Common use of BUILDER’S GUARANTEE Clause in Contracts

BUILDER’S GUARANTEE. (a) Builder shall guarantee the Vessel in accordance with the terms and conditions of this Contract (hereinafter called the “Guarantee”). If, within twenty-four (24) months, or such longer period as might be specified with respect to certain equipment or machinery in the Specifications or in this Article XIV (hereinafter called the “Guarantee Period”) after the Delivery and Acceptance of the Vessel, any defect in the Vessel (except the Buyer-furnished Equipment), its design, machinery, equipment, or other appurtenances, due to defective materials or workmanship, or failure to construct in conformity with the Plans and Specifications (all hereinafter referred to as “Guarantee Defects”), shall be discovered (other than defects solely due to normal wear and tear, negligence or improper acts of the operator or crew of said Vessel, or overloading, improper loading, stowage, and accident), the Builder shall as quickly as possible after receipt of the Buyer’s written notice thereof, correct, replace, or repair such defect at its own expense at its Shipyard; provided that if, in the Buyer’s opinion, the Vessel cannot conveniently be brought to the Shipyard, and if no other agreement can be reached between the Parties, the Builder shall pay to the Buyer the reasonable cost of making repairs or replacements in a first class shipyard, at the prices prevailing at the time such repairs or replacements are made. The ballast tank coatings shall be guaranteed for twenty-four (24) months after Delivery by the Builder and for a further thirty-six (36) months by the paint manufacturer. Builder guarantees the cargo containment system against any design or construction defect or failure for sixty (60) months after Delivery. Replacement parts or materials to be furnished to the Buyer by Builder for making of repairs under this Guarantee which are performed other than at the Shipyard or in such other facility of the Builder shall be transported to the place of repair at the Builder’s expense. In principle, such transportation shall be by the most expeditious public surface transportation. If required to keep the Vessel in operation, the Builder shall arrange for and bear the cost of transporting necessary parts or materials by air transportation. The Builder shall in every case use its best efforts to expedite the furnishing to the Buyer of replacement parts or materials required under this Guarantee. Technicians and specialists necessary to perform repairs under the Guarantee are to be furnished by the Builder at the Builder’s expense, including transportation costs to and from the Vessel in case that the Buyer and the Builder mutually agree or such repairs seriously affect the operation of the Vessel. Repairs under this Article are guaranteed for the balance of the period set out in paragraph (a) of this Article; however, major repairs shall be guaranteed for the longer of (x) the balance of the period set out in paragraph (a) of this Article, or (y) two (2) months from the date of completion of such major repairs, but in no event longer than twenty-six (26) months after the Delivery Date. For purposes of this paragraph, “major repairs” shall be any repair costing more than Thirty Five Thousand United States Dollars (US$35,000). If a Guarantee Defect can be repaired or replaced by the Vessel’s crew, the Buyer will give prior notice to the Builder of such defect, and upon the Builder’s acceptance that the Buyer may remedy such defect, the Builder will reimburse the Buyer for the incremental costs of the crew’s labor so incurred, or the cost of such labor at the Builder’s Shipyard, whichever is the lesser, excluding normal maintenance. Guarantee Defects that affect the safety of the Vessel or crew and/or constitute an emergency, shall be repaired either by the crew or the Buyer-selected contractor in a reasonable manner under the circumstances without the Builder’s prior approval, and the Builder shall be notified as soon as possible after the repairs are undertaken and such repair work will be subject to mutual agreement between the parties; provided any such repair work shall not adversely affect any provisions of this Article XIV as to any other Guarantee Defect. In any case, the Builder shall also reimburse the Buyer for the actual cost, in the currency incurred, of any temporary repairs necessary to enable the Vessel to present itself for permanent repairs. Builder’s liability for defects in the Vessel, its machinery, equipment or other appurtenances, shall be as provided in this Article XIV, and the Builder shall be under no obligation for defects in workmanship or contractor supplied materials in any part of the Vessel which have been replaced or in any way repaired by any contractor, unless such contractors have been appointed or approved by the Builder, such appointment or approval not to be unreasonably withheld or delayed. In no event shall the Builder be liable for any consequential damages or for any loss of hire or time in operation on repair of the Vessel. The Parties hereto agree that there are no warranties intended or given, which extend beyond those specified in this Contract, and that the provisions of this Article XIV exclude and negate any warrantee, express or implied (including any implied warranty of merchantability or fitness for particular purpose), or other or responsibility or liability imposed by law, statute, or otherwise with respect to the Vessel.

