A TWEED Heads boat builder has been ordered to pay more than $133,000 in damages after it failed to build a vessel in time for a customer.

In a ruling handed down on Tuesday at the Townsville District Court, Judge Kiernan Dorney found Conway Savis, Alison Savis and SPJ Nominees Pty Ltd were entitled to damages because a boat they ordered from Black Watch Sports Fishing Boats was not completed by the contracted date.

In October 2008, the three plaintiffs, including Mrs and Dr Savis from Townsville, entered an agreement with Tweed Heads-based Black Watch to have their vessel built by March 15, 2009.

It was noted that, despite the delivery date, no parties expected the boat to be finished before July/August 2009.

Trouble arose when the defendant did not keep up the construction schedule, prompting the plaintiffs to send the company a default notice on August 26 2009.

Despite the notice, Judge Dorney found Black Watch made no attempt to catch up with construction before the end of the default period.

After the inaction, Black Watch was sent a notice of termination on September 11, 2009.

The plaintiffs took possession of the partially constructed vessel and sold pieces of it before offers from Black Watch to negotiate a new completion date or find a new buyer.

The plaintiffs took Black Watch to court to claim damages incurred when they had to sell the vessel parts at below cost or market value and for travel, marina and engine removal expenses.

Judge Dorney found while it was "unreasonable" that the plaintiffs did not negotiate further with Black Watch about completing the vessel or selling it as is, he did rule that the plaintiffs were entitled to costs associated with the engine removal, storage, losses in the sale of electrical equipment and the loss that occurred when the plaintiffs finally sold the partially completed boat.

"As I have already found, the slow progress which led to termination can justify removing the vessel to a place over which the plaintiffs exercised control to the exclusion of Black Water," she said.

Judge Dorney ordered $133,979.35 in damages be paid to the plaintiffs.