Report #005 June 30th 2020

INTRODUCTION

The main points covered in the past two weeks have been centred around getting the Yacht watertight in preparation to launching on the 22nd June 2020. This has included underwater review of systems, anti-fouling paint, propeller and shaft alignments, rudder and thruster inspections etc.

It should be noted that with the moving of the Yacht and disruption to production, access onboard has been limited and, as such, we have spent less time onboard than normal. Nevertheless, as we enter the testing and trials phase we will be investing more time now until the delivery.

As agreed, we will have one of our first-class chief engineer present onsite from Friday to assist on operational set up, until arrival of the full-time engineer. Our engineer will also be present during parts of the testing phase along with the rest of the team until delivery.

During the inclination test, which commenced at 07.00 Monday 29th June 2020, the shipyard has verbally suggested to deliver the Yacht around the 10th August 2020. As always, we suggest you, as the Buyer, to always consider contractual delivery dates only, with an overview that variation is most probably inevitable and normal. We again remind the Buyer and the team that time is our biggest asset, therefore the more we can do to convince the builder that rushing and fast delivery is not in the Buyer’s interest, the better it will be for the Buyer long term.

As mentioned in the previous reports, Buyer’s decisions regarding crew, Owner’s supply, etc. suggest the Buyer’s team is late, meaning later delivery than planned. However we also fully appreciate and understand the underlying reasons given the legal situation in the background. The operational management team have advised that as soon as the legal issues are resolved, they are ready to go the extra mile to minimize any further delays.

As a general precaution measure we have taken the logical position of not accepting to sign any documentation, inspections or otherwise, presented by Sanlorenzo until notified by the Buyer’s team or legal counsel to do so.

In general terms the production is commencing well and coming together. The next phase is the most crucial with regards to testing and commissioning and we are looking forward to this process.

There is nothing new to be concerned about, we will keep you updated should that change.

GENERAL UPDATE - yacht launch 22nd june 2020

• The Yacht has been successfully launched.

• ABS classification society surveyor has attended the Yacht to perform some of their required tests, principally the safety rail system on both sides of the Yacht, underwater equipment installations and inclination tests. These tests were successfully completed and we are waiting certified correspondence for records to confirm.

• The general production process continues and is starting to increase now that Yacht movements have stopped.

EXTERIOR

• A paint inspection was carried out in conjunction with the yard’s appointed paint surveyors and their project management team present. The Yacht has been inspected from top to bottom and stem to stern. A report is expected to be issued to us containing its findings. Also and concurrently, the yard have issued a statement to the effect of; if any painting issues arise, we have the discretion to demand that the yard undertake to rectify those painting issues ahead of Yacht’s delivery. At this point, only attendance papers have been signed and no formal acceptance of the paint has been executed from our side on any part of the paint.

• Painting works: the overriding focus of the production team has been the re-working of the painting sections, some fairing, polishing and filling works. This culminated on Saturday 20th June 2020 with exterior paint inspections that were conducted outside in daylight conditions next to the production shed.

INTERIOR

• Progress is being made on the interior installation of the Yacht with a lot of the works being done swiftly, as the yard are trying hard to ensure the delivery date. We need to be mindful of this acceleration and ensure that it does not result in a reduction in the quality of the installation and/or materials onboard, we are working hard on this point with the builder.

• We will work on establishing a document that outlines in detail any and all interior discrepancies in addition to the construction log.

ENGINEERING

• Underwater equipment: the sealing of all fairleads and freeing ports, coupled with the fitting of the remaining underwater grills and hull protection anodes. The main working parts of the stern door assembly have also been completed prior to launching.

INCLINATION TEST

Monday 29th June 2020 at 07.00 we commenced the inclination test with the ABS surveyor and the technical department from SanLorenzo.

• As you will note from the photos (see inclination test section below), there was still some scaffolding and weight distribution that will require recalculating. We requested all tanks to be manually sounded and all fluids recorded.

• The ABS surveyor obtained and recorded all the information and has advised us he has enough data to produce the report.

• We have questioned the surveyor on the outcome of the sister ship inclination test which was positive.

• As soon as we have the report from ABS, we will keep you advised. At this stage, there is no need for concern.

NEXT STEPS

• We are now in the final stages of construction with nearly all the technical components of the build completed.  

• We are about to move into the systems and commissioning phase. This can be anticipated to commence sometime in the following weeks and is expected to remain in working progress until the final delivery of the Yacht.  

• The individual contractors will soon be putting the final touches to their respective works and begin to commission their own areas of responsibility or equipment and hand them over to the yard.  

• At that point, we will be invited to witness the testing of these systems and follow the yards acceptance protocols. This is anticipated in the later part of July, and will include system acceptance, interior inspections and sea trials, essentially leading towards the final delivery and acceptance of the Yacht.