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NEWBUILDCON
STANDARDNEWBUILDINGCONTRACT
PARTI
1.Placeanddate of Contract (Cl. 3,Cl.44(b),Cl. 47)
2.Builder’s name,fullstyle address andcontactdetails (Definitions)
Name: Address:
Country:Phone/Fax:E-mail:
Company registration No.
Additionalnames,addressesandcontactnumbers:
Name:Address:
Country:Phone/Fax:E-mail:
Company registration No. / 3.Buyer’sname,fullstyleaddressandcontactdetails (Definitions)
Name: Address:
Country:Phone/Fax:E-mail:
Company registration No.
Additionalnames,addressesandcontactnumbers:
Name:Address:
Country:Phone/Fax:E-mail:
Company registration No.
4.Vesseldescription/type(Definitions, Cl.2(b))Statevesseltype:
(i)Dry bulk carrier:
(ii)Tanker:
(iii)Containervessel:
(iv)Other(state type):
A.Maindimensions(Cl. 2(b)):B1. Cargocapacity(Cl. 2(b)(v)andCl.B2. TEUcarryingcapacity(only if
11):applicable)(statenumberofcontainers):
(i)Totalon deck
(i)LOA(m):(i) Cubic capacity:a. 20’/40’/45’’TEU:
(ii)Length between perpendiculars (m):b. No.ofreefers:
(iii) Deadweightcapacity DWT(mts):(ii) Bale capacity:(ii)Totalunderdeck
(iv) Mean draftin saltwater(m):(iii) Grain capacity:a. 20’/40’/45’’TEU:
b. No.ofreefers:
(iii) No.ofTEUhomogenousloaded at14 mts.
C.Mainengine(s): (Cl.2(b)(ii),Cl.2(b)(iv)andCl. 9)
(i)Maker/Type:
(ii)Max.Continuous Rating (MCR)(kilowatts atMCR):
(iii)RPM atMCR:
(iv)Specific FuelOilConsumptionatMCR:
(v)NormalContinuous Rating (NCR):
(vi)RPMatNCR:
(vii)Type offueland specification (including Calorific Value (kcal/kg)):

Thisdocumentisacomputer generatedNEWBUILDCONform printedby authorityofBIMCO.Anyinsertionordeletiontotheformmustbeclearlyvisible.Intheevent ofanymodificationmadetothepre-printedtextofthisdocumentwhichisnotclearlyvisible,thetextof theoriginalBIMCOapproveddocumentshallapply.BIMCO assumes noresponsibilityfor anyloss,damageor expenseas aresult ofdiscrepanciesbetweentheoriginalBIMCOapproveddocumentandthiscomputergenerateddocument.

D.Average speed(Cl.2(b)(i)andCl. 8)
(i)Service speed atdesign draft(m):
(ii)Min.numberofknots:
(iii)Engineoutput(kilowatts atMCR):
(iv)Percentage ofengine’s max.continuous power/sea margin:
(v)RPM: / E.Other matters(optional)(state any othertechnicalrequirements forthe particularvesseltype)(Cl.2(b)(vi)andCl. 12)
5.Shipyard(s)(ifdifferentfrom Box2)(Fullstyle address and contactdetails)(Definitions)
Name:Address:
Country:Phone/Fax:E-mail:
Additionalnames,addressesandcontactnumbers:
Name:Address:
Country:Phone/Fax:E-mail: / Name:Address:
Country:Phone/Fax:E-mail:
Additionalnames,addressesandcontactnumbers:
Name:Address:
Country:Phone/Fax:E-mail:
6.Builder’s HullNumber (Definitions,Cl.2(a)) / 7.FlagState(Definitions)
8.ClassificationSociety/Class Notation(Definitions,Cl. 3) / 9.Contract PriceandCurrency(Definitions,Cl. 7)
(a)Price
(b)Currency
10. ContractualDate of Delivery(Definitions,Cl. 14(c)(iii)(1)) / 11. Payment AmountsandTime Due(Definitions,Cl.7,Cl.15,Cl.39(c))1stInstalment(seeCl.15(a)(i))
2nd Instalmentand time due3rd Instalmentand time due4th Instalmentand time due
FinalInstalment(seeCl.15(a)(iv))
12. Builder’s Bank AccountDetalis(Cl.15(d))
Name:Address:
Country:Phone/Fax:E-mail:Sortcode:
Accountnumber:Accountname:
13.SpeedDeficiency(Cl. 8,Cl.39(a)(iv))
(i)ContractPrice reduction amount:
(ii)Maximum amount:(state monetarylimit):
14.ExcessiveFuel Consumption(Cl. 9,Cl.39(a)(v))
(i)ContractPrice reduction amount:
(ii)Maximum amount:(state monetary limit): / 15.DeadweightDeficiency(Cl. 10,Cl.39(a)(vi))
(i)Deadweighttolerance:
(ii)ContractPrice reduction amount:
(iii)Maximum amount:(state monetary limit):

16.CubicDeficiency(Cl. 11,Cl.39(a)(vii))
(i)Cubic capacity tolerance:
(ii)ContractPrice reduction amount:
(iii)Maximum amount:(state monetary limit): / 17. Other Deficiencies (Optional)(Cl. 12,Cl. 39(a)(viii))
18.Late Delivery Compensation(Cl. 13)
(i)Amountperday:
(ii)Maximum amount:(state monetary limit): / 19.Guarantees(Cl.14(a) and(b))

