JH143 Shipyard and Project Risk Assessment

Ship repairing is an inherently hazardous operation, encompassing various risks such as hot work in tanks that previously contained flammable or toxic substances, exposure to inflammable liquids, paint, cleaning solvents, and industrial gases, electrical hazards from welding and electrically operated equipment in wet environments, lifting and transporting heavy loads, working on scaffolding, inadequate ventilation or lighting, liquid transfers on board, x-ray work, slip and trip hazards, airborne contamination from blasting and painting, and more. These factors collectively create an environment with continuous potential risks.

The surge in shipbuilding activities led to a series of major claims that impacted insurers, especially in the period from late 2002 to early 2004. During this time, the insurance market faced substantial claims totaling approximately USD 740 million, while the worldwide premium for all new-buildings was estimated at around USD 125 million.

Recognizing the need for corrective measures, insurers responded to these losses, as the relatively small builder's risks insurance market could not sustain such significant financial hits. Notably, the fire incident on board the DIAMOND PRINCESS emphasized the importance of yard safety, security, and loss prevention management, prompting a reevaluation of methods and organizational structures.

The introduction of a standardized form aimed to ensure shipyards meet specific safety standards. This form includes a review and testing of safety management, quality assurance, and quality control systems and procedures at shipyards. The scope of the form encompasses, but is not limited to: