What to settle, before signing the new build contract.

A hold horizon of seven to ten years, on paper.

Below seven years, the new build cost premium does not amortise.

An intended use pattern specific to the yacht (size, layout, propulsion, range, operational profile).

If a brokerage hull within the search window delivers most of the use case, custom is for the residual that does not match.

Commitment to four disciplines: independent owner’s representative engaged before contract, specialist shipbuilding counsel, technical due diligence on the yard’s order book and financial condition, and willingness to push back on the yard’s first-draft contract.

New build with weak buyer-side representation produces the variation-margin overrun pattern documented in industry case studies.

Stage payment loading reviewed against the industry-typical 50 to 70 percent before delivery.

Stage payment loading above 70 percent before delivery sits outside the industry-typical range.

Refund guarantee credit quality (tier-one bank pay-on-demand vs surety wrapper).

Liquidated damages cap defined and at a level that reflects the project.

Industry typical: 1 percent of contract value per week of delay, capped at 5 to 10 percent.

Force majeure burden on the yard to prove “but for” causation, per English law.

Change order procedure with pre-agreed unit rates and third-party quote rights for variations above a defined threshold.

Without this, the yard prices variations at its discretion.

Defect notification deadlines understood, with the consequences of late notification clear.

Warranty length negotiated (12 months standard, 24 months achievable).

Cancellation thresholds (150 days post-delivery / 180 days total) understood and within the project’s tolerance.

Title position during construction clarified (yard-retained until delivery, or progressive transfer).

Dispute forum on English law plus LMAA arbitration, the practitioner default.

Owner’s representative paid only by the buyer, with no yard commission and no broker commission.

Fee structure shown in writing before contract signature.

Representative present on site weekly through the build, with quantified snag list reporting against original scope.