by Gael Miles | Nov 24, 2020 | Construction Liability, Contractors All Risk
“PAR” stands for Plant All Risks, and is a section of insurance cover that is intended to cover all types of construction plant i.e. mobile yellow metal plant such as Graders, TLB’s, Excavators and / or non-mobile construction equipment such as scaffolding, generators and small tools. These are typically used on construction and civil engineering projects ranging from residential to commercial to large infrastructure projects. A PAR policy will cover risks that are fortuitous working accidents/ sudden and unforeseen losses or damages…
by Gael Miles | Oct 20, 2020 | Construction Liability, Contractors All Risk, Guarantees, Professional Indemnity, Trade Credit
Understandably this can be a challenge as there is a myriad of cover available in the construction insurance landscape.
Let’s quickly unpack 5 Construction Insurance options for you.
by Gael Miles | Feb 27, 2020 | Uncategorized
Although CIDB grading requirements make it tricky for registered contractors to progress from one grading level to another, contractors are not prevented from applying for tenders above their grading status. A contractor may be awarded work one level above their...
by Gael Miles | Sep 5, 2018 | Guarantees, Tenders
The term ‘Letter of Intent’ (LOI) is typically used to describe a letter from an Employer to a Contractor (or from a main Contractor to a Subcontractor) indicating the Employer’s intention to enter into a formal written contract for Works described in the letter, and asking the Contractor to begin those works before the formal Contract is executed. While an Letter of Intent may come in many forms, it’s essentially a communication expressing an intention to enter into a Contract at a future date.
by Gael Miles | Aug 24, 2018 | Guarantees
Building Contractors often ask us the question: When is a Performance Guarantee called on? When your company starts bidding on projects for cities, provinces or municipalities, you’ll be expected to provide assurance that you can meet the obligations detailed in the Contract.
This assurance comes in the form of a Performance Guarantee. Basically, what happens is that a surety company (an insurer or bank), for a certain fee, steps in and guarantees your performance. Surety companies don’t work directly with Contractors. Instead, they partner with brokerages like us.
by Gael Miles | Aug 23, 2018 | Guarantees
Contract Guarantees in the construction, engineering, manufacturing and mining service industries are almost mandatory. Our range of Construction Guarantees are as varied as your requirements. Here’s a short list of the four types of Contract Guarantees and what they insure.
by Gael Miles | Jul 31, 2018 | Contractors All Risk
The main part of the Contractors All Risks insurance is the Contract Works section which provides cover for the property being worked on (e.g. new house, etc.). But it’s important to be aware of what’s not covered by a contractors all risk policy, these are just a few examples:
by Gael Miles | Jul 31, 2018 | Contractors All Risk
Your onsite machinery (plant) is vulnerable to a number of problems such as breakdowns, vandalism and theft. Missing a project deadline can be bad news for your bottom line as well as your reputation. Plant All Risk Insurance covers you for loss of, or damage to, construction plant and equipment whilst in storage, transit, on the contract site or being use as a tool of trade.
by Gael Miles | Jul 23, 2018 | Contractors All Risk
Yes, damage to surrounding property is covered by a construction all risk policy, provided it’s included as an add-on to the Contract Works cover. This means an extra premium would be charged to get the specified surrounding property covered.
by Gael Miles | Jul 23, 2018 | Guarantees
When applying to get a Performance Guarantee, you’ll have to answer basic questions about your professional work experience and your company’s financial history. If your business has more than one owner, the financial credentials of all owners must be submitted.
by Gael Miles | Jul 23, 2018 | Contractors All Risk
A Latent Defect is a defect that is not detected by ordinary inspection, but lies hidden until sometime later, when it’s discovered because it causes a problem that everyone can see. An example of latent defects would be weak concrete in part of a bridge column, that looks the same as strong concrete, but collapses when a heavy truck drives over the bridge.
by Gael Miles | Jul 23, 2018 | Guarantees
The term Performance Bond is often misleading, which can leave contractors confused about the difference between a performance bond and a performance guarantee. Most construction Performance Bonds are actually Guarantees. Bonds and Guarantees are related but are different. The right to claim under a Guarantee is linked to non-performance of the underlying contract. Under a Bond, the bank usually pays on demand regardless of the underlying contract.
by Gael Miles | Jul 19, 2018 | Tenders
Construction bidding is the process of submitting a proposal/tender to build or manage a construction project. Public tenders, or those with a government department, follow different rules than private tenders. They must be advertised in advance, and they allow any qualified contractors to bid if they choose to. Private owners may opt to limit the construction bidding process to contractors they have chosen as bidders.
by Gael Miles | Jul 12, 2018 | Contractors All Risk
A Contractor can claim for an extension of time, thus extending the Due Completion Date for a project. He can also claim for any costs which will increase due to being on site for longer (called time-related General Items).
by Gael Miles | Jul 12, 2018 | Contractors All Risk
The Defects Liability Period starts when the Certificate of Completion is issued and continues for the period agreed to in the Contract. During the Defects Liability Period, the Contractor has to obey all written instructions from the Engineer to carry out repairs and fix any defects which appear in the Permanent Works, so that, at the end of the Defects Liability Period, the Permanent Works are in the condition required by the Contract.
by Gael Miles | Jun 28, 2018 | Contractors All Risk
Practical Completion doesn’t mean the Contractor has finished the Works in every detail. It means the Works are sufficiently complete to be safely used by the Employer for the purpose he intended. The Contractor may still complete minor items and fix defects after Practical Completion, as long as the Employer isn’t inconvenienced.
by Gael Miles | Jun 28, 2018 | Contractors All Risk
When it comes to planning a new construction project, insurance doesn’t always get the priority it requires, with contractors often wondering whether it is really necessary to take out a contract works policy at all. Very often the contract works policy is arranged at the last minute, or even after the project has already started.
by Gael Miles | Feb 16, 2016 | Contractors All Risk
Have you read your plant hire contract? You should get evidence of the plant hire contract when you hire in a concrete pump truck or any other item of plant.
by Gael Miles | Jan 19, 2016 | News & Updates
The GBCSA (Green Building Council of South Africa) strives for a greener South Africa. Benefits of Green Building > Increased property values & productivity
by Gael Miles | Oct 15, 2015 | Contractors All Risk
Does Contractors Liability on the Contractors All Risk policy cover damages to a structure, caused by a disgruntled employee’s pre-meditated sabotage?