BUILDER’S GUARANTEE. (a) Builder shall guarantee the Vessel in accordance with the terms and conditions of this Contract (hereinafter called the “Guarantee”). If, within twenty-four (24) months, or such longer period as might be specified with respect to certain equipment or machinery in the Specifications or in this Article XIV (hereinafter called the “Guarantee Period”) after the Delivery and Acceptance of the Vessel, any defect in the Vessel (except the Buyer-furnished Equipment), its design, machinery, equipment, or other appurtenances, due to defective materials or workmanship, or failure to construct in conformity with the Plans and Specifications (all hereinafter referred to as “Guarantee Defects”), shall be discovered (other than defects solely due to normal wear and tear, negligence or improper acts of the operator or crew of said Vessel, or overloading, improper loading, stowage, and accident), the Builder shall as quickly as possible after receipt of the Buyer’s written notice thereof, correct, replace, or repair such defect at its own expense at its Shipyard; provided that if, in the Buyer’s opinion, the Vessel cannot conveniently be brought to the Shipyard, and if no other agreement can be reached between the Parties, the Builder shall pay to the Buyer the reasonable cost of making repairs or replacements in a first class shipyard, at the prices prevailing at the time such repairs or replacements are made. The ballast tank coatings shall be guaranteed for twenty-four (24) months after Delivery by the Builder and for a further thirty-six (36) months by the paint manufacturer. Builder guarantees the cargo containment system against any design or construction defect or failure for sixty (60) months after Delivery. Replacement parts or materials to be furnished to the Buyer by Builder for making of repairs under this Guarantee which are performed other than at the Shipyard or in such other facility of the Builder shall be transported to the place of repair at the Builder’s expense. 38 of 66 In principle, such transportation shall be by the most expeditious public surface transportation. If required to keep the Vessel in operation, the Builder shall arrange for and bear the cost of transporting necessary parts or materials by air transportation. The Builder shall in every case use its best efforts to expedite the furnishing to the Buyer of replacement parts or materials required under this Guarantee. Technicians and specialists necessary to perform repairs under the Guarantee are to be furnished by the Builder at the Builder’s expense, including transportation costs to and from the Vessel in case that the Buyer and the Builder mutually agree or such repairs seriously affect the operation of the Vessel. Repairs under this Article are guaranteed for the balance of the period set out in paragraph (a) of this Article; however, major repairs shall be guaranteed for the longer of (x) the balance of the period set out in paragraph (a) of this Article, or (y) two (2) months from the date of completion of such major repairs, but in no event longer than twenty-six (26) months after the Delivery Date. For purposes of this paragraph, “major repairs” shall be any repair costing more than Thirty Five Thousand United States Dollars (US$US$ 35,000). If a Guarantee Defect can be repaired or replaced by the Vessel’s crew, the Buyer will give prior notice to the Builder of such defect, and upon the Builder’s acceptance that the Buyer may remedy such defect, the Builder will reimburse the Buyer for the incremental costs of the crew’s labor so incurred, or the cost of such labor at the Builder’s Shipyard, whichever is the lesser, excluding normal maintenance. Guarantee Defects that affect the safety of the Vessel or crew and/or constitute an emergency, shall be repaired either by the crew or the Buyer-selected contractor in a reasonable manner under the circumstances without the Builder’s prior approval, and the Builder shall be notified as soon as possible after the repairs are undertaken and such repair work will be subject to mutual agreement between the parties; provided any such repair work shall not adversely affect any provisions of this Article XIV as to any other Guarantee Defect. In any case, the Builder shall also reimburse the Buyer for the actual cost, in the currency incurred, of any temporary repairs necessary to enable the Vessel to present itself for permanent repairs. Builder’s liability for defects in the Vessel, its machinery, equipment or other appurtenances, shall be as provided in this Article XIV, and the Builder shall be under no 39 of 66 obligation for defects in workmanship or contractor supplied materials in any part of the Vessel which have been replaced or in any way repaired by any contractor, unless such contractors have been appointed or approved by the Builder, such appointment or approval not to be unreasonably withheld or delayed. In no event shall the Builder be liable for any consequential damages or for any loss of hire or time in operation on repair of the Vessel. The Parties hereto agree that there are no warranties intended or given, which extend beyond those specified in this Contract, and that the provisions of this Article XIV exclude and negate any warrantee, express or implied (including any implied warranty of merchantability or fitness for particular purpose), or other or responsibility or liability imposed by law, statute, or otherwise with respect to the Vessel.

