Both custom and production designs come about in a similar manner.
The client initially contacts the designer by phone, fax or e-mail describing what they are looking for. The designer will usually respond with correspondence inviting the client to personally visit the office or submit details by mail. After more details are known, the designer will quote a fee for a bid package or initial design package. This is usually done on a simple hourly basis since at this stage of the design process, it is very difficult to estimate how many changes will be made until the ultimate design is arrived at. This stage of the design is usually handled with a simple letter of agreement. No contractual obligation between the client and designer will exist until the client decides to proceed with the final design. The client usually presents the designer with a collection of sketches, notes, and clippings pertaining to the boat he desires. Taking all this in, the designer will prepare an initial profile (showing how the boat appears from the outside) and arrangement drawing (showing the interior layout of all decks). These drawings usually get "massaged" - going back and forth between the designer and client until a plan suitable to the client is arrived at. Typically, a preliminary design package costs between $10,000 and $30,000 depending on the type and size of the vessel. The preliminary design package consists of an outboard profile drawing, an arrangement drawing, preliminary construction drawings, and a complete, detailed set of specifications which call out every component and piece of equipment on the vessel, including equipment vendors and model numbers. For custom yachts, preliminary design packages are submitted to suitable builders (typically four or five) for quotations. These quotes are usually received in three or four weeks. The designer and client usually visit the top candidates before a decision is made. Once the decision is made to proceed, the client then enters into a fixed priced design contract with the designer for the final design. Typically, design fees range from 3 to 8% of the construction costs in the United States, depending on size and complexity.
Final design fees are arrived at by listing all tasks involved and assigning hours to each, based on past experience. Custom vessels are usually paid for by:
1) irrevocable letters of credit or
2) progress payments
For production boats, the builder will take the preliminary design package and analyze it for production suitability and cost. Over the years, Tom Fexas Yacht Design has been involved in hundreds of production projects all over the world. We have racked-up an impressive number of "firsts" in the industry including: The first 100% foam core production boat, the first integral fuel and water tanks, the first underwater exhaust on a production sportfisherman, cut away transoms for enhanced performance when backing down at high speeds, and one of the first large production fiberglass motor yachts (92 feet) ever produced. Hundreds of our production boats/yachts are in service in countries all around the world in Mexico, South America, Australia, Asia, the Mediterranean, Canada and, of course, the United States.
Custom and production designs are typically monitored at the construction site by the designer at "milestone events" of the project. On larger custom yachts, a project manager may be retained and the captain might be on hand for the last half of the construction process. Otherwise, local surveyors (usually from a major classification society such as ABS) can be on hand for weekly audits.