News

Recommendations:

Upon review and reflection of the overall feedback received, we’ve identified six areas ripe for improvement:

1. Safety and security

Although existing safety and security
records are considered a critical factor
in yard choice by captains, these are not
easily accessible.

Shipyards should provide a compre-
hensive security briefing, clearly out-
lining shipyard protocols, crew proce-
dures and on-site safety measures which
should also include a complete summary
of do’s and don’ts for crew in the local
area. It’s critical that captains and crew
are given local knowledge such as flagging
up any areas that should be avoided.
Making safety and security records
more transparent, easily comparable and
readily available will enable stake-
holders to fairly consider this factor
in the decision-making process. There
should be a consideration to set up a
standardised way of reporting safety
and security through external audit or
similar.

Cybersecurity and data protection is a
significant concern, and stronger protec-
tion measures are essential.

2. Quotations, change orders
and invoicing

Invoicing has become incredibly com-
plicated and hard to understand. Clear
and simple invoicing, transparent and
understandable, is critical. Consider
following the yacht’s nomenclature and
numbering system rather than forcing
the vessel to adapt to the yard system.
Providing a detailed and accurate
quote is time-consuming and requires
significant investment by the yard.

Consider having paid quotes on the
most significant jobs to ensure that the
potential client is seriously considering
the yard as an option (a portion of the
amount can be deducted from the
eventual invoice if the vessel does come
to the facility).

This will give the shipyard
confidence that they are not wasting
their time. In turn, it will lead to better
and more accurate quoting, which will
generate more confidence in the market.
The majority of captains continue
to experience a marked

divergence between quotes and invoicing.
Although all parties understand there may be
newly discovered works, refit yards
must do better with quoting. Exclusions,
although helpful to delineate scope, have
become – in the eyes of our clients – a
way to obfuscate real costs. This must
change.

Efficient and effective communica-
tion is key. Additional works must be
priced and conveyed quickly. Any sche-
dule changes must be communicated at
the same time.

Captains and owners’ representatives
are looking for increased transparency
in pricing. If there’s agreement on time
and materials, clients are looking for
time sheets with hours clearly tracked.
Consider working more on an open-book
basis. There’s a clear demand for trans-
parency and openness in pricing. If ship-
yards and the client could make reason-
able provisions for profitability, open
books may be a positive way to move
forward with certain refit periods.

3. Contracts

A number of respondents currently report
that a yard choice has been derailed due
to contract negotiations. Some of the
agreed contract templates are perceived
by some owners’ representatives as
having excluded the owner viewpoint.
A more balanced contract structure,
developed through a working group
that includes owners’ representatives,
yards, insurers, attorneys and other
stakeholders could help to address this
imbalance.
There are some areas in which
responsibility is unclear; this negatively
affects safety and security. Clearer delin-
eation of all responsibilities while at
a yard facility is critical not only for
contractual purposes, but also to ensure
that sufficient safety procedures are put
in place and followed by the responsible
party.

4. Regulations and Class societies

Owners’ representatives expressed an
interest in exploring whether there can
be different relationships between refit
shipyards and Class. As a build yard can
be approved for a build, might there be
similar ways to proceed with refit yards?
Are there ways to use regulations, Class
or other bodies to set standards that
are measurable for more transparency?
This could be for security, sustainability,
aftersales and a variety of other things.

5. Crew facilities

There’s a growing focus on health and
mental health for crew. A focus is on
providing options to keep crew healthy
and active such as fitness classes and
padel courts. Having affordable housing
options is a priority, and site development
should generally include a plan for
affordable crew/contractor housing. A
focus on wellness naturally shifts the
crew’s attention from less healthy activities
and supports long-term health as well as crew
retention.

6. Skilled labour and talent

Facilities are increasing in size and
capacity at the same time that many
skilled project managers and labourers
are retiring because of age. Clients report
experiencing a decrease in quality overall,
especially in project management. Clients
report not having sufficient labourers to
cater to their needs and having project
managers without the necessary time to
devote to the vessel.
A serious commitment and investment
must be made into robust training
programmes at all levels. Shipyards should
collaborate and cooperate on such
programmes to raise the overall offering
internationally.

These recommendations aim to
address key challenges and, therefore,
strengthen the overall refit experience
for clients. This summary is just the start
of the conversation. The Refit Advisory
Group will continue to engage in action
on these points