Government investment in new building techniques – is it worth the risk?
Posted by: electime 7th December 2020
In August, Electrical Times covered the announcement that the UK construction industry would receive around £350m to reduce carbon emissions as part of the government’s overall target for the country to become net-zero by 2050. £26m of the funding has been earmarked to support ‘advanced new building techniques’ in order to cut the sector build costs and resulting pollution levels.
At the same time the Construction Leadership Council published its roadmap. The plan includes reducing carbon emissions and sustaining the housing market using modern methods of construction (MMC), with the aim of increasing housing quality, resource efficiency and output, and embedding building safety considerations.
Richard Forrest Smith, CEO of ECIC — the specialist insurer for the electrical and building services contracting sector — looks at what these developments might mean for contractors and their insurance cover
I think we would all agree any investment in the construction industry is welcomed, particularly in light of the stop and start situation many have found themselves in caused by Covid-19 restrictions. The sector, including electrical contractors and engineers will see economic advantages from the new initiatives that are aimed at expanding housing stock and local infrastructure.
Modern methods of construction and embracing new technologies can often be challenging and introduce additional risks. Product and installation problems were seen when renewable energy technologies and energy efficient innovations advanced. ECIC witnessed an increased frequency in damage claims to customers premises caused during installation and through product or system issues, including some system fires.
Similarly, whilst pre-fabrication offers significant benefits reducing carbon emissions and increasing the speed of construction, errors in cable specification and choice of product have led to significant insurance losses where the same problem has been replicated over many premises.
Robust risk management can eliminate or reduce these additional risks. Familiarisation with new products and investing in training time, adapting method statements and risk assessments and updating health and safety policies will all assist. Maintaining high levels of communication with all parties engaged in the construction process is always beneficial.
Contractors and subcontractors all need to be aware of their risks and responsibilities and those that attach to the parties in the project. A Contractor should ensure when undertaking new and different technologies that they disclose this to their insurance representative so that their insurances continue to respond in the way they understand and protect the business.
Good business practice would include undertaking similar checks that subcontractors are also adequately insured. Cover to consider includes public liability to cover property damage, professional indemnity to cover errors and omissions, and contractors all risk to in respect of the materials and plant, whilst always retaining rights of recourse.
In conclusion, it is important that contractors assess and be aware of the risks they take on particularly working with modern methods of construction. By adapting control protocols and providing sufficient training and planning management, risks associated with MMC can be contained so that the industry and country can benefit from what should be welcome advancements in construction processes.
The electrical building services industry has always been quick and able to adopt to these challenges. Having the construction industry do their part for the environment by using MMC’s and green materials and methods will help to hit the zero carbon emission targets set for 2050.
