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Guide letters provide advice about matters architects should consider when composing letters to the parties involved in architectural projects.
1. When and how?
1.1 Prior to taking possession of the site, or at any other predetermined date where the contractor is nominated as the party responsible for obtaining insurance, the contractor must provide written evidence that all insurance required under the conditions of contract has been taken out.
1.2 You could (and on most occasions would) combine this letter with Guide letter 24.
2. Content
Refer to:
- the contractor's obligations under the contract and the specification clauses requiring the contractor to provide evidence of all forms of insurances required by the contract.
Request:
- that the contractor provide certificates of currency and any other required documentation for all forms of insurance required by the contract.
Advise:
- that the sums insured are to be in accordance with the schedules in the contract.
Enclose:
- copies of any insurance documentation (certificates of currency or any other documentation) required to be provided by the owner under the conditions of contract.
3. Action
3.1 This letter is essential to ensure that insurance is in place (and certificates sighted/on file) before work commences.
4. What happens next?
4.1 Refer all insurance documentation to the client and recommend they have their insurance adviser review and approve it for suitability and compliance with the contract conditions.
Ensuring the insurance is enacted for the project/site before the date that the Contractor takes possession
4.2 Ensure that you receive written advice from the client of their acceptance of insurances prior to commencement of building work on the site.
5. Are there other possibilities?
5.1 Should the contractor fail to provide adequate evidence of insurance within the time stipulated in the contract, advise the client to take out the required insurances. There are generally contractual provisions that allow costs for this to be deducted from the contract sum.
5.2 The client may wish to take out additional insurances if the insurances affect the contractor. This can only be done if tenderers were advised or by agreement between the parties.
6. What can happen if you don't?
6.1 Failure to have insurance in place before commencement of construction could expose the client to substantial risks.
7. Copies
7.1 Architect's file
7.2 Client
7.3 Relevant specialist consultants
Disclaimer
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