Shipbuilding Business Guide
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We documented 8 challenges in Shipbuilding. Now get the actionable solutions — vendor recommendations, process fixes, and cost-saving strategies that actually work.
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- All 8 documented pains
- Business solutions for each pain
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- Pricing & launch costs
All 8 Documented Cases
Client Dissatisfaction from Warranty Claim Delays
Lost future contracts; reduced client retention[3][5]Buyers experience friction from slow warranty resolutions due to procedural hurdles and limited builder liability, risking long-term relationships and repeat business. Shipyards struggle with claim tracking, leading to operational inefficiencies and client churn. Recurring in competitive markets requiring transparent after-sales support.
Excessive Warranty Repair Costs from Post-Delivery Defects
Not quantified; costs tracked per case including downtime and off-hire[2][3]Shipyards face ongoing costs to remedy defects in materials and workmanship discovered within the standard 12-month post-delivery warranty period, including parts, labor, and external services. Failure to adhere to strict notice requirements results in builders being released from obligations, leading to unrecoverable expenses or prolonged vessel downtime. This creates recurring financial strain as defects are systemic in newbuild vessels due to construction complexities.
Unsecured Warranty Liabilities Causing Cash Flow Bleeds
Maximum liability per warranty regime; downtime costs excluded[2][6]Shipbuilders incur overruns from warranty repairs without adequate bonds, especially offshore where buyers perform fixes and reclaim costs, leading to disputes and tied-up capital. Standard contracts limit liability to repair costs only, excluding consequential losses like off-hire, amplifying expenses. Recurring claims during warranty lifecycle strain operations without financial visibility tools.
Lost Warranty Claims Due to Procedural Non-Compliance
Full defect remedy costs plus interest lost[1][4]Buyers and builders forfeit valid claims if notices lack required form, timing, or documents within the 12-month period or 28-day extension, releasing shipyards from repair duties. This leads to unrecovered costs for defects and poor visibility into liabilities. Systemic in shipbuilding contracts emphasizing formalities over substance.