Hull & Machinery surveys are conducted to investigate instances of damage and repair costs for vessels entered for Hull & Machinery cover. The survey - including reporting - may be carried out by a staff surveyor, or an approved external surveyor.

Before attending a casualty, the surveyor will search the Club's own computerised records for any claims associated with the vessel that have not been finally settled. The surveyor will include details on the status of such casualties in the report, if relevant.

Surveys of this type are carried out according to the Club's damage report/damage survey reporting format. The report will include a brief outline of the circumstances and events relating to the casualty, together with details and a description of the extent of the damage and an estimate of repair costs. The report may be downloaded from this site.

Typically, a report will include the following documentation:

• Master's damage report
• Chief Engineer's damage report
• Superintendent's damage report
• Relevant log book extracts
• Repairer's/specialist's damage reports
• Technical information/drawings
• Relevant classification reports and records
• Repairer's invoices

The surveyor will examine repair invoices and give an opinion on whether they relate to the casualty/damage case under consideration and whether they are fair and reasonable. Photographs will also be taken to illustrate the nature of the damage.


Preparing for a Damage Survey

Guidelines have been established to help the owner's representatives cooperate with the Club's surveyor in the event of an incident involving damage. The owner's representative is a superintendent, in many cases, but the Master or Chief Engineer may assume this role.

The surveyor will present a document on boarding the vessel, showing that he or his company has been appointed by the Club and is authorised to conduct the survey. Ideally, the Master should also have been informed by the owners/managers and given sufficient time to make the necessary preparations.

In most instances, the verbal information provided by the owner's representative is the starting point for the surveyor. The surveyor will always welcome a first-hand account of what has happened, backed up by an appraisal of the extent of the damage.

In order to assist the surveyor and save precious time, the following documentation should be made available to the surveyor:

• Vessel log books, covering the relevant period
• A signed statement from the Master, Chief Engineer and/or ship's personnel directly involved
• Vessel's ISM damage/non-conformity report
• Maintenance records
• Classification records
• A repair specification, if available
• A statement outlining the cause of the damage, in the owner's opinion, and any documentation supporting the owner's statement
• Drawings

The owner's representative would normally express his opinion as to the cause of the damage and he should expect the surveyor to indicate whether or not he agrees with this view. The Club have the right to investigate all aspects of a claim after the survey has been conducted. The Club, together with the owners, are free to call for further advice and opinions.

Beyond the owner's representative and the surveyor, the following individuals should attend the survey whenever possible:

• The classification society surveyor
• A representative from the repairs contractor
• Appropriate officers from the vessel

It is a great advantage to make available to the surveyor the necessary drawings, instruction manuals and associated documentation. This will speed up the inspection process by facilitating the work of the surveyor.

In the context of a survey, the owner's representative is synonymous with the shipowner. He presents the claim and he is the party who can order repairs to be carried out. The surveyor may agree to actions taken, or even recommend a certain course of action, but is not empowered to instruct repairers to carry out work.

As a general matter of principle, the owner's representative should describe the damage and each member of the group involved should state his views and voice any doubts or disagreement with this description.

The main purpose of the survey is to come to an agreement as to cause, nature and extent of the damage. Every effort should be made to reach this agreement whilst the evidence is still available. In some instances, further records will be required and the owner's representative should take the necessary steps to meet such requests as soon as possible.

An estimate of the cost of repairs should be made and discussed. If repairs are to be carried out immediately, the repairers may be requested to submit a bid or discuss terms. Tenders should be invited whenever possible. This may be requested by the Club. Upon request, the surveyor may assist in writing the specification. He will also give advice as to which repair yards should be involved in the tender process.

A specification should be structured to cover:

• Agreed damage
• Any items subject to discussion
• General expenses
• Owner's work (if any)

The tenderer should be asked to quote distinct prices for the specific items of work. It is also beneficial to reach an early agreement as to whether drydocking is necessary. Before commencing repairs, the owner's representative should seek the Club's approval of his proposed course of action.

During repairs, it is the owners representatives' duty to keep the surveyor informed and to draw to his attention any major changes in the scope of agreed work. The object is to ensure that all necessary information is conveyed to the surveyor, in good time. In the end, this will facilitate the further handling of the case.

When repairs are completed, an assessment meeting should be arranged, to re-check work content and schedules and reach agreement on the time invoiced for the different items.

An essential part of any survey report is a detailed presentation of all costs involved, analysed item-by-item. If the surveyor is to supply this information, very close cooperation is required with the owner's representative. The best way to achieve this is to invite the surveyor to participate in the discussions involved in the settlement of repair invoices. This will enable him to finalise his report expeditiously. It will also ensure rapid settlement.

The surveyor is required to certify that costs are fair and reasonable and that they are related directly to the damage in question. If he cannot certify this and cannot resolve outstanding issues with the owner's representative, this fact should be stated clearly in his report.

A full range of costs should be brought to the surveyor's attention and submitted for approval, such as:

• Additional costs for working overtime
• Subcontractors
• Spare parts or other supplies
• Work carried out by the crew in relation to damage repairs

Should the owner choose to defer the repair of the damage (given approval by the classification society), a specification of outstanding repairs should be drawn up, agreed and form part of the surveyor's report.

When an owners representative takes the Club's surveyor into his confidence and maintains open communication throughout the case, there should be few if any problems in reaching a fair and amicable settlement. Where there are opposing opinions every effort will be made to resolve them. A full description of any unresolved issues will be included in the report.