Insurance issues and design and build construction contracts

One of the primary functions of a construction contract is to allocate certain risks to one or other of the parties. One of the parties is liable to the other if a particular kind of loss or damage occurs placing all the risk of that loss or damage on the other party. Some risks have enormous size in financial terms and the party to whom a risk is allocated may want to cover it by means of insurance. According to many construction contracts the contractor shall upon and subject to the conditions carry out and complete the Works in compliance with the Contract Documents, using materials and workmanship of the quality and standards therein specified. The aim of this study is to examine the insurance issues in Design and Build (D & B) construction projects constructed in accordance with FIDIC Red Book, I.C.E. (Institution of Civil Engineers) Conditions of Contract and JCT (Joint Contracts Tribunal) 05 Design and Build Contract DB and explain what Force Majeure is within the context of Construction Contracts