From Contract to Delivery: Key Events, Stakeholder Roles, and Cyber Compliance in the Shipbuilding Process
A practical breakdown of 12 key milestones — and what Class, Owner, Shipyard, and Supplier must deliver at each stage, including IACS UR E26/E27 cybersecurity requirements
A modern newbuild project involves four key stakeholders — Classification Society, Ship Owner, Shipyard, and Supplier — each with clearly defined responsibilities at every milestone. This article maps the 12 key events from Contract Signing to Delivery, incorporating the requirements of IACS UR E10, E22, E26, and E27 and Cyber Notation into a structured reference guide. In actual projects, additional testing and certification may be required depending on the specific demands of the class and owner.
Key Terms & Abbreviations
CS — Contract Signing
BD — Basic Design
DD — Detail Design
EO — Equipment Ordering
SC / BC / HE / LA — Steel Cutting / Block Construction / Hull Erection / Launching
HT / ST — Harbor Trial / Sea Trial
OI / DL — Owner's Inspection / Delivery
FAT — Factory Acceptance Test
SAT — Site Acceptance Test
TA — Type Approval (Class certification)
CBS — Computer-Based System (IACS UR E27)
IACS UR E26/E27 — Cyber Resilience of Ships / Onboard Systems
Section Ⅰ — Overview: Four Stakeholders, One Ship
Roles of Class · Owner · Shipyard · Supplier across the full build lifecycle
📄 Contract
& Design
6–15 mo
📦 Equipment
Procurement
6–12 mo
🔧 Construction
& Assembly
12–24 mo
⚓ Trials &
Delivery
3–6 mo
🏛 Classification Society (Class)
Design approval · Equipment certification · Construction inspection · Final certificate issuance
Key bodies: ABS, DNV, LR, KR, BV, ClassNK
🚢 Ship Owner
Specification review & approval · Contract execution · Performance verification · Vessel acceptance and operation
⚙️ Shipyard
Design & production · Equipment procurement & installation · Quality control · Sea trials & delivery
🔩 Supplier / Equipment Maker
Equipment design & manufacturing · Quality assurance & certification · Installation support & technical assistance
Section Ⅱ — Phase 1: Contract & Design
CS · BD · DD · Estimated duration: 12–18 months
CS
Contract Signing
⏱ 1–3 months
The formal shipbuilding contract is concluded between the owner and the shipyard. Key specifications, delivery schedule, class notation (including cyber notation where required), and payment milestones are established.
ClassContract review & approval; notation requirements confirmed
OwnerNegotiate specifications & class notation scope
ShipyardContract execution & schedule planning
SupplierKey equipment specification discussions begin
BD
Basic Design
⏱ 3–6 months
Hull form definition, major system specifications, and overall vessel architecture are established. Under IACS UR E27, CBS identification and initial security zone / conduit planning should commence at this stage to ensure topology documentation can be prepared in time for class submission.
ClassBasic design review; UR E26/E27 applicability confirmed for CBS systems
OwnerSpecification approval; cyber notation requirements confirmed
ShipyardDesign development; begin CBS identification per E27
SupplierInitial CBS asset inventory preparation begins
DD
Detail Design
⏱ 3–6 months
Production drawings and manufacturing processes are finalized. Topology diagrams (E27 sec.3.1.2) and security capability descriptions (E27 sec.3.1.3) for CBS equipment must be submitted to class for approval at or before this stage.
ClassDetail design approval; E27 topology & security doc review
OwnerDesign review & approval; confirm cyber compliance scope
ShipyardProduction design; coordinate E27 doc submissions
SupplierSubmit topology diagrams & security capability descriptions
Section Ⅲ — Phase 2: Equipment Procurement & IACS UR E27 Supply Chain
EO · Estimated duration: 6–12 months
EO
Equipment Ordering
⏱ 6–12 months
Major equipment — propulsion systems, navigation electronics, automation CBS, and safety systems — are ordered. All CBS suppliers must begin preparing the 10 required documentation packages per IACS UR E27 sec.3.1. Class quality inspections commence on critical items.
ClassEquipment approval; CBS type approval (TA) process initiated
OwnerEquipment spec & schedule verification
ShipyardEquipment ordering & delivery schedule management
SupplierProduction & QA; prepare all E27 sec.3.1 documents
📋 IACS UR E27 — 10 Required Supplier Documents (sec.3.1)
3.1.1 CBS Asset Inventory [Approve]
3.1.2 Topology Diagrams [Approve]
3.1.3 Description of Security Capabilities [Approve]
3.1.4 Test Procedure for Security Capabilities [Approve]
3.1.5 Security Configuration Guidelines [Info]
3.1.6 Secure Development Lifecycle (SDLC) [Approve]
3.1.7 Plans for Maintenance & Verification [Info]
3.1.8 Incident Response & Recovery Info [Info]
3.1.9 Management of Change Plan (E22) [Info]
3.1.10 Test Reports [Info]
Section Ⅳ — Phase 3: Construction & Assembly
SC · BC · HE · LA · Estimated duration: 12–24 months
SC
Steel Cutting
⏱ 3–6 months after contract
The official start of hull fabrication. Steel Cutting is one of the key contractual milestones, often triggering an installment payment. Class surveyor attendance is required to certify steel material quality.
