Avoiding Costly Mistakes: Insights from a Superyacht Lawyer

Bahar O.

Superyacht refits are a key part of the industry, but the legal side is often overlooked. With his permission, I have adapted key insights from superyacht lawyer Efe Ülken’s article, originally published online, on managing legal risks during a refit for Yachtall readers.

A successful superyacht refit is about much more than outstanding engineering and craftsmanship. It also depends on careful legal planning that helps keep the project on time, on budget and free from unnecessary disputes. From selecting the right shipyard and negotiating a well-structured contract to managing project changes, regulatory approvals and final delivery, legal decisions play a vital role at every stage.

Here are the key takeaways every yacht owner, project manager and industry professional should know before starting a superyacht refit.

A refit is not just a technical project.

It is equally a commercial and legal undertaking, where the contractual framework is often as important as the engineering work.

Legal planning should start before the project begins.

Lawyers should be involved from the shipyard selection stage, not only when disputes arise.

Choosing the right shipyard requires thorough due diligence.

Beyond price and facilities, owners should assess the shipyard's financial stability, legal entity, insurance, licences, experience, subcontractors and reputation.

A refit contract should anticipate change.

Since unexpected structural issues and owner-requested modifications are common, contracts must include clear procedures for variations, payments, responsibilities and delivery dates.

Insurance should be reviewed before work starts.

Owners should determine whether existing policies are sufficient or whether project-specific insurance is needed, with responsibilities clearly allocated.

Every variation should be documented.

Informal agreements during the project are a major source of disputes over costs, delays and scope.

Completion is not simply when the work is finished.

Clear acceptance procedures, measurable quality standards and objective inspections help avoid disagreements at delivery.

Regulatory compliance is as important as the physical work.

Refits may require approvals from the flag State, classification society and other authorities before the yacht can legally return to operation.

Time is a commercial asset.

Contracts should realistically address delays caused by supply chains, regulatory approvals, technical discoveries and owner-requested changes.

Early legal involvement reduces risk.

Lawyers should work alongside owners, project managers and technical consultants throughout the project to help prevent disputes rather than simply resolve them.

Bottom line

A successful superyacht refit is measured not only by the quality of the finished yacht but also by the strength of the legal framework supporting the project. Careful due diligence, a well-drafted contract, effective change management, regulatory compliance and early legal planning are essential to delivering a refit on time, on budget and without unnecessary legal disputes.