This document provides a summary of a lecture on insuring risk in construction projects. It discusses the various parties involved in construction projects and the risks they face, such as delays, claims, insolvency, design flaws, and more. It then outlines the various types of insurance commonly used in construction, including contractors' all risk policies, professional indemnity, and more. The document discusses several legal cases that relate to interpreting insurance contract clauses and exclusions. It examines issues like whether rectification costs are covered, how cross-liability and waiver of subrogation clauses work, and when insurance payouts might reduce damages owed.
A comprehensive presentation on the financial risks involved in businesses in general & specifically in banks.
What is Risk?
Generally - Danger, Hazard, Adverse impact, Fear of loss.
Financially-Loss of earnings/capital
May result in incapability of financial institution to meet business goals
Basically there are 4 main risks:
1. Credit Risk
2. Market Risk
3. Liquidity Risk
4. Operational Risk
A brief paper exploring the contractual tools applied by framers of oil and gas contractors to allocate risks between and among parties to O&G undertakings
A comprehensive presentation on the financial risks involved in businesses in general & specifically in banks.
What is Risk?
Generally - Danger, Hazard, Adverse impact, Fear of loss.
Financially-Loss of earnings/capital
May result in incapability of financial institution to meet business goals
Basically there are 4 main risks:
1. Credit Risk
2. Market Risk
3. Liquidity Risk
4. Operational Risk
A brief paper exploring the contractual tools applied by framers of oil and gas contractors to allocate risks between and among parties to O&G undertakings
Special contracts of indemnity and guarantee - Legal aspects of managementsaranshjain50
This slide covers the Contract of Indemnity and Contract of Guarantee.
What is a contract of Indemnity
What is a contract of Guarantee
Case studies
Special types of contracts form legal aspects of management or business law.
This slide is very useful for the students studying business law covering in-depth information.
التأمين عقد به يلتزم المؤمن ان يؤدي إلى المؤمن له، أو إلى المستفيد مبلغ ا من
المال أو ايراد اً أو مرتب ا أو أي عوض مالي آخر، في حالة وقوع الحادث المؤمن
ضده، وذلك في مقابل اقساط أو أية دفعة مالية اخرى يؤديها المؤمن له إلى
المؤمن.
Clause 14.1 The Contract Price- Understanding Clauses in FIDIC ‘Conditions of...Divyanshu Dayal
•Contract Price is an agreed amount or lump sum amount for the design, execution and completion of the works, remedying of defects and adjustments.
•The Contract Price is inclusive of all taxes, duties and fees and adjusted as per changes in legislation.
•The Contract Price is linked with variation, legislation, access to site, delay damages, provisional sum, costs, unforeseeable difficulties, employer’s risk etc.
APM webinar sponsored by the Thames Valley Branch on 23 September 2022
Speaker: Richard Patterson, NEC4 drafter and Procurement & NEC Specialist at Mott MacDonald
A 'Framework' is a contract to let contracts. The NEC Framework Contract is a contract for suppliers under which the Client can let specific 'call off' contracts to those suppliers using any of the standard NEC contracts. This webinar was held on 23 September 2022.
The session covered how the NEC Framework contract is put together and used.
