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