NZCB InHouse magazine June/July 2020

Page 11

FROM NZCB —

Contract Works Insurance Amid COVID-19 Now that the Government has allowed the construction industry to continue under Alert Level 3, builders, sub trades and building support services are adjusting to the protocols and changes in the way business is conducted and sites controlled. This can slow down the building process; supplies are taking longer, certain products are unavailable, the way we purchase goods at retailers has changed, and a general increase in the time that a site will take to establish are all real factors of doing business at the moment. These are all factors to consider when arranging contract works insurance.

Single Contract Works When arranging contract works cover ensure that you are factoring in; the additional time it may take to adhere to the new protocols, the longer time it will take to get supplies on site, the change in the availability of certain products and delays with council.

As soon as the build period exceeds the declared maximum contract period specified the policy does not cover that build.

It is generally more cost-effective to add on a few extra months at the commencement of the policy, rather than arranging an extension to the cover when the policy expiry date is reached.

Other Important Facts

If the job is a renovation and the homeowner is arranging the contract works please have a conversation with them around possible delays and a realistic expected handover date, this way they can set up the policy with their insurer for an appropriate cover period from the outset.

Annual Contract Works For those, of you with an annual contract works policy now is the time to check on the total construction months you have specified for the policy. On the policy schedule, you have received from your broker or insurer this will be specified and look something like this: Description of Contract and Sums Insured Contact Site(s) Contract Description Contractor

Various within the regions declared Annual Contract Works XYZ Construction Limited

Limit Any One Contract Maximum Contract Period Maximum Maintenance Period Estimated Annual Turnover

$500,000 7 Months 12 Months $3,000,000

It is so important that you have the maximum contract period set appropriately. With reference to the above policy example if your build went for 7 months and 2 weeks then that build is not covered by the policy, as soon as the build period exceeds the declared maximum contract period specified the policy does not cover that build. This is also applied to the ‘limit any one contract’, if the contract value exceeds the amount specified, that contract is no longer covered under the annual contract works policy.

Some other important facts about contract works insurance were included in our last article however so important that we have included them again as follows: • For new builds the cover automatically cancels if the homeowner takes possession of the home • If the expiry date passes the policy automatically cancels. If you need an extension you need to contact the insurer or broker at least a few days before expiry • Make sure the policy mirrors the contract requirements • Notify the insurer of any damage, potential damage or loss immediately • Policies have a clause for cessation of work – this means if work stops for a period of usually 60 days the policy automatically cancels.

Your REDi Builders’ Insurance is administered by BrokerWeb Risk Services Limited. For a free review of your existing portfolio, you can email BrokerWeb Risk Services on redi@bwrs.co.nz or call 0800 644 444.

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OUR PEOPLE

3min
page 46

IN THE MEDIA

5min
pages 44-45

NEWS BITES

5min
pages 42-43

Good News and Bad News for Busy Builders

1min
page 41

Message from the AST Trust

1min
page 38

The Old ‘Switcheroo

2min
page 40

HEALTH AND WELLBEING

3min
page 36

Guarantee the Fitness of Your Client’s Home

2min
page 39

Wellington Golf Day

0
page 34

Inside our BDM Bubbles

4min
pages 32-33

Does It Really Matter Who You Contract With?

7min
pages 26-27

Stop the Spread With Contact Tracing and Contactless Inductions

2min
page 31

COVID-19 Government Wage Subsidy

2min
page 23

Seven Tips to Build a Recession Proof Business

3min
page 28

New Perspectives on Waste in the Construction Sector

3min
page 29

Leadership Resilience and Peak Performance

3min
page 22

Ask an Advisor

1min
page 30

NZCB Builders Travel to USA and Learn the Value of Presentation

4min
pages 16-17

Changes to NZCB Annual Events

1min
page 10

Message from the NZCB Board

4min
page 4

Tax Cuts to Help Businesses

3min
pages 14-15

Message from the Chief Executive

3min
pages 6-7

Contract Works Insurance Amid COVID-19

2min
page 11

The Power of a Brand

2min
page 12

Notice of Annual General Meeting

1min
page 5

Wrap Up This Winter in NZCB Quality Gear

1min
page 13
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