Contract Works Insurance

Variations to Standard Conditions for NZIA SCC 2007

The following Special Conditions are additional to or replace (where noted) the rules in Insurance Section 6 of NZIA Standard Conditions of Contract SCC 2007.

Where insurance is affected by the Principal, such insurance is subject to its own terms. In effecting such insurance, the Principal neither warrants nor represents that the Contractor will be indemnified to any greater extent than the indemnity granted by the insurance.

6.2(a) and (b) This Rule is deleted in full and replaced by the following:

"The Principal shall, in addition to the insurance provided for in Rule 6.1, continue to insure, in its own name, existing structures which are being added to, altered or repaired. The Ministry of Education will waive subrogation against contractors and sub contractors for damage to existing structures, which form part of the defined Contract Works.

Note: Please note that Contents of structures are not insured by the Ministry. They are owned by School Boards of Trustees and should be treated as third party property.

6.3 This Rule is deleted in full and replaced by the following:

6.3.1. The Contractor must arrange insurance against liability for loss or damage to any property, or injury or death or illness to any person, that arises from the performance of the Contract Works.

6.3.2 In particular, but without prejudice to the generality of the foregoing clause 6.3.1, the Contractor must arrange insurance against any such liabilities arising out of:

6.3.2.1 Vibration or the weakening or removal of support;

6.3.2.2 Loss or damage caused by the Contractor to existing structures and their contents; and

6.3.2.3 Any and all Plant and Equipment used for the Contract Works, including hired Plant and Equipment.

6.3.3 The amount of insurance for any one claim or series of claims must be for at least the amount or amounts that are stated in the Specific Conditions.

6.3.4 The insurance is to be arranged on the basis that it is primary to, and will respond in priority to, any policies effected by the Principal which insure similar property and interests."

This Rule is deleted and replaced by the following:

"For insurances arranged by the Contractor, other than insurance required under Rule 6.6, they must be in the joint names of the Contractor and the Principal. They must not be able to be cancelled or changed without the consent of both parties."

6.8.7 This Rule is deleted in full and replaced by the following:

"For the insurances which are the subject of Rules 6.4 and 6.5, these insurances must operate as if separate policies had been issued to the insured parties other than in relation to the amount of insurance."

6.10 Architects must refer to MOE Manual as deductible required to be paid by the contractor is adjustable according to contract size.

6.12.2 "Nothing in this Rule 6.12 shall limit the liability of

(Additional clause) the Contractor to the Principal should the Principal fail for any reason whatsoever to pay any insurance premium under the provisions of this Rule 6.12."

6.13.1 The words "and the Principal's contents" are deleted.

6.13.2 This Rule is deleted in full.

6.14 The words "The Principal and" are deleted.

New Sub Rule to be added:

8.6.1(i) (i) "earthquake"

(Clarification Notes, The following Specific Conditions of Contract refer to as all not applicable) Schedule B1

• Architects must refer to MOE Manual as deductible required to be paid by the contractor is adjustable according to contract size.
• Rule 6.1.1 (e) Amount for demolition and replacement work: up to 10% of Contract Price.
• Rule 6.1.1(d) Amount for professional fees etc: up to 15% of Contract Price.
• Rule 6.1.1 (f) Increased construction costs due to loss or damage: up to 5% of contract price.
• Consequential Loss: State "no".
• Deductible in Principal's insurance of Contract Works and existing structures: State: "As per policy".

Note: Please refer to the Ministry's requirements for contractor deductibles are stated.

• Rules 6.3 Minimum amount of Contractor's Public Liability: $2,000,000.
• Rules 6.4 Minimum amount of Contractor's Motor Vehicle Liability insurance: $1,000,000.

The following Specific Conditions of Contract amend the Confirmation of Contractor's Insurance to Principal - Addendum F1:

Addendum F1 is deleted and replaced with the replacement Contractors Confirmation of Insurance as detailed on the following page.

Contractors Confirmation of Insurance

Contract Name:

We have read the insurance clauses of the Contract document(s) and certify that, subject only to customary insurance terms, conditions and exclusions [and to special terms, (if any) as attached to this certificate],

_______________________________________________

(Contractor)

Has effected and paid for insurance that complies with contractual requirements relating to the following insurance:

Type of Insurance Signature and Date

(of Insurer or Insurance Broker)

Contractors Plant and Equipment:

Public Liability:

Motor Vehicle Third Party Liability: