Lessons from 28 Years of Global Yacht Projects
Part 1 of the Financially Capsized Series
Every yacht owner feels it — that uneasy moment when the refit begins. The crew steps off, the tools roll in, and the invoices start forming before a single wrench turns. You trust your yard. You respect their craft. But something deep inside you knows: a yacht shipyard refit can turn financially unpredictable faster than a sudden squall.
After nearly three decades of working for yacht owners in shipyard projects around the world, I’ve seen both sides of the equation. Shipyards full of skilled craftsmen doing their best work…and yacht owners who simply didn’t know how to protect themselves from confusion, assumptions, and unexpected costs.
This isn’t about distrust. It’s about preparation. Here’s how smart owners stay in control — without conflict, and without being “that” client.
WHY PROJECTS DRIFT FINANCIALLY
Refit budgets rarely go off course because of bad intent. Most yacht shipyards operate on honest effort, complex logistics, and tight schedules.
The problem is very often…communication gaps.
When projects are billed on a “Time & Materials” basis, the financial picture can blur quickly. Hours accumulate, materials shift, subcontractors join the mix — and suddenly the spreadsheet tells a different story.
Some yards run like Swiss watches. Others rely on a more fluid, trust-based rhythm. Both can deliver great work — until clarity slips through the cracks.
The real enemy isn’t the shipyard.
It’s a lack of strategic planning and daily monitoring.
WHAT HAPPENS WHEN YOU DON’T HAVE A SYSTEM
Without a simple accountability system, confusion grows like barnacles.
Invoices arrive. The numbers feel off. You hesitate to question them because you don’t want to seem difficult. Weeks pass. Then months. And by the time the project wraps, it’s hard to trace where the budget went.
I know stories of yachts whose owners expected to spend a few hundred thousand only to have the final bill balloon over one million — not from dishonesty, but because daily labor logs and change approvals weren’t cross-checked. No one caught it until it was too late.
The lesson? Lack of clarity can cost you more than an hourly rate ever will.
HOW TO AVOID FINANCIAL SURPRISES WITHOUT CREATING FRICTION
The best yacht owners I’ve worked with do one thing consistently: they turn uncertainty into structure.
Here’s the same system I use when managing refit projects globally.
CAPTAIN’S SYSTEM FOR TRANSPARENCY AND TRUST
- Define the Scope in Writing
Request a detailed line-item quote for each task before any work begins. It’s not about mistrust — it’s about mutual understanding. - Track Time Logically
Ask for a sign-in/out log, digital or handwritten. It keeps everyone honest — and surprisingly, most techs appreciate it because it protects them too. - Hold Weekly Check-Ins
A quick, scheduled review prevents misunderstandings and keeps both parties focused on solutions, not surprises. - Create a Photo Progress Journal
A few photos per week (even from your crew or your project manager) give visibility and help document the value of the work being done. - Show Professional Respect
The best results come when both sides know their work is valued. Trust, structure, and mutual respect build better outcomes than confrontation ever could.
SMART OWNER INSIGHTS
Q: Should I avoid Time & Materials contracts completely?
A: Not necessarily. They can work beautifully when paired with transparency and clear reporting. The key is structure, not suspicion.
Q: What’s a fair markup for parts or subcontractors?
A: Every yard is different, but 10-20% is typical. Knowing the percentage upfront avoids misunderstandings later. World-class expertise is what you’re paying for inside most yacht shipyards.
Q: Do refit records help resale value?
A: Absolutely. Buyers love seeing organization, proof of maintenance, and strong documentation. It signals professional ownership.
Q: Can I deduct refit costs as a business expense?
A: In some cases, yes — particularly if the yacht is chartered or used commercially. Always confirm with a marine CPA before assuming.
CONCLUSION
Shipyards aren’t the enemy. Unclear systems are. The most successful yacht owners I know don’t micromanage; they manage intelligently.
By defining scope, tracking progress, and keeping communication clear, they turn a stressful refit into a confident, cooperative process. And when the final invoice lands, there are no surprises — only satisfaction.
Want More Help?
Schedule a Private Consultation
If you’d like to learn how to set up your own refit tracking system before your next yard period, schedule a private consultation. We’ll walk through your current setup and identify where clarity can save you the most.
About St. Clair Superyachts
Based in Fort Lauderdale, Florida, St. Clair Superyachts is a boutique licensed Florida superyacht brokerage founded by veteran yachtsman Kevin St. Clair. With nearly three decades of on-the-water experience — including work as a captain, marine engineer, and global project manager — Kevin built the firm on a foundation of trust, discretion, and financial protection for owners of motoryachts and superyachts.
Leveraging more than 200,000 nautical miles of logged travel and hundreds of high-stakes yard periods, St. Clair Superyachts helps clients reduce expense risk, avoid costly refit surprises, and navigate buying, owning, and selling with clarity and confidence.
The firm specializes in:
- Pre-offer inspections (walkthrough) onboard select yachts for certain individuals.
- Brokerage assistance buying & selling ultra-luxury motoryachts and superyachts for high-net-worth individuals.
- Owner representation during new builds, refits and major haul-outs – focusing on ensuring transparency, accountability and budget control.
- Strategic advice on risk mitigation (foreign and domestic superyacht acquisitions, storm preparation, registration, resale-value preservation) across the yacht lifecycle.
Trusted by hundreds of yacht owners around the world and featured in major industry outlets, St. Clair Superyachts is your proven and trusted superyacht buyer, owner & seller’s representative.
Founder Contact
Kevin St. Clair – Principal – St. Clair Superyachts – Licensed Florida Yacht Brokerage
+1 (954) 652-9539 · Kevin@stclairsuperyachts.com · Fort Lauderdale, Florida, USA
Get a Shipyard Refit Strategy Call
Before your yard period drifts, let’s align scope, time-logs, and approvals. We’ll blueprint a simple accountability system that protects your budget without creating friction.
- Line-item scope and quote sanity check
- Time & materials guardrails that maintain trust
- Weekly checkpoints + photo progress journal setup
“You will always be my broker.”
— Buyer, Mangusta 130', Monaco (2025)
Yacht Shipyard & Refit – Owner FAQ
Q1. What are the most common reasons yacht refit or shipyard projects go over budget?
A: Many cost overruns stem from scope creep, unclear contracts, and change orders that accumulate without owner oversight. Lack of scheduled progress reviews can also lead to inflated labor hours or duplicated work.
Q2. How can yacht owners maintain financial control during a major refit or yard period?
A: The best protection is a defined scope, documented milestones, and regular financial tracking. Independent oversight or project management helps ensure transparency on time and materials. In short…communication! 🙂
Q3. What’s the difference between a fixed-price contract and a time-and-materials agreement in a shipyard?
A: A fixed-price contract locks in total cost for agreed work, while time-and-materials allows billing for actual labor and supplies. Each has risks - owners must match contract type to project complexity and supervision level.
Q4. Can delays in parts or subcontractors affect the total shipyard bill?
A: Yes. Delays often extend dockage, utilities, and labor standby costs. Owners should confirm in writing which party bears those charges if third-party delays occur.
Q5. How can a yacht owner prepare before entering the shipyard to avoid financial surprises?
A: Conduct a detailed pre-yard inspection (or contact St. Clair Superyachts to do this for you), outline priorities versus wish-list items, and secure multiple bids. Establish an approval process for any scope change before the first tool is lifted.
