Construction and redevelopment projects can be highly complex undertakings with many different elements of work to be co-ordinated into the finished project. The Project team will need to display exemplary control and management of the construction processes to ensure an on-time/on-budget delivery.
That same control and management is no less important for the insurance programme which wraps around the construction process, providing a layer of financial protection for transferred risks.
The policy period of an OCIP is the fixed period for the duration of construction and can deliver an integrated solution that meets the needs of all interested parties. By using an OCIP, all insurance costs are collected into one transparent policy which provides greater control and eliminates ‘handling costs’ amongst a number of other benefits.
In the past the normal procedure has been for the Employer to call for bids from contractors including insurance, and when the project was finally awarded, the
Main Contractor was responsible for arranging the insurance of his liabilities under the terms of the contract. He would then effect insurance to cover the known
exposures, and in the majority of cases employed sub-contractors, manufacturers, suppliers and sub subcontractors who in turn would also effect insurance (hopefully on similar terms).
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For further information, please contact Terence Edwards, Partner, Real Estate on +44 (0)20 7528 4237