FIDIC contracts 2017—insurance
FIDIC contracts 2017—insurance

The following Construction practice note provides comprehensive and up to date legal information covering:

  • FIDIC contracts 2017—insurance
  • Liability or risk in the Works
  • Insurance of the Works
  • Other insurance
  • General insurance provisions

This Practice Note considers the insurance provisions in the FIDIC Red, Yellow and Silver Books 2017. It looks at liability for the Works, insurance of the Works and the other insurances which the Contractor must take out, including professional indemnity, public liability and employer’s liability insurance. For guidance on the 1999 editions, see Practice Note: FIDIC contracts (pre-2017 editions)—insurance.

The insurance requirements in the FIDIC Red, Yellow and Silver Books 2017, setting out which party takes out insurance, the amount and the type of cover required, can be found in:

  1. the Contract Data

  2. the Special Conditions (amendments to the General Conditions)

  3. the General Conditions

This list is in order of precedence for determining which insurance provisions apply (clause 1.5).

The rest of this Practice Note describes the requirements in the General Conditions.

Liability or risk in the Works

The Contractor’s liability for the Works, which gives it an insurable interest in the Works, is found at clause 17.1. The Contractor is responsible for the care of the Works, Goods and Contractor’s Documents from the Commencement Date until the Taking-Over Certificate is issued (see the errata in this regard), when responsibility for the care of the Works passes to the Employer. If completion is effected in Parts or Sections, the Employer becomes responsible for care of the relevant Part or Section of the Works when a Taking-Over Certificate is issued

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