Increasing instances of builders entering into Voluntary Administration (VA) are making news too often; and are a real challenge for the construction sector as clients’ projects are exposed to completion delays, financial insecurity, and need to source a new builder.
In most construction projects, the builder is responsible for the insurance on behalf of the Principal/Developer. If they go into VA, the Principal/Developer no longer has insurance or has to rely on policies sitting with administrators.
When the Principal or Developer has no control over the project insurance, they essentially need to procure a new builder who’ll take over the insurance, or source new policies mid-project. Achieving this can be challenging, time-consuming and costly, in:
An efficient and effective way to protect project viability is through a Principal Controlled program. This is where the Principal or Developer takes out the insurance at project commencement, with responsibility for overseeing the policy and its management; regardless of the continuity of the builder/sub-contractors.
Benefits of a Principal Control Program:
We’re here to help you make informed decisions on the options available to you during these challenging economic times.
Our approach also includes reviewing your current builder’s policies to ensure they have appropriate insurance in place for the project contract.
To discuss options for a Principal Controlled program, and if this is right for you and your project, please feel free to contact me and I‘d be happy to assist.