MULTIPROJECT
Making sure everything goes your way
We are very pleased with the service provided by Multiproject. Together with my husband I run a construction company and often have several projects running at the same time, so we needed help with their planning and design estimates. Multiproject took full responsibility for preparing a plan for an architect and a schedule of works - helped establish a list of materials, equipment and the necessary number of employees. I highly recommend Multiproject services, especially for those who run multiple building projects at one time.

Chris from London

When carrying out the project we had a huge problem with a client who blamed me and my staff for late work, even though the problems were on his side. Unfortunately, the cost estimate and contract I created was incomplete and not very professional. That's when I decided to look into Multiproject and through them I was able to provide a professional cost estimate and a contract from a new customer and I had complete control over the work. I highly recommend all Multiproject services, are masters at their work in Britain.

John, from Slough
Professionalism from beginning to end - the company's employees are experienced in the realities of Britain's construction growth and helped me to organize my first building project in London.

Paul, London
Cooperation with Multiproject (SE) Ltd. is one of the best investments we’ve ever made, given our long experience in the construction industry. Multiproject (SE) is a reliable, rapidly growing company, managed in a modern way. They provide high quality customer service, expert advice and high level of professionalism of all employees. High range of services offered covers all needs of construction companies working in the UK.

AJA Brothers Ltd.
Bart Kolosowski – Multiproject
I have worked collaboratively with Bart Kolosowski on a number of projects recently. Several things set Bart aside from others in his profession: firstly, as he comes from a background in Construction he has a very thorough and practical understanding of materials, techniques, details and regulations; secondly he has a ‘hands-on’ approach and is prepared to make helpful suggestions and engage in problem solving; thirdly he has genuine interest and passion in the all facets of the industry, in particular in improving efficiency. This approach can only be in the interests of all parties, be they client, Contractor or Architect. We endorse this ethos and believe that investing in Multiproject’s services will provide a valuable return for either Contractor or Client.

Jonathan Holland
As a Refurbishment Contractor I wish endorse Multiproject (SE) Ltd, as quality servicing firm. My first experience with the company is quite extensive over the past two years including helping our Company with many major projects.
With many years of experience they are capable in many areas and finish everything within schedule and budget to the highest level. They have always conducted themselves professionally.
You may with confidence select their services and be assured that the service will be done well and the way it should be.

KS Sypien Ltd.

Insurance in JCT contracts.



The types of insurance required by a JCT contract are quite complicated. One must make sure that contractor is fully insured in case of an accident or against losses. It is common to see architects and investors getting lost in this area. We hope that our guide will help you in your project.
References to clauses are made in relation to JCT Minor Works contract, which is the most popular form for small projects.
Insurance from the contractor's point of view
From the contractor's point of view, construction insurance can be divided into three groups:
  • "Employers Liability Insurance" (EL) - insurance against liability for injury or disease to the employees arising out of their employment. According to the Employers’ Liability (Compulsory Insurance) Act 1969), each employer needs to be covered to at least £5 million. In case of construction companies, the insurance must also cover labour only subcontractors.
  • "Public Liability Insurance" (PL) - this type of insurance provides protection against third party insurance claims, i.e. someone suffering loss who is not a party to the insurance contract. In case of construction companies this includes damages caused to neighbouring buildings. The cost of this insurance depends on the amount and scope of works. It does not cover damages to the works done.
  • "Contract Works Insurance" (CW) - this type of insurance covers the costs of losses and damages of works undertaken, i.e. flooding an almost completed property or burning down a newly built house. Small and middle-size companies often disregard this policy, but the lack of it may lead to bankruptcy, should the damage occur.
  • "Professional Indemity Insurance" (PI) - policy covering incorrect design of part of the works, necessary if the contractor is responsible for parts of the project, e.g. drainage system.
  • "Tools and Temporary Works Insurance" (TTW) - insurance of the tools, equipment, scaffolding and other temporary elements..
Types of insurance in JCT contracts
The JCT contracts categorise insurance types legally required in contract's conditions.
One type is categorised according to the policy range:
  • "Specified Perils" (SP) - includes insurance policies or their part, which covers specific hazards as indicated in the contact, such as fire, explosions, flooding etc. (JCT MW- clause 5.4)
  • "All Risk Insurance" (AR) - policy covering all other losses, except those, which are caused by faulty designing and completion, using faulty or inappropriate materials or other losses due to negligence.