(a)Buyer’s guarantees
(i)Numberofdays after signing Contract:
(ii)Buyer’s Instalment/Performance Guarantee:
(b)Builder’s guarantees
(i)Numberofdays after signing Contract:
20. Guarantee Period(state numberofmonths.Ifleftblank 12 monthsshallapply) (Cl. 35(a)(i)) / 21. AdditionalGuarantee Period
(state numberofmonths) (Cl.35(e)) / 22.SuspensionandTermination(Cl. 39)
(i)Running period (state numberofdays):
(ii)Notice period (state numberofdays):
23.GoverninglawandDispute Resolution(Cl. 41andCl. 42)
(a)Governing law
(b)Place ofdispute resolution / 24. GuaranteeEngineer(state monthly lump sum) (Cl.36(b))
25. EffectiveDateof Contract(state conditionsto be fulfilled) (Cl.44(a)) / 26. State numberofdays withinwhichconditions have tobe satisfied(Cl.44(b))
27. Optionaladditionalvessels(state number)(Cl.46) / 28. Optionaladditionalvesselscontractpriceanddeliverydates(Cl.46)
29. Declaration ofOptions(state numberofmonths afterEffectivedate) (Cl.46) / 30. Interest (state rate ofinterest) (Cl. 18,Cl. 38(b)(ii)(2)(i),Cl.39(e)and39(f)(iv))
31. Buyer’sGuarantor (state name ofbank orparty as appropriate,fullstyleaddress and contactdetails( (Cl.14(a))
Name:Address:
Country:Phone/Fax:E-mail: / 32. Builder’s Guarantor (state nameofbankorparty as appropriate,fullstyle address andcontactdetails((Cl.14(b),Cl. 27(d)(iv)(3))
Name:Address:
Country:Phone/Fax:E-mail:
33. AdditionalAnnexes / 34. Numbers of Additional Clauses

This Contract consistsof PART I including additionalclauses, if anyagreed and stated inBox 34,and PART IIaswellasanyAnnexesagreedand attachedheretoand shallbeperformed subject to the conditionscontained herein. In the eventof a conflict of conditionsthe provisionsof PART I shallprevailover thoseof PARTII to the extentof such conflict, but no further.

The Specification, Maker’sList, Plans, and/orDrawingshereafterapprovedbythe Buyershallformpartof thisContract, butintheevent of conflict between theprovisionsof thisContract andthe Specification, Maker’sList, Plansand/ordrawings,the provisionsof thisContract shallprevail. In the event of inconsistencybetween the Specification and Maker’sList, on the one handand the Plansand/orDrawingsonthe other,the Specifications/Maker’sList shallprevail. In thecase of inconsistencybetweenanyofthe Plansand/orDrawings, the laterin date shallprevail.

LISTOFCLAUSES

DEFINITIONSINTERPRETATION

1.Builder’sandBuyer’sobligations

2.Description

3.Classification,RulesandRegulations

4.IMO HazardousMaterialsInventory

5.Protective Coatings

6.Source of Origin

7.ContractPrice

8.Speed Deficiency

9.ExcessiveFuelConsumption

10.DeadweightDeficiency

11.CubicCapacityDeficiency

12.OtherDeficiencies(optional Clause)

13.Late Deliveryfor non-permissible delays

14.Guarantees

(a)Buyer’sInstalment/Performance Guarantee

(b)Builder’sRefund Guarantee

(c)GuaranteeComplianceandExpiry

15.Payments

(a)Instalments

(b)PaymentforModificationsand otheritems

(c)PaymentofLiquidated Damages

(d)PaymentProcedures

16.Taxes,duties,stamps,duesand fees

17.Righttoset-off

18.Interest

SECTION3–PRODUCTION

19.Sub-contracting

20.Approvals

21.Buyer’sSupplies

(a)Buyer

(b)Builder

22.Buyer’sRepresentative,Assistants,Officersand Crew

23.Inspections,TestsandTrials

24.ModificationsandChanges

25.Builder’sModificationsandSubstitutionofMaterials

26.Changes inRulesand Regulations

27.SeaTrials

(a)Notice

(b)WeatherConditions

(c)Conductof theSeaTrials

(d)MethodofAcceptance or Rejection

SECTION4– DELIVERY

28.Delivery

29.Documentson Delivery

30.Final Instalment

31.Title and Risk

32.Possession andRemoval ofthe Vessel

33.Vessel Registration

34.Permissible Delays

35.Builder’sGuarantee

36.GuaranteeEngineer

37.Responsibilitiesand exclusionsfromliabilities

Builder’sexclusion Clauses

(a)LiabilityforDefectsdiscovered beforeoratthetime ofdelivery.

(b)LiabilityforDefectsdiscovered afterdelivery

(c)Liabilityforthird partyreplacementorrepair

(d)Implied terms

Mutual exclusion Clauses

(e)Liabilityfollowingtermination

ResponsibilityClauses

(f)Responsibilityfor death andpersonalinjury

(g)Responsibilityfordamageto or lossofproperty

38.Insurances

(a)Builder’sInsurances

(b)Allocation ofInsurance Proceeds

39.Suspension andTermination

(a)Buyer’sTermination

(b)Builder’sTermination

(c)Suspension ofWork

(d)Deemed Insolvency

(e)EffectofBuyer’sTermination

(f)EffectofBuilder’sTermination

40.Copyrights,TradeMarks andPatents

41.Governinglaw

42.Dispute Resolution

(a)Classification/RegulatoryAuthorities

(b)Expertdetermination

(c)Arbitration andMediation

SECTION6–SUNDRY

43.Notices

44.Effectivedate ofContract

45.Assignment

(a)Builder’sassignment

(b)Buyer’sassignment

46.Options

47.EntireAgreement

48.Thirdpartyrights

ANNEXES

ANNEX “A”–(GUARANTEES)ANNEX “B”– (SPECIFICATION)ANNEX “C”– (MAKER’S LIST)

DEFINITIONS1

InthisContract:2

“BankingDay”means adayonwhichbanksareopenin theplacesstatedinBox 2 andBox 33

and,where aremittanceisinUSdollars,inNewYork.4

“Builder” meansthecompanyorcompaniesstatedinBox 2,organisedandexistingunder5

the lawsofthecountryorcountriesstatedin Box 2 havingtheirprincipalofficeattheaddress6

statedinBox 2 andincludingtheirpersonnel.If morethanonecompanyisstatedinBox 27

thentheyshallbejointlyandseverallyliable.8

“Buyer” meansthecompanyorcompaniesstatedinBox 3,organisedandexistingunder the9

lawsofthe countryorcountriesstatedinBox 3 havingtheirprincipalofficeat theaddress10

statedinBox 3 andincludingtheirpersonnel.11

“Buyer’sRepresentative”meansthenamedrepresentativeofthe Buyerwhomaybepresent12

at the Shipyardthroughout the constructionoftheVessel.13

“Buyer’sSupplies”meansalloftheitems to be providedbythe Buyerinaccordance withthe14

