughout the
operation day
• Discuss the recorded or witnessed dock test performed • Develop updated guidelines on commissioning procedures
by the yard crew on any machinery or system
• Identify other potential cost effective alternatives to
inspections and tests
• Apply new methods and procedures for investigating

outstanding works
• Discuss compliance, safety and environmental

performances
• Discuss technical questions related to construction and

tests, which will help fellow crew members
Ship in Yard: Photo by- Andrew Robson

Duties of Deck Officers in Shipyard: • Check for Aerial / Antenna plan and if it is not done,
prepare and post the same in wheelhouse
Deck officers, as a part of takeover team, should ensure that
all the deck equipment and fittings are as per the blueprint. • Check and ensure all the GMDSS and other
communication equipment are installed as per the
The deck officer shall consult his/her fellow engine officer requirement and blueprint
for technical understanding and shortcoming of deck
machinery and equipment.
Bridge Equipment Checks:
• Do a bridge familiarization to understand the location

and equipment provided
• Check the off-course alarms and differences between

gyro, main and spare magnetic compasses for deviations.
Officer should try and figure out compass adjustment
techniques
• Check the posted maneuvering information in the bridge

i.e. wheelhouse poster
Bridge Equipment Inspection: Photo by- Pascal Rheaume

• Inclinometers fitted on the bridge should be verified for • Rudder angle indicators, repeaters for Gyro compass,
their accuracy Engine RPM indicators, Doppler log, EPIRB, SART,
VDR locations and fittings should be checked with the
bridge layout plan
Inclinometer: Photo by- Edwin Maluenda
• Check and record the spares provided for the bridge

Indicators : Photo by- Al-Shehihi
equipment
• If any bridge equipment is not functioning or installed,
• Ship Security Alarm System (SSAS) buttons should be same has to be informed to the company representative,
checked for their location and modes of operation who will raise this issue with the yard representative
Bridge manuals and publications check: • Check the compass deviation card for its accessibility and
errors. If the deviation exceeds 5 degree, request company
• Check the charts & status of correction provided yard representative to arrange for compass adjuster
• Check the pilot card to verify the ship particulars and

details are filled correctly
• Ensure all the manuals of bridge equipment areChecking

providedCompass

• The language of the manuals should be in English • Ensure all the mandatory publications are present on the
bridge. For this, a customised list for the type of vessels e.g.
• Check the test procedure for navigation and signal lights bulk carriers, chemical tankers, oil tankers, container ships
along with operation of lights and panel as necessary etc. can be used to ensure none of the publication is
missing
• Ensure all the important drawings and display posters are
available on bridge • Check GMDSS maintenance plan certificate is provided.
VDR & SVDR saving & recording procedures are
understood, HDD for data recording is in order and
working. Alarm codes are displayed and understood.
DRU units are in place and secured as per requirements
• Check ECDIS interfaces with various sensors and inputs

are functional and in place
• Check that the certificate of service and chart, and the

corrections supplied from the chart distributor are valid
and posted on bridge. The supplier should be approved
by UKHO as well
• Check distress instructions are posted in the required

Bridge Posters/ Drawing: Photo by – Bassam Kawgy locations on bridge
• Ensure weather/ meteorological equipment are installed • Window wipers, bridge window heaters, communication
and their spares are provided (barograph paper, systems between bridge, E/R and various other locations to
thermometer, vick & container, met. log book, coding be checked
decoding book, etc.)
• Normally the vendor, who manufactures and installs the

equipment will also be responsible for testing, hence ask
for the test procedure performed on the GMDSS
equipment, including battery on load tests,
commissioning of GMDSS equipment, EPIRB
registration etc. Ship’s officers should verify particulars
and name of the vessel
• Check master clock, GPS and Doppler log inputs to Bridge Window Wipers: Photo Credit- Abin Babu
various GMDSS equipment, Radar and ARPA , ECDIS,
echo sounder, AIS , ODME panel, SSAS and other • Important posters such as maximum anchoring depth
equipment chart, radar blind zones, height of eye table, relative
humidity chart, compass deviation curve, steering gear
• Anemometers, wet and dry thermometers, sextant, diagram, ship particulars, mooring diagram, muster lists,
chronometers, azimuth circles and other equipment for emergency signals, emergency contact information ,
navigation to be checked and provided by the yard manoeuvring characteristics etc. must be available

• Check the functioning and installation of radar and Checks on Deck Equipment:
concerned equipment
• Check installation and working of steering gear
• Check operation of emergency steering gear
Ship Radar Mast: Photo Credit- Wikimedia
• Ensure GMDSS maintenance plan certificate is provided Steering gear
• Check installation and working of mooring winches,

anchor windlass and other related equipment

• Check the test report of windlass and mooring winches • Check the accommodation/ gangway ladder motor
(break test, load test, lifting speed test etc.) functioning and installation
• Check the test results of static weight test for

accommodation ladder
• Check the installation and functioning of ship cargo crane
Windlass: Photo by- Abhishek Bhanawat
• Check for any hydraulic doors provided in the ship side

Ship Crane: Photo by- Ahmed Khan

• Check the manufacturer’s test report of bow thruster and • Check the yard test reports of all the deck machinery
podded propulsion system
• Check the installation and functioning of ship cargo
hatches and covers
• Ask the yard supervisor to demonstrate proper ballast

water system tightness and pump operations by pumping
and taking suction from the ballast tanks
Checks for cargo equipment and manuals :
• Ensure Cargo Securing Manual (CSM) and related