The other type referred to in JCT contracts is categorised as:
  • "New Works" (NW) - insurance covering newly completed works, materials and equipment delivered onsite. The amount of the insurance should also cover additional costs related to additional works, such as cost of architect or engineer.
  • "Existing Structures" (ES) - it’s the insurance of already existing buildings and their furnishings in case of refurbishment and development works.
Contractor’s rights and responsibilities
Contractor is responsible for project between taking it over from the investor and practical completion. Those dates don’t have to coincide with the actual construction works (more information in the next guide)

Health impairment and death

The contractor is obliged to purchase a policy covering investor against liability for health impairment and death of their employees arising out of their employment. This excludes situations when the damages are cause by negligence or actions of the investor and their representatives, e.g. architect (JCT MW, clause 5.1).
Contractor should ensure that every subcontractor is fully insured in this (JCT MW, clause 5.3). This does not include subcontractors providing labour only.
In most cases this obligations are not covered neither by the PL nor EL policy.

Loses and damages outside works performed
Contractor is obliged to purchase an insurance policy covering losses and damages of property and equipment other than works included in the contract which arise of their actions or negligence. (JCT MW, clause 5.2). It is an AR type insurance. It covers losses caused directly by the contractor. It is usually covered by the PL type policy.
Similarly, investor should make sure that all subcontractors are adequately insured, depending on the type of works they are responsible for.


Loses and damages of works performed
In case of new buildings, the contractor is obliged to purchase an SP type insurance covering losses and damages regardless of the reason they occurred. The amount of policy should cover all costs necessary to rebuild the project and it is usually higher than the cost of the contract (JCT MW, clause 5.4A). This is usually covered by the appropriate type CW policy..

Rights
Contractor may request to be presented documents confirming purchasing of the insurance cover (JCT MW, clause 5.5), however this does not include local governments. In case of contracts more complicated than JCT MW contractor has the right to purchase adequate insurance policy and add it’s cost to contracted sum, but only if the investor does not provide that data.
Client's duties
Health impairment and death
Client should hold a valid insurance covering the liability for death or bodily injury caused by negligence. In case of institutional investors PL and EL type insurance should be adequate.

Loses and damages outside works performed
Client is responsible for insuring against the liability for losses and damages of property and equipment other than works specified by the contract, which are not covered by the SP type policy and not caused by the contractor.< br />
Loses and damages of works performed
In case of refurbishment and development works it is the investor who is responsible for purchasing the SP type policy against losses of works and buildings in which they are conducted and their equipment, regardless of cause and responsibility for losses incurred. (JCT MW, clause 5.4B).

Prawa
Client may request to be presented documents confirming purchasing of the insurance cover (JCT MW, clause 5.5. In case of contracts more complicated than JCT MW Client has the right to purchase adequate insurance policy and deduct it’s cost from contracted sum, but only if the contractor does not provide that data.
Together or apart?
Contracts JCT require the SP policy to be purchased in the name of general contractor and investor. This ensures that neither the contractor nor client will be deemed responsible for losses caused by the insurer, regardless of the reason and responsibility for above mentioned loss.
Architect’s role
As we explained in previous guides, architect is not a party to a contract but is employed by the client as their representative. In the light of JCT contract architect is obliged to making sure that all parties are aware of insurance requirements and relevant policies have been purchased. Their role is however purely advisory and they cannot make any demands.
According to JCT directives architect is not considered an insurance expert and they should not assess whether given policy is adequate to contractual requirements. This is the duty of the insurer.
Sources:

Chappell D., 2008. The JCT Minor Works Building Contracts 2005. 4th edition. Oxford. Blackwell Publishing
Chappell D., 2003. Understanding JCT Standard Building Contracts. 7th edition. London. SPON Press.
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Mini Guides
JCT - Joint Contract Tribunal
JCT is an organisation uniting different groups of professionals within the British construction industry. Members of the JCT include professional associations of architects, surveyors, inspectors, estimators, building contractors and many others. Read More...
Forms of Property Aquisition
In the British construction industry acquisition or commissioning of properties or their elements is defined as "procurement". Available procurement routes include Traditional (lump sum), Design and Build, Construction Management, Management Contracting and others. Please refer to our guide for more information. Read More...
Tender offer from client's and architect's point of view.
Perceptions of the stages of a construction project often vary between the client/architect and the contractor. Investor and architect are involved in the project for months before the actual construction work commences; for a contractor however stages of the project include only the tender offer and construction. Read More...
Gantt Chart
Gantt or Bar chart is the simplest planning method. If appropriately constructed however, it can convey much information crucial for the completion of the project. Read More...
Schedule types
Schedules can be divided into several categories depending on their type and the accuracy of information. This includes Master Programme, Detailed Programme, Purchase schedule and others. Read More...
Risk management
Through use of available supporting software it is possible to include risk management procedures into the schedule. Convenient analysis of possible scenarios for different options of construction work. Read More...
Insurance from the point of view of the contractor
From the contractor’s point of view, construction insurance can be divided into three groups:

