NEWBUILDING

GUIDANCE
1. Pre-Contract Work
1.1 Statement of Requirement (SOR)
Newbuilding specification required to be made based on the Client/Charterer/Operator
Statement of Requirement. Therefore they need to determine as detail as possible in
order for us to make the right specification. For example as follows:-
- The function of the vessel
- Loading/Unloading process
- Berth/Unberth of the vessel
- Shore support (fuel bunkering facility, fresh water, sewage disposal, oily
water disposal, provision, crane facility, garbage disposal facility).
- Gangway facility
- Transferring of passenger at sea or not.
- Transferring of cargo at sea.
- Normal operating draft or limitation of draft
- Extreme weather or weather condition
- Shallow water.
- Ship handling and maneuver, limitation of area of turn

In short determine the service condition of the vessel which are:

- Functional Requirement
- Environmental Condition.

The SOR will be the key of how is the vessel be designed and the final achievement
to what the vessel will be.

1.2 Preliminary New Building Specification

If the company does not of have they own design department, we need to engage or
assign a “Naval Architect or Design Office” to work together in order to prepare the
Preliminary Specification and Drawings for the Tender Purpose.

Document to be prepared prior to tender purpose:

1. Preliminary Technical Specification
2. Draft Contract
3. Drawings :
- General Arrangement
- Midship Section
- Structural Arrangement
- Tank Plan
- Shafting Arrangement
- Electrical Single Line Diagram.

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1.3 Review Preliminary New Building Specification Prior to Tender
Preliminary Newbuilding technical specification required to be reviewed before to send for
tendering to yard/builder in order to give as accurate/detail as possible. This important in
order to give the yard/builder to give more accurate estimation rather than PFA (plug from
the air figure).

Following items are normally required to be reviewed, but not limited to:

• To ensure the service condition and environment condition is according

of SOR.
• To ensure what classification society/national authority is going to be
used in this contract. (every national/flag authority will determined
differently).
• To ensure the vessel notation is in order
• To include all other rules, requirement and standard to be used in this
contract.
• Understand the vessel operation requirement, if possible to go on site in
order to understand, the vessel movement, loading/unloading,
berthing/berthing, vessel operation at sea, transferring of equipment, etc.
• To gain improvement or repeat design to be included from the previous
vessel/sister ship or similar ship (if have).
• To ensure what certificates to be produced.
• To ensure all the final achievement has included in the specification,
such as structural or welding standard, noise and vibration standard,
piping standard, electrical standard.
• To ensure the inspection and survey general method is included.
• Review Major machinery Equipment and Material to be used such as:
o Main Engine
o Genset
o Winch
o Paint Maker, etc
• To determine OFE (owner furnish Equipment)
• Specify the requirement of equipment (dock) trial and sea trial. For
example : SNAME T&R Bulletin 3-39, Guide For Shop and Installation
Test, or SNAME T&R Bulletin 3-47, Guide for Sea Trials
• Spares to be included in the specification to be determined properly.
• Etc.

Once the above has been reviewed then the Preliminary Technical specification and
drawings are ready for tendering to the yard/builder.

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1.4 Preliminary Shipbuilder Audit

Once the preliminary technical specification and drawings has been reviewed, then
this package are ready to send to yard for asking their best price and delivery time.
This bidding every company will have different style of the bidding process, but
once the shortlisted shipbuilder has been nominated and required to carry out final
negotiation, price, payment terms, contract details, etc, the shipbuilders required to
be audited in order to measure the yard capability and the fact of the shipbuilding
project management and their process whether a proven record of skill and
experience, and all the necessary facilities in place, for the construction and fitting
out of new vessels.

The audit will be assessed throughout the project department, engineering

department, purchasing department, QA/QC department and Safety department
and carry out evaluation as follows :

Project ;
1. Project Execution
2. Project Schedule and revision process
3. Building Sequence
4. Progress tracking
5. Change order
6. Project Organisation.

Engineering :
1. Drawing distribution and update
2. Managing Technical query
3. Managing detail production drawings
4. Managing class recommendations
5. Managing As-Build drawings
6. Managing Equipment manuals
7. Machinery and equipment list
8. Equipment and material certification.
9. Electrical and Pipe production standard
10. Hull and outfit production standard.

