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Engage

a Builder

10 May 2023

Last revised

minutes

3

Reading time

So you have your team in place. In the case of a full custom yacht, you have your design and specification to hand. And if it’s a semi-custom or series production yacht you’re going for, your team understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. It’s time to shortlist the builders.

minutes

3

Reading time

10 May 2023

Last revised

So you have your team in place. In the case of a full custom yacht, you have your design and specification to hand. And if it’s a semi-custom or series production yacht you’re going for, your team understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. It’s time to shortlist the builders.

  • The asking prices of yachts depend on builder pedigree and size, with Northern Europe, France, Italy, and Turkey being viewed as having higher pedigree.

  • Builders often subcontract parts of builds to suppliers, so effective build agreements and project management are crucial.

  • Whittle down the short-list of builders by checking their available build slots and assessing their insurances and financial stability.

  • Visit the builder's facilities to evaluate their cleanliness, safety, and organization, as well as the quality of their craftsmen and office facilities.

  • Assess the builder's management team for communication and receptiveness to new concepts, as well as their flexibility in equipment suppliers and subcontractors.

  • Consider the builder's financial security and willingness to have the build agreement subject to English law and jurisdiction.

  • Choose a builder based on factors beyond the lowest bid, such as personal impression and team performance.

  • Builders often request a Letter of Intent (LOI) before reserving a build slot, which outlines the price, payment terms, design, specification, and delivery timeframe.

  • Clarify which parts of the LOI are binding and split it into a binding and non-binding section if necessary.

  • Negotiate the build agreement after securing the LOI, taking legal advice before agreeing to any terms.

  • Consider the builder's financial security and willingness to have the build agreement subject to English law and jurisdiction.

  • Choose a builder based on factors beyond the lowest bid, such as personal impression and team performance.

  • Builders often request a Letter of Intent (LOI) before reserving a build slot, which outlines the price, payment terms, design, specification, and delivery timeframe.

  • Clarify which parts of the LOI are binding and split it into a binding and non-binding section if necessary.

  • Negotiate the build agreement after securing the LOI, taking legal advice before agreeing to any terms.