Risk assessment and evaluation

In November 2003, the Joint Hull Construction Risks Sub-Committee, London, launched a new Shipyard Risk Assessment Clause (JH 143). The main requirement of the clause is an obligatory survey of the shipyard before construction or repairs commence. All the surveyor's recommendations are to be implemented before a certain deadline, which is also set by the surveyor. The shipyard must ensure that these recommendations continue to be observed when construction or repair work is carried out. Underwriters can also call for supplementary surveys during the period of insurance. The costs of such surveys are usually borne by the underwriters, whereas the costs incurred to implement the surveyor's recommendations are borne by the shipyard.

With the wording "It (the shipyard assessment – ed.) shall include but not be limited to", the clause provides sufficient leeway for ensuring that the scope of the assessment in detail is commensurate with the risk – and that the specific features of the risk are properly considered.

Regardless of whether underwriters apply the recommended clause JH 143 or any other comparable risk assessment clause or negotiate individual agreements, a surveyor should without fail examine the following points before the commencement of construction or repair work:

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  The shipyard's geographical risks (e.g. exposure to earthquake and windstorm) and environmental risks
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  The shipyard's general condition and general housekeeping
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  The management of sub-contractors
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  Quality management systems and internal processes
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  Contingency planning and fire protection/fire-fighting
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  Work permits (e.g. hot-work permits)
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  Shipyard facilities and equipment
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  Procedures for launching and sea trials
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  On-site security, controls on access to the shipyard and the vessel
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  Loss history

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