An improved floating circular hull construction arrangement. The hull is divided into sections by watertight flats. The flats are stiffened with angles or bulb tees curved to form concentric circles that are in turn supported by the radial girders spaced around the flats and spanning between the inner and outer-shells. In each section, longitudinal girders spaced radially around the inside of the outer-shell terminate at the flats and attach to the flats and do not penetrate the flats. The longitudinal girders are attached to flats aligned with the locations of the radial girders that extend across the flats to the inner and outer shells. A panel stiffening arrangement on the inner circumference of the outer shell is attached to the outer shell and the longitudinal girders. Longitudinal girders spaced around the outer circumference of the inner shell extend along the length of the inner shell and are attached to the radial girders. With the inner and outer longitudinal girders connected to the radial girders, moment resisting frames are created that are arranged radially in each compartment. These frames stiffen the individual girders as well as balance the differential axial loadings in the inner shell and outer shell surfaces. The compartments are assembled with the sections in a vertical orientation to minimize self-weight distortion during erection and to provide direct access with shop cranes during assembly of the full sections. The completed sections are rotated to the horizontal to be joined to the other sections to form a complete cylinder.