Contractor’s all risk (CAR) insurance meaning

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Call-off The method, within a framework agreement, of directing particular works to be undertaken when needed, as appropriate. According to the arrangement's format and conditions, a call-off might demand that a separate contract is concluded, or it may simply need the instructing party to issue a call off notice. Refer to Practice Note: Framework agreements in construction—call-off procedures. CAR insurance Consult Contractor's all risk (CAR) insurance below. Category A fit out Interior fit out provided to a fundamental standard for landlords/developers, typically. Pinning down the scope is challenging, as it can differ quite widely in practice. Nevertheless, guidance does exist, such as authoritative publications issued by the British Council for Offices. Category B fit out Interior fit out delivered to an exact specified design for occupiers/owners...

This Practice Note examines how sub-contractors’ liabilities are commonly insured and considers: difficulties that may arise with sub-contractor insurances, and what those involved in a construction project should do. Sub-contractor liabilities Sub-contractor's own works A sub-contractor is answerable for damage to its own sub-contract works. That duty stems from its obligation to carry out and complete the sub-contract works (see Practice Note: Sub-contracting in construction projects). This is a property damage exposure and is therefore insurable under a property damage policy, for example a Contractor’s All Risks policy (see Practice Note: Contractors’ All Risks (CAR) Insurance). Remainder of the works The sub-contractor is also responsible if its negligence, breach of contract or breach of statutory duty causes loss to the remainder of the works. That liability is a legal liability and does not derive from any proprietary interest the sub-contractor has in the balance of the works. Strictly speaking, it ought to fall within a public liability policy. Nonetheless,...

1 Introduction 1.1 This guidance note sits alongside the following Lexis+® UK precedent development agreements: Agreement for lease—developer landlord to carry out major works Property development agreement (also commonly called a ‘building agreement’) Forward funding agreement 1.2 Sections 1–31 set out general matters for all development agreements. Sections 32–34 cover points specific to the Precedents: Property development agreement, Agreement for lease—developer landlord to carry out major works, and Forward funding agreement. 2 Terminology 2.1 In this note, the following terms apply: Developer The party who constructs, redevelops or refurbishes a building to realise a profit, usually by disposing of the completed scheme (with or without tenants) or, less often, by holding the asset and letting it to one or more tenants (the latter being uncommon, as most developers do not operate as commercial landlords). In building contracts, this party is often styled the ‘Employer’, as the Developer appoints the Contractor (defined below) to deliver the...