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SHIPBUILDING CONTRACT
FOR
CONSTRUCTION OF ONE ____________________________
(HULL NO. ______)
BETWEEN
_______________________
as BUYER
and _______
as SELLER
Shipbuilding Contract Hull No._____
CONTENTS
ARTICLE PAGE NO.
ARTICLE I DESCRIPTION AND CLASS ....................................................................................................... 2 1. DESCRIPTION:............................................................................................................................................. 2 2. CLASS AND RULES .................................................................................................................................... 2 3. PRINCIPAL PARTICULARS AND DIMENSIONS OF THE VESSEL ....................................................... 3 4. GUARANTEED SPEED ............................................................................................................................... 3 5. GUARANTEED FUEL CONSUMPTION .................................................................................................... 3 6. GUARANTEED DEADWEIGHT ................................................................................................................. 4 7. SUBCONTRACTING: .................................................................................................................................. 4 8. REGISTRATION: ......................................................................................................................................... 4 ARTICLE II CONTRACT PRICE & TERMS OF PAYMENT ...................................................................... 5 1. CONTRACT PRICE: ..................................................................................................................................... 5 2. CURRENCY: ................................................................................................................................................. 5 3. TERMS OF PAYMENT: ............................................................................................................................... 5 4. METHOD OF PAYMENT:............................................................................................................................ 6 5. PREPAYMENT: ........................................................................................................................................... 8 6. SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY: ................................................ 8 7. REFUNDS ..................................................................................................................................................... 8 ARTICLE III ADJUSTMENT OF THE CONTRACT PRICE ..................................................................... 10 1. DELIVERY .................................................................................................................................................. 10 2. INSUFFICIENT SPEED .............................................................................................................................. 12 3. EXCESSIVE FUEL CONSUMPTION ........................................................................................................ 13 4. DEADWEIGHT ........................................................................................................................................... 14 5. EFFECT OF RESCISSION .......................................................................................................................... 15 ARTICLE IV SUPERVISION AND INSPECTION ....................................................................................... 16 1. APPOINTMENT OF THE BUYER'S SUPERVISOR ................................................................................. 16 2. COMMENTS TO PLANS AND DRAWINGS ............................................................................................ 16 3. SUPERVISION AND INSPECTION BY THE SUPERVISOR .................................................................. 17 4. LIABILITY OF THE SELLER .................................................................................................................... 18 5. SALARIES AND EXPENSES ..................................................................................................................... 18 6. REPLACEMENT OF SUPERVISOR .......................................................................................................... 18 ARTICLE V MODIFICATION,CHANGES AND EXTRAS ......................................................................... 19 1. HOW EFFECTED........................................................................................................................................ 19 2. CHANGES IN RULES AND REGULATIONS, ETC. ................................................................................ 19 3. SUBSTITUTION OF MATERIALS AND/OR EQUIPMENT .................................................................... 21 4. BUYER'S SUPPLIED ITEMS ..................................................................................................................... 21 ARTICLE VI TRIALS ....................................................................................................................................... 22 1. NOTICE ....................................................................................................................................................... 22 2. HOW CONDUCTED ................................................................................................................................... 23 3. TRIAL LOAD DRAFT ................................................................................................................................ 23 4. METHOD OF ACCEPTANCE OR REJECTION........................................................................................ 24 5. DISPOSITION OF SURPLUS CONSUMABLE STORES ......................................................................... 24 6. EFFECT OF ACCEPTANCE ...................................................................................................................... 25 ARTICLE VII DELIVERY ............................................................................................................................... 26
Date: _th _______, 200_
I
Shipbuilding Contract Hull No._____
1. TIME AND PLACE ..................................................................................................................................... 26 2. WHEN AND HOW EFFECTED ................................................................................................................. 26 3. DOCUMENTS TO BE DELIVERED TO THE BUYER ............................................................................. 26 4. TITLE AND RISK ....................................................................................................................................... 28 5. REMOVAL OF VESSEL ............................................................................................................................. 28 6. TENDER OF THE VESSEL ........................................................................................................................ 28 ARTICLE VIII DELAYS & EXTENSION OF TIME FOR DELIVERY .................................................... 29 1. CAUSE OF DELAY .................................................................................................................................... 29 2. NOTICE OF DELAY ................................................................................................................................... 29 3. RIGHT TO CANCEL FOR EXCESSIVE DELAY ...................................................................................... 30 4. DEFINITION OF PERMISSIBLE DELAY ................................................................................................. 30 ARTICLE IX WARRANTY OF QUALITY .................................................................................................... 31 1. GUARANTEE OF MATERIAL AND WORKMANSHIP .......................................................................... 31 2. NOTICE OF DEFECTS ............................................................................................................................... 31 3. REMEDY OF DEFECTS ............................................................................................................................. 31 4. EXTENT OF THE SELLER'S LIABILITY ................................................................................................. 32 5. GUARANTEE ENGINEER......................................................................................................................... 33 ARTICLE X CANCELLATION , REJECTION AND RESCISSION BY THE BUYER ........................... 35 ARTICLE XI BUYER'S DEFAULT ................................................................................................................ 36 1. DEFINITION OF DEFAULT ...................................................................................................................... 36 2. NOTICE OF DEFAULT .............................................................................................................................. 36 3. INTEREST AND CHARGE ........................................................................................................................ 36 4. DEFAULT BEFORE DELIVERY OF THE VESSEL ................................................................................. 37 5. SALE OF THE VESSEL .............................................................................................................................. 38 ARTICLE XII INSURANCE ............................................................................................................................ 40 1. EXTENT OF INSURANCE COVERAGE .................................................................................................. 40 2. APPLICATION OF RECOVERED AMOUNT ........................................................................................... 40 3. TERMINATION OF THE SELLER'S OBLIGATION TO INSURE ........................................................... 41 ARTICLE XIII DISPUTES AND ARBITRATION ........................................................................................ 42 1. PROCEEDINGS .......................................................................................................................................... 42 2. ALTERNATIVE ARBITRATION BY AGREEMENT ............................................................................... 42 3. NOTICE OF AWARD ................................................................................................................................. 43 4. EXPENSES .................................................................................................................................................. 43 5. AWARD OF ARBITRATION ..................................................................................................................... 43 6. ENTRY IN COURT ..................................................................................................................................... 43 7. ALTERATION OF DELIVERY TIME ....................................................................................................... 43 ARTICLE XIV RIGHT OF ASSIGNMENT ................................................................................................... 44 ARTICLE XV TAXES AND DUTIES .............................................................................................................. 45 1. TAXES ......................................................................................................................................................... 45 2. DUTIES ....................................................................................................................................................... 45 ARTICLE XVI PATENTS, TRADEMARKS AND COPYRIGHTS ............................................................ 46 ARTICLE XVII NOTICE ................................................................................................................................. 47 ARTICLE XVIII EFFECTIVE DATE OF CONTRACT ............................................................................... 49 ARTICLE XIX INTERPRETATION .............................................................................................................. 50
Date: _th _______, 200_
II
Shipbuilding Contract Hull No._____
1. LAW APPLICABLE .................................................................................................................................... 50 2. DISCREPANCIES ....................................................................................................................................... 50 3. DEFINITION ............................................................................................................................................... 50 EXHIBIT \.......................................................... 52 EXHIBIT \ FOR THE 2ND, 3RD, AND 4TH INSTALLMENTS ...................................................................................... 54
Date: _th _______, 200_
III