New Build - Owner's Team
A shipyard comes to a superyacht new build contract with its own project managers, naval architects and lawyers. We assemble and lead the owner's equivalent, ideally before the yard is selected, since the contract and specification determine most of the owner's position for the remainder of the build.
Structure and reporting lines
As owner's representative we sit at the centre of the team, so the owner deals with one point of contact and receives one report. Our consultancy bench provides the engineering, naval architecture, survey and coatings expertise most builds require. The owner's lawyers, family office and captain keep their direct line to the owner, and we work alongside them.
Owner's team
Owner
Sets brief, budget and authority.
Family office
Advises the owner; holds funds.
Legal and tax advisers
Advise the owner.
Owner's representative
Holds the owner's authority. Leads the team, runs the programme, certifies milestones and reports to the owner.
Reporting to the representative: technical specialists, the owner's designers, the captain and chief engineer, and the yacht manager.
Outside the owner's team
Shipyard
Receives instructions from the representative.
Classification society and flag state
Check the yacht against their rules and statutory requirements.
Appointment and responsibilities
Before yard selection
We are usually appointed first, and help the owner select a shipbuilding lawyer and tax and structuring advisers suited to the project before the yard is chosen. The contract, the refund guarantees and the standing of the specification are settled at that stage, and the ownership company, flag and VAT position can alter the specification itself. The insurance broker reviews the yard's builder's risk cover at the same time. On a custom build the exterior and interior designers, and often the naval architect of record, are contracted by the owning company. Where the yard engages them instead, the owner should establish before signature what they are obliged to do for the owner.
During the build
Technical specialists are engaged at particular stages rather than for the duration of the build. The paint inspector attends the agreed hold points, the mechanical and systems consultant the factory acceptance tests and commissioning, and the class and flag specialist the plan approval and surveys. Noise and vibration is the exception: the limits are written into the contract and modelled early in design, but only measured at sea trials. On a smaller or series-built yacht we usually act as the owner's project manager as well; on a larger yacht we place a resident project manager and site team at the yard.
Before delivery
The captain and chief engineer should be appointed during the build, so that those who will operate the yacht can review the specification and are familiar with her systems before handover. The yacht manager follows to establish the safety management system, crew contracts, planned maintenance and the flag and class documentation, so that no certificate or contract lapses at delivery.
Working arrangements
We would normally establish the team on the following terms. The representative's authority is set out at the start in a letter of authority or power of attorney, stating what may be approved without reference to the owner and when it expires. Approvals of variations and milestones given by the representative can bind the owner. All instructions to the yard pass through the representative, as an informal request from the owner or a consultant on site may otherwise be treated as a change order. The representative certifies milestones and the family office releases the funds, so that no one both approves and pays. Specialists are contracted by the owning company wherever possible, so that their duty runs to the owner. The owner receives a single regular report on programme, cost, quality and the decisions needed. Our interests are directly aligned with the owner's by structure: no broker commissions, no referral fees.
The classification society checks the yacht against its rules rather than the owner's specification, and the yard, the flag state and the broker each have obligations of their own; none of them acts for the owner.
Team composition by size of yacht
We scale the team to the yacht. The roles are the same at each size; what varies is the number held full time.
