CONTRACT WORKS COVER
In all situations where the Church undertakes building works (new constructions, alterations and additions to existing buildings, repairs to buildings as a consequence of Insured Damage), it is necessary to insure the works in progress for damage caused by an "insured event". The action you will need to take depends on the type of building works you are undertaking and the following information should be carefully noted.
Where the project involves alterations or additions to existing buildings, it is necessary for the insurer of the building to also hold the contract works policy. In the case of a claim where damage is caused to the existing part of the building there will be no dispute as to which insurer is responsible to meet the claim.
NEW BUILDINGS
The contractor is required to arrange the insurance cover for the building that will cover damage during construction, loss of materials and tools by theft and other risks. The policy will also provide public liability cover for persons injured on the site. This excludes employees who will be covered by the builder’s Workers Compensation policy or contractors/sub-contractors on site responsible for provision of insurance for their own risks.
A premium for this cover will be included in the contract price.
ALTERATIONS/ADDITIONS/EXTENSIONS TO EXISTING STRUCTURES
For all property within The New South Wales Synod or property in other States or Territories insured for The Assembly and Frontier Services, the "owner" is required to insure the building works. The Insurance Office arranges an "Annual Contract Works" cover for these projects and for the larger construction projects will charge the Congregation or Organisation a premium for the risk involved. The premium will be consistent with the rate charged by builders and is calculated to cover the cost of the policy only.
In this situation the builder is still required to have public liability insurance and Workers Compensation for employees.
SPECIAL NOTE
Please always refer to your letter of approval from the Property Projects Group for confirmation details of the insurance arrangements for your project. This will indicate who is responsible for arranging insurance and the amount of Public Liability Insurance necessary.
BUILDING CONTRACTS
There are different forms of standard contracts used in the construction industry, and each has provisions as to who (Proprietor/Owner or Builder) is responsible for the insurance. Where the builder arranges cover, evidence is to be produced prior to commencement of the project. All contractors are required to produce evidence of public liability insurance up to an agreed amount prior to commencement of the project. The project architect is usually responsible for ensuring this is in order. Where the project is relatively minor and no architect is involved, it is important that the contract used for building work meets our requirements, and the "Plain English" contracts do not always cover this very important aspect. Please seek advice from the Synod Property Projects Group if you have questions in respect of the appropriate contract that should be used.
