Ship Construction and Conversion
Our experience in the negotiation of shipbuilding contracts covers nearly all types of vessels, from standard bulk carriers to the most sophisticated offshore vessels. We have assisted clients constructing vessels worldwide in all major shipbuilding centers, and have particular experience in China and Korea.
We have significant experience in offshore construction contracts, principally for floating equipment such as drilling and production units and vessels. We also understand the particular dynamics of the offshore drilling market, specifically the construction of newbuilding drilling rigs and drillships.
We provide all necessary assistance predominantly from our London office, but we also regularly accompany clients to shipyards worldwide to provide on-site assistance to the client’s negotiating team. We focus on helping every client achieve a contract that works for them, the shipyard, and crucially, any financing bank that may be involved. We make sure that the client’s pre-delivery payments to the shipyard are properly secured by appropriate and bankable refund security.
Our deep understanding of shipbuilding markets and trends, coupled with a significant knowledge of shipbuilding contract law, enables us to ensure that our clients’ contracts are negotiated and concluded at minimal cost, within tight deadlines and on the basis of a realistic and balanced allocation of the commercial and technical risks inherent in newbuilding and conversion projects. Our approach is constructive and realistic, and our lawyers understand our clients’ newbuilding and conversion objectives and the commercial and market framework in which these need to be achieved.
BIMCO has launched CONVERSIONCON, a standard form conversion contract for the conversion of ships. Ship conversion typically occurs in two scenarios: when a shipowner expects future hire or freight rates will not justify incurring the capital costs of a newbuilding to service a particular opportunity and decides instead to convert an existing vessel; or where an existing vessel can be repurposed t [...]