BUILDER’S GUARANTEE. (a) Builder shall guarantee the Vessel in accordance with the terms and conditions of this Contract (hereinafter called the “Guarantee”). If, within twenty-four (24) months, or such longer period as might be specified with respect to certain equipment or machinery in the Specifications or in this Article XIV (hereinafter called the “Guarantee Period”) after the Delivery and Acceptance of the Vessel, any defect in the Vessel (except the Buyer-furnished Equipment), its design, machinery, equipment, or other appurtenances, due to defective materials or workmanship, or failure to construct in conformity with the Plans and Specifications (all hereinafter referred to as “Guarantee Defects”), shall be discovered (other than defects solely due to normal wear and tear, negligence or improper acts of the operator or crew of said Vessel, or overloading, improper loading, stowage, and accident), the Builder shall as quickly as possible after receipt of the Buyer’s written notice thereof, correct, replace, or repair such defect at its own expense at its Shipyard; provided that if, in the Buyer’s opinion, the Vessel cannot conveniently be brought to the Shipyard, and if no other agreement can be reached between the Parties, the Builder shall pay to the Buyer the reasonable cost of making repairs or replacements in a first class shipyard, at the prices prevailing at the time such repairs or replacements are made. The ballast tank coatings shall be guaranteed for twenty-four (24) months after Delivery by the Builder and for a further thirty-six (36) months by the paint manufacturer. Builder guarantees the cargo containment system against any design or construction defect or failure for sixty (60) months after Delivery. Replacement parts or materials to be furnished to the Buyer by Builder for making of repairs under this Guarantee which are performed other than at the Shipyard or in such other facility of the Builder shall be transported to the place of repair at the Builder’s expense. In principle, such transportation shall be by the most expeditious public surface transportation. If required to keep the Vessel in operation, the Builder shall arrange for and bear the cost of transporting necessary parts or materials by air transportation. The Builder shall in every case use its best efforts to expedite the furnishing to the Buyer of replacement parts or materials required under this Guarantee. Technicians and specialists necessary to perform repairs under the Guarantee are to be furnished by the Builder at the Builder’s expense, including transportation costs to and from the Vessel in case that the Buyer and the Builder mutually agree or such repairs seriously affect the operation of the Vessel. Repairs under this Article are guaranteed for the balance of the period set out in paragraph (a) of this Article; however, major repairs shall be guaranteed for the longer of (x) the balance of the period set out in paragraph (a) of this Article, or (y) two (2) months from the date of completion of such major repairs, but in no event longer than twenty-six (26) months after the Delivery Date. For purposes of this paragraph, “major repairs” shall be any repair costing more than Thirty Five Thousand United States Dollars (US$35,000). If a Guarantee Defect can be repaired or replaced by the Vessel’s crew, the Buyer will give prior notice to the Builder of such defect, and upon the Builder’s acceptance that the Buyer may remedy such defect, the Builder will reimburse the Buyer for the incremental costs of the crew’s labor so incurred, or the cost of such labor at the Builder’s Shipyard, whichever is the lesser, excluding normal maintenance. Guarantee Defects that affect the safety of the Vessel or crew and/or constitute an emergency, shall be repaired either by the crew or the Buyer-selected contractor in a reasonable manner under the circumstances without the Builder’s prior approval, and the Builder shall be notified as soon as possible after the repairs are undertaken and such repair work will be subject to mutual agreement between the parties; provided any such repair work shall not adversely affect any provisions of this Article XIV as to any other Guarantee Defect. In any case, 45 of 74 the Builder shall also reimburse the Buyer for the actual cost, in the currency incurred, of any temporary repairs necessary to enable the Vessel to present itself for permanent repairs. Builder’s liability for defects in the Vessel, its machinery, equipment or other appurtenances, shall be as provided in this Article XIV, and the Builder shall be under no obligation for defects in workmanship or contractor supplied materials in any part of the Vessel which have been replaced or in any way repaired by any contractor, unless such contractors have been appointed or approved by the Builder, such appointment or approval not to be unreasonably withheld or delayed. In no event shall the Builder be liable for any consequential damages or for any loss of hire or time in operation on repair of the Vessel. The Parties hereto agree that there are no warranties intended or given, which extend beyond those specified in this Contract, and that the provisions of this Article XIV exclude and negate any warrantee, express or implied (including any implied warranty of merchantability or fitness for particular purpose), or other or responsibility or liability imposed by law, statute, or otherwise with respect to the Vessel.

