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Disputed liabilities

Disputed shipyard and repair invoices: how owners can respond

How to review a repair yard’s invoice, and negotiate the items that are not supported.

Key takeaways

  • Compare the repair invoice line by line against the quotation, work orders and completion reports.
  • Extra work should be supported by approved variation orders.
  • Delay by the yard may give rise to a counterclaim or set-off, depending on the contract.
  • Most yard contracts contain short notice periods and limitation clauses.

Drydock and repair invoices frequently exceed the original quotation. Some increases are justified by extra work; others are not. A disciplined review usually narrows the dispute considerably.

Line-by-line review

  • Compare every item against the quotation and the agreed specification.
  • Check that additional work is supported by approved work orders or variation orders.
  • Match quantities (steel, paint, hours) against completion reports and the superintendent’s records.

Delay and quality

If the yard delivered late or the work was defective, the contract may provide liquidated damages, a guarantee period or rights of set-off. These can significantly reduce the amount payable, but they must be raised properly and in time.

Watch the contract terms

Yard contracts commonly include short notice periods for disputes, limitation of liability and specific dispute resolution clauses. Read them before replying.

Negotiating a settlement

Pay or confirm the undisputed items, set out the disputed items with evidence, and propose a settlement. Yards usually prefer a commercial resolution to a lengthy dispute, especially with repeat customers.

Quick answers

How do I dispute a shipyard invoice?

Compare each item with the quotation, approved work orders and completion reports, and raise disputed items in writing within the contract’s notice period.

Can I deduct for yard delay?

Possibly, if the contract provides liquidated damages or the delay is a breach; check the contract carefully first.

Need help with a specific matter? Send us the documents for a free, confidential review, or message us on WhatsApp at any hour on +44 7429 535705. Start a case review.

This guide is general information about the law of England and Wales as at October 2026. It is not legal advice and may not cover your situation. Atlas Claims is not a law firm; for advice on your legal rights or on litigation, consult a qualified solicitor.

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