Podded propulsion system:: Photo by- Felipe Santos
securing equipment are provided
• Check the ballast line, pumps etc. are installed as per the
blueprint and are in perfectly working condition • All securing equipment are checked for quantity, type and
condition
• Check working and installation of ODME in tankers are
as per the regulation. Also, feed of GPS position, ship’s • Cargo, ballast & fuel ullage tables are supplied to the ship
speed and UTC time to be verified
• Check the installation and working of cargo pumps, cargo
• Check all the other deck equipment for their operation lines and other cargo related equipment
and installation
• Load and stress distribution plan is provided • Ensure damage stability booklet, ship structure access
manual, approved loading conditions, damage control
• The loadicator is tested to see if test conditions match plans are provided or compiled and approved with all
results with that of the loading manual required data (for e.g. Stability & Hydrostatic data)
• Shipboard oil pollution emergency plan(SOPEP) or • Inert Gas Manual – for tankers and combination carriers
shipboard marine pollution emergency plan(SMPEP) is
provided and approved, endorsed by Class • Crude Oil washing (COW) Manual – for tankers and
combination carriers
• Oil Discharge Monitoring Equipment (ODME) manual –

for tankers and combination carriers
• Clean Ballast Tanker (CBT) manual – for tankers with

CBT
• Ensure the Ballast Water Management Plan is as per the

regulatory requirement
• Ensure all the required manuals and papers are endorsed

by class for name and flag
Ship Loadicator: Photo by- Abhishek Bhanawat
Duties of Engine Officers in Shipyard: supervision of engineer officer who needs to perform the
following checks:
The engineers responsible for yard delivery of the ship have
to carry out a number of checks for installation and operation Engine room machinery:
of various ship’s machinery.
• Check the test bed trails report of the marine engine and
associated plant machinery and system. The test must
prove the functionality of the plant and associated auxiliary
systems
Engine Room Platform in Yard
The complete engine room machinery comes under the

Engine Installation in
96. l Marine Insight Yard Yard Delivery Procedure l 97.
• Check all the yard delivery trails of various engine room • Check the reduction gear test report, which will be used as
and deck machinery a reference in sea trials
• Check the yard test reports of the refrigeration system for

leak test, cooling test, insulation test, brine piping test etc.
Various Engine Room Machinery
• Ensure the internal combustion engine components are

hydraulically tested by the manufacturer by asking for the
record from the yard
Leak Test of Reefer System

• Check the provision of redundant propulsion system • Ensure to check the report of shafting alignment and
provided in the ship is as per the requirement torsional vibration of marine propulsion system which will
be used as a reference in sea trials
• Perform a visual inspection of pad eyes in the engine
room
* Shipyards may not have shafting alignment test but they do it
as an inspection. It is always recommended to keep the
shafting alignment as a part of a quality inspection process.
Pad Eyes in Engine Room Intermediate Shaft

• Check the hydraulic pressure testing report of ship’s
boiler
Pad Eyes in Engine Room
• Check the pressure testing reports of bunker and cargo

piping system
• Check the steering and rudder systems
• Ask the yard supervisor to demonstrate proper system

installation and operations, including all controls and
safety devices of machinery seawater cooling system, lube
oil system, starting air and control air system, steam
system etc. Demonstration by Yard to Takeover Crew
Electrical Checks: • Check report of the test that verifies the effectiveness of
grounding of non-current carrying exposed metal parts of
• Check report of the test which verifies the effectiveness of electrical equipment
grounding continuity conductor
• Check with the yard that all the joints, connections, circuit
• Check the provision provided to ensure the bonding for breakers are compliant with respect to temperature
the control of static electricity (e.g. propeller shaft
grounding)
Air Circuit Breaker

Grounding of Propeller Shaft
• All essential electric motors and equipment which can be • Check the test report of insulation resistance of various
started in the yard should be operationally checked machinery
including standby machinery
• Check the date of the test performed as an old date may
require additional insulation resistance (IR) test on that
system
Testing Standby Pump
• Check the test reports of installed transformer Insulation Resistance Test

• Check test results of dielectric insulation tests on all • Ensure that a power frequency voltage test has been
propulsion cables, other than internal wirings carried out on high voltage switchgear and control gear
• Ensure high voltage cables are tested by supplying a DC • Check if all the cables with terminations and splices have
voltage 4 times the rated voltage for 15 minutes been subjected to a voltage test after installation
• Check if the installed main, emergency, and distribution

switchboards that are put into service have their insulation
resistance not less than 1 MW
• Check the arrangement of emergency power supply
• Ensure testing of motor operated valves should commence

after flushes and hydrostatic testing is completed for a
particular system
• Check the test report of insulation resistance of various

machinery
Testing Standby Pump
Testing Voltage

Checks by Seafarer Takeover Team: Fixed fire fighting installation:
• Prior to sea trials, demonstrate proper system installation

There are several checks, inspections and tests that need to
and operations, including all controls and safety devices.
be done by deck and engine officers together. Important
Cylinders are to be weighed and recharged if weight loss
points are listed below:
exceeds 10% of normal charged weight
Lifeboat/Life raft:
• The lifeboat davit test procedure could be combined

with the rescue boat handling and lifeboat operations test
procedures. Life rafts HRU and other mechanism
should also be checked
Check on CO2 FF System

Lifeboat in yard
• Verify required service pressures at distant points in the • Perform fire detection system testing before sea trials
system. During trials, operational test of the foam system
for each covered zone to be performed Automation/ Control Checks:
• Operational checks of general alarms are also to be The modern ship is filled with hundreds of automations and
performed control systems, whose installation should be checked by the
takeover team to ensure the shipyard has provided systems as
Fire detection system: promised.
• Confirm operational abilities of ship’s fire/smoke

detection systems
Controls in ECR
The main operation of all control and automation of the ship

Fire Alarm System
systems is tested in sea trials.
Inert gas system in tankers: Elevator:
Ship alarm system: A test procedure should address Check the functioning of elevator including brakes and wires.
operational checks of contactors, bells and lights before
Dock Trials/Sea Trials. Pipes testing:
During the production process, all piping systems must be

hydrostatically or pneumatically tested to show system
tightness. Check the report of the tests.
IG Controls Deck Piping