BUILDER’S GUARANTEE. (a) Builder shall guarantee the Vessel in accordance with the terms and conditions of this Contract (hereinafter called the “Guarantee”). If, within twenty-four (24) months, or such longer period as might be specified with respect to certain equipment or machinery in the Specifications or in this Article XIV (hereinafter called the “Guarantee Period”) after the Delivery and Acceptance of the Vessel, any defect in the Vessel (except the Buyer-furnished Equipment), its design, machinery, equipment, or other appurtenances, due to defective materials or workmanship, or failure to construct in conformity with the Plans and Specifications (all hereinafter referred to as “Guarantee Defects”), shall be discovered (other than defects solely due to normal wear and tear, negligence or improper acts of the operator or crew of said Vessel, or overloading, improper loading, stowage, and accident), the Builder shall as quickly as possible after receipt of the Buyer’s written notice thereof, correct, replace, or repair such defect at its own expense at its Shipyard; provided that if, in the Buyer’s opinion, the Vessel cannot conveniently be brought to the Shipyard, and if no other agreement can be reached between the Parties, the Builder shall pay to the Buyer the reasonable cost of making repairs or replacements in a first class shipyard, at the prices prevailing at the time such repairs or replacements are made. The ballast tank coatings shall be guaranteed for twenty-four (24) months after Delivery by the Builder and for a further thirty-six (36) months by the paint manufacturer. Builder guarantees the cargo containment system against any design or construction defect or failure for sixty (60) months after Delivery. Replacement parts or materials to be furnished to the Buyer by Builder for making of repairs under this Guarantee which are performed other than at the Shipyard or in such other facility of the Builder shall be transported to the place of repair at the Builder’s expense. In principle, such transportation shall be by the most expeditious public surface transportation. If required to keep the Vessel in operation, the Builder shall arrange for and bear the cost of transporting necessary parts or materials by air transportation. The Builder shall in every case use its best efforts to expedite the furnishing to the Buyer of replacement parts or materials required under this Guarantee. Technicians and specialists necessary to perform repairs under the Guarantee are to be furnished by the Builder at the Builder’s expense, including transportation costs to and from the Vessel in case that the Buyer and the Builder mutually agree or such repairs seriously affect the operation of the Vessel. Repairs under this Article are guaranteed for the balance of the period set out in paragraph (a) of this Article; however, major repairs shall be guaranteed for the longer of (x) the balance of the period set out in paragraph (a) of this Article, or (y) two (2) months from the date of completion of such major repairs, but in no event longer than twenty-six (26) months after the Delivery Date. For purposes of this paragraph, “major repairs” shall be any repair costing more than Thirty Five Thousand United States Dollars (US$35,000). If a Guarantee Defect can be repaired or replaced by the Vessel’s crew, the Buyer will give prior notice to the Builder of such defect, and upon the Builder’s acceptance that the Buyer may remedy such defect, the Builder will reimburse the Buyer for the incremental costs of the crew’s labor so incurred, or the cost of such labor at the Builder’s Shipyard, whichever is the lesser, excluding normal maintenance. Guarantee Defects that affect the safety of the Vessel or crew and/or constitute an emergency, shall be repaired either by the crew or the Buyer-selected contractor in a reasonable manner under the circumstances without the Builder’s prior approval, and the Builder shall be notified as soon as possible after the repairs are undertaken and such repair work will be subject to mutual agreement between the parties; provided any such repair work shall not adversely affect any provisions of this Article XIV as to any other Guarantee Defect. In any case, 45 of 75 the Builder shall also reimburse the Buyer for the actual cost, in the currency incurred, of any temporary repairs necessary to enable the Vessel to present itself for permanent repairs. Builder’s liability for defects in the Vessel, its machinery, equipment or other appurtenances, shall be as provided in this Article XIV, and the Builder shall be under no obligation for defects in workmanship or contractor supplied materials in any part of the Vessel which have been replaced or in any way repaired by any contractor, unless such contractors have been appointed or approved by the Builder, such appointment or approval not to be unreasonably withheld or delayed. In no event shall the Builder be liable for any consequential damages or for any loss of hire or time in operation on repair of the Vessel. The Parties hereto agree that there are no warranties intended or given, which extend beyond those specified in this Contract, and that the provisions of this Article XIV exclude and negate any warrantee, express or implied (including any implied warranty of merchantability or fitness for particular purpose), or other or responsibility or liability imposed by law, statute, or otherwise with respect to the Vessel.

