30 Questions
What becomes the property of the Employer when paid for by the Employer?
Cost of Plant and Materials ordered for the Works
Under what circumstances does the Cost of Plant and Materials become the property of the Employer?
When paid for by the Employer
What is included in the amounts payable for any work carried out for which a price is stated in the Contract?
Cost of Plant and Materials ordered for the Works
What does the Contractor become liable to accept delivery of?
Cost of Plant and Materials ordered for the Works
What does the Contractor become liable for when the Cost of Plant and Materials are delivered to the Contractor?
Placing them at the Employer's disposal
What does the Contractor become liable for when the Cost of Plant and Materials are paid for by the Employer?
Placing them at the Employer's disposal
What does the Contractor become liable for in connection with the Works at the date of termination?
Cost of repatriation of the Contractor’s staff and labour
When does the time limit for agreement under Sub-Clause 3.7.3 commence?
Upon the Engineer's receipt of the Contractor's particulars
Who is responsible for effecting and maintaining all insurances required under the Contract?
The Contractor
What happens if the Contractor fails to maintain required insurances?
The Employer can effect and maintain the insurances and recover the costs from the Contractor
What is the responsibility of the Contractor regarding insurance policies?
Produce insurance policies upon the Employer's request and submit proof of premium payments
In case of an event outside the Parties' control, what may happen to the performance of the Contract?
Both Parties may be discharged from further performance of the Contract
What are the deductible limits in any policy not allowed to exceed?
The amounts stated in the Contract Data
Until when must the insurance cover continue for the Works and Contractor’s Documents, Materials, and Plant?
Until the issue of the Performance Certificate for any incomplete work or damage caused by the Contractor
If a claiming Party fails to give a Notice of Claim within 28 days, what is the consequence?
The claiming Party shall not be entitled to any additional payment.
When should the claiming Party give a Notice of Claim?
As soon as practicable, and no later than 28 days after becoming aware of the event or circumstance.
In the case of a Claim under sub-paragraph (c), what should the claiming Party do if the other Party or the Engineer has disagreed with the requested entitlement or relief?
Give a Notice to the Engineer and Sub-Clause 3.7 [Agreement or Determination] shall apply.
What is the consequence of the Engineer not responding within a reasonable time to a Claim referred to them?
The claiming Party may proceed with the Claim as if there was a disagreement.
Under what conditions would the Contract Price be reduced?
If the Employer considers that they are entitled to any additional payment from the Contractor.
What is the purpose of Sub-Clause 20.2 [Claims For Payment and/or EOT]?
To outline the procedure for making a claim for additional payment and/or EOT.
If the claiming Party becomes aware of a disagreement (or deemed disagreement), when should they give a Notice to the Engineer?
As soon as practicable after becoming aware of the disagreement.
What is the consequence of the claiming Party failing to give a Notice of Claim within 28 days?
The claiming Party shall not be entitled to any additional payment.
What should the claiming Party include in the Notice referred to the Engineer in case of a disagreement?
Details of the claiming Party’s case and the other Party’s or the Engineer’s disagreement.
What insurance must the Contractor maintain until they are no longer needed for the Works?
Professional indemnity insurance
What is the Contractor entitled to if the Employer delays or prevents the Contractor's work?
Extension of time for completion and/or any additional payment
What insurance is required for liabilities arising from the execution of the Works in respect of injury, sickness, disease, or death of any person employed by the Contractor?
Insurance for liabilities arising from the execution of the Works
What insurance cover must include an additional 15% of the replacement value for additional costs?
Insurance for loss and damage of any part of the Works
What insurance is required if the Contractor is responsible for the design of part of the Permanent Works?
Professional indemnity insurance
What insurance must the Contractor provide at their own cost according to the Laws of the countries where the Works are being carried out?
All other insurances required by the Laws of the countries
What insurance must the Contractor maintain until the issue of the Performance Certificate?
Insurance against liabilities for death or injury to any person
Study Notes
Construction Insurance Requirements
- The insurance cover must include loss and damage of any part of the Works due to failure of elements defectively designed or constructed with defective material or workmanship, plus an additional 15% of the replacement value for additional costs.
- The Contractor is required to insure the Goods and other items brought to the Site for their full replacement value, including delivery to the Site, and maintain this insurance until they are no longer needed for the Works.
- If the Contractor is responsible for the design of part of the Permanent Works, they must maintain professional indemnity insurance against liability arising from any act, error, or omission in carrying out their design obligations.
- The Contractor must also maintain insurance against liabilities for death or injury to any person, or loss of or damage to any property (other than the Works) arising from the Contract performance until the issue of the Performance Certificate.
- Insurance against liability for claims, damages, losses, and expenses arising from the execution of the Works in respect of injury, sickness, disease, or death of any person employed by the Contractor or any of the Contractor’s personnel is required.
- The Contractor must provide all other insurances required by the Laws of the countries where the Works are being carried out at their own cost.
- The Contractor shall also indemnify the Contractor against liability arising out of any act, error, or omission in carrying out the Contractor’s design obligations under the Contract that results in the Works not being fit for their intended purpose.
- A Claim may arise due to a dispute or difference of opinion between the Parties, or from an event or circumstance.
- The Contract sets out the procedure for the notification, submission, and determination of Claims.
- The Contractor is entitled to an extension of time for completion and/or any additional payment due to the Employer's delay or prevention of the Contractor's work.
- The Employer is entitled to recover any loss or damage caused by the Contractor's failure to fulfill their obligations under the Contract.
- The Contract specifies the procedure for the notification, submission, and determination of Claims and the applicable time limits.
This quiz covers the essential insurance requirements and contractual obligations for contractors working on construction projects. It includes aspects such as insurance cover for works, professional indemnity, liability insurance, and procedures for claims and disputes.
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