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Guidance

Building

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Build

Your Team

10 May 2023

Last revised

minutes

4

Reading time

Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people.

minutes

4

Reading time

10 May 2023

Last revised

Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people.

  • Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential.

  • Small projects allow individuals to combine roles, especially in design.

  • Trusted brokers with industry knowledge add value and may help in maintaining resale value.

  • Exterior and interior designers, naval architects, and project managers are essential team members.


  • Project managers coordinate efforts and seek compromises: some seagoing experience is helpful.

  • Yachts are typically owned through companies for liability and privacy reasons.

  • Cost savings can be achieved through proven hull designs and repurposing existing designs.

  • Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important.

  • Project managers coordinate efforts and seek compromises: some seagoing experience is helpful.

  • Yachts are typically owned through companies for liability and privacy reasons.

  • Cost savings can be achieved through proven hull designs and repurposing existing designs.

  • Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important.

  • Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential.

  • Small projects allow individuals to combine roles, especially in design.

  • Trusted brokers with industry knowledge add value and may help in maintaining resale value.

  • Exterior and interior designers, naval architects, and project managers are essential team members.


superyacht yacht megayacht for sale charter newbuild build building construction owner ownership owners club owner's owners' broker brokerage build captain crew
superyacht yacht megayacht for sale charter newbuild build building construction owner ownership owners club owner's owners' broker brokerage build captain crew

As with the counterparts building trading and passenger vessels, yacht builders tend to be conservative in their outlook. Why change what’s worked before? They’re also in business to make money and will look to save costs where they can – in particular by interpreting poorly-drafted build agreements to suit themselves. To a certain extent, builders’ yards are, in reality, pieces of waterside real estate where a multitude of suppliers and subcontractors come together to create the finished article.


So putting the right team in place is a vital first step, whose members will advise, negotiate and integrate the efforts and wares of countless third parties. And the more exceptional the project, the more exceptional your team needs to be. All the participants need to be involved right from the start and an excellent working relationship must be built up and maintained. The smaller the project, the greater the scope for individuals to combine roles, especially when it comes to the vessel’s design.

KEY TEAM MEMBERS


Having decided on how and where they wish to use their yacht, a trusted broker is the best starting point for some Members. Trusted is the key word here. Brokers usually work on commission. Are they looking to build a relationship which could last many happy years, or are they just looking to complete the next deal? Good brokers will have excellent industry knowledge and will add real value. They are sounding boards for ideas, and arbiters of practicality and good taste: the latter two elements being essential in maintaining resale value.


The next team members to have on board are the exterior and interior designers, plus a naval architect where a custom yacht is envisaged, and a project manager. Designers produce designs, not technical solutions. Even the most accomplished designers won’t know exactly how workable their designs are, and architects don’t always have an eye for design. So a project manager will also be needed to coordinate all their efforts, and – diplomatically – seek compromises here and there. The project manager should have recent seagoing experience, as captain or engineer, on a vessel of similar type and size. Everyone in the team – you included – need honest feedback on what is and isn’t going to work.


Because yachts are sources of liability as well as being assets, and to provide privacy and make accounting easier, yachts are nearly always owned through companies. Trusts can provide an additional layer of secrecy, but keep in mind that obtaining justice can ce challenging in some far-flung jurisdictions should your expectations not be met.


DON’T ECONOMISE


Costs can be kept down by using a proven hull design. Many builders offer semi-custom yachts, where you’ll be making mostly aesthetic choices. If you want to stand out from the crowd, commercial and even military designs can be repurposed to make striking yachts. You need to be clear on who owns the intellectual property and that you have the right to use such designs.


Some team roles can be taken on by the same individual or company. Exterior and interior design can be carried out by the same person – arguably leading to more harmonious aesthetics. But trying to save costs by omitting any of the core technical skills sets can have significant adverse effects. Oversights at this first stage can require expensive modifications later, causing lengthy delays.

Everyone’s remit must be clearly defined and dovetailed, with strict timescales baked-in to their service contracts. Engaging a good lawyer, with build experience, is crucial here.


DESIGN ESSENTIALS


A yacht’s design will be determined, in part, by the minimum technical standards dictated by the Flag State, which in turn may require your yacht to be built in compliance with classification society Rules. These are based on internationally agreed-to standards, which must be adhered to if your yacht is going to ever to sail anywhere, and without which you will find it near impossible to insure the vessel. They vary according to length, internal volume and use.


But such standards do not generally cover some aspects, such as preventive maintenance, which, over time, will help support the vessel’s condition and resale value. Remove the panels of any yacht and you’ll see an array of pipes, wires and items of equipment. If it’s too difficult or time-consuming to reach such items, they can be overlooked and, eventually, fail. The result is not just you and your guests being inconvenienced. Some repairs can be disproportionately expensive, and in extreme cases this can lead to your yacht not being accepted by a buyer when it’s time to sell.


With regards aesthetics, most buyers are reasonably conservative. Avant garde designs are going to look newer for longer, and this will help to maintain their value. But when futuristic tips into plain weird the resale market shrinks rapidly and cost of ownership skyrockets.


THE END RESULT


Playwright George Bernard Shaw once quipped that reasonable people adapt themselves to the world, while unreasonable people adapt the world to themselves – hence progress depends on unreasonable people. Challenging the innate conservativeness of builders and regulatory authorities requires an experienced, imaginative and practical team.


In the case of a full custom yacht, the end result of this exciting pre-build stage should be a design and specification you’re happy with, which is ready to be put out to tender with shortlisted builders, and a team ready to oversee the build. If a semi-custom or series production yacht is your preference, the result is a team which understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications.


With your team in place, it's time to chose a Flag State, and possibly a classification society, before engaging a builder.

superyacht yacht megayacht for sale charter newbuild build building construction owner ownership owners club owner's owners' broker brokerage build captain crew

Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels.  This piece does not provide or replace legal advice.

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