CONTRACTORS ALL RISKS

A major form of contract works insurance is designed to protect the interest of different parties involved in construction activity for all types of civil engineering construction works ranging from small buildings to massive dams as they are susceptible to damage by a variety of external and internal causes during the course of construction. In the Material Damage section of the CAR policy, cover is provided for physical loss or damage to the contract works, construction plant and equipment or machinery. The CAR policy may be effected by the interested parties in the project but primarily by Principal or by the Contractor engaged for the work and generally includes all sub-contractors. The cover begins from the start except for items of Construction Plant and the like. These are generally only covered after they have been unloaded at the site. The cover terminates when the completed project is handed over or any completed part is taken over or put into service. In respect of Construction Plant and the like, cover terminates when removed from the site. CAR consists of two main types of work: building works and civil works.