https://www.apm.org.uk/news/nec-framework-contract-webinar/
https://youtu.be/l7eRQdplJxs
Marine insurance is a contract whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby by agreed, against marine losses, i.e. the losses incident to marine adventure
Effect of construction delays on project time overruneSAT Journals
Abstract The time and cost for performance of a project are usually important to the employer and contractor. About 57% of Indian construction projects are experiencing time overrun. These time overruns always contributed as expensive to all parties. This paper highlights the types of construction delays due to which project suffer time and cost overrun. Construction delay is considered to be one of the recurring problems in the construction industry and it has an adverse effect on project success in terms of time, cost and quality. The construction industry is the tool through which a society achieves its goal of urban and rural development. It is one of the sectors that provides important ingredient for the development of an economy. This paper studies external and internal factors that influence the construction process and outlines the effect of delay in large construction projects. Various media reports shows incidents of extended delays and extensive cost overruns in infrastructure projects. These delayed projects are further can conclude additional delays and this affects an ongoing projects and also new projects which could not be started due to pending projects whose completion date already elongated. Realizing the density of matter this paper studies the performance of previous year 2012 ongoing and also completed projects. These projects are from around 17 various central sectors costing Rs. 1000 crore and above (Mega Projects). Keywords: Delays, Time overrun, Cost overrun, Megaprojects etc
The Second Edition of the Rainbow Suite is considerably longer, more detailed. The update addresses issues raised by users over the past 18 years and reflects current international best practice. The presentation analysis changes in Yellow & Silver Books as they apply to EPC & PPP Contracts from the perspectives of Public Entities, Contractors and Lenders.
Bailment describes a legal relationship in common law where physical possession of personal property, or a chattel, is transferred from one person (the "bailor") to another person (the "bailee") who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping and is a cause of action independent of contract or tort.
Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel. Bailment is a typical common law concept although similar concepts exist in civil law (Spain- Depósito).
In addition, unlike a lease or rental, where ownership remains with the lessor but the lessee is allowed to use the property, the bailee is generally not entitled to the use of the property while it is in his possession.
A common example of bailment is leaving your car with a valet. Leaving your car in an unattended parking garage is typically a license rather than a bailment, as the car park's intent to possess your car cannot be shown. However, bailments arise in many other situations, including terminated leases of property, warehousing (including store-it-yourself) or in a carriage of goods.
The Law of Penalties - ANZ v Andrews and beyond Laina Chan
In https://www.youtube.com/watch?v=TVVSSbLUm0g, Ian Bailey SC and Laina Chan barristers, discuss the developments in the law of penalties since ANZ v Andrews. They also consider the approach of the Supreme Court in the UK in the first of a series of Chatz with Bailey SC and Chan in Cavendish Square Holding BV v Talai El Makdessi [2015] UKSC 67. This is the powerpoint that accompanies the chatz
Special contracts of indemnity and guarantee - Legal aspects of managementsaranshjain50
This slide covers the Contract of Indemnity and Contract of Guarantee.
What is a contract of Indemnity
What is a contract of Guarantee
Case studies
Special types of contracts form legal aspects of management or business law.
This slide is very useful for the students studying business law covering in-depth information.
التأمين عقد به يلتزم المؤمن ان يؤدي إلى المؤمن له، أو إلى المستفيد مبلغ ا من
المال أو ايراد اً أو مرتب ا أو أي عوض مالي آخر، في حالة وقوع الحادث المؤمن
ضده، وذلك في مقابل اقساط أو أية دفعة مالية اخرى يؤديها المؤمن له إلى
المؤمن.
Clause 14.1 The Contract Price- Understanding Clauses in FIDIC ‘Conditions of...Divyanshu Dayal
•Contract Price is an agreed amount or lump sum amount for the design, execution and completion of the works, remedying of defects and adjustments.
•The Contract Price is inclusive of all taxes, duties and fees and adjusted as per changes in legislation.
•The Contract Price is linked with variation, legislation, access to site, delay damages, provisional sum, costs, unforeseeable difficulties, employer’s risk etc.
APM webinar sponsored by the Thames Valley Branch on 23 September 2022
Speaker: Richard Patterson, NEC4 drafter and Procurement & NEC Specialist at Mott MacDonald
A 'Framework' is a contract to let contracts. The NEC Framework Contract is a contract for suppliers under which the Client can let specific 'call off' contracts to those suppliers using any of the standard NEC contracts. This webinar was held on 23 September 2022.