Specificationat its ownrisk, costandexpense.15

“ClassificationSociety” meanstheclassificationsocietystatedinBox8.16

“Contract Price”meanstheamountstatedinBox9 asmaybeadjustedinaccordance with17

thetermsof thisContract.18

“Contract”meansthisBIMCOStandardNewbuildingContractconsistingofPart I including19

additionalClauses,ifanyagreed,andPartII aswellasany Annexes(including the Specification20

andMaker’sList)andPlansandDrawingsattachedhereto.21

“ContractualDateofDelivery”meansthe contractualdateofdeliverystatedinBox 10.22

“Defects”meansanydeficienciesordefectsinthedesign, construction, materialand/or23

workmanshiponthe partoftheBuilderor itssub-contractors.24

“DeliveryDate” meanstheContractualDateofDeliveryasmaybeadjustedinaccordance25

with theterms of thisContract.26

“FinalInstalment” meansthelastinstalmentpayableatdeliverycalculatedinaccordancewith27

Clause15(Payments).28

“FlagState”meansthe State oftheflagwhich theVesselwill fly whenregistered,asstated29

inBox 7.30

“Instalments”meanstheamounts payableinaccordancewithBox 11.31

“Inwriting” meansanymethodoflegiblecommunication.32

“Maker’sList” meansthelistofsuppliersforequipment, machineryand servicesapprovedby33

the PartiesandstatedinAnnexC.34

“Parties”meansthe BuilderandtheBuyer.35

“Party”meanstheBuilderorthe Buyer, asthe casemay be.36

“PermissibleDelays” meansdelays totheconstructionand/ordelivery oftheVesseland which37

entitle theBuilder to extend theDeliveryDateinaccordance withClause34(Permissible38

Delays).39

“Personnel”meansthe employees,agents, servants,suppliersand independentcontractors40

engagedbyeitherParty inorder to performwork ordutiesunderthisContractforwhichthat41

Partyisresponsible.42

“PlansandDrawings” means theplansanddrawingsattachedheretoorlistedand/ordescribed43

in the Specification.44

“RegulatoryAuthorities”meanstheregulatoryauthoritieswhoserulesandregulationsmust45

becompliedwithin theconstructionanddeliveryofthe Vessel.Suchbodiesshallinclude the46

FlagStatetogetherwiththeotherbodies listedintheSpecification.47

“Shipyard”meansthe placeorplacesstatedinBox 5where the Vesselwillbeassembled48

and/orconstructed.49

“Specification”meansthetechnicaldetailscontainedinAnnexB.50

“Sub-contractor” meansanyperson(notbeing aservantoremployeeoftheBuilder)orcompany51

withwhomtheBuilderhasenteredinto acontract for thedesign,construction, manufacture52

orsupply ofanyitem,equipment,workorservice for theVessel.53

“Vessel” meansthe vesseldescribedinBox 4(includingitsmachinery,equipmentand54

appurtenancesdescribedin theSpecification)withhullnumberasperBox 6,builtinaccordance55

withthisContract.56

INTERPRETATION57

Singular/Plural58

InthisContractthe singularincludes thepluralandviceversaasthe contextadmitsor59

requires.60

Headings61

Theindexandheadingstothe ClausesandAnnexesto thisContractareforconvenienceonly62

andwillnotaffectitsconstructionorinterpretation.63

Jointlyandseverally64

Allcovenants,agreements,undertakings,indemnities, representationsandwarrantiesbymore65

thanonepersonareenteredinto, givenormadebysuchpersonsjointlyandseverally.66

1.Builder’sand Buyer’sobligations67

It ismutuallyagreedbetween the Builderandthe Buyerthat:68

(a)the Buildershalldesign, construct, testand survey,launch,equip,complete,selland69

delivertheVessel tothe Buyerallinaccordancewithgood internationalshipbuildingand70

marineengineeringpractice;and71

(b)the Buyershallpurchase,take deliveryofandpayforthe Vessel.72

2.Description73

(a)TheVesselshallbeconstructedatthe Shipyardandshallhavethe Builder’sHull74

Number statedinBox 6.75

(b)TheVesselshallhavethedimensionsandcharacteristicsasstatedinBox4 andthe76

Specification. These shallbedefined,measuredandcalculatedinaccordancewiththe77

Specificationor,ifomittedfrom theSpecification, inaccordance with thefollowing:78

