Post-Construction Liability and Insurance (The National Swedish Institute for Building Research)

Book Cover......Page 1
Half-Title......Page 2
Title......Page 4
Copyright......Page 5
Dedication......Page 7
Contents......Page 8
List of members......Page 11
List of contributors......Page 23
Acknowledgements......Page 25
Preface......Page 26
Introduction......Page 27
How to use this book......Page 29
PART ONE Key Concepts......Page 31
CHAPTER ONE Building......Page 32
CLIENTS......Page 34
SUCCESSIVE OWNER AND SUCCESSIVE OWNERS......Page 36
CHAPTER THREE Producer......Page 37
SUMMARY......Page 40
TECHNICAL BUILDING CODES......Page 41
DELIVERY......Page 47
DEVIATIONS......Page 51
FLAWS BECOMING PATENT DURING AN INITIAL PERIOD AFTER DELIVERY......Page 53
AFTER EXPIRY OF THE INITIAL PERIOD......Page 54
HOW THE TERM ‘FAILURE’ IS USED IN THIS BOOK......Page 56
‘DAMAGE’......Page 57
AETIOLOGY......Page 58
ERROR AND OMISSION......Page 60
DEFECT......Page 61
SUMMARY......Page 62
DEFINITION......Page 63
DISTINCTION ACCORDING TO STAGE......Page 64
DISTINCTION ACCORDING TO CAUSE......Page 67
TAXONOMY......Page 71
CHAPTER NINE Defect......Page 75
CHAPTER TEN Damage......Page 78
REQUIREMENTS IN BUILDING REGULATIONS......Page 79
CLIENTS’ REQUIREMENTS......Page 80
‘IMPLICIT’ OR ‘CULTURAL’ REQUIREMENTS......Page 81
INTRODUCTION......Page 83
EXTENT OF DUTY OF PRODUCER......Page 84
SOME MEANS OF EXONERATION......Page 86
SUMMARY......Page 88
RESEARCH......Page 89
ENFORCEMENT OF BUILDING LAWS AND REGULATIONS......Page 92
SUMMARY......Page 93
PART TWO National Overviews......Page 94
1.1 General......Page 95
1.1.1 TERMS AND CONCEPTS......Page 96
1.2.1 DETERMINATION OF THE COMMENCEMENT......Page 98
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 99
1.2.4 TIME ALLOWED FOR DIFFERENT CATEGORIES OF PRODUCERS FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 100
1.5 From expiry of the Guarantee (Maintenance, Defects Liability) Period......Page 101
1.6 Transfer of ownership and producers’ liability......Page 102
2.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 103
2.1.5 NEW TECHNOLOGY......Page 104
2.5.1 NORMAL DURATION OF COVER; CANCELLATION......Page 105
2.5.6 EXCLUSIONS......Page 106
3.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 107
3.1.5 NEW TECHNOLOGIES......Page 108
3.2.0 EXISTENCE OF LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE......Page 109
3.5.5 KINDS OF DEFECTS AND DAMAGE WHICH CONSTITUTE CLAIMS EVENTS; ONUS OF PROOF......Page 110
3.5.6 EXCLUSIONS......Page 111
1.1.0 LAW OR CONTRACT OR BOTH......Page 112
DEFINITION OF ‘BUILDING’ OR ‘WORKS’......Page 113
DEFINITION OF ‘PRODUCERS’ (CONSTRUCTEURS)......Page 115
1.2 During the Guarantee (Maintenance, Defects Liability) Period......Page 117
1.2.4 TIME ALLOWED FOR DIFFERENT CATEGORIES OF PRODUCERS FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 118
VISIBLE DEFECTS......Page 119
USE OF EXPERIMENTAL TECHNIQUES OR TECHNIQUES INVOLVING INCREASED RISKS......Page 120
‘DUTY OF RESULT’ OR ‘DUTY OF CARE’?......Page 121
1.2.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO MAKE GOOD, REPAIR OR PAY DAMAGES......Page 124
1.5 From expiry of the Guarantee (Maintenance, Defects Liability) Period......Page 125
1.5.1 DETERMINATION OF THE COMMENCEMENT OF THE (POSTGUARANTEE) PERIOD DURING WHICH A PRODUCER MAY BE HELD LIABLE......Page 126