- "Employers Liability Insurance" (EL)
- "Public Liability Insurance" (PL)
- "Contract Works Insurance" (CW)

Read More...
Types of insurance in the JCT's contracts
The JCT contracts categorize insurance types legally required by the contract. One of the ways of categorisation is according to the level of cover: "Specified Perils" (SP) and "All Risk Insurance" (AR).
Read More...
Contractor's rights and duties
Contractor’s liability is limited to project between taking it over from the investor and practical completion. Those dates do not have to coincide with the actual construction period. Read More...
Investor's duties
The investor should hold a valid insurance covering the liability for death or bodily injury caused by his or his employees’ actions or negligence. In case of institutional investors PL and EL type of insurance should be appropriate. Read More...
Architect's role
The architect is not a party to a contract. They are employed by the investor as their representative. According to the JCT contracts however, the architect is obliged to make sure that the parties are aware of the insurance requirements and that the necessary policies have been acquired. Read More...
Contract Documents
A contract may include various documents describing the project and stating the cooperation conditions as long as they are approved by both parties. Read More...
Contract Administrator
person responsible for contract management and certifying any additional works, changes, contract extensions, accounts etc. Contract Administrator is usually the architect who supervised the preparation of the contract documentation. Read More...
Architect's Instruction
Instructions given by the Contract Administrator, which are necessary to carry out any changes to the contract. They have to be stated in writing; in case of verbal instructions the architect has to submit a written document within 2 days. Read More...
Provisional Sum
Refers to the estimated sum included in contract to cover the costs of work, materials or equipment where the actual cost is not known at the time of signing the contract. It is most often used when the work specification has not been completed. Read More...
Interim Certificate
Is a certificate issued by an architect authorising the client to a partial payment for the works completed to date, when the payoff is scheduled before termination of work. It is prepared according to cost estimate presented by the contractor. Read More...
PC Sum (Prime Cost)
Is a term used when creating estimates and defining the price of material and resources, when the actual const cannot be established. Read More...
Base Date
Rarely found in smaller projects, due to their short life span. It is the time when the contractor's offer has been prepared to reflect the current market conditions, usually 10 days before the proposal is put forward. Read More...
Extension of Time
Procedure/certificate which allows a change of the completion date agreed by the contract. The certificate can be issued by the Contract Administrator when due to the circumstances beyond contractor's control work can not be completed on time. Read More...
LADs (Liquidated Ascertained Damages)
Often described as a penalty for late completion of work. In fact it is not a penalty, but a compensation for the costs incurred due to late completion. This sum is stated in the contract and should reflect the actual costs for the client. Read More...
Variation
In general, all variations from the range or specifications of the work. Read More...
ADR - 'Alternative Dispute Resolution'
'Alternative Dispute Resolution' - this term refers to all forms of resolving a contractual dispute, which are not judicial proceedings to change the contractual sum. Every such change has to be confirmed by an architect's written instruction. Read More...
Mediation
It is a voluntary procedure, both parties have to agree to such a solution and are not obliged to accept the terms of the agreement. This procedure involves employing an accredited mediator, who organises a meeting of both parties in the same time and premises, but in two different rooms. Read More...
Adjudication
Is a form of resolving contractual disputes existing from 1996 and created especially to the needs of the construction industry. It is included in the JCT contracts as a standard. Both sides have to agree to it when signing a contract. Read More...
Arbitration
An alternative to the court proceedings, established for many decades. Initially this solution was simple and inexpensive, however in the last few decades procedures and costs neared to those incurred by full judicial action. Read More...
Litigation
Is a term to describe formalised judicial proceedings. It is available to both parties of a contract. The only occasion, when parties lose their right to litigation as a consequence of former use of 'arbitration'. Read More...
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