(i)Speed –TheVessel’saveragespeedon aseatrialundertakeninbothdirections79

overa measureddistanceofone(1)nautical mile,withcleanhull,inweatherwith80

windspeedandseastatenotexceedingBeaufortWind ForceScale3 andDouglas81

Sea StateScale 2respectivelyon a draftasstatedinBox4D(i)shallbeatleast the82

numberof knotsstated inBox 4D(ii).Duringsucha seatrial theengine’soutputin83

kilowattsshallbeasstatedinBox 4D(iii)corresponding tothe percentage ofthe84

engine’smaximumcontinuouspoweroutputstatedinBox 4D(iv)at theapproximate85

revolutionsper minutestatedinBox4D(v).86

(ii)FuelConsumption-Thefuelconsumptionofthemainengineonthetest bedusing87

fuelofthetypeandspecificationstatedinBox4C(vii)shallnotexceed thenumberof88

gramsperkilowatt/hourstatedinBox 4C(iv)when theenginedevelopsthenumber89

ofkilowattswithaneffectivecalorificvalueofthenumberof kilocaloriesper kilogram90

statedinBox 4C(ii)andBox4C(vii)respectively.91

(iii)Deadweight -The Vessel’sdeadweightshallbethenumberof metrictonsstated92

inBox4A(iii)oninternationalsummerfreeboard, corresponding toameandraftin93

saltwater(specificgravity1.025)asstatedinBox4A(iv).Thespecifieddeadweight94

shallincludefuel,provisions,stores,freshwater,crewandpassengersinaddition to95

sparepartsnotlessthantherequirementsoftheClassificationSociety.96

(iv)Propulsion -TheVessel’spropulsionmachinery shallbeofthetypeandwith maximum97

continuouspowerinkilowattsat thenumberofrevolutionsperminuteasstatedin98

Box4C(i),4C(ii)and4C(iii).99

(v)CargoCapacity–The Vessel’scargocapacity shallbe thecapacitiesstatedinBox100

4B1and4B2.101

(vi)Other matters –The Vesselshallmeet thetechnicalrequirementsstatedinBox102

4E.103

3.Classification,Rules andRegulations104

(a)TheVesselshallbedesigned,constructed,surveyed,testedanddeliveredin105

compliancewith the applicablelaws,rules, regulationsandrequirements of the106

ClassificationSociety statedinBox 8,andtheRegulatoryAuthorities:107

(i)inforceas ofthedate of thisContractstatedinBox 1,or108

(ii)ifnotinforceasofthedateof thisContract,whichareratifiedandpromulgatedon109

orbeforethedate ofthisContractand whichwillbecompulsoryfor theVesselonor110

beforethedeliveryoftheVesselinaccordancewithClause28 (Delivery).111

Allsuchlaws,rules,regulationsandrequirements oftheClassificationSocietyand112

the RegulatoryAuthoritiesshallbecompliedwithwithout qualification(see Clause26113

(ChangesinRulesandRegulations)).114

(b)ThefinaldecisionsoftheClassificationSocietyorRegulatoryAuthoritiesshallbe115

bindingonthePartiesastotheVessel’scompliancewiththeir respectiveapplicablelaws,116

rules, regulationsandrequirements.117

(c)Allcosts,feesandchargesincidental toandinrespectof compliancewith the118

applicablelaws,rules,regulationsandrequirementsof the ClassificationSocietyor119

RegulatoryAuthoritiesreferredto aboveshallbefor the Builder’scostand expense.120

4.IMOHazardous MaterialsInventory121

TheBuildershall,inaccordancewith theIMO GuidelinesonShipRecycling,Resolution122

A.962(23),withamendmentsinforceas ofthedateofthisContract:123

(a)Endeavourtotake due accountoftheVessel’sultimatedisposalwhendesigningand124

constructing the Vessel by:125

(i)usingmaterialswhichcanberecycledsafelyandinanenvironmentallysoundmanner;126

and127

(ii)byminimising the useof materialsknown to bepotentiallyhazardous to healthand128

the environment.129

(b)Inconsultationwithequipmentmanufacturersprovide the Buyerwith aGreenPassport130

StatementofComplianceissuedbytheClassificationSocietycontaininginformation131

includingtheVessel’shullnumber andmainparticularsandlistinganyandallmaterials132

known tobepotentiallyhazardousutilisedin theconstructionofthe Vessel,itsequipment133

andsystems.134

Thelistofthematerials known to bepotentiallyhazardousshallcontainthelocationand135

the approximatequantity/volumeofeachidentifiedmaterialonboardtheVessel.136

5.ProtectiveCoatings137

TheVessel’sdouble-sideskinspacesanddedicatedseawaterballast tanksshallbecoated138

inaccordancewith the Specification. Inany eventtheminimum coatingstandardshall139

beinaccordancewiththerequirementsoftheIMOPerformanceStandardforProtective140

Coatingsfordedicatedseawaterballasttanksinalltypesofshipsanddouble-sideskin141

spacesofbulkcarriers (IMOPSPC,ResolutionMSC.215(82)) and,whereapplicable,in142

accordance with theIACSCommonStructuralRules for BulkCarriersandfor OilTankers143

orsubsequentmodificationsorreplacementapplicableinaccordancewithClause3(a)144

(Classification,Rules andRegulations).145

6.SourceofOrigin146

Ifsorequestedbythe Buyer,theBuildershallidentifythecountry oforiginofall themain147

componentslistedin theMaker’sList andSpecification.148

7.ContractPrice149

TheContractPriceshallbe theamount statedinBox 9(a)asmaybeadjustedin150

accordance with thetermsof thisContract.151

TheContractPriceand any otherpaymentsto bemadetothe Builderpursuant tothis152

Contractshallbepaidinthe currencystatedinBox 9(b)andinaccordance withthe153

paymenttermsstatedinBox 11andClause15 (Payments).154

8.SpeedDeficiency155

Ifthespeedofthe VesselasstatedinBox 4D(ii)isnotachievedin themannerstated156

in the SpecificationorClause2(b)(i)thefollowingshallapply:157

(a)ThereshallbenoadjustmentoftheContract Priceexcepttothe extentprovidedin158

Sub-clause8(b).159

(b)Ifthereductioninspeedisgreater than2/10thsof aknot, theContractPriceshallbe160

reducedbytheamountstatedinBox 13(i)foreachwhole1/10thofaknotreductionin161

speedinexcessof2/10thsofaknotasliquidateddamagesuptothemaximumamount162

statedinBox 13(ii).163

(c)Ifthereductioninspeedwouldentitle the Buyer to areductionintheContract164

Pricegreaterthanthemaximumamount statedinBox13(ii),the Buyershallhavethe165

option toterminatethisContractinaccordancewithClause39(a)(iv)(Suspensionand166

Termination).167

9.ExcessiveFuelConsumption168

Ifthefuelconsumptionofthe Vessel’smainengineonthetestbedusingthefuel specified169

inBox 4C(vii)exceedsthefigurestatedinBox 4C(iv)the followingshallapply:170

(a)ThereshallbenoadjustmentoftheContractPriceexceptto theextentprovidedin171

Sub-clause9(b).172

(b)Ifthe excess fuelconsumptionisgreaterthan 2%(twopercent)ofthespecifiedfuel173

consumption theContractPriceshallbereducedbythe amountstatedin Box 14(i)for174

eachwholepercentageinexcessof2% asliquidateddamagesupto a maximumamount175

asstatedinBox14(ii).176

(c)Ifthe excess fuelconsumptionwouldentitlethe Buyerto areductionintheContract177

