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Avoiding disputes - is latent defects insurance feasible for large projects?

By: Series: Construction Law Review ; 2004, 36-38(2)Publication details: 2004Subject(s): Summary: Assesses the problem for the construction industry of the level of disputes generated by disagreement over the liability for defective work. Often disputes arise as to where liability for a defect lies. Poor workmanship, materials, design or inadequacies by specialist subcontractors or suppliers can be blamed. The project client is often left to make repairs at his own expense and then claim compensation from other parties. Looks at the use of Latent Defects Insurance as a solution to this. Concludes, although cost of such cover may be prohibitive, it is worth considering for large construction projects outside PFI schemes.
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Journal article London Journal article ABS68189 (Browse shelf(Opens below)) 1 Available 127396-1001

Assesses the problem for the construction industry of the level of disputes generated by disagreement over the liability for defective work. Often disputes arise as to where liability for a defect lies. Poor workmanship, materials, design or inadequacies by specialist subcontractors or suppliers can be blamed. The project client is often left to make repairs at his own expense and then claim compensation from other parties. Looks at the use of Latent Defects Insurance as a solution to this. Concludes, although cost of such cover may be prohibitive, it is worth considering for large construction projects outside PFI schemes.