Real Vessel Tips: Ship Repair in Yiu Lian Dockyards (Shekou) Limited

General Conditions of Ship Repair in Yiu Lian Dockyards (Shekou) Limited

Preface:

Through negotiation,all these bilateral consent terms,conditions,articles and clauses are formulated to make clear

each party's responsibilities in dealing with the ship repairing work for the purpose for successful

execution of the ship repair work.

Article 1.

In this Contract, unless the context otherwise requires, the terms should have the meanings as below:

( a )

"Conditions" or "terms and conditions" means the standard conditions of Contract for ship repair of

the Contractor set out in this document.

( b )

"Contract" means the Contract for the ship repair.

( c )

"Contractor" means Yiu Lian Dockyards (Shekou) Limited, or its agent.

( d )

"Customer" means the ship owner, owner's representative, or the party signing the Contract with

the Contractor. It is hereby agreed that where the Owners of the Vessel has not directly and / or

personally Contracted or negotiated with the Contractor under the Contract, the Customer

irrevocably warrants that Services and other work to be carried out under the Contract together

with all terms and conditions of the Contract are authorized by the Owner.

( e )

"Repairing Project" means working items agreed by both partied in writing.

( f )

"Customer's representative" means the representative or agent appointed by the Customer. The

Customer hereby agrees the representative shall have full authority to (including but not limited)

issue and sign repairing list, approve repairing work completed by the Contractor, sign bills on

behalf of the Customer, and make necessary amendments to the repair list.

In case the Customer has not appointed any representative, the Captain of the Vessel or any

officer or persons the Customers in the yard's premises should be regarded as having all authorities

that belongs to the Customer's representative.

( g )

"Vessel" means the Vessel that is to be repaired by the Contractor.

( h )

"Working period" shall mean weather workings days, public holidays excluded and shall commence

from the next day of arrival of the Vessel at the shipyard. In no circumstances shall the working

period begin before the firm order regarding scope of works is agreed.

( i )

"Completion date" means the date of completion of the Repairing Project being recorded in writing by

the Contractor and confirmed by the Customer.

( j )

Written form includes Fax, Telex, Cable, Email and Letter etc.

( k )

Words importing singular number include the plural number and vice versa.

Article 2.

When the Customer gives order for ship repairing, the Customer shall submit the repairing

specification to the Contractor and key drawings such as docking plan, general arrangement,

capacity plan and midship section as well as other technical information should be forwarded to the

Contractor on time upon placing firm order.

Article 3.

Where owner intends to use subcontractors for repairs,he must get a prior approval in

writing form the yard during the Vessel's stay in the shipyard. The yard shall be entitled

to impose a surcharge on the subcontractors' fee. The yard shall have the right for safety

or other reasons,to require the sub-contracotors to stop work at any time.

Where the Contractor agrees such appointment, the Customer undertakes that the

appointed persons,companies or other organizations will comply with the contractor's

safety regulations in force at the time.

Article 4.

The Customer should send the Vessel to the working place at the date being agreed in advance. If

one party wants to change the date thereof , it shall get approval from the other party and the

completion date should be adjusted accordingly. Should the Customer fails to send the Vessel to

the mutual consent predetermined place on time without the written consent of the Contractor in advance,

the Contractor shall have the right to amend the relevant terms and conditions of the contract.

The Vessel should be, at the time of delivery, gas-free and ready for commencement of repairing works.

Article 5.

If the Customer fails to perform any obligation stipulated in the Contract during the repairing, the

Contractor shall have the right to suspend or cancel the Contract with an immediate effect by written

notice to the Customer. The Contractor shall also have the right to claim compensation from the

Customer for losses resulting from the suspension or cancellation of the Contract.

Article 6.

All repairs shall be carried out in accordance with good shipbuilding standards in the event the

repair or any part thereof is subject to class approval, the Customers shall be responsible to make

the necessary arrangement and all expenses thereof.

Article 7.

All property right of the dismantled material and parts (except propeller and tail shafts) shall belong to the

Contractor.

Article 8.

The Customer shall provide the necessary spare parts, materials, and equipment to the Contractor

without delay with the guarantee of both quality and quantity according to the agreement reached

by the parties.