Pricegreaterthanthemaximumamount statedinBox 14(ii), the Buyershallhavethe178

optionto:179

(i)accept themainengineatareductioninthe ContractPricecorresponding tothe180

maximumamountstatedinBox 14(ii)or181

(ii)reject themainengine andeither182

(1)requirethe Builder torectifythe deficiencyandrepeat thetrialorreplacethemain183

enginewithonethatconformstotherequirements oftheContract. (Thetimetaken184

torectifythe deficiencyandrepeat thetrialor replace themainengineinaccordance185

withthisSub-Clauseshallnotbe aPermissibleDelay)or186

(2)terminatethisContract forthwithinaccordancewithClause39(a)(v)(Suspension187

andTermination).188

10.DeadweightDeficiency189

Iftheactualdeadweight ofthe Vesseldeterminedinaccordancewith theSpecification190

islessthanthe deadweightstatedinBox 4A(iii)thefollowingshallapply:191

(a)ThereshallbenoadjustmentoftheContract Priceexcepttothe extentprovidedin192

Sub-clause10(b)193

(b)Ifthereductionindeadweightisgreater thanthenumberofmetrictonnesstatedin194

Box 15(i)thenforeachwholemetrictonnein excessofthefigurein Box 15(i)belowthe195

deadweightstatedinBox 4A(iii)the ContractPriceshallbereducedbytheamountstated196

inBox 15(ii)asliquidateddamagesuptoamaximumamountasstatedinBox 15(iii).197

(c)Ifthereductionindeadweightwouldentitle the Buyerto areductionintheContract198

Pricegreaterthanthemaximumamount statedinBox 15(iii)the Buyershallhavethe199

option toterminatethisContractinaccordancewithClause39(a)(vi)(Suspensionand200

Termination).201

11.CubicCapacityDeficiency202

Iftheactualcubiccapacity ofthe VesseldeterminedinaccordancewiththeSpecification203

islessthanthecubiccapacityspecifiedinBox 4B1(i)thefollowingshallapply:204

(a)ThereshallbenoadjustmentoftheContract Priceexcepttothe extentprovidedin205

Sub-clause11(b)206

(b)Ifthereductionincubiccapacityisgreater thanthenumberofcubicmetresstatedin207

Box 16(i)thenforeachfullcubicmetreinexcessofthefigureinBox 16(i)belowthe cubic208

capacity statedinBox 4B1(i)the ContractPriceshallbereducedbytheamountstatedin209

Box 16(ii)asliquidateddamagesuptoa maximumamountasstatedin Box 16(iii).210

(c)Ifthereductionincubiccapacity wouldentitle theBuyerto areductionintheContract211

Pricegreaterthanthemaximumamount statedinBox 16(iii)the Buyershallhavethe212

option toterminatethisContractinaccordancewithClause39(a)(vii)(Suspensionand213

Termination).214

12.OtherDeficiencies(optionalClause)215

NOTE:ThisClausehasbeenleft blankintentionally to allow thepartiestoinsert,where216

appropriate,aliquidateddamagesprovisioncoveringdeficiencies in any specialtechnical217

requirementsforaparticularvesseltypeandspecifiedbythe partiesinBox4EandBox218

17.(SeealsoClause39(a)(viii)).219

13.LateDeliveryfornon-permissible delays220

Ifdeliverytakesplacemorethan30 daysaftertheDeliveryDatethenforeachday221

thereafter the ContractPriceshallbereducedbytheamountstatedinBox18perday222

asliquidateddamagesup toamaximumdelay of180days(comprising a30daygrace223

periodplus150days).224

Ifthedelay exceeds180 days the Buyershallhave theoptiontoterminatethisContract225

inaccordance withClause39(a)(iii)(SuspensionandTermination).226

14.Guarantees227

(a)Buyer’sInstalment/PerformanceGuarantee228

Tosecurethe Buyer’sobligationto paytheinstalments oftheContractPricepriorto229

deliverythe Buyershall, within the numberofdaysstatedin Box 19(a)(i)after the signing230

ofthisContract,deliverto theBuilderanirrevocableandunconditionalguaranteeissued231

bythe bankorpartystatedin Box 31substantiallyin theformand substancesetoutin232

AnnexesA(i)(Instalments)orA(ii)(Performance) asstatedinBox 19(a)(ii),failingwhich233

the Buildershallhave theoptiontoterminatethisContractinaccordancewithClause234

39(b)(iv) (Suspensionand Termination).235

(b)Builder’sRefundGuarantee236

TosecuretheBuilder’sobligationtorefundthe Buyer’spre-deliveryinstalmentspursuant237

tothisContractthe Buildershall,within the numberofdaysstatedinBox19(b)(i)after238

the signingof thisContractandbeforethe dateforpaymentofthefirstinstalmentin239

accordance withClause15(a)(i)(Payments–Instalments),provide the Buyerwith a240

RefundGuaranteeissuedbythe bankorpartynamedinBox 32substantiallyin theform241

andsubstancesetoutinANNEXA(iii)(RefundGuarantee),failingwhich the Buyershall242

Have the optiontoterminatethisContractinaccordancewithClause39(a)(ix)(Suspension243

andTermination).244

(c)GuaranteeComplianceandExpiry245

ThePartiesshallensurethatanyguarantee issuedontheirbehalfshall:246

(i)comply with the laws,regulations,constitutionandproceduresoftheguarantorand247

its country ofissue,includingbutnotlimitedto, itsregistration withanynecessary248

authorities;and249

(ii)onexpirybereturnedtotheguarantor;and250

(iii)in the caseofthe RefundGuarantee (sub-Clause14(b)),remaininforceuntileither251

(1)a dateatleast300days after the ContractualDateofDeliverystatedinBox 10or252

30daysafter thefinalresolutionofanydisputeunderClause42 (DisputeResolution),253

whicheveris the later;or254

(2)deliveryoftheVesselto, andacceptance ofthe Vesselby,the Buyer255

whicheveris the sooner.256

15.Payments257

(a)Instalments258

TheContractPriceshallbepaidbythe BuyertotheBuilderbyInstalments,whendue259

andpayableinaccordancewithBox 11andthisClause,thepre-deliveryInstalments260

beingpaidasadvances andnotdepositsasfollows:261

(i)UnlessotherwisestatedinBox 11thefirstInstalmentshallbedueand payableby262

the Buyer five(5)BankingDaysafter the RefundGuaranteehasbeen providedin263

accordance withClause14(b)(Builder’sRefundGuarantee).264

(ii)TheBuildershallgivetheBuyerinvoices foreachInstalmentunder thisContract.265

Withthe exceptionofthefirstandFinalInstalment the BuildershallgivetheBuyer266

aninvoice to coverthe sumduetoitnotlessthan ten(10)BankingDays prior tothe267

duedate ofeachInstalment.268

(iii)AllInstalmentsotherthan thefirst andFinalInstalment shallbepayablewithinfour269

