ABSTRACT
The buyer will usually have agreed to pay the builder for bunkers, lubes and consumable stores at either the latter’s cost price or the market price prevailing at the date of delivery. The contract will usually provide that the builder shall provide to the buyer upon delivery one or more complete “as built” sets of the drawings and plans of the vessel as approved by the buyer, the classification society and the regulatory authorities. The risk of the builder’s liquidation in the period prior to delivery of the vessel is secured by a refund guarantee in favour of the buyer in the amount of its pre-delivery instalments and interest thereon. Regardless of the time of transfer of title, the risk of the vessel’s loss or damage normally remains with the builder until her delivery and acceptance by the buyer.
