New Build Yacht Guide

A new build gives control over design, layout and specification and a builder's warranty. In exchange, the owner waits years, makes stage payments before delivery and carries change and construction risk.

An existing yacht can be surveyed, trialled and used straight away. The trade-off is accepting someone else's design and the yacht's history.

A full-custom yacht is designed from a clean sheet around the owner's brief. It offers the most control and the most decisions, engineering and risk.

A semi-custom yacht starts from an existing hull and engineering platform, with customisation of layout, interior and options within the platform's limits.

Series yachts are built to a defined model with a set option list. Personalisation is limited, but the design is proven and timelines tend to be shorter.

A build slot is a reserved construction window at a yard. A delivery position is a contract for a yacht already in the build programme, sometimes assigned from another buyer. Check exactly what is fixed, what can still change and how the contract is assigned.

A part-built yacht is a project already under construction, sometimes stalled. Review the quality of existing work, class records, the contract history and the yard's position before committing.

The brief sets out intended use, guest and crew numbers, cruising areas, style, priorities and budget. A clear brief keeps designers, naval architects and yards aligned.

For full custom, the designer is usually appointed early to develop the concept before yard selection. For semi-custom, design input often focuses on interior and exterior styling.

The naval architect is responsible for hull form, stability, structure and performance. They are typically engaged early on custom projects so the concept is technically feasible.

Shortlist yards on relevant experience, capacity in the required window, financial standing, quality systems, references and approach to change — not on rankings or marketing claims.

Approaching one yard can be faster and suit an owner set on a particular builder. A tender on a common specification allows like-for-like comparison of price, schedule and terms.

The specification describes systems, materials, equipment and standards. Together with the general arrangement, it defines what the yard is contractually obliged to build.

The general arrangement (GA) shows the layout of decks, spaces and main equipment. Changes after signing usually become change orders.

The contract covers price basis, payment schedule, specification, delivery date, delay provisions, change orders, acceptance, warranty, title, guarantees and dispute resolution. It should be negotiated with a specialist shipbuilding lawyer.

Payments are typically made at milestones during construction rather than on delivery. The schedule and the milestones that trigger payment are commercial points to negotiate.

A refund guarantee, usually from a bank, can return stage payments if the yard fails to deliver. They are not always available, and their terms and issuer matter.

Escrow arrangements, title to the hull and materials, and protection against yard creditors are further tools to protect stage payments. Their availability depends on the yard and jurisdiction.

Change orders adjust specification, price or time after signing. Agree a written procedure and pricing basis, and expect late changes to cost more.

Contracts often provide for permissible delays, liquidated damages and price adjustment for changes or specific cost movements. Understand which risks sit with whom.

Class approves plans and surveys construction; flag sets statutory requirements. Decide early whether the yacht will be private or commercial, as it affects design.

An owner's supervision team inspects work, tracks progress and protects the owner's interests throughout the build. Agree inspection points with the yard.

Builder's risk insurance is usually arranged by the yard; the owner should confirm cover, insured value and their interest in it.

Sea trials prove performance and systems against the contract. Acceptance follows agreed tests and a punch list of remaining items.

At delivery, title passes, final payment is made and documentation is handed over. Registration and insurance must be ready in time.

The builder's warranty covers defects for a defined period after delivery. Plan how warranty claims are recorded and handled with the crew.

VAT and registration should be planned before delivery with advisers, as they affect where and how the yacht is delivered.

Some owners finance construction or delivery. Lenders will have requirements on the contract, guarantees and insurance.

Highly personal custom yachts can be harder to resell. Considering broad appeal in key decisions can protect value.

Running costs, crew and management begin at delivery. Plan them in parallel with the build.

No written brief; signing before the specification is detailed; no payment protection; no owner's representative; vague change-order terms; unclear yard financial position.