Shipbuilding and repair

The demand for new vessels, alongside the maintenance of existing ones, continues to grow in the commercial and leisure sectors. Penningtons Manches Cooper offers a global team of maritime lawyers with the expertise and experience to assist on shipbuilding and repair contracts covering a wide spectrum, from new builds and vessel modernisation to retrofitting older ships with eco-friendly technologies and constructing low-emission vessels. Our services extend to financing and handling disputes, should they arise.

Experienced shipbuilding contract specialists

As leading experts in this field, our international specialists have been involved in multiple projects for tankers, bulkers, cruise ships, rigs (jack-ups and floaters), floatels, FSOs, fish farms and OSVs/PSVs, and advise a diverse cross-section of shipowners and shipyards on shipbuilding and repair contracts. Our dedicated team regularly negotiates contracts and deals with shipbuilding and repair disputes across a broad range of industries – from offshore oil and gas and renewable energy to the tug and cruise ship sectors.

While Asia still dominates shipbuilding, the European market continues to expand. From our offices in these locations, we work on build projects in shipyards worldwide. The team has been involved in shipbuilding projects in yards operated or controlled by the two major Chinese builders, China State Shipbuilding Corporation and China Shipbuilding Industry Corporation, including yards in Taizhou (Jingjiang), Nantong, Zhoushan, Shanghai, Qingdao and Qinhuangdao.

In Korea, we have experience with building projects for the three leading Korean builders, Hyundai-Samho Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering, as well as Daehan Shipbuilding (Hae-Nam Shipyard) and Hanjin Heavy Industries & Construction. Our Singapore-based lawyers serve the Asian shipbuilding and repair markets, and being fluent in Mandarin, regularly act for and advise Chinese players.

The shipping team is excellent. Their lawyers combine a strong foundation in the law with legal creativity, and high level commercial acumen.

Through our Spanish office, we have particular strength in dealing with joint ventures for the shipping and offshore market, covering both Spanish and English law contracts. Our team also has a notable reputation for advising clients participating in the Spanish tax lease scheme. Their remit not only covers standard forms such as NEWBUILDCON, SAJ, NSF and AWES, but also bespoke contract negotiations including financing and security contracts, bank guarantees, mortgages, subcontracts and supply contracts. We can provide contractual assistance during construction together with the required expertise for drafting and reviewing all delivery and registration documentation.

Where necessary, we assist with disputes in court and in arbitrations relating to shipbuilding, ship conversion, offshore platforms and FPSOs. We advise on contractual and technical disputes, disputed cancellations, financing disputes, claims under guarantees, insurance, delay and force majeure claims.

In France, where our lawyers act on all aspects of maritime law, we are well-known for our handling of contentious matters relating to French shipyards. Our litigation specialists regularly appear before the French courts on behalf of yards, architects and consultant engineers involved in a broad spectrum of shipbuilding and yacht building disputes.

How we help our clients

Refund guarantees and payment guarantees

Performance guarantees and bonds

Ship mortgages

Brokerage contracts

Subcontractor advice (engineering, supply of works and services, equipment supply contracts)

Guidance on shipyard restructuring

Refurbishment contracts

Technical supervision agreements

Builders’ insurance

Ship repair liability insurance

Advice on warranty issues

Grants and ECA-backed build projects

Recent work highlights

Chinese semi-submersible contract

Drafting a US$50 million contract for a newbuild of an innovative semi-submersible vessel at the Chinese Institution of Marine & Offshore Engineering’s yard at Qingdao in China.

Five vessels for fishing company

Advising on contracts worth more than €250 million for the construction of a series of five vessels, contracted by a Spanish shipyard for a fishing company based in Northern Europe.

Cruise operator newbuild contract

Developing and negotiating a €270 million contract for a newbuild vessel in a European yard, on behalf of a cruise operator, which included options for sister vessels.

First dual-fuel ammonia powered vessel

Negotiating contracts on behalf of a maritime systems engineering company for the design, build, and delivery of the world’s first class-approved ammonia fuel and bunker system.

Dual container ship construction

Advising on the construction of two newbuild container vessels in China for a European transportation and logistics specialist – the largest two vessels in its fleet – with European bank and Chinese ECA-backed financing.

Delivery of nine ferry vessels

Acting for an Italian ship owning company in respect of the implementation of Spanish tax lease financing structures, related to the construction of nine ferry vessels by a Spanish shipyard.

Shipbuilding contract for electric tug

Drafting and negotiating a shipbuilding contract on behalf of a Spanish shipyard, which was agreed in order to facilitate the construction of a new, fully electric tugboat.

HSC hybrid vessels for Italian shipowner

Advising on shipbuilding contracts for a series of nine state of the art high speed craft vessels – Europe’s first hybrid high speed passenger ferries – contracted by an Italian shipowner.

Live fish carrier for shipping company

Representing a Spanish shipyard on the shipbuilding contract and related supply contracts for the construction of a live fish carrier vessel worth more than €100 million, for a Norwegian shipping company.

Financing granted to international shipowner

Advising a Spanish bank on the financing granted to an international shipowner for the acquisition and further transformation and leasing of an offshore support vessel to be deployed in Northern Europe.

Shipbuilding subcontracting disputes

Assisting an international electric subcontractor on several shipbuilding disputes, arising out of agreements with a shipyard and a Northern European shipowner.