Three things matter most in a build contract: adherence to the specification, verified stage-linked payment, and who holds title and risk.
- A quote starts with purpose, a measurable outcome, included/excluded scope, method and standards.
- Payment follows verified stages, not the calendar; part of the final payment is held until snags close.
- Extras, material changes and subcontractors only with written approval.
- Clauses protect both sides; one-sided wording is not honoured.
1. Sample Proposal
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SAMPLE NEW-BUILD PROPOSAL
1. Particulars and parties
- Quote number, date and validity (e.g. 30 days)
- Contractor: legal name, tax number, address, responsible person
- Owner: name, address, representative if any (surveyor/consultant)
- Vessel: name, make and model, year, length, flag, berth or yard location
- Annexes: specification, drawings, equipment list, photographed baseline
2. Purpose and expected outcome
Purpose: Build of a 14 m composite two-cabin cruising sailing yacht, design category B under ISO 12217.
Expected outcome: A yacht built to the attached specification and drawings; light displacement within ±5% (price reduction beyond it, rejection right past a set threshold); speed under power committed (e.g. at least 7.5 knots at 2,800 rpm, half load, calm water); acceptance criteria met; CE declaration and owner's manual delivered.
The outcome is written so it can be measured; "in good condition" is not an outcome.
3. Scope: included, excluded, assumptions
| Item | Status |
|---|---|
| Design, scantlings (ISO 12215), stability (ISO 12217) | Included |
| Moulds, laminating, deck, interior | Included |
| Machinery, electrics, plumbing, fuel system | Included, specification annex |
| Rig and sails | Included, make/model in spec |
| CE conformity route and notified body fee | Included |
| Navigation electronics | Option, priced separately |
| Delivery to handover port | Excluded |
Assumptions: every assumption behind the price (access, existing condition, material availability) is written down. If one fails, a variation follows, not a surprise.
4. Method and standards
Structure is calculated to ISO 12215 or the chosen class rules and attached with the laminate schedule. For composite, the production method (hand lay-up or infusion), resin system and shop temperature and humidity limits are stated; for metal, the welding procedure and welder qualification. Stability is shown to ISO 12217.
Standard clauses
Competence, owner requirements, price structure, variation procedure, delay, disputes: these clauses are the same in every type of quote; their full text is in the refit proposal sample.
7. Process, programme and hold points
| Stage | Work and hold point | Time |
|---|---|---|
| 1 | Contract, specification and drawing approval | Month 0-1 |
| 2 | Moulds and hull laminate, thickness readings | Month 2-5 |
| 3 | Structure and hull-deck joint, hold point | Month 5-7 |
| 4 | Systems installation, hold point | Month 7-10 |
| 5 | Machinery, drive and rig | Month 10-12 |
| 6 | Launch, sea trial, weighing | Month 12-13 |
| 7 | Acceptance, snag list, handover | Month 13-14 |
At a hold point work stops; it does not continue until the owner or their representative has seen it.
8. Tools, equipment and materials
The materials list is tied to the specification's section numbers. Laminate thickness is measured on through-hull cut-outs; paint dry film thickness is recorded for every coat. Weight is tracked through the build by the weight estimate and verified after launch by weighing or an inclining test.
11. Payment schedule
30% on signing (against an advance-payment bank guarantee, or registration of the hull/materials in the owner's name) · 20% hull laminate verified · 15% hull-deck joint · 15% systems installed · 10% launch · 10% acceptance (half released when snags are closed)
Each payment depends on the stage being verified complete by photos and measurements.
12. Acceptance and handover
- Acceptance criteria (readings, tests, sea-trial values)
- Numbered, photographed snag list with close-out date
- Documents: warranties, manuals, test records, drawings
13. Warranty
Systems and workmanship 24 months (the statutory minimum anyway where the buyer is a consumer); 3-5 years for hull structure and watertightness, negotiated separately; manufacturer-warranted equipment on maker's terms, coordinated by the yard. The warranty runs from acceptance. Response time for warranty work is stated.
14. Risk, insurance and title
The yard's construction insurance and sum insured for the boat and materials under construction are stated. When title passes is written plainly: registration in the register of ships under construction where the size allows, or minuted allocation of hull and materials to the owner. An advance-payment bank guarantee protects against the yard's financial difficulty.
2. Clauses Against Bad Faith and Abuse
The full list of clauses protecting owner and contractor, drawn from the disputes that recur most in the trade, is in the refit proposal sample. All of them apply to this type of quote too.
Clauses Specific to a New Build
Because payment comes before the boat exists, these clauses, absent from refit and repair quotes, are written into a build quote:
- Weight commitment: light displacement tolerance, price reduction beyond it and a rejection right past a threshold; the method (weighing or inclining test).
- Speed and consumption commitment: with loading, sea state and method; reciprocal runs on the same line averaged.
- Owner-supplied equipment: delivery date, installation interface and who holds the warranty.
- Design and mould rights: who owns drawings and moulds, and whether the same boat may be built for others.
- Place of delivery: the yard's quay or the owner's port; whether the delivery passage is included.
3. Red Flags in a Quote
General warning signs for any quote are in the refit sample. In this type of quote, also watch for:
- No weight or speed commitment.
- An advance paid without a guarantee or allocation of materials.
- Mould and design rights not stated.
- A delivery date written as "approximately", with no delay clause.
4. Working in Turkey: Local Practice
The full list of items Turkish yard and marina practice requires in a quote (currency and tax, stamp duty, yard charges, right of retention, contract for work) is in the refit proposal sample. For this type of document the key points are:
- Title: the register of ships under construction, or minuted allocation of materials.
- CE: the Recreational Craft Regulation; notified body and handover documents.
- Exchange rate: over a long build, which day's rate applies to each stage payment.
5. International References and Trade Practice
International references and trade practice are listed together in the refit proposal sample.
Related Pages
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