MECON Insurance strives to create innovative solutions to help our insurance brokers better protect your clients, and Builders Advantage is the newest addition to the toolkit. After feedback from our brokers, we designed this endorsement to address concerns surrounding fixed-price contracts and project duration overruns. Fixed-price contracts have been instrumental
Dear all Firstly a word to the wise: If you have been following the media relating to the construction industry, you will know that your clients in construction are very likely to need their maximum sums insured increased (by as much as 45%) and the maximum duration for project builds (by
When you take out an Annual Projects policy, it can be set up on a run-off or annual turnover basis. Usually depending on the type of projects you take on, and how many you take on, you can choose which type of policy suits you best. Fast Facts MECON’s run-off
Many factors present uncertain financial risks to contractors who are building in today’s environment. For example: supply chain delays, increasing material and labour costs, weather perils and pandemic. (Contractual solutions for these risks were provided in April’s newsletter link here.) However, one factor remains certain, MECON’s commitment to its brokers
With the recent COVID-related shutdowns of construction sites in NSW, four FAQs have arisen: Can builders claim for Extensions of Time (EoTs)? Can Liquidated Damages (LDs) still be applied? Do the COVID shutdowns constitute a Force Majeure? Does my construction insurance cover me for the consequences of a COVID-related delay?
Why do we use “market value”, how is it established and what are the potential issues? Firstly, some policies define market value as the cost of replacing lost or damaged plant and equipment with plant and equipment of similar type, age, condition, and capacity. If installation and/or commissioning costs are
Until now, the Building and Construction Industry Security of Payment Act 1999 (NSW) only affected the commercial building sector. From 1 March 2021, owner occupiers are required to understand and apply the Act as it relates to their family home. What does this change to the Building and Construction Industry
Two recent court cases where judgements have gone against the builder. The Owners – Strata Plan 66375 vs King [2018] NSWCA170 The Kings were the directors of a building development company, Meridian Estates Pty Ltd (“Meridian”). Meridian engaged an architect, Bonus Architects Pty Ltd (“Bonus”). Bonus invited tenders and engaged
The defective element exclusions, inherent in all construction policies, is the exclusion most likely to be a cause of confusion, dispute or friction in claim situations. The construction insurance market utilises generic defective element exclusion wordings produced by its market leaders. This wording has been tested and will often have
Much has already been written about: Australia’s Lacrosse fire London’s Grenfell fire; Polyethylene/aluminium composite cladding (“PE Cladding”); and The Government’s response. This article doesn’t address these things. It deals solely with the likely response to the PE Cladding issues from MECON’s viewpoint (and its policies), which do not include