Ventilation fans and dampers: Tank Testing:
Prior to sea trials, demonstrate proper system installation and Prior to sea trials, the tanks and bulkheads shall be tested by
operations, including all controls and safety devices. hydraulics, hydrostatics or with air to ensure structural and/ or
watertight integrity. Bottom plugs to be checked for securing
The fire damper and flaps testing should be performed with and tightness and while filling up tanks, hull to be inspected
other ventilation test procedures. externally for any leaks or air bubbles formation.
Funnel Flaps
Ballast Tank With Gas Detection Sensor
Accommodation Checks: • Marking for sleeping room and other spaces, indicating
maximum number of seamen to accommodate shall be
• Accommodation to be provided with rated air provided
conditioning and heating system. Yard must demonstrate
proper system installation and operations, including all • Beds shall have at least one side clear access
controls and safety devices for accommodation AC
• Furnishing and fittings in sleeping rooms to be provided
• Paint shall be white or light color enamel or suitable (wardrobe , table, chair etc.)
material. Natural lighting to be provided in the cabins
Light Color Paint in Cabin Furniture and furnishing

• A separate mess room to be provided for officers and • Recreation spaces and smoking room with sitting
crew and it shall not be combined with sleeping rooms arrangements must be provided
Recreational Rooms
• Check the provision store is gas

Mess Room
tight
• All exposed decks above accommodation shall be
covered • Batteries not to be kept inside accommodation
• There shouldn’t be direct opening between • Ensure additional lights are provided in the crew rooms
accommodation and deck/engine stores (200 lumens at sleeping room and 400 lumens in hospital)
• All steam pipes, hot and cold water pipes inside • No manholes or other openings of oil tanks shall be in
accommodation to be lagged accommodation
• Galley to be provided with a separate entry, apart from • Fire flaps, alarms, indications, location of portable
the entries from both mess rooms extinguishers to be checked
• Apart from the above facility, the following to be

provided:
• Laundry facilities
• Water closets
• Dry provision room
• Cold room
• Hospital room
• Medical cabinet
• Protection against mosquitoes/ insects
Ship’s Galley
• All the fixed fire fighting system for accommodation to • No crew accommodation shall be shared with passengers
be checked for alarm and operation
• Check if the doors, bulk-heads and arrangements for the
• Washroom accessories (toilet mirror, cabinet, curtain, accommodation are as per noise reduction requirements
wash basin etc.) must be provided
Other checks: • Check software for PMS on board for deck machinery and
system
• Check if the store room, paint room, chemical store and
provision room are as per the blueprints • Load PMS Software on dedicated computer & verify
operational ability
• Check the yard test reports and trials of the hull, watertight
compartments and tanks
• Check the yard test report of inclining experiment/stability

test
• The PC Network Test Procedure shall be developed by

the subject equipment vendor to address operational
testing
Paint Locker
• Check for medicine chest certificate / medical log The above list is important but not limited to other checks. It
is also necessary to keep a clear communication with the
• Check if Medicine Chest is as per scale of relevant M- company’s representative in the yard to confirm the tests and
Notice MSN 1768 (M+F) & MFAG Appendix 14 (Ships reports which are already witnessed or crosschecked with the
carrying IMO Cargo) and certificate on board yard in order to reduce overlapping of work.
MASTER DRY DOCK
OPERATIONS
For Marine Engineers For Deck Officers

Surveys, Certification and Requirements
CHAPTER 5
Importance of Surveys
Certifications
Documentation, Reports and

Plans
Certificates and Documents for

Manning
Importance of Survey: The owner will get a classification society for the ship which
will ensure that the ship is monitored continuously in all the
stages of its life, from blueprint to recycling.
The shipowner is responsible to make sure that the entire
construction process is kept under the eye of recognized 1. Initial Stage:
independent survey body, which will assess the construction
process, materials used and tests performed as per the Ship design and its component parts are assessed against the
industry standards. requirements of the nominated standard in a process referred
to as design appraisal. Design appraisal does not include
verification of any special requirements customised to owners
(for such requirements special supervisor should be appointed
as per owner’s request).
Survey in Yard
Ship Design
3. In-Service Stage:
2. Under Construction Stage:
Survey should be carried out to ensure changes to the
Survey to ensure that the original design assumptions are met component do not compromise the classification requirements
and that the relevant manufacturing standards are complied. (Changes result from modification, repair, and degradation.
Modification and repair should be in-line with requirements of
rules and survey standards as prescribed by the classification
society).
Construction in Yard
In Service Dry Dock Survey
The main idea behind getting a survey complied vessel is: • Comply with regulations for in-service inspection and
periodic survey during its operation
• To obtain class notation with respect to standards of the
vessel in order to determine premium for hull and • Support international organizations – IMO, ISO, IACS
machinery insurance
The shipowner must ensure and make arrangements that the
• Promote safety of life, property, and environment surveyor of the classification society is informed of sea trails as
class surveyor presence during that time is very important.
• Develop technical standards (rules) for design and
construction of ships
• Approve designs against their standards
• Conduct surveys during construction to ensure the ship is

built in accordance with the approved design and
requirements of the rules
• To act as a recognized organization to carry out statutory

surveys and certification as delegated by maritime
administrations
• Assist in research and development program Surveyor in Yard

Each classed vessel is subjected to a specified program of Certification:
periodic surveys after delivery. These surveys are carried on a
five-year cycle and comprises of: A ship without required certificates can be detained and will
not be allowed to sail until inspected and issued with proper
• Annual surveys certificates.
• Intermediate Survey The owner, ship managers, and captain are responsible to
ensure the ship has all the certificates, which are renewed well
• Class renewal/special survey (held every 5 years) ahead of time.
Following is the list of certificates and documents, which a

newly built ship has to carry:
Once the surveyor assesses and successfully tests various
components, systems, machinery, and equipment on board Certificates:
the constructed vessel, the class will endorse various renewal
certificates which will act as a proof that the ship is seaworthy • The certificate of registry provided by the flag state
for international water and its hull, machinery and relevant
systems are compliant as per international standards. • Letter from class stating the name, flag and class of the
vessel. The classification certificates to be transcribed in
the register of ships published periodically by the society

