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Contract Works (Insurance)
"I need a Contract Works Insurance agreement for a large-scale hospital construction project in Riyadh, with coverage starting March 2025, including specific provisions for medical equipment installation and testing phase coverage, compliant with Saudi healthcare facility requirements."
1. Parties: Identification of the insurer (Takaful operator), insured party (contractor), and any other relevant parties such as the project owner
2. Background: Context of the insurance requirement, including project overview and basis for the insurance arrangement
3. Definitions: Detailed definitions of key terms used throughout the policy, including technical construction terms and insurance concepts
4. Scope of Coverage: Detailed description of what is covered under the policy, including works, materials, and temporary structures
5. Sum Insured: Specification of insurance amounts, including contract value, materials, and additional costs
6. Premium and Payment Terms: Details of premium calculation, payment schedule, and consequences of non-payment
7. Duration of Coverage: Policy period, including construction phase, testing period, and maintenance period
8. Exclusions: Clear listing of situations and items not covered by the insurance
9. Claims Procedure: Step-by-step process for making claims, including notification requirements and documentation
10. Obligations of the Insured: Duties of the insured regarding risk management, safety measures, and notification requirements
11. Termination Provisions: Circumstances under which the policy can be terminated and the consequences
12. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution procedures
13. General Conditions: Standard policy conditions including compliance with Sharia principles
1. Extension of Coverage: Additional coverage options that may be included based on project specifics, such as third-party liability or professional indemnity
2. Cross Liability: Section needed when multiple parties need to be covered as separate entities
3. Advance Loss of Profits: Optional coverage for delayed start-up losses, typically required for large commercial projects
4. Terrorism Coverage: Additional section when terrorism risk coverage is specifically requested
5. Environmental Protection: Special provisions for projects with significant environmental risks
6. Testing and Commissioning: Detailed provisions for projects requiring extensive testing phase coverage
7. Defective Design Coverage: Extended coverage for design defects, typically for design-build projects
1. Schedule A - Project Details: Detailed description of the construction project, including location, scope, and timeline
2. Schedule B - Sum Insured Breakdown: Detailed breakdown of insurance values for different aspects of the works
3. Schedule C - Premium Calculation: Detailed calculation of premium including any adjustments and payment schedule
4. Schedule D - Excluded Properties/Activities: Specific list of exclusions applicable to the project
5. Schedule E - Security Measures: Required safety and security measures for the project site
6. Schedule F - Claims Documentation Requirements: List of required documents and procedures for claims processing
7. Appendix 1 - Risk Management Plan: Detailed risk management procedures and requirements
8. Appendix 2 - Emergency Response Procedures: Procedures to be followed in case of emergencies
9. Appendix 3 - Subcontractor Requirements: Insurance and compliance requirements for subcontractors
Authors
Construction
Infrastructure
Real Estate Development
Energy
Industrial Development
Mining
Oil and Gas
Transportation
Healthcare Construction
Educational Facilities
Commercial Development
Residential Development
Legal
Risk Management
Operations
Finance
Compliance
Commercial
Construction
Project Management
Insurance
Claims
Contracts Administration
Technical Services
Risk Manager
Construction Manager
Project Director
Insurance Manager
Legal Counsel
Compliance Officer
Chief Financial Officer
Project Manager
Contract Administrator
Operations Director
Site Manager
Insurance Underwriter
Claims Manager
Technical Director
Commercial Manager
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