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Home / Yachts / Superyacht 101 Series: Selecting an Owner’s Representative
AJ Anderson, owner's representative

Superyacht 101 Series: Selecting an Owner’s Representative

July 29, 2016 By: Diane M. Byrne

Editor’s note: This is the fourth installment in  a new series on MegayachtNews.com (see “Introducing the Superyacht 101 Series”). For this article, we spoke with AJ Anderson (above right and below). Wright is a longtime captain and the CEO of Wright Maritime Group, a large-yacht operations and management firm. Wright Maritime Group 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 role of an owner’s representative, and what to look for in hiring one.

What an owner’s representative does

Anderson says that above all, the person 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, all meet operational needs. Here, Anderson adds, it’s smart to find someone with operational experience. Finally, there’s ensuring regulatory compliance while avoiding 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 an 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. And if that happens during a build process, “you’re left without support continuity on a multi-million-dollar project,” he explains. Hiring a licensed and insured specialist company is therefore wise, even if supporting the captain as the owner’s representative.

superyacht 101 owner's representative

How to vet an owner’s representative

Look for experience with similarly complex yacht projects, Anderson says. So, too, ensure there’s adequate staff to address your questions and handle tasks. Background checks are worth the money at stake. Furthermore, be mindful of those who criticize versus collaborate. “There are some people who raise their own profile by tearing down others,” Anderson says. “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 even 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 an owner’s representative

Anderson says the build-specification stage, which is prior to the contract signing, is ideal. 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 says. It’s what ensures the descriptions and diagrams on paper result in your tangible, beautiful 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 an owner’s representative

“It’s never too late,” Anderson says. While pre-contract is the ideal scenario, the next best time is as soon as practical prior to construction starting. Barring that, Anderson says, 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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superyacht 101 series selecting a shipyardSuperyacht 101 Series: Selecting a Shipyard Mark RobbaSuperyacht 101 Series: Advice From Fellow Owner Mark Robba Buddy DarbySuperyacht 101 Series: Advice From Fellow Owner Buddy Darby

Categories: Superyacht 101 Series, YachtsTags: Wright Maritime Group

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