How to Select a Marine Surveyor
R. L. Frenzel NAMS-CMS, SAMS-AMS
J. C. Stormer, Jr. NAMS-CMS(Ret), SAMS-AMS(Ret)
Dixieland Marine Surveyors & Consultants
http://www.dixielandmarine.com
What is a Marine Survey?
The word “survey” means to look at critically or inspect. There are many specialties in marine surveying, such as commercial vessels, cargo, engine, etc. The category we are interested in here is usually referred to as “yacht and small craft.”
As a boat buyer needing a pre-purchase survey, or an owner getting a survey for insurance purposes, you will need what is commonly called a C&V or Condition and Valuation survey. To use a home buying analogy, the surveyor is like the combination of a home inspector (condition) and an appraiser (value).
The final survey product will include the physical inspection and verbal reporting to you, as well as a written survey report. The written survey report will contain a description of the scope of the survey; a detailed description of the vessel and any deficiencies; recommendations for remediating deficiencies; and an estimated Current Market Value and Replacement Value based on current research.
The surveyor works for you, the client, and has a responsibility to impartially and accurately represent the condition and value of the vessel. Although there may be some temptation to find a surveyor who may overlook some faults or inflate/deflate values, it is best to find a surveyor who will present accurate unbiased observations upon which you, your insurers and your lender can make sound decisions.
Certification and Accreditation.
At this time, there are no state or federal licensing, certification or sanctioning of marine surveyors.
However, there are two professional organizations, the National Association of Marine Surveyors (NAMS) and the Society of Accredited Marine Surveyors (SAMS), that have rigorous testing, experience and continuing education requirements for certified and accredited surveyors. Generally, NAMS-CMS or SAMS-AMS designations are a good indicator of professional standing. In order to be classified as a “Professional Organization,” you must have Continuing Education and Ethics Programs. SAMS and NAMS are the only two professional marine surveyor organizations in North America that meet these requirements. You will find other organizations with impressive sounding acronyms, but they have no requirements for membership and are virtually meaningless.
There are a few Marine Surveyors who are excellent and well experienced, yet chose not to belong to NAMS or SAMS. Some surveyor “apprentices” or “associates,” working toward the NAMS-CMS or AMS designations, may also have extensive experience in the boating industry and would be good choices as surveyors. In both cases, it is necessary to verify the surveyor’s experience and qualifications.
Unfortunately, certification or accreditation in any field does not guarantee conscientious, competent, professional performance. So, it is necessary to investigate further.
Finding a Surveyor.
Often, recommendations from other boat owners, yard managers, and people in the boating industry can be useful. But, you have to consider the perspective of those making the recommendation. For example, a broker who has a favorite Marine Surveyor that “accidently” overlooks some defects and writes in the value that the broker wants to sell the vessel for. But BUYER BEWARE.
An honest broker or ethical seller probably will not recommend a specific surveyor for a deal, in which they are involved. However, any recommendation or “short list” will probably reflect their concern for a trouble-free sale rather than the thoroughness of the survey.
A local surveyor you already know should be a good source for recommending a surveyor in another location.
Interviewing a Surveyor.
The most important step is to contact the surveyor and collect information directly, either by phone or e-mail. First, take a good look at any web site, brochures or articles a surveyor may have.
Perhaps the most important question is about the surveyor’s experience with the specific type of boat. There are so many boat builders and models that even an experienced surveyor may not have surveyed a specific model. But, you should expect your surveyor to have had significant experience with the size and type of boat being surveyed, (i.e., a sail, trawler, performance, fishing, wood, steel or fiberglass, etc.). Experience in other types of survey work – particularly damage surveys – will be a plus, as well as experience in the previous building and/or repair of vessels. A surveyor whose income depends largely on referrals from local brokers may be subtly influenced by this dependence.
A surveyor should let you see a “sample” survey report. These days, it will probably be in the form of a file sent electronically. The sample report should be well written, but make sure you look beyond a slick format. There is certain standard information and “fine print” that is necessary. Disclaimers are not!! There should also be specific descriptions of non-standard features, deficiencies, and clear recommendations. Consider to what degree the report is padded with “boilerplate” generalities, or only a “checklist” or inventory. Also, check to see if the survey follows Universal Practice of Professional Appraisal Practices (USPAP) guidelines when determining value. This is becoming very important to lenders and underwriters.
It’s also important for a surveyor to have good communication skills. To get the most out of a survey, you should be present for the inspection. While interviewing the surveyor, try to assess how well they communicate with you. How willing are they to answer your questions? Are the surveyor’s responses clear and to the point?
Price.
“How much do you charge?” is often the first question we are asked. But price should be far from the determining factor when selecting a surveyor. Prices will vary, depending on the type and age of boat, the location, and the circumstances of the survey, i.e., if there be an underway trial, a haul out, etc. Keep in mind that the cost of the survey will be a relatively small fraction of the purchase price or other costs of ownership. For comparison, yards and repair technicians now charge $75 to over $100 per hour. Most surveys will involve at least a day’s work or more when you include the market research and report preparation. A “cut-rate” surveyor will most likely also “cut corners” on the work.
Conclusion.
As seasoned surveyors, we have seen many preventable losses occur – losses that could have been avoided. Choosing the wrong surveyor can be a costly proposition resulting in expensive repairs, loss of enjoyment, injury or worse to you and your loved ones. Choosing the right surveyor helps to ensure you, your family, guests and the boating community remain safe, and helps you to enjoy your boat to its fullest.