A Boat Building Contract is entered into once a builder takes an order to build a boat.
The agreement is needed to protect the builder, and the builder's customer. This Boat
Building Contract sets forth all the relevant terms for the completion of a boat, including
cost, payment, time-scales, delivery, and warranty. User's specific terms can be easily
inserted into this contract, in order to ensure a tailored result. This form should be used
by a boat builder or any party desiring to hire another to build a boat.
Boat Building Contract
AGREEMENT made on _______________ [Instructions: insert date], between
____________________ [Instructions: insert name of Builder] (the "Builder"), with its
principal place of business at ____________________ [Instructions: insert address], and
____________________ [Instructions: insert name of Purchaser] of ____________________
[Instructions: insert residence or location of business] ("Purchaser").
1. Description. Builder shall construct for and deliver to Purchaser a ____________________
[Instructions: insert description of boat] (“Boat”). Builder will construct the Boat in
accordance with the specifications set forth in Exhibit “A” to this agreement.
2. Responsibilities of the Builder. Builder shall be responsible for inclusion of the spar for the
mainsail, the sails, the fittings, lines, and any marine hardware, navigation equipment,
electronics and ______________ [Instructions: insert any additional responsibilities of
[Comment: user should edit the preceding language to reflect the agreement of the parties]
3. Payments. Purchaser shall pay to Builder the sum of $____________________
[Instructions: insert total amount of payment] as follows:
A. Upon the signing of this agreement, $____________________ [Instructions: insert
B. Upon completion of the hull and deck molds, $____________________ [Instructions:
C. Upon notification to Purchaser that the Boat is seaworthy, $____________________
[Instructions: insert amount]; and
D. Upon delivery to Purchaser, $____________________ [Instructions: insert amount].
Builder shall give prompt notice to Purchaser on the happening of the above events.
Purchaser shall have _____ [thirty (30)] [Comment: This number is not provided for
by law, but can be any number the user chooses] days from the date of each
respective notice to tender the appropriate payment.
4. Interest. If Purchaser has not tendered payment by the _____ [thirtieth (30th)] [Comment:
This number is not provided for by law, but can be any number the user chooses] day
after notice, Builder may charge Purchaser interest on the then due amount from the day
after the notice until such payment is received at a rate of _____% [ten (10)] [Comment:
This number is not provided for by law, but can be any number the user chooses] per
annum. Builder's right to charge such interest is not in lieu of any other right Builder may
have against Purchaser for breach of this agreement.
5. Modification to specifications. Any modification to the annexed specifications shall be
confirmed in writing signed by both parties and any additional costs shall be borne by
6. Escalator clause. In the event of any rise in the cost of labor or materials between the date of
signing of this agreement and the completion of the Boat, Builder may make an appropriate
increase in the total sum specified in paragraph 3, such increase to be payable ratably over
the then remaining installments. Builder shall furnish to Purchaser for his inspection
invoices, records, ledgers, or any other materials upon request that would substantiate a rise
in costs in the event of an increase in price under the terms of this paragraph.
7. Delivery date. Builder shall deliver the subject Boat, completed in accordance with the
annexed specification to Purchaser by the last day of _______________ [Instructions:
insert date], but in the event of completion being delayed through amendments or additions
to the specification or any cause beyond Builder's exclusive control, the above delivery date
shall be reasonably deferred.
8. Unreasonable delay. If Builder shall fail to proceed with reasonable dispatch with the
construction of the Boat without reasonable cause and it is apparent to Purchaser, that the
Boat will not be completed and delivered on the agreed date, Purchaser may:
A. Remove the Boat and any materials that have been purchased for the construction of the
Boat, provided that Purchaser's payments to Builder are equivalent to the value of the
goods taken; or
B. If the Boat is at such a stage of construction that it would be impracticable to remove it,
Purchaser may remove it by employing his own laborers and materials to progress the
construction of the Boat to such a stage so that it is practicable to remove it. Such rights
shall be without prejudice to any other right Purchaser might have against Builder for
breach of this contract.
9. Right of inspection during construction. Purchaser shall have free access to the Boat and to
the equipment and to the materials to be used in the Boat at any time during the normal
business hours of Builder's facilities. Purchaser may reject all workmanship, material, or
equipment which does not meet the specifications. Written notice of any such rejection shall
be given promptly to Builder.
