Bringing yacht owner to financial reality?

A 5500 mile delivery of an "older Azimut"? WARNING. Contractors are chasing you because the owner is slow paying? WARNING.
I once met a tug captain in Mulgrave, Nova Scotia who contracted to bring the boat somewhere in the Great Lakes and would only get paid for a successful delivery when it was done. I thought of shooting him because he really was too stupid to live. A friend of mine is owed almost $4,000 for over a year that he laid outon a delivery. He doesn't like to pressure the guy because he's a nice guy and is having hard times. Thank god I spent 17 years in the collection business before getting into this (20 years ago)because there are just too many con artists to count. When you leave the dock have a few thousand of the owner's cash and his credit card and if the card stops working at any point head for the airport. The only thing to be done at trips end should be a little miscellaneous accounting which should amount to no more than your fee, and in fact should involve you giving money back. Who has more money, you or the owner of an Azimut? Why should you be supporting him? BTW, I've been stuck twice for a few hundred and I dragged both to court. I'm sure they won't hire or recommend me anymore, and I am so glad for that. Someday ask a lawyer to work for free or ask your bank if they'll wait a few months for your payment. Think like the professional you are.

Ditto ditto ditto

Chris W,

Reading your post it seems like your defending this person who is creating so many problems for you. Look at it this way for a change: when the Azimut owner is long gone (and it sounds like he won't last), and those contractors and technicians are still around, who do you think will pay the price for the late payments? Do you think they will have forgotten? Even if the guy eventually pays up, do you think they will pull out all the stops for you to get your new bosses boat done in a timely fashion? Once bitten, twice shy.

So there are really two issues here: will the contractors get paid, and will you get paid. Both are important. For your own protection, make sure the bills are all paid in full before you take the vessel from the yard. Make sure the contractors know that you're an employee who's trying to get paid too. Then, get your CV brushed up and start looking for a better employer.

My $0.02.

Chris,
I think you've gotten the message. It sounds like this guy saw you coming. He knows you're new and trying to build a rep, and he's taking advantage of it. You want to build a rep as a "can do" person, but you also have to make sure you don't get the rep of sucker. Never work for someone who penny-pinches in this business. This is not a sport for tight wallets. Never let someone put you in a situation where you feel uncomfortable. You have to be willing to walk away from a job if payment is slow or the job may be too dangerous even if you need the money. 5500 miles puts that delivery in South America or the west coast. For either that delivery should be on top of a ship unless he can get someone to do it for free. There's a reason he's not dealing closer to home and you're probably not going to like it. If you're in a situation where you're thinking 'he owes me money and the only way I'll get it is by letting him get in deeper to me' cut your losses, call it payment for education and move on. Good luck.

tip from my land bussines ..

Hi Chris,

if the owner has send the money for the repair etc.. the ship can leave your yard. If not, hold it back. All other can understand this! (for reputation)

can you get an OK from the owner for all your work in your yard and the money - thats the best. Drop the delivery ... the owner can find any other to do this, if you don't get the money for the fuel etc.. before you will start.

if the owner need the boat he will pay.

Gerhard

Hi,

I see you have had good warnings and advice here.

My question is where are you going to take this old girl for 5500 n.m.?

Unfortunately, I have been on the other end of this thread. Rarely do I deal with the owner of a yacht, it's usually the captain or the engineer. When payment is not made in a timely manner, it reflects on those I have been dealing with. A response that the "boss is not ready to pay" does not sit well and it becomes a very sour situation. I have dealt with many captains and there is nothing better than a good relationship between the owner and captain. I agree with those that have posted. If it doesn't feel right and the relationship is not there, tie up to the dock, and move on.

K1W1,
You caught that ay. Where can an Azimut go in 5500 miles from north Florida and what would be left of it. Since it would need to refuel ever day my estimate is some place in South America or the pacific northwest. In either case it's a trip for Kismet, not an Az. They go by Boat Express or a freighter unless you have no money invested and can put all risk and expense on the captain who can't afford to sue you in a foreign court.

Chris,
I don't think you overstated the situation. This boat belongs on the back of a ship for that trip. First, she can't do 5500 miles at trolling speed. She'll clog with carbon, and you'll go nuts. These boats are meant to be run at 80% to 90% of WOT(cruise speed). That means you'll have to follow the gulf coastline for fuel. Second, if this is your first trip through the canal you need help that's experienced with that trip (another captain). You'll be dealing with several governments and several locations where fuel quality is questionable at best. Third, you stand a very good chance of getting stuck in an area where it may take weeks to get replacement parts (I'll guess you've already experienced getting parts for an AZ in Stuart. Wait till you try in Panama or southern Mexico. Make sure your contract calls for pay during down time or practice your spanish). Fourth, the fuel capacity you quote is fairly standard for a boat like this. It's a big day cruiser, not an oceangoing yacht or a fishing boat. Fifth, your fuel burn will be what, about 130 gph at cruise speed. Has anyone computed what this trip will cost and compared it to the cost of shipping it. 5500nm :- 16kts (avg. spd)=344hrs x 130 gph= 44,720 gals. x $3.50 = $156,520.00 plus many, many expenses and your rate. She also has to lay up for at least one oil change enroute. That's ASSUMING that everything goes right. So, I ASSUME this owner is putting $200,000 CASH into your bank account before you leave the dock. Better still, have him on board for the trip, but get most of your fee up front because he'll probably jump ship after the first week.

A) Subs who have not been paid/paid in full more than likely have not, how to put this delicately, completed 100% of their contracted work [warning bells].

B) Were you on top of work-in-process and/or have you lifted up each floorboard, esp. in the engine room (trust me here), and eyeballed all the piping & fittings? No? [warning bells + red flashing lights].

C) With no survey, have you personally checked every bilge pump (plus the emergency system) and ascertained that the fire extinguishing system--tanks as well as actuation--is in proper working order? No? [abort-abort-abort].

The owner's financial situation will be long forgotten as a result of other concerns that arise if/when there occurs a Problem At Sea.

Have a safe trip, Chris.
Post some photos, willya?

Thought that I heard something recently about the Panama Canal being backed up with 2 to 3 week wait times in some cases. Might be worth checking it out.