Free Printable Construction Of Boat Or Vessel Form (GENERIC)

This review list is being supplied to you in order to inform you about the document in question and to guide you in preparing it for submission. Other boat or similar construction projects could benefit from the terms of this agreement.

Make numerous copies of the document. Give one original to each of the parties.

Construction Of Boat Or Vessel

Download DOCX

Construction of a Boat or Vessel Agreement

___________________, referred to as OWNER, and _____________________, referred to as CONTRACTOR, agree:
OWNER herewith hires CONTRACTOR to construct a vessel in accordance with plans and specifications referred to herein.
The vessel shall be constructed in a first class fashion, using highest-grade materials, in accordance with the plans and specifications of ________________________. Said plans and specifications are attached hereto as Exhibit 1. CONTRACTOR warrants that it has had sufficient time to fully and completely review the plans and specifications.
In the event that CONTRACTOR reasonably requires any additional marine engineering or marine architecture services such services shall be provided upon request by CONTRACTOR to OWNER, at the OWNER’s expense.
CONTRACTOR shall receive a fixed price for the construction of the vessel totaling $__________ (______________________________________ & _____/100 dollars). Said sum shall be paid as follows:
First installment- __________% of the fixed price, due within ten days of the execution of this agreement;
Second installment- ____________% of the fixed price, due at the earliest of:
(a) the laying of the keel;
(b) the beginning of hull assembly.
Third installment- _____________% of the fixed price, due at the time of launching the vessel.
Any changes or alterations in the plans or specifications shall be by written change order executed by both parties. In the event of any change order, the contract price shall be adjusted accordingly.
OWNER grants to CONTRACTOR an express lien upon the vessel and any materials held by the CONTRACTOR for the job. In the event that the OWNER fails to pay as agreed, upon 30 days notice the CONTRACTOR shall be entitled to sell the vessel in such condition as it may be and apply the proceeds to the unpaid and due amounts at either private or public sale. In the event that such sales proceeds are insufficient to pay all sums due by the OWNER to the CONTRACTOR, OWNER shall be responsible for the payment of such deficiency to the CONTRACTOR.
Any sums unpaid for any reason under this agreement shall bear interest at the highest legal rate. All remaining sums due shall be paid on final completion of any punch list items as certified in good faith by ________________________, or an independent marine surveyor. The cost of such independent survey shall be borne by the OWNER.
The vessel shall be completed on or before ___________________, time being of the essence. CONTRACTOR shall be entitled to an extension of time to complete the vessel in the event of the following events:
(a) labor action;
(b) failure of delivery of necessary components from third parties, provided that due diligence has been exercised by the CONTRACTOR in the ordering of the materials;
(c) force majure or act of god.
Upon delivery, the CONTRACTOR shall provide an affidavit of payments of all potential marine or other lienors, suppliers and workmen.
At the request of the OWNER, the CONTRACTOR shall provide no lien affidavits and proof of payment of all suppliers, workers and other persons entitled to liens.
The OWNER may cancel this agreement upon 10 days written notice. The vessel herein being custom made goods, it is agreed that in the event of cancellation by the OWNER other than for cause, the CONTRACTOR would suffer damages that will be difficult or impossible of measurement. Accordingly, as liquidated damages and not as a penalty, the OWNER shall pay a cancellation charge equal to:
(a) all progress payments due at the time of cancellation but not yet paid;
(b) the costs of any materials not yet incorporated into the vessel, which cannot be returned, or, if returnable, any restocking and freight charges;
(c) a cancellation charge equal to _____________ per cent of the contract price.
Upon such payment, OWNER shall be entitled to the vessel in the condition in which it is at the plant of the CONTRACTOR, at the OWNER’s expense of removal and freight.
OWNER shall be entitled to cancel this agreement for cause only upon the following terms:
(a) that the OWNER shall provide a written notice of default to the CONTRACTOR specifying in such detail as is possible the nature of the default;
(b) that a cure period of ten days is provided.
In the event of a multiple default as to the same deficiency, the cure period shall be shortened to 5 days. After the service of a multiple default notice as to a single issue, CONTRACTOR shall be required to provide adequate assurance of future workmanlike and timely performance. OWNER shall be entitled to cancellation without a cure period in the event of multiple defaults and the CONTRACTOR does not provide adequate assurance of future workmanlike and timely performance, or, alternatively fails to comply with any assurances, which are made.
CONTRACTOR shall maintain at all times when the vessel is in CONTRACTOR’s custody insurance for physical damage to the vessel and for any other liability, which may inure to the OWNER. Upon request of the OWNER, the CONTRACTOR shall provide proof of such coverage to OWNER.
OWNER, and OWNER’s representative shall be entitled to inspect the work in progress at any reasonable time.
CONTRACTOR shall provide to OWNER any warranties or guarantees which may be available for materials incorporated into the vessel. In addition, CONTRACTOR warranties that the vessel has been built to the specifications provided by the OWNER. CONTRACTOR shall provide a guarantee of months following delivery. OWNER shall if possible give notice to the CONTRACTOR of any claimed material or construction defects. CONTRACTOR shall have the option of performing such work which may be necessary to correct the deficiencies, or, reimburse owner for the reasonable fair market value of any needed repairs. CONTRACTOR shall notify the OWNER of its election as soon as is possible.
Any disputes under this agreement shall be submitted to arbitration with a single arbiter under the rules of the American Arbitration Association. The arbiter need not be an attorney or professional adjudicator, but may be a person with experience and training in marine engineering and marine architecture.
This is the entire agreement between the parties and may only be altered by a writing executed by both parties hereto.
Dated: ________________
________________________________
___________________ By Contractor
________________________________
_____________________ By Owner
Exhibit One
Construction of a Boat or Vessel Agreement
Review List
This review list is provided to inform you about this document in question and assist you in its preparation. This agreement can be adapted for other boat or similar construction projects.
1. Make multiple copies. Give one original to each party.

