If the contractor has liability insurance, isn`t that enough? We were the first in this industry to offer a structured CPD session on contract work because we believed that the more insurance brokers knew, the more confident they would feel if they advised their clients to do the right thing. We now place not only insurance brokers, but also surveyors, architects and party wall practitioners. The final clause relating to the infringement of persons or property is clause 6.3, which excludes “Works” and “Materials”, unless parts of the Works have reached PC, partially taken into possession by the Employer. In these cases, “the work” becomes “property” and is intended to be covered by the appropriate insurance policy. In comparison, under clause 6.3 “Loss of or damage to existing structures” – sub-clause 4 – the JCT design and construction contract has the same requirements as standard and interim contracts. Paragraphs 1, 2 and 3 of clause 6.3 make an exception, under insurance option C, “Employer`s insurance of existing structures and works in or their extensions”, the contractor`s liability and compensation exclude loss of or damage to existing structures, including content. To the extent that these are to be insured under Option C, this exclusion applies regardless of whether the damage may be due to negligence or breach of duty on the part of the Contractor or its persons. As part of a minor modification of a property, you must inform your insurer of the value at which you are having work done. It`s likely that your standard household insurance policy will cover your home while this work is done, as most home insurance policies cover construction contracts under £50,000. Minor works 5.4b* Intermediate and standard form 6.7C if an existing structure exists, and 6.7B if the project is rebuilt. * Or equivalent numbered clauses in the YCW On-Demand Contracts blog Author: Douglas Brown – Renovation Underwriting Douglas Brown, Managing Director of the specialist renovation policy provider Renovation Underwriting, shares his views and ideas on YCW contracts and renovation insurance in the broad sense.
It may come as a surprise to know that most home renovators and many home insurance brokers have no knowledge of YCW contracts. In most cases, it`s only when a homeowner needs to purchase insurance for their working home that they find out exactly what it is. Very few even notify their own. The YCW Minor Works Contract (MWC) is somewhat similar to the YCW Design and Construction Contract, the Intermediate Construction Contract and the Standard Construction Contract; However, the MWC deals with insurance under section 5 rather than under section 6. We know that the YCW`s contract guides recognize that homeowners may struggle to get insurance coverage for the job, but it`s achievable. An employer`s home should never be at risk due to a lack of insurance or incorrect coverage. That`s why we work so closely with brokers and other professionals to help them achieve the best result for their renovation clients. For more information, see www.renovationunderwriting.com. Blog Author: John D Wright – JD Risk Associates Summary Standard contract forms like YCW have a long history of words and phrases tailored to meet changing business needs and develop greater compatibility with affiliates like insurance companies. Recent adjustments under the 2016 YCW provide more clarity, but the fundamental question of who bears the risks in a given situation continues to occupy the minds of all those who advise on such contracts. YCW 2016: the finishing touch? The move. YCW 5.4A – this requires the employer to be included as a “common name” with the contractor in the insurance policy for the new job.
In the past, for reasons of subrogation, the insurance industry preferred that the employer insure the existing structure and that the contractor insure the work. This has led to a divergence in coverage between the two types of insurance and, in some cases, disputes over how claims should be resolved. There are no insurance options to choose from in this contract, but the insurance requirements are as follows: – The RIBA contract is compliant with the JCT house occupant as it is used for light and non-complex work. It does not include insurance options, but lists insurance requirements. Some of the YCW insurance options we offer are JCT Design and Build Contract 2011 (JCT DB11), JCT Minor Works Building Contract with Contractors Design 2011 (JCT MW/D11) or the clause relevant to your project does not appear here, we can always help you, please call 01825 745 410. If it is a new building, clause 5.4A of the YCW is the most appropriate. The JCT MW contract does not specify who must provide or pay the insurance policy required to cover the work, but for all the reasons mentioned above, the best solution is always for the employer to offer the insurance. Some contractors` insurance policies may be extended to include a common name, but this is often a “note of interest” and does not give the employer the right to control the policy. Similarly, if the builder moves from one phase of the renovation project to another, the completed work will not be carried out by anyone.
It will always be preferable for the landowner that a common name requirement can be included in this contract and, if so, how clauses 5.4B for minor work should be treated, where the employer (referred to here as the client) enters into a policy for existing structures and new work on behalf of the contractor. .