BIMCO updates repair contract and plans new Asian involvement

Malcolm Latarche
Malcolm Latarche
ShipInsight

20 November 2018


Both of BIMCO’s standard ship repair contracts: REPAIRCON, which is for major work at a repair yard; and MINREPCON, which is for minor repair work that can be done by contractors when a ship is in port, have been revised and updated.

Both contracts were approved at BIMCO’s Documentary Committee in Copenhagen this month. Modifications and improvements have been made to the REPAIRCON contract, while MINREPCON has undergone a full review.

“Ship repair is a major undertaking and it’s important that both parties are fully aware of their respective part in the process. The improvements made to the structure and content of REPAIRCON will help owners and contractors more easily understand their contractual rights and liabilities,” said Søren Berg of Lauritzen who led the team that drafted the revised contracts.

REPAIRCON 2018 provides a clearly written framework agreement that should be the first choice of contract for major ship repair projects. It is the result of bringing together interested parties and consulting selected ship repairers and owners who have used the current REPAIRCON form. For minor repair and maintenance work, MINREPCON 2018 provides a much needed alternative to contractors’ own terms which can often be problematic and expose owners to unexpected liabilities and obligations.

“There is a clear need for a contract for small, ad hoc repairs such as a plumber attending to deal with blocked drains, or an electrician to sort out lighting problems. “In MINREPCON 2018 we have incorporated a clearly stated liability and limitation regime, a key feature often absent from contractors own terms and conditions,” said Berg.

Both contracts are available on BIMCO’s secure editing system for Microsoft Word, SmartCon.

BIMCO is also planning to increase the involvement of its Asian members In an unrelated move and will begin work on two gas-related contracts in early 2019, an LNG Bunker Purchase Contract and a LPG voyage charter party.

Drafting teams for the two projects are being recruited from Japan, China and Singapore with additional expertise from European based members. The project will be headed by Wei Zhuang, BIMCO’s Asia Regional Manager based in Shanghai. “I’m looking forward to bringing some of our important documentary work to the Asian region where there is solid demand for BIMCO’s contracts and clauses,” Zhuang said.

Work on the LNG Bunker Purchase Contract and the LPG Voyage Charter Party will begin in January 2019 and is expected to take approximately 18 months to complete.