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What is ‘Practical Completion’?

by Dan Payton | 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.

Practical Completion is important because if it’s not achieved by the Due Completion Date, the Employer can impose penalties on the Contractor.

The project Engineer must issue a Certificate of Practical Completion to the Contractor when he’s achieved Practical Completion. Once the Certificate has been issued, the Employer may occupy and use the Works, provided he gives reasonable access to the Contractor to finish the minor items still outstanding and to fix any defects.

Although the Employer may occupy and use the Works, the Contractor still has possession of the Works. This means the Contractor is still responsible for loss or damage to the Works, unless the loss or damage is caused by the Employer.

How to obtain a Certificate of Practical Completion:

When the Contractor believes the Works are practically complete, he must contact the Engineer to request the Certificate.
The Engineer must answer in 14 days and if he feels the Works aren’t yet practically complete, he must give the Contractor a list of the work which must be done to make the Works complete.
Once the Contractor has properly completed the work on the Engineer’s list, the Engineer should issue the Certificate of Practical Completion.

How Does a Contractor Claim For An Extension of Time?

by Dan Payton | Jul 12, 2018 | Contractors All Risk | 0 Comments

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).

Why you need Contractors’ All Risk insurance

by Pam Claasen | May 5, 2015 | Construction Liability, Contractors All Risk | 0 Comments

All construction work, no matter the size or complexity of the project, contains an element of risk. Find out why you need Contractors All Risk Insurance.

What is not covered by a Contractors All Risk Policy?

by Dan Payton | Jul 31, 2018 | Contractors All Risk | 0 Comments

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:

Why is a Contract Works Policy Necessary?

by Dan Payton | Jun 28, 2018 | Contractors All Risk | 0 Comments

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.

What is the Defects Liability Period?

by Dan Payton | Jul 12, 2018 | Contractors All Risk | 0 Comments

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.

What Are Latent Defects?

by Dan Payton | Jul 23, 2018 | Contractors All Risk | 0 Comments

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.

What is ‘Practical Completion’?

by Dan Payton | Jun 28, 2018 | Contractors All Risk | 0 Comments

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.

Determining The Value Of Your Plant

by Jenna Foster | Apr 7, 2015 | Contractors All Risk | 0 Comments

To determine the value of construction plant we investigate Market Value, Fair Market Value, Replacement Cost, Replacement Value & Actual Cash Value

What is Plant All Risk Insurance?

by Dan Payton | Jul 31, 2018 | Contractors All Risk | 0 Comments

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.

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

by Dan Payton | Jul 23, 2018 | Contractors All Risk | 0 Comments

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.