Editor’s note: This is the fourth installment in a new series on MegayachtNews.com (see “Introducing the Superyacht 101 Series”). It’s common to hear the term yacht owner’s representative, but not every owner has one or understands what the role entails. That’s why we spoke with AJ Anderson (above right and below). Wright is a longtime captain and the CEO of Wright Maritime Group, which oversees new construction, financial administration, crew employment, and more on behalf of owners. The megayachts under Anderson’s and his team’s guidance measure 197 to 453 feet (60 to 138 meters). Here, he outlines the responsibilities of a yacht owner’s representative, and what to look for in hiring one.
What a yacht owner’s representative does
Anderson says that above all, a yacht owner’s representative needs to serve with complete fidelity in your best interest. There are three key elements to the job. First is project coordination. “A project coordinator moves the information between the parties and makes sure there’s follow-up,” he explains. Second is ensuring that the layout and design details, plus systems planning and equipment, meet operational needs. Here, Anderson adds, it’s smart to find someone with operational experience. Finally, the representative ensures regulatory compliance without restricting the designer’s and owner’s abilities to meet their goals. He stresses, “This requires a forward-thinking approach, with solutions presented to the regulators as well as to the builder, who may otherwise read the prescriptive language of the applied regulation.” Furthermore, if you choose someone who doesn’t have all of these qualifications, make sure someone else on the operations team does.
Why hire a yacht owner’s representative
If you already have a captain, he or she can certainly be your representative. However, you could stretch your captain thin in the process, especially if you have another boat, Anderson cautions. In addition, he says, as much as personal relationships are important, sometimes captains and owners part ways. If that happens during a build process, “you’re left without support continuity on a multi-million-dollar project,” Anderson explains. Hiring a licensed and insured specialist company is therefore wise, even if supporting the captain as the owner’s representative.
How to vet a yacht owner’s representative
When weighing your options, look for experience with similarly complex yacht projects, Anderson says. So, too, ensure adequate staff exists to address your questions and handle tasks. Background checks are worth the money at stake. Be mindful of those who criticize versus collaborate. “There are some people who raise their own profile by tearing down others,” Anderson notes. “They say, ‘This project would be a disaster without me.’” Others, meanwhile, professionally press the shipyard to implement owners’ requests. These same people then come back to the owner, Anderson continues, and say, “’The yard wants to make things right.’” This often makes the yard more flexible in the specifications stage and potentially not charge change orders for minor changes. “We don’t want to beat the yard to a certain point that it’s not sustainable and goes out of business,” Anderson says. “Eventually, the yacht will be sold, and the brand of the builder will impact the resale price.”
When to hire a yacht owner’s representative
Anderson says the build-specification stage, prior to the contract signing, is ideal for bringing in a yacht owner’s representative. Keep in mind that it takes about a year to develop a specification and design, too. “It is a piece that you just don’t want to rush,” Anderson warns. It’s what ensures the descriptions and diagrams on paper result in your tangible yacht. “Once the contract is signed, so is the build specification set,” he adds “Once that takes place, the owner’s representative is constrained by the technical specification and related system and equipment choices. Understand that any alterations to what the specification describes will either be rejected by the builder or will cause a cost and possibly a delivery-date impact.”
When it’s too late to bring in a yacht owner’s representative
The good news is, “It’s never too late” to retain this specialist, Anderson says. While pre-contract is the ideal scenario, the next best time is as soon as practical before construction starts. Barring that, Anderson recommends hiring someone as soon as practical once the build begins. “All reputable builders will endorse, if not require, the assignment of an owner’s representative,” he explains. “A reputable owner’s representative will bring a controlled process and operational expertise that the builder and regulators will respect and allow the owner’s representative to influence decisions.”
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