(4)BankingDaysoftheduedatethereof.270

(iv)TheFinalInstalmentshallbedueand payableupondeliveryofthe Vesselin271

accordance withBox 11andClause28 (Delivery).272

(b)Payment forModificationsandotheritems273

(i)Thesumsdueorrefundableas aresultof modificationsandchanges,andchanges274

inRulesandRegulationsunderClause24 (ModificationsandChanges)andClause275

26(ChangesinRulesandRegulations) shallbeadded toordeductedfrom the Final276

Instalment.277

(ii)Allexpensespayableinaccordance withClause27(c)(iii)(ConductoftheSeaTrial)278

andClause22(b)shallbepaidtogetherwith theFinalInstalment.279

(iii)Sumsdueforotheritemsshallbepaidwithin fifteen(15)BankingDaysafterreceipt280

bythe BuyeroftheBuilder’sinvoice.281

(c)PaymentofLiquidatedDamages282

Anyamountsfor liquidateddamagesunderClause8(SpeedDeficiency),Clause9283

(ExcessiveFuelConsumption),Clause10 (DeadweightDeficiency),Clause11 (Cubic284

CapacityDeficiency),Clause12 (OtherDeficiencies)andClause13 (LateDeliveryfor285

non-permissibledelays)shallbecalculatedanddeterminedbeforedeliveryandmaybe286

deductedfrom theFinalInstalment.287

(d)PaymentProcedures288

(i)Ifthedateonwhichanypaymentisdueinaccordancewith the provisionsofthis289

Contractdoesnotfall ona BankingDay,paymentshallbemadeonthe nextBanking290

Day.291

(ii)Paymentofsumsdueinaccordance with the provisionsofthisContractshallbemade,292

in the caseofpaymentsto theBuilder,byelectronictransfer tothe Builder’saccount293

stipulatedinBox 12and,in thecase ofpaymentstothe Buyerbyelectronictransfer294

to such bankasthe BuyerbynoticetotheBuildernominatestoreceivepayments295

on its behalf.296

(iii)Thecostof remittingpaymentsshallbeforthe accountofthe payer.297

(iv)PaymentsbyeitherPartyto theotherunderthisContract,andtheir receipt,shallnot298

bedeemeda waiverofany rightorclaimeitherPartymay haveagainsttheother.299

(v)Inthe eventoflatepaymentof InstalmentsbytheBuyer, the Builder shallhave the right300

to suspend workunder thisContractinaccordancewithClause39(c)(Suspension301

ofWork).302

16.Taxes,duties,stamps, duesandfees303

(a)TheBuildershallbearandpayalltaxes,duties, stamps,duesandfeesimposedin304

the placestatedinBox 2inconnectionwith the executionand/orperformanceofthis305

Contract,excludingany taxes,duties,stamps,duesandfeesimposedintheplacestated306

inBox 2 upon the Buyer’sSupplieswhichshallbeforthe Buyer’scostandexpense.307

(b)The Buyershallbearandpayalltaxes,duties, stamps,duesandfeesimposed308

outside theplacestatedinBox 2 inconnectionwith theexecutionand/orperformance309

ofthisContract,except for taxes,duties, stamps,duesandfeesimposeduponthose310

itemsandservicesprocuredbytheBuilder for constructionofthe Vessel.311

(c)IfeitherParty paysany taxes,duties,stamps,duesandfeesforwhich theotherParty312

isresponsibleunderthisClause,theotherParty shallreimbursethe payingParty within313

fifteen(15)BankingDaysofreceiptofnoticetothateffect,togetherwith evidenceofthe314

amountpaid.315

17.Right to set-off316

The Buyershallnothave theright toretainorset-offanyamountagainstany payment317

due totheBuilderunderthisContractexceptinrelation totheFinalInstalmentas318

specificallyprovidedinthisContract (seeClause15(Payments)andClause30 (Final319

Instalment)).320

18.Interest321

IfeitherPartyfails topayanysumdueinaccordancewith theterms ofthisContract, the322

otherPartyshallhavetheright tochargeinterestfrom the duedate attheratestatedinBox323

30onsuchoutstandingsums(seealsoClause39 (SuspensionandTermination)).324

19.Sub-contracting325

TheBuildershallemploythesub-contractorsassetoutinthe SpecificationorMaker’s326

List.Except for minorwork, theBuildershallnotemployothersub-contractorswithout327

the Buyer’sapproval,whichshallnotbe unreasonablywithheld.328

Notwithstandinganysub-contracting, the Builder shallremainfullyresponsiblefor the329

dueperformanceof such workasifundertakenbytheBuilderat theShipyard.330

20.Approvals331

ThetimesandnumbersspecifiedinthisClauseshallapplyunlessotherwisestatedin332

the Specification.333

(a)Assoonaspossibleandnotlater thansixty(60) runningdaysafter the effectivedate334

ofthe Contract (seeClause44 (Effectivedate of Contract))the Buildershallprovidethe335

Buyerwithproposeddetailedbuildingandtestingschedules.The Buyershallcomment336

on theschedulesassoonaspossibleandatthelatestwithinfourteen(14)runningdays337

after receiptoftheproposals. TheBuildershallthereafterprepareand issueinwriting338

amendedbuildingandtestingschedulesincorporating the Buyer’scommentswithin339

fourteen(14)runningdaysthereafter.340

(b)TheBuildershalldespatch tothe Buyeratotalof three(3) fullsets ofthePlansand341

