Insurance for commercial construnction

For residential small developments for 4-5 units, builders are mandated to get building indemnity insurance cover which covers you upto 100k per policy against builder going bust, warranty defects etc.

How does it work for commercial development? For e.g. if you are building 10 warehouses with fixed price contract, how does indemnity insurance work? Are builders mandated to take out indemnity insurance to cover entire work?

 

AFAIK it's your risk. There's no requirement for insurance or cover for commercial work.

 

Thanks.

If we want to buy our own insurance which covers same thing as residential construnction indemnity insurance, is it possible?

 

You should check with a broker, there may be someone willing to cover the risks.

You would try to mitigate the risk instead - use of a QS as contract administrator, bank guarantees for retention, fully documented works (not turn key or D&C), rated BOQ etc.

 

Thanks.

 

What have you paid? Normally commercial logic suggests not to make progress payments unless value is given or indicated. Thats how good contracts should be framed. Some contracts are almost turnkey where a small upfront eg 10% and major final on completion. Most builders for a house may be ok but for 10? Doubtful.