LIMITATION PERIOD FOR CONTRACTUAL LIABILITY......Page 127
With regard to third parties......Page 128
1.5.5 KINDS OF DEFECTS AND DAMAGE QUALIFYING FOR DAMAGES......Page 129
1.5.6 EXCULPATION OF PRODUCER......Page 130
2.1.0 LAW OR CONTRACT OR BOTH......Page 131
2.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 132
2.1.4 INSURERS’ POSSIBLE INFLUENCE UPON BUILDING TECHNOLOGY......Page 133
2.2 During the Guarantee (Maintenance, Defects Liability) Period......Page 134
NOTICE OF CLAIM......Page 135
2.5.5 KINDS OF DEFECTS AND DAMAGE WHICH CONSTITUTE CLAIMS EVENTS......Page 136
2.6.1 RULES......Page 137
3.1.0 LAW OR CONTRACT OR BOTH......Page 138
‘BENEFICIARY-INSURED PARTY’ (BENEFICIARE—SOUSCRIPTEUR)......Page 139
3.1.6 THE INSURANCE MARKET, GENERAL IMPRESSION......Page 140
3.2 During the Guarantee (Maintenance, Defects Liability) Period......Page 141
3.5.4  TIME ALLOWED BETWEEN THE INSURER’S RECOGNITION OF A CLAIMS EVENT AND HIS PAYING OUT......Page 142
3.5.6 EXCLUSIONS......Page 143
APPENDIX I SUPERVISION INSURANCE......Page 144
PENDIX II OUTLINE OF POSITIVE BELGIAN LAW CONCERNING PRODUCERS’ ‘POST-HANDOVER’ LIABILITY FOR RESIDENTIAL BUILDINGS......Page 145
1.5 ‘POST-GUARANTEE’ PERIOD......Page 147
1.1.0 LAW OR CONTRACT OR BOTH......Page 149
‘PRODUCER’......Page 150
1.2.2 SIGNATORIES TO AND NAME OF THE DOCUMENT STATING THE COMMENCEMENT OF THE PERIOD......Page 151
1.2.4 TIME ALLOWED FOR DIFFERENT CATEGORIES OF PRODUCERS FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 152
1.2.6 EXCULPATION OF PRODUCER......Page 153
TRADITIONAL SYSTEM......Page 155
NEW CONTRACTUAL SYSTEM FOR CONTRACTORS AND SUPPLIERS......Page 156
AMENDMENT OF AB 72......Page 158
1.5.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO REPAIR......Page 159
DANISH BUILDING DEFECT FUND......Page 160
FIVE-YEAR INSPECTION......Page 161
1.1.0 LAW OR CONTRACT OR BOTH......Page 163
‘PRODUCERS’......Page 165
1.2.1 DETERMINATION OF THE COMMENCEMENT OF THE PERIOD......Page 166
1.2.5 KINDS OF DEFECTS AND DAMAGE COVERED BY THE GUARANTEE......Page 167
1.2.6 EXCULPATION OF PRODUCER......Page 168
1.5.2 NAME OF THE DOCUMENT STATING THE COMMENCEMENT OF THE POST-GUARANTEE PERIOD; ITS SIGNATORIES......Page 169
1.5.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO REPAIR......Page 170
2 PROPERTY (OR MATERIAL DAMAGE) INSURANCE......Page 171
3.1.0 LAW OR CONTRACT OR BOTH......Page 172
3.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 178
3.1.6 THE INSURANCE MARKET, GENERAL IMPRESSION......Page 179
3.2.7 RIGHT OF RECOURSE AGAINST A PRODUCER......Page 180
3.5.2 LEVEL OF PREMIUMS, EXCESS AND FRANCHISE......Page 181
3.5.5 KINDS OF DEFECTS AND DAMAGE WHICH CONSTITUTE CLAIMS EVENTS; ONUS OF PROOF......Page 182
APPENDIX I ‘NORMATIVE BUREAUX’ (UK)......Page 183
APPENDIX II BUILDING CONTROL AUTHORITIES (ENGLAND AND WALES)......Page 184
APPENDIX III TESTING LABORATORIES (UK)......Page 186
APPENDIX IV BRITISH BOARD OF AGRÉMENT (UK)......Page 187
1.1.0 LAW OR CONTRACT OR BOTH......Page 189
‘PRODUCERS’ (CONSTRUCTEURS)......Page 190
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 191
1.2.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO MAKE GOOD, REPAIR OR PAY DAMAGES......Page 192
1.5.5 KINDS OF DEFECTS AND DAMAGE QUALIFYING FOR DAMAGES......Page 193
2 PROPERTY (OR MATERIAL DAMAGE) INSURANCE......Page 194
3.1.0 LAW OR CONTRACT OR BOTH......Page 195
