Single Period Contractors Case Study 2

A contact works policy was taken out for the development of a housing estate, with the initial work involving the necessary infrastructure, including laying roads, pavements, street lighting and installation of water mains and mains electricity.

During the testing stage of installed 11kv electrical cables, the cables failed the required test. The trenches where the cables had been laid were opened up to expose the cables, which revealed the protective rubber sheath was cut and punctured in many areas. Further inspection identified the cause of the damage as the failure, prior to commencement of back-filling of the trenches, to cover the cables with a protective layer of sand. The damage caused fell within the policy cover and an indemnity was provided.

The total claim payment was £102,000

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