10. Sea trials. Builder shall notify Purchaser, in writing, not less than _____ [thirty (30)]
[Comment: This number is not provided for by law, but can be any number the user
chooses] days before the Boat is ready for power and sea trials, specifying the date the trials
are to be held. Within seven days after receipt of the notice Purchaser shall have the right to
propose an alternate trial date, provided that if an alternate is agreed upon by both parties,
and such date is more than _____ [thirty (30)] [Comment: This number is not provided
for by law, but can be any number the user chooses] days from the original date set by
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Builder, Purchaser shall pay to Builder an additional $_____________ [Comment: This
number is not provided for by law, but can be any number the user chooses] for every
month or part of a month that the trials are delayed. Any amount that shall become payable
to Builder under the terms of this paragraph are based on a reasonable estimate of Builder's
additional costs caused by delay and are not in lieu of any other rights Builder may have
Builder or its representative shall accompany Purchaser on the sea trials which shall last
from one to eight hours.
11. Acceptance. Builder shall be deemed to have completed the construction of the Boat in
accordance with the specifications at the conclusion of the sea trials, provided that the
construction of the Boat is to the reasonable satisfaction of Purchaser. Purchaser shall affix
his signature to the memorandum attached to this agreement on that date to signify
satisfaction with the construction of the Boat.
12. Risk of loss or damage. The Boat and its propulsion systems and anything attached to the
Boat, or intended for the Boat, though not Builder's property, but in his possession, shall be
insured against loss and damage by Builder. If the Boat, engines, or equipment sustain
damage at any time before delivery to Purchaser any moneys received in respect of the
insurance shall be applied to repairing the damage or loss during working hours in a
reasonable and workmanlike manner. Purchaser shall not, on account of any damage or
repair, be entitled to reject, or make any objection to the boat until all repairs are completed.
At the time of delivery of the Boat to Purchaser all liability of Builder under this paragraph
13. Impossibility of performance and termination. Should the Boat, from any cause, become a
total loss, or Builder's yard, premises, plant, machinery, or equipment be seriously damaged
by any cause whatsoever, Builder may, in its discretion elect to refund to Purchaser the
installments, if any, received by Builder. If the installments are refunded under the terms of
this paragraph this contract will be deemed terminated in all respects as if it had been duly
completed and Purchaser shall have no further right or claim against Builder hereunder. If
any or all of the materials, engines, or equipment built into the Boat or appropriated to the
contract are seriously damaged for any reason, the delivery date shall be reasonably deferred
for such time as is necessary for Builder to reinstate the work and to purchase and obtain
delivery of materials, engines, or equipment in substitution for those damaged. Purchaser
shall have no claim against Builder for any loss or damage incurred by him as a result of any
delay under the terms of this paragraph.
14. Delay caused by builder; purchaser's elections. If for any other delay not stated above, or if it
is determined that any delay is Builder's fault, Purchaser, at his option, may elect to have
Builder refund all installments previously paid and consider the contract terminated, or
continue as if no delay had occurred, provided that any delay under the terms of this
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paragraph is more than one month after the specified delivery date.
15. Vendor's lien. The Boat and all materials, engines, and equipment attached to the Boat or
any material in Builder's possession and designated for use on the Boat shall become the
property of Purchaser upon the payment of the first installment. The Boat and all materials,
engines, and equipment in Builder's possession shall be subject to a lien in favor of Builder
as against Purchaser. In the event of any rejection of any materials or equipment by
Purchaser, title to such goods will revest in Builder.
16. Warranties of vendor. Builder warrants the Boat against defects in workmanship and in the
hull machinery and other equipment for one year after final delivery of the Boat to
Purchaser. If any of Builder's work or materials is discovered within ____ [one (1)]
[Comment: This number is not provided for by law, but can be any number the user
chooses] year of delivery, Purchaser shall give notice within ____ [ten (10)] [Comment:
This number is not provided for by law, but can be any number the user chooses] days
of such discovery. If the discovery is made while the Boat is on passage, notice will be
posted within ____ [ten (10)] [Comment: This number is not provided for by law, but
can be any number the user chooses] days of arrival at the next port of call. In such case,
Builder shall either repair and make good the defective parts or pay to Purchaser a sum not
greater than the sum Builder would have charged any other person for comparable work at
Builder shall not be liable for failure of any proprietary or other articles or appliances
installed, but Builder will use his best endeavors to obtain from the manufacturer
replacement and compensation therefore.
Builder shall not be liable for detention or other consequential damages for any defects in
either original or substituted work which shall be discovered after one year from the date of
final delivery to Purchaser. Builder shall not be responsible for any fault or failure
consequent to the design of the Boat if any such design is not Builder's work or the work of
any naval architect that Builder has appointed on its own responsibility.