By Greg Goldfayl
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Additional info for Construction contract administration
In such instances, each parcel of work is constructed under its own contract, and the owner may elect to be responsible for insurance both of the works and of public liability for the entire project. This arrangement makes it possible for the owner to take advantage of the lower premiums which are likely to be available through spreading the risk over a number of contracts. These premiums are also likely to be lower than a contractor could obtain for an individual contract. MW-1 provides for two alternative insurance strategies: • • insurance by the contractor insurance by the owner.
As mentioned above, insurance of the works may be effected either by the owner or by the contractor. Under MW-1, the scope of the cover and the sum insured are as set out by the owner in the contract. Insurance is maintained from the date the contractor gains possession of the site until the issue of the notice of practical completion. Whether insurance of the works is effected by the contractor or by the owner, the policy is required to name the owner, the contractor and all subcontractors as the insured.
As with the insurance of the works, the only substantive difference between a party having a policy effected solely or jointly in its name, and simply being named as one of the insured, is the actual or potential responsibility for paying premiums. 2; E8 From the date the contractor is given possession of the site until the issue of the final certificate, the party stated in item 5, ‘Public liability insurance’, of schedule 1, ‘Contract information’– or, if nothing is stated, the contractor – must insure against the following risks which arise from the construction of the works and which occur on or adjacent to the site: • • injury to or illness, disease or death of any person not covered by workers’ compensation and employer’s liability loss of or damage to the property of any person, excluding the works, materials or equipment to be incorporated in the works, and plant, tools and equipment.