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Monday, December 10, 2018

Maritime Logistics Professional

November 15, 2018

BIMCO Overhaules Standard Ship Repair Contracts

Photo: BIMCO

Photo: BIMCO

BIMCO, the largest of the international shipping associations representing shipowners, said that it has revised and updated its two standard ship repair contracts: REPAIRCON, which is for major work at a repair yard; and MINREPCON, which is for minor repair work that can be done by contractors when a ship is in port.

Both contracts were approved at BIMCO’s Documentary Committee in Copenhagen on 13 November. Modifications and improvements have been made to the REPAIRCON contract, while MINREPCON has undergone a full review, said a release from the company.

“Ship repair is a major undertaking and it’s important that both parties are fully aware of their respective part in the process. The improvements made to the structure and content of REPAIRCON will help owners and contractors more easily understand their contractual rights and liabilities,” said Søren Berg of Lauritzen who led the team that drafted the revised contracts.

REPAIRCON 2018 provides a clearly written framework agreement that should be the first choice of contract for major ship repair projects. It is the result of bringing together interested parties and consulting selected ship repairers and owners who have used the current REPAIRCON form.

For minor repair and maintenance work, MINREPCON 2018 provides a much needed alternative to contractors’ own terms which can often be problematic and expose owners to unexpected liabilities and obligations.

“There is a clear need for a contract for small, ad hoc repairs such as a plumber attending to deal with blocked drains, or an electrician to sort out lighting problems,” Berg said.

“In MINREPCON 2018 we have incorporated a clearly stated liability and limitation regime, a key feature often absent from contractors own terms and conditions,” Berg added.