5. Because of high Chinese productivity, Intra-Asia container
service growth is about 10.4% per year (highest in the world).
So, demand of vessels for regional operation is also high.
Intra-Asia
10.4% p.a.
Europe-Asia
9.4% p.a.
Trans-Pasific
7.2% p.a.
Others
6.9% p.a.
Highest in
the world
Regional Shipbuilding Scope
Cdre Muzib, psc, PhD
8. Shipbuilding CYCLE …..
C
Decline
A
Flat
A
Flat
B
Upturn
Cdre Muzib, psc, PhD
The shipbuilding industry is a
cyclic industry. It is dependent
upon the world economy and
especially the fortunes of the
shipping industry. This can be
seen more clearly as freight rates
fluctuate and maritime trades
diminish - both have experienced
drastic reductions in 2008 and
2009. This has had a strong
impact on the shipbuilding
industry.
10. Major Parties for Shipbuilding
• Owner
• Builder
• Charterer
• Insurance company
• Flag States
• Port States
• IMO and related regulatory bodies
• Classification Societies
• Financial Institutions
Cdre Muzib, psc, PhD
11. Elements of Ship’s Life Cycle Cost
• Raw Material cost
• Machinery/Equipment cost
• Design cost
• Classification Society cost
• Fabrication /Assembly cost
• Registration cost
• Operating cost
• Maintenance cost
• Salvage value
Initial
cost
Life cycle
cost
Cdre Muzib, psc, PhD
12. Investment in a ship of a given specification
usually involves four main factors:
(1) shipbuilding cost,
(2) operating expenses in the trade,
(3) cargo and passenger traffic volume, and
(4) level of tariffs applicable to the traffic forecasts.
Cdre Muzib, psc, PhD
14. Buyers’ Market
• Low prices
• Early delivery
• Attractive financing terms
• Proactive engineering
• Yard flexibility
• Buyers’ contract terms
Cdre Muzib, psc, PhD
• High prices
• Long delivery
• Little or no yard financing
• Sellers’ terms in contract
• Inflexibility
Sellers’ Market
15. Ship-owner Acquisition Process:
• Analysis of the marine transportation market
• Identification of a business opportunity
• Study of the fleet of ship(s) required
• Characterization of the ship (Concept Design)
• Analysis of the possible alternatives:
– Relocation of a ship from the existing Owner fleet
– Freight of a ship
– Acquisition of an existing ship (2nd hand)
– Building a new ship
• Selection of the Consultant/Designer
• Development of the Preliminary Design
Cdre Muzib, psc, PhD
16. Commercial processes of the Ship-owner for
new building:
• Selection of the Yards
• Request for a declaration of interest from the Yards
• Send enquiries with request for quotation
• Analysis of the proposals from the yards
• Preparation of contract pro-forma
• Negotiation
• Discussion of the type of financing
• Signature of the shipbuilding contract
• Follow-up of the construction
• Reception of the ship
Cdre Muzib, psc, PhD
19. ALUMINUM HPB BUILT BY DEW FOR COAST GUARD
Length OA 17.47 m.
Breadth (max) 5.51 m.
Draught (moulded) 1.40 m.
Displacement 25 tonnes.
Cruising Speed 20 knots.
Maximum Speed 34 knots.
Mission Length 350 Nm.
Cost per vessel: Tk 14.6 crore
How much for hull?
Cdre Muzib, psc, PhD
20. Costing of a FP Boat
Description Cost (%)
Design & Drawing 1.67
Supervision 2.03
Hull and Superstructure 19.76
Machinery, System and fittings 53.19
Navigation, Life Saving & Fire Fighting 15.20
Insurance 1.42
Spare parts and Miscellaneous Cost 6.74
Total Cost 100
Cdre Muzib, psc, PhD
21. COSTING OF A CARGO SHIP OF 1500 DWT
Description Cost (%)
Design & Drawing 1.5
Supervision 2.0
Hull and Superstructure 14.0
Machinery, System and fittings 65.0
Navigation, Life Saving & Fire Fighting 10.0
Insurance 1.0
Spare parts and Miscellaneous Cost 6.5
Total Cost 100.0
Cdre Muzib, psc, PhD
22. Shipbuilding Costs and Competitiveness
The price competitiveness of a shipyard broadly depends on:
Material supply,
Facilities,
Skilled labor,
Wages,
Labor productivity,
Exchange rates, and
Subsidy
Cdre Muzib, psc, PhD
23. Factors in Selecting Yards for Invitation
• Physical characteristics
• Technical capabilities
• Experience
• Order book
• Employment
• Location
• Ability to assist financing
• Reputation
• References
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24. Request for Expression of Interest
• Simple and brief inquiry.
