Question: The contract negotiation for a new shipThe contract negotiation for a new ship can be divided into four areas:

Question: The contract negotiation for a new shipThe contract negotiation for a new ship can be divided into four areas: the price; the specification of the vessel; the contract; and the finance offered by the shipbuilder. What form does the price generally take?
A. A fixed price, payable in a series of ‘stage payments’ which spread payment over the construction of the vessel
B. A fixed price, payable in a series of ‘stage payments’ which spread payment over the first seven years of the vessel’s life.
C. A base price plus escalation clauses to allow for any change in the cost of materials during the construction period
Answer:- option A, A fixed price, payable in a series of ‘stage payments’ wh…View the full answer