# Risk and Insurance **URL:** https://reachback.builtintelligence.com/c/nec3-and-nec4-contracts/risk-and-insurance/21.md [Latest](https://reachback.builtintelligence.com/latest.md) · [Categories](https://reachback.builtintelligence.com/categories.md) · [Tags](https://reachback.builtintelligence.com/tags.md) --- ## [About the Risk and Insurance category](https://reachback.builtintelligence.com/t/about-the-risk-and-insurance-category/26)
**Author:** [@system](https://reachback.builtintelligence.com/u/system)\ **Replies:** 0\ **Last updated:** [27 February 2020 19:05 UTC](https://reachback.builtintelligence.com/t/about-the-risk-and-insurance-category/26 "2020-02-27T19:05:57Z")
(Replace this first paragraph with a brief description of your new category. This guidance will appear in the category selection area, so try to keep it below 200 characters.) Use the following paragraphs for a longer d… --- ## [Risk allowance under NEC](https://reachback.builtintelligence.com/t/risk-allowance-under-nec/8024)
**Author:** [@tagore007](https://reachback.builtintelligence.com/u/tagore007)\ **Replies:** 1\ **Last updated:** [14 June 2024 08:10 UTC](https://reachback.builtintelligence.com/t/risk-allowance-under-nec/8024 "2024-06-14T08:10:46Z")
Is there any case law related to risk allowance consideration for CE. Or, what is the implied obligation related to risk allowance that the project manager should consider during his assessment. --- ## [NEC4 PSC: PII Level v Cap](https://reachback.builtintelligence.com/t/nec4-psc-pii-level-v-cap/21558)
**Author:** [@Mapreader](https://reachback.builtintelligence.com/u/Mapreader)\ **Replies:** 1\ **Last updated:** [6 February 2024 09:20 UTC](https://reachback.builtintelligence.com/t/nec4-psc-pii-level-v-cap/21558 "2024-02-06T09:20:52Z")
Dear All, Whilst drafting the NEC4 PSC Contract data, X18: Clause… can anyone kindly advise if this is being implemented correctly. I believe the level of insurance, for example the PII is to be displayed in the Insuran… --- ## [Professional Indemnity Insurance query (NEC4)](https://reachback.builtintelligence.com/t/professional-indemnity-insurance-query-nec4/21444)
**Author:** [@TheGaz1982](https://reachback.builtintelligence.com/u/TheGaz1982)\ **Replies:** 4\ **Last updated:** [21 November 2023 08:49 UTC](https://reachback.builtintelligence.com/t/professional-indemnity-insurance-query-nec4/21444 "2023-11-21T08:49:05Z")
Hi, I was just wondering if there is a standard way to calculate how much Professional Indemnity insurance my subcontractors would need to have in place- especially when they are not providing a professional service, bu… --- ## [Contract Data part one: Insurances and Policy Excesses](https://reachback.builtintelligence.com/t/contract-data-part-one-insurances-and-policy-excesses/21175)
**Author:** [@Brian](https://reachback.builtintelligence.com/u/Brian)\ **Replies:** 6\ **Last updated:** [3 August 2023 06:12 UTC](https://reachback.builtintelligence.com/t/contract-data-part-one-insurances-and-policy-excesses/21175 "2023-08-03T06:12:41Z")
Can anyone help with this query, please? --- ## [Contract Data part one: Risks and Insurance](https://reachback.builtintelligence.com/t/contract-data-part-one-risks-and-insurance/20284)
**Author:** [@Brian](https://reachback.builtintelligence.com/u/Brian)\ **Replies:** 0\ **Last updated:** [5 April 2023 12:19 UTC](https://reachback.builtintelligence.com/t/contract-data-part-one-risks-and-insurance/20284 "2023-04-05T12:19:51Z")
In Contract Data part one under Risks and Insuranace an Employer has correctly written in the minimum limits of indemity they require for a Project. However, they have also written in a maximum amount of “policy excess”… --- ## [NEC4 - Contra Charges](https://reachback.builtintelligence.com/t/nec4-contra-charges/20239)
