A condition and valuation survey records the vessel’s present state and gives a supported market-value opinion in USD. Banks use it before financing, underwriters before binding or renewing cover, and owners before a lay-up or a fleet transfer. It is an ownership document, not a buying decision.
Buyers commission pre-purchase surveys. Institutions commission condition and valuation surveys. The inspection overlaps, but what the reader needs is different: a bank wants a defensible number and a clear statement of what would erode it, and an underwriter wants to know what will cause the next claim.
We write those reports for both audiences, in English, with the valuation reasoning shown rather than asserted.
When a condition and valuation survey is the right instrument
| Trigger | Who asks for it | What the report must carry |
|---|---|---|
| Vessel financing or refinancing | Bank or leasing company | Market value and forced-sale value, ownership and registration check, encumbrance observations, condition grading, remaining economic life opinion |
| Binding or renewing hull cover | Underwriter or broker | Condition grading, defect list by urgency, firefighting and LSA inventory, recommendations with deadlines |
| Insurance renewal on an older vessel | Underwriter | Comparison against the previous survey, evidence that prior recommendations were closed out |
| Lay-up or seasonal stand-down | Owner or underwriter | Lay-up condition, mooring and watch arrangements, dehumidification, machinery preservation |
| Warranty survey before a heavy-lift or tow | Underwriter or warranty surveyor | Suitability, securing arrangements, weather criteria, approval or conditional approval |
| Fleet transfer or partnership entry | Owner or investor | Uniform condition grading across vessels so assets are comparable |
How we arrive at a value
A valuation opinion is only as good as its method, so we state the method. Three approaches are used and the report says which carried the weight and why:
- Comparable sales. Recent achieved prices for similar vessels of similar age and specification in the same or a comparable market. Strongest for production yachts and standard workboats; weakest for one-off traditional hulls.
- Depreciated replacement cost. Current build cost for an equivalent vessel, less depreciation for age, condition and obsolescence. This is usually the primary method for a traditional phinisi, an LCT or a purpose-built workboat where there is no comparable market.
- Income capitalisation. Where the vessel earns — a charter liveaboard, a tug on a long-term contract — sustainable net earnings can support a value. Used as a cross-check, and only where contracts and running costs are actually shown to us.
We report market value and, where the client asks, a forced-sale value. Both are dated, both state the assumed condition, and both state what was not inspected. A valuation that hides its assumptions is worthless to a credit committee.
Condition grading we use
| Grade | Meaning | Typical consequence |
|---|---|---|
| A — Good | Well maintained, no structural concern, systems function | No conditions attached |
| B — Fair | Serviceable with normal wear, minor defects listed | Recommendations with a 6–12 month horizon |
| C — Poor | Defects affecting safety, watertight integrity or reliability | Recommendations before cover incepts or before next voyage |
| D — Unfit | Vessel should not proceed to sea in present condition | Immediate rectification and re-inspection |
What we check that a pre-purchase survey often skips
Ownership-level checks
- Registration, tonnage and flag documents against the physical vessel — hull identification, engine serial numbers, name and port of registry markings.
- Evidence that previous survey recommendations were actually closed out, with dated photographs.
- Planned maintenance and running-hour records, and whether they are credible against observed wear.
- Crew certification and manning against the vessel’s trading pattern, where relevant to cover.
- Lay-up history — a vessel that sat idle for eighteen months in a tropical estuary carries risks that a vessel in continuous service does not.
- Prior damage and repair, including whether repairs were carried out to a recognised standard.
Ask a surveyor: my bank wants a valuation acceptable for financing
Send us the bank’s own requirement letter first. Lenders differ on three points that change the engagement: whether they need forced-sale value alongside market value, whether the report must be addressed to the bank rather than to you, and how recent it must be at drawdown — usually within three to six months.
We then confirm the attendance, the method we expect to lead with, and the fee in USD. On delivery the bank receives a report that shows working: comparables listed with their sources and dates, depreciation reasoning stated, the condition grade that supports the number, and an explicit list of limitations. Credit committees reject valuations for being unsupported far more often than for being wrong.
Frequently asked questions
Is a marine survey mandatory for insurance in Indonesia?
Not by statute, but underwriters routinely require a condition survey for vessels above a certain age or value, and almost always on renewal after a claim. Where cover is placed abroad the survey is effectively mandatory.
What is the difference between market value and forced-sale value?
Market value assumes a willing buyer, a willing seller and a reasonable marketing period. Forced-sale value assumes a compressed timescale, usually a distressed or enforcement context, and is materially lower. Banks generally want both.
How long does a condition and valuation survey take?
Attendance is typically one day for vessels under 25 m and one to two days above. Reports run five to ten working days because the valuation research is done after attendance.
Do you value traditional phinisi and wooden vessels?
Yes, normally on a depreciated replacement cost basis because comparable-sale evidence is thin. See phinisi and wooden-boat surveys for how the inspection differs.
Can you re-inspect to close out recommendations?
Yes. A close-out attendance is shorter and lower in cost than a full survey, and produces a dated addendum the underwriter can attach to the original report.
Will the report be accepted by an overseas underwriter?
It is written for that audience: English, photographic evidence, measured data where it exists, and recommendations with deadlines. We cannot bind any underwriter, and we say so in the report.
Do you carry out warranty surveys for towage and heavy lift?
Yes, as a distinct engagement with its own scope and weather criteria. Ask for it at the brief stage — it is not part of a standard condition survey.
Commission a condition and valuation survey
Send the vessel details, the port where she lies and your target date. We reply with surveyor availability, a written scope and a fee band before anyone boards.
WhatsApp +628113823875 sales@komodoluxury.com
Yacht & leisure desk · fees quoted in USD · report issued in English