Contract Works Cover

Contract works cover protects you in respect of damage to the works you are involved in and responsible for before your contractual obligations have been completed. Being given a large contract is obviously great and knowing that there is a big pay cheque at the end of the job can sometimes mean this policy gets forgotten. But think about spending days, if not weeks, performing the required work whilst spending money on equipment and materials, for something to go wrong before the contract is completed and you lose time and hard-earned money.

What is Covered?

This policy can cover a wide range of things. Some core areas of this policy include:

• Debris Removal
• Professional Fees
• Indemnity to Principal
• Indemnity to Local Authorities
• Maintenance Period Indemnity
• Off Site Storage
• Overtime Costs
• Replacement Plans and Specifications
• Temporary Accommodation
• Speculative Building
• Sub-Contractors Waiver of Subrogation

What Could Go Wrong?

There are so many events that could happen that it is just impossible to list. There is however a common type of claim that we hear about the most which is house builders being half way through the construction of a property when an event (such as a storm or fire) damages the building work to the extent that it has to be knocked down and started again. Obviously the value of the contract will still be the same but the cost of the demolition, site clearance and re-purchase of new materials that have been lost will eat in to any profit you were potentially going to make and, in most cases, can even end up costing your business money on the contract as a whole.

Do I Need Contract Works Cover?

Contract works cover is not compulsory but this protection should be in place for any work you undertake. Being out-of-pocket for an unforeseen incident could place a business into severe financial difficulties, especially if the contract was of a large nature in terms of materials being provided. There can be so many unexpected costs involved if something goes wrong so make sure you have this cover in place. A useful addition to this policy is goods in transit cover.