Do's and Don'ts Regarding Construction Project Reports (With a Simple Explanation of the Underwriting Process)
Jul 27, 2021
מאת: אתי זוהר ואורה נחום
בשנים האחרונות אנו עדים לעדכונים ושינויים בעולם ביטוחי הבנייה שהופכים את התהליכים מול חברות הביטוח למורכבים ומאתגרים. בין השאר אנו רואים עלייה דרמטית במחירים, קושי בקבלת כיסוי ביטוחי הולם ועזיבה של מבטחי משנה בחו"ל את שוק ביטוחי הבנייה בישראל.
בתוך התפאורה הזו חשוב לשרטט דגשים בנוגע לתהליך החיתום בכלל, ולדיווחים על פרויקט בנייה בפרט. להלן מספר כללי עשה/אל-תעשה בעניין זה.
By: Eti Zohar and Ora Nahum
In recent years, we have witnessed updates and changes in the world of construction insurance that make the processes with insurance companies complex and challenging. Among other things, we see a dramatic increase in prices, difficulty in obtaining adequate insurance coverage, and the departure of foreign reinsurers from the construction insurance market in Israel.
Within this setting, it is important to outline some points regarding the underwriting process in general, and construction project reports in particular. Below are a number of do's and don'ts in this regard.
Don't wait for the 90th minute.
The process of underwriting a contractor's policy begins with contacting the agency for a quote, or alternatively for insurance for a new project when the contractor/developer is insured with an annual general policy. The agency's role now is to price the insurance to the client according to the circumstances.
Please note that this is a time-consuming step , as the insurance agency acts as an intermediary between the insured and the insurance company. This dialogue requires in-depth attention to detail, and therefore the necessary time should be allowed. A few days at least, and preferably a week to a month in advance.
It should be noted that with regard to large projects (from 50 million NIS and above), as well as projects for the preservation of the 38/1 OTM (reinforcement and expansion) - and projects adjacent to adjacent buildings - reports must be made approximately two months before the start of work, and preferably even more.
We mention the above issue because life experience shows that contractors and developers do not always internalize the manner of conducting negotiations "behind the scenes" with the insurance company (appealing, receiving answers, responding, etc.). Contractors and developers who fail to allow enough time for this process may find themselves delayed in schedules in a "seemingly unexpected" manner.
תהליך החיתום של היזם/הקבלן בפוליסה קבלנית מתחיל עם פנייה לסוכנות לקבלת הצעת מחיר, או לחילופין לביטוח פרויקט חדש כאשר הקבלן/היזם מבוטח בפוליסה כללית שנתית. תפקידה של הסוכנות כעת הינו לתמחר את הביטוח ללקוח בהתאם לנסיבות.
שימו לב כי זהו שלב שאורך זמן שכן סוכנות הביטוח משמשת כמתווכת בין המבוטח לחברת הביטוח. דיאלוג זה דורש התעמקות בפרטים ועל כן יש להותיר לו את הזמן הנחוץ. מספר ימים לכל הפחות ורצוי שבוע עד חודש מבעוד מועד.
יש לציין כי בכל הנוגע לפרויקטים גדולים (מ-50 מיליון ₪ ומעלה), וכן בפרויקטים של שימור אותמ"א 38/1 (חיזוק והרחבה) - , ופרויקטים בצמידות למבנים סמוכים- יש לדווח כחודשיים לפני מועד תחילת העבודות ורצוי אף יותר.
אנו מציינים את הסוגייה הנ"ל שכן ניסיון החיים מלמד שקבלנים ויזמים לא מפנימים תמיד את אופן ניהול המשא ומתן "מאחורי הקלעים" עם חברת הביטוח (פנייה, קבלת תשובות, מענה וכו'). קבלנים ויזמים אשר לא ישכילו להותיר די זמן להתנהלות זו עלולים למצוא את עצמם מתעכבים בלוחות הזמנים באופן "בלתי צפוי לכאורה".
Many contractors and developers make the mistake of sending out a project report form in a hurry. Reports are often received that are not detailed enough and do not include – as required – a signature and stamp. This is both a substantive and procedural matter, and should not be taken lightly. Reports that are not completed as required will be returned to the insured for completion and may cause unnecessary delays.
Please note, we often learn about a gap between the "world of concepts" of insureds and the language of insurance companies, and this is a "shortcoming in communication" that leads to errors that are not bound by reality. Errors that may cause delays and embarrassment. We are in a "world of information" and insurance companies demand that their insureds know as much as possible. They want to receive more information, perform more tests, and take on the most calculated risk from their perspective.
This is especially true for large and complex projects that require, for example, sending a surveyor to the site (such as buildings for conservation, a project according to TAMA 38), and in the end it is a matter of "timing". The more the client is able to detail the complexity of the project and the scope of the work, and the more careful he is to meet the resolutions expected of him, the shorter the time frames for receiving insurance coverage will be and the better the quality of the policy and the quality of service will be.
Make sure to provide a complete and detailed report with a signature and stamp.
A contractor or entrepreneur entering into a construction project must present the work orderer with an "insurance certificate" from the insurance company. It should be emphasized that although insurance certificates are "standard" - they often include special requirements, exceptional insurance amounts, etc.
The contractor/developer cannot expect to receive the signed As-Is certificate within a day and must understand that special requirements require contacting the insurance company accordingly.
Please note that this is a critical issue regarding signing the agreement with the work client even before contacting the insurance agency and/or insurance company. From the moment the contractor or developer signs an agreement with the work client, he is obligated to obtain an insurance certificate that includes the special requirements he agreed to .
Unfortunately, experience shows that contractors and entrepreneurs who are in a hurry to "close the deal" tend to ignore the insurance clauses in the agreement with the client or at least take a lenient approach to them. When they act in this manner, they find themselves faced with a broken trough when they are required to present the policy as an appendix to the agreement and it turns out that the insurance does not meet the needs that were defined in advance.
From here begins a mess that delays the work, increases its cost, and sometimes even causes explosions and business-legal disputes. Please note that before the agreement is signed, it is very important to thoroughly examine the insurance requirements of the client and the insurance clauses should be submitted for review by a professional agency. This is also the right time to negotiate with the client regarding specific clauses while attempting to eliminate/flex draconian requirements that will not allow for obtaining proper insurance.
Insurance approval for the work order – not always a matter of hours
In conclusion,
The quality of the insurance and the timelines for its issuance depend greatly on a serious and uncompromising approach to the preliminary stage of underwriting and reporting on the project. It is recommended to consult with a professional insurance agency that is well-versed in the subject, and it is highly advisable not to wait until the last minute. Construction insurance, and in particular complex and challenging construction insurance, requires time and experience to obtain. Dealing with them "at the last minute" is a sure recipe for unnecessary delays that are not due to reality.
טיב הביטוח ולוחות הזמנים להנפקתו תלויים רבות בהתייחסות רצינית ובלתי מתפשרת לשלב המקדים של החיתום והדיווח על הפרויקט. מומלץ להיוועץ עם סוכנות ביטוח מקצועית המכירה היטב את המטריה, וכדאי מאד שלא להמתין לרגע האחרון. ביטוח בנייה, ובפרט ביטוחי בנייה מורכבים ומאתגרים, דורשים זמן וניסיון להשגתם. התמודדות עמם "ברגע האחרון" היא מתכון בטוח לעיכובים מיותרים שאינם מחויבי המציאות.
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