Highlights from the NZMTA conference 2025
Peter and Troy both attended this year’s New Zealand Maritime Transport Association conference in Queenstown, where New Zealand’s commercial workboat sector gathered with associated industries, regulators, and policymakers, to meet and talk about issues and success stories from industry, as well as looking ahead to what the next year will bring.
Well done to the NZMTA committee for delivering such a good conference and bringing such a diverse range of people together with a shared interest in strengthening New Zealand’s commercial marine sector.
Some major conference highlights included:
The Associate Transport Minister James Meager’s opening address, with emphasis given to reviews to New Zealand’s biofouling requirements for vessels and the implications this is having on the commercial sector
Q-West and Vessev sharing more of their stories in developing hybrid and fully electric passenger vessels
Surveyor guidelines for complying with MARPOL and Maritime Rule Part 199
Conclusions from the TAIC report into the fatal I-Catcher capsizing in Kaikoura in September 2022
In addition to these presentations, Peter and Troy presented to the delegates on perspectives and common pitfalls associated with vessel build contracts, reflecting on perspectives Peter gave six years ago on the topic.
Dawson and Associates has successfully represented New Zealand and Australian owners in ship build negotiations with yards, and has recently had a surge in such instructions. Throughout this experience there have been consistent themes and trends that have emerged as potential points of challenge or contention, and it behoves yards and buyers alike to focus on these before signing an agreement to ensure the build process is as smooth as possible.
A successful build experience is a great advertisement for the yard in particular – and New Zealand boat building in general. For our domestic ship build industry to flourish in a very competitive international environment, it is important to consistently get the details right.
TRIPPING POINTS
The points Dawson and Associates commonly sees as tripping points for the build experience include:
Vessel scoping at the pre-contract stage
It is important from the outset to consider matters such as the vessel’s intended use, flag and registry, and class society if any. Care should also be given to production vessels and modifications, as these may have a significant impact on the build and performance experience. It is also crucial that a detailed and specific vessel design and specification is included with the contract, including a clear scheduling of completion milestones (and associated payments!).
Knowing who is responsible for a vessel’s design and performance is equally important, especially where a yard contracts out for design (including interior design) work. What happens if a vessel does not meet the speed or fuel burn specification, is this the fault of the yard, the designer, or someone else?
Contractual process
While less glamourous than vessel design, the “nuts and bolts” mechanics of the contract process itself is extremely critical to get right. This is very much a matter of “preparing for the worst”, but will save tremendous time, effort, and cost in the event of a dispute emerging. Accordingly, consideration should be given to consequences of delay, the contractual variation process, title (and transfer of title at delivery), and the function of performance bonds and warranties from the yard. Buyers may also request that a buyer’s representative be appointed to monitor and review the build or even be based at the yard for the duration, to ensure that work is being completed on schedule and that problems are addressed as they arise, rather than being ignored until they become more significant.
Managing disputes
It is inevitable that something will not go exactly to plan, and so preparing a process to manage this during the contractual negotiation stage is critical. Ensuring there are clear and effective processes for documenting everything that is agreed, including variations, is vital, as is the discipline once the build has commenced to sticking to it.
Dawson and Associates have acted in many matters where the main point of contention could have been resolved within days had accurate paperwork been available to connect the work with its associated costs and the claim. Similarly, having a process that allows for the appointment of an independent third party expert at the outset can allow for the heat to be taken out of a dispute and has the potential for pragmatic solutions to be introduced for consideration.
Dawson and Associates are experts in ship build contracts, and have lots of experience acting for both yards and buyers alike. If you are looking at building a vessel, are a yard wanting to review and possibly improve your existing contract document, or are in the middle of a vessel build and there is an issue arising, please contact Peter Dawson on +64 27 229 9624 peter@maritimelaw.co.nz or Troy Stade on +64 27 368 6730 troy@maritimelaw.co.nz.