High-rise buildings lit at night
07 Insurance & bonding

Cover in place before the first cut of ground.

Policies are taken out per project and the certificate goes into your file at contract signing. If your consultant or bank needs to be named on the policy, tell us before we bind it.

SHEET 07 — INSURANCE & BONDING
Cover What it protects Limit Period
Contractor's All Risk Works in progress, materials on site, plant and temporary works Contract value Start to handover + 12 months
Third-party liability Injury or property damage to neighbours and passers-by NPR 10,000,000 Duration of works
Workmen's compensation Site workforce, per the Labour Act 2074 Statutory Annual, all sites
Plant & machinery Owned equipment on site and in transit Book value Annual
Personal accident Every worker registered on the site muster NPR 700,000 each Annual
Bonds & guarantees
  • Bid bond — 2–3% of the bid, issued for tendered work
  • Performance bond — 5% of the contract value, released at completion
  • Advance payment guarantee — equal to any mobilisation advance, reduced as it is recovered
  • Retention — 5% held from each bill, half released at handover and half after defect liability

Guarantees are issued through our bank's Lalitpur branch, normally within five working days of a written request. We have never had a bond called.

Defect liability runs 12 months from the completion certificate on new build, and 5 years on waterproofing workmanship. During that period we return for defects at our cost. Damage from misuse, alteration by another contractor, or lack of maintenance is not covered — and we will say which one it is honestly when we inspect.