Drawingsforthe Buyer’sapprovalandshallalsosubmitsuchothertechnicalinformation342

as the Buyermayreasonablyrequire,notlessthanthirty(30)runningdaysbeforeany343

constructionworkscommence.The Buildershallgivenotice tothe Buyeradvisingthe344

dateofdespatch ofthe PlansandDrawingsandtheBuyershallgivenotice totheBuilder345

confirmingreceipt thereof.The Buyershallwithinfourteen(14)runningdaysofreceipt346

send totheBuilderone(1)setofthe PlansandDrawingswith the Buyer’s approvalor347

approvalwithcomments,amendmentsor reservations.348

Inthe event that the Buyerneedsadditionaltimeto considerthe PlansandDrawings349

submittedpursuant tothisClause,itshallrequest thesameinwritingoftheBuilderwhose350

agreementshallnotbeunreasonablywithheld.Inthe event thatthe Buyer’scomments,351

amendmentsorreservationsareunclear,unspecifiedorillegible, the Builder maygive352

noticerequestingclarification. Ifthe Buyer fails torespondtotherequesttoprovide353

clarificationwithin five(5)runningdaysofreceipt ofthe Builder’snotice,theBuilder354

shalldeterminewhether and to whatextentitcanadopt the comments,amendmentsor355

reservations.356

Ifrequestedbythe Buyerinwriting, the Plans andDrawingsshallalsobesentinan357

agreedelectronicformat.358

(c)TheBuildershall take duenote ofthe Buyer’scomments,amendmentsorreservations359

(ifany)onPlansandDrawingssubmittedpursuanttothisClauseand,ifsuchcomments,360

amendmentsorreservationsarenotofsucha natureorextentastoconstitutea361

modificationor changeofthe Specificationwithin themeaningofClause24(Modifications362

andChanges), thentheBuildershallcommenceorcontinueconstruction ofthe Vessel363

inaccordance with thecorrectedoramendedPlansandDrawings.364

(d)IftheBuilderconsidersthecomments,amendmentsor reservationstothePlans365

andDrawingsareofanatureorextentthatconstitutes amodificationor changeunder366

Clause24(ModificationsandChanges), theBuildershallnotifythe Buyer accordingly367

andproceedinaccordancewithClause24(ModificationsandChanges).If the Buyer368

disagreesthemattershallberesolvedinaccordancewithClause24(e).369

(e)Inthe event that the Buyer fails toreturnanyPlansandDrawingstothe Builderwith370

approvalorapprovalwithcomments,amendmentsor reservations,ifany,within the time371

limitstatedabove,suchPlansandDrawingsshallbedeemedtohavebeenapprovedby372

the Buyer.373

(f)The Buyer’sapprovalor deemedapprovalofanyPlansandDrawingsshallnot374

affect the obligations oftheBuildertodesign,constructanddeliver,ortheobligations375

ofthe Buyertotakedeliveryof, andpayfor, the Vesselinaccordancewith theother376

provisionsofthisContract;norshallitdiminishtheBuilder’sresponsibilityinrespectof377

its obligationsunder thisContractnorshallitconstituteanyacceptancebythe Buyerof378

anyresponsibilityfor anydefectintheVessel.379

(g)TheBuildershallgivetheBuyer,assoonaspracticable,copies ofallrelevant380

correspondence relatingtothe Vesseltoandfrom theClassificationSocietyandthe381

RegulatoryAuthorities, togetherwithallplansapprovedbythe ClassificationSociety.382

21.Buyer’sSupplies383

(a) / Buyer / 384
(i) / The Buyershall,atitsownrisk,costand expense,supplyanddelivertotheBuilder / 385
allofthe Buyer’sSupplies.Suchitemsshallbedeliveredat a warehouseorother / 386
storagefacilityat theShipyardoras otherwisedirectedbythe Builderin aproper / 387
conditionreadyforinstallationbytheBuilderorSub-contractorinorontheVessel / 388
(hereinafter“Installation”),inaccordancewith thebuildingandtestingschedulesin / 389
Clause20(a)(Approvals)orasmayreasonably berequiredbytheBuilder. / 390
(ii) / ToassistInstallation, the Buyershallprovide theBuilderwith the necessary / 391
documentationincludingspecifications,plans,drawings,instructionbooks,manuals, / 392
testreportsandcertificatesrequiredtocomplywithallapplicablerulesandregulations. / 393
IfsorequestedbytheBuilder,the Buyershall,if reasonablypossibleandatno cost / 394
tothe Builder,arrangefor therepresentativesofthemanufacturersofthe Buyer’s / 395
Supplies to assistthe BuilderinInstallationand/or tocarryout theInstallationofthe / 396
Buyer’sSuppliesbythemselvesor tomakenecessaryadjustmentsat theShipyard / 397
inaccordance with themanufacturer’sinstructions,includingcommissioning. / 398
(iii) / TheBuildermayrejectany andallofthe Buyer’s Supplieswhenandif foundon / 399
reasonablegroundsto beunsuitableorinimproperconditionfor Installationornotin / 400
compliancewith the ClassificationSocietyorRegulatoryAuthorities’requirements. / 401
(iv) / Ifdelayindeliveryofany ofthe Buyer’sSuppliesinaccordancewithSub-Clause(a) / 402
(i)exceeds thirty(30)daysandwillcauseactualdelayto thedeliveryoftheVessel, / 403
the Buildershallhave theright toproceedwiththeconstructionoftheVesselwithout / 404
Installationofthe delayeditems.The Buyershallacceptandtake delivery ofthe / 405
Vesselsoconstructed. / 406
(b) / Builder / 407
(i) / TheBuildershallsafelystoreandhandlethe Buyer’sSuppliesafterdeliverythereof / 408
ata warehouseorother storagefacilityat theShipyardorelsewhereasdetermined / 409
bythe Builderandshall, atits owncost,expense andresponsibility,installthemin / 410
orontheVesselinaccordancewith the Specification,providedthat the Buildershall / 411
notberesponsibleforthequality,efficiency and/orperformance ofany ofthe Buyer’s / 412
Supplies. / 413
(ii) / The Buyer’sSuppliesshallbeatalltimestheproperty ofthe Buyerbutshallbeat / 414
the Builder’sriskfrom thetime oftheirdeliveryto theShipyarduntil thetimeoftheir / 415
redeliveryto the Buyerwhetherornotaspart of theVessel. / 416

