64 FINANCE & INSURANCE; GROUNDWORKS
for the costs of passing on the claim (subrogating) to the subcontractor and their insurer. So, the main contractor’s and the subcontractor’s insurance policies must be checked to ensure parity of insurance coverage before any work begins. Too often, the main contractor only checks the subcontractor’s insurance to confi r that it rovides a ublic liability limit that corresponds with the main contractor’s requirements. However, the subcontractor’s policy must also cover all types of work and activity they carry out on behalf of the main contractor. The cover must also be in place for the duration of the work, and the insurance premium must be paid in full. Implementing a robust vetting process for subcontractor insurance is, therefore, of the utmost importance. Failure to do so could invalidate the main contractor’s insurance policy and result in the non-payment of a claim.
In principle, the contractual terms under which the main contractor engages with their client should be replicated in the legal agreement with any subcontractors. Observing this olden rule can ush out detriental clauses and waivers. To give an example, this preparatory due diligence could determine whether an agreement contains a waiver of subrogation. In practice,
such a waiver would prevent the main contractor from passing on a claim to a subcontractor presumed solely or partly responsible for a loss. Worse still, unwittingly agreeing to such a waiver could breach the main contractor’s policy conditions.
A COMMON MISCONCEPTION There is also a common misconception that liability ultimately lies with the subcontractor responsible for any work they undertake and not with the main contractor. However, If the subcontractor is not liable under the terms of an agreement, then the main contractor may have to shoulder the full cost of
any claim. Bear in mind, too, that at the start of a housebuilding project, the main contractor will set parameters and provide direction to subcontractors regarding the allocation of work. They will counicate secifi cations, rovide inut and feedback to the client, and, in some circumstances, be charged with overall site safety and other responsibilities. In these circumstances, it is unlikely that total liability for a given incident can be passed on to the subcontractor when it comes to the settlement of a claim – even if, at fi rst siht, they should bear sole responsibility. In short, subcontracting work does not absolve the main contractor of liability should a relevant event occur.
CONSTRUCTION INSURANCE SPECIALISTS CAN OFFER ADVICE
Given the complexities, misunderstandings and potential pitfalls involved in insuring subcontractors, the main contractor should seek guidance from a construction insurance specialist from the outset. The main contractor’s insurance requirements will, after all, deend on the secifi c circumstances of a housebuilding project and the workforce mix that it entails.
Daniel Sunley is account executive at Clear Insurance Management
The rise of property finance specialist MSP Capital
Established over 40 years ago, specialist lender MSP Capital, is recognised for its stability in the industry and ability to tailor bridging and development loans to fit the developer. In 2023 it expanded its team to meet rising demand
and maintain the personalised, relationship-led service it’s known for – increasing their workforce by 26%. The firm’s success, including winning Non-Bank Lender of the Year two years in a row, stems from its ability to provide certainty and support to developers directly. Associate Director of Underwriting, Chris Sheppard states: “At our core we are a relationship-led business. That’s why we have so much repeat and referral business. That’s what makes the good specialist lender stand out from the regular lender.”
info@mspcapital.co.uk www.mspcapital.co.uk Coloured Precast Concrete Headwalls
Althon are now able to offer coloured headwalls for aesthetically sensitive areas. Our coloured concrete headwalls can help the installation blend into the surrounding landscape.
Althon use a colouring additive for cementitious materials. It provides a uniform streak free colour.
Colours shown are approximations of our colour mix in a typical concrete using mid grey Portland cement and having an as-cast surface. The final colour is affected by many influences.
T-T’s extended Pluto range HBD12_MSP
Capital_PR.indd 1 07/12/2023 14:13
T-T’s Pluto Maxi and Pluto Maxi Plus are extensions of the popular Pluto package pumping station from our BBA approved Planet Range®. Designed for final effluent treatment and domestic foul and surface water applications, both stations are supplied as complete single pump systems supplied with internal pipework, non-return valve, float switch and heavy-duty hose. The Pluto Maxi is 1.3m deep as standard, with an optional extension
turret to adjust chamber depth to suit your application; with the Pluto Maxi Plus supplied as 2m deep.
01630 647200
www.ttpumps.com
WWW.HBDONLINE.CO.UK BD08_Althon_QP.indd 1 19/07/2023 10:14 HBD12_TT Pumps_PR [RPT].indd 1 04/12/2023 09:02
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