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What is the Defects Liability Period?

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.

If the Contractor does not, due to his own fault, finish the repair work or fix the defects by the end of the Defects Liability Period, the Defects Liability Period will continue until all work instructed by the Engineer is done.

Who is responsible for the cost of carrying out the Engineers instructions during the defects liability period?

  • The Contractor will carry the cost if the Engineer decides that the Repairs or fixes are necessary because of the Contractor’s fault.
  • In other cases, the Employer will pay.

What if the Contractor ignores the Engineer’s instructions?

If the Contractor fails to obey a written instruction from the Engineer for 28 days, the Employer will have the right to carry out the necessary work himself or employ someone else to do it.

If this happens, the Contractor will be responsible for:

  • the whole cost of carrying out the necessary work, if the work was due to his own fault;

or

  • any additional cost that the Employer suffers by having to do the work himself or through others, if the work was not due to his own fault.

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Contractors All Risk policy – Should You Put Your Name On It?

Dirk Gouws (Engineering Insurance expet, AC&E Engineering Underwriting Managers) explains the meaning of having your name on a Contractors All Risk policy.

Plant All Risk Advice

“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…

Does a Construction All Risk Policy cover damage to surrounding property?

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.

What Are Latent Defects?

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.

Are you ready for the summer shut down?

As a responsible construction company owner, you know the importance of insuring your plant and making sure that your other necessary policies are in place with CivilSure. But did you know that the number of instances of – and the size of – liability claims litigation is higher than ever, and climbing?

Three ways to insure your plant

Civilsure understands the importance and necessity of comprehensive plant insurance at a reasonable rate. We also know that you expect impeccable service and attention to detail at claims stage. That is why we are committed to helping you choose the correct plant all risk (PAR) for your business needs.

Build a foundation against liability claims litigation with construction liability cover

As a responsible construction company owner, you know the importance of insuring your plant and making sure that your other necessary policies are in place with CivilSure. But did you know that the number of instances of – and the size of – liability claims litigation is higher than ever, and climbing?

What is not covered by a Contractors All Risk Policy?

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:

Special project delay insurance for special risks

You know that there are many risks associated with running a construction company. After civil unrest wreaked havoc in South Africa in June and July this year, you may be asking yourself: “What would happen if we should have to temporarily close our construction sites because of civil commotion, public disorder, rioting, looting, labour disturbances, strikes, a lockout – or even an act of terrorism?”

How Does a Contractor Claim For An Extension of Time?

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).

Civilsure Letter of Intent
Civilsure Construction Guarantees
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Civilsure Professional Indemnity

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