The new Norwegian shipbuilding contract SHIP25 was launched on 9 October 2025. Developed by the Norwegian Shipowners’ Association and the Norwegian Shipbuilders – and endorsed by Norsk Industri – SHIP25 replaces SHIP 2000 which has been internationally recognised as a standard-form shipbuilding contract.
The new framework reflects a more complex shipbuilding landscape and aims to meet today’s need for clarity, flexibility and project control.
The structure of SHIP 2000 is largely maintained in SHIP25, with some adjustments. SHIP25 contains a few new clauses. Several new appendices have also been added. It also contains several opt-in provisions that the parties must determine whether to make applicable to their project or not. With regard to lay-out, the numbering in SHIP25 has been altered from roman to Arabic numbers.
New appendices for opt-ins regarding "Limitation of Liability for Design and Engineering" and "Progressive Title" have also been included as well as appendices for "Maker's List", "List of Buyer's Supplies" and "Form of Refund Guarantee".
New clauses on Compliance, Anti-bribery, Cyber Security, Export Controls and Sanctions have also been included. Thommessen has assisted the working group with drafting and quality assurance regarding the new cyber security clause.
Below is an overview of some of the main changes.
Project Management
SHIP25 puts increased focus on the project management between the parties. This is important as any successful shipbuilding project is dependent on close cooperation between the parties. The aim of the new provisions is stated to be to keep the project on track and bring issues to light at an early stage.
SHIP25 provides that the builder shall provide electronic drawings and preliminary and detailed building schedules which are to be approved by the buyer.
Some notification requirements have been added, adjusted and/or specified. As an example, pursuant to SHIP 2000, the Builder was to issue detailed building schedules within 30 days after the Date of Contract, while in SHIP25, preliminary schedules shall be issued within 30 days, and detailed schedules shall be issued no later than six months after the Date of Contract.
Just as under SHIP 2000, the buyer must provide approvals or comments within fixed deadlines. However, SHIP25 provides that the failure to provide such notices may result in the buyer becoming responsible for additional costs and time unnecessarily caused by the buyer's failure to notify.
A new subclause requires the builder to provide the buyer with monthly progress reports, which shall include updated status on; (i) construction progress, (ii) actual status compared to building schedule, (iii) agreed modifications, and (iv) status on deliveries from subcontractors and also photographs showing the progress of construction if relevant.
Change Orders
SHIP25 entitles the builder to charge the buyer for reasonable engineering time spent in assessing modifications or changes proposed by the buyer. This is new compared to SHIP 2000.
Pursuant to SHIP 2000, any adjustment of the contract price resulting from agreed changes and modifications was to be paid together with the last instalment at delivery. SHIP25 provides that part thereof (50% by default) is to be paid as an advance payment payable twenty days after the builder's request for payment in respect of the change order where the price of the change order exceeds an agreed amount (alternatively 0.25% of the original contract price). Where the price of the change order exceeds a further agreed amount (alternatively 1% of the original contract price) the buyer may require a separate refund guarantee to be issued before payment against paying the costs of the guarantee.
Allocation of Liability
The builder shall deliver the vessel free of defects at the agreed delivery time. In general, the builder is responsible for defects and delays caused by its subcontractors.
Delay by Subcontractors
SHIP25 introduces a new and separate provision for "Buyer's Elected Supplies". If a subcontractor fails to deliver any Buyer's Elected Supplies within the agreed time, the builder shall have a right to claim compensation from the buyer for any costs as well as permissible delay caused by the subcontractor's delay. If the subcontractor's delay exceeds 30 days, the builder may also proceed with the construction of the vessel without installation of the missing delivery from the subcontractor, and claim the costs for its later installation from the buyer.
It should be noted that Buyer's Elected Supplies is not the same as Buyer's Supplies. Buyer's Elected Supplies are any supply of the builder where the choice of subcontractor has been designated by the buyer and where the builder is unable to make alternative selections. However, the parties are not required to agree upon a list of Buyer's Elected Supplies. Parties should consider to include an agreed list of Buyer's Elected Supplies to ensure disputes do not arise as to what constitutes Buyer's Elected Supplies.
Design
In SHIP25, as under SHIP 2000, the builder by default assumes full responsibility for the vessel's design.
