Expertise / LOC / Our People / Surveys, Inspections & Audits / Pre-purchase Survey
We have extensive experience performing pre-purchase surveys
LOC experts have extensive experience performing pre-purchase surveys for a variety of clients. LOC offers pre-purchase surveys as part of our due diligence capability.
The following is a list of the options/capabilities for pre-purchase work, we can:
- Provide a view on the vessel’s design and assess the competitiveness of the assets compared to current fleet of similar vessels in the Industry
- Review the planned maintenance system (PMS) including defect reporting
- Inspect monthly operating expenditure (OPEX) data, maintenance records, dry-docking records and spare parts ordering
- Identify the major items of upcoming capital expenditure (CAPEX), including dry dockings, special surveys and any modifications to the ships that may be required as a result of impending regulatory changes
- Assess the reasonableness of maintenance related OPEX and CAPEX
- Identify the cause and nature of unexpected maintenance work which, according to management, significantly affected profitability; and assess the effectiveness of corrective actions taken by management
- Identify any technical and operational risks and suggest mitigation
- Assess how assets have been maintained, to what extent breakdown maintenance occurs regularly, hull condition, condition of the assets, likely availability going forward
- Assess the quality of the company’s fleet management, which includes office audit of the target group’s operating procedures, maintenance policies and procedures, safety management system, internal and external audits, records of emergency response drills, and other key performance indicators.
- Assess the lease agreement and charter contracts from the technical perspective such as warranties pertaining to the condition of the vessels, liability for defects and repairs at end of charter terms etc.
- Review and evaluation of the insurances details of vessels
- Pre-purchase / condition survey of vessels.