CONTRACT WORKS CASE STUDY
A builder needed single-project cover for an $800,000 duplex in western Sydney that started with demolishing the existing house, then ran a 15-month build.
Premiums and outcomes described are specific to this client and indicative only. Your own terms will depend on your circumstances and the insurer.
A builder approached us through our single-project contract works form for a new attached dual-occupancy in western Sydney. The project was a two-storey duplex with a single garage, valued at around $800,000, and it began with demolishing the structure already on the site.
The build was expected to run about 15 months, with roughly 60% of the work handled by subcontractors - carpenters, bricklayers, concreters and plumbers. They needed cover in place from the commencement date.
We confirmed the project details directly with the builder - the duplex scope, the demolition at the start, the subcontractor mix and the start date - then went to specialist construction markets for single-project terms.
For a single project, the cover needs to be in place before work starts, so we lined the placement up to the builder's commencement date.
One market referred the risk and ultimately could not provide terms, which is common on construction work - not every underwriter has appetite for every project type. That left us comparing the workable options rather than the full set.
The demolition at the start of the build also needed to be reflected properly, because a project that begins by removing an existing structure carries a different risk profile to a clean-slab new build.
We placed single-project contract works cover through Mecon, ready to respond from the commencement date.
Final Solution: Single-project contract works cover for the $800,000 duplex placed through Mecon at a premium of approximately $4,500.
The builder had the physical works and materials covered for the full 15-month duration, demolition included, so they could get on site on schedule.
This case is a straightforward example of single-project cover done properly - confirming the scope, accounting for the demolition, and binding before the first day on site.
Single-project contract works cover needs to start before work does. Tell us about your build and we'll arrange cover sized to the project and ready for your commencement date.