• Sent by e-mail or fax.
• Saves time and effort.
• Permits assessment of number of yards
participating.
Cdre Muzib, psc, PhD
25. Invitation to Bid
• Best process.
• Make/create legal obligations.
• Not to be used to develop price estimates.
• Use standard formats.
• Formality is required.
• Use bid form.
Cdre Muzib, psc, PhD
26. Information to be Sent in Invitation to Bid
• Brief description of vessel.
• Name and address of person requesting proposal.
• Number of vessels and options (if any).
• Documents: Plans, Specifications, Pro-forma contract or
Heads of Agreement.
• Required delivery.
• Requirement for cash price.
• Currency.
• Financing terms.
• Confidentiality of owner’s documents.
• Performance bond (if any).
• Period of validity of bid.
• Obligations on owner concerning bids.
• Signature by authorized representative.
Cdre Muzib, psc, PhD
27. • Additional yard information
- Quality information
- Yard standard details
- Current order book
- Financial statement
- Bank reference
- Management plan
- Technical plan
- Major event schedule
• Complete bid form
Cdre Muzib, psc, PhD
28. Tips in Bidding
• Hold bidders’ conference.
• Use agenda, if necessary.
• Be firm on submittal date.
• Create short list.
• Be courteous and fair.
• Ensure ethical practices.
Cdre Muzib, psc, PhD
29. Bid Analysis
• Price for one vessel
• Price for a multiple vessel order
• Currency of payment
• Additional cost for financing
• Location of yard (and distance to where vessel or
vessels will be deployed)
• Cost of positioning vessel
• Reputation, experience and quality of yard
• Financial health of yard
• Proposed building schedule
• Owner’s costs as they relate to yard location (i.e.
inspectors’ housing, travel, taxes, etc.).
Cdre Muzib, psc, PhD
30. Negotiations
• Have primary bidder and two back-up bidders.
• Beware of driving bidder below level of profitability.
• Be well informed and prepared.
• Be aware of legal obligations in negotiating stage.
• Have at total and complete meeting of the minds.
• Yard to take total responsibility for design.
• Avoid split responsibilities.
• Review, in detail, all documents and initial every
page of:
- Contract
- Specifications
- Drawings
Cdre Muzib, psc, PhD
31. Tips in Negotiating
• Be fair.
• Be patient.
• Be firm, until it is absolutely
necessary to be flexible.
• Take enough time for the process.
Cdre Muzib, psc, PhD
32. McCormack’s Rules for Negotiating
• Do not get stranded by “how much”. Money
issues are only one part of the transaction.
• Let the other party go first (with terms and
numbers).
• Play in majors.
• Do not deal in round numbers.
• Avoid showdowns.
• Negotiate backwards.
• Trade places.
• Mollify then modify.
• Deflect with a question.
• Question positions but do not ignore them.
Cdre Muzib, psc, PhD
33. McCormack’s Rules for Negotiating
(Cont’d.)
• Improve the offer with other parties’ self interest.
• Consider barter.
• Keep your time frame quiet.
• Step back and relax.
• See emotional outbursts as opportunities.
• Act in anger – never react in anger.
• Give the other parties side victories.
• Use candor.
Cdre Muzib, psc, PhD
34. Silbiger’s Rules for
Negotiating
• Know your opponent.
• Know yourself.
• Do your homework.
• Understand your strategy.
• Understand your limits.
• Review your negotiations, afterwards.
Cdre Muzib, psc, PhD
35. Shipbuilding Is
Governed By Many Laws
• Contract law
• Other laws:
- tort
- fraud
- negligence
- employment/labour
- environmental
- etc.
Cdre Muzib, psc, PhD
36. CONTRACTS
Contract is a legal document, an agreement between two parties to do
something.
There are many types of contracts. The major two types are Cost Plus
Fixed Fee and Fixed Price.
Commercial ship contracts are usually fixed price. Even though there are
many standard contracts they are usually customized during final
negotiations.
A cost-plus-fixed-fee contract is a cost-reimbursement contract that
provides for payment to the contractor of a negotiated fee that is fixed at
the inception of the contract.
The fixed fee does not vary with actual cost, but may be adjusted as a
result of changes in the work to be performed under the contract.
