ABSTRACT
An important division of risk in any project concerns the allocation of responsibility for the loss or damage to the Works, the Goods and the Contractor's Documents. As is common with most international construction contracts, the FIDIC forms envisage that the Parties may be required to give various securities to protect against the risk of non-performance of the obligations of that Party. The FIDIC forms assume that the Contractor will be responsible for effecting and maintaining the insurances. However, all the Books apart from the Gold Book provide flexibility as to which of the Parties is to effect and maintain the required insurances by referring to the “insuring party” as being responsible for the different insurances, instead of specifying the Employer or the Contractor. The insurance for works and Contractor's equipment and the insurance against injury to persons and damage to property are required to be in the joint names of the parties, unless agreed otherwise in the particular conditions.
