What is Contractors All Risk insurance?

From the conception, construction sites face a variety of hazards that could cost the contractor and all those involved both time and money if they do not have the best resources in place.

➔ What is Contractors All Risk Insurance?
Contractors’ all risks (CAR) Insurance (also referred to as contract works insurance) is a non-standard insurance policy that covers all risk normally associated with a construction project.
CAR insurance coverage is common for construction projects such as buildings, water tanks, sewage treatment plans, flyovers and airports.
With Contractors All Risks insurance, the insurance company will pay for the partially completed extension to be re-built, so you don’t have to. Without this level of protection, having to pay for the materials and labour costs in rebuilding the extension could cost a small fortune and may even render your company bankrupt.

➔ What does Contractors All Risk Insurance cover?
All Risk Insurance covers all types of building and civil engineering construction including, residential housing or estates, commercial development (such as office blocks, warehouses and shopping centres, hotels, institutional developments etc.) and civil infrastructure (such as roads, dams, storm water and pipelines), protecting the insured against the dangers that may threaten these works whilst under construction. It covers the work you are currently doing on a building site and can be designed to pay for the cost of repairing or restoring anything that is damaged or destroyed, including the cost of the labour, materials and tools.

➔ What are the types of risk in Construction Projects?
1. Property damage – damage to property can include improper construction of structures, damage that happens during a renovation and damage to temporary work erected on-site.
For example, You’ve almost completed a house extension when there’s a fire on site and the extension is partially destroyed. Your contract works insurance covers the cost of repairing the work however the client would be responsible for damage to the existing structure.
Or, you’re building a new commercial property when heavy winds and storms rip off the roof. Your contract works insurance covers the cost of replacing the roof.

2. Third-party injury or damage claims – Third parties, including subcontractors, may also become injured while working at the construction site.

➔ Who is liable to get the Insurance?
The responsibility for getting Contractor’s All Risks insurance falls on the Contractor. CAR coverage may be extended to cover the interests of manufacturers, suppliers, contractors, and subcontractors.
Taking all of the above into consideration, it is important that contractors acquire the necessary cover for their particular projects in order to ensure that they do not experience any unnecessary loss following an incident.

 

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Sources:

Investopedia
Consort
Business Dictionary
Design Buildings
Civilsure

Insurance: Expectation vs. Reality

That Piece of Paper that helps you:

1.  Own a home
2.  Drive a vehicle
3.  Help cover healthcare costs and legal expenses

The Question I think should be asked is:

Do we fully understand the contract deals, terms?
Truth be told, your broker can never explain EVERYTHING to you and who has the time to read all the fine print? Hence we then make hasty decisions based on our expectations.
Some of us get sold with a just a single telephone call without giving ourselves time to study the facts.

Expectations vs Reality

Our Expectations:

Can be based on a lot:

How well known is the insurance company?
How long has the company been around?
Who uses them?
How often and how well the company trends and advertises themselves.
Positive feedback from existing clients

An individual has the following expectations:

• A Lump sum pay-out
• No premium increases
• Saving
• Expect the Insurance company to be on your side
• Get a pay-out even when we know that our premiums have not been constant
• Inherited pay-outs

The Reality:

Insurance can offer you a second chance, a new beginning and a brighter future if all is correct and in order.

• There is an insurance that suits you
• Insurance cover is generally much cheaper when you are younger and healthier
• You can insure just about anything these days
• Think about the effects of missing one premium
• Some Insurance pay-outs are TAXED
• Insurance is a piece of mind, you rest well knowing you are protected

 

Accidents and Death are unfortunately inevitable for every home no matter the age, we will all come across unexpected issues in life that would require us to be able to take care of ourselves.

 

 

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6 Things about insurance you are too afraid to ask.

I know in the world we live in, things change on a daily basis and I am sure everyone is aware that so does your insurance.
Do you really know what you are covered for? Are you paying too much for your Insurance? And my ultimate favourite are you over or under covered?