• Safety management certificate – Interim certificate should • Certificate of insurance in respect to civil liability for oil
be received pollution damage
• SMS Shipboard manuals should be available on board

along with a Copy of DOC
• International load line and exemption certificate
• International tonnage certificate
• International anti fouling system certificate
Hull Fouling
• Ship sanitation control certificate • Cargo ship safety construction and equipment certificates
and Form E
• Passenger ship safety certificate (for passenger or ROPAX
vessels etc.)
• International certificate of fitness for carriage of dangerous

cargo (chemical, noxious substance etc.)
Hazardous Cargo Ship

• Cargo ship radio equipment certificate and Form R • Cargo gear and lifting equipment inspection booklet, chain
register
• Certificate of insurance for War Risk entry

• Continous Synopsis Record and Form II & III • Protection & Indemnity Insurance Trading for wreck
removal and contact with fixed platforms
• Certificate of insurance or other financial security in
respect of civil liability for oil pollution damage

• Certificate of insurance or other financial security in Documents, Reports and Plan:
respect to civil liability for bunker pollution damage
• Radio station license and radio service document
• Certificate of entry for Protection & Indemnity Insurance
• Ship security plan
• International sewage pollution prevention certificate
• Ship to Ship transfer plan and booklet
• International oil pollution prevention certificate
• International air pollution prevention certificate
• International ship security certificate
• VDR certificate of compliance
• International energy efficiency certificate
• Check all certificates are in date and endorsed as per

Certificate of Registry

• Intact stability booklet • Noise survey report
• Damage control plan and booklet • Fire safety operational booklet
• Fire safety and control plan • Ship specific man-overboard recovery plan
• Emergency towing procedure manual for the ship • Plan for SAR co-operation for passenger ships
• AIS test Report
• Deviation curve for compass
• Cargo securing manual and cargo handling booklet
• MSDS plan
• Enhanced survey report and continuous synopsis record

booklet
• Approved Ship Oil Pollution Emergency Plan -

SOPEP/SMPEP (If not yet approved vessel should have
Towing of Ship
an unapproved copy)
• Volatile organic compound management plan • Ship construction file and structure access manual
• Garbage management plan and booklet • Oil spill equipment checked for quantity, condition, and
instructions to all crew regarding its use
• EPIRB registration to be arranged
Garbage Record: Photo Credit- Ciacho5/Wikimedia
• Ship energy efficiency management plan
• Energy efficiency design index technical file

Photo Credit- Paromita Mukherjee
• Passport, visas, CDCs and other important
Certificates and Documents for Manning:
documents(e.g. yellow fever certificate) of officers and crew
to be collected, and kept with master
• Articles of Agreement (AOA) signed by officers and crew
• Official Log Book (OLB) – As required by flag state

regulations
Ship Cash Locker
• Check if sufficient cash is available on board for

emergency purchases
Important Documents

• Check flag state licenses and endorsements of all officers Once the ship receives all the certificates and other important
and crew documents, the last stage of a ship construction process prior
to final delivery is Sea Trials. The company/owner will decide
• Open and enter all relevant details in ship’s logbooks and if the minimum manning crew or the ship’s crew (apart from
documents. Also enter details of members comprising the the takeover crew which is already present) will join the ship
safety committee before sea trails or after sea trails.
• Safe Manning Certificate – Check Minimum Manning *It is advisable to get all the ship staff onboard before the sea
against on-signers trials to ensure maximum hands on deck are available and the
ship staff, which will be taking care of the ship for next 5-9
• Check validity of certificates and endorsements of officers months, has a fair idea about the ship.
and crew as per STCW’95
• Check required officers have GMDSS certificates
• Pre-joining medical report and drug & alcohol (D&A)

declaration received
• Crew list (needed for sailing) is prepared and copy of it is

kept in office
• Provision to maintain rest hour record Complete Ship Crew

Sea Trials
CHAPTER 6
Importance of Sea Trials
Different Tests in Sea Trials
Sea Trials Preparation
Checks During Sea Trials

Importance of Sea Trials: contract to accomplish the following objectives:
• To exhibit the operational characteristics of the ship at sea

Sea trials is a general term, which refers to a series of to ensure the design, construction, machinery and
rigorous, underway tests to determine that the ship's hull, equipment used by the builder are working together
mechanical, electrical, and other systems function as properly
required.
• To exhibit the continuity of the ship’s power and
Trials typically have three phases: performance to make it seaworthy in all normal conditions
• Dock trials (including machinery trials, conducted while • To exhibit the maximum power and speed produced by
the ship is still tied to the pier) the ship’s machinery is as per the plan
• Builder’s trials (done at sea by the contractors, who built • To exhibit the maneuverability of the ship and its control
the ship) system to ensure safety of the ship for turning, slow
moving, stopping and course keeping
• Acceptance trials (conducted at sea and ashore by class
surveyor) - Discrepancies noted during trials must be • To check the fuel consumption of the ship is as per the
corrected prior to delivery builder’s agreement
The sea trails of a ship are important components of the

