Insurance Lifeline For Construction Projects
Construction project manager and surveyor, The Vinden Partnership (TVP), has launched a unique Latent Defects Insurance package for completed and partially completed projects where warranties and guarantees are no longer available.
Construction project manager and surveyor, Vinden (Vinden), has launched a unique Latent Defects Insurance package for completed and partially completed projects where warranties and guarantees are no longer available.
With the construction sector in turmoil, projects across the UK are stalling as developers, contractors and sub-contractors go into administration. Any warranties entered into at the beginning of a project become worthless upon failure of the issuing party and the cost of correcting poor workmanship, failing materials or design then has to be passed on to the developer or funder.
To help developers and landlords protect themselves, Vinden has secured a unique agreement with a leading insurance provider to provide Latent Defects Insurance cover on both complete and partially complete projects. Previously only available at the start of a new development, the policies now available through Vinden will cover any structural issues that arise in a ten-year period following completion.
Peter Vinden, Vinden’s managing director says: “We expect that this will give the construction sector a much needed boost. The Latent Defects Insurance policies reduce the risk to funders and will also provide considerable help to insolvency practitioners appointed to recover debts on behalf of the creditors of insolvent construction companies.
“We are the only organisation I am currently aware of that is able to offer Latent Defects Insurance cover on partially complete properties. We are sure this will help developers not only by protecting their projects from possible future remedial costs, but also by improving their access to finance. This insurance cover will remove a considerable amount of risk for funders and may help kick start lending to the construction sector.”