Contracts:
There are several basic contracts and each captain selects the contract that best suits the circumstances aboard his particular yacht. Four of the most popular are as follows:
1. The Bare Boat Contract with a Crew Employment Agreement is commonly used in US and Bahamian waters, and is plus all expenses. The charter fee only includes the yacht and crew salaries. The term plus all expenses means that taxes and variables such as dockage, food, drinks, fuel, diving and communications etc., are not included in the charter fee. A good guideline for estimating expenses is 20 to 25% of the charter fee for sailing yachts and 35% for motor yachts or areas where provisioning is more expensive. This type of contract allows maximum flexibility in the overall cost of the charter.
2. The All-inclusive Contract is commonly used in the Caribbean, New England and South Pacific areas. It includes the yacht, crew salaries and all expenses except cruising taxes and communications. This type of contract is very simple and makes budget planning easier.
3. The Down Island Contract is often used in the lower Caribbean and is the same as All-inclusive except it may not include some variables such as bar, diving and dockage.
4. The Mediterranean Yacht Brokers Association Contract is exclusively used in the Mediterranean area and includes all expenses except cruising taxes.
Note: None of the above contracts include the customary crew gratuity for service and hospitality rendered. (See crew gratuity)
