New build management: How to protect an owner’s rights

Throughout all stages of a new build project, our project managers will apply their extensive experience and expertise to successfully navigate the contractual snares and obligations that owners may encounter

A new build project is one of the most creative and exciting journeys for a superyacht owner. It is also one of the most complex. Without careful oversight, contractual obligations, technical requirements, and delivery schedules can easily become pitfalls.

Professional project managers exist to protect owners’ rights throughout this process. From conceptual design to final delivery and beyond, it’s their job to orchestrate every stage, ensuring the build process is both smooth and legally secure.

Here’s how they do it—and how owners can benefit.

Begin with smart contract negotiation

Every new build begins with a contract.

More than legal paperwork, these documents define rights, obligations, and protections. Yet contracts often contain terms favouring the shipyard, leaving subtle traps for owners.

“The client’s lawyer won’t necessarily build in adequate commercial protections,” cautions Kevin Laverty, Director of Projects at Hill Robinson. “In our experience, we have seen many contracts that leave commercial opportunities for the shipyard to exploit, and traps for owners to fall into.”

A common issue lies in prime cost sums and provisional sums—allowances for variable items such as interiors or equipment packages. Without clarity, these can be interpreted in ways that inflate costs or shift responsibilities.

This is where professional project managers step in, ensuring that terms are clear, measurable, and enforceable. They balance legal requirements with commercial realities, transforming dense contracts into tools that protect the owner’s interests and mitigate long-term risk, including payment terms and correct shipbuilding contracts. Their guidance transforms dense contracts into tools that genuinely safeguard the owner’s interests.

Meeting contractual obligations

Once the contract is signed, the project moves from paper to reality. Most new build contracts assign a range of responsibilities to the owner: approving technical drawings, making stage payments, attending inspections, and ensuring all project requirements are met.

Failing to meet these obligations—even unintentionally—can result in owners’ waiving rights or triggering default clauses.

This is where, acting as the owner’s representative—sometimes under power of attorney— project teams work to ensure these responsibilities are carried out on time and in full. By doing so, they prevent delays, and allow the owner to focus on the broader vision of their yacht rather than the day-to-day minutiae.

A key part of this stage involves integrated planning and managing team members across the project. One such example is the preparation of all owner-supplied equipment.

“All these items need to be delivered to the shipyard in accordance with the agreed timeline and process, or the owner risks defaulting under the contract,” adds Kevin. “Our project managers, design managers, and procurement department work with all the stakeholders to ensure all these items are delivered on schedule.

Coordinating the project team

A yacht comes to life through people as much as plans. Engineers, design managers, naval architects, surveyors, and yard teams all contribute their expertise. But without coordination, even the most skilled team can struggle to deliver a seamless build.

They ensure each job title is clear, relevant professional certificates are earned, every responsibility defined, and all stakeholders work together efficiently. From the general contractor to specialist suppliers, they manage processes in real time, anticipating challenges before they arise and solving problems before they impact the schedule or quality.

This coordination extends to all aspects of project planning. Project managers track approvals, integrate owner-supplied items, actively problem solve, and oversee milestones, keeping the build on track while protecting the owner’s contractual rights. By aligning the team around the owner’s vision, they maintain clarity, consistency, and a win-win approach across all interactions.

In practice, this means the build process moves precisely: inspections happen on schedule, modifications are communicated effectively, and potential conflicts are resolved swiftly. The result is a cohesive project team that functions smoothly, so the owner’s experience remains effortless, even amid a complex, multi-year new build.

Accepting or rejecting the yacht

The moment a yacht is tendered for delivery is often seen as ceremonial—but it is one of the most critical stages of new build project management.

“The contract will allow a very short period of time to accept or reject the vessel,” advises Kevin. “So, our project managers will have started accepting it a long time before it’s offered for delivery.”

Each system, every space, every surface is scrutinised, leaving no room for surprises. Acceptance is built over time through inspections, trials, and detailed observations.

If the yacht is not accepted or reasonably rejected within the contractual timeframe, most contracts include a default mechanism allowing the shipyard to request classification society sign-off.

“Class requirements are simply the minimum safety standards and are quite different to the owner’s expectations,” Kevin explains. “For example, for the quality of the exterior paintwork or teak decking, two of the most common areas of dispute on a new build project.”

Experienced project managers ensure that the owner’s standards, rather than just regulatory basics, dictate acceptance. They ensure the quality of finishes, interiors, and technical systems, and go one step further to ensure a certain level of excellence beyond just basic adherence.

Long-term protection and warranty management

Delivery isn’t the end of responsibility. The first year of operation is crucial. This is when systems settle, operational quirks emerge, and warranty claims arise. This is quite normal and usually nothing to worry about.

Professional project managers can continue to guide the owner through this phase, acting as the interface with the shipyard, suppliers, and service teams. They oversee warranty claims, ensure repairs or replacements, meet contractual standards, and help the owner navigate any issues before they arise.

Why professional project managers matter

Professional project managers really are more than coordinators. Their role is to understand the owner’s vision. How will they move through the yacht? How will they use each space? What experiences should each detail deliver?

Kevin recalls a seemingly small but telling example: a lighting installation in the owner’s suite.

“The shipyard we were working with had planned for the owner’s suite to control the lighting via an iPad,” he explains. “Now, this seems cool and modern, but think about it: in the middle of the night, do you really want to have to look around for your iPad? What if it wasn’t charged in time and ran out of battery? Do you really want to have to call the crew to simply turn on your lights? In the end, the owner went with a manual light switch and was much happier with the decision.

“A lot of the work we do is in the details, not just the big picture. Both are equally important.”

It is this attention to nuance that separates good project management from great. Beyond overseeing schedules and budgets, they apply expertise in design management, contract negotiation, and new build projects, leading teams and coordinating processes in real time. They anticipate challenges before they arise, turning potential complications into seamless solutions.

They safeguard the owner’s rights at every stage—from contract negotiation to long-term warranty management—ensuring that expectations are not just met, but fulfilled with precision.

Great project management takes the maze of contracts, teams, and schedules and makes the journey feel effortless—even fun—for the owner.

Protect your build with confidence

Every new build is a journey, and every journey deserves expert guidance. With professional project managers overseeing contracts, processes and delivery from start to finish, owners can focus on the vision of their yacht, not the risks or the work.

If you’re planning a new build, let us guide you through every stage and protect your investment, your rights, and your experience.

Discover how we can safeguard your new build project today.

Previous news article

Next news article