• To get a performance baseline for the ship so that ship Different Tests in Sea Trials:
operators will have a standard to compare current
operating data for monitoring of plant performance and The main propulsion machinery is specifically targeted in sea
operational capabilities trail as the propulsion system can only be tested in the water,
out at sea.
• Performance baseline data is also important for
populating onboard performance monitoring systems
used in optimizing vessel operations in later dates
• To have a certified ship specific operational data for

insurance claim purpose
• To get the relative rating of energy efficiency of the ship

to acquire its EEDI characteristics
• Last but not the least, to exhibit compliance with

classification and regulatory requirements in terms of
safety and pollution prevention Main Engine
The intent behind sea trial is to test the machinery that can List of trials, which are normally performed during sea trails
only be operated once the ship is waterborne or those systems (for ship types already built by shipyard earlier):
whose trails were not performed in shipyard.
• Endurance trials of propulsion plant
• Astern trial of propulsion plant • Centralized Propulsion Control System
• Ahead steering • Auxiliary Means of Steering
• Astern steering • Quick Reversal from Ahead to Astern of propulsion plant
• Bow thruster test • Slow Steaming Ability of propulsion plant
• Navigation equipment
• Auxiliary engine plant trials (if not done in yard)
• Other engine room machinery operation (if not done in

yard)
• Deck machinery operation (if not done in yard)
Bow Thruster
List of trials that can be additionally requested to the builder • Z Maneuver
by the owner:
• Initial Turning
• Reverse Spiral
• Pullout
• Low Speed Controllability
• Direct Spiral
• Emergency Propulsion Systems
• Standardization Trials
• Diesel Electric Propulsion System Trials (if installed)
• Gas Turbine Propulsion System Trials (if installed)
• Electric Drive Propulsion System Trials (if installed)
The following trials are additional and compulsory for the

shipyard constructing a type of ship for the first time:
• Economy Trials
• Turning Circles Maneuvering Trials: Photo By- Sarthak Satta Mohapatra

Sea Trails Preparations: If there are no such terms about the tools and calibration
procedure, the owner should make a sea trail instrumentation
It is important that the shipyard team and the owner’s proposal so that the builder can arrange for important
representative (seafarers and superintendent) must have an measuring tools.
understanding so that the tests and trials to be conducted and
all the planning is clear, including the depth of Following are some basic parameters, measurements, and
instrumentation and the data to be recorded. tools, which are commonly used:
The takeover crew should do the following preparations: Temperature measurement: For temperature measurements,
apart from the temperature measuring tools installed in the
Preparation of tools: machinery/ system, the yard may use these instruments:
The sea trial of a ship mainly includes measuring of various • Thermocouples

parameters to define the operational capability of machinery
and systems. For this, special measuring tools are required • Liquid-in-glass thermometers
which the shipyard will provide for the trail period, if it is
mentioned in the contract. • Distant-reading vapor pressure thermometers
Competent authority must calibrate all the tools, which will • Resistance thermometers
be used by the yard for sea trials, and the owner from the
yard can ask a copy of the calibration report. • Infrared temperature sensor

Pressure measurement: For pressure measurements, apart • Diaphragm gauges
from the pressure measuring tools installed in the machinery/
system, the yard may use these instruments: • Deadweight gauges – Provide greater accuracy for systems
without major pressure fluctuations
• Bourdon type gauges
• Liquid column gauges (Manometers)
Torque and power measurement: The main engine and

propulsion plant performance can be analyzed by measuring
the power in the shaft using the following instruments:
• Shaft torsion meter: For measuring the torsional deflection

of a shaft
• Shaft power meters: The shipboard meter can be used in

Pressure Gauges
the sea trials if there is an agreement between the owner
• Transducers – To convert pressure into pneumatic or and yard
electrical signals
• Shaft thrust meters: For measuring the thrust developed by
• Bellows gauges - Utilized for measuring low-pressure the propeller in the axial direction of the shafting
differentials up to 50 PSI
• Shaft speed measurement: Apart from portable • Orsat Analyzer: Popularly used in shipyards to check the
tachometers, the shipboard speed indicator can be used flue gas composition, it comprises of number of pipettes
in the sea trials if there is an agreement between the containing chemical reagents, which absorb the respective
owner and yard gas constituent from the sample
Exhaust/ flue gas analysis tools: To ensure that the exhaust • Automatic flue gas analyzer
gas produced by the main and auxiliary engine and the boiler
are as per MARPOL air pollution norms. Flow measurement: Fluid flow is an important parameter,
which is measured in the sea trials.
• Positive displacement flow meter
• Coriolis type flow meters
• By differential pressure measurement - using orifice plate,

flow nozzle and venturi plate with indicating and recording
instruments
Viscosity measurement: The viscosity of fuel supplied to the

engine and boiler has to be measured for machinery
performance data.
Exhaust Emission: Photo by – Kaka Kaler

• Automatic viscometers • Stop Watches
Wind speed and direction measurement: wind speed and • Chronographs

direction are important to get the overall performance of
ship’s main engine and speed of the ship. Other Important Preparations:
• Cup anemometer • Ensure that the entire measuring instrument installed on

the ship and those, which will be used by the shipyard, are
• Biram anemometer calibrated
• Deflecting-Vane Anemometer • Sensors, including remote and local, which will be used in
the sea trials are calibrated
• Wind direction indicator
• The operating condition of the plant must be pre-decided
• Ultrasonic Wind Sensors - for both wind speed and by the yard and the owner with other factors such as draft,
direction speed, power etc.
Time measurement: Whenever machinery is tested under • Ship's ballasting and de-ballasting instructions should be
sea trails, it will be done for duration of time which will be prepared and distributed to the trial crew supervisors
recorded.
• Signal system should be designed and installed
• Ship's Clocks - Ensure all clocks are synchronized
• Since the result of the test may not be 100% accurate, heat content determination when fuel rates are to be
correction factors should be obtained and the calculated
concurrence of owner’s technical representatives has to
be established • Trial agenda, procedures, and schedules should be
prepared and furnished to the owners for comments
• Data forms - paper or digital (to record sea trial data),
should be prepared and the graphical interface checked • Before undocking, all underwater jobs must be completed
against the ship as built, preferably same data forms and checked by CE
which are used for dock trials to allow for proper data
quality assurance • All the bridge equipment are tested at least one more time
for their operation
• Trial operating and yard crew should be trained (unless
previously trained or experienced)
• Calculation sheets or Data Acquisition System (DAS)

