BASYCS BREAKFAST SEMINAR – 19 September 2017
On Tuesday 19 September 2017, BASYCS had the pleasure of hosting the third of its 2017 breakfast seminar series, with a dedicated Yacht Refit theme. Members from shipyards, family offices, and private banks heard a presentation by Refit specialist Alberto Vidosa of Nautical Experts and Superyacht lawyer Anouch Sedef of Meyer Avocats.
Alberto and Anouch’s presentation “SUPERYACHT REFIT: WHAT TO CONSIDER?” dealt in detail with the steps to be followed when considering a Refit project; from an owner’s decision to choose a Refit option through to the redelivery of the Yacht post-works, and points to be considered during the Refit warranty period.
Alberto highlighted how crucial it is to define a team of experts to contribute to and advise on the Refit process (and progress). This ranges from Technical experts to on-site Project supervisors at the yard, Legal experts and possibly fiscal specialists, all coordinated by and feeding in to the Owner’s Representative. Crucially the Owner’s Representative should be the conduit of information from the Yacht Owner to the Refit team.
Anouch highlighted the importance of documenting the refit agreement specification as carefully and accurately as possible to avoid disputes later down the line, and of course having the Owner actively participating in the process via regular updates and interchange with their Owner’s Representative.
As in any major project, planning is key and the preparation for a Refit should commence well in advance of the selected yard period. What’s more an accurately detailed worklist not only eliminates the chances of misunderstanding between Yard and Owner teams but also enables an Owner to obtain realistic and comparable quotes for the work to be done, and ultimately to select the right Yard.
Project financials are an important consideration and Owners should bear in mind that typically fixed costs will only amount to 75% of a Refit project total cost. The remaining 25% up to Redelivery may comprise estimated costs (where the Yard can only provide an estimate), budgeted additional costs and finally, unexpected costs. « Expect the unexpected ! » is an important take-away when considering a Refit especially where material works are being effected. However, this should not put Owners off their Refit projects.
With proper planning and attention to such details as team selection, budget and fluid communication between Owners, their Representatives, the Refit Teams and finally the Yard itself, a Refit project should meet if not exceed Owners’ expectations.
BASYCS is most grateful to Alberto and Anouch for this informative presentation which prompted a great deal of discussion afterwards! We anticipate continuing those discussions with those Members who will be attending the Yacht Investor Magazine – Monaco Yacht Show Day on 27 September 2017, during the Monaco Yacht Show.
We look forward to welcoming our Members to our next Geneva Breakfast Seminar, in early November 2017 on the subject of BUSINESS AVIATION FINANCE, where we will be pleased to welcome a representative of a well-known Corporate Jet Finance bank to talk.