3.1.3 INSURER’S TECHNICAL CONTROL......Page 196
3.1.6 THE INSURANCE MARKET, GENERAL IMPRESSION......Page 197
3.5.2 LEVEL OF PREMIUMS, EXCESS AND FRANCHISE......Page 198
3.5.6 EXCLUSIONS......Page 199
Additional information......Page 200
1.1.0 LAW OR CONTRACT OR BOTH......Page 201
‘BUILDING’......Page 202
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 203
1.2.6 EXCULPATION OF PRODUCER......Page 204
1.5.3 PERIOD(S) OF LIMITATION......Page 205
1.5.5 KINDS OF DEFECTS AND DAMAGE QUALIFYING FOR DAMAGES......Page 206
1.6.1 RULES......Page 209
3 LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE......Page 210
1.1 General......Page 211
STANDARD FORMS OF CONTRACT......Page 213
‘MAJOR REMODELLING’ (article 2 (15))......Page 214
COMPLETION CERTIFICATE, CERTIFICATE OF INSPECTION OF THE BUILDING......Page 215
DEFECT......Page 216
1.2.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO MAKE GOOD, REPAIR OR PAY DAMAGES......Page 217
3 LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE......Page 218
INTRODUCTION......Page 219
1 Uniform Administrative Conditions for the Execution of Works 1989......Page 220
2 Model Contract for Residential Building with Matching General Conditions 1991......Page 221
2 Regulations Concerning the Relationship between Clients and Consulting Engineering Firms RVOI 1987......Page 222
‘PRODUCER’......Page 223
I CONSTRUCTION CONTRACTS......Page 225
(a) Provisions on inspection, approval, completion and acceptance......Page 226
(b) Provisions on a guarantee period and on a Defects Liability Period......Page 227
1.2.5 KINDS OF DEFECTS AND DAMAGE COVERED BY THE GUARANTEE......Page 228
I CONSTRUCTION CONTRACTS......Page 229
I CONSTRUCTION CONTRACTS......Page 230
I CONSTRUCTION CONTRACTS......Page 231
II COMMISSIONS TO ARCHITECTS AND CONSULTING ENGINEERS......Page 235
I CONSTRUCTION CONTRACTS......Page 236
II COMMISSIONS TO ARCHITECTS AND ENGINEERS......Page 240
1.5.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO REPAIR......Page 242
2 PROPERTY (OR MATERIAL DAMAGE) INSURANCE......Page 243
3 LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE......Page 244
1.1.0 LAW OR CONTRACT OR BOTH......Page 245
CONSTRUCTION LAW......Page 246
PUBLIC CONTROL BUREAUX......Page 247
1.1.1 TERMS AND CONCEPTS......Page 248
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 249
1.2.5 KINDS OF DEFECTS AND DAMAGE COVERED BY THE GUARANTEE......Page 250
THE DESIGNER/CONSULTANT (NS 3403)......Page 251
1.2.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO MAKE GOOD, REPAIR OR PAY DAMAGES......Page 252
1.5.4 TIME ALLOWED (DIFFERENT CATEGORIES OF PRODUCERS) FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 253
1.6.1 RULES......Page 254
1.2.1 DETERMINATION OF THE COMMENCEMENT OF THE PERIOD......Page 255
1.2.6 EXCULPATION OF PRODUCER......Page 256
1.6 Transfer of ownership and producers’ liability......Page 257
1.5 From expiry of the Guarantee (Maintenance, Defects Liability) Period......Page 258
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 259
1.2.6 EXCULPATION OF PRODUCER......Page 260
1.5.4 TIME ALLOWED (DIFFERENT CATEGORIES OF PRODUCERS) FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 261
1.5.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO REPAIR......Page 262
1.1.0 LAW OR CONTRACT OR BOTH......Page 263
1.2.1 DETERMINATION OF THE COMMENCEMENT OF THE PERIOD......Page 264
