Insurance in Construction work

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Insurance in Construction work

Insurance. I. Without limiting his obligations and responsibilities the Contractor shall provide necessary insurance in terms approved by the Client, to cover the following, indemnifying the Client. The Contractor shall furnish a copy/copies of the policies to the Client within one month from the award of the contract.

safety 2022


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 a. Contractors All Risk Insurance Policy covering loss or damage due to Fire, Lightning, Collapse, Defective Workmanship and/or materials, flood, storm, theft, burglary, malicious damage, subsidence riots etc.

b. Third Party Liability.

c. Accident insurance to any workmen/staff, casual or otherwise, under the Workmen's Compensation Act in accordance with the latest amended provision of the Workmen's Compensation Act.

d. Contractor's tools, tackle and machinery.

All risks to materials during transit.

f. Any other Insurance required for fully indemnifying the Client from any claim that may arise on account of the Contractor's operation at the site.

II. The above-mentioned insurance coverage shall be with effect from the commencement of the works, and in case the Contractor fails to affect the insurance coverage and keep in force the insurance referred to under clause B.30.I. any other insurance that he may be required to effect under the terms of the contract, then the Client may effect and keep in force any such insurance and to such premium or premiums as may be necessary for that purpose and is to deduct the same from time to time from the money due or which may become due to the Contractor in the manner laid down in clause B.27 hereunder.

CONTRACTORS’ ALL RISKS INSURANCE POLICY


B.32. Insurance in respect of Damage to Persons and Property.

I.1. The Contractor shall be responsible for all injury to a person, animals or things, and for all structural and decorative damage to property which may arise from the operation or neglect of himself or of any nominated Sub-Contractor's employees, whether such injury or damage arises from the carelessness, accident or any other cause whatever in any way connected with the carrying out this contract. This clause shall be held to include inter-alia, any damage to buildings, whether immediately adjacent or otherwise, and any damage to roads, streets, footpaths, bridges or ways as well as damage caused to the buildings and work forming the subject of this contract by frost or other inclemency of the weather. The Contractor shall indemnify the Client and hold him harmless in respect of all and any expenses arising from any such injury or damage to persons or property as aforesaid and also in respect of any claim made in respect of injury or damage under any Act of Government or otherwise and also in respect of any award of compensation or damages consequent upon the such claim.

I.2. The Contractor shall reinstate all damage of every sort mentioned in this clause, so as to deliver up the whole of the contract works complete and perfect in every respect and so as to make good or otherwise satisfy all claims for damage to the property of the third parties.

I.3. The Contractor shall indemnify the Client against all claims which may be made against the Client by any member of the public or other third party in respect of anything which may arise in respect of the works or in consequence thereof and shall at his own expense arrange to effect and maintain, until the virtual completion of the contract, with an approved office policy of insurance in the joint names of the Client and the Contractor against such risks and deposit such policy or policies with the Architect from time to time during the currency of this contract. The Contractor shall similarly indemnify the Client against all claims which may be made upon the Client whether under the Workmen's Compensation Act or any other statute in force during the currency of this contract or at common law in respect of any employee. I.4.Sub-Contractor shall at his own expense effect and maintain until the virtual completion of the contract, with an approved office a policy of insurance in the joint names of the Contractor and the Client against such risks and deposit such policy or policies with the Clients from time to time during the currency of the contract.

I.5.The Contractor shall be responsible for anything which may be excluded from the Insurance Policies above referred to and also for all other damages to any property arising out of incidental to the negligence or defective carrying out of this contract. He shall also indemnify the Client in respect of any costs, charges or expenses arising out of any claim or proceedings and also in respect of any award of or compensation of damage arising therefrom.

I.6.The Client with the concurrence of the Architect shall be at liberty and is hereby empowered to deduct the amount of any damage, compensation, costs, charges and expenses arising or accruing from or in respect of any claim or damage from any sum or sums due to or become due to the Contractor.

II. Without limiting his obligations and responsibilities above, the Contractor shall provide necessary insurance in terms approved by the Client, to cover the following, indemnifying the Client. The Contractor shall furnish a copy/copy of the policies to the Client within one month from the award of the contract.

a. Contractors all Risk Insurance Policy covering loss or damage due to Fire, Lighting Collapse, defective Workmanship and/or materials, flood, storm, theft, burglary, malignant damage, subsidence riots etc. b. Third-Party Liability. c. Accident Insurance to any workmen/staff, casual or otherwise, under the Workmen's Compensation Act in accordance with the latest amended provision of the Workmen's Compensation Act. d. Contractor's tools, tackle and machinery. e. All risks to materials during transit. f. Any other insurance is required to fully indemnify the Client from any claim that may arise on account of the contractor's operation at the site.

III. The above-mentioned insurance coverage shall be with effect from the commencement of the works. In case the Contractor fails to effect the insurance coverage and keep in force the insurance referred to above, any other insurance that he may be required to effect under the terms of the contract, then the Client may effect and keep in force any such insurance and to such premium or premiums as may be necessary for that purpose and is to deduct the same from time to time from the monies due or which may become due to the Contractor in the manner laid down in clause. B.33. Labour and General Laws.

