Managing Compliance Risks in Shipbuilding
Projects – Contractual and Practical Implications
(prepared by Marek Czernis & Co. Law Office)
1. Introduction
The global shipbuilding industry faces increasing compliance
requirements arising from international sanctions, ESG obligations, and due
diligence regulations.
The EU Corporate Sustainability Due Diligence Directive (CSDDD, 2025) and
the OECD Guidelines for Responsible Business Conduct (2025) have
direct implications for shipbuilding contracts, financing structures and
supplier networks.
2. Main compliance
risks in shipbuilding
- Sanctions
and export control compliance – continuous monitoring of suppliers
and sub-contractors against sanction lists (EU, OFAC, OFSI).
- Due
diligence and supply chain transparency – ensuring traceability of
materials and responsible sourcing under CSDDD obligations.
- Environmental,
Social and Governance (ESG) – mandatory sustainability reporting and
environmental performance standards for yards and owners.
- Anti-Bribery
and AML – strict rules on anti-corruption and financial transparency
for projects financed by banks or leasing institutions.
3. Contractual framework
Modern shipbuilding contracts, including NEWBUILDCON and SAJ
Form, incorporate comprehensive compliance provisions such as:
- Sanctions
and Anti-Bribery Clauses;
- ESG
and Human Rights Clauses;
- Audit
Rights and Termination for Breach;
- Extended
warranties linked to sustainability compliance.
4. Practical recommendations
1️ Establish a documented Compliance Management System covering
monitoring, training and audit procedures.
2️ Conduct Know Your Counterparty (KYC) checks for all contractual
partners and suppliers.
3️ Review and update contractual clauses in line with CSDDD, OECD and BIMCO
compliance frameworks.
4️ Implement ESG and sanctions clauses using BIMCO standard wordings.
5️ Provide compliance training to management and project staff
involved in contracting and procurement.
5. Conclusion
Effective compliance management is now a key determinant of
trustworthiness and risk control in shipbuilding projects.
In the view of Marek Czernis & Co. Law Office, alignment with
international standards and contractual transparency will be essential to
maintain competitiveness and financing eligibility in the evolving regulatory
landscape of 2026–2030.