The session covered how the NEC Framework contract is put together and used.
https://www.apm.org.uk/news/nec-framework-contract-webinar/
https://youtu.be/l7eRQdplJxs
Marine insurance is a contract whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby by agreed, against marine losses, i.e. the losses incident to marine adventure
Effect of construction delays on project time overruneSAT Journals
Abstract The time and cost for performance of a project are usually important to the employer and contractor. About 57% of Indian construction projects are experiencing time overrun. These time overruns always contributed as expensive to all parties. This paper highlights the types of construction delays due to which project suffer time and cost overrun. Construction delay is considered to be one of the recurring problems in the construction industry and it has an adverse effect on project success in terms of time, cost and quality. The construction industry is the tool through which a society achieves its goal of urban and rural development. It is one of the sectors that provides important ingredient for the development of an economy. This paper studies external and internal factors that influence the construction process and outlines the effect of delay in large construction projects. Various media reports shows incidents of extended delays and extensive cost overruns in infrastructure projects. These delayed projects are further can conclude additional delays and this affects an ongoing projects and also new projects which could not be started due to pending projects whose completion date already elongated. Realizing the density of matter this paper studies the performance of previous year 2012 ongoing and also completed projects. These projects are from around 17 various central sectors costing Rs. 1000 crore and above (Mega Projects). Keywords: Delays, Time overrun, Cost overrun, Megaprojects etc
The Second Edition of the Rainbow Suite is considerably longer, more detailed. The update addresses issues raised by users over the past 18 years and reflects current international best practice. The presentation analysis changes in Yellow & Silver Books as they apply to EPC & PPP Contracts from the perspectives of Public Entities, Contractors and Lenders.
Bailment describes a legal relationship in common law where physical possession of personal property, or a chattel, is transferred from one person (the "bailor") to another person (the "bailee") who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping and is a cause of action independent of contract or tort.
Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel. Bailment is a typical common law concept although similar concepts exist in civil law (Spain- Depósito).
In addition, unlike a lease or rental, where ownership remains with the lessor but the lessee is allowed to use the property, the bailee is generally not entitled to the use of the property while it is in his possession.
A common example of bailment is leaving your car with a valet. Leaving your car in an unattended parking garage is typically a license rather than a bailment, as the car park's intent to possess your car cannot be shown. However, bailments arise in many other situations, including terminated leases of property, warehousing (including store-it-yourself) or in a carriage of goods.
The Law of Penalties - ANZ v Andrews and beyond Laina Chan
In https://www.youtube.com/watch?v=TVVSSbLUm0g, Ian Bailey SC and Laina Chan barristers, discuss the developments in the law of penalties since ANZ v Andrews. They also consider the approach of the Supreme Court in the UK in the first of a series of Chatz with Bailey SC and Chan in Cavendish Square Holding BV v Talai El Makdessi [2015] UKSC 67. This is the powerpoint that accompanies the chatz
Rob Harper SC & Laina Chan How to brief counsel and WhyLaina Chan
There are many myths surrounding the briefing of counsel. See http://www.lawyersweekly.com.au/careers/briefing-counsel-the-myths. This set of slides provides a practical step by step approach to briefing counsel both traditionally and digitally.
Powerpoint for New York State Bar LectureLaina Chan
Powerpoint used in the lecture on 29 October 2014 to the New York State Bar presented at Hinshaw & Culbertson on the Enforcement of International Arbitral Awards in the Asia Pacific. An event supported by the International Subcommittees for International Arbitration, Insurance and Reinsurance as well as the Chinese American Bar Association
“Risk Management in Premises Liability”
Requires Quality Control in Design, Construction & Maintenance
Slip and Fall Accidents caused by slippery floors, standing water and foreign objects, ice and snow.
Trip and Fall Accidents caused by uneven floor surfaces, faulty steps, poor lighting and house keeping.
Falling objects from store shelves, adjacent construction work, dead or dying trees.
Malfunctioning equipment, including automatic door closures, escalators and elevators.
Lack of security, insufficient lighting and surveillance, lack of access controls and building and grounds features enabling criminal intent or facilitating accidents.
Pool drowning.
