Excessive Warranty Repair Costs from Post-Delivery Defects

$100,000-$300,000 per warranty claim forfeiture; offshore vessels: $1,000-$5,000/day downtime during warranty repair delays • $100,000-$600,000 per missed warranty claim from defects not properly documented or submitted in time; recurring defects across multiple vessels not identified due to lack of aggregate defect tracking; systemic design issues not escalated early enough for builder correction in future builds • $100,000–$500,000 per vessel (lost warranty claims due to poor documentation, disputed claims rejected by shipyard, off-hire costs during dispute resolution)

Cost Accountant receives repair invoices via email; manually reviews against warranty claim status; some costs recovered from builder (if claim accepted), others written off to OpEx; no real-time cost allocation; manual reconciliation 2-3 days per month • Cruise Line fleet management office manually coordinates warranty notices via email; crew reports defects, shore office converts to warranty claims • Defect logged in local database or spreadsheet; QA team communicates defect to Procurement/Operations via email; no standardized defect-to-claim workflow; follow-up on repairs tracked via email and informal meetings