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Construction Law/PI for Cladding Works


A Contract under execution for the construction of a commercial building in the UAE, stipulates provision of PI Insurance by the Contractor for 'Contractor Designed Works'.
The Contractor's scope of work consists of carrying out construction according to design and IFC drawings issued by the Engineer.
However, detailed (or shop) drawings involving installation of items like metal/stone cladding/ glazing etc. have to be prepared by the specialist subcontractor in accordance with the general arrangement contained in the IFC drawings.
For such elements contained in subcontractor's shop drawings, like framework/fixtures etc.,subcontractors usually rely on their standard in-house designs.   
The Contract further stipulates that 'part of the Permanent Works Designed by Contractor' shall have to be approved by the Engineer.
Kindly advise whether works such as supporting frame/fixtures necessary to install cladding/glazing shall fall under 'Contractor Designed Works' or 'part of Permanent Works designed by Contractor', and shall make the subcontractor, and thereby the Contractor, liable to furnish PI Insurance for such works.

Dear Sarvesh,

Thank you for your question.

I believe there is no straight forward answer, but one should look in detail to each designed item.

Normally, Contractor should only be responsible for the concepts he designed, but not for the ones for which he prepares workshop/ execution drawing, as that is not "design" in my opinion.

If there are things not included in the design provided by Employer/ Engineer and a CONCEPT design is made by Contractor, then Contractor is responsible for that.

If for example a certain fixture is conceived by the Contractor, then it might be Contractor's responsibility to fix it/ repair it, etc, if it doesn't work.

But PI insurance is generally not for that, but for structural matters, or indeed, something that involves Contractor's concept.

Thus, to answer your question, in principle it is "NO", but be cautious and further check each item against Contract provisions.

Hope that helps, sorry I can not give a more definite answer in the given situation.  

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