When searching for affordable insurance you need to ask the most important questions that you might be too afraid to ask as you may think that it is not relevant or the insurer is on top of it.

Let’s have a look at the top questions that you should be asking when looking for insurance or even query with your current insurer so you are not left in the dark when you need it the most.

• What type of insurance do I need to cover me?

When sitting with your financial advisor it is always important to dive into as many questions as possible in order to get the satisfied outcome you desire.
You need to know exactly what insurance will be best for your company and will allow for you to have peace of mind that all your assets/labour are covered in any event.
Not getting the right policy might put you in a position where you will have to personally cover an accident/theft.
Present all your assets/labour to your financial advisor so they are aware of exactly what you need and let them draw up a policy that will be best suited for you.

Do not take any insurance out on a whim!!

• Do you know the Insurance Company you are buying from?

It is always good to know the insurance company’s competitors within the industry so you know the type of quality you will get from them.
Find out a bit more from the insurance company, small things might make your decision a bit easier or deter you from the company completely.
Know how they will treat you, you do not want to find out about your insurance company after it is too late and you have already spent unnecessary costs on cover with a company that did not meet your expectations.

• After sale service?

Always find out from your financial advisor if they have after sales service and what they do to keep a customer happy. After sale service is very important and can help you become a long standing client and remain happy with the Insurance Company you are with. You as a customer need to know who your contact person is and if you come across any issues they will be handled professionally and on time.

Bad service = unhappy client (You do not want to get yourself in that position)

• Fine print and cost?

Of course this will also be the breaking point for you as a potential client. You need to ensure you know all costs involved in taking out your insurance, you do not want to sign and give the go ahead and when payment is made it is not what you expected. Ending up paying for “Hidden Costs” will not help if you as a company have a certain budget and thought you were paying a certain amount but in reality that is not the case.
Always read your Ts & Cs!!

• What does your financial advisor gain from you taking out insurance?

This question is one that people stay away from mostly, you do not want to ask a personal question to your financial advisor about what he takes home from your deal. But it is something you as a client can find out, paying too much can be a result of how much your financial advisor is making it is always great to have that open communication as you are in this together.

Negotiation is the key to seal the deal!!

• Over Insured?

You as a potential client do not want to end up paying for insurance that you do not need. It does not necessarily mean you will never need it, but right now do you need to be over covered?
This is why the policy needs to suit your current position and focus on important things that you need assistance with.
Ensure you ask your financial advisor or insurance company to send you a breakdown of exactly what you are covered for so you are able to tweak what you need to ensure you know you are paying for exactly what you need.

 

 

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Contractors, Ensure You’re Insured!

Accidents, theft, negligence… the list goes on. All of these events could cost you dearly and insurance has become somewhat of a necessity in protecting companies and individuals from the harsh financial implications.
I have spent the past few days studying the various construction-related insurance products that are on offer from the many insurance companies in South Africa, as well as some of the scenarios where insurance could come into play.

Sadly, many injuries and deaths have occurred on construction sites and it is so important that contractors have insurance to cover for these unfortunate events. In one incident in South Africa this year, construction workers were hospitalised after formwork collapsed on them. In a separate incident, in 2017, a construction worker died after falling from scaffolding. Where loss, damage, injury or death has occurred as a result of a structural collapse or any other type of works failure on site, the insurer is likely to determine whether or not the structure or construction works complied with the National Building Regulations (NBR). South Africa’s National Building Regulations are a set of guidelines for construction. Failing compliance, insurance claims could be rejected.

Theft of construction equipment and machinery; damage caused by strike action, riots and violent protests as well as machinery breakdown are other examples of risks that contractors are facing. Thankfully, all of these events can be covered by insurance.

Read on to learn about a few of the insurance options that offer cover against the above-mentioned incidents.

Contractors All Risk (CAR) Insurance
CAR policies cover construction companies against loss or damage caused by fire, seasonal risks, natural disasters, vandalism, theft, liability and other possible incidents, depending on the cover that your preferred insurer offers you. It is important to note that not all CAR policies offer the same amount of cover. The duration of the cover commences at the start of the construction works and ceases when the contract is complete.

