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Yacht and Boat Law

Yacht Maintenance and Refit Contract: Extra Work, Delay and Damage

The flow documenting a refit job. Intake; Quote; Additional work; Test; Delivery.
Author: Published: About 9 min read

Institutional legal review and control: Güneş & Güneş Law Firm

Published by: Güneş & Güneş Law Firm

Summary

Disputes over extra charges, delay and damage in yacht maintenance and refit work. The legal significance of work orders, price approval, sea trials and delivery records.

Disputes in yacht maintenance most often arise from the gap between the scope of the initial quote and the work carried out after dismantling. A refit is the comprehensive renewal of an existing yacht and may involve technical uncertainty. However, that uncertainty does not give the contractor the right to carry out every additional job without approval, nor does it entitle the contractor to claim free of charge all the additional work that has become genuinely necessary for the yacht owner.

A maintenance contract is assessed within the framework of the contract for work (eser sözleşmesi) provisions of the Turkish Code of Obligations (TBK), but ancillary performances such as transporting, protecting and storing the boat, and marina services, must also be taken into account. This article explains the contractual arrangement that can be applied from the start of the work through to delivery and the dispute stage.

Condition assessment at entry

When the boat enters the facility, the condition of the hull, engine, electronic systems, interior and personal belongings should be recorded. Photographs and videos should be dated; damaged, non-working or uninspectable parts should be noted in the signed record. The inventory should cover not only expensive equipment but also keys, security devices, removed parts and software access.

Fuel and water levels, the condition of the bilge, the shore power connection and the protection of the batteries are important. The contract should state who will supervise the boat while work is in progress, whether afloat or ashore, the storm and fire precautions, access authorizations and the emergency contact. Where the technical repair contract and the marina or slipway contract are concluded with different persons, the allocation of responsibility at that interface is regulated separately.

For details on this subject, see the marina berthing contract section.

The legal meaning of the quote

Fixed or lump-sum price, estimated price, and price based on time and materials must be clearly distinguished from one another. The provisions of Article 480 et seq. of the TBK produce results according to the price model accepted at the outset. Creating an impression of a firm price under the heading “estimated budget”, or continually increasing a fixed price through vague additional items, gives rise to disputes.

The quote should specify the line items for dismantling, diagnosis, installation, testing, consumables, transport, outside services, hauling, accommodation and taxes. Where it is foreseen that new defects may emerge at the end of dismantling, a separate approval model may be set up for the inspection fee and for the essential repair. This method prevents a technical condition unknown at the outset from turning into an open-ended spending authority.

For details on this subject, see the section on yacht law in Türkiye, flag, taxes and import procedures.

Approval and proof of additional work

An additional work form should explain what the new finding is and why it falls outside the original scope. Photographs or a technical report, the proposed solution, alternatives, the additional price and the effect on the delivery date should be submitted together. For work carried out without the client’s approval, the price that can be claimed is assessed according to the contract, necessity and concrete legal conditions; the fact that an invoice has been issued does not by itself prove an agreement.

E-mail or messaging records may be important as evidence. However, the authority of the person who wrote the message and the scope of the approval are also examined. Where the captain is authorized only for technical coordination, it should not be assumed that a high-value change in scope was accepted. The representation provisions of the TBK, the conduct of the parties and prior practice are assessed together. For details on this subject, see the article on the operator’s powers and duty to account under a yacht management contract.

An intervention required without delay for safety must be distinguished from an upgrade that is a commercial choice. A mandatory intervention may be needed to stop water ingress; the installation of a new entertainment system cannot be justified on the same ground. Even in an emergency intervention, the reason, the action taken and the cost should be documented as soon as possible.

Delivery time and delay

The delivery schedule should show dependencies such as the client’s choice of parts, approval after dismantling, the arrival of imported parts and the sea trials. Not every supply delay is force majeure (mücbir sebep). The contractor may need to notify foreseeable supply problems in good time and to evaluate alternatives. The event on which an extension of time will be granted, and the number of days, should be recorded in writing.

A late approval by the client may also contribute to the delay. For this reason, a work log should be kept showing not only the final delivery date but also the dates on which each decision was requested and given. Under Article 473 of the TBK and the provisions on default (temerrüt), the options of granting a further period, having the work done by another contractor, or terminating the contract are evaluated. Whichever right is chosen, its notice requirements and financial consequences should be clear.

If lost charter income or other yacht-hire expenses are claimed, the loss, causation and the duty to take reasonable measures must be proven. If commercial bookings for a boat planned for delivery in the summer season were never disclosed to the contractor, a debate on foreseeability may arise. By contrast, writing the known purpose of delivery into the contract makes proof easier.

Damage during maintenance and insurance

Improper lifting, hot work, water ingress, dust and paint contamination, electrical connections and faulty installation are different technical risks. The record should show which work was carried out by which personnel and which subcontractor. Using a subcontractor does not, in every case, remove the liability of the main contracting party towards the client.

