CONSTRUCTION INSURANCE
ABL EXECUTIVE DIRECTOR AND CONSTRUCTION SPECIALIST TREVOR MCCLINTOCK HIGHLIGHTS POTENTIAL EXPOSURE FROM REINFORCED AUTOCLAVED AERATED CONCRETE (RAAC)… Is RAAC the next construction professional’s indemnity crisis?
R ecently there has been news (RAAC), a material that has been used throughout the UK in the construction of schools and other public buildings and the private sector as well. Some buildings containing RAAC have been closed for safety reasons, and the Department for Education has issued guidance on urgent steps to be taken. The Government have committed to paying initially for remedial works on public buildings, although how this will play out in NI remains to be seen. Inevitably there will be consideration given to seeking recovery from contractors and construction professionals involved in the design or specifying the use of coverage on the use of Reinforced Autoclaved Aerated Concrete
RAAC in buildings. With regard to seeking indemnity from the construction industry, there is an added complication: RAAC was specified and used 30 years ago, so many of the professionals may have ceased trading. The legal primary limitation periods will also have long expired.
Trevor McClintock, Executive Director at ABL Group.
We believe several insurers are currently assessing the potential
RAAC, the impact on the professional indemnity market would reasonably be anticipated to be less severe than the cladding/fire safety crisis.
exposures associated with the use of RAAC. Contractors and construction professionals can expect supplementary questions to their normal annual declaration returns. Policy exclusions for RAAC could well be introduced as they were for fire safety and cladding claims. However, given the timescales involved since specification and construction using
T: +44 (0)28 9344 6347 E: trevor.mcclintock@ablinsurance.co.uk www.ablinsurance.co.uk
86 | NI BUILDER
FOLLOW US ON:
www.nibuilder.co.uk
Made with FlippingBook - professional solution for displaying marketing and sales documents online