Purchasing and Warehousing

1. Supplier and subcontractor Management
2. Managing Equipment delivery time
3. Equipment and material Storage.

QA/QC
1. Inspection Test Plan and NDT plan

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 2. Mill Certification and plate identification
3. Electrode handling
4. Pipe, Cable and equipment identitfication
5. Welding Procedure Hull & Piping
6. Welding Qualification
7. Inspection procedure
8. Commissioning Procedure
9. Sea Trial and Inclining test procedure
10. Inspection colour code
11. Managing defects and re-inspection.

Safety
1. Yard safety certification
2. Coordination and meetings
3. Dedicated safety structure
4. Risk assessment
5. Safety statistic
6. Safety initiatives
7. Safety Awards.

Flexibility
1. Hierarchy and decision making
2. Ability to adjust quickly to customer requirements.

Summary of Audit required to be produced in order to assist the company decision maker
to chose which yard will be going to be awarded.

During the tendering process it may some variations between the standard and intended
specifications will be noted and decisions taken as to any modifications are required to
ensure that the vessel is fully capable of fulfilling its intended role due.

Once the agreed specifications and contract has been signed by both party then the
contracts are ready for execution.

2. GENERAL PROJECT MANAGEMENT

2.1 Setting up of Site Team
Upon finalization of the technical specifications and ship building contract with the
selected shipyard, The Company will appoint a Site Superintendent as the resident
owner’s representative at the shipyard. He will be the principal point of contact with the
shipyard, and all correspondences with the shipyard and their sub-suppliers is through the
Site Superintendent

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The Site Superintendent shall set up the site office in the yard, and will be responsible for
its daily operation, and the supervision of the vessels’ construction in accordance to
specifications and owner’s standard. Where any clarifications to the specifications are
required, the Site Superintendent is to consult Company.

The composition of the site team will be decided by the Company in cooperation with the
Site Superintendent, and may include specialists in the various trades (structural,
machinery, electrical, paint) as appropriate.

Site Superintendent is to ensure that a copy of the signed Shipbuilding Specifications and
Shipbuilding Contract is available at the site office. Copies of classification Rules, IMO and
flag authorities regulations and international shipbuilding standards to be made available
as necessary.

2.2 Project Kick-off Meeting

Before the start of steel-cutting, a project kick-off meeting shall be organized at the
shipyard, with main stakeholders in attendance, i.e. shipyard, owner, classification society,
and possibly flag authority.

The purpose of the meeting is to introduce the key personnel from the various parties
involved in the project, and for the shipyard to officially present their construction
schedule.

Expectations from each party shall also be discussed in the meeting. Minutes of meeting
shall be taken, and a copy filed in the site office.
Agenda of the project Kick Off Meeting:
- Introduction of both project organization
- Project Miles Stone
- Project Building Sequence
- Place of Building
- ITP
- Drawings and equipment review and distribution process.
- QA/QC.
- Standard expectation.
- Class Highlighted.

2.3 Weekly Meeting

Upon official commencement of the construction, usually means steel cutting, weekly
meetings shall be held between shipyard and the site office to follow up on issues relating
to the construction of the vessels. Representative from Class should also be present if
necessary.

The agenda of the meetings may include, but not limited, to the following:

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 - Progress of action items arising from previous MOM
- Progress of construction
- Engineering issues
- Equipment procurement status
- Drawings status
- Defects
- Cooperation between owner, shipyard and class
- Safety

Minutes of meetings shall be taken, and a copy (signed by owner, shipyard and class)
filed in the site office.

2.4 Weekly Report or Monthly Report.

The Site Manager shall issue a weekly report at the end of each week, to their Project
Director (who ever party will be the responsible for this project on the Company site)

Essential items to include in the weekly report include:

- Construction progress, including percentage completion of each main system (hull,

machinery, electrical, painting)
- Major milestones, and estimation by site office if differ from shipyard’s schedule
- Equipment procurement and delivery status
- List of essential drawings indicating their latest revision number and date
- Relevant pictures showing the state of progress
- Safety issue.

Refer to Appendix A for a sample of the standard report.

2.5 Plan Approval / Equipment Approval

All relevant project drawings, shipyard standards and ITP (Inspection and Test Plan) are
to be forwarded to the site team for comments and approval.

The Site Superintendent is to ensure that the latest available drawings revision is available
in the site office, and the site team shall perform plan approval of the drawings as per
timeline stated in the contract (normally within 2 weeks of receipt). All comments are to be
recorded in a comment sheet and handed over to the shipyard or designer, as per
agreement. A sample comment sheet is available in Appendix B.

