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Construction Law/Temporary Plants and equipments


Dear Manish,

In any construction we have various types of insurances, like Contractor's All Risk, 3rd Party, Plants and equipment's, Workmen compensation. I understand all the insurance except Temporary Plants and equipment's which are basically from the contractor. What is the purpose of have insurance for these Plants & Equipment's as they belong to the contractor and will be replaced by them due to accident or damage. Considering Fidic 87.



Dear Harry

I presume that you are asking about the purpose of Insurances. Let me put few paras from FIDIC Contracts Guide...

The primary purpose of insurance is to ensure that the Contractor has the financial
capability to execute the Works irrespective of fortuitous loss or damage. Where
a risk is allocated to the Employer, the insurance should (wherever possible)
enable the Employer to pay for the rectification of damage caused by an
Employer's risk. Additionally, if the Contractor fails to complete the Works, the
insurance should enable the Employer to pay another contractor to rectify loss or
damage to incomplete works.

Hope this helps!!!

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Manish Gupta


I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.


7 Years with Contractors 12 plus Years with Owners & Consultants

Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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