22.Buyer’sRepresentative,Assistants, Officers andCrew417

(a)The Buyermay, at its owncostand expense,haveonerepresentativepresentat the418

Shipyardthroughout theconstructiontogetherwith areasonablenumberofassistants419

and,asappropriate,officersand crew.The BuyershallnotifytheBuilderin advancein420

writingof:421

(i)the namesofthe Buyer’sRepresentative,assistantsand,asappropriate, officers422

andcrew;and423

(ii)the scope ofthe Buyer’s Representative’sauthoritywhich,inparticular, shallinclude424

the extent to which the Buyer’sRepresentativehasauthoritytoapproveplans,425

drawingsandcalculations,agreemodifications andinvoicesandattendanceatand426

approvaloftests, trialsandinspectionsrelating totheVesselatthe Shipyardand/or427

premises ofSub-contractors;and428

(iii)anyotherinformationreasonablyrequiredbytheBuildertofacilitateaccesstothe429

Shipyardand/orpremisesofSub-contractors.430

(b)TheBuildershall,atitsowncostandexpense,provide the Buyer’sRepresentativeand431

assistants withreasonableofficeaccommodationandfacilities(includingcommunication432

equipment, suchastelephone, faxandappropriateinternetaccess,andprintersora433

connectiontothe Builder’sprinters)asthe Buyer mayreasonablyrequire. The Buyer434

shallbear the costs ofallcommunication expensesarisingfrom the usebythe Buyer’s435

Representativeandassistants ofthe communicationsequipmentprovidedbythe Builder.436

Suchexpensesshallbe payablebythe Buyeronreceiptofan invoice fromthe Builder437

inaccordance withClause15(b)(Payments-PaymentforModifications andother438

items).439

(c)TheBuildershallhavetheright torequest the Buyertoreplacethe Buyer’s440

Representativeoranyassistantsbutonlyifthe Buildershowsthattheyarecarrying441

outtheirdutiesinanunreasonablemannerdetrimentaltotheproperprogressof the442

constructionof the Vessel,inwhichcase the Buyershallmakeproperreplacementas443

soonaspossible.444

(d)The Buyer’sRepresentativeshallhave the right tocommunicatedirectlywiththe445

ClassificationSociety,providedsuchcommunicationdoesnotunreasonablyinterfere446

with theBuilder’scommunicationwith the ClassificationSociety.447

(e)TheBuildershallrender reasonableassistancetothe Buyerinhelping to provide448

suitableaccommodation,obtainnecessary visas, residenceand workpermitsandany449

otheradministrativeassistanceas the case maybeforthe Buyer’sRepresentative,450

assistantsand,asappropriate,officersand crew.451

23.Inspections,TestsandTrials452

(a)Toenable the Buyer’sRepresentativeandassistantsto carry out theirdutiesand453

inspect the workbeingdone,the Buyer’sRepresentativeand/orassistantsshallhave454

theright to inspect theVesselthroughout the periodoftheconstructionof the Vesseland455

until its deliveryandacceptance.456

(b)The Buyer’sRepresentativeand/orassistants shallhave the right toattendalltests,457

trialsandinspections,includingthosesupervisedbythe ClassificationSocietyandRegulatory458

Authorities,onanypartsofthe Vesselwhetherornotinstalled.The Buildershallgivethe459

Buyerreasonablenoticeinadvanceofallsuchtests,trialsandinspections toenablethe460

Buyer’sRepresentativeand/orassistantstoattend. Ifthe Buyer’sRepresentativeand/or461

assistantsbecomesawareofnon-conformity ofany aspectofthe design, construction,material462orworkmanshiparisingoutofsuch tests, trialsandinspectionshe/theyshallnotifythe Builder 463assoonaspossible. 464

(c)For the purposes ofattendingsuchinspections,testsandtrialstheBuildershall,at465

Anytimeduringworkinghoursoratanyothertimewhenworkisbeingperformed,provide 466

The Buyer’sRepresentativeand/orassistants withunimpededaccess totheShipyard,467

Vessel,workshops,and anywhereelsewhereworkonorstorage ofitemsconnectedwith468

Theconstructionofthe Vesselisbeingperformed. TheBuildershalluseitsbestefforts469

to arrangesimilaraccessforinspectionpurposesto sub-contractor’spremisesduring470

workinghoursoratanytimewhenworkisbeingperformed.471

(d)Neither the Buyer’sRepresentative’sand/orassistants’inspectionand/orattendance472

atanyinspection, testortrial,northe Buyer’sRepresentative’sand/or assistants’failureto 473

notifytheBuilderofanynon-conformityshallrelieve the Builder fromitsobligationsunder474

thisContractorbedeemed tobeorconstruedasa waiverofanyobjectionto,orany475

acceptanceof, faultydesign,construction,materialand/orworkmanship,oranyadmission 476

thatanymaterialsorworkmanshipareofthestandardrequiredfor dueperformanceof477

thisContract.478

24.ModificationsandChanges479

(a)The Buyershallhave therightatanytimetorequest reasonablemodificationsor480

changesinthe Specificationand/orPlansandDrawings.The Buyershallrequestsuch481

modificationsand/orchangesinwriting, givingsufficientparticulars,documentationand482

detailsfullyto describethemodificationsand/orchangesrequested.483

(b)TheBuildershall,as soonaspossibleafterreceiptofthe writtenrequestfor484

modificationsorchanges, give the Buyera writtenproposaloftheconsequencesof485

implementingsuch modificationsand/orchanges.Theseconsequencesmayinclude486

changesinthe Contract Price,DeliveryDate,capacity,draft,speed, fuelconsumption,487

oranyotherprovisionsof thisContract.Ifinthe Builder’sreasonablejudgement,such488

modificationsand/orchanges willadverselyaffect theBuilder’splanningor programme489

inrelationtothe Builder’sothercommitments, theBuildershallnotifythe Buyerthat it490

declines togivesucha proposalfortherequestedmodificationsand/orchangesorpart491

thereof.492

(c)TheBuildershallusereasonableeffortstominimise theextracosts,delayorother493

negativeimpactonthe Vessel’scapacity,performanceorother factorscausedbythe494

Buyer’srequest. TheBuilder’sproposalshallbereasonablefor suchwork.495