Civil Engineering Reference
In-Depth Information
not obliged to insure against loss from specified perils caused by negligence, the
obligation to insure did not extend to an obligation to include the contractor as a
namedinsured,andthecontractorhadundertakentoindemnifyRolls-Royceagainst
damage arising out of its negligence.
14.2.8 Claims
The consequences of loss of or damage to the works under the SBC and the SBC/DB
vary according to which insurance Option has been selected.
If the Contractor has taken out insurance under Option A, the Contractor must
givenoticeofthelossordamagetotheEmployer(andwheretheSBCisused,also
to the Architect) and, following any inspection by the insurers, the Contractor must
restore the damaged work and repair or replace any lost or damaged Site Materials and
removeanddisposeofdebris.heContractormustauthorizetheinsurerstopayany
monies to the Employer, who then passes them on to the Contractor by way of interim
certificates. It should be noted that under the SBC/DB payment of such insurance
monies will be by instalments under Alternative B even if staged payments under
Alternative A otherwise apply under the contract.
No other sums are payable to the Contractor by virtue of the loss or damage. This
would appear to exclude a claim for loss and expense as a Relevant Matter under
clause 4.24 of the SBC and clause 4.21 of SBC/DB, though an extension of time may
be granted if the loss or damage was occasioned by any of the Specified Perils (see
clause 2.29.10 of the SBC and clause 2.26.9 of the SBC/DB).
WheretheAllRisksInsurancehasbeentakenoutbytheEmployerunderOption
B, there is a similar procedure for the Contractor to give notice, but any restoration,
replacement or repair work and (when required) removal and disposal of debris is to
be treated as a Variation under the SBC and a Change under the SBC/DB and valued
accordingly. In this case, any shortfall between the insurance proceeds and the cost
will be made up by the Employer. Under Option A, in contrast, the Contractor will
only receive such monies as the insurers pay out.
If there is material loss or damage to existing structures which have been insured
by the Employer, there is an option under paragraph C.4.4 of Schedule Part 3 of the
SBC and the SBC/DB for either party to terminate the employment of the Contractor
if it is just and equitable so to do. Any dispute on this point may be referred to dispute
resolution.Ifnonoticeofterminationisserved,orwherethenoticeofterminationis
not upheld at dispute resolution, then the Contractor must restore, replace or repair
the loss or damage, such work being treated as a Variation (or a Change, in the case
of the SBC/DB).
14.2.9 Excepted Risks
heprovisionsofclauses6.1,6.2and6.4.1oftheSBCandtheSBC/DBareeachsubject
to clause 6.6 which excludes from the Contractor's liability personal injury to or the
