POINTS OF NEGOTIATION IN FOREIGN CONSTRUCTION CONTRACTS

Be sure to understand the details when building a vessel in another country

- RALEIGH P. WATSON

There are many boatbuilders of all types around the world, but buyers don't always have the luxury of building a boat in their home country. It becomes even more imperative to understand the terms of a construction contract when building a vessel in another country. Certain points of negotiation take on further importance for buyers contracting with foreign builders and dealers.

PROTECTING YOUR INTEREST

Buyers should always perform their due diligence on a builder to ensure they are comfortable with its overall business operations and financial solvency. However, even when dealing with the most reputable builders, it remains important for buyers to protect their interest in a vessel to the extent possible to ensure a creditor or bankruptcy trustee is unable to claim an interest in that property in the event the builder becomes insolvent. The method in which a buyer's security interest is protected depends on the rules of the relevant jurisdiction.