Practical challenges facing construction professionals following Grenfell

By Cliff

Businesses in the construction industry’s supply chain, including Design and Construct Professional Indemnity (D&C PI) insurers, are working through lessons from the Grenfell disaster.

Novation agreements are now riddled with problems as contractual rights, obligations and liabilities are transferred between so many parties within the supply chain. Construction contracts are often only won by builders after the architectural design has been completed by a separate team. The main construction contractor and its supply chain are often working on a building designed by a third party.

The burden of responsibility can also weigh heavily on surveyors. What if they miss something, are given incorrect information, or just have a bad day?

This scenario complicates professional liability, and grey areas can emerge as companies defend themselves. To what extent do construction professionals shoulder the liability for issues that emerge after their designs or buildings are signed off? Surely it would be impractical for liability to last for a building’s life cycle?

We won’t know the conclusions from the Grenfell investigation for some time. However, whatever the outcome, we will always endeavour to make sure that professional indemnity insurance policies relating to construction clearly state where liabilities sit within the supply chain.

Although we can’t do anything about market forces, our extensive experience in insuring construction companies and those in the construction profession enables us to identify some of the best, and most practical, PI insurance options available. Call us on 01525 719955 or email info@homecountiesinsurance.com for help.

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