**Author:** [@Green](https://reachback.builtintelligence.com/u/Green)\ **Replies:** 1\ **Last updated:** [30 March 2023 13:06 UTC](https://reachback.builtintelligence.com/t/nec4-contra-charges/20239 "2023-03-30T13:06:21Z")
Contractor on NEC4 Option C scheme, we are being Contra Charged costs accrued by our client as a result of our defect. However, some of the costs are far higher than we expected, i.e. two days plant hire costs which exce… --- ## [NEC4 ECC Option B - Stolen Materials](https://reachback.builtintelligence.com/t/nec4-ecc-option-b-stolen-materials/19992)
**Author:** [@Green](https://reachback.builtintelligence.com/u/Green)\ **Replies:** 3\ **Last updated:** [30 March 2023 10:44 UTC](https://reachback.builtintelligence.com/t/nec4-ecc-option-b-stolen-materials/19992 "2023-03-30T10:44:47Z")
We are the subcontractor on a highways scheme, one of our sub-subcontractors has delivered materials to site within the working area but they have been stolen overnight. The contract we have with the main contractor incl… --- ## [3rd Party Damage Liability](https://reachback.builtintelligence.com/t/3rd-party-damage-liability/17157)
**Author:** [@MJR](https://reachback.builtintelligence.com/u/MJR)\ **Replies:** 1\ **Last updated:** [9 May 2022 22:18 UTC](https://reachback.builtintelligence.com/t/3rd-party-damage-liability/17157 "2022-05-09T22:18:16Z")
NEC3 Option B A Subcontractor is undertaking the groundworks package on a highway scheme. The method of working requires the Subcontractor to work in various areas either side and in the middle of the existing highway. … --- ## [NEC3 Professional Services Contract - Provision of Resource](https://reachback.builtintelligence.com/t/nec3-professional-services-contract-provision-of-resource/17198)
**Author:** [@TheGaz1982](https://reachback.builtintelligence.com/u/TheGaz1982)\ **Replies:** 4\ **Last updated:** [28 February 2022 13:39 UTC](https://reachback.builtintelligence.com/t/nec3-professional-services-contract-provision-of-resource/17198 "2022-02-28T13:39:37Z")
Hi, I am currently in the process of placing several NEC3 Professional Service contracts on various design sub-consultants, which are for the provision of their resource only (no scope is specified within the contracts)… --- ## [NEC4 Subcontract: Recovery of costs under Clause 82](https://reachback.builtintelligence.com/t/nec4-subcontract-recovery-of-costs-under-clause-82/16054)
**Author:** [@Shaun\_Farrelly](https://reachback.builtintelligence.com/u/Shaun_Farrelly)\ **Replies:** 0\ **Last updated:** [5 October 2021 10:33 UTC](https://reachback.builtintelligence.com/t/nec4-subcontract-recovery-of-costs-under-clause-82/16054 "2021-10-05T10:33:08Z")
We have a situation where a Subcontractor has damaged an item of plant which the Contractor had on hire. We intend to recover the cost of the damage under clause 82.1, which we believe is a Subcontractor’s liability und… --- ## [Damage to Subcontractor's Equipment by the Contractor](https://reachback.builtintelligence.com/t/damage-to-subcontractors-equipment-by-the-contractor/15095)
**Author:** [@BH56](https://reachback.builtintelligence.com/u/BH56)\ **Replies:** 2\ **Last updated:** [29 June 2021 08:44 UTC](https://reachback.builtintelligence.com/t/damage-to-subcontractors-equipment-by-the-contractor/15095 "2021-06-29T08:44:21Z")
A subcontractor has brought Equipment to site which is the responsibility of the Contractor to unload and is stated as so in the Works Information. During unloading the Contractor has damaged this Equipment. I would have… --- ## [Takeover & Sectional Completion under NEC 3 Option A](https://reachback.builtintelligence.com/t/takeover-sectional-completion-under-nec-3-option-a/15047)
**Author:** [@Meady20](https://reachback.builtintelligence.com/u/Meady20)\ **Replies:** 1\ **Last updated:** [22 June 2021 07:27 UTC](https://reachback.builtintelligence.com/t/takeover-sectional-completion-under-nec-3-option-a/15047 "2021-06-22T07:27:01Z")
The Employer is contemplating a Takeover of the the building ahead of Completion with the exception of three areas. Access for the Contractor will still be required in the whole building. Whilst the Employer assumes a ri… --- ## [NEC3 ECC Option A](https://reachback.builtintelligence.com/t/nec3-ecc-option-a/7662)
**Author:** [@Derek\_Logue](https://reachback.builtintelligence.com/u/Derek_Logue)\ **Replies:** 0\ **Last updated:** [2 February 2021 13:15 UTC](https://reachback.builtintelligence.com/t/nec3-ecc-option-a/7662 "2021-02-02T13:15:30Z")
We have a contract where the Employer has taken over parts of the works prior to the Defects certificate has been issued. A part of the works taken over by the employer has been vandalised so who is responsible for the r… --- ## [NEC3: Insurance cost increase](https://reachback.builtintelligence.com/t/nec3-insurance-cost-increase/6919)
**Author:** [@robbo](https://reachback.builtintelligence.com/u/robbo)\ **Replies:** 1\ **Last updated:** [31 December 2020 10:05 UTC](https://reachback.builtintelligence.com/t/nec3-insurance-cost-increase/6919 "2020-12-31T10:05:03Z")
We are 5 years into a 7-year NEC3 Contract and the Contractor has provided evidence of a significant increase in their insurance premiums. This doesn’t seem to be the result of a change in the law and the insurance is sp… --- ## [NEC ECC Option C: Activity Schedule, Risk and total of the Prices (target cost)](https://reachback.builtintelligence.com/t/nec-ecc-option-c-activity-schedule-risk-and-total-of-the-prices-target-cost/7304)
**Author:** [@SPacer](https://reachback.builtintelligence.com/u/SPacer)\ **Replies:** 5\ **Last updated:** [11 December 2020 15:51 UTC](https://reachback.builtintelligence.com/t/nec-ecc-option-c-activity-schedule-risk-and-total-of-the-prices-target-cost/7304 "2020-12-11T15:51:38Z")
Hello all, This is a question on how / if project risk is accounted for in an activity schedule and so the target cost (total of the Prices). Under an Option C contract, the Activity Schedule named in the Contract data… --- ## [NEC 4 TSC x18 Consequential Loss](https://reachback.builtintelligence.com/t/nec-4-tsc-x18-consequential-loss/7222)
**Author:** [@lee.harrington](https://reachback.builtintelligence.com/u/lee.harrington)\ **Replies:** 2\ **Last updated:** [26 November 2020 12:55 UTC](https://reachback.builtintelligence.com/t/nec-4-tsc-x18-consequential-loss/7222 "2020-11-26T12:55:03Z")
If clause x18 has been selected but the indirect/consequential loss value has been left blank does this mean this is uncapped or excluded? All other values under x18 have been completed. --- ## [ECC Option B - Contractors Design Risk](https://reachback.builtintelligence.com/t/ecc-option-b-contractors-design-risk/6318)
**Author:** [@UnknownUser](https://reachback.builtintelligence.com/u/UnknownUser)\ **Replies:** 1\ **Last updated:** [10 August 2020 08:11 UTC](https://reachback.builtintelligence.com/t/ecc-option-b-contractors-design-risk/6318 "2020-08-10T08:11:05Z")
The Contractor has submitted a design for cladding for approval from the Project Manager, but is asking for urgent approval to commence straightaway. The Contractor has stated they will take all risk of the design being … --- ## [NEC ECC: If the insurance policy for the Contractor expires after completing the works,, how would this be dealt with under the NEC3 ECC contract??](https://reachback.builtintelligence.com/t/nec-ecc-if-the-insurance-policy-for-the-contractor-expires-after-completing-the-works-how-would-this-be-dealt-with-under-the-nec3-ecc-contract/5916)
