Joint Contracts Tribunal Clause 21.2.1 Insurance
As part of the Joint Contracts Tribunal (JCT) Standard Form of Building Contract, clause 21.2.1 addresses the specific issues that may arise for works involving excavation works, piling, demolition, underpinning etc.
Because of the nature of the work, it is possible that adjoining properties to the contract site may be damaged following the activities of the Contractor. However the Contractor may not have carried out the work negligently. The Contractor's Public Liability insurance policy deals with allegations of negligence only and without evidence from the third party that the Contractor had been negligent, their claim may well fail.
However the Employer (Developer) may still be liable, as they will be seen as the party that brought the Contractor to site (Gold v Patman & Fotheringham 1958), hence the need for this more specific insurance cover.
Clause 21.2.1 is an optional clause, requested by the Architect or Employer under the Appendix of the JCT Contract and requires the Contractor to arrange appropriate insurance cover for a specified limit of indemnity. However the intention of a 21.2.1 policy is to cover the Employer rather than the Contractor.
Cover is normally arranged by the Contractor's Public Liability insurer rather than in isolation and covers injury or damage to any property, caused by collapse, subsidence, heave, vibration, weakening or removal of support or lowering of ground water and arising from the carrying out of the works.
The usual exclusions for these policies include but are not limited to:
- Damage to the works and materials – something that should be covered by the Contract Works insurance.
- Losses arising from the contractors negligence - something that should be covered by the Contractor's Public Liability insurance.
- Losses due to errors and omissions in the designing of the works - something that should be covered by the Architect's Professional Indemnity insurance
Please contact Stride on 023 9224 8790 for more information on Joint Contracts Tribunal (JCT) clause 21.2.1 insurance or alternatively complete the online enquiry form.