and computerized Quality Analysis (QA) sheets should
be prepared, with dummy calculations and correction
tables
• A sample of the fuel expected to be used in the engine

and boiler must be sent to a laboratory for gravity and
Ship’s Bridge
• Check fire detection system testing before sea trials • Trial control and data acquisition system should be
planned and facilities installed, including appropriate
• A test procedure should address operational checks of all communications and reference material
contactors, bells, and lights before dock trials/sea trials
Checks During Sea Trials:
• Inspect the work of shipyard staff for final acceptance
before going to sea trials. Unsatisfactory work should be • Sea trails duration must be enough to perform tests for all
informed to company representatives and dockyard the machinery, which are included in the sea trail list.
manager Generally, 30 hours is a good duration to perform the sea
trails
• A predetermined machinery start up plan should be

worked out to establish:
 The respective responsibilities of yard and ship’s

personnel
 The appropriate protective equipment to be worn
• All personnel must be vigilant to ensure that the ship’s

systems have been restored to their optimum seagoing
Machinery Inspection
condition and properly re-commissioned prior to final • The maneuvering and control system must be checked
testing along with performing turning circle test, Z maneuver test,
ahead, astern and crash maneuvering test etc.
• Prior to refloating from a dry dock, ship’s personnel
should carry out an external examination to ensure that • For various exhaust systems, (main engine, auxiliary
all openings in the hull are properly secured engine, boiler etc.) a visual leak inspection to be carried
out when machinery is operated during the sea trials
• The propulsion plant to be tested in sea trial for at least 4
hours. Various tests as described under “List of trails
normally conducted during sea trails” are performed
Main Propulsion Plant Inspection during Sea Trials Check Exhaust Trunks for Leakage
• Bow thrusters to be tested for operational performance at • Fresh water generator capacity test can be carried out
sea
• Perform the operational tests on the steering gear
• 100% redundancy test to be carried out in the sea trials
for steering gear system
• Reduction gear of the engine to be inspected during sea

trials
• Shaft alignment calculation to be recorded and verified
• Test the number of main engine starts from the air

reservoir, without replenishment, to see if the required
number of starts is adequately provided
• Segregated ballast system to be tried and tested in sea

trials
• Operational inspection of transformers to be carried out Steering Gear Alarm Panel
• Check the general and other alarm systems while the • Perform the local maneuvering test and emergency
ship propulsion plant is operational steering gear test
• System operational tests can be performed on Cathodic • For auxiliary engines, the diesel oil test is done in the yard.
protection system Parallel operation of generators, power management
systems, and HFO units will be operationally tested during
• System operational tests for windlass and winch to be sea trials
performed
• Check the flanges, gaskets, and other connections for
• Check all important alarms and trips for main, auxiliary leakages
engine, boiler and other important machinery which
were not done in the yard • Check all the contactors and electrical connections
Generator Panel Contact tightness

• Ensure all stand by machinery/ pumps are also checked • Cargo pump in tanker to be verified for the capacity of
for any problems each pump; system off-loading capability will be
demonstrated during sea trials
Working of Standby Pumps

FRAMO pump on ship
• All the navigation equipment must be tried and tested • Calibrate the radio direction finder and compass
during sea trials connections
• Check tank level indicator readings by manually • Complete operational tests are to be carried out to the
sounding all tanks using sounding tape surveyor’s satisfaction on sea trials
Once the sea trials are officially finished, the yard delivery • Fuel properties should be determined by post trial analysis
crew must do the following post sea trial inspection: of a thorough mix of fuel samples taken at a minimum of
four equally spaced intervals during the run
• Cross check all the recorded parameters for abnormal
readings • Perform lube oil sump inspection of various machinery
• After sea trials, the gear teeth of main engine reduction • Calibration of gauges and sensors if the sea trial data has
gear to be inspected deviation from the expected readings
NOR- Note of readiness given to buyer to set a delivery date

and to arrange for final payment. This can be given well before
the sea trials or even after the sea trials.
Since there is a possibility that there might be some problem

or discrepancy in work, which was revealed during the sea trial,
it will be shipyard’s duty to repair the problem.
Normally the delivery date or note of readiness is given once

the sea trial is successfully completed.
Reduction Gear Teeth Inspection
Handing Over and First Voyage
CHAPTER 7
Handing Over
Preparation for Maiden Voyage
Checks During the Voyage

Handing Over: In this document, the yard and the owner will do the written
confirmation that the shipyard has delivered the vessel and the
owner/ buyer has accepted it from the yard. Normally, the
For a new build vessel, which has completed the sea trials owner’s representative to the yard specifying date and time,
and passed the survey, the delivery will be done under signs this document.
handover procedure and naming/delivery ceremony will be
held. The final payment will be given to the shipbuilder prior to
signing this protocol or as mutually decided by the yard and
the owner. Once this is done, the builder will formally
handover the ship to the owner’s representation team of
seafarers i.e. Master, C/E and the crew.
The seafarers of the new ship have to make sure the handed
over ship is ready for international voyage and have all the
setup required by international regulatory authorities. The
seafarer team must do the following preparation before the
first voyage:
Naming Ceremony • Master / Chief officer must check the content of medicine
The shipyard and builder will go under a delivery locker and ensure all the medicines are labeled and the
documentation normally known as – “The Protocol of locker has complete details with inventory pasted
Delivery and Acceptance”.
• Order any shortfall or missing medicines • Prepare passage plan from present sailing berth to arrival
at next berth
• A separate list of narcotics is made
• First aid kit is available wherever mandatory
• Check if the alcoholmeter is supplied to the ship and

alcohol policy is pasted for crews’ reference
• Ensure all the required spares and tools are onboard. The
spare rooms have been arranged and inventory recorded
Passage Plan: Photo by – Vivek Bondi
• Perform the steering changeover between autopilot and

manual operation
• Ensure that the operating instruction for maneuvering of

main engine and thrusters from bridge are displayed at
Spare Store Room appropriate locations
• Ensure inventory of all the chemicals, paints and gas • Ensure the deck log book and engine room log book is
bottles has been taken made ready and placed at bridge/ engine room
• Check the provision and bond store for the planned

voyage. Reconfirm for any requirement from galley staff
• Ensure the operating instruction of steering gear is clearly

displayed in the wheelhouse
• Ensure the emergency steering change over instructions

have been pasted in the steering room and in wheelhouse
• Ensure the shore based maintenance plan for GMDSS

