Construction_insuranceConstruction projects are prone to disputes due to their complexity and levels of uncertainty not usually found in many other contractual agreements.

Weather, labour, technical problems and defects can all play their part in taking your project into potential construction disputes with your clients.

Your construction insurance will cover you for a range of risks for the duration of the project such as:
  • professional indemnity,
  • public liability,
  • product liability,
  • latent defects, bond insurance and guarantees.
However, there may be elements within the construction contract that will need close attention to ensure your construction insurance remains valid.

Contractual notice requirements
A good example of this is contractual notice requirements. Construction contracts often include a “time bar”. Claims need to be made within the specified time and if you are disputing a claim, you will have to act within a certain period.

When entering into a contract, you need to be aware of these time frames and from a construction insurance perspective, check that any particularly stringent or onerous time bar clauses are allowed within your insurance policy.

Do you know what “The Protocol” means?
Claims at pre-action stage, before formal proceedings are issued, can use “The Protocol” to determine the conduct of construction claims. The intention is to resolve disputes early without the need for court proceedings.

A recent revamp in 2016 streamlined the process and though it is no longer compulsory, the submissions are less comprehensive meaning there are fewer steps to be followed before court proceedings are issued. As a result, you will need to engage early in the process and respond quickly to any claims made against you.

If you do find yourself involved in a claim, act quickly and notify your construction insurance company as soon as possible.

CLA provide support for all our clients involved in the construction industry:
  • Architects
  • Surveyors
  • Property developers
  • House builders
  • Civil engineers
  • Building trades
  • Building products manufacturers
Call 0121 321 4600 and speak to one of our Account Managers for more information.