ClassSurveyor attendance; steel material certification & cutting inspection
OwnerKey progress confirmation; payment milestone triggered
ShipyardSteel cutting commencement; block assembly starts
SupplierSteel supply & quality certification for structural components
BC
Block Construction
⏱ 6–12 months
The hull is divided into sections and fabricated as individual blocks in parallel. Equipment outfitting (piping, cabling, machinery) is often pre-installed in blocks before erection — including CBS hardware and network cabling.
ClassPeriodic block construction inspections; weld quality surveys
OwnerConstruction progress monitoring
ShipyardBlock fabrication & quality management; pre-outfitting
SupplierEquipment delivery to yard; pre-installation support
HE
Hull Erection
⏱ 3–6 months
Individual blocks are joined to form the complete hull. Structural integrity inspections, weld testing (UT/RT), and watertight testing are conducted. System outfitting continues in parallel.
ClassWelding & structural inspections; regulatory compliance verification
OwnerConstruction progress review
ShipyardHull assembly; painting; system installation continues
SupplierEquipment delivery & onboard installation support
LA
Launching
⏱ 3–6 months
The completed hull is floated out of the dry dock. Class pre-launch inspections confirm structural and watertight integrity. Outfitting, CBS installation, and system integration continue dockside after launching.
ClassPre-launch inspection & approval; stability verification
OwnerLaunching ceremony attendance & progress review
ShipyardLaunching operation & stability confirmation
SupplierAdditional equipment deliveries & installation
Section Ⅴ — Phase 4: Trials, Inspection & Delivery
HT · ST · OI · DL · Estimated duration: 3–6 months
FAT — Factory Acceptance Test
Equipment tested at the supplier's factory before shipment. Verifies functional requirements under controlled conditions. Class surveyor may attend for critical CBS.
SAT — Site Acceptance Test
System tested after installation on the vessel. Confirms correct integration with other onboard systems. Required for navigation, propulsion, and safety-critical CBS.
TA — Type Approval
Class certification of a product design — confirms compliance with applicable rules (including UR E27 security capabilities). Approved once; valid for repeated use on multiple vessels.
HT
Harbor Trial
FAT · SAT
⏱ 1–2 months
All installed equipment and systems are tested at berth before departure. This includes propulsion, power generation, navigation electronics, fire safety, and all CBS systems. SAT for cyber-relevant systems verifies correct integration into the vessel network and confirms E27 security capabilities are operational.
ClassSurvey of major machinery & safety systems; CBS security capability verification
OwnerPerformance testing monitoring; punch list compilation
ShipyardSystem function verification & defect rectification
SupplierEquipment function confirmation & technical support
ST
Sea Trial
SAT
⏱ 1–2 months
The vessel proceeds to sea for full-performance verification — speed trials, maneuverability, stability, and endurance testing. Navigation systems (including ECDIS, AIS, GMDSS) are tested under operational conditions. Cyber-relevant SAT items are re-verified in a live operational environment.
ClassNavigation & safety equipment testing; speed & stability survey
OwnerPerformance review & feedback; acceptance criteria check
ShipyardSea trial execution; defect identification & correction
SupplierTechnical support; problem resolution at sea
OI
Owner's Inspection
TA · FAT
⏱ 1–2 months
The owner's technical team conducts a final comprehensive inspection of all spaces, systems, and documentation. Class issues the final statutory certificates and class notation. All IACS UR E27 documentation packages (sec.3.1.1–3.1.10) must be complete and accepted by class before delivery can proceed.
ClassFinal survey; certificate issuance; Cyber Notation confirmed
OwnerFinal inspection & acceptance; punch list close-out
ShipyardRectification of outstanding items; handover preparation
SupplierFinal equipment checks; as-built documentation submission
DL
Delivery
⏱ Final stage
The vessel is formally handed over to the owner. All class certificates, statutory certificates, and E27 documentation packages are delivered. Supplier post-delivery obligations (maintenance plans, change management per E22, incident response support) commence from this date.
ClassClass certification complete; vessel registration confirmed
OwnerVessel acceptance; operational team takes over
ShipyardFinal handover; warranty period begins
SupplierFinal delivery complete; post-delivery support period begins
⚓ Captain's Take
A shipbuilding project is a multi-year, multi-stakeholder orchestration where timing is everything. Understanding which deliverable belongs to whom — and when — is the difference between a smooth delivery and a delayed handover with certificate gaps. IACS UR E26 and E27 have added a new layer: cyber documentation must now be woven into the build process from Basic Design, not bolted on at Sea Trial.
✅
Class involvement is not just inspection — it is a continuous process from Basic Design approval through final certificate issuance. Any gap in documentation at OI delays delivery for all parties.
✅
Suppliers who enter the Equipment Ordering phase without a plan for their 10 IACS UR E27 documentation packages will find themselves scrambling at HT and OI — when class approval delays are most costly.
✅
FAT, SAT, and TA are three distinct test gates — each with a different scope and audience. Understanding which applies to which system prevents duplication of effort and ensures no approval step is missed.
✅
Delivery is not the end — it is the start of post-delivery obligations under E22 (change management) and E27 (maintenance plans, incident response support). Suppliers who understand this become long-term partners, not one-time vendors.
#Shipbuilding
#IACS
#URE27
#URE26
#NewBuild
#ClassCompliance
#SeaTrial
#MaritimeCybersecurity
#CBS
#Maritime4.0
📚 Related Standards & References
Captain Ethan · In Sung Lee
Maritime 4.0 · AI, Data & Cyber Security
Collaborator: Lew, Julius, Jin, Morgan, Yeon
shippauljobs.com
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