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Calling all approved inspectors: Is your contract invalidating your insurance?
24th August 2009
Bespoke contracts, even those drafted by approved inspectors themselves, may inadvertently affect an inspector's PI insurance, says the Construction Industry Council (CIC) today.
"Contracts often express the services to be undertaken by an approved inspector in terms which effectively 'guarantee' to the client that Building Regulations will be complied with," the CIC has warned.
The potential risks from such contracts to an approved inspector's insurance have also been confirmed by Griffiths & Armour, the brokers who handle PI insurance for many approved inspectors. A spokesman says: "Care has to be taken to ensure that the Approved Inspector does not
take on responsibility beyond that of 'reasonable skill and care' for
which they are insured - such contractual terms would be something
which no inspector can or should promise to the client."
To help approved inspectors and their clients agree the correct terms right from the start, the ACAI has worked with the CIC to publish a standard contract - the first and only contract specifically designed for AIs and the specialist services they provide.
The clear and straightforward form can be used by any AI (individual or large practice) on any project (large or small) for any client (including domestic and commercial projects).
The contract includes provisions, such as fees for additional work, a financial cap (to be agreed) and net contribution clause. It also includes a page of guidance notes to help clients and procurement teams unfamiliar with the terms and conditions.
It also follows the format of the other industry recognised contract documents produced by the CIC, and is easily obtained online.
Copies of the CIC-ACAI Contract can be ordered from the CIC Shop - click here for further details.
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