Public Liability Insurance
Public Liability Insurance can be included in CAR policies or taken out as a policy on its own, and covers against death or injuries to third parties as well as damage to the property of third parties. The main contractor assumes liability for activities carried out on site by any representatives of his company.

Plant All Risks (PAR) Insurance
This type of insurance is also referred to as Contractors’ Plant and Machinery (CPM) insurance and Contractors’ Plant and Equipment (CPE) insurance and covers construction plant, machinery and equipment against loss or damage caused by unforeseen circumstances. A CAR policy can cover plant, however, specific types of plant are only used for a small portion of the total construction period and are then moved to another site. PAR insurance would be a more suitable type of cover for these specific machines, in comparison to CAR insurance. Often, contractors will opt for a PAR policy that can be renewed on an annual basis, covering the various plant that is in operation on different sites during the course of the year.

Machinery Breakdown Insurance
Contractors can insure against unexpected mechanical and/or electrical breakdown of machinery. Under this type of cover, claims cannot be submitted for any expected breakdown arising from general maintenance requirements.

Special Risk Insurance
The South African Special Risks Insurance Association (Sasria SOC Ltd) is a state-owned entity offering short-term insurance and provides cover against loss or damage caused by violent protests, riots, terrorism and similar circumstances. SASRIA cover can only be arranged by a broker.

The aforementioned insurance policies are most-certainly not the only options that contractors have, as there are many other policies that can be taken out. That being said, contractors have a range of options to choose from in order to protect their companies and assets by ensuring they have the necessary insurance policies in place. Contacting a broker who specialises in construction insurance could pave the way for hassle-free insurance claims, should the need for a claim arise.

 

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Sources:
CivilSure
Carl Greaves Brokers
RBS
Master Builders Insurance

Common causes of Construction delays.

What is a construction delay? Well in lamens terms anything that prevents a site from moving forward is a delay.

There are many different causes of construction delays However many of them can be prevented.

Weather, well we all might be thinking that we cannot control the weather, which is 100% correct, however one can watch the weather forecasts closely and plan ahead as far as possible.
There are many reliable weather sites available to us now days, so one should make use of them and plan accordingly IE one cannot lay roof sheets if you are expecting gale force winds, and you cannot pour concrete when it is raining.

There is however an old saying in the industry “ rain before 7 clears by 11” not too sure how true this is but it’s something I have heard many times before.

• Insufficient funding, Oh yes MONEY can make or break a site. If the budget is not sufficient enough then this can have an enormous impact on the project, or if funding is not adequately released during the correct phases of the project then this too can have a huge impact, as this impacts delivery of goods, wage payments etc.
• Decision making, Yip you heard right, if the Client cannot make up their mind during the project then this will cause serious delays, as well as if the client is changing their mind constantly, as the contractor and their subbies must now sit and wait for the final decision because if the contractor make his own decision then the client might not pay.
• Poor Coordination. Now I am sure that we have all heard contractors blaming subbies and subbies blaming contractors , however it boils down to poor coordination / Time planning, if a contractor does not order their materials timeously the manufacturer cannot produce it on time , causing delays. If the Subcontractor or manufacturer does not plan ahead, and manage their own production correctly this too will cause delays.
• Unskilled labour, Many people think it’s quite easy to lay bricks, or to tile, piping etc. when in actual fact if you do not know what it is that you are doing it will cost the site time and money to break done what has been done in order to fix it if it has not been done correctly leading in the obvious Time delays.
• Incorrect designs, Yes designs…. If the professional consultant has not done all the correct designs, just a simple error can cost a huge time delay on site to try and correct or amend to make the design work again…
• Then there is the ever popular Labour issue which is so common in South Africa. If you’re Labourers or SMME’s are not in agreement with regards to rates or wages, they often shut down an entire site and no further construction will commence until the dispute has been resolved.
• Community related issues, this can cause huge delays , especially if there has not been a community buy in on the project, because the project is been done within their community, it needs to be of benefit to them, and if they do not feel it is for the better of them, they will be stopping the project as well.

