Clients ask why survey? There is no one simple answer to this, however there are several drivers for the requirement to engage a professional surveyor. These being:
Increasingly stringent insurance requirements
There are increasingly stringent requirements for vessel insurance, with many insurers requesting either a survey or condition report as a condition of insurance.
Marina berthing and boatyard compliance requirements
Most marinas require comprehensive insurance to be in place prior to allowing berthing or the use of boatyard services.
As is industry practice in the EU, US and Australia, marinas are tending towards increased compliance, which can include berthing prerequisites such as evidence of Electrical Warrant of Fitness, LPG Safety Certification, smoke and CO detectors, functional bilges, sealed holding tanks, serviceable mooring lines and fenders.
This is especially relevant for the safety of live-a-board vessels, in high wind and storm prone areas such as Wellington.
Vessel provenance (history)
Owners are becoming far more aware of the benefits of having provenance with the vessel. This significantly benefits the owner when it comes to selling the vessel. An owner’s survey can capture the condition of the vessel, including any work, repairs or inspections undertaken. These surveys can be periodically updated. Marsden Marine Ships Surveyors suggest that leisure vessels should be surveyed every 5 years.
Surveying industry development and professionalisation
Insurers are moving away from a competency-based surveying model. Previously a ‘competent’ person such as a boat builder could assess a vessel to the satisfaction of the underwriter. The Ships Surveying industry is continuing to be professionalised. Many insurers now request evidence of suitable training, recognised qualifications, professional body membership and ongoing CPD.
Increased focus on due diligence
Clients are becoming far more aware of the requirement to undertake due diligence as part of Sale and Purchase activities. This is not only to make sure that the vessel represents how it is described but also to satisfy third party requirements.
Legislation and consumer protection
If buying through a brokerage, the vessel can be subject to both the Consumer Guarantees Act and the Fair Trading Act. A survey provides a baseline of the actual state of the vessel prior to a Sale and Purchase.