Cdre Muzib, psc, PhD
37. SPECIFICATIONS
The Specification describes the technical and commercial
requirements of the ship along with the Contract. Here,
drawings are used as the control documents for further
development of design, construction, testing and delivery of
the ship.
Two best known specifications are the US Navy's GEN
SPECS and the old MarAd Standard Specifications.
Cdre Muzib, psc, PhD
38. Conditions for a Contract
• An offer
• An acceptance
• Consideration
• Intent to create a legal relationship
• In writing (sometimes oral)
• Parties are competent
• Form required by law
• Not impossible of performance
• Not contravene law or public policy
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39. An Offer
• Complete
• Free of ambiguities
• Properly communicated
• Fixed time of acceptance (or kept open for a reasonable time)
• May be revoked before acceptance.
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An Acceptance
• Creates the binding contract
• Must be absolute and complete
• Qualified or conditional is NOT an acceptance (it is a counter offer).
• Silence is NOT an acceptance.
A Contract May Be Void for :
• Material misrepresentations
• Fraud
• Duress
• Improper conduct
40. Contracting
Why it can be complicated
• International transaction
• Different laws:
- construction/building
- provision of services
- sale of goods
• More than 2 parties
• Much money
• Obligation may occur early, during
- bidding phase
- negotiations
• Constantly changing
- laws
- interpretations of law
- tax regulations
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41. Contracting
• Written (usually)
• Involves legal advice and assistance
• Often starts with “Heads of Agreement”
and a “pro forma” contract
• Sometimes letter of understanding
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45. Interested parties in addition to
the Builder and the Buyer
Among such parties you may find:
– Contractors
– Authorities
– Insurance companies
– Financial institutions
– Charterers
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46. • It is a legal document prepared by the technical staff
of the contracting parties and the final version should
be reviewed by lawyers.
• It consists of a set of terms (clauses) and some
enclosures.
• The terms identify the contracting parties and define
the conditions of the business transaction.
• The enclosures:
– Price and payment conditions
– Compensation
– Milestones
– Specification
– Drawings
Shipbuilding Contract
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48. Basic Elements of a
Shipbuilding Contract
• The parties
• What is to be done
• Price
• Delivery
• Guarantees
• Tests
• Change procedures
• Right to reject
• Default
• Title
• Jurisdiction
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49. Shipbuilding contracts
A few topics worth focusing on, apart from main
dimensions and characteristics, speed, warranty of
quality etc. :
– Design responsibility
– Buyer’s supplies
– Contingency fund
– Buyers representative
– Security for instalments paid to the Builder by the Purchaser
– Who is the Owner during the building period
Cdre Muzib, psc, PhD
50. Shipbuilding Contract
• In most new buildings, conversions and repairs, it is the
builder who issues the first draft of contract.
• The Contract is generally based on a pro-forma document. The
most common pro-forma for Shipbuilding Contracts are:
– SAJ, Shipowners Association of Japan (1974)
– Norwegian Associations of Shipowners and Shipbuilders (2000)
– MARAD Standard Form (1980), Maritime Subsidy Board (MSB)
of US Department of Commerce
– BIMCO NEWBUILDCON, Baltic and International Maritime
Council (2007)
- AWES (1972), Association of West European Shipbuilders,
currently designated CESA – Committee of European
Shipyards’ Associations (2004)
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51. Shipbuilding – standard contracts
• Yard friendly contracts
SAJ Form – Japanese Shipbuilders. Often adjusted, but need to be
adjusted to secure balance
AWES Form – Association of West European Shipbuilders
Norwegian standard Shipbuilding Contract
• Buyer friendly contracts
Few owners do have their own standard, but those who have need
to be a major in order to gain accept for such a document
• Agreed contracts
Standard form Shipbuilding Contract 2000 – considered to be
balanced
Bimco’s Newbuildcon 2007. Differently organized but risk wise
meant to be in line with Standard form Shipbuilding Contract 2000
Does market competition means anything for the content of
a shipbuilding contract?
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52. • A Comparison of Standard Form Shipbuilding Contracts
Cdre Muzib, psc, PhD
54. FOB (Free On Board or Freight On Board)
FOB means that the cost of delivering the goods to the nearest
port is included. It is a term in international commercial law
specifying at what point the seller transfers ownership of the
goods to the buyer. It indicates whether the seller or the buyer
has liability for goods that are damaged or destroyed during
shipment between the two parties.
"FOB shipping point" (or origin) means that the buyer is at risk
while the goods are shipped, and "FOB destination" states that
the seller retains the risk of loss until the goods reach the
buyer.