| Project | Typical structure |
|---|---|
| 24 to 35 metres, semi-custom | Representative also acting as the owner's project manager, with regular yard attendance. Lawyer and adviser input at contract. Paint and systems specialists engaged at set points. |
| 35 to 50 metres, custom | Resident representative. Captain or chief engineer on site during the build. Planned specialist visits across all technical disciplines. |
| 50 to 60 metres and above | Representative supported by a resident project manager and site team with discipline leads. Specialists retained through the build. Dedicated cost control, working with the family office. |
Appointment by project stage
| Role | Concept and specification | Yard selection and contract | Build | Sea trials and delivery | Warranty |
|---|---|---|---|---|---|
| Owner's representative | Leads the brief | Leads evaluation | Leads on site | Leads acceptance | Manages claims |
| Family office | Sets the budget | Yard due diligence | Releases payments | Final payment | Tracks retentions |
| Shipbuilding lawyer | Early advice | Leads contract | As required | Delivery documents | Disputes |
| Tax, structuring, insurance | Structure, flag, VAT | Reviews terms | As required | Registration, cover | |
| Mechanical and systems | Technical brief | Specification review | Design review, factory tests | Commissioning | Defects |
| Paint and coatings | Paint specification | Hold-point inspection | Final inspection | Claims | |
| Noise and vibration | Targets | Contract limits | Modelling, mounts | Measurement | |
| Interior | Brief with designer | Scope allocation | Mock-ups, samples | Snagging | Defects |
| Naval architect | Concept review | Specification review | Weight tracking | Stability, trials | |
| Class and flag compliance | Class notation, flag | Specification review | Plan approval, surveys | Certification | Annual surveys |
| Owner's designers | Concept, general arrangement | Specification drawings | Design development, approvals | Final inspection | |
| Captain and chief engineer | Operational input | Specification review | On site | Trials and acceptance | Defect log |
| Yacht manager | Operational set-up | Assumes management | Manages the yacht |
Common questions
Who is on the owner's team for a superyacht new build?
The owner's team is led by the owner's representative and includes the owner's family office, a shipbuilding lawyer, tax, structuring and insurance advisers, technical specialists (mechanical and systems, paint and coatings, noise and vibration, interior, an independent naval architect, and class and flag compliance), the owner's designers, and the future captain, chief engineer and yacht manager. The shipyard, classification society and flag state sit outside the owner's team.
What does an owner's representative do on a yacht new build?
The owner's representative holds the owner's authority on the project. They run the programme and reporting, review the specification, certify milestones and change orders, co-ordinate the specialists and designers, and are the sole channel of instruction to the shipyard.
What is the difference between an owner's representative and a project manager on a new build?
The owner's representative acts for the owner and holds their authority; the project manager runs the day-to-day work on site. On a smaller or series-built yacht one person usually fills both roles. On a larger yacht a resident project manager and site team report to the representative.
When should the owner's team be appointed?
Before the yard is selected. The owner's representative should be appointed first, ideally before a Letter of Intent, followed by a shipbuilding lawyer before any heads of terms are signed, since the contract and specification determine most of the owner's position for the rest of the build. Specialists are then engaged at particular stages, and the captain, chief engineer and yacht manager during the build.
Who gives instructions to the shipyard during a new build?
Only the owner's representative. Instructions from the owner, the family office or a consultant on site pass through the representative, since an informal request may otherwise be treated as a change order. The representative's authority is set out in a letter of authority or power of attorney.
To whom do the specialist consultants owe their duty?
To the owner. They report through the representative so that the yard hears one voice and the owner receives one report, but they are contracted by the owning company wherever possible and their duty runs to the owner. We take no commission or referral fee from anyone we introduce.
Can my family office or captain act as owner's representative?
A family office should control the money and a captain brings operational judgement the build needs, but neither is the same as having managed a build. The representative should be someone who has delivered a yacht from a yard before.
Does Foreland supply the whole team?
Our bench covers engineering, command, naval architecture, survey, coatings and performance sailing. Legal, tax and other specialist advisers are appointed independently, and we can assist with their selection.
Can a team be put in place once the build has started?
Yes, although some of the owner's leverage will already have been settled in the contract and specification. We can review the position at any stage and set out what can still be improved.
Related: New Build Owner's Representation, Technical Consultancy, Yacht Management, What the Owner's Rep Does at Each Stage, Owner's Representative vs Project Manager vs Broker, How to Buy Your First Superyacht
Discuss your project
We should be glad to set out the team your project needs and how we would resource it, whether it is at concept stage or already in build.
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