1.2.4 TIME ALLOWED FOR DIFFERENT CATEGORIES OF PRODUCERS FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 265
1.2.6 EXCULPATION OF PRODUCER......Page 266
1.5.1 DETERMINATION OF THE COMMENCEMENT OF THE (POSTGUARANTEE) PERIOD, DURING WHICH A PRODUCER MAY BE HELD LIABLE......Page 267
3.1.0 LAW OR CONTRACT OR BOTH......Page 268
3.1.4 INSURERS’ POSSIBLE INFLUENCE UPON BUILDING TECHNOLOGY......Page 269
3.5 After the Guarantee (Maintenance, Defects Liability) Period......Page 270
1.1.0 LAW OR CONTRACT OR BOTH......Page 271
‘PRODUCER’......Page 274
ARTICLE 1688......Page 275
ARTICLE 1688......Page 276
ARTICLES 1668 AND 1522......Page 277
ARTICLE 1522......Page 278
ARTICLE 1688......Page 279
ARTICLE 1522......Page 280
ARTICLE 1522......Page 281
PRESENT LAW......Page 282
1.5.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO REPAIR......Page 283
3 LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE......Page 284
‘INSURANCE POLICY’......Page 285
3.1.5 NEW TECHNOLOGIES......Page 286
3.2.7 RIGHT OF RECOURSE AGAINST A PRODUCER......Page 287
3.5.4 TIME ALLOWED BETWEEN THE INSURER’S RECOGNITION OF A CLAIMS EVENT AND HIS PAYING OUT......Page 288
3.5.6 EXCLUSIONS......Page 289
1.1.0 LAW OR CONTRACT OR BOTH......Page 290
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 291
1.2.4 TIME ALLOWED FOR DIFFERENT CATEGORIES OF PRODUCERS FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 292
1.2.6 EXCULPATION OF PRODUCER......Page 293
LOCAL BUILDING AUTHORITY......Page 294
1.5.6 EXCULPATION OF PRODUCER......Page 295
Duty of care......Page 296
1.6.1 RULES......Page 297
2.2 During the Guarantee (Maintenance, Defects Liability) Period......Page 298
3.1.1 TERMS AND CONCEPTS......Page 300
3.1.6 THE INSURANCE MARKET, GENERAL IMPRESSION......Page 301
RIAS INSURANCE SERVICES......Page 302
Client......Page 303
Probative Contract......Page 304
Delict......Page 305
Strict Liability......Page 306
Latent Defect......Page 307
Building Warrant......Page 308
Final Certificate......Page 309
Maintenance......Page 310
1.1 General......Page 311
BY LAW......Page 312
UNDER CONTRACT......Page 314
‘BUILDING’......Page 315
Building authority......Page 316
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 317
1.2.5 KINDS OF DEFECTS AND DAMAGE COVERED BY THE GUARANTEE......Page 318
SUMMARY......Page 319
Date on which breach of contract occurs......Page 320
1.5.6 EXCULPATION OF PRODUCER......Page 321
2.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 322
2.1.4 INSURERS’ POSSIBLE INFLUENCE UPON BUILDING TECHNOLOGY......Page 323
2.5.1 NORMAL DURATION OF COVER; CANCELLATION......Page 324
2.5.6 EXCLUSIONS......Page 325
3.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 326
3.1.5 NEW TECHNOLOGIES......Page 327
3.2.7 RIGHT OF RECOURSE AGAINST A PRODUCER......Page 328
3.5.4 TIME ALLOWED BETWEEN THE INSURER’S RECOGNITION OF A CLAIMS EVENT AND HIS PAYING OUT......Page 329
3.5.6 EXCLUSIONS......Page 330
1.1.0 LAW OR CONTRACT OR BOTH......Page 331
1.2.1 DETERMINATION OF THE COMMENCEMENT OF THE PERIOD......Page 332
1.2.6 EXCULPATION OF PRODUCER......Page 333
1.5 From expiry of the Guarantee (Maintenance, Defects Liability) Period......Page 334
‘INSURANCE POLICY’......Page 335
3.1.6 THE INSURANCE MARKET, GENERAL IMPRESSION......Page 336
3.5 After the Guarantee (Maintenance, Defects Liability) Period......Page 337
