Construction Insurance and UK Construction Contracts
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APPENDIX 19.2
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Contractors All Risks Section
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Definitions
1. Property Insured
Any property belonging to the Insured or for which they are responsible and for which a sum insured is included in the Schedule whilst on or adjacent to the Contract Works and intended for use in connection with the contract includinga. Contract Works
The permanent and temporary works undertaken by or on behalf of the Insured in performance of the contract or speculative development including Site Materials anywhere within the Territorial Limits but excluding any contract- i where the original Contract Price or Contract Period exceeds the maximum specified in the Schedule
- ii which is separately insured.
b. Site Materials
All unfixed materials and goods delivered to or placed on or adjacent to the Contract Works and intended for incorporation in them but excluding Own Plant and Tools Hired in Property and Temporary Buildings.c. Own Plant and Tools
Tools contractors plant and equipment belonging to the Insured or hired to them under a hire purchase or lease agreement or on free loan and for use in connection with the Contract Works.d. Hired in Property
Tools contractors plant equipment site huts and other temporary accommodation and their contents (other than computer or other data processing equipment) hired by the Insured for use in connection with the Contract Works and for which they are responsible under the terms of their hiring agreement or otherwise but not tools contractors plant equipment site huts or other temporary accommodation and their contents on hire purchase or subject to a lease agreement or on free loan.
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e. Temporary Buildings
Site huts and other temporary accommodation and their contents (other than computer or other data processing equipment) belonging to the Insured or hired by them under a hire purchase or lease agreement or on a free loan and for use in connection with the Contract Works.
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f. Property Awaiting Sale
Property built by the Insured whilst not under a contract for sale or rental after the date of completion. Completion shall mean completed or complete other than the prospective purchasers or tenants choice of decorations or final fitments.g. Employees Tools and Personal Effects
Employees hand tools and personal effects whilst on or adjacent to the Contract Works and intended for use in connection with the contract. Employee in respect of Definition 1g. shall mean any person under a contract of service or apprenticeship with the Insured.2. Maintenance Period of Insurance
The period not exceeding that specified in the Schedule during which the Insured is responsible for rectifying defects arising from the Contract Works.3. Contract Price
The actual price specified in any contract between the Insured and Employer or the actual cost to the Insured of any single defined phase of a speculative development including Professional Fees and the value of Free Issue Materials.4. Contract Period
The duration of work specified in any contract between the Insured and Employer or in the case of speculative development the duration of any single defined phase of such development.5. Employer
Any person(s) or incorporated company on whose behalf the Contract Works are undertaken under contract.6. Mechanically Propelled Plant
Self propelled vehicles designed to be used solely as a tool of trade on a contract site or vehicles which are not licensed for road use and used solely as a tool of trade on a contract site.7. Territorial Limits
- a. United Kingdom
- b. Any other member country of the European Union.
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8. Money
Cash bank and currency notes cheques crossed bankers drafts postal orders luncheon vouchers current postage stamps trading stamps holiday with pay stamps National Savings stamps National Savings certificates Premium Bonds credit sales vouchers or receipts VAT purchase invoices unexpired units in franking machines gift tokens deeds bonds bills of exchange promissory notes treasury note or securities and consumer redemption vouchers belonging to the Insured or for which the Insured are responsible.
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9. Unoccupied Building
Any building or part of any building which is empty or not in use by the Insured or any tenant of the Insured.Cover
A. The Insurer will indemnify the Insured against loss of or damage to the Property Insured occurring within the Territorial Limits during the Period of Insurance by any cause not excluded by this Section. In addition, the Insurer will indemnify the Insured against loss of or damage to the Contract Works occurring during the Period of Insurance and- a. happening during any Maintenance Period and arising from a cause occurring prior to the commencement of the Maintenance Period
- b. caused by the Insured in the course of any operations carried out by them during the Maintenance Period for the purpose of complying with their obligations in respect of maintenance or making good of defects as may be referred to in any conditions of contract.
B. Employers Interest
The insurance by this Section extends to include the interest of any Employer for whom the Insured is carrying out a contract to which this Section applies but only to the extent that such interest is required to be insured jointly with that of the Insured under the contract conditions.C. Professional Fees
The maximum Contract Price includes an amount in respect of architects surveyors consulting engineers and other fees necessarily incurred in the re instatement repair or replacement of the Property Insured following loss or damage by any cause insured by this Section but not such fees for preparing or contending any claim. The amount payable for such fees shall not exceed that authorised by the appropriate professional body.D. Debris Removal
The insurance by this Section includes costs and expenses necessarily incurred with the Insurer’s consent in- a. removing debris
- b. dismantling or demolishing
- c. shoring up or propping
- d. cleaning or repairing drains service mains gullies manholes and the like within the site of the Contract Works