Construction Insurance: Implications Of Site Waste Management Regulations 2008

The Site Waste Management Regulations, which oblige contractors planning construction works worth over £300,000 to produce Site Waste Management Plans, came into force on 6 April 2008, as part of the government's drive to reduce construction waste.

Implications For Insurers

The government has suggested that the Regulations may lead to cost savings on works. Insurers might reasonably expect that they might see some benefit in these circumstances. Normally, insurers meet the cost of reinstatement works on an "as incurred" basis, with the result that costs savings achieved can usually be captured either in the adjustment or in the certification process.  This is, of course, more difficult if a fixed cost contract is entered into.