BIMCO publishes new standalone Refund Guarantee for Shipbuilding Contracts
BIMCO’s Documentary Committee has adopted a clearly worded standalone refund guarantee that will assist parties in their shipbuilding projects, according to BIMCO's release.
Refund guarantees are complex legal documents and must meet the requirements of the issuing banks. BIMCO, in close co-operation with legal and commercial experts, banks and shipyards, has developed a standard refund guarantee which can be used with all widely used standard forms of shipbuilding contracts such as NEWBUILDCON, the SAJ form and Chinese forms.
The objective has been to create an instrument that provides much needed legal certainty and protects the interests of all parties involved in a newbuilding project. The Refund Guarantee has been written as clearly and concisely as possible and it is hoped that this approach will appeal to the market.
The other members of the drafting committee were David Lan (ICBC), Insu Chung (Hyundai Heavy Industries), Professor Min Han (Ewha Womans University), Klaus Vilstrup (Dampskibsselskabet NORDEN A/S), Yu Yang (Innomarine) Richard Lord, QC (Brick Court Chambers), Chris Kidd (Ince Gordon Dadds LLP) and Sean Gibbons (Stephenson Harwood LLP).
