Tute 8 (Melany) Flashcards
What does Public Liability Insurance cover?
For third parties who suffer a loss.
Eg, if a neighbour’s car gets damaged by building works, the Contractor can claim on their Public Liability Insurance.
What does Contract Works Insurance cover?
Covers accidental risks of physical loss or physical damage to the contract works during construction.
On what conditions can a Contractor raise a second progress claim within the same period?
If both the contractor and client agrees in writing.
When assessing a progress claim, you can seek advice from/review the following:
- QS
- Specialist consultants
- Assessing the percentage complete against the trade breakdown (provided you are confidence the building hasn’t weighted the trade breakdown to the earlier trades)
- The construction programme
- The cash flow
According to the ABIC contract, what does the Architect need to do if the amount certified on the progress certificate is different from the Contractor’s progress claim? (1)
Notify (not justify) the Contractor in writing why the certified amount is different.
Eg, the brickwork has been assessed as 20% instead of 80%.
When the Contractor claims for payment of work/materials that are offsite, what are 3 potential risks?
1) The sub-contractor could go into liquidation
2) The contractor could go into liquidation
3) The items could be damaged or stolen.
What are three methods of security that could be used to reduce the risks of certifying payment of material/works that are offsite?
e.g. prefabricated elements etc.
1) From the contractor, ask for proof of Title over the work/item if is work done by sub-contractors, manufacturers or others ( e.g. to manage the risk of the sub-contractor going into liquidation).
2) A bank guarantee [DON’T use cash retention] (to manage the risk of the Contractor going into liquidation)
3) Additional insurance for work/item(to manage the risk against damage and theft).
