When it comes to fighting for our clients, our team is as tough as nails.

While construction projects may seem quite simple at the construction site itself, many risks and liabilities acquired under contracts pose a wide range of additional risks which must be addressed in a sensible manner.

In recent years there has been an increasing trend towards design and construct projects, sometimes where the design aspect has been performed by someone outside the control of the builder, but the risks associated with this design work is novated to the builder.

Apart from the obvious challenges of damage to the works or construction plant and liability for injury or damage, there are other issues, which must be addressed, such as:

  • Contractual Liability
  • Professional Indemnity issues
  • Delay in completion
  • Performance bonds
  • Liquidated damages
  • Pollution
  • WorkCover

We have worked heavily with the construction industry for many years and in fact some of our team have previously worked for builders, so we know how to analyse the exposures and tailor insurance programs.

Construction insurance can include:

Builders Risk Insurance

Builders Insurance

Liability insurance for contractors

Owner Builder Insurance

We’ll ask the questions others won’t.

Insurance can eliminate the worry that comes along with owning a building company or undertaking a construction project.

It is generally the responsibility of the owner, but that doesn’t mean that their insurer won’t come after you if they believe you have some responsibility.

In practice, it is often not addressed at all, which leads to an awkward conversation, even if you’re not responsible, as unless the property owner has organised cover from their insurer, in the absence of insurance monies to pay for the repairs, it could leave the project in limbo.

As much of the work associated with the design of a project is carried out by outside consultants, many builders think that the consultant’s professional indemnity policy will get them out of trouble.

The position is that you’re first in line, as far as the client is concerned… do you have your own cover, or are you relying on the consultant’s insurance to get you out of trouble?

In many instances, it’s simply not possible to obtain the insurance cover to satisfy your liability under a hire agreement. We try to minimise as many gaps as we can.

On larger projects, many builders sign contracts supplied by their client without adequately assessing the risks they have taken on.

The insurance clauses of the contract are important, but what is more important is to protect the exposures picked up by the indemnity, which in many instances goes way beyond what is possible to insure and will leave you exposed.

On larger projects, bank guarantees become problematic, as they generally involve the provision of security to the bank, in the form of bricks and mortar, which ties up capital.

Surety bonds are a good alternative at a similar cost, without the security issue.

  • Who is responsible for insurance on pre-existing property during construction or alterations?

    It is generally the responsibility of the owner, but that doesn’t mean that their insurer won’t come after you if they believe you have some responsibility.

    In practice, it is often not addressed at all, which leads to an awkward conversation, even if you’re not responsible, as unless the property owner has organised cover from their insurer, in the absence of insurance monies to pay for the repairs, it could leave the project in limbo.

  • What additional risks are you taking on by doing a design and construction project?

    As much of the work associated with the design of a project is carried out by outside consultants, many builders think that the consultant’s professional indemnity policy will get them out of trouble.

    The position is that you’re first in line, as far as the client is concerned… do you have your own cover, or are you relying on the consultant’s insurance to get you out of trouble?

  • What equipment are you hiring for the project?

    In many instances, it’s simply not possible to obtain the insurance cover to satisfy your liability under a hire agreement. We try to minimise as many gaps as we can.

  • What indemnities have you signed?

    On larger projects, many builders sign contracts supplied by their client without adequately assessing the risks they have taken on.

    The insurance clauses of the contract are important, but what is more important is to protect the exposures picked up by the indemnity, which in many instances goes way beyond what is possible to insure and will leave you exposed.

  • Are you providing bank guarantees or utilising surety bonds?

    On larger projects, bank guarantees become problematic, as they generally involve the provision of security to the bank, in the form of bricks and mortar, which ties up capital.

    Surety bonds are a good alternative at a similar cost, without the security issue.

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