Job Book 9th Edition - Book - Page 266
ONLINE VERSION
254
Stage 5 > Construction: Supplementary Material: 5/SM4
5/SM4: Insurances check
(actions for the contract administrator)
Insurance in the context of building construction is a highly specialised area,
but it is of great importance for the contract administrator. Certain insurance
obligations arise from legislation, but the Building Contract will usually contain
specific requirements concerning insurance cover against injury or damage
caused during the works.
These requirements will have been discussed with the client, and the implications
fully explained, prior to tender stage. The cost of insurance premiums will have
been taken into account by the tenderers. Responsibility for the required cover,
whether taken out by the contractor or the employer, will have been established.
Whereas the checking of policy wording is a matter for insurance experts
advising either the contractor or the employer as relevant, it is for the contract
administrator to check that the obligations to take out cover have been complied
with.
An insurances check is necessary before any work on site is commenced. Although
most contractors carry an annual policy, endorsements and some cover can
take time to arrange. It may be that in some circumstances it proves impossible
to obtain the cover stated, in which case it will be for the parties to the Building
Contract to decide the arrangements to apply.
Specialist subcontractors are sometimes mainly responsible for damage which
occurs and such an eventuality must be properly covered. The employer pays
the cost of insurance in the end and it is important to avoid the risk of double
insurance. Cover must be adequate and any figures entered in the Building
Contract should be realistic after taking expert advice on the particular
circumstances. The mere repetition of some previously quoted sum is a recipe
for disaster.
At mobilisation stage it is vital to ensure that the required insurances are in place
before work commences.
