{"id":138410,"date":"2024-04-02T16:30:40","date_gmt":"2024-04-02T15:30:40","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=138410"},"modified":"2024-04-02T16:30:40","modified_gmt":"2024-04-02T15:30:40","slug":"contracts-work-insurance-groundwork-companies","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/contracts-work-insurance-groundwork-companies\/138410\/","title":{"rendered":"Understanding contract works insurance: Essential coverage for groundwork companies"},"content":{"rendered":"

In response to heightened risks and contractual obligations, employers are increasingly requiring groundwork and civil engineering companies to secure contract works insurance<\/h2>\n

In recent years there has been an increasing trend for employers to require groundwork and civil engineering companies to provide insurance cover<\/a> for contract works.<\/p>\n

Contract works insurance is arranged across the construction sector to cover works as they progress until practical completion.<\/p>\n

Groundwork and many civil engineering companies have not historically been required to take out a full contract works policy as the likelihood of any damage to their work has been deemed to be insignificant.<\/p>\n

A comprehensive “all risks” cover<\/h3>\n

Contract works insurance provides a comprehensive \u201call risks\u201d cover for the construction of all types of building and civil engineering works including new builds and the alteration, repair, or refurbishment of existing property.<\/p>\n

Cover can be arranged on a one-off, single-period project or on an annual basis.<\/p>\n

Many risks covered by contract works insurance may not typically be risks that groundworks companies foresee.<\/p>\n

However, groundworks companies with broader \u2018contract works\/ all-risks\u2019 cover can benefit, particularly in helping to win new contracts where the contract terms make such cover obligatory.<\/p>\n

Example claim<\/h3>\n

A client was contracted to lay groundworks for a new construction project and had laid fresh concrete foundations and oversight.<\/p>\n

However, the concrete was not fully set when intruders broke into the site, stole a dumper, and drove it across the works.<\/p>\n

This resulted in significant damage, requiring the contractor to break into and replace both footings and oversight. With contract works insurance in place, the contractor was able to claim for the labour and materials required to reinstate the works.<\/p>\n

What does contract works insurance cover?<\/h3>\n

Contract works insurance is essentially a property insurance providing cover for accidental loss of or damage to the contract works which will usually include temporary works, unfixed materials and free issue materials on site.<\/p>\n

These most common claims relate to damage, or loss caused by:<\/p>\n