Under the Incoterms 2010 standard published by the
International Chamber of Commerce, FOB is only used in non-
containerized sea freight, and also defines ownership transfer.
Cdre Muzib, psc, PhD
55. CFR: Cost and Freight, or C&F, or CNF
Definition: This acronym means that the seller covers all
the costs of bringing goods from their origin to the port of
destination, including carriage costs and clearing the goods
for export except for the insurance.
Note: Even though the seller takes care of the actual loading
and transportation of goods up to the port of destination, the
buyer pays the insurance (and therefore assumes the risk)
from the moment the goods are loaded onto the vessel at
the port of origin throughout their transit to the port of
destination and beyond. This term is used exclusively for
maritime and inland waterway trade.
Cdre Muzib, psc, PhD
56. CIF: Cost Insurance and Freight
Definition: This term is identical to CFR with exception for the
insurance portion. With a CIF arrangement, the seller (not the
buyer) assumes the risk (and therefore is responsible for
purchasing insurance) for the goods during transit from origin
to the port of destination.
Note: This term too applies solely to maritime and inland
waterway trade. However, CIF may not be appropriate where
the goods are handed over to the carrier before they are
loaded on the vessel – the usual container scenario.
Cdre Muzib, psc, PhD
57. CPT: Carriage Paid To
Definition: This term indicates that the seller assumes most
of the cost of transportation of the goods including export fees,
carriage charges, and fees at the port of destination. Seller
does not pay for insurance – that is the buyer’s obligation.
Note: The moment that the risk of loss or damage is
transferred from seller to buyer is when the goods are loaded
onto the first carrier vessel, despite the seller paying the
carriage charges. CPT can be used for all modes of
transportation, including container or roll-on roll-off traffic.
Cdre Muzib, psc, PhD
58. CIP: Carriage and Insurance Paid To
Definition: Carriage and insurance paid is much like CPT in
that the seller assumes most of the costs of transportation
including export fees, carriage charges, and fees at port of
destination. For CIP arrangements, however, the seller is
responsible for purchasing insurance for the goods during
the carriage.
Note: While the seller is required to buy insurance for the
carriage, the risk of loss or damage is transferred from
seller to buyer when the goods are loaded onto the first
carrier vessel. CIP can be used for all modes of transport
but is most common for intermodal (i.e. container) shipping.
Cdre Muzib, psc, PhD
59. • Force Majeure
– Means any event or occurrence beyond the reasonable
control and without guilt or negligence from the Seller that he
didn't manage to avoid or bypass
– Can include for instance, natural disasters, floods, storms,
aggravated weather conditions and other Acts of God, fires,
explosions, riots, wars, sabotage, labor problems of the Seller
(including strikes, but excluding lockouts), energy blackouts,
and acts of the government.
• Default by Contractor (Incomprimento pelo Contractado)
– Defines the procedure in the case of non compliance with
critical requirements (speed, cargo capacity,...)
– Establish penalties and limits of acceptance of the ship
Shipbuilding Contract: Special Clause
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60. Payment Terms:
• Independently from the type of financing, the payment of the
ship to the Builder is generally composed by installments in
function of the progress of the construction, in accordance to
the stated in the Contract.
• A typical installment plan can be as follows:
– 10% at Contract Signature
– 10% at Materials Arrival
– 10 % at Keel Laying
– 20% at Launching
– 50% at Delivery/Acceptance
Shipbuilding Contract: Special Clause
Cdre Muzib, psc, PhD
61. Bona fide. "Good faith". This is a legal term that comes
from the Latin language and suggests honesty or sincerity.
For example, in negotiations for a charter fixture one side
must give bona fide information about the ship or the cargo
to the other side.
Shipbuilding Contract: Special Clause
Cdre Muzib, psc, PhD
62. Breach of contract. A contract contains obligations of each of the
parties to the agreement. If these obligations are not carried out or
not performed or, if performed badly, a breach of contract occurs. The
result of the breach depends on how important the obligation is to the
purpose of the contract. If the breach is very serious, (originally called
a "breach of condition") the innocent party may be able to repudiate
or cancel the contract and possibly also claim for money
compensation, called "damages". If the party committing the breach is
in the process of performing the contract, he may be reduced to the
status of a common carrier and lose any protection he may have
enjoyed under the contract, e.g., the right to limit his liability for loss or
damage to the cargo. If the breach is not so serious and can be cured
by money compensation alone, the breach may be called a "breach of
warranty" and the remedy would be damages. After 1980, it is
unhelpful to refer to a rigid distinction between "condition" and
"warranty and the phrase "in nominate clause" can be used to
describe the obligation in a contract which can be breached.
