Troubled Project and Company Turn Around
Working with Banks, Owners Representatives, Builders and Designers the need for turnaround can fall into three scenarios. Either the Yacht Project is troubled, the Yacht Builder is having problems, or a key supplier is in difficulty.
Examples of what the troubles can be caused by are:
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A lack of sales by the builder can cause Owners to have concerns if they suspect that their Stage Payment are being used for something other than their Yacht.
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An Owner fails to make a stage payment, which means that production stops on one Yacht, which then creates a log jam for other Yachts that are being built that need that space
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Well defined Project but Scope Creep occurs where an Owner modifies the specification then is dis-satisfied with the increased cost or time delays
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A Yacht has been started with in-adequately detailed and costed specification and/or planning, then as work progresses the Owner realises what the full cost and time delay is to achieve the quality required
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A builder starts a Yacht for an Owner but does not have sufficient management controls in place to document change orders, issues, action items from meetings, cashflow and starts to have contractual problems
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The Owner and his team, particularly if it has Vessel has been recently acquired, may negotiate a refit of a Yacht, down to the Refit Yards lowest price. The risk can be that once panels and machinery start to be taken apart, corrosion and wear and tear can increase the cost and time delays.
The effect inevitably will be loss of trust and needs to be re-established
The solution can be:
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An independent audit of a Yacht Build from a Technical and Financial view point.
Regent can help
by setting up Spread Sheets to look at the Build Contract Value and Subsequent Change Orders compared with funds received. Surveyors and Chief Engineers can check that what is specified and in the change order is what is on the Yacht or at the Yard. Lawyers can confirm ownership compared with the contract.
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If a Builder or Sub-Contractor is failing, new Management and Capital may need to be called in.
Regent can help
by speaking to our network of Engineers, Lawyers, Management turn around teams, Investors and Competitors who may be interested in acquisition.
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A Builder may need to invoke the cancellation clause in the Build contract if the Owner is un-cooperative.
Regent can help
by preparing independent planning, specifications, management documentation etc. if the Builder needs to approach their bank for funds to carry on with the build and find a new buyer.
Preventative measures can be:
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As a Yacht Builder, ensure you have all of the Management Tools in place,
Regent can help
provide a comprehensive build contract and specification, change order documentation, planning, risk analysis, logs for issues to be actioned etc.
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As an Owner ensure that the price paid for a Yacht is realistic. If a refit needs to be aborted, ensure that the yacht can be reassembled and sold back into the market quickly.
Regent can help
get the Yacht surveyed, and arrange for it to be taken to a reputable Refit Yard for assessment.
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As an Owner, ensure that a proper Project Assessment is done. Impartial Yacht engineers and surveyors need to assess the Specification and form a Matrix. Marine Lawyers need to review the Build Contract.
Regent can help
by appointing Chief Engineers, Surveyors, Lawyers and work with the Builder on the Letters of Intent, Specification, Planning, General Arrangement Drawings etc.
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