Protect your Construction Projects: Risks on the Rise

• Rising construction costs:Accelerated by supply chain issues, labour costs and high demand, prices for building a new house increased by 14% in the 12 months to December 2022, as reported by Statistics New Zealand. *

• Headline inflation: Annual inflation in New Zealand remained at 7.2% in the December 2022 quarter with the largest contributors being housing, household utilities and the food group*. Construction materials are not immune to these inflationary pressures.

Are you building a new property or making structural alterations to your existing one**?

If so, it’s critical to have appropriate Contract Works insurance to best protect your investment.

• Contract Works insurance can protect your construction project from accidental loss or damage to your property while work is being carried out by a contractor.

• It may also extend to cover public liability and legal expenses.

• It’s a vital part of your business toolkit when you’re working on a construction site, allowing the Principal, Head Contractor and Sub-Contractors to get on with the job with less stress.

It’s important to arrange insurance cover before the start of any work. Earthquake, flooding and landslips are all perils that could considerably damage earthworks and foundations.

• A builder accidentally puts a nail through the water pipe, causing internal flooding to the property.
• Builders are replacing a roof, and strong storm winds ripped roofing off when it was only partially complete.

If you’re starting a new construction project, talk to your broker to see what insurance cover is right for you.