technical file

MARINE SURVEYORSAND SURVEYS by Eric Ogden

There is no worse experience for a yacht buyer than closing on the purchase of their dream
yacht only to discover major damage that could seriously impair not only the value, but the
safety and seaworthiness of their new acquisition. Yacht brokers sometimes ignore the exis-
tence of such defects, and the associated risks, but those who sell a vessel despite their
knowledge of major flaws, do so without scruples. A pre-purchase survey by a professional
marine surveyor is essential for any prospective yacht buyer, as it will provide him the infor-
mation he needs to make a sound purchasing decision. In most cases, a marine surveyor is
appointed by an insurance company or a financial institution to evaluate the risk of the
investment and assess the extent of damage to a vessel. Although surveys of this nature are
important, they represent only a portion of a professional marine surveyor’s assignments..

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THE MARINE SURVEYORS marine surveyors organizations, The Society of

A c c redited Marine Surveyors (S.A.M.S.) and The
Today, shipyards are building larger vessels than ever, National Association of Marine Surveyors (N.A.M.S.),
equipped with increasingly sophisticated on-board require their members to meet strict professional,
systems, from materials ranging from traditional technical and ethical standards. Both organizations
wooden planking to high tech composites. So, who use similar screening and testing procedures. Mem-
are the marine surveyors responsible for accurately bers of the Society of Accredited Marine Surveyors,
inspecting and appraising these various types of for instance, must have a minimum of five years expe-
yachts? In most countries, the qualifications of marine rience and pass a written examination in order to earn
surveyors are totally unregulated; virtually anyone can their title. Furthermore, they are required to take
call himself a professional. Among practicing survey- refresher and advancement courses in order to main-
ors, the background and experience of the individuals tain that title. The members of these two organizations
range from retired navy officers to practicing naval are generally well-regarded and extensively hired by
architects/yacht designers, former boat builders to prospective buyers and insurance companies.
yard managers, even boating enthusiasts. Some have Before hiring a surveyor, it is of course important to
trained to improve their technical knowledge and find out the cost of his services and but moreover to
practical experience and have become competent inquire about his background experience and the
professionals. Unfortunately though, there are many nature of his qualifications. One can usually get an
so-called yacht surveyors who tarnish the image of the idea of whether or not the surveyor is a full-time pro-
profession with their lack of knowledge and experi- fessional or one who works part-time by comparing
ence. the fees charged. A marine surveyor must have solid
In the United States, the two nationally-recognized theoretical knowledge of the various aspects of yacht

The surveyor uses a hammer to sound Oil samples are useful tools to assess
the hull shell and assess its condition. he condition of engines.

The ultrasonic gauge allows the surveyor to measure A voltmeter is used by the surveyor to check the effi-
the thickness of the aluminum and steel hull plating. ciency of the bonding system and a reference cell.

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design, construction techniques and materials, nation-

al and international regulations regarding pleasure
yachts, and the practical experience in maintenance
and handling of boats. The survey of a yacht requires
the tools of the trade, the proper methodology and
working knowledge, along with high ethics. Whatever
the type of survey is to be carried out, it should be
done thoroughly with systematic care during the
inspection, followed by additional research when
writing out the survey report. This important docu-
ment must be informative and easy to read to enable
the reader to make the right decision, i.e. whether to
buy, to evaluate an insurance risk or finance a yacht.

THE PRE-PURCHASE
CONDITION SURVEY
This type of survey is the most comprehensive and is
generally carried out in three main steps. While the
vessel is afloat, it begins with an inspection of the
internal structure. This includes the examination and
testing of the various accessible on-board systems and
safety equipment such as the bilge pumps, fire fight-
ing system and life-saving appliances. The surveyor
may also check the bonding system by measuring
with an accurate voltmeter the voltage diff e re n c e
between the various immersed metal parts and a ref-
erence electrode, usually a silver/silver chloride half
cell.
The survey normally continues with an out-of-water
inspection and sounding of the external hull,
appendages, through-hull fittings, propellers, shafts,
rudders, sacrificial anodes and so on. On FRP hulls,
the relative moisture content of the underwater lami-
nate is often checked with an electronic moisture
meter, or its hardness with a Barcol impressor. On
steel and aluminum alloy hulls the surveyor can mea-
sure the plating thickness with an ultrasonic gauge. In
some cases the surveyor will also ask for some dis-
mantling to allow him to inspect certain components
which may otherwise be inaccessible. The expenses
incurred in moving a boat, or as a result of disman-
tling and subsequent repair of any structural part of
the vessel during the survey are the responsibility of
the buyer.
This out-of-water inspection is usually followed by a
short sea trial to check the performance of the boat
and the operation of the various systems. It is indeed
much better to check the maximum speed of a motor
yacht after the hull bottom and appendages have
been pre s s u re-washed and recoated with fre s h
antifouling paint. After the sea trial, the surveyor may
take samples of the engine and gearbox lube oil to be