Log Books and Record Keeping in Bridge: Photo by Bugra Kulaksiz
equipment is received and a copy is pasted near GMDSS
equipment • Ensure the standing orders of master and chief engineer
have been pasted and seen/signed by respective crew
• Bell book (maneuvering/movement book) is provided in
the bridge and engine room • Master and chief engineer to fill the Night Order Book for
upcoming voyage. Same must be signed by the ship’s crew
• Paste a copy of document for handling of distress
messages via VHF, MF/HF, Satcom near the equipment • All ship’s clocks are matched

• A list indicating location of heat, flame and smoke • Post a list on Bridge & ECR for all the equipment
detectors has been posted on bridge and in fire control operating in emergency power
station
• A list indicating location of enclosed spaces is posted on

bridge
• Lifeboat and life raft launching procedures are posted at

respective embarkation decks
• Work and rest hours or watch schedules to be posted in

bridge, engine control room and common places
Emergency and Battery Powered Equipment in Bridge: Photo By- Aditya Mohan
• Check all the exhaust type fans, ventilation devices fitted
in various locations and compartments are operational • Post the list of equipment in bridge and ECR operating
from battery power
• Ensure chief engineer has received oil record book (Part I
and/or II), sulfur record book and other mandatory flag • Ensure to post the operating procedures near all
state approved books and record files machinery
• Master and chief officer must prepare the emergency • All the additional guidelines of the company are pasted in
muster list and assign duties to the ship’s crew bridge, engine room and accommodation
• Ensure all the machinery/systems are stenciled for their • Ensure the crew has been instructed about the Garbage
names and numbers Management Plan and record keeping and filling of
garbage disposal has been arranged with placards displayed
near all garbage points and stations
• Check onboard ballast water management plan is being

followed. Send sequence for ballast water exchange to
office for approval as soon as possible
• Emergency muster station to be marked and painted
Stenciling : Photo by Bugra Kulaksiz
• Ensure all the tanks are stenciled for their names and
capacity (as mentioned in the ship’s data or sounding
record books)
• Paste a copy of emergency maneuvering procedure near

local maneuvering station in the engine room
• Post complete procedure for recovering ship from

Muster Station Markings : Photo by Abdulrahman Kaddoura
blackout condition in the ECR
First Voyage: As per the long run tradition, a woman is asked to cut the
ribbon, and smash a bottle of champagne against the ship’s
Once the owner’s team is satisfied, the handing over of ship hull.
will be performed by signing of papers, followed by the
naming and launching ceremony.
On the day of ship naming and launching, the new ship is

usually decorated with flags and long rolls of ribbons.
Bottle Breaking Ritual
Post the naming ceremony, within few hours, the ship is ready
to sail her first voyage. The onboard seafarers have a crucial
job to ensure all the systems; machinery, controls, alarms etc.
Naming Ceremony
are functioning properly by thoroughly inspecting them during
her first few days of voyage.
Once the ship is ready to sail out, these pre-departure checks • Send requisition for charts directly to office or agents (if
are to be performed: urgent) or supplier of electronic chart system
• Master must ensure that company has supplied enough • Ensure cargo-loading plan for loading of the cargo in the
cash for emergency purchases first port has been received or requested
• Carry out search for drugs, contraband and stowaways, • Master to ensure pilot card is ready and pilot arrival time
and record the outcome in the checklist has been communicated with the chief engineer
• Ensure MET department has supplied the current • Pre-departure checklist for engine room and deck has
weather condition, and request them to supply shortfalls, been followed, filled and signed by the duty officers and
if any department in-charge
• Ensure sailing / voyage instructions from Owners / • Ballast water plan is followed and records are logged-in
Charterers / Managers have been received
• The Steering gear must be tested before main operation
• Post the condition of Sea State & Cloud Charts in bridge
area • Main engine has been tested for the ahead and astern
operations
• Ensure all charts and publications for the voyage are on
board and are corrected • All preparations are done for pilot station

• All lamps, buzzers and alarms on control consoles, panels, • Forward and aft talk back systems to be tried out, including
bilge alarms for pump room, forepeak stores, engine emergency sound powered telephones
room, void spaces, cargo tanks and spaces, fixed gas
detection systems, and vapor alarms to be tried out • The master should assist the pilot for maneuvering the
ship from yard to open sea
• Temperature alarms in meat room, fish room, and veg
room to be tried out • Once the pilot disembarks, the engine speed is increased.
As all the systems on the bridge and in the engine room
• Hospital alarms to be tried out are in operation, the ship staff must be vigilant to sense the
fluctuation and abnormality in various parameters of
• Communication equipment to be tried out machinery and systems
• Galley hot plates and other equipment for food

preparation to be tested
• Check mooring equipment, windlasses and winches are in

operational condition. Ensure pilot hoists and motors (if
fitted) are operational
• Emergency pumping arrangements for spaces such as

