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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.

Don’t drop the wrecking ball now

by Trent Payton | Dec 6, 2021 | Construction Liability, Contractors All Risk | 0 Comments

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?

Help! What construction insurance do I need?

by Trent Payton | Oct 20, 2020 | Construction Liability, Contractors All Risk, Guarantees, Professional Indemnity, Trade Credit | 0 Comments

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.

No good deed goes unpunished

by Trent Payton | Jul 26, 2021 | Construction Liability, Contractors All Risk | 0 Comments

Employing smaller companies as sub- or independent contractors gives your own business more flexibility and allows local contractors to expand their business. But, did you know that as the client, you might be held civilly liable for any costs or compensation in case of work-related injuries or illness?

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.

Build a foundation against liability claims litigation with construction liability cover

by Trent Payton | Sep 28, 2021 | Construction Liability, Contractors All Risk | 0 Comments

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.

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).

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:

Special project delay insurance for special risks

by Trent Payton | Aug 23, 2021 | Construction Liability, Contractors All Risk | 0 Comments

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?”

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.