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sent to a specialized laboratory. An oil analysis does

not tell the full story and should not be considered as
an engine survey. It is a valuable diagnostic tool
which is usually part of a full engine survey, which
may also include an endoscopic examination of the
internal components and compression tests carried
out by a professional engine surveyor. An electrical
survey, including a “Megger” test by a qualified elec-
trician, can be requested as well. On a large yacht, a
full pre-purchase condition survey may take several
days since its extent and duration varies widely with
the size and type of yacht. These various investiga-
tions and inspections allow the surveyor to fully
assess the condition of the yacht and prepare a com-
prehensive report for his client. A survey ends with
the completion of the survey report.
A pre-purchase survey report may be several dozen
pages long and generally starts by spelling out the
scope, conditions and limitations of the survey. It
then lists the vessel’s main particulars: name of the
yacht, registration number, dimensions and specifica-
tions, owner’s details and so on.
A thorough inspection of the bilges is imperative.
The following pages outline the various observations
and findings concerning the hull and deck structures, repairs and/or additional tests to be carried out. Pho-
superstructures, accommodations, machinery and tographs and other documents related to the inspect-
electrical installations, steering system, seacocks, ed yacht are normally attached to the report.
tanks, piping, communication equipment, navigation The cost of a survey depends on the surveyor, the
instruments, and safety equipment, etc... The recom- type of survey, and the yacht’s location. The fees are
mendations are then graded with respect to priority. normally charged on an hourly or daily rate for larger
Items that fall below safety standards are identified, if yachts, and dollars per foot of overall length for small-
relevant. The conclusion indicates the surveyor’s opin- er boats. However in all cases, the cost of a survey
ion on the general condition and if necessary, the should be well below 1% of the yacht’s value or ask-
ing price, and this rule applies
Checking the connections of the sacrificial anodes. even to average size crafts.
The buyer must keep in mind
that the money invested in a
survey will prevent him from
buying a yacht which does not
meet his re q u i rements. This
will also pr ovi de him the
opportunity to request that the
repairs identified in the survey
be carried out by the seller,
otherwise he has the right to
renegotiate the agreed price.

THE INSURANCE
SURVEY
T h e i ns u ra n ce s u rv e y is
requested by underwriters or
insurance brokers to verify a
yacht’s insurable condition and
value. However, since they are

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generally paid for by the insured, they are too often

limited to a quick inspection afloat. These surveys
are usually written up in a brief report which some-
times looks more like a brokerage listing or a sales
brochure than a survey report, and usually does not
include any serious finding or recommendations.
Although this type of inspection is generally consid-
ered sufficient to determine the open market value of
a boat, it provides limited information about the gen-
eral condition of a yacht, and may therefore be inad-
equate for insurance underwriters. It is encouraging
to note, however, that insurers are now asking for
more extensive insurance surveys, including an out of
water inspection.
In this case, the survey must cover the items which After damage, a survey is imperative.
can affect the structural integrity of the boat, particu-
larly concerning the potential risk of fire and flood.
The most important equipment in regards to lowering THE DAMAGE SURVEY
fire and flood risks are maintained or upgraded fire
detection/ alarm/ extinguishing systems, and bilge This type of survey is probably the best known among
pump systems. The prior history of the vessel, the pleasure boat or yacht owners since many of them
qualification and experience of the crew, and their have, at one time or another, issued a damage claim to
knowledge of emergency procedures, are also impor- their insurance company. In this case, the surveyor is
tant elements included in the evaluation of risk. A appointed by the yacht underwriters “to ascertain the
pre-purchase survey report, prepared by a qualified cause, nature, extent and recommended repairs of
and recognized marine surveyor, is usually accepted damage alleged to have been sustained in conse-
by most insurance companies provided it has recent- quence of the reported incident”. Normally, a marine
ly been performed. surveyor has no authority to discuss the insurance
policy’s terms and conditions on behalf of the insur-
ance brokers or underwriters. He cannot make deci-
sions as to whether or not a claim will be accepted, or
ascertain the amount to be paid by underwriters.
Depending on the nature of the loss, the surveyor can
either examine the damage on his own or jointly with
other surveyors if it involves other parties. At the con-
clusion of the survey, he will prepare a report and
send it exclusively to the insurers who have instructed
him. This report generally includes the owner or skip-
per’s statement of the circumstances during the time
of the incident, along with any additional findings or
recommendations. The surveyor will also include an
estimated costs of repairs. Finally, the surveyor will
offer his opinions and comments on the incident, the
damage, the recovery action to be taken against third
parties (when applicable), as well as the repair speci-
fications and arrangements.
In conclusion, the qualified marine surveyor is an
independent professional who plays an important
advisory role for the insurers as well as for any yacht
buyer or owner. He can offer invaluable technical
knowledge and assistance in the prevention and/or
the solution of technical problems associated with the
ownership and use of a pleasure boat.

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