All class-approved drawings must also be available in the site office.

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The site team shall also perform equipment approval in accordance to the specifications
and maker’s list. All relevant technical details and drawings to be obtained from the
shipyard.

2.6 Schedule Reporting

The Site Superintendent is to obtain the most updated construction schedule from the
shipyard whenever available. The Site Superintendent is to ensure that the following major
project milestones are reported to Company

- Steel Cutting
- Keel Laying
- Launching
- Delivery

Signed stage certificate by class of each milestone shall also be forwarded to Group
Newbuilding. A copy to be filed in site office as well.

The Site Manager is responsible to monitor the schedule provided by the shipyard closely
for timeliness, and when, in his assessment, there are risks in any of the major and
important milestones being delayed, he shall inform the Project Director.

Similarly for delivery of machinery, the Site Manager shall keep himself updated about
delivery schedule for machinery on order. He shall inform Group Newbuilding when there
are any risk that any delayed delivery of machinery will have a adverse impact to the
construction schedule of the vessel.

2.7 Modifications to Specifications

Where any changes to the specifications are required, they shall be approved by the Site
Manager, or if he deemed necessary, referred to Group Newbuilding for approval. In
general, in the daily work, the Site Manager is authorized to agree on minor cost-neutral
details directly with the shipyard. All changes to the specifications must be properly
recorded and filed. Sample form in Appendix C.

2.8 Variation Orders

Where the modifications involve any cost impact, a Variation Order shall be issued by the
shipyard. The details of the variation order shall be discussed and agreed upon between
the Site Manager and shipyard. The Site Manager will forward the agreed scope of work,
price and his recommendations to Project Director for final approval.

To facilitate the approval of the VOs, the memo to Group Newbuilding shall include, but
not limited to the following:

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 - Brief background
- Requestor of variation
- Reasons for variation (e.g. safety, operational, charter’s request etc)
- TCO analysis
- Influence on delivery date
- Influence on lightship weight

All VOs are to be filed in site office.

2.9 Test Protocols

All shipyard test forms and protocol shall be forwarded and be approved by the Site
Manager before conducting the tests. Upon completion of all tests and trials, the recorded
test forms are to be signed by both representatives of shipyard and site team, and a copy
of the form made available to the site office.

All accepted test reports are to be properly filed in accordance to systems and a full copy
to be handed over to the vessel crew before delivery. The test reports will also include all
the FAT reports that are conducted at sub-suppliers’ premises. This is so that the vessel
will then always have the reference values during the newbuilding stage.

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3. Site Supervision
In their daily work, the site team will follow within the normal working hours prevailing for
the office workers in the shipyard. Tests and important works taking place outside the
shipyard’s normal working hours shall be attended to, to all extent possible.

In addition to attending daily inspections scheduled by the shipyard, the site team is to
carry out patrols (unscheduled inspections) to confirm if shipyard maintain good practices
and workmanship at all times.

The site team are to familiarise themselves in depth with the technical specifications of
each project. The specifications including maker’s list must be referred to in their daily
supervision work.

The site team are to familiarise themselves with all necessary rules and regulations. It is
the intention that these shall be referred to when in doubt.

The site team are to also familiarise themselves with the shipyard’s standard practices,
and ensure that the ITP (Inspection and Test Plan) is followed.

The site team shall note that acceptable quality shall be based on workmanship
conforming to high marine standard, as stated in the shipbuilding specifications. All
procedures from classification societies or recognized bodies shall be followed.

3.1 Safety
As Svitzer’s official representatives at the shipyard, the site team is expected to cooperate
with the shipyard to the fullest extent possible in ensuring high standards where Health,
Safety and Environment (HSE) issues are concerned.

In addition, internal SVITZER safety procedures are to be strictly observed. PPE are to be
made available and worn at all times when in any production facilities in the shipyard and
onboard the vessel. The site teams have the right to demand safe access and working
conditions from the shipyard, and shall also have the right to suspend inspection if the
required conditions are not provided.

The site team is to ensure good housekeeping is maintained onboard the vessel at all
time.

The safety policies and instructions can be obtained from the Group HSE Manual, and the
safety policy poster is to be displayed prominently in the site office.

