菜单
CONVERSIONCON: An industry first

News / / London

BIMCO has recently published CONVERSIONCON, a new standard form contract for conversion projects. The authors of this article were honoured to be part of the drafting team tasked with developing and producing the first industry standard form contract for conversion projects.

CONVERSIONCON has been drafted with flexibility in mind, so that it can be used and adapted for projects of varying scale and nature. 

Although CONVERSIONCON, in part, draws on inspiration from NEWBUILDCON and REPAIRCON, it has been drafted to specifically address the requirements of a conversion project where different issues can arise compared to a newbuilding or repair project.

In particular, CONVERSIONCON includes provisions which address:

  • delays in delivering the vessel to the shipyard for the work to be undertaken (Clause 3);
  • title to the vessel, materials and equipment during the project (Clause 3);
  • the design responsibility (Clause 15);
  • the ability for the owners to carry out work on the vessel during the project (Clause 18);
  • liability for the vessel (Clause 35); and
  • the insurance obligations of both parties (Clause 37).

Given the wide-ranging nature of conversion projects, CONVERSIONCON also provides a flexible framework (most notably through the use of BIMCO’s box layout in Part I and the proposed annexes) for the parties to tailor the contract to reflect their specific needs. For example, the parties are prompted to:

  • include details relating to the design responsibility, subcontractors, approval process and trials in the specification (which is to be included at Annex A);
  • confirm which party is responsible for obtaining the necessary approvals from Class and the regulatory authorities (Box 6);
  • set out details in Annex F about the contractors’ liability for liquidated damages in respect of deficiencies in technical requirements;
  • input the insurance requirements for the project in Annex H; and
  • choose which guarantees the parties will provide (in Box 19), with templates for guarantees included in Annexes D and E.

Although conversion projects have been commonplace across the industry for many years, contracts are often based on bespoke contracts or contracts that were originally designed for other purposes but have subsequently been adapted. It is hoped that CONVERSIONCON will provide parties with a well-balanced basis to negotiate conversion projects going forward and to allow the parties the ability to tailor the contract to their specific needs.

Should you have any queries, or require any advice, in relation to the use of CONVERSIONCON (or, indeed, conversion contracts based on other forms), please contact Chris Kidd or David Choy, or your regular Ince contact.

A copy of CONVERSIONCON can be found on BIMCO’s website at:https://www.bimco.org/Contracts-and-clauses/BIMCO-Contracts/CONVERSIONCON#

Chris Kidd

Chris Kidd Head of Shipbuilding and Offshore Construction, Joint Head of Energy & Infrastructure, Partner

David Choy

David Choy Managing Associate

Related sectors:

相关新闻和市场洞悉

新闻 / Thélem’s the breaks: recovering English solicitors’ fees in the Scottish Courts

10-08-2022 / 航运

Kirkwood v. Thélem Assurances [2022] CSOH 53 A recent Outer House Opinion has provided welcome clarity on the recovery of English solicitors’ fees in the Scottish Courts.

Thélem’s the breaks: recovering English solicitors’ fees in the Scottish Courts

新闻 / Court finds extra-contractual counterclaims fell within scope of arbitration agreement

02-08-2022 / 航运

Sea Master Special Maritime Enterprise & another v. Arab Bank (Switzerland) Ltd (Sea Master) [2022] EWHC 1953 (Comm) This bill of lading dispute raised issues as to whether the Bank financing the purchase of a cargo, and the holder of a switch bill of lading for the cargo, was a party to the arbitration agreement incorporated into the switch bill and, if so, whether certain counterclaims brought by the Owners came within the scope of that arbitration agreement. The Court agreed with the tribunal’s findings that, once the Court had decided that the Bank was a party to the arbitration agreement, then the counterclaims for reasonable remuneration and quantum meruit came within the ambit of the arbitration agreement, being claims “arising out of or in connection” with the bill of lading contract.

Court finds extra-contractual counterclaims fell within scope of arbitration agreement

新闻 / Party offered reasonably satisfactory security following collision obliged to accept it

20-07-2022 / 航运

MV Pacific Pearl Co Ltd v. Osios David Shipping Inc (Panamax Alexander) [2022] EWCA Civ 798 The Court of Appeal has confirmed that a party to ASG 2, the standard form Collision Jurisdiction Agreement, is obliged to accept reasonable security once it is offered and cannot choose to refuse that security and seek alternative or better security by arresting a ship. In such circumstances, there is no right to an arrest or any justification for it.

Party offered reasonably satisfactory security following collision obliged to accept it

新闻 / Rosita Lau, MH calls for China businesses to opt for Hong Kong arbitration in their contracts

15-07-2022 / 航运

In an interview published this morning (14 July) in The Hong Kong Maritime Hub, Ince Partner Rosita Lau, MH calls for Chinese businesses to opt for Hong Kong arbitration in their contracts, initiative that requires attention of officials from the highest level.

Rosita Lau, MH calls for China businesses to opt for Hong Kong arbitration in their contracts

新闻 / Court finds Covid-19 restrictions did not constitute force majeure under MOA

13-07-2022 / 航运

NKD Maritime Limited v. Bart Maritime (No 2) Inc (Shagang Giant) [2022] EWHC 1615 (Comm) The Court has construed a force majeure clause and considered whether Buyers validly terminated a contract for the sale of a vessel on the basis that Covid-19 lockdown restrictions prevented Sellers from transferring title in the Vessel. 

Court finds Covid-19 restrictions did not constitute force majeure under MOA

新闻 / Shipping gets smart

20-06-2022 / 航运

On 25 November 2021, the UK Law Commission published its Advice to the UK Government on how English law currently applies to smart legal contracts. Subsequently, on 16 March 2022, the Law Commission published its report on electronic trade documents, together with draft legislation that would implement its recommendations to allow for the legal recognition of trade documents such as bills of lading and bills of exchange in electronic form.

Shipping gets smart