[PCW] Contracts

[Pat Reischmann]

When boats are built to order, I don't know any builder that will do it
without progress payments. At Manta it has been in 1/3 installments, and I
believe Endeavour does it the same way. With a Semi-production boat like the
Manta the bottom line is defined, however in custom projects it is usually
"time and material" which leaves the bottom line open. Is there risk? Yes if
the builder goes out of business before completion, which has happened in this
industry as well as others. I am completing a custom 50 ft sailing catamaran
for an owner right now that was not finished because the builder went out of
business before completion. This owner looked at everything available to him
on the retail market, and elected to pay to finish it and in the end will get
the boat he wanted and probably for no more cost than a retail replacement.