BUILDER’S GUARANTEE. (a) Builder shall guarantee the Vessel in accordance with the terms and conditions of this Contract (hereinafter called the “Guarantee”). If, within twenty-four (24) months, or such longer period as might be specified with respect to certain equipment or machinery in the Specifications or in this Article XIV (hereinafter called the “Guarantee Period”) after the Delivery and Acceptance of the Vessel, any defect in the Vessel (except the Buyer-furnished Equipment), its design, machinery, equipment, or other appurtenances, due to defective materials or workmanship, or failure to construct in conformity with the Plans and Specifications (all hereinafter referred to as “Guarantee Defects”), shall be discovered (other than defects solely due to normal wear and tear, negligence or improper acts of the operator or crew of said Vessel, or overloading, improper loading, stowage, and accident), the Builder shall as quickly as possible after receipt of the Buyer’s written notice thereof, correct, replace, or repair such defect at its own expense at its Shipyard; provided that if, in the Buyer’s opinion, the Vessel cannot conveniently be brought to the Shipyard, and if no other agreement can be reached between the Parties, the Builder shall pay to the Buyer the reasonable cost of making repairs or replacements in a first class shipyard, at the prices prevailing at the time such repairs or replacements are made. The ballast tank coatings shall be guaranteed for twenty-four (24) months after Delivery by the Builder and for a further thirty-six (36) months by the paint manufacturer. Builder guarantees the cargo containment system against any design or construction defect or failure for sixty (60) months after Delivery. Replacement parts or materials to be furnished to the Buyer by Builder for making of repairs under this Guarantee which are performed other than at the Shipyard or in such other facility of the Builder shall be transported to the place of repair at the Builder’s expense. In principle, such transportation shall be by the most expeditious public surface transportation. If required to keep the Vessel in operation, the Builder shall arrange for and bear the cost of transporting necessary parts or materials by air transportation. The Builder shall in every case use its best efforts to expedite the 39 of 66 furnishing to the Buyer of replacement parts or materials required under this Guarantee. Technicians and specialists necessary to perform repairs under the Guarantee are to be furnished by the Builder at the Builder’s expense, including transportation costs to and from the Vessel in case that the Buyer and the Builder mutually agree or such repairs seriously affect the operation of the Vessel. Repairs under this Article are guaranteed for the balance of the period set out in paragraph (a) of this Article; however, major repairs shall be guaranteed for the longer of (x) the balance of the period set out in paragraph (a) of this Article, or (y) two (2) months from the date of completion of such major repairs, but in no event longer than twenty-six (26) months after the Delivery Date. For purposes of this paragraph, “major repairs” shall be any repair costing more than Thirty Five Thousand United States Dollars (US$35,000). If a Guarantee Defect can be repaired or replaced by the Vessel’s crew, the Buyer will give prior notice to the Builder of such defect, and upon the Builder’s acceptance that the Buyer may remedy such defect, the Builder will reimburse the Buyer for the incremental costs of the crew’s labor so incurred, or the cost of such labor at the Builder’s Shipyard, whichever is the lesser, excluding normal maintenance. Guarantee Defects that affect the safety of the Vessel or crew and/or constitute an emergency, shall be repaired either by the crew or the Buyer-selected contractor in a reasonable manner under the circumstances without the Builder’s prior approval, and the Builder shall be notified as soon as possible after the repairs are undertaken and such repair work will be subject to mutual agreement between the parties; provided any such repair work shall not adversely affect any provisions of this Article XIV as to any other Guarantee Defect. In any case, the Builder shall also reimburse the Buyer for the actual cost, in the currency incurred, of any temporary repairs necessary to enable the Vessel to present itself for permanent repairs. Builder’s liability for defects in the Vessel, its machinery, equipment or other appurtenances, shall be as provided in this Article XIV, and the Builder shall be under no obligation for defects in workmanship or contractor supplied materials in any part of the Vessel which have been replaced or in any way repaired by any contractor, unless such contractors have been appointed or approved by the 40 of 66 Builder, such appointment or approval not to be unreasonably withheld or delayed. In no event shall the Builder be liable for any consequential damages or for any loss of hire or time in operation on repair of the Vessel. The Parties hereto agree that there are no warranties intended or given, which extend beyond those specified in this Contract, and that the provisions of this Article XIV exclude and negate any warrantee, express or implied (including any implied warranty of merchantability or fitness for particular purpose), or other or responsibility or liability imposed by law, statute, or otherwise with respect to the Vessel.