Recently, Construction IQ conducted an online survey on construction project risk management. Some valuable statistics emerged from the results. Have a look at what your colleagues and peers in the industry had to say…
Construction Accidents – Managing the Risks
The construction industry has had a disproportionately high rate of accidents for its size. According to Department of Labor (DOL) 2006 statistics, construction accounted for 7% of the U.S. workforce, but claimed 21% of all occupational fatalities and 10% of all disabling occupational injuries.
NIOSH, the National Institute for Safety and Health released statistics showing that one of every five workplace fatalities in the U.S. is a construction worker. Since construction workers handle dangerous equipment and situations on a daily basis, these accident statistics may not come as a surprise.
In 2006, the Pennsylvania Bureau of Workers’ Compensation received reports on 10,055 construction-related injuries. Despite extensive federal and state regulations designed to maintain safe worksites, 21 construction workers suffered fatal injuries in 2006 in Pennsylvania, an increase from 14 fatalities of the previous year.
This presentation will review root causes of construction accidents, OSHA’s role of “the work place safety gatekeeper” and the various duties of care for contractors and sub contractors. Identification of hazard factors affecting managing safety in assembly, erection, excavation and demolition operations in order to analyze their effect to the risk of accident occurrence.
Additionally the design professional’s opportunity and obligation to design for safety will be reviewed.
This presentation will demonstrate by review of case histories how risks can be managed and if not what liabilities can be incurred.
Civil Engineering Completed Risks or Completed Construction InsuranceLajpat Ray Chandnani
CECR insurance is a relatively new form of insurance and may also be described as ‘Completed Construction Insurance’ (CCI) or simply Property Insurance. CECR. It is an insurance cover for existing structures where fire is not the predominant exposure. The cover can be on an “all risk” or “named perils” basis.
To help all concerned understand the complex cover in simple terms I have prepared a PPT covering Civil Engineering Completed Risks (CECR) Engineering as also Civil Engineering Completed Risks (CECR Liability which is enclosed for your free use, edit, amend to spread General Insurance Education, Knowledge and Awareness.
Hope you will find it quite interesting.
This presentation analyses, from an English law perspective only, some of the key defects exclusions and how they respond to claims by Employers, Contractors and Sub-Contractors. It also briefly discusses how the English courts determine the stage at which a defect in property develops into damage.
The Presentation on Engineering Insurance help us knowing more about the different types of Insurance Policies for various types of engineering projects as there are different types of product available under engineering insurance and referring this presentation will let you know about engineering insurance.
Group Builders Update - Tred Eyerly, Esq. www.insurancelawhawaii.cominversecondemnation
Damon Key attorney Tred Eyerly's powerpoint presentation on the Group Builders issue (insurance coverage for construction defects). Hawaii State Bar Association Litigation Section - May 2013
It is a power point presentation for fire insurance. It is mostly applicable for Iran's insurance industry but it also covers fire insurance for worldwide purposes.
Similar to Insuring Risk in Construction Projects (20)
Laina discussed the impact on claims of the extended statutory duty of care in the Design and Building Practitioners Act 2020 (NSW) and the recovery of damages in construction claims at the 2023 UNSW Edge Construction Law Edge.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The Role of Non-Banking Financial Companies (NBFCs)
Insuring Risk in Construction Projects
1. Insuring Risk
In Construction Projects
Lecture by:
Laina Chan, Barrister
Nine Wentworth Chambers, Sydney
For: University of Melbourne
2. Financiers
Developers
Head Contractor
Design Consultant Sub-Contractors
Economic viability
Cash flow can be impacted upon by
delays
Claims against the contractor
Insolvency of major parties
Design risk which can be laid off to design sub-consultants
Unforseen site conditions
Construction risk in terms of defects supervision
Responsibility for the work of subcontractors
Specified, defect and warranty obligations
Delay, penalties and liquidated damages claims
Monitor and ensure compliance with insurance requirementsNegligence and defective design
Job delivered late
Job delivered with defects
Increased costs
Risk Diagram
3. Types of Insurance
– Contractors’ All Risk policies;
– Industrial Special Risk policies which take over
insurance of the project once the works are complete;
– Professional Indemnity;
– Public liability insurance;
– Workers’ Compensation;
– Compulsory third party
motor vehicle; and
– Marine cargo or transit.
