ABSTRACT
Difficult legal issues arise where the builder refuses to undertake modifications to the specifications because the parties have failed to reach agreement on alterations to the contract price, delivery date or other significant terms of the contract. The need to effect modifications to the specifications may, however, also result from amendments to the rules of the classification society and/or the regulatory authorities. The builder must then exercise its “reasonable judgment” as to whether the requested modification will adversely affect its “planning or programme” in relation to its other commitments, in which case it is entitled to decline to make a proposal to respond to the buyer’s request. Under the SAJ Form, the builder is entitled to propose modifications to the specifications in two distinct situations. As with buyer’s modifications, however, the builder must in each case seek the buyer’s prior consent.
