Professional Indemnity Insurance for Builders

PROFESSIONAL INDEMNITY BASIS OF COVERAGE DEFINITION

Professional Services shall mean one or more of the following services conducted by or on behalf of the Named Insured:

  1. design, including advice in relation to design, in accordance with all relevant building, construction or engineering codes and standards;
  2. drafting;
  3. technical calculation;
  4. technical specification;
  5. construction and project management;
  6. programming and time flow management;
  7. quantity surveying; and/or
  8. land and engineering surveying;

provided always that it is performed by or under the direct supervision of:

  1. a properly registered engineer, architect or surveyor;
  2. a quantity surveyor who is a member of the Australian Institute of Quantity Surveyors; or
  3. any other person providing a professional service of a skillful character according to an established discipline, appropriate to the professional services being performed or supervised.

Professional Services does not mean performance or supervision (where such supervision would normally be undertaken by a building contractor) of construction-related activities, either on-site or off-site, including temporary works, manufacture, assembly, installation, erection, maintenance or physical alteration of buildings, goods, products or property, programming, time flow management, environmental protection, workplace health and safety or industrial relations, by the Insured or its agent, where such performance or supervision is undertaken in the capacity solely as a building or engineering contractor.

For the purpose of this definition, construction and project management means the control, planning, administration, scheduling, evaluation and supervision of construction and completion of a project including the procurement and allocation of labour, materials and services where;

  • the Named Insured is specifically remunerated by way of a fee for such service; or
  • the Named Insured has not been specifically remunerated by way of a fee for such service, but;
    1. the Named Insured is the head contractor or the main contractor for that project;
    2. the contract the Named Insured has entered into for the purpose of the project contains provisions imposing on the Named Insured the responsibility for construction and project management; and
    3. there is no other construction and project manager or entity responsible for construction and project management for that project.

Comments 1

  1. You made a good point about how professional indemnity insurance services should be performed under a registered engineer, architect, or surveyor. I liked that you included that quantity surveyors can also supervise professional services. That’s good to know so that I can know who to ask to supervise how my services are performed. Thanks for the information!

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