Purchasing

Here at Ledgard Bridge we appreciate the concerns many customers arbour over the recent high profile failures of a number of boat manufacturers. In mid 2006 realising this we took a long hard look at the way the industry normally enters into a contract and takes payments for a new boat. It became blatantly obvious that it was in need of a serious overhaul. The general way that these contracts are conducted is via a deposit and a number of staged payments. (Basically the customer funds the build as it progresses)

The generally recognised best method of doing this is to use the Standard BMF contract for the purchase of a new boat, the contractual detail of which is excellent and very fairly represents both customer and builder.

Unfortunately, the BMF contract is now getting on a bit and with the greatly increased value of modern boats the payment schedule used was somewhat unrealistic being based on:-

1. A non defined deposit often up to 25% of the total build price at the time of signature.
    
2. Upon the hull being available at the Builders' premises fully moulded, planked, plated or formed and confirmed in writing to the Purchaser by the Builders.
    
3. Upon substantial completion of the fitting of the interior joinery work or installation of the engine or stepping of the mast whichever is the earlier.
    
4. Upon completion of the Acceptance Trial and the signing of the Satisfaction Notice by the Purchaser or upon deemed acceptance and completion of the Builders' Certification as provided in Clauses 5.5 and 5.6.

You can see from this the apparent short comings, firstly at stage 1 a very large payment is often required to start the whole process by way of the deposit with little or no security at that time on your investment whatsoever.
Stages 2-4 also have a flaw in that they are defined largely by the builder and his say that the money you have paid to that stage reflects the value of your asset. (The boats state of build at the time you make the payment.)

Taking this into account while maintaining the standard BMF contracts legal content the Ledgard Bridge contract now contains a new payment schedule based on the following :-

1. A £2,000.00 largely refundable deposit to secure a build slot and a theoretical build in principle prior to signing the modified Ledgard Bridge BMF contract.
    (This deposit is largely refundable meaning that up to 8 weeks prior to the commencement date of the build slot it will be refunded less a £160.00 administration fee if the customer does not wish to go-ahead, but at any point after that we will retain the deposit because the boat will now need to be built on spec without a potential purchaser. The deposit not only secures the build slot but the build in principle meaning that even though fine detail of the boat may not be finalised the price at build will be based on the current Ledgard Bridge price list at the time of deposit not on any increased price list at the time of the build slot commencing.)
    
2. At approximately 8 weeks prior to commencement the Ledgard Bridge BMF contract will be signed, the final price being based on the price list in force at the time of the deposit being paid.
   (This gives plenty of time to finalise the details of the boat while being safe in the knowledge that the build slot and price are secured.)
    
3. Stage payment 1. Upon steel being available at the builders.
   (This payment including the deposit already paid covers the value of the steel, this then becomes the property of the Purchaser upon payment.)
    
4. Stage payment 2. Upon the hull being available at the Builders' premises fully moulded, planked, plated or formed and confirmed in writing to the Purchaser by the Builders.
   (The total payments made now amount to approximately the cost of a bare hull on our price list and the hull is now the property of the purchaser.)
    
5. Stage payment 3. Upon arrival and fitting of the engine.
   (The total payments made now amount to approximately the cost of a sail away boat on our price list and the engine and further materials and fittings installed are now the property of the purchaser.)
    
6. Stage payment 4. Upon completion of line out and painting of hull.
   (The total payments made now amount to approximately the cost of a lined sail away boat on our price list and further materials and fittings are now the property of the purchaser.)
    
7. Stage payment 5. Upon substantial completion of the fit out and substantial installation of electrical and heating systems.
   (The total payments made now amount to approximately the value of the boat to it’s present point of completion and further materials and fittings are now the property of the purchaser.)
    
8. Stage payment 6. Upon completion of the vessel and the signing of the Satisfaction Notice by the Purchaser or upon deemed acceptance and completion of the Builders' Certification.
   (The boat is now handed over and the boat is now the property of its new owner.)
    

 This payment schedule we feel is a far safer system not only protecting the customer payments but effectively helping us to spread our cash flow too.