**Author:** [@Samatar](https://reachback.builtintelligence.com/u/Samatar)\ **Replies:** 3\ **Last updated:** [24 June 2020 09:47 UTC](https://reachback.builtintelligence.com/t/nec-ecc-if-the-insurance-policy-for-the-contractor-expires-after-completing-the-works-how-would-this-be-dealt-with-under-the-nec3-ecc-contract/5916 "2020-06-24T09:47:21Z")
Would insurance be required when the Contractor completes the works? Also how would this normally be addressed in the contracts? --- ## [NEC ECC: Take Off Risks under Option C Contracts](https://reachback.builtintelligence.com/t/nec-ecc-take-off-risks-under-option-c-contracts/5845)
**Author:** [@chrismdavis99](https://reachback.builtintelligence.com/u/chrismdavis99)\ **Replies:** 1\ **Last updated:** [19 May 2020 14:15 UTC](https://reachback.builtintelligence.com/t/nec-ecc-take-off-risks-under-option-c-contracts/5845 "2020-05-19T14:15:21Z")
Under NEC Option C, can the contractor include a risk allowance for quantities even when they themselves have produced the design and drawings ? If so how can the two parties determine what is acceptable, ie 5% addition… --- ## [NEC ECC: Who carries the risk when a subcontractor goes into administration](https://reachback.builtintelligence.com/t/nec-ecc-who-carries-the-risk-when-a-subcontractor-goes-into-administration/5822)
**Author:** [@turleya](https://reachback.builtintelligence.com/u/turleya)\ **Replies:** 1\ **Last updated:** [4 May 2020 17:33 UTC](https://reachback.builtintelligence.com/t/nec-ecc-who-carries-the-risk-when-a-subcontractor-goes-into-administration/5822 "2020-05-04T17:33:12Z")
If an accepted sub-contractor is supplying & installing bespoke plant and goes into administration before their element of the works are complete, it is my understanding that this is not an Employer’s risk and therefore … --- ## [NEC ECSC: Contractors Design Liability under ECSC](https://reachback.builtintelligence.com/t/nec-ecsc-contractors-design-liability-under-ecsc/5806)
**Author:** [@SL58](https://reachback.builtintelligence.com/u/SL58)\ **Replies:** 1\ **Last updated:** [28 April 2020 16:39 UTC](https://reachback.builtintelligence.com/t/nec-ecsc-contractors-design-liability-under-ecsc/5806 "2020-04-28T16:39:12Z")
I have a Client who has let an ECSC contract including Contractor design, some of which has turned out to be defective, leading to re-build costs that the Contractor is currently unwilling to meet. Clause 14.4 suggests … --- ## [NEC ECSC: Does the ECSC adequately deal with the Contractors obligation and liability for Contractors design?](https://reachback.builtintelligence.com/t/nec-ecsc-does-the-ecsc-adequately-deal-with-the-contractors-obligation-and-liability-for-contractors-design/5788)
**Author:** [@SL58](https://reachback.builtintelligence.com/u/SL58)\ **Replies:** 2\ **Last updated:** [23 April 2020 11:21 UTC](https://reachback.builtintelligence.com/t/nec-ecsc-does-the-ecsc-adequately-deal-with-the-contractors-obligation-and-liability-for-contractors-design/5788 "2020-04-23T11:21:28Z")
I worry about the amount of attention given to Contractors’ design liability in the ECSC… Firstly, in the absence of any specific clause or option, is the obligation “fitness for purpose” or “reasonable skill and care”? … --- ## [NEC ECS: Take over before Completion Date and Sectional Completion](https://reachback.builtintelligence.com/t/nec-ecs-take-over-before-completion-date-and-sectional-completion/5664)
**Author:** [@Andy\_L](https://reachback.builtintelligence.com/u/Andy_L)\ **Replies:** 2\ **Last updated:** [5 March 2020 15:06 UTC](https://reachback.builtintelligence.com/t/nec-ecs-take-over-before-completion-date-and-sectional-completion/5664 "2020-03-05T15:06:03Z")
The subcontract is NEC3 Option B. In the Part1 contract data the Contractor has stated that they are not willing to take over the subcontract works before the Completion Date. The work is to install a motorway CCTV syste… --- ## [NEC PSC - Appropriate durations for liability insurances](https://reachback.builtintelligence.com/t/nec-psc-appropriate-durations-for-liability-insurances/5632)
