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Building Contractors – Are They Insured?
As part of our approved contractor supply chain we ensure all main contractors carrying out work for our clients are fully insured and their documents are up to date. Contractors can carry a number of policies, but when it comes to construction work, particularly a domestic extension, it is imperative that they carry a ‘Contractor’s All Risk Policy’.
There is a lot of misconception around contractors insurance, but Contractor’s All Risk insurance simply means that any element of work which causes damage to your existing property is covered. No insurance policy covers defective workmanship or any liability should the contractor walk off site.
It is however extremely important that a formal building contract is set up between the client and main building contractor, which covers both parties and sets out the terms and conditions for the project.
It provides key details on the particulars of the project including;
- When payments are to be made
- When the works are to be started and completed
- Any penalties for late completion
- Retention monies and how long they will be held
- Any limitations of sequences or hours of work
- The contract sum
- Other parties’ roles and responsibilities
The contract should then be overseen by a contract administrator who acts independently of the client and main contractor. Their role will involve checking for any significant defects in workmanship, ensure the correctly specified products are being used, carry out valuations (the certified amount to be paid to the contractor) on the works completed to date and ensure all retention monies and snagging is completed in accordance with the schedule of works.