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3.2 Non-Compliance Report
The site team is to ensure that the vessels are built in accordance to the specifications.
Any major defects or deviations from the specifications should be duly recorded as a Non-
Compliance Report (NCR) and forwarded to the shipyard without delay. The Site Manager
is to ensure that the corrective actions are agreed with and perform by the shipyard, and
inspected and accepted by a member of the site team.

After acceptance of corrective actions, the NCR to be signed by both site team and
shipyard, and filed in the site office. The NCR is in Appendix D.

3.3 Welding
The Welding Procedures Specifications (WPS) and all welders and welding operators
employed in the construction of the vessel are to be properly qualified and approved by
classification society or to a recognized national or international standard. Welding
operations are to be carried out under proper supervision. Welding qualities and storage
of weld materials in accordance to Class requirement.

The WPS needs to be approved by the site team as well, and a copy to be made available
in the areas where welding is carried out at the workshop, slipway, dock etc.

Spots checks on welder’s qualifications and welding procedures to be conducted

randomly in close cooperation with Class.

IACS document “No. 47 Shipbuilding and Repair Quality Standard” may be referred to for
acceptable standard.

3.4 Piping
Site team must ensure that the materials specified in the specifications and approved
drawings are the materials actually used in the respective areas. It must also be checked
that they are fabricated in an acceptable manner and according to shipyard’s detailed
drawings.

The pipe routing are to be arranged in the most effective manner, and that equipment
such as pumps, heat exchangers etc can be accessed for maintenance with none or
minimum removal of the connected pipes.

Piping must always be kept a proper distance away from electrical switchboards and
never pass over these without necessary safety precautions, such as extra screening.

Pipes must never be routed through tanks without prior approval from the site team. No
connections joints of pipes above engines, hot spots or electrical panels.

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3.5 Electrical Cabling
The site team is to ensure that all electrical cables are class-approved.

All penetrations in engine room and accommodation are to be closed by moulding. Before
moulding takes place, it must be ensured that there is minimum 8mm air gap between the
individual cables. Extra pipes with threaded blind plugs are also to be installed.

The site team is also to ensure that cables are separated where applicable, i.e. safe
distance between power cables, alarm/control and IT cables. The number of cables routed
above engines shall be kept to minimum.

3.6. Storage of Equipment

If any equipment need to be stored before installation onboard, the site team is to ensure
that they are stored in a safe location, and protected from the weather, such as in a
warehouse or workshop. If this is not possible and they need to be stored outdoors, then
as a minimum they must be protected from dust and wet element by means of tarpaulins
covers.

For equipment that are already installed onboard and where work is still ongoing in the
vessel, especially hotwork, the site team is to ensure that sensitive and important
equipment such as main engine, generators, switchboards and electronic equipment are
properly covered and protected, with fire-resistant cloth, for example.

3.7 Factory Acceptance Test (FAT)

FAT tests shall be attended as far as practically possible, especially major key equipment,
such main engine, genset, MSB, etc.

For the Winch :

FAT tests of winches shall include function test of the quick release mechanism under
maximum pull.

3.8 Installation of Machinery

During installation of machinery, the site team is to ensure that they are installed in a
suitable distance from bulkheads, tanks and similar. This is to ensure that adequate space
is available for maintenance, repair and safe passage.

Necessary lifting eyes or beams with trolley hoists shall be installed above machinery that
require lifting for maintenance or dismantling.

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Necessary platforms, gratings and ladders for maintenance and repairs of the machinery
shall also be provided.

All instrumentation shall be placed such that making them easily readable and all valves
can be operated from flooring either directly or by means of extensions.

3.9 Flushing of Pipings

The following systems, as a minimum, are to be flushed:

a) Lubrication oil system

b) Fuel oil system
c) Hydraulic machinery systems

The shipyard is to submit a flushing procedure to the site team for approval before
commencement of any flushing.

It is important that the site team is present during the connection of piping by the shipyard
in preparation of flushing to ensure that it is done correctly. Uniform pipe dimensions shall
be connected as far as possible to avoid excessive pressure losses, and “dead” areas
must be present.

Progressive introduction of equipment into the system as the flushing progresses to be

practiced. The pipings must not be connected to the machinery during the initial stage,
filters and coolers to be introduced during the second stage, and the main machinery
introduced as the final stage of flushing.

Flushing of piping is to be done using the approved system oil only (compatible base oil
for the first stage, and system oil for the final stage of flushing), and the flushing oil is to be
circulated with external pumps through filters.

