Understanding run-off & annual turnover policies

construction single

When you take out an Annual Projects policy, it can be set up on a run-off or annual turnover basis. Usually depending on the type of projects you take on, and how many you take on, you can choose which type of policy suits you best.  Fast Facts MECON’s run-off insurance covers projects commencing during […]

60 day cessation of work

60 day cessation of work

Many factors present uncertain financial risks to contractors who are building in today’s environment. For example: supply chain delays, increasing material and labour costs, weather perils and pandemic. (Contractual solutions for these risks were provided in April’s newsletter link here.) However, one factor remains certain, MECON’s commitment to its brokers and clients. This is seen […]

Impact of COVID Shutdowns on Construction Contracts

With the recent COVID-related shutdowns of construction sites in NSW, four FAQs have arisen: Can builders claim for Extensions of Time (EoTs)? Can Liquidated Damages (LDs) still be applied? Do the COVID shutdowns constitute a Force Majeure? Does my construction insurance cover me for the consequences of a COVID-related delay? MECON sought advice from construction […]

Understanding “Market Value” Applying to Plant and Equipment

Why do we use “market value”, how is it established and what are the potential issues? Firstly, some policies define market value as the cost of replacing lost or damaged plant and equipment with plant and equipment of similar type, age, condition, and capacity. If installation and/or commissioning costs are required, these would also be […]

A change to the Building and Construction Industry Security of Payment Act 1999 (NSW)

Until now, the Building and Construction Industry Security of Payment Act 1999 (NSW) only affected the commercial building sector. From 1 March 2021, owner occupiers are required to understand and apply the Act as it relates to their family home. What does this change to the Building and Construction Industry Security of Payment Act 1999 […]

How Liable is the Builder?

Two recent court cases where judgements have gone against the builder . The Owners – Strata Plan 66375 vs King [2018] NSWCA170 The Kings were the directors of a building development company, Meridian Estates Pty Ltd (“Meridian”). Meridian engaged an architect, Bonus Architects Pty Ltd (“Bonus”). Bonus invited tenders and engaged the builder, Beach Constructions […]

Defective Design, Material, Workmanship Exclusions explained

The defective element exclusions, inherent in all construction policies, is the exclusion most likely to be a cause of confusion, dispute or friction in claim situations.  The construction insurance market utilises generic defective element exclusion wordings produced by its market leaders. This wording has been tested and will often have Court adjudication precedents which can […]

Composite Cladding

Much has already been written about: Australia’s Lacrosse fire London’s Grenfell fire; Polyethylene/aluminium composite cladding (“PE Cladding”); and The Government’s response. This article doesn’t address these things. It deals solely with the likely response to the PE Cladding issues from MECON’s viewpoint (and its policies), which do not include Professional Indemnity. Matters to Consider The […]

Providing Insurance for Existing Structures

When insuring existing structures which form part of a construction project, brokers risk exposing themselves to providing uninformed advice and thus a professional negligence claim. There are a number of common mistakes often made in the consideration of such insurance – insurance of which may fall to one, or both, of two types of insurance: […]

Vibration, Weakening and Removal of Support

Background On cleared land, adjacent to the boundary of several residential homes, a 4 meter deep excavation commenced. It would eventually become a basement carpark for a multi-storey building. The contract value was around $6,000,000. The geology was predominately stiff clay for the depth of the excavation. No ground water was encountered and there had […]