ABSTRACT
It is important that liability for losses resulting from personal injury or damage to property or to the works is agreed beforehand and that the liability is backed up by appropriate insurance cover. Most building contracts provide for the contractor to indemnify the employer in respect of certain losses. Clause 5.1 of MW16 covers injury to persons which arises from the carrying out of the works. The contractor is liable and indemnifies the employer. Domestic sub-contractors may be liable for losses caused by their negligence (BT v James Thompson & Sons). It should also be noted that the contractor might remain liable for some consequential losses (Kruger Tissue v Frank Galliers), and for damage caused to the works and insured under clause 5.4B.2. Where the damage to the works and site materials is covered by the works insurance policy, the contractor, after due inspection, is obliged to make good the damage and continue with the works (cl 5.6.4).