1. The Contractor shall employ the labour in sufficient numbers directly or through the approved Sub-Contractors, stipulate their terms and conditions of service, for the specified period, services till the duration of completion of work undertaken under this contract, and fix their wages in accordance with the provisions of the Minimum Wages Act and make arrangements to pay the same periodically. It is his responsibility to maintain the required rates of the decree specified in the contract and to the satisfaction of the Client/Architect.

2. The Contractor shall provide the welfare amenities to the labour employed by him or the Sub-Contractor and in case he employs 100 or more contract labour, he shall make arrangements to provide a canteen facility, rest room facilities, provide and maintain a sufficient supply of wholesome drinking water for the contract labour at a convenient place, sufficient number of latrines and urinals, washing facilities, first aid facilities, etc., as provided under the Contract Labour (Regulations and Abolition) Act, 1970. He shall not employ any person who is under 15 years of age. The wages fixed by him shall be in accordance with the Minimum Wages Act and in the event of any dispute arising between the Contractor and his labour on the ground that the wages paid are not fair and reasonable or in accordance with the law, the Contractor alone shall be responsible for making good any difference in wages. Any dispute arising in regard to the above shall be referred without delay to the Client. Any dispute shall not in any way affect the work in progress and in wages, he shall be entitled to deduct the amounts from the Contractor's amount payable to the Contractor. The decision taken by the Client in this regard shall not affect the conditions in the contract regarding a payment made by the Client at the accepted tender rates.

3. The Contractor or the Sub-Contractor shall, as the case may be, obtain a licence to perform/execute the contract work as required under the Contract Labour (Regulation and Abolition) Act, 1970 comply with the provision of the Payment of Wages Act 1936, Minimum Wages Act 1948, Employees Liability Act 1938, Workmen's Compensation Act 1923, Industrial Disputes Act 1947, maintain registers under various labour statutes applicable to contract labour or any modifications thereof made in this enactments from time to time.

4. The Contractor shall indemnify the Client against any payment to be made under and for the observance of the regulations aforesaid without prejudice to his right to claim indemnity from his Sub-Contractors.

5. The Contractor shall be responsible for and shall part any compensation to his own workmen under the Workmen's Compensation Act, (hereinafter called "the said act") for injuries caused to the workmen. If such compensation is paid by the Client as a principal under sub-section of the said act on behalf of the Contractor, it shall be recoverable by the Client from the Contractor under sub-section of the said section. Such compensation shall be recovered in the manner laid down in the clause above (Certificates and Payments).

6. The Contractor shall be responsible for and shall pay all the expenses for providing medical aid to any workmen who may suffer bodily injury as a result of an accident and hospitalization expenses. If such expenses are incurred by the Client, the same shall be recovered from the Contractor forthwith and be deducted without prejudice to any other remedy by the Client from any amount due or that may become due to the Contractor.

7. The Contractor shall provide all personal safety equipment and first aid and apparatus for the persons employed on the site and maintain the same in good condition and suitable for immediate use at any time.

B.34. Nuisance. The Contractor shall not at any time do, cause or permit any nuisance on the site or do anything which shall cause unnecessary disturbance or inconvenience to Clients, tenants, or occupants of other properties near the site of work and to the public generally. The Contractor shall indemnify the Client in respect of all claims, demands, proceedings, damages, costs, charges, and expenses whatsoever arising out of or in relation to any such nuisance in so far as the Contractor is responsible thereof.

B.35. Fire Insurance. a. The Contractor shall at the time of signing the contract insure the works and keep them insured until the virtual completion of the contract against loss or damage by fire in an office to be approved by the Architect, in the joint names of the Client and Contractor (the name of the former being placed first in the policy), for the full amount of the contract and for any further sum if called upon to do so by the Architect, the premium of such further sum being allowed to the Contractor as an authorized extra. Such policy shall cover the property of the Client only, fees for assessing the claim and in connection with his services generally therein, and shall not cover any property of the Contractor or any Sub-Contractor or employee. The Contractor shall deposit the policy and receipts for the premium with the Architect within twenty-one days from the date of signing the contract unless otherwise instructed by the Architect. In default of the Contractor ensuring as provided above, the Client or the Architect on his behalf may so insure and may deduct the premiums paid from any money due or which may become due to the Contractor. The Contractor shall as soon as the claim under the policy is settled or the work reinstated by the Insurance Office, should they elect to do so, proceed with all due diligence with the completion of the works in the said manner as though the fire had not occurred and in all respects under the same conditions of contract. The Contractor, in case of rebuilding or reinstatement after the fire, shall be entitled to such extension of time for completion as the Architect deems fit.

b. The amount so due as aforesaid shall be the total value of the works duly executed and of the contract materials and goods delivered upon the sites for use in the works up to and including a date,  not more than seven days prior to the date of the said certificates less the amount to be retained by the Client (as hereinafter provided) and less any instalments previously paid under this clause. Provided that such certificates shall only include the value of the said materials and goods as and from time as they are reasonable, properly and not prematurely brought upon the site and then only if properly stored and/or protected against the weather.

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