Extension of Insurance Policies
In the Open Standard
Sajid BalmaMember for 19 years 4 months
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We have a project (FIDIC Silver Book) which is essesntially suspended due to the failure by the employer to provide certain facilities to us to proceed further.
At the start of the project, we have submitted no. of insurances to the Employer. Almost all of them are now expired. The Employer is asking us to renew the policy now. We do not want to as the delays are not our fault and there is a seldom chance that we get any payment if we raise any claim against such extension.
Further, the construction/installatio is 100% achieved.
In view of the above, will someone suggest me if I have any way out of this situation. Please be reminded that active insurance policies are a pre-requisite for any payments.
Regards
We have a project (FIDIC Silver Book) which is essesntially suspended due to the failure by the employer to provide certain facilities to us to proceed further.
At the start of the project, we have submitted no. of insurances to the Employer. Almost all of them are now expired. The Employer is asking us to renew the policy now. We do not want to as the delays are not our fault and there is a seldom chance that we get any payment if we raise any claim against such extension.
Further, the construction/installatio is 100% achieved.
In view of the above, will someone suggest me if I have any way out of this situation. Please be reminded that active insurance policies are a pre-requisite for any payments.
Regards
1 reply
Oldest first- 0Samer Zawaydeh ·Dear Sajid,
What you have to do is pay them and claim them later. This is the standard procedure. If the time delay is due to the client then you need to follow the procedure and submit the cost of the delay properly.
Please be aware that you must follow the time limits for submitting you claims as per FIDIC condition of Contract. If you properly document your rights according to Condition of Contract, then you can claim them later. Otherwise, if you do not, the client will have plenty of reasons not to pay you.
If your construction/installation is 100% achieved, then why don’t you handover the project to the client and start the Defect Liability period. So this way you do not have to renew the insurance policy because the works are the responsibility of the client after handing over.
With kind regards,
Samer
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