The following Construction practice note produced in partnership with Fladgate provides comprehensive and up to date legal information covering:
This Practice Note looks at how sub-contractors’ liability is typically covered by insurance and considers:
difficulties that can arise in respect of sub-contractor insurances, and
what should the parties involved in a construction project do?
A sub-contractor will be liable for damage to its sub-contract works. This arises from its obligation to carry out and complete the sub-contract works (see Practice Note: Sub-contracting in construction projects). The liability is a liability for damage to property and would therefore be covered by a property damage policy, such as a Contractor’s All Risks policy (see Practice Note: Contractors’ All Risks (CAR) Insurance).
Remainder of the works
The sub-contractor would also be liable if its negligence, breach of contract or breach of statutory duty caused damage to the remainder of the works. This liability arises out of a legal liability. It does not arise out of any property interest the sub-contractor has in the remainder of the works. Strictly, it should be covered by a public liability policy. However, the lines are frequently blurred and sub-contractors’ liability in respect of the remainder of the works is frequently covered under a property damage type policy. In several cases, the court has found that the sub-contractor’s interest in the remainder of the works is a property interest.
This was considered in SEELE Austria KG v
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
The Financial Assistance Scheme—what are the available benefits?THIS PRACTICE NOTE APPLIES TO SCHEMES ENTERING THE FINANCIAL ASSISTANCE SCHEME FROM 1 JANUARY 2012.Where a scheme, its employer(s) and individual members have satisfied the criteria for eligibility into the Financial Assistance Scheme
Reserved judgmentsWhat is a reserved judgment?A court can reserve judgment by giving its decision at a later date in writing, after the trial or hearing (as opposed to an ex tempore judgment which is given by the judge orally straight after the hearing or trial). At the end of the hearing the judge
Highways, street works and statutory undertakersCoronavirus (COVID-19): This Practice Note contains guidance on matters that have temporarily been altered to assist in the management of the coronavirus (COVID-19) pandemic. For further information, see: Traffic Orders Procedure (Coronavirus)
Enforcing a warrant of controlThis Practice Note has been produced by enforcement specialists, The Sheriffs Office. It guides users through the process of enforcing a warrant of control obtained from the County Court as a method of enforcing a money judgment; whereby the judgment creditor takes
0330 161 1234