Contract works extensions

7.3.1 Cessation of works

We will provide cover for contract works if from any cause work is to stop for a continuous period in excess of thirty (30) days provided that:

a) You will provide us with details of the works completed and outstanding for us to consider continuation of cover

b) Nothing in this extension shall be deemed to extend cover beyond the date of expiration or non-renewal of this policy.

7.3.2 Continuing plant hire charges

This section extends to cover your legal obligation to pay continuing hire charges while

hired-in plant is out of commission following: a) damage to the hired-in plant but only if:

i) you have made a claim under this section for the damage; and

ii) we have accepted the claim, or would have but for the amount of the excess; b) breakdown of the hired-in plant because of your neglect or misuse;

except that the insurance provided by this „continuing plant hire charges‟ clause excludes and does not cover:

c) hire charges for the first twenty-four (24) hours the plant is out of use;

d) continuing hire charges exceeding a period of ninety (90) days (after the expiry of the first twenty-four (24) hours);

e) any amount in excess of £25,000 in respect of any one occurrence of damage.

7.3.3 Escalator clause

If there is an increase in the value of any contract the sum insured shown in the schedule

will automatically increase for that contract as long as the amount of the increase is not more than 20% of the sum insured.

7.3.4 European Union and public authority requirements

This section extends to cover your liability for such additional costs of reinstatement of the

contract works as may be incurred with our written consent in complying with the stipulations of European Union legislation or building or other regulations under or framed in pursuance of anyAct of Parliament or bye-laws of any public authority first imposed upon

you following loss or damage provided that:

a) the reinstatement is completed within twelve (12) months of the occurrence of the

damage or within such further time as we may in writing allow; b) this insurance excludes and does not cover costs for:

i) requirements relating to any undamaged parts of the contract works other than foundations (unless foundations are specifically excluded from this insurance);

ii) any rate tax duty development or other charge or assessment which may arise out of capital appreciation a result of complying with any of the regulations or requirements referred to;

iii) additional costs incurred solely to comply with building or ot her regulations if relevant notice had been served upon you before the damage occurred,

7.3.5 Immobilised plant

If constructional plant or equipment becomes unintentionally immobilised on the contract

site, then we will pay the costs necessarily incurred in its recovery or withdrawal provided that:

a) our liability for the cost of recovery under this extension clause shall not exceed the total value of the item recovered at the time of the damage;

b) we will not pay costs if the recovery or withdrawal is necessary solely because of electrical or mechanical breakdown, failure or derangement but this shall not exclude breakdown due to negligence by you or your employees.

7.3.6 Maintenance

Where required by contract this policy includes damage that occurs during the period of insurance:

a) occurring during the maintenance period, not exceeding twenty four (24) months from a cause arising whilst in transit or at the site before the issue of the certificate of practical completion; and

b) occasioned by you in the course of fulfilling your obligations during the maintenance period as required by the terms of the contract.

7.3.7 Offsite storage

This section is extended to indemnify you in respect of damage to finished materials or goods designated for and awaiting incorporation into specific contract works while such goods are temporarily held in store away from the contract site but not while such materials or goods are being worked upon subject to a limit of £100,000 any one loss.

7.3.8 Plans, drawings, specifications and documents

This section extends to cover damage to plans, drawings, specifications and documents within the United Kingdom (except on the site of a contract not insured by this section) but any claim is limited to:

a) the value of the materials as stationery and the cost of clerical labour involved in their reproduction and not the value to you of the information they contain;

b) £25,000 for all claims in total during the period of insurance.

7.3.9 Principals

We will indemnify any principal of you, where requested by you, but only to the extent that liability arises solely out of the work performed for the principal by you or on your behalf and provided that:

a) the principal shall as though he were you observe, fulfil and be subject to the terms and conditions of this policy in so far as they can apply; and

b) our liability under this clause shall in no way operate to increase the sum insured.

7.3.10 Replacement of locks

In the event of loss or theft of keys to any immobilising device permanently fitted to any item of constructional plant being used in connection with the contract the indemnity provided under sub clauses b) and c) of the „contracts works‟ clause is extended to include the necessary and reasonably incurred cost of replacing the cylinder of the lock of such immobilising device provided that:

a) Such keys are kept in a locked safe or locked cabinet when not in use b) Our liability shall not exceed £500 in respect of any one claim.

7.3.11 Show houses

This section extends to cover damage to any property used as a show house except that

we shall not be liable to pay any amount in excess of £250,000 any one loss for the show houses and for £10,000 for the contents of the show houses.

7.3.12 Speculative housing

In the event of speculative housing being completed but unsold cover shall continue for a period of six (6) months from the date of practical completion providing that we shall not be liable to pay any amount in excess of £250,000 any one loss for the indemnity granted by this clause.

7.3.13 Waiver of recovery rights under the JCT Standard Form of Building Contract

Where you are awarded a contract under JCT Standard Form of Building Contract incorporating the 1986 Amendments to Insurance and Related Liability Provisions or their equivalent conditions, then we agree insofar as required by the contract to waive any rights of recovery we may acquire against sub-contractors but only in respect of damage to the

contract works by any of the specified perils defined in the contract.