This leaves me to the conclusion that it’s definitely quite a stressful job being in the construction industry as everything needs to run like a well-oiled machine.

PLAN, PLAN, PLAN!

 

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Time Management

Time management is the process of organizing and planning how to divide your time between specific activities.
Good time management enables you to work smarter and not harder in this way you get more work done in less time, even when time is tight and you are stressing.
It is the process of planning and exercising conscious control of time spent on specific activities, especially to increase effectiveness, productivity and efficiency.
It is a key aspect of project management and involves skills such as planning, prioritizing and setting goals for a better performance.Management

Essential time management skills: • Goal Setting • Prioritisation • Self-awareness • Self-motivation • Focus • Decision making • Planning • Communication Skills

Time Management of Construction Projects:

Time management is the organising and putting in to place a strategy related to the time required for work activities on a project. Effective time management is essential to successfully and efficiently meeting budget and programme targets, as well as achieving profitability.

Projects can risk unnecessary cost and delays as a result of bad or ineffective time management, either by failing to allow for the full details of the project or by failing to effectively manage the work schedule properly, In a large project the client may appoint a programme consultant to structure a detailed programme for the project at hand that includes an outline programme for construction if the contractor has not been appointed.

Once a contractor is appointed they will then take over the construction works but the programme consultant may continue to develop an overall programme for the client.
While in the planning stage all work activities needs to be properly understood and thought out. This needs to be planned in detail, meaning all work needs to be understood and the role everyone plays.

Estimates can be made of how long each activity will take. This is critical to the setting of millstones and deadlines, for allocation of resources, and for determining the pricing of contracts and cash-flow requirements.
Construction is a complex process, involving a number of activities and participants throughout the entire undertaking. The requisite tasks, as well as the responsibilities of the owner, architects, contractors, and subcontractors may be organized in many different ways to deliver the desired result.

Time management is critical for all in the construction process, including Contractors, Architects, Owners, and Subcontractors. Professional management and administration of the contract time is crucial to avoiding and minimizing time and cost overruns.

To maximize the chances of success all that is involved need to have full understanding of:
• Delays and how they can happen.
• Basic concepts of schedule and delay analysis methodology.
• Critical path scheduling techniques, the accompanying scheduling specifications, and the software used.
• Pros and cons of numerous schedule and delay methods used by construction project participants.

Major factors impacting successful project delivery include:

• Construction brokering by the contractor
• Errors and insufficient time extensions, and varying site conditions.
• There is also the risk of uncertainty and misunderstandings in terms of what is an acceptable standard of proof for acceptable delays.

Justifying a Delay
Whenever a delay happens early attention and timely action of the owner or construction manager is required. It is important to identify the responsible party quickly, developing and implementing a plan of action.

To do so, it is of great importance to have an effective plan for preparing a timely assessment of changes and delays, making it possible to formulate a clear, brief, persuasive position on each of them.
Because time is finite, construction project managers must use their limited time as productively as possible. Below are some time management tips for construction managers to help them manage their time:

• Keep the project schedule at the forefront
• Prioritize your task list
• Delegate tasks as needed
• Conduct actionable meetings
• Communicate clearly and effectively
• Use the right tools

 

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Sources:
Science Direct
eSub

Women in Mining

Men continue to outnumber women in many industries and sectors. However, just because you’re outnumbered doesn’t mean you can’t be a huge success. Woman entering the mining industry is a fast growing phenomenon. Mining is seen mostly as a male dominated environment but this is changing.

Not so long ago, in the 1990’s when I was born, woman weren’t permitted to work. And now look at us! Dominating and working in all kinds of industries, showing that we can do anything and do it just as well.

Many steps have been taken to allow woman equal opportunity in this industry and South Africa is leading this movement.