The cleanliness of the oil shall be verified via acceptance of the condition of the filters, and
confirmed by particle counter. The results are to be attached to the flushing report.

3.10 Testing and Dock Trials

The site team is to attend the installation and testing of all machinery and equipment.
Before commencing any testing, the site team to ensure that all test procedures and
protocols have been approved.

Safety devices must be tested before starting of machinery. The site team shall ensure
that no machinery are to be operated continuously and without constant monitoring before
all safety devices are tested and found satisfactorily in attendance of the site team and
class representatives.

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All machinery and equipment are to be operated according to manufacturers’ instructions.
All recorded values such as pressures, temperatures, consumption, power draw etc shall
always be compared to the makers’ specified values.

During the official test all machinery must be operated without manual control. The test
forms must be duly filled up and all parameters taken. All required adjustments must be
completed. No further adjustments are accepted, neither during nor after the tests
completion. The tests must be retaken if there are any doubts about the results.

3.11 Official Sea Trial and Bollard Pull Trial

Bollard pull and Official Sea Trial test protocol shall be approved by the Site Manager
before commencement of the trials.

The shipyard must make up a detailed trial schedule/protocol, Test sheets for each
individual test that must be performed during the trials have to be submitted before
commencement of the trials.

During the trials, the quick release of the deck winches will need to be tested.

For bollard pull trial, the “Steerprop Bollard Pull Trial Code” and procedures from class to
be followed.

After the sea trial power should be kept on the systems to avoid earth errors.

3.12 Taking over of Fuel Oil, Lub Oil and Freshwater

After completion and acceptance of all trials, tank sounding of bunker, lub oil and
freshwater tanks are to be taken before delivery of vessel to owner. This is to be carried
out by the Chief Engineer together with a representative from the shipyard.

Thereafter the balance remaining onboard to be taken over by the owner is to be recorded
and signed by both the Chief Engineer and shipyard representative. Site team to ensure
that a copy is kept in the site office for record.

3.13 Closing of Tanks

Before the closing of tanks, the site team shall check and ensure that the tanks have been
pressure tested, painted and cleaned. Final closing of the tanks to be witnessed by the
crew and site team.

3.14 Delivery of Manuals, Drawings, Tools and Spares

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The site team shall ensure that the following are duly delivered to the vessel, and signed
over by the Master or the chief after checking.

- Instruction books and manuals for all machineries and appliances in the vessel.

- All spare parts, tools and inventory, as per specified in the specifications and
makers’ deliverables. To ensure that these parts are placed according to approved
drawings.

- All drawings, as per specified in the specifications and class/statutory

requirements

If any of the spares and tools are to be used by the shipyard for the vessel before delivery,
the site team is to ensure that the crew is aware, and properly recorded.

Yard to provide the Inventory Book, contain to all the equipment installed on board,
drawings, certificates and other documentation handing over from the yard to the vessel.

3.15 Owner Supplied Equipment

The site team is to contact the Owner at an appropriate stage during the construction to
ensure that arrangement have been made for delivery of owner supplied equipment.

Special attention to be paid for items which can only be sourced overseas, and long lead
time items.

Upon arrival of the equipment to the shipyard, the site team is to assist in loading them or
installing them onboard the vessel.

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4. Delivery
At all times, the site team shall work closely with the crew and representatives from the
receiving region to ensure a smooth taking over and delivery of the vessel.

After all trials have been completed satisfactorily, the site team shall make a thorough
round of the vessel to note outstanding defects and unfinished work. These shall be
consolidated in to a “Punch List”. The punch list must be closed the day before delivery in
order for the shipyard to finalise the items.

The Site Manager, and shipyard shall agree which applicable items of the punch list are to
be rectified by the shipyard immediately before delivery, and which are to be taken over by
the ship crew. The latter will be via a Side Letter to Protocol of Delivery listing down all
outstanding items to be rectified at the expense of shipyard.

On satisfactory completion of the vessel, the Site Manager is to ensure that the
appropriate certificates of performance and conformance, as agreed in the build
specification and contract, are transferred to the vessel, the region and head office.

A copy of all documentation relating to the delivery of the vessel is to be filed in the site
office.

By satisfactory completion, it means that the vessel has been built and accepted to the
requirements as specified by the shipbuilding specifications, class and statutory
requirements, approved drawings and marine standards. All defects and outstanding
works as agreed between the shipyard and site office have also been completed and
cleared.

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