![Page 1: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/1.jpg)
AN INSURANCE OFFICER’S GUIDE TO CONSTRUCTION
CONTRACTS
GINNY HOPE
![Page 2: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/2.jpg)
WHEN DO YOU KNOW ABOUT NEW BUILDINGS
OR MAJOR REFURBISHMENTS?
![Page 3: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/3.jpg)
At planning or design stage?
![Page 4: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/4.jpg)
Prior to contract issue?
![Page 5: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/5.jpg)
When works start?
![Page 6: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/6.jpg)
When building finished?
![Page 7: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/7.jpg)
The day it burns down?
![Page 8: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/8.jpg)
TODAY’S PROGRAMME
1. DESIGN / PLANNING STAGE
2. CONTRACT ISSUE
3. INSURANCE PLACING
![Page 9: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/9.jpg)
DESIGN/PLANNING - Get your insurers involved
- Risk aggregation – link bridges?
- Compartmentation
- Alarms
- Sprinklers/gas extinguishment
- Cladding materials – combustible?
- Bin storage
![Page 10: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/10.jpg)
CONTRACT STAGE• Professional indemnity risks
• Who is insuring the works?
• How much liability cover?
• Who is insuring the existing building?
• What about adjacent property?
• Advance profits?
![Page 11: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/11.jpg)
SOME CONTRACTS
• JCT
• GC Works
• NEC
NB: DIFFERENT VERSIONS OF EACH. BEWARE!
![Page 12: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/12.jpg)
SOME CONTRACTS
JCT - Advantages•Widely used & ‘understood’
•Contractors like it
•Lots of case law
•Good for minor works and refurbishments
![Page 13: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/13.jpg)
WATCH OUT FOR
JCT
INSURANCE OF EXISTING BUILDINGS
![Page 14: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/14.jpg)
JCT
WATCH OUT FOR
JOINT NAMES PROVISIONS
![Page 15: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/15.jpg)
ACTION ON EXISTING BUILDINGS
• Delete the Joint names requirement OR
• Ask your insurers to include cover e.g. Zurich PART C Works in Progress
Section 2 – Property Insured
a) Works in Progress
b) Existing BUILDINGS and their CONTENTS insured under Part A but only during the period in which the BUILDINGS are undergoing alterations or additions including any agreed period for maintenance or making good defects.
![Page 16: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/16.jpg)
JCT
WATCH OUT FOR
SUB-CONTRACTORS’ WORKS COVER – DEFINED PERILS ONLY
![Page 17: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/17.jpg)
FIRE/LIGHTNING
EXPLOSION
STORM
FLOOD
BURST PIPES
EARTHQUAKE
AIRCRAFT
RIOT
CIVIL COMMOTION
![Page 18: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/18.jpg)
JCT
WATCH OUT FOR
ANY 21-2-1 REQUIREMENT
![Page 19: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/19.jpg)
SOME CONTRACTS
GC WORKS
• Public sector contract; favours the Employer
• Contractors dislike it
• Needs modifying to suit HE
![Page 20: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/20.jpg)
GC WORKS
• ALTERNATIVES B & C (AVOID JOINT NAMES PL)
• NO PROVISION FOR NON-NEGLIGENT COLLAPSE (21-2-1)
WATCH OUT FOR
![Page 21: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/21.jpg)
SOME CONTRACTS
NEC
• Relatively new – not widely known
• Plain English
• Little case law yet
• Needs adaptation for refurb works
![Page 22: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/22.jpg)
NEC
• 80.1 Employer responsible for riot damage
• 84.2 Joint names EL/PL
• No provision for non-negligent collapse
WATCH OUT FOR
![Page 23: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/23.jpg)
INSURANCE PLACING
CONTRACT WORKS
• Recommend some automatic provision for small contracts
• Don’t forget the terrorism cover
• Sum insured
• Free issue materials
• Any special risks? E.g. water transits
• Completion date – when?
![Page 24: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/24.jpg)
CONTRACTOR’S PL & PI
• What limit required?
• Novation issues (PI)
• Collateral warranties?
![Page 25: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/25.jpg)
EXISTING BUILDING
• JCT? Do you need joint names cover?
• Protecting contents during Works
• Sum insured after completion
![Page 26: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/26.jpg)
21-2-1
• Why needed?
![Page 27: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/27.jpg)
![Page 28: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/28.jpg)
21-2-1
• Architect may specify requirement
• Consider ground conditions, nature of works, neighbouring property/facilities
• Limit?
• No standard wording for GC Works or NEC
![Page 29: AN INSURANCE OFFICERS GUIDE TO CONSTRUCTION CONTRACTS GINNY HOPE](https://reader036.vdocuments.mx/reader036/viewer/2022062417/5515f97c550346cf6f8b57fb/html5/thumbnails/29.jpg)
CONCLUSION
• Get involved early
• Keep checking developments
• Diary for completion