If the Customer fails to perform the duty stipulated in the above, the Contractor shall have the right

to delay the completion date accordingly.

Under any circumstance,the Contractor shall not be responsible for anymalfunction, damages

or accidents caused by any fault or defect of the said spare parts, materials and equipments

supplied.

Article 9.

The Customer should make payment on time according to the terms of payment stipulated in the

quotation upon receiving the charge receipt submitted by the Contractor according to the Contract

or the final ship Repairing Project.

If the payment is delayed, the interest at the rate of 10% per annum ( or pro rate) of the total value

of delayed payment shall apply, accruing from and including the due date to the date of actual

payment.

Where the payment is in the form of instalments as stipulated in quotation or otherwise agreed by

the parties, the default by the Customer in any one instalment shall result in all other unpaid

instalments being immediately due and payable. In that event, the Contractor shall be entitled to

demand for the entire amount.

Article 10.

Unless the Customer has agreed on the final price, the Customer is deemed to have accepted the

Contractor's invoices as well as the repair work, or any part of them, before the departure of the

Vessel.

Article 11.

In the event that there are changes to the shiprepairing work with prior consent of the parties, the

Customer shall be responsible for the extra expenses for labour force, material wasted or any other

fees arising form the addition or reduction.

Article 12.

The Contractor shall not be liable to the Customer or be deemed to be breach of the Contract by

reason of any delay in performing or any failure to perform any of the Contractor's obligations in

relation to the project plan if the delay or failure was beyond the Contractor's reasonable control

which shall include, without limitation, act of God, force majeure, explosion, flood, inclement

weather, fire, accident, war or threat of war or similar event, acts, restrictions, regulations or

measures of any kind on the part of any government, import or export regulations or embargoes,

strikes or other industrial actions or disputes (whether involving employees of the Contractor or of

a third party), difficulties in obtaining materials, labour, fuel, parts of machinery, power or failure of

breakdown in machinery and acts, omission or delays by the Customer. The Contractor shall notify

the Customer in writing within reasonable period of occurrence of such circumstances. The

working period shall be expanded accordingly. When a force majeure happens or a force

majeure will happen, the ship owners shall have the obligation to take action for preventing the

the vessel from damage or making damage to the shipyard or any other third party. For assistance

purpose, the shipyard may require the vessel to follow the shipyard's arrangements, and the relevant

costs arising from those assistance actions will be for ship owner's account.

Especially when an expected typhoon or tropic cyclone will come:

(a) When the ship is moveable, the ship shall go to the anchorage. The shipyard may assist on

arranging tugboats / pilotage etc.

(b) When ship is not moveable due to construction change, the shipyard shall offer berthing place,

and the ship shall draw the plan for how to defend the ship during typhoon or tropic cyclone, for

ship side and shipyard side to discuss the plan for making actions.

Article 13.

Should either party be prevented from performing his obligation under the Contract, or any part of

it , due to the operation of article 12, either party can notify the other party of the termination of the

Contract or modification of some Contract terms, the Customer, however, shall bear the cost

expended by the Contractor (such as the actual cost expended in executing extra work, in

purchasing materials and in supplying materials or services), except

( a )

the cost incurred on correction of work which is due to Contractor's fault which the Contractor

is responsible to

( b )

the expenses due to negligence of the Contractor in performing his duty, and

( c )

the cost of materials which have not been used on board and may be used for other

purpose by the Contractor before the termination of the Contract.

Article 14.

The Vessel will remain being controlled,managed and taken care by the Captain during the working

period, including repair, mooring, sea trial and berthing, so the Customer shall be responsible for the

safety of the Vessel. During the said period, the Customer shall be responsible for the following

events. (except the events caused directly by the Contractor):

( a )

the loss or damage of the ship, the goods and spare parts on board, the properties of the

Customer, the employee or the crew, as well as some parts remained temporarily at the

shipyard after termination of repair,

( b )

any malfunction or accidents,

( c )

the harm, disease or death of the Customer, the employee, the crew or the passengers staying on

board.

