PHASE 1 – PRE-CONSTRUCTION ACTIVITIES

In the pre-construction phase, vital information is captured in the contract, project planning, insurances, warranties and many areas which could become issues if not well defined and managed from the start. During this phase, 6Sigma can assist our clients to ensure that the groundwork is set for a successful project. Some of the tasks we perform in this phase are:

  • Gathering information from the owners requirements, current operations and fleet of vessels to facilitate drafting the tender documents.
  • Mitigate all risks for the new ship building and related operational risks.
  • Document all findings for the ship owner’s records.
  • Identify and select possible contractors for the building contract of new ship.
  • Brief and prepare yards for the upcoming tender to ensure shortest lead time to complete selection, award and start of shipbuilding contract.
  • Identifying suitable designs for the ship, subject to the ship owner’s approval;
  • Draft specifications for the Ship in accordance with the ship owner’s requirements.
  • Once the ship owners has approved the specifications for the ship, in writing the RFP and supporting documents for the tender.
  • Setting up the tender release, compulsory bid meeting, preparation of the framework for evaluation and negotiations.
  • 6Sigma in their technical capacity and will provide contractual and financial guidance on the tender documents.
  • 6Sigma can propose a suitable legal advisor for to finalize the tender documents framework.
  • Assist the ship owners to identify and appoint a ship builder to build the ship, negotiate and draft a ship building contract working in collaboration with the ship owners’s nominated legal representatives;
  • Insofar as this is within the project manager’s control, provide procures that the appointment of the ship builder and commencement of the ship building contract which are subject to the suspensive conditions, valid performance guarantee issued by a guarantor and on terms acceptable to the Ship Owners.

After bids but still part of Phase 1, we assist the ship owners with:

  • Adjudication and evaluation of bids received.
  • Selection of appropriate ship builders to build the ship.
  • Contract and price negotiations.
  • Preparation of project management plans overlaying the shipyards project plan.
  • Provide technical weight in the technical negotiations.
  • Ensure bids are up to date with the required rules and regulations and standards such as:
    • IMO requirements (SOLAS, MARPOL, etc).
    • Classification requirements.
    • Welding procedure.
    • Best practice in the industry.

Ensure that the designs, drawings and plans comply with the relevant rules and regulations

  • Oversee the interior plans, designs contracted items
  • Report to the ship owner’s internal representatives at regular intervals
  • Control compliance with, and submit for consideration, all material specifications for the ship that are in accordance with local marine regulatory bodies, Classification Society and SOLAS requirements with special consideration to structural, fire and safety directives;

Insurances

  • Ensure that the ship builder has comprehensive insurance cover for all insurable risks relating to the building of the Ship, including, but not limited to ship builders’ risk hull insurance, throughout the Phase 2.
  • Due diligence on the preferred shipyards.
  • Obtain ship builder’s insurances within 5 (five) days of the signature date of the ship building agreement between the ship owners and the ship builder.
  • The project manager warrants and confirms that as at the signature date and for the duration of this agreement it has its own comprehensive insurance cover for all risks relating to the performance of the services by it, including but not limited to professional indemnity and statutory insurance cover, and shall pay all premiums in respect thereof, on time.
  • Notify the ship owners immediately upon becoming aware, should any insurances be cancelled, or lapse, for whatsoever reason.

Warranties

  • 6Sigma ensures that the shipyard will carry out its obligations efficiently, speedily and in accordance with best industry practice; it has full legal rights, powers and authority to enter into this agreement, and to exercise its rights and perform its obligations under this agreement;

Ensure the shipyard sub-contractors, cession, assignment and delegation are well controlled by appropriate agreements.

Phase 2 – Construction and Commission Activities

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