Takeover & Sectional Completion under NEC 3 Option A

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 risk of the loss, wear and damage of the parts of the works they have taken over (Cl 80) does this remove the obligation of the Contractor to insure against loss of or damage to property, bodily injury to or death of a person and employees as well as provide Principal Contractor duties under CDM?

An example of a particular scenario; Should an Employer’s Subcontractor carrying out work in areas taken over, act in a way that harms or injures others say the employee of one of our own subcontractors, who carries the liability?

Is a change to the Contract (Deed of Variation) to introduce a Sectional Completion under an existing X5 clause a cleaner way of delineating responsibilities?

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Insurances stated in the Insurance Table are required to be taken out in joint names of the Parties and provide cover, from the starting date to the Defects Certificate has been issued, for events which are at the Contractor’s risk. As you have said certain matters are no longer a Contractor’s risk following takeover, although this list is not comprehensive in terms of responsibility under the contract, including insurances.

Take over and use of the works is not normally detailed within the contract, so is effectively a change of circumstances, although permitted under clause 35. As insurance is a specialist subject I would seek particular advice on this matter to determine what is covered, especially in terms of your stated scenario.

I don’t see how the retrospective introduction of Sectional Completion would make this situation any ‘cleaner’ or easier to manage, especially as the insurance matter would need to be addressed in any event.