Ship Repair Projects
The ship repair in Southern Africa is a unique market with various pitfalls but also some interesting ways that the companies work.
One of the big risks for shipowners is repair yards whom, to date, has been specifying some “General Terms and Conditions” in fine print which is of great cost risks to the ship owners as highlighted by BIMCO.
6Sigma herewith gives some more insight into ship repair done in South Africa, the risks that exist and how we vow to work in favour of our clients to avoid these risks.
The South African market has a few historically well-established repair yards. Some of whom are great yards and some of which have been bought over a few times with little to none of the management and experience still in those positions. This could be due to political situations or the natural exchange of management but does bring to attention that shipowners might be well informed to review the qualifications and competency of the management.
One unfortunate reputation South African yards have been building up over the years are some yards’ (even the best of them) opportunistic manner to raise “Variation Orders” for anything possible and even exploiting the Admiralty Law to strong-arm shipowners to give in to these variation orders.
6Sigma aims to rectify this reputation and provide owners with peace of mind by implementing strong contract management in our projects.
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