The Customer shall insure the Vessel, the equipment on board, the crew as well as other properties

owned or controlled by the Customer.

Article 15.

The Customer shall notify the Contractor in writing of any defects on spare parts, materials, or

equipments supplied by the Contractor or poor workmanship on the part of the Contractor,

(attaching reports of the Captain or the chief officer, the chief engineer, or the Customer's

superintendent) within three months from the date of the departure of the Vessel, Failing to

perform the obligation of notification within the said period, the Customer will be deemed to waive

his right in connection with the defects or bad workmanship concerned and the Contractor is no

longer liable for it.

The Contractor has the right to choose to verify the alleged defects or poor workmanship by joint

investigation and the Customer shall cooperate in the investigation. Where the Contractor requires

joint investigation but the Customer does not cooperate, the Contractor is not liable for the alleged

defects or poor workmanship. Where the Contractor is liable for the defects or poor workmanship,

his liability shall be limited to the same price for the same repair work in his shipyard.

Article 16.

Notwithstanding any other stipulation in this Contract, the Contractor's liability for any loss,

damages, or delay or work, for whatsoever reason, shall in no circumstances exceed ten percent

(10%) of the Contract price.

In any circumstances whatsoever, the Contractor shall not be liable for any consequential damages

or loss of profit, loss of use, loss of charter of the Vessel or damages consequential upon all such

losses.

Article 17.

Should and unreasonable claim for a so-called poor workmanship be made by the

customer during or after performance of repair work,the Contractor shall have the right

to defend itself and any loss caused by non- performance or delay of the repair work

hereafter shall be the liability of the Customer.

Article 18.

The Vessel 's crew are allowed to carry out routine maintenance provided that they do not

interfere with the Contractor 's repair work. They are not permitted to perform hotwork and

dry-dock work of any nature.

Any losses or damages caused by the Customer's violation of "Regulations of the Shipyard" (see

appendix) or the safety regulations during the Vessel's staying at the shipyard shall not be the

Contractor's liability and the Customer shall be responsible for all loss damages caused by

Customer's violation.

Article 19.

The Customer shall be held liable for any claim made by a third party for infringement upon its

trade mark, patent, copy right or any other rights of similar nature arising from the use of drawing ,

information, technical manuals or techniques provided by the Customer when the mechanical

equipments, parts or fittings are manufactured. The Contractor shall have the right to reject such a

claim made by the third party and the contractor has the right to seek recovery from the Customer,

and the Contractor shall also have the right to stop such manufacturing.

Where the Contractor has reasonably settled such a claim in whatsoever ways with a third party,

the Customer shall compensate the Contractor for the amount that the Contractor has paid to the

third party and the fees for settling such a claim including court fees, lawyer's fees and any other

actual expenses reasonably arising in defending such a claim.

Article 20.

The Customer shall not disclose the drawings or information of the Contractor to a third party,

without the written consent of the Contractor, and vice versa.

Article 21.

If any equipments, parts or components are damaged or destroyed during the performance of the

Contract and it is not the Contractor's fault, the Customer shall not cancel the Contract and shall

pay the amount for repair work as originally stipulated by the Contract. In addition, where the said

damaged or destroyed items need repairing, the Customer shall bear such repairing fees.

Article 22.

All employees of the Contractor shall observe the Vessel's regulations (the Vessel's regulations are

to be provided by the Customer's representative or the Captain in Writing) and are not allowed to

go into any rooms unconcerned with the repairing work on board.

Article 23.

All disputes arising under or in connection with this Contract (including but not limited to:

execution、 validity、 modification、 transfer、 fulfillment、 liability for breach of contract、

interpretation、 dissolution etc.) shall be referred for arbitration in China Maritime Arbitration

Commission (CMAC) (Beijing) in accordance with the arbitration rules of CMAC for the

time being in force. The award of CMAC shall be conclusive and binding upon both parties.

The governing law of this Contract shall be the laws of P. R. China.

In the event the Contractor takes any action, legal proceedings, arbitration proceedings or

otherwise to recover any amount outstanding under this Contract, the Customer shall be

responsible for all costs and expenses (including legal fees on a solicitor and clients basis) incurred

by the Contractor.

Article 24.

If there is any clause or term provided by the Customer, which does not stand with the

Contractor's terms and conditions, the Contractor's terms and conditions shall prevail.

Appendix:

Regulations of the Shipyard

The following regulations shall be observed by any vessel getting into the designated site at the shipyard

to get repaired or leaving the shipyard after the completion of the repairing performance.

The owner or his representative shall advise the shipyard of following items before the entry of

the vessel.

1.1

Ship's name, principal particulars, tonnage, and classification.

1.2

The drafts when entering, staying at or leaving the shipyard;

1.3

Whether there are goods, fuel oil on board, the kind of fuel and oil, quantity of fuel oil and loading

position.

1.4

Whether there are any damages or defects on the parts of the vessel under water.

1.5

Points of attention for the shipyard when the vessel enters, berths or leaves the shipyard.

1.6

The points of attention for the shipyard during the performance of work.

1.7

Combustibles, explosive and other dangerous articles, as well as other matters concerted being

deemed necessary to be explained by the Owner.

In order to meet the requirements of the inspection, gas free (combustible and explosive gas),

removing of sewage, refuse and dirty ballast water etc shall be cleared away before the entry of

the vessel and at same time the dangerous articles such as explosive and harmful articles, etc. shall

be removed.

3.1

The ship party shall coordinate its activities with the shipyard when docking and undocking. In case

necessary measurement is carried out, longitudinal draft and mooring wire shall be adjusted for the

safety of the vessel.

3.2

All equipments shall be operated by the ship party during the performance of repairing and testing.

Pilots for entering and leaving the port, and the quarantine and customs of the vessel shall be

handled directly by the Owner with China Ocean Shipping Agency.

The following items shall not be allowed when the vessel stays at the shipyard.

5.1

Fumigating cargo holds in the location at the shipyard.

5.2

Discharging dirty oil or soils with oil and refuse or waste materials, garbage to the outboard

5.3

Bilge pipes to be connected in the dock (floating dock or drydock).

5.4

Drain pipes to be used to clean the hull (such as deck drain pipe and discharging pipe) and paint.

The repairing lists, specifications and adding and canceling items shall be submitted in writing by

the Owner's representative to the superintendent or the agent of the shipyard.

The Owner or the Owner's representative and crew must pay attention to and observe the

regulations for fire prevention, guarding against thieves as well as the other safety measures.

Item No.		Description of job						Unit	Unit Price (US$)		Qty's	Item Price (US$)
		Description of job							Gross	Net		Gross	Net
1		General Services
1)		Docking rates
	a)	Docking and undocking incl first 2 days						lot		2400	1		2400
	b)	Dock rental of subsequent day						day		780	3		2340
		Note: any fraction of 1 day will be charged as 1 day

		Dock block rearrangement if necessary
						keel block		pc	75
						side block		pc	50
2)		Rigger services
		Riggers service for berthing /docking/undocking/departure						shift		440	4		1760

3)		Pilotage
		Pilotage cost for docking or undocking						shift		480	2		960

4)		Tugboat
		Tuggage cost for docking or undocking						shift		1860	2		3720
		Tuggage / pilotage for arrival / departure will be arranged
		by owners' local port agent

5)		Wharfage						day		320
		Note: any fraction of 1 day will be counted as 1 day

6)		Fire watchman			allow for	2	men	man/day	120

7)		Fire line connection and disconnection
	a)	Fire line connection and disconnection					2 lines,3 times	line/time	40		6	240
	b)	Fire keep pressure					2 lines	line/day	40

8)		Fresh water
	a)	Fresh water line connection and disconnection						line/time	40
	b)	Fresh water supply						ton		2

9)		Compressed air supply
		connection/disconnection						line	40
		Keep for using			(min 4 hours/line//time)			line/h		7

10)		Shore power
	a)	Shore power cable connection and disconnection						time	100
	b)	Power supply						kwh		0.3

11)		Erect / remove staging
		Tower staging						m3		2
		Hanging staging						m2		16

12)		Cooling water
	a)	Cooling water line connection and disconnection						line/time	40		4	160
	b)	Cooling water supply						line/day	40

13)		Ballast water
	a)	Ballast water line connection and disconnection						line/time	40
	b)	Ballast water supply						ton	0.4

14)		Rental of crane (shore or dock)						hour		50

15)	a)	Gangway on and off, per gangway per time						unit	460		3	1380
	b)	Safety guard service						day	120

16)		Gas free inspection
		Initial inspection						tank/time		55
		Subsequence inspection						tank/time		50

17)		Garbage diposal
		Garbage bin to be supplied for galley garbage disposal						day	30

18)		Cherry picker with driver service						hour		60
		Note: min charge 4 H/shfit.

2		Tanks cleaning
		Cleaning fresh water tanks						m3	2
		Cleaning ballast tanks						m3	2.2
		Cleaning FOT						m3	12
		Cleaning DOT or LOT						m3	10
		Note: min. charge 50m3/tank
		Remove/disposal mud						ton	60
		Pump out remaining water						ton	25
		Remove/disposal oily water						ton	60
		Remove/dislposal oily sludge						ton	180

3		Hull treatment			(owner's paint)
		Scupper chute on/off						pc	20
		H. P washing (200 kg/cm2)						m2		0.7
		Scraping						m2		3
		L. P washing						m2		0.3
		SA 2.0						m2		4.8
		SA 1.0 or sweeping						m2		3.8
		T/U	(owners supply paint)					m2/coat		0.4
		F/C	(owners supply paint)					m2/coat		0.35
		Note: SPC, extra						m2/coat		0.5
		Hull marks repaint with O/S paint						job		820	1		820

4		Dry docking works
	1	Hull anodes renew with o/s						pc	20
		For yard supply zinc anode						kg		5

	2	Open/close sea chest						pc	150
		Sand blasting and paint sea chest						pc		220

	3	Bottom plug remove/ refit						pc	20
		Vacuum test for bottom plug						pc		45

	4	Rang our both anchors and chains, clean, measure ,
		marked with owner's paint and restore						job		1180	1		1180

	5	To clean both chain locker and apply one coat O/S paint						job		640	1		640

		Tailshaft
	1	Measure tailshaft wear down clearance						time		360	2		720
	2	Normal polish propeller ( 4 blade)						time		1180
	3	If need dye check for propeller root						time		380
	4	Remove/refit propeller						time		1480
	5	Withdraw tailshaft including intermediate shaft remove
		and refit						time		3260
	6	Remove, overhual stern tube seals with O/S and refit						pc		620
	7	Skim chrome liner if needed						pc		480
		Cherry picker for above to be extra					(min charge 4 H/shift)	set/hour		60

		Rudder
	1	Measure rudder pintle clearance						time		380	1		380
		Cherry picker to be extra				(min charge 4 H/shift)		set/hour		60

5		Other jobs:

	1	Manhole cover
		Open and close manhole covers						pc	60
		Gaskets renewal with yard supply						pc		15
		Studs renewal with yard supply						pc		4
		Erect the handrail for safety						pc		8

	2	Ventilation service
		Provide ventilation for all tanks for ABS survey						tank/day		80

	3	Aux. boiler and exhaust boiler repair
		Manhole cover open and close						pc		120
		Gaskets renewal with yard supply						pc		35
		Both side clean by high pressure water washing						set		2800
		Safety valves overhaul and pressure test.						pc		390
		Boiler pressure test.						set/time		810
		All the mounting valves overhaul and pressure test for ABS.
			refer to following tariff
		Boiler mountings to open up, check for survey in
		place, and close with new packing. (Gross price)
		valve Dia (mm)			globe valve		cock
		25			52		80
		50			75		90
		75			100
		100			120
		125			145
		Note:
		1.Overhaul of superheater valve shall be extra.
		2. Any repair and renew shall be extra.
		3. Remove valve to workshop shall be 150% of above.

***		Motor overhaul tariff (net price)
		Motor remove to workshop, open up, clean,
		varnish, bake, close up and test on completion
		power (kw)		AC motor
		1		66
		3.7		118
		7.5		162
		10		176
		15		237
		20		306
		30		366
		40		394
		50		429
		60		473
		75		538
		100		694
		Note: 1) Parts repair/renewal to be extra
		2) Same noumenon transveser motor add 50%,
		multi-speed motor add 50%, fan motor add 25%
		3) for motor rewinding charge as K=2.8

***		Sea valve tariff		( gross price)
		Open up valve for survey, grind in, clean and paint
		(owner supply), renew packing and close in place
		dia	globe	gate / butterfly / storm
		(mm)	US$/pc	US$/pc
		<= 25	45	59
		<= 50	53	75
		<= 80	68	89
		<= 100	83	112
		125	105	154
		150	130	195
		200	162	243
		250	194	292
		300	226	340
		350	260	388
		400	292	454
		450	340	518
		500	373	583
		Note: 1	Renewal of valve (owner supply), 20% down
		2	In tank, cofferdam, pump room, 30% up
		3	In E/R or C/H 20% up; in DBT, 30% up, in duct keel, 35% up
		4	Valve to workshop repair, 50% up

***		Pipe work tariff		( gross price)
		Mild steel pipe (sch 40) renewal incl. bolt, nut and gasket,
		excl flanges and bends ( gross price)
		dia	pipe	per bend add		per flange add
		(mm)	(US$/m)	(US$/pc)		US$/pc
		<=25	21	8		6
		<=40	30	11		9
		<=50	38	13		13
		<=65	50	19		15
		<=80	60	21		19
		<=90	70	26		21
		<=100	81	29		25
		<=125	100	38		31
		<=150	120	63		38
		<=200	175	105		50
		<=250	231	139		63
		<=300	288	173		75
		<=350	475	Case by case		125
		<=400	645	Case by case		195
		<=450	802	Case by case		248
		<=500	1230	Case by case		315
		Note:
		* "U" bend clip renewal, US$ 3.5 per inch dia
		* Deck and BHD penetration: 200% of renewal
		* Removal/refitting of pipe: 35% of its renewal
		* Pipe (main or branch) length charged min will be 1m
		* Pipe's length including length of bend and reducer
		* Auxiliary work to be extra
		* SCH 80, 35% up; H.P. pipe 50% up
		* Galvanized pipe, 25% up; acid treated pipe, 15% up
		* Pipe in E/R, C/H, TST, 20% up
		* Pipe in DBT, duct keel, APT, FPT, pump room, 30% up
		* Lavatory pipe, 35% up
		* Painting exterior, 10% of pipe renewal price
		* Sleeve or reducer charged as 0.8m pipe renewal

***		Steel work tariff		(net price)
	a)	Steel plate (mild steel) of structure renewal, general rate						kg		1.1
	b)	Steelwork (non-structure, deck fitting) such as doors,						kg		1.3
		ventilation, mushroom etc …
	c)	Steelwork must be carried in dock (such as under water						kg		1.4
		bottom, under water bottom shell, and the internal
		structures connected with these bottom or shell plate)
	d)	Notes for the above items "a)" and "b)" and "c)":
	d1)	When plate thickness is over 5 mm, only even number
		thickness plate is available
	d2)	Shop primed, included
	d3)	Small pc min charge 15kg/pc, flat bar min charge 15kg/m
	d4)	Bulb bar, 35% up; angle bar, 25% up
	d5)	High tensile plate, 15% up
	d6)	In FPT, APT, DBT, pump room, duct keel, E/R, 25% up
	d7)	In TST, wing tank, 20% up
	d8)	Single curve, 15% up, double curve 25% up
	d9)	Bulbous bow, case by case
	d10)	Staging, per m3		Tower staging				m3		2
		Hanging staging						m2		16
	d11)	Remove and refit back, 60% of its renewal
	d12)	Burn out area grinding / painting to be extra						m2		6
	d13)	Renewed plate apply 2 coats O/S paint only						m2		3
	d14)	Access work / testing to be extra
		Testing
	a)	X-ray						photo		45
	b)	UT						m		25
	c)	Vacuum test						m		20
	d)	Air test						m³		1

THE END

Real Vessel Tips

Thursday, February 11, 2016

Ship Repair in Yiu Lian Dockyards (Shekou) Limited

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