Frequently Asked Questions

What is a boat or vessel construction agreement?

A boat or vessel construction agreement is a contract between an owner and a contractor for the construction of a vessel according to specified plans and specifications. The agreement outlines the responsibilities of both parties, including the contractor's obligation to construct the vessel in a first-class manner using highest-grade materials. It also includes provisions for payment, warranties, and additional services.

What does the contractor warrant in a vessel construction agreement?

The contractor warrants that it has had sufficient time to fully and completely review the plans and specifications. This warranty ensures that the contractor has thoroughly examined the project requirements before agreeing to the fixed price. It is a key protection for the owner, as it prevents the contractor from later claiming insufficient time to review the plans.

How are payments structured in a boat construction contract?

Payments are typically structured as installments based on the fixed price. The first installment is a specified percentage of the fixed price, due within ten days of the execution of the agreement. The second installment is another percentage, due at a later stage as defined in the contract.

What happens if additional marine engineering or architecture services are needed?

If the contractor reasonably requires additional marine engineering or marine architecture services, such services shall be provided upon request by the contractor to the owner. These services are provided at the owner's expense. This ensures that any necessary expertise can be obtained to complete the vessel according to the plans and specifications.

What are the plans and specifications in a vessel construction agreement?

The plans and specifications are the detailed drawings and technical documents that describe the vessel to be constructed. They are attached to the agreement as Exhibit 1 and form the basis for the construction. The contractor agrees to build the vessel in accordance with these plans and specifications.

What is the fixed price in a boat construction contract?

The fixed price is the total amount the owner agrees to pay the contractor for the construction of the vessel. It is a set sum stated in the agreement, ensuring cost certainty for the owner. The fixed price is paid in installments as specified in the contract.

What does 'first class fashion' mean in vessel construction?

In the context of a vessel construction agreement, 'first class fashion' means that the vessel will be built to a high standard of quality and workmanship. It implies the use of highest-grade materials and adherence to industry best practices. This standard is intended to ensure the vessel is safe, durable, and fit for its intended purpose.

Who is responsible for providing marine engineering services in a boat construction project?

The contractor is responsible for identifying any need for additional marine engineering or marine architecture services. If such services are reasonably required, the contractor must request them from the owner. The owner is then responsible for providing these services at their own expense.

What is the role of the owner in a vessel construction agreement?

The owner hires the contractor to construct the vessel according to the plans and specifications. The owner is responsible for making payments as outlined in the agreement and for covering the cost of any additional marine engineering or architecture services requested by the contractor. The owner also provides the plans and specifications attached as Exhibit 1.

What is the role of the contractor in a vessel construction agreement?

The contractor agrees to construct the vessel in a first-class fashion using highest-grade materials, in accordance with the plans and specifications. The contractor warrants that it has had sufficient time to review these plans and specifications. The contractor also agrees to request any additional marine engineering or architecture services from the owner if needed.