pump room, forecastle store, E/R bilges, void spaces and
Pilot Leaving Ship: Photo by- Manoj More
other compartments are identified and instruction posted
Duties During First Voyage: • All ship staff must read and sign the SOLAS Training
Manual (Life Saving & Fire Fighting Training and
If all the systems are working fine, the ship’s crew has to Maintenance manual)
perform following important things during initial days of the
ship’s first voyage: • The ship familiarization training for the entire department
must take place (Safety Familiarization for all
officer/crew/passenger including Bridge/ Engine room
familiarization and job familiarization) as soon as possible
and record to be kept on the bridge
Drill: Photo by- Temo Volkov
• All the ship staff must undergo emergency drill within 24

hours of the first sailing
Familiarization Procedure in Engine Room- Photo by- Karun Yimyong
• Departure message is sent to the office as soon as possible Gurantee claim file also includes man hours required or man
after well clear and Full Away On Passage (FAOP) hours of ship’s staff required to rectify the defects, along with
the cost of spares or consumables used.
• Fuel oil changeover to be performed as per the
requirements
Guarantee Claims:
Post ship delivery from the shipyard, if any defects or faults

are found in the vessel, its equipment and machinery can be
categorised to fall under various guarantee claims.
However, the fault essentially should be due to poor

workmanship of the yard or any inherent defects found prior
commissioning of the equipment or during the period
warranted for their use.
The equivalent of “guarnatee claim” in the form of cost, spares
The ship’s staff usually prepares a file or spreadsheet named or services can be claimed and settled with the yard.
as Guarantee Claims, which is a comprehensive list of defects
or shortcomings that are discovered, and the issues therein The ship’s staff is required to update this file diligently and
need to be addressed by the yard. report issues to the technical department so that the same can
be pursued with the yard within stipulated guarantee period.
All the systems and machinery of the new ship need keen monitoring and any operational, structural or system problem has
to be notified to the shipyard.
The deck and engine department is provided with the Guarantee Certificate (GC) form. As the shipyard provides a
guarantee period of 12 to 24 months (depending upon the contract), any problem in the machinery, system, structure
must be raised under the GC by the concerned department and sent to the shipyard by the owner/ ship management
company.
The shipyard will either call the ship back to the yard (in case of a major repair or fault) or will send the technical staff/ parts
etc. to the next port of call for corrective action and to close the objection.
In order to demonstrate smooth operation of a new ship, it is important to test all its systems under realistic conditions.
The sea trial procedures are specifically designed to measure the ship's total performance, along with the condition of its
equipment.
The list of tests for sea trials mentioned in this guide is not exhaustive, as a plan comprising of a variety of different tests and
experiments is prepared considering the type and purpose of the vessel. The sea trial report acquired from these tests is
prepared and submitted to relevant bodies for approval before the ship is considered safe to sail at high seas.
The main goal of sea trials is to facilitate development of efficient and safe ships, which are in accordance with the regulatory
requirements, while meeting the expectation of the owner in a cost-effective and reliable manner.
Yard Delivery Procedure l 205.

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A Practical Guide to Yard Delivery of New Ship

A Guide for Seafarers, Shipowners and Ship Managers

A Practical Guide to Yard 2 The Contract: Shipbuilder & Purchaser

4 Responsibility of Takeover Team

5 Surveys, Certifications & Requirements

Ship Construction Stages

Among these, shipowners, operators and floating staff are

As the shipping industry constantly upgrades itself with new

3. l Marine Insight Yard Delivery Procedure l 4.

The decision of a shipowner/ purchaser to order new ships

• Company growth in one type of fleet or expansion in

• The tonnage requirements for a particular type of trade and

• Current and future shipping trade scenario and projection

Once the decision has been taken to purchase a particular type

Following are the main phases in the ship construction process

9. l Marine Insight Yard Delivery Procedure l 10.

Classifications, Regulations and

Warranties and Limitations

Extras, Additional Services and

Insurance and Taxes

Completion Date and Payment

The other important aspect of going through various

The contract will also specify (and it is practiced in general)

14. l Marine Insight Yard Delivery Procedure l 15.

The shipowner will choose a shipyard that can provide a

Warranties in writing guarantee that the shipbuilder will

16. l Marine Insight Yard Delivery Procedure l 17.

18. l Marine Insight Yard Delivery Procedure l 19.

• For the benefit of purchaser and builder, there should be a

• If the shipyard does not have such an agreement and the

• Hence from a shipyard’s perspective, it is advisable to have

20. l Marine Insight Yard Delivery Procedure l 21.

• Contract should mention if both the parties decide to

• It is important that the contract clearly mentions who will

22. l Marine Insight Yard Delivery Procedure l 23.

Except as otherwise stipulated in the specifications and the

Any opinion or request made by the buyer entails no alteration

24. l Marine Insight Yard Delivery Procedure l 25.

It is best to have the shipyard review any proposed provisions

In general, till the handing over of the ship to the owner is

Following are some important points which need to be

26. l Marine Insight Yard Delivery Procedure l 27.

• It should clearly mention if the builder is obliged/

28. l Marine Insight Yard Delivery Procedure l 29.

• The buyer’s supplies for building the ship may also be

• Any tax benefits or exemptions should be computed while

30. l Marine Insight Yard Delivery Procedure l 31.

If it is important for a purchaser to have a ship completed by

If this clause is demanded in the contract, the shipyard will

• Notice of the installments payable on delivery and

34. l Marine Insight Yard Delivery Procedure l 35.

If on or before the delivery and acceptance of the vessel, the

The ship builder may also require an alteration of the payment

36. l Marine Insight Yard Delivery Procedure l 37.

Selection of Takeover Crew

Arrangement for Surveys

• Check if the name of the vessel that the owner wants is

* Pro Tip: While the ship is under construction or even before

• Check if the ship is fulfilling the eligibility criteria, in terms

41. l Marine Insight Yard Delivery Procedure l 42.

• Attendance by a classification society surveyor(s) at the sea

• Upon satisfactory completion of the above, the builder’s/

• Once the ship is in service, the owner must submit the