Working in the mining industry can be a difficult journey and is often misunderstood. Initiatives in the form of bursaries have been introduced in an attempt to attract young women to compete in these male dominated sectors.

Barriers:

• It’s a mine, what did you expect? It’s going to be dark, dusty and hot. Greasy workshops, muddy sites and hot furnaces. Mines were not designed with Woman in mind. Some mines lack proper toilets and hygiene facilities but this is changing as we adapt to having Woman in the industry.

 

• Super Woman. You have to be considered tough and be willing to work hard and long hours. Most mines require overtime and this could mean waking up at 2am or trying to organize a baby sitter for the night shifts.
• Woman are seen as primary caregivers and you will need to balance life, childcare and work.

• Look, you will be working with Men and might experience verbal harassment in the workplace. Treat people well and do not entertain confrontation or get defensive. Show you’re a strong independent woman. Take the proper steps to report the incident.
• Some men won’t want to be led by a woman. “I’ve been doing this for years and don’t need to be told by a woman what to do or when to do it.”
• Gender Equality. You will not receive special treatment just because you’re a woman.

Benefits:

• Most Wanted. That’s right! Opportunities will come flying at you as you are one of the few woman qualified and able to work in the mining industry.
• It is a huge achievement to work within the mining industry and takes hard work and years of studying. Bragging rights.
• Role Model. Other young females studying mining engineering will have you as their poster on their wall.
• The Money. Always go where the money is.

Money

I know you were all thinking it. Is it worth it? Well, just like any other job, the money depends on your experience and what position you hold in the workplace.

I read about a 37 year old woman named Bukelwa Dwenya, who works at Sibanye Mine in Rustenburg, North West. She said she earned about R20 000 a month excluding her bonus and other benefits and worked 8 hours a day like you and I do. She is responsible for lowering and lifting workers in a cage down to a depth of about 11 000m throughout the day.

The average mine worker earns about R109 to R120 per day. There are also other positions such as in management or drilling operations, drivers or safety officers.

I read that Impala Platinum Mines’ salary for a driver was sitting at R7000 per month and about R52 000 per month for a safety officer.

Tenders

More money 😉 Get tender opportunities for your mining business through an extensive resource of online tender notices at Leads 2 Business. Successfully applying for the correct tender can help you to win large orders and grow your business. By partnering with Leads 2 Business, we offer you a large database of mining opportunities in Africa and Southern Africa.

Fashion

Mining clothing has changed and is now tailored to woman and their needs. Many clothing companies have managed to create comfort through intelligent and innovative designs. There are many things to consider when creating clothing for mine workers.

• Ensure maximum safety
• Visibility
• High standards and quality
• Performance
• Durable
• Movability

As a woman, wearing a full overall is not ideal, especially when you need the loo and you have to fully undress in a little stall.

Covergalls is one of the sites I have been looking at and they have come up with some pretty nifty ideas. They made woman’s mining clothing with a roomier chest area, the right length and adjustable waistband (lord knows how we need this). They also have a hidden zipper leading to a trap door solving the whole bathroom dilemma mentioned previously! Immediately I went to look at the colours you can choose from – Navy Blue, Safety Orange, Royal Blue and red. Hamm I didn’t see hot pink anywhere? Hopefully this is in the pipeline 😉

 

Types of Mining

• Coal mining
• Gold mining
• Surface mining
• Underground mining
• Subsurface mining

 

Should I do it?

Listen, from what I have read, it’s no picnic. It seems like one of the toughest industries and I’m not going to sugar coat it. You will need to work hard and be one tough cookie! Take nothing to heart and know your worth. Work until they no longer see you as “Just a Woman” but as a leader. If you feel you can do it and are passionate about mining, I’m sure it would be absolutely worth it. There are many perks and I think it would be an amazing opportunity. I would say – “Go for it.”

 

SA Schools of Mines

• University of South Africa (UNISA) – I had a look at mining engineering, this is an 8 year course.
• University of the Witwatersrand (WITS) – Johannesburg, South Africa
• University of Johannesburg – Johannesburg, South Africