Thursday, February 11, 2016

Ship Repair in Yiu Lian Dockyards (Shekou) Limited

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

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
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 
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
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
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.
(c) All relevant costs arising from these assistance action will be for ship owners' account.
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
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
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.
1 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
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.
2 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.
4 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.
5 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.
6 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.
7 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$) Qty's Item Price (US$)
      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
  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      
  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                
    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$/pc              
    <=25 21 8   6              
    <=40 30 11   9              
    <=50 38 13   13              
    <=65 50 19   15              
    <=80 60 21   19              
    <=90 70 26   21              
    <=100 81 29   25              
    <=125 100 38   31              
    <=150 120 63   38              
    <=200 175 105   50              
    <=250 231 139   63              
    <=300 288 173   75              
    <=350 475 Case by case 125              
    <=400 645 Case by case 195              
    <=450 802 Case by case 248              
    <=500 1230 Case by case 315              
    * "U" bend clip renewal, US$ 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                  
  a) X-ray           photo    45      
  b) UT           m   25      
  c) Vacuum test         m   20      
  d) Air test             1