Civil Engineering Reference
In-Depth Information
3
Insurance and Other Project
Planning Matters
The letters which follow cover the insurance clauses in the standard forms. With
the exception of GC/Works/1, they are all very similar. MW and MWD are some-
what shorter than the other JCT provisions, as one might expect. Minor differences
between the forms should be noted. If you already maintain insurances of a general
nature, they may be acceptable provided that they cover the risks and the sums
adequately. Even where contractor's all risks insurance is held on an annual basis,
you must make sure, at the very least, to report each new project to the insurers.
Insurance is a specialist subject which is best dealt with by your broker.
If it is for the employer to take out insurance; for example in the case of existing
buildings and works of extension, you must be sure to inspect such insurances
before commencing on site. Remember that insurers tend to interpret 'existing
structures' quite strictly and this insurance must be used even if there is but one
small piece of wall to be retained from the existing property. In general, local au-
thorities are not required to insure, presumably on the basis that it is more cost
effective to meet any risks from their own resources.
Since the previous major revision of the JCT contracts in 1980, the insurance
provisions have been frequently amended, ostensibly to take account of decisions
from the courts.
Third party rights and collateral warranties deserve (and have been given) a
topic to themselves. Letters suggesting some responses to requests to enter into
warranties or performance bonds have been included. Only if the warranty's terms
were among the documents on which you tendered are you bound to complete it.
Letters will also be required for the appointment of the site agent, manager or
foreman.
