9 Steps to Building a New Yacht

Building a new yacht is a challenging process, and each step is critical, from defining the needs and crafting the design, to choosing a yard and signing a contract, to constructing and building the yacht and completing the delivery. In this guide, we will detail the 9 key steps in building a new yacht.

Define the client's needs

If you are planning to build a new yacht, the first step is to define the client's needs. The key characteristics of the yacht, as well as the performance criteria, will not only influence the overall design of the yacht and the price range, but will also determine the most suitable shipyard to build the new yacht. Therefore, before starting the construction of a new yacht, the client needs to express his personal thoughts and opinions to the building team.

Ideas such as the type of yacht the client would like to own, the seas they plan to sail in, the speeds they expect to reach, how many people they intend to carry, what water recreation facilities they prefer, and what equipment they would like to equip and store on board will determine the design style and specifications of the yacht.

Designing the yacht concept

For most clients, this step is exciting. Clients need to find a designer they admire and trust, one who not only understands and expands on the owner's needs, but also takes into account the practicality of the yacht in the real world of sailing. Clients can think about whether they have ever seen a yacht they liked that was built by a specific designer or by a shipyard, so that they can clarify whether they are seeking a production yacht, a semi-custom yacht or a fully customized yacht, with different types of yachts having different requirements when it comes to design and construction.

Developing a yacht specification

If a client wants a fully customized yacht design, then it is very important to draw up a detailed specification that will be used to tender to the shipyard. This is because it is important to engage experienced owner's representatives, engineers and shipbuilders in the early stages of the construction of the yacht, as these professionals can draw on their expertise to develop a comprehensive and accurate tender specification to ensure that subsequent tenders run smoothly.

If the client prefers a production or semi-custom yacht, the shipyard will generally provide a ready-made specification for the client to review, and the client can then make the necessary changes to the project according to their own needs and subsequently submit it to the shipyard for approval. Generally speaking, if changes to the shipyard's established specifications are involved, both parties will often engage in in-depth discussion and negotiation to

Choosing the right shipyard

When selecting a shipyard, people often prefer to identify a specific shipyard by virtue of brand recognition or based on their past experience of working with it. However, before a formal invitation to tender is issued, the shipyard's financial position needs to be carefully examined to confirm that they have sufficient funds to support the smooth progress of the project. It is also important to confirm insurance coverage to protect against all risks during the construction of the yacht. In addition, the professionalism of the shipyard's team should be carefully assessed to ensure that they can build a quality product that meets the needs. The quality of past projects can be examined to understand the level of craftsmanship of the shipyard so that the right one can be selected.

Issue a tender

In a fully customized yacht building project, the tendering stage is very important and depends largely on the commercial knowledge of the person communicating with the selected shipyard. When issuing a tender, a well-prepared and accurate tender package is prepared and distributed to qualified and experienced shipyards, in order to attract bids from those who are truly capable of undertaking the project.

Contract Negotiation and Signing

The process can take several months from start to finish. This is a critical stage and progress can be rapid, so the process needs to be carefully managed to ensure that everyone is kept informed of progress. Even if there is pressure to get a contract in place as soon as possible, there is a need to ensure that the build specification is aligned with the yacht construction contract, as any minor amendment to the contract can add significant additional time and cost to the subsequent construction phase. To effectively minimize the risk of subsequent problems, the owner's team, the shipyard and a maritime lawyer experienced in large yacht construction contracts need to work closely together.

The Construction Phase

During the construction phase of building a new yacht, the owner's representative and technical support needs to be on site as early as possible. The owner's representative is primarily responsible for the commercial administration of the contract, including monitoring the construction progress, signing off on instalments and negotiating delay claims. The client should also receive regular monthly reports on the progress of the works and a clear understanding of the tasks and inputs required from the owner, suppliers, project designers and delivery team. Technical support includes the selection of subcontractors supplied by the owner, management of in-house outfitting and inspection of the entire construction process.

Sea trials

Once the construction of a new yacht has been completed, the sea trials stage is very important and is one of the most anticipated and exciting parts of the shipyard. This is the stage where the client and his team, the captain and the crew are able to experience and test the results of years of hard work. During sea trials, all subcontractors and suppliers involved in the construction of the yacht are also present to ensure that all systems are working optimally. The time required for sea trials varies for different types of yachts. For an average yacht, sea trials may take as little as one day, whereas for more complex yachts, they may take several days.

Acceptance and delivery

At this stage, the client and their representatives, lawyers and the shipyard will work together to finalize the specific details of acceptance and delivery. This includes going through and listing all outstanding work in detail, as well as planning for the warranty phase and clarifying warranty coverage. A Memorandum of Understanding (MOU) will also need to be agreed for any outstanding work, if any. Once these steps have been completed, the yacht is registered and handed over to the client, which marks the completion of the delivery of the entire yacht building project.