The yacht’s own boat insurance, the shipyard’s operating liability and the repairer’s professional liability cover do not provide the same scope. The boat policy may contain notification conditions relating to the place of maintenance, hot work, sea trials, leaving the boat without a skipper or the refit period. Obtaining the necessary confirmation or endorsement from the insurer before work begins reduces disputes over coverage after damage. For details on this subject, see the article on liability and compensation claims in yacht and boat accidents.

EventRecord to keepMatter to regulate in the contract
Lifting damageLifting plan and footage of the operationEquipment, personnel and liability
Unapproved additional workInitial quote and change correspondenceApproval authority and pricing method
Parts delayOrder, supply and notification datesExtension of time and alternatives
Incomplete or defective repairRemoved parts and test reportRemedy, retesting and warranty
Obstruction of deliveryPayment records, formal notices (ihtar) and delivery requestsDebt and security dispute

Acceptance on delivery and notice of defects

The work done on delivery, the parts removed and fitted, software updates, measurements and test results should be listed. The closing of the work order and the technical acceptance may be tied to the same document, but the scope of that document must be clear. The mere removal of the boat from the facility does not show that every defect was known and accepted.

Under Articles 474–478 of the TBK, inspection, notice of defects and acceptance are important. Open defects should be recorded at delivery, and hidden defects that come to light later must be notified without delay once discovered. The statutory liability for defects is distinguished from any additional guarantee given by the contractor. The effect of the client’s incorrect use, or of a later intervention by a third party, is examined separately.

In the event of a significant failure, an independent technical inspection or preservation of evidence (delil tespiti) under Article 400 et seq. of Law No. 6100 on Civil Procedure (HMK) should be considered before the yacht is dismantled again. If urgent repair is unavoidable for the safety of the boat, detailed records should be kept before and after the work, and replaced parts should be stored in a condition suitable for examination.

For details on this subject, see the section on objecting to an expert report in civil litigation.

Debt and non-delivery of the boat

The repairer’s assertion of a right of retention (hapis hakkı) on account of its claim depends on the conditions in Article 950 et seq. of the Turkish Civil Code (TMK). The maturity of the claim, the consent under which the boat is held, and the connection with the claim are assessed. No dispute can be resolved through de facto pressure in the form of “I will not hand over the boat”. On the other hand, the client also cannot ignore a payment debt that has actually arisen and fallen due.

In a dispute, payment of the undisputed amount, security for the disputed item, or appropriate interim legal protection may be considered. The character of maintenance and repair claims under Article 1352 of the Turkish Commercial Code (TTK) should be assessed together with the connection between the boat and the debtor for precautionary attachment. A right of retention and a court’s precautionary attachment order are not the same institution.

Conclusion

Effective protection in a maintenance and refit contract arises from the initial scope and from a separate record of each change. When the condition at entry, the authorized approvals, the effect on price and time, and the delivery tests are kept together, the responsibilities of the parties become clearer. Not destroying evidence while a technical problem is being solved is also the foundation of a legal solution. For the contract for commissioning a new yacht, see the yacht construction contract; for the framework of permits and alterations, see the article on yacht construction, refit contracts and maintenance and repair processes.

Frequently Asked Questions

If the contractor has issued an additional invoice, must the price always be paid?

An invoice alone does not show that the work was approved or that a justified amount arose outside the contract. The evidence on scope and approval is examined.

Is a late delivery of an imported part always force majeure?

No. Foreseeability, the precautions taken and the allocation of risk in the contract are important.

Does boat insurance continue automatically during a refit?

The policy scope and the notification conditions should be checked. An endorsement may be required for major alterations or for different higher-risk work.

Does signing for delivery after repair end all claims?

The content of the document, the distinction between known and latent defects, and the statutory provisions are decisive.

Is it necessary to keep the old parts?

In a claim of defect or incorrect intervention, the parts may be important evidence. It is advisable to keep them while preserving their identity and chain of custody.

Can the contractor hold the boat because of a debt?

The specific conditions of the right of retention are examined. The existence of a claim alone does not justify every form of withholding.

Sources and legal bases

  1. Law No. 6098, Turkish Code of Obligations. General terms and conditions, exclusion of liability, sale, earnest money (bağlanma parası), lease and contract for work. Link
  2. Law No. 6102, Turkish Commercial Code. Articles 931, 935, 940, 1001, 1320, 1352–1376 and 1420–1446; different pages depending on the article. Link
  3. Law No. 6502 on Consumer Protection. Consumer transaction, defects, unfair terms and jurisdiction. Link
  4. Law No. 6100 on Civil Procedure. Subject-matter jurisdiction, evidence and preservation of evidence. Link
  5. Insurance Association of Türkiye (Türkiye Sigorta Birliği) — General Conditions of the Boat Policy (Tekne Poliçesi Genel Şartları). General conditions, special clauses and the relationship with the policy. Link

AUTHOR

Av. Umut Güneş

Güneş & Güneş Law Firm

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