4. Trident General Insurance Co Ltd v
McNiece Bros Pty Ltd (1988) 165 CLR 107
Applicable in the context of public liability
insurance and property insurance.
Common law exception to the rules of privity
of contract and consideration;
5. Insurance Contracts Act 1984
48(1) Where a person who is not a party to a contract of
general insurance is specified or referred to in the
contract, whether by name or otherwise, as a person to
whom the insurance cover provided by the contract
extends, that person has a right to recover the amount of
the person’s loss from the insurer in accordance with the
contract notwithstanding that the person is not a party to
the contract.
16(1) A contract of general insurance is not void by reason only that the insured did not
have, at the time when the contract was entered into, an interest in a subject-matter of the
contract.
17(1) Where the insured under a contract of general
insurance has suffered a pecuniary or economic loss
by reason that property the subject-matter of the
contract has been damaged or destroyed, the insurer
is not relieved of liability under the contract by reason
only that, at the time of the loss, the insured did not
have an interest at law or in equity in the property.
7. Graham Evans & Co (Qld) Pty Limited v
Vanguard Insurance Company Limited
(1987) 4 ANZ Insurance Cases 60-772
“…all risks of physical loss of or damage to property of every kind and
description (including the whole of the Contract Plant, Equipment, Materials
and Supplies up to but not exceeding the respective sums insured in the
Schedule owned by the Insured or for which the Insured may be responsible
or, prior to any occurrence for which may be made hereunder, assumed
responsibility, used or to be used
in part of or incidental to the
Insured’s Contracting Operations
detailed in the Schedule.”
8. Chalmers Leask Underwriting Agencies v
May Nicholas Limited (1983) 155 CLR 279
“…loss or damage directly caused by
defective workmanship, material or
design or wear and tear or mechanical
breakdown or normal upkeep or normal
making good but so that this exclusion
shall be limited to the part immediately
affected and shall not apply to any other
part or parts lost or damage in
consequence thereof…”
Vehicles passing over a coffer dam damaged the coffer dam (which was alleged
to be defective). Flood waters breaching the coffer dam and caused damage to
the construction works including leaving behind deposits of silt and debris.
Q: Is the cost of rectifying the damage to the construction works
(but not the cost of repair of the coffer dam) insured under the policy?
9. Walkers Civil Engineering v Sun Alliance & London
Insurance PLC & Ors (1999) 10 ANZ Ins Cases 61-
418
• Similar exclusion clause to clause construed in Chalmers Leask
• The insuring clause provided:
“This section, subject to the limitations, exclusions, terms and
conditions hereinafter mentioned, is to insure in respect of occurrences
happening during the period stated in the Schedule against all risks of
physical loss of or damage to property of every kind and description
(including the whole of the contract plant, equipment, materials and
supplies up to but not exceeding the respective sums Insured in the
Schedule) owned by the insured or for which the Insured may be
responsible or, prior to any occurrence for which claim may be made
hereunder, have assumed responsibility, use or to be used in part of or
incidental to the “Insured’s Contracting Operations” detailed in the
Schedule wherever the said property may be located in Australia or
whilst in transit within and between any place or places therein.”
10. Exclusion 2(c) provided:
Walkers Civil Engineering v Sun Alliance & London
Insurance PLC & Ors (1999) 10 ANZ Ins Cases 61-
418
“This insurance does not cover loss or damage directly caused by
defective workmanship, construction or design or wear and tear or
mechanical breakdown or normal upkeep or normal making good
but this exclusion shall be limited to the part which is defective and
shall not apply to any other part or parts lost or damaged in
consequence thereof.”
