Project

Contract insurance

Last edited 10 August 2015

The continuance of contract works insurance in ABIC-2008/2011 versions to final certificate may be causing some confusion.

While it is sound practice not to give insurance advice, there is anecdotal evidence that architects are responding to client queries, or worse, are volunteering that the change in the ABIC 2008 version means that the client does not need their own insurance between issue of the notice of practical completion and issue of the final certificate.

Clause E2 Contract Works Insurance is common to MW and SW 2008 and 2011 versions of the contract. It states that whichever party is required to take out contract works insurance they must keep that insurance policy in place until 4pm on the date the architect issues the final certificate.

Typically it is the contractor who takes out contract works insurance, but ABIC gives the option in the schedule - see item 13 of schedule 1 in MW and item 12 of schedule 1 in SW.

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