However, SHIP25 introduces a new appendix, which the parties may agree by opt-in, pursuant to which the builder's liability for defects, deficiencies or delays resulting from errors in the design documents shall be limited to the liability of the designer under the design agreement (which would normally be much lower than the builder's cap on liability in the shipbuilding agreement). This could be a welcome opt-in for the builder.
If this opt-in is chosen, the buyer shall be obliged to take delivery of the vessel without rectification of defects resulting from errors in design, unless the parties agree on modifications or changes.
Delay and Permissible Delay
In SHIP25 the default grace period before liquidated damages apply has been extended to 60 days, from 30 days in SHIP 2000. This means that the builder must pay liquidated damages up to a maximum of 120 days. After 180 days of delay the buyer has the option to terminate the contract. In terms of total accumulated delay (including force majeure but excluding other permissible delay) the buyer can now terminate after 360 days, an increase of nearly 100 days from the standard wording in SHIP 2000.
In connection with Permissible Delay, it has been added that the builder shall be entitled to compensation for increased finance costs and/or additional costs proven to have been caused by the buyer's non-fulfilment of its obligations.
Price and Payment
As an opt-in, SHIP25 provides a clause for index regulation of the purchase price. If applied, the parties shall agree on a threshold linked to a reference index, and if inflation between contract date and delivery date exceeds this threshold, the purchase price shall be adjusted accordingly.
As another opt-in, SHIP25 introduces a clause for budget pricing of components (what is often referred to as "basis prices"). If applied, the contract price agreed in the contract for such components shall be adjusted in accordance with the actual price of such component (when determined during the construction process), with an agreed markup.
Progressive Title
In SHIP25, as under SHIP 2000, by default the builder retains ownership of the vessel until delivery, with the buyer making pre-delivery instalments against refund guarantees. As an opt-in, the parties may agree that the buyer acquires progressive title as construction advances as set out in an appendix. This could remove the need for refund guarantees
This option should only be used if progressive title can be registered in the relevant jurisdiction. If progressive title cannot be registered then this opt-in may not give sufficient protection against the builder's bankruptcy estate and/or mortgagees.
Guarantees
SHIP25 includes an appendix in which the parties are to include a standard form of refund guarantee. If no standard form has been agreed the contract sets out requirements as to the contents and effect of the refund guarantee. This includes, amongst other things, that the builder must ensure that the refund guarantees remain valid until the actual delivery of the vessel, even when there are delays. If the builder does not renew a guarantee within 45 days of its expiry, the buyer may terminate the contract and call on all refund guarantees.
There is also a new provision in SHIP25 putting an obligation on the buyer to keep the builder informed of any material changes in the buyer's financial arrangements or available funds. If the buyer is unable to demonstrate that it has the necessary financing, the builder may require that the buyer provides a bank guarantee as security for its payment obligation.
Compliance, Anti-bribery, Cyber Security, Export Control and Sanctions
New clauses have been included on sanctions/export control, anti-bribery/corruption and HSE/human rights to ensure that both parties comply with applicable laws, in certain circumstances giving the non-defaulting party a right to terminate.
In terms of cyber security, provisions have been included to ensure alignment with new regulatory requirements such as the EU NIS2 Directive. These clauses are also aimed at ensuring that the industry is better prepared for today's and tomorrow’s cyber threats and regulatory requirements, as there have been significant developments in this area since the approval of SHIP 2000.
Arbitration
SHIP25 retains arbitration as the method for resolving conflicts, but adopts the Nordic Offshore and Maritime Association's (NOMA) Arbitration Rules as the default. If the amount of the claim falls short of NOK 5 000 000 or such other sum agreed by the parties, the dispute is to be conducted under the NOMA Fast Track Arbitration Rules.
Summary
SHIP 2000 has become widely used in the Nordics and beyond. SHIP25 builds on this foundation, and the revision responds to developments in the industry since then.
The new contract is more comprehensive and with several opt-ins and alternatives to consider. Industry participants should take note, and be prepared to negotiate on the basis of the revised standard form, and to perform contract management of projects governed by the updated legal framework.
Thommessen remains ready to assist its clients with shipbuilding projects, from the negotiation stages to assistance with dispute resolution matters.