Shipbuilding Contract: Special Clause
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63. Shipbuilding Contracts – the future
• Even more competition
• Labour costs
• Subsidies
• Japan >> Korea >> China >>? Where – not necessarily in just
one country
• Who sets the standard ?
• Environmental requirements – need for long term strategy
• Other risk factors
Cdre Muzib, psc, PhD
64. Repair Contracts
• In general some basic differences regarding facts and
power to negotiate when comparing with
shipbuilding
• Formalities – efficiencies and thoroughness; advice
and decisions – who decides?
• Standard contracts ?
• General conditions of individual repair contracts
• Scope of work sometimes more difficult to define
compared with shipbuilding contracts. Why?
• What about quality of work?
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65. Repair Contracts
• Delivery time
• Price and manner of payment
• Sanctions available for breach of contract
• Other damages
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66. Contract Execution
• Specialized Management Techniques
• To Plan and Control Projects
• To Complete Defined Work
• On Schedule
• Within Budget
• Meet Quality Constraints
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67. Important issues in Project execution
• Fulfill original objectives
• Keep project within budget
• Keep project on schedule
• Coordinate project team
• Detect need for and take corrective action
• Communicate progress to management
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68. Define The Project
• State objectives and goals
• Prepare mission statement
• Develop work plan
• Create Work Breakdown Structure
Document (WBSD)
Project is planned with interrelated tasks to be executed
over a fixed period and within certain cost and other
limitations. Defining project do the followings:
Cdre Muzib, psc, PhD
69. Shipbuilding Projects planning as per its type:
• Routine Projects
– Projects which are not substantially different from the
previous ones in the same class.
• Creative Projects
– Projects with substantial differences in the solutions taken,
resulting from the introduction of new options.
• Innovative Projects
– Projects with substantial differences in the solutions taken,
resulting from the introduction of options and values of
variables outside of the interval normally used.
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70. Establish The Schedule for Project
• Define Tasks
• Select milestones
• Define interrelationships
• Establish timing and deadlines
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71. Prepare Budget
• Identify or estimate all costs
• Allow for margins/contingencies
• Establish timing of expenses
• Adopt financial controls
• Obtain approvals
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72. Team Budget Elements
• Wages
• Benefits
• Local taxes – if any
• Global taxes – if any
• Travel expenses
• Supplies and equipment
• Communication costs
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73. Owner’s Expense Budget
• Owner furnished equipment
• Crew costs
• Professional costs
– Legal
– Accounting
– Technical
• Stores and supplies
• Fuel and lube
• Entertainment and ceremonies
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74. Team
• Select and recruit team leader
• Develop team position/tasks
• Establish timing for each
• Recruit members
• Indoctrinate
• Delegate
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75. Managing Your Team
• Staying in control
• Evaluating your team
• Identifying and dealing with different
personality types
• Motivating your team
• Managing clients
• Effective team organization
Cdre Muzib, psc, PhD
76. Control Project
• Communicate
• Coordinate
• Meetings – scheduled and unscheduled
• Review and audit
• Make adjustments/corrections as
necessary
• Document
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77. Project Control Techniques
• Full wall scale charts
• Gantt charts [ bar chart devised by Henry Gantt
in the 1910s that illustrates a project schedule]
• PERT [Program Evaluation Review Technique
developed by the U.S. Navy in the 1950s to
manage the construction program]
• CPM [Critical Path Method developed for project
management in the private sector at the same
time]
Cdre Muzib, psc, PhD
78. Cdre Muzib, psc, PhD
BASIS FOR COMPARISON PERT CPM
Meaning PERT is a project management
technique, used to manage
uncertain activities of a project.
CPM is a statistical technique of
project management that manages
well defined activities of a project.
What is it? A technique of planning and
control of time.
A method to control cost and time.
Orientation Event-oriented Activity-oriented
Evolution Evolved as Research &
Development project
Evolved as Construction project
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off
Estimates Three time estimates One time estimate
Appropriate for High precision time estimate Reasonable time estimate
Management of Unpredictable Activities Predictable activities
Nature of jobs Non-repetitive nature Repetitive nature
Critical and Non-critical
activities
No differentiation Differentiated
Suitable for Research and Development
Project
Non-research projects like civil
construction, ship building etc.