PUBLIC CONTROL......Page 338
THE PROFESSIONAL CLIENT......Page 339
WHEN THE CLIENT IS A PRIVATE INDIVIDUAL (CONSUMER)......Page 340
‘PRODUCER’......Page 341
1.2.1 DETERMINATION OF THE COMMENCEMENT OF THE PERIOD......Page 342
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 343
1.2.5 KINDS OF DEFECTS AND DAMAGE COVERED BY THE GUARANTEE......Page 344
1.2.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO MAKE GOOD, REPAIR OR PAY DAMAGES......Page 345
1.5.3 PERIOD(S) OF LIMITATION......Page 346
1.5.5 KINDS OF DEFECTS AND DAMAGE QUALIFYING FOR DAMAGES......Page 347
1.5.6 EXCULPATION OF PRODUCER......Page 348
2.1.0 LAW OR CONTRACT OR BOTH......Page 349
‘POLICY HOLDER’......Page 350
2.1.4 INSURERS’ POSSIBLE INFLUENCE UPON BUILDING TECHNOLOGY......Page 351
2.2.7 RIGHT OF RECOURSE AGAINST THE PRODUCER......Page 352
2.5.5 KINDS OF DEFECTS AND DAMAGE WHICH CONSTITUTE CLAIMS EVENTS......Page 353
3.1.0 LAW OR CONTRACT OR BOTH......Page 354
3.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 355
3.1.5 NEW TECHNOLOGIES......Page 356
3.2.0 EXISTENCE OF LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE......Page 357
3.5.1 NORMAL DURATION OF COVER; CANCELLATION......Page 358
3.5.3 TIME LAPSES BETWEEN OBSERVATION OF DAMAGE AND INVESTIGATION......Page 359
3.5.6 EXCLUSIONS......Page 360
1.1.0 LAW OR CONTRACT OR BOTH......Page 362
‘PRODUCER’......Page 363
1.2 During the Guarantee (Maintenance, Defects Liability) Period......Page 364
1.2.3 THE PERIOD’S DURATION AND TERMINATION......Page 365
1.2.5 KINDS OF DEFECTS AND DAMAGE COVERED BY THE GUARANTEE......Page 366
CONTRACT......Page 367
1.2.6 EXCULPATION OF PRODUCER......Page 368
EXCULPATION OF CONTRACTORS......Page 369
PRODUCER CANNOT (E.G. BECAUSE OF BANKRUPTCY)......Page 370
1.5 From expiry of the Guarantee (Maintenance, Defects Liability) Period......Page 371
1.5.7 CONSEQUENCES OF PRODUCER’S NON-COMPLIANCE WITH UNEQUIVOCAL DUTY TO REPAIR......Page 372
1.6.1 RULES......Page 373
1.5 From expiry of the Guarantee (Maintenance, Defects Liability) Period......Page 374
‘BUILDING’......Page 375
‘TENANT......Page 376
1.2.4 TIME ALLOWED FOR DIFFERENT CATEGORIES OF PRODUCERS FOR MAKING GOOD, REPAIRING OR PAYING DAMAGES......Page 377
1.2.6 EXCULPATION OF PRODUCER......Page 378
1.5.1 DETERMINATION OF THE COMMENCEMENT OF THE (POSTGUARANTEE) PERIOD DURING WHICH A PRODUCER MAY BE HELD LIABLE......Page 380
1.5.5 KINDS OF DEFECTS AND DAMAGE QUALIFYING FOR DAMAGES......Page 381
2.1 General......Page 382
2 PROPERTY (OR MATERIAL DAMAGE) INSURANCE......Page 383
2.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 384
2.1.4 INSURERS’ POSSIBLE INFLUENCE UPON BUILDING TECHNOLOGY......Page 385
2.2.7 RIGHT OF RECOURSE AGAINST THE PRODUCER......Page 386
2.5.5 KINDS OF DEFECTS AND DAMAGE WHICH CONSTITUTE CLAIMS EVENTS......Page 387
3.1 General......Page 388
3 LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE......Page 389
3.1.2 TECHNOLOGY AND INSURANCE TERMS AND CONDITIONS......Page 390
3.1.5 NEW TECHNOLOGIES......Page 391
3.2.7 RIGHT OF RECOURSE AGAINST A PRODUCER......Page 392
3.5.2 LEVEL OF PREMIUMS, EXCESS AND FRANCHISE......Page 393
3.5.5 KINDS OF DEFECTS AND DAMAGE WHICH CONSTITUTE CLAIMS EVENTS; ONUS OF PROOF......Page 394
3.5.6 EXCLUSIONS......Page 395
GENERAL TERMS......Page 396
AETIOLOGICAL TERMS......Page 398
INSURANCE TERMS......Page 399
Index......Page 400