**Author:** [@SL58](https://reachback.builtintelligence.com/u/SL58)\ **Replies:** 2\ **Last updated:** [26 February 2020 12:59 UTC](https://reachback.builtintelligence.com/t/nec-psc-appropriate-durations-for-liability-insurances/5632 "2020-02-26T12:59:24Z")
I’m about to tender a design using NEC4 PSC for works that will be handed to a third party that may (or may not) construct the works at an unspecified later date. What insurance periods following completion (of the desi… --- ## [NEC ECSC: Indemnities Cl.81.2](https://reachback.builtintelligence.com/t/nec-ecsc-indemnities-cl-81-2/5425)
**Author:** [@Orwell](https://reachback.builtintelligence.com/u/Orwell)\ **Replies:** 3\ **Last updated:** [5 December 2019 09:40 UTC](https://reachback.builtintelligence.com/t/nec-ecsc-indemnities-cl-81-2/5425 "2019-12-05T09:40:05Z")
We are working under the ECC NEC3 Short contract. The Employer has chosen to engage each trade on the project under separate contracts. The issue we have encountered is that whilst there were notified defects on the sc… --- ## [NEC ECC: If an area of the Site physically changes post award of the contract who's risk is it?](https://reachback.builtintelligence.com/t/nec-ecc-if-an-area-of-the-site-physically-changes-post-award-of-the-contract-whos-risk-is-it/4981)
**Author:** [@PM10101](https://reachback.builtintelligence.com/u/PM10101)\ **Replies:** 6\ **Last updated:** [2 December 2019 10:12 UTC](https://reachback.builtintelligence.com/t/nec-ecc-if-an-area-of-the-site-physically-changes-post-award-of-the-contract-whos-risk-is-it/4981 "2019-12-02T10:12:27Z")
If an area of the Site physically changes post award of the contract who carries the risk? Cl. 60.1(12), 60.2 & 60.3 are all removed from the contract. --- ## [NEC ECC: Actual Defined Cost](https://reachback.builtintelligence.com/t/nec-ecc-actual-defined-cost/5428)
**Author:** [@David\_W](https://reachback.builtintelligence.com/u/David_W)\ **Replies:** 1\ **Last updated:** [29 November 2019 20:02 UTC](https://reachback.builtintelligence.com/t/nec-ecc-actual-defined-cost/5428 "2019-11-29T20:02:23Z")
With regard to for example an NEC 3 Option C Target Cost Contract, what happens to Actual Defined Costs ? : E.G. The Cost of a Construction Manager working for a Contractor via a Limited Company / PSC on a Day Rate o… --- ## [NEC ECC: Effects of IR35 Legislation](https://reachback.builtintelligence.com/t/nec-ecc-effects-of-ir35-legislation/5426)
**Author:** [@David\_W](https://reachback.builtintelligence.com/u/David_W)\ **Replies:** 1\ **Last updated:** [29 November 2019 07:35 UTC](https://reachback.builtintelligence.com/t/nec-ecc-effects-of-ir35-legislation/5426 "2019-11-29T07:35:03Z")
With whom does the Risk of the forthcoming proposed change in IR 35 Legislation lie under NEC contracts? --- ## [NEC ECS: Option A - lost plant on site](https://reachback.builtintelligence.com/t/nec-ecs-option-a-lost-plant-on-site/5415)
**Author:** [@engineering](https://reachback.builtintelligence.com/u/engineering)\ **Replies:** 1\ **Last updated:** [22 November 2019 11:23 UTC](https://reachback.builtintelligence.com/t/nec-ecs-option-a-lost-plant-on-site/5415 "2019-11-22T11:23:04Z")
A Subcontractor working on an NEC3 Option A was instruction via a PMI to rent a piece of lifting equipment, part of the instruction included the need for others to be able to use this equipment periodically. The lifting … [Next page](https://reachback.builtintelligence.com/c/nec3-and-nec4-contracts/risk-and-insurance/21.md?page=1)