Crashing concept Not Applicable Applicable
81. Cdre Muzib, psc, PhD
There are 6 steps to the Critical Path Method:
1. Divide the project into tasks or Specify Each Activity
2. Estimate Dependencies and Activity Sequence
3. Create the network diagram
4. Estimate Activity Completion duration/Time and Draw initial Gantt
(bar) chart
5. Perform resource leveling and Identify the Critical Path
6. Compress the schedule (if necessary)
82. Monitor Critical Elements
• Require production statistics
• Monitor milestones
• Watch critical paths
• Identify choke points/bottlenecks
• Make projections/extrapolations
• Anticipate problems
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83. When Things Go Wrong
• Identify real problems
• Get input from team
• Investigate thoroughly
• Analyze possible solutions
• Take timely corrective action
• Meet with yard
• Communicate with stakeholders
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84. Tips for effective project execution
• Delegate effectively
• Be a good listener
• Be fair with everyone
• Use good time management
• Avoid bureaucracy
• Be decisive and clear
• Communicate thoroughly
• Insist on ethical behavior
Cdre Muzib, psc, PhD
85. Inspectors /surveyor to inspect
• Hull materials , fabrication and erection
• Machinery, installation and performance test
• Coating materials, application and film thickness
• Welder quality, welding quality, NDT tests etc
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86. Delivery and Acceptance
• Title passes when
- physically delivered
- at another time, if both parties contractually agree
- vessel registered
- execution of bill of sale
- when both parties so declare
- when ship is in a “deliverable” state
- bill is paid
- builder completes his performance progressively
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87. Post Project Activities
• Deficiencies
• Unfinished work
• Temporary and permanent documents
• Warranty and guaranty
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88. Classification Societies
The purpose of a Classification Society is to provide
classification and statutory services and assistance to the
maritime industry and regulatory bodies as regards maritime
safety and pollution prevention, based on the accumulation of
maritime knowledge and technology.
Objective of ship classification is to verify the structural
strength and integrity of essential parts of the ship’s hull and
its appendages, and the reliability and function of the
propulsion and steering systems, power generation and those
other features and auxiliary systems which have been built
into the ship in order to maintain essential services on board.
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89. The Role of Classification Societies
• Construction Standards
- Rules
- Survey
• Maintenance and Repair Standards
- Rules
- Survey
• Certification
• Safety Auditing (International Safety Management (ISM) Code meaning the
International Management Code for the Safe Operation of Ships /SOLAS/IMO)
• Environmental Auditing (International Organization for Standardization (ISO))
• Technical Guidance
• Regulatory – Flag state
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Note:
• Class is not a substitute to an effective project management, inspection
and survey program.
• An owner cannot delegate his responsibility to assure that his vessel is
seaworthy.
90. The members of International Association of Classification
Societies (IACS) are:
1. ABS - American Bureau of Shipping
2. BV - Bureau Veritas
3. CCS - China Classification Society
4. CRS - Croatian Register of Shipping
5. DNV - Det Norske Veritas
6. GL - Germanischer Lloyd
7. IRS - Indian Register of Shipping
8. KR - Korean Register of Shipping
9. LR - Lloyd's Register
10.NK - Nippon Kaiji Kyokai (ClassNK)
11.PRS - Polish Register of Shipping
12.RINA - RINA SERVICES S.p.A., Italy
13.RS - Russian Maritime Register of Shipping
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91. IACS teams are currently developing the new rules under the IMO’s “goal-
based standards” principles.
Based on a proposal by Bahamas and Greece, the IMO Council agreed to
include the development of Goal-Based Standards for shipbuilding into its
Strategic Plan.
The mechanism by which the goal-based standards will be put in place are
as follows:
IMO sets the goals;
IACS develops classification rules and regulations that meet the so-
determined goals;
Industry, including IACS, develops detailed guidelines and
recommendations for wide application in practice.
Common Structure Rules (CSR): Goal-Based Standards
(GBS) for Shipbuilding
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93. Model Basins
• Resistance and Propulsion
- Still water
- Waves
• Seakeeping
• Mooring forces
• Maneuverability
• Forces and motions
• Propeller performance
• Wake field
• Ice breaking
• Wind resistance (wind tunnels)
• Smoke flow (wind tunnels)
Cdre Muzib, psc, PhD
94. The Role of the Manufacturer
in High Tech Equipment
• Technical Information
• Quality Control During Manufacture
• Installation & Start-Up-Support
• Guarantees
• Service
• Stock of Spares
• Crew Training
• Documentation
Cdre Muzib, psc, PhD