1.0 Introduction
1.1 Background Of The Study
The insurance policies to building project contract cannot be over emphasized. The term insurance is a cover used for projecting one self from the risk of a financial loss. In the construction industries, building project contract are contracts that exist and agree between the client and the contractor, therefore, this study shall go a long way to determine the extent to which insurance will cover in building project contract.
The type of contract which one involves itself with can affect him/her in insuring the contract. It chose the Turkey contract system, the contractor can then insure the site, this makes his work more interesting and effective.
In construction period, clients are expected to insure their property, this study also creates awareness of insurance policy to client and other bodies involved in the contract.
Construction sites are inherently dangerous places. This is why construction insurance is an important policy to have if you own, run or manage a construction site. Construction insurance provides safeguards for you as an employer against your construction workers being insured on site. Construction insurance does not exempt one from maintaining a safe work place. Usually construction insurance policies only pay out if a strict set of health and safety guidelines are followed.
1.2 Statement Of The Problem
The building project contract in cooperation with insurance policy cannot be ignored. In the construction industries there is need for every project contract to be insured. The following points are reasoned for the study.
- The non incorporation of insurance policies to building project contract.
- The lack of client awareness to building project contract insurance.
- The insuring of construction site
- The insuring of building and property
- The non compensation towards failure of structures.
1.3 Aim And Objectives of Study
The major aim of this study is to incorporate the insurance policies to building project procurement Objective. In achieving this aim, the following specific objectives were laid out as follows:
- To determine the level of risk in construction site that needs to be insured.
- To analyze the building project construct insurance.
- To ascertain the impact of insurance in building projects.
- To determine the awareness of client with regards to insurance.
1.4 Significance Of The Study
The significance of the study indicate that insurance policies create immeasurable awareness to building project contract especially in building project contract, insurance policy ensured that every part of the contract involved are benefited. The following list benefit in building project contract with insurance;
- The construction site
- The owner of the size (client)
- The general public
- The area that need more academic pursuit
1.5 Research Question
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is insurance?
- Do insurance policies have impact on building project contract?
- What areas do insurance policies cover in building project contract?
- Who are involved in insurance policies?
- What factors affect insurance policy?
- Does most erected infrastructure in Nigeria undergoes insurance process?
- Most insurance companies are they really registered or not?
1.6 Scope Of The Study
The scope of this study focus on identifying the insurance policies to building project contract. In project contract insurance policies, incorporate making sure that all activities on construction site were properly managed.
This determines the extent of insurance policies towards the construction site that need to be insured. The area which the insurance policies cover in building project contract ands also some of the factors that could affect the insurance process to building project contracts.
The fact that project contract needs to be insured, the client awareness towards the building project contract insurance and also the contractors are all necessary and should be determined properly.
1.7 Limitation Of The Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint:
The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies:
Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint:
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).
1.8 Definition Of Terms
Insurance Policy:
All law lexicons define insurance policy as a contract whereby, a person called the insurer or assurer, agrees in consideration of money paid to him, called the premium, by another person called the insured or assured, to indemnify the later against loss resulting to him on the happening of certain events.
Policy:
The policy is the document in which is contained the terms of the contract.
Source: Osborne’s Law Dictionary, 4th edition p. 178
Insurance:
Insurance is the act of purchasing a security risk, the assured, anxious to protect himself against a risk, purchases from the insurer the right to be indemnified if the risk should materialize.
Source: Slater’s Mercantile Law, 14th edition by Lord Chorley and O.C.Giles
Contract:
A contract is an agreement between two or more persons enforceable at law.
Source: J.O IRUKWU (1971)
Insured Or Assured:
The person who has purchased an insurance policy and is protected by it, sometimes also referred to as the assured.
Insurer:
Insurance Company
Peril:
A cause of loss such as fire, earthquake and flood.
Source: Risk Management Division 1st edition effective-March 2007
Premium:
An amount of money that you pay once or regularly for an insurance policy.
Sources: Oxford Advanced Learners Dictionary 6th Edition.
