Buying • Selling • Building
Part 9
In this 12-part series Rosemont Yacht Services looks at key transaction issues in Superyacht Acquisitions, Superyacht Sales and Superyacht New Builds, and considers how we can assist owners in the process.
Building a Superyacht: From First Concept to Delivery
Define the project
A new-build yacht is not simply a purchase with a later delivery date. It is a multi-year construction, financing and ownership project in which the owner pays progressively for an asset that is still being designed.
Start with intended use, size, range, accommodation, performance, amenities, sustainability objectives, delivery target and total project budget. The budget should include design, project management, professional fees, finance, insurance, equipment, tenders, pre-delivery crew, VAT/import costs and contingency.
Where a family office oversees the project, the new-build budget should be capable of feeding into the family's wider asset reporting. Contract payments, owner-supplied items, professional fees, finance costs and pre-delivery operating expenditure should therefore be captured consistently from the outset.
Selecting the yard is a risk decision
Compare yards on capability, financial strength, delivery record, available slot, subcontractor network and warranty performance, not simply headline price. The owner’s team should understand how much of the yacht will actually be built by the yard and how much will be subcontracted.
Select the contract framework
The building agreement should address price, specification, milestones, title, payment security, inspections, changes, delay, damages, performance, sea trials, defects, warranty and termination. The technical specification and hierarchy of contract documents are equally important.
Protecting money paid before the yacht exists
New-build payments are commonly staged over construction. The owner should understand what has physically been achieved before each instalment, what title has passed in work and materials and what security exists if the builder fails. Refund guarantees, bank security, escrow and progressive-title mechanisms can therefore be fundamental protections.
The owner’s representative is central
On a substantial custom build, the owner’s representative or technical project manager becomes the link between the owner, designers, yard, surveyors, advisers and eventually the captain. Clear authority levels are important: the yard needs to know who can approve drawings, changes and expenditure, while the owner needs reliable reporting on progress, budget and risk.
Control construction and owner-supplied items
Detailed design, makers, weight, class and flag compliance, variations and milestone payments need continuous management. Owner-supplied tenders, artwork, specialist AV equipment or interior items should be tracked alongside yard procurement, with delivery dates, technical interfaces, insurance and cost clearly identified.
The project should anticipate operation
Operational planning should begin long before delivery. The eventual flag, manning, communications, tenders, safety systems and commercial-use requirements can influence construction choices. Bringing the captain and senior technical crew into the project at the appropriate stage can improve commissioning and practicality.
The transition from project to yacht
As delivery approaches, the project organisation has to become an operational organisation. Captain and senior crew join, management and payroll are established, flag and insurance are finalised, finance transitions into its post-delivery form and accounting moves from construction costs to operation.
Commissioning, delivery and warranty
Launch is not delivery. Harbour tests, sea trials, statutory certification and punch-list work follow. Before acceptance, reconcile variations and agreed adjustments, confirm title, prepare registry and finance documents and ensure insurance and VAT/customs arrangements are ready. After delivery, defects should be logged systematically and a warranty survey scheduled well before expiry.
How Rosemont Yacht Services can assist
RYS can work alongside the owner’s technical project manager, lawyers, designers, yard and other professional advisers to coordinate the ownership, corporate and financial-administrative workstreams that accompany a new-build project.
Early in the project, this can include planning the proposed ownership structure, flag, intended private or commercial use, financing arrangements and VAT/customs considerations, with specialist advice coordinated where required.
During construction, RYS can assist with corporate administration, project accounting and cost reporting, escrow or payment administration where agreed, and the administrative requirements associated with contractual payment milestones. Technical certification remains with the appointed technical professionals.
As delivery approaches, RYS can coordinate ownership-company readiness, registry and flag documentation, financing, insurance liaison, VAT/customs arrangements, accounting and other administrative requirements needed for operation.
RYS Transaction Check
☐ Intended use and operational profile defined?
☐ Total project budget established beyond the yard contract price?
☐ Yard financial and delivery risk assessed?
☐ Ownership structure and intended flag considered?
☐ Payment security/progressive-title protections addressed?
☐ Technical project manager or owner’s representative appointed?
☐ Variation, risk and decision registers established?
☐ Owner-supplied items included in programme and budget?
☐ VAT/customs, finance and insurance workstreams progressing?
☐ Operational readiness plan started well before delivery?
- Insight - The Complete Guide to Superyacht Ownership by Rosemont Yacht Services
- Who we are - Rosemont Yacht Services
- Part 8 – The Yacht Has Been Sold - Is the Seller Really Finished?
- Part 10 - Before Signing a Yacht Building Contract: The Decisions That Matter Most
Important note: General information only. Transaction-specific legal, tax, customs, regulatory and flag advice should be obtained where required.