Construction insurance provisions

Conditions of contract

The majority of projects with which practitioners are involved are likely to be carried out under one of the Joint Contract Tribunal (JCT) standard forms of building contract. It is recommended that all practitioners ensure they are reasonably conversant with the impositions of these contracts and what is required to meet them.

In particular, it should be appreciated that the JCT forms contain options regarding who is responsible for the insurance of the works (Options A, B or C). It is not appropriate to utilise more than one of these options even if a contract involves new build works as well as work in or on an existing structure.

• Option A should be used for new build projects where the contractor is to be required to effect the contract works insurance.
• Option B is for use on new build projects if the employer is to effect the contract works insurance.
• Option C is for works in or on existing structures and requires the employer to insure the existing structures and the contract works.

Joint fire code

Following a significant number of major and costly fires on contract sites, the insurance and construction industries met with other interested parties to establish a code of practice aimed at ensuring a standard approach to minimising fire exposures. The code draws together many good practice concepts and standardises procedures. Compliance with the provisions of the code is a requirement of the vast majority of Contractors All Risk policies and non-compliance can lead to suspension or cancellation of cover.

Joint Code of Practice: Fire prevention on construction sites (9th edition) is available to purchase from the Fire Protection Association.