11. • Three sewerage treatment plants
• Cement poured onto fibreglass sewerage tanks to counter hydrostatic
ground pressure
• Fibreglass tanks defective
• Rectification works included the removal of the concrete
Q: Is the insured entitled to indemnity for the cost of the removal
of the concrete?
Walkers Civil Engineering v Sun Alliance & London
Insurance PLC & Ors (1999) 10 ANZ Ins Cases 61-
418
12. Cementation Piling & Foundations Limited v
Aegon Insurance Co Limited and Commercial Union
Insurance Co PLC [1995] 1 Lloyd’s Rep 97
(1) Rectification of the gaps and/or voids in the walls;
(2) Removal of the sand fill from the dock bed; and
(3) Grouting and filling behind the walls of the voids from which the
sand fill had escaped.
The losses suffered by Cementation fell into three distinct areas:
13. “… (2) the cost of replacing or rectifying defects in design, materials or
workmanship unless the property insured suffers actual loss,
destruction or damage as a result of such defects.
Cementation Piling & Foundations Limited v
Aegon Insurance Co Limited and Commercial Union
Insurance Co PLC [1995] 1 Lloyd’s Rep 97
The policy excludes:
However, initial costs of introducing
improvements, betterments or
corrections in the rectification of the
design, material or workmanship
causing such loss or damage shall
always be excluded.”
14. In deciding whether the costs of rectifying the gaps and voids in the wall
(category 1) were covered by the policy, the court looked at the exclusion
clauses in the policy:
Cementation Piling & Foundations Limited v
Aegon Insurance Co Limited and Commercial Union
Insurance Co PLC [1995] 1 Lloyd’s Rep 97
“It is common ground that an exception clause
cannot extend the cover from which the exception is
made. It is also, however, common ground that the
terms of an exception clause may provide material
from which the Court can discern that the first
possible meaning of the indemnity clause is to be
preferred to another or second possible meaning.”
16. Transfield Pty Limited v National Vulcan Engineering Ins Group Ltd & Ors;
Connell Wagner Pty Ltd National Vulcan Engineering Ins Group Ltd & Ors
(2003) 12 ANZ Insurance Cases 61-547
The policy had three sections:
Section C set out various
terms and conditions.
Section B covered legal liability under the
terms of any contract maintenance or defects
liability clauses for loss and/or damage in
identified circumstances
Section A provided insurance for loss or
damage to property owned by the insured or
for which the insured may have been
responsible.
17. Transfield Pty Limited v National Vulcan Engineering Ins Group Ltd & Ors;
Connell Wagner Pty Ltd National Vulcan Engineering Ins Group Ltd & Ors
(2003) 12 ANZ Insurance Cases 61-547
W&D Elliot
Earthmoving Pty
Ltd (Elliot)
DN Pearce &
Maintenance Pty
Ltd (Pearce)
Connell Wagner Coffey
Transfield
(Head Contractor)
Transfield Bouygues JV
Transfield Holdings
Pty Ltd
JV to construct a
section of railway
Subcontracted
with
18. (a) Pay on behalf of the Insured all sums which the
Insured shall become legally obligated to pay as
compensation for:
…
(2) loss of and/or damage to and/or destruction of property and/or the Loss of Use
thereof; in respect of and/or arising out of Occurrences happening anywhere in the
Geographical Limits during the Period of Insurance in connection with the
Construction Operation and/or Other Business Operations and/or Products
Liability/Completed Operations and/or Property Insured detailed in the Schedule.”
