Contract Works Insurance

Contract Works and/or Alteration, Maintenance or Repair

Automatic cover where the Contract Conditions require it is provided under your Church Scheme policy for contracts up to a value of £150,000 (including Professional Fees and VAT); for contracts over this figure, a separate insurance will need to be arranged which we can help you with (see below). Notwithstanding this you should note the following and it is recommended that you contact us prior to the commencement of any works, since:

If no contract conditions in place:

You must establish who is responsible for what, and it is recommended that you should always have written evidence of what has been agreed. It is essential that you check the adequacy of third party contractors’ public liability insurance arrangements. You should establish, in writing (preferably from their insurer or their insurance broker), that it provides at least a £5m limit of indemnity and will be valid for the whole of the contract period. It is equally important that it does not carry any exclusions that may be relevant, e.g. one that excludes the use of a naked flame if the contract that you are entering into includes “hot work activity” (re-covering a flat roof, for example).

Work undertaken by volunteers or by casual labour:

Due to the increasing complexity and range of Health and Safety legislation, you should carefully consider the use of labour of this type, since the congregational board and its members are now legally responsible for exercising a duty of care towards both employees and members of the public. If you are in any doubt, we may offer some general guidance. The Law Department of the Church of Scotland has provided general Health and Safety guidance for congregations please click here to access. Information can also be found at the Health and Safety Executive web site.

Work undertaken under contract over £150,000 in value:

For contract works over £150,000 in value (including Professional Fees and VAT), a separate contract will generally need to be arranged. We can assist you with arranging this additional cover. It will normally be required in the joint names of the church and the contractor although this depends upon the specific contract terms you have entered into. Your architect should provide you with their professional advice in connection with the contractual arrangements. In order to allow us to provide you with a quotation please complete the Contract Works Questionnaire and return it to us in good time.