Page 16 - ARCHITECTURE SITE PRACTICE

PERFORMANCE BOND

• Issued to one party of a contract as a guarantee against the
failure of the other party to meet obligations specified in the
contract.
• Usually provided by a bank or an insurance company to make sure
a contractor completes designated projects.
• Typically in the amount of 50% of the contract amount, but can
also be issued for 100% of the contract amount.

INSURANCE OF WORK

• The works contract typically includes the party responsible for
taking out and maintaining the required insurance, as well as the
minimum
insurance coverage required.
• Insurance is a vital risk mitigation tool in construction projects.
• Insurance is taken out due to a statutory, regulatory or
contractual requirement or as an additional measure of protection,
parties cannot afford
to go without it.

INSURANCE AGAINTS INJURY TO

PERSON AND PROPERTIES

• A policy that covers all risks associated with a construction
project, commonly issued under the joint names of a contractor and
a principal
client.
• Usually protects against the cost of unforeseen loss or damage to
building works, machinery movement, advanced business
interruption and
public liability, installation and constructional plant during the
construction period but can be extended to included the
maintenance period.
• Cover can be included for tools, plant owned by the policy holder
or plant hired in.

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