The Insuring Clause provided relevantly:
“The Insurers hereby agree, subject to the
limitations, terms and conditions hereafter mentioned,
that they will:
Transfield Pty Limited v National Vulcan Engineering Ins Group Ltd & Ors;
Connell Wagner Pty Ltd National Vulcan Engineering Ins Group Ltd & Ors
(2003) 12 ANZ Insurance Cases 61-547
19. “Exclusions applicable to Section C
This section shall not apply to liability:
…
for damage to property owned by the insured”
Transfield Pty Limited v National Vulcan Engineering Ins Group Ltd & Ors;
Connell Wagner Pty Ltd National Vulcan Engineering Ins Group Ltd & Ors
(2003) 12 ANZ Insurance Cases 61-547
20. The cross liability clause provided:
• “Each of the persons comprising the Insured shall for the purposes of this
policy be considered a separate and distinct unit and the words “the
Insured” shall be considered as applying to each of such persons in the
same manner as if a separate policy had been issued to each of them in his
name alone and the Insurers waive all rights of subrogation or action which
they may have or acquire against any of such persons. Provided that
nothing in this clause shall be deemed to increase the limit of the Insurers’
liability under this policy in respect of any one occurrence.
Transfield Pty Limited v National Vulcan Engineering Ins Group Ltd & Ors;
Connell Wagner Pty Ltd National Vulcan Engineering Ins Group Ltd & Ors
(2003) 12 ANZ Insurance Cases 61-547
21. Waiver of Subrogation
How wide is too ?
Does a waiver of subrogation clause only
apply to claims covered by the policy?
22. GPS Power Pty Ltd v Gardiner Willis Associates Pty Ltd
[2000] QSC 075
• The insurers agreed that “in the event of the insurers indemnifying or
making a payment to any insured(s), the insurers shall not exercise any
rights of subrogation against any other insured(s) hereunder.”
• The insurers also agreed “to waive any rights and remedies or relief to
which they may become entitled by subrogation against … [a]ny insured
named or described by this policy.”
23. Larson-Juhl Australia LLC v Jaywest International
Pty Ltd (2000) 11 ANZ Ins Cases 61-472 and 61-500
The New South Wales Court of appeal affirmed the decision of Master
MacReady who construed the following clause literally and held that there was
nothing in the clause to confine the generality of the phrase “shall waive any
rights and remedies or relief” :
1. Any co-insured (including its directors, officers and employees);
2. Any corporation or entity (including its directors, officers and
employees) owned or controlled by any insured or against any
co-owner of the property insured.”
“14.8.1 The insurer shall waive any rights and remedies or relief to which it is
or may become entitled by subrogation against:
24. Thiess Contractors Pty Ltd v Norcon Pty Ltd
(2001) 11 ANZ Ins cases 61-509
Should a plaintiff who had suffered loss as a result of a
defendant’s negligence,
but is the beneficiary of an insurance policy covering that
loss,
have the sum that it has received from the insurer taken into
account to reduce the damages recoverable from the
defendant?
25. “5. Further or alternatively, if the second third party [the respondent] breached clause
8.04 of the Norcon Subcontract as alleged or at all, which is not admitted, then:-
(a) at all material times the first third party [the appellant] had taken out its own public
liability policy of insurance (‘the Policy’), the further particulars of which the
second third party is not presently aware;
(b) the first third party has made a claim, or is entitled to make a claim, pursuant to
the Policy with respect to any liability that it has in these proceedings;
(c) further or alternatively to subparagraph (b) above, the first third party has been
granted indemnity pursuant to, or is entitled to be granted indemnity pursuant to,
the Policy;
(d) by reason of the matters pleaded above, there is no loss or liability in respect of
which the first third party is entitled to claim indemnity pursuant to any other
policy of insurance;
(e) the insurer or insurers on the Policy are not entitled to exercise a right of
subrogation so as to claim pursuant to another policy of insurance on behalf of
the first third party;
(f) the first third party has suffered no loss by reason of any breach by the second
third party of clause 8.04 of the Norcon Subcontract.”
In its defence, Norcon denied that it was a joint tortfeasor with Thiess Contractors.
It also pleaded the following paragraph:
Thiess Contractors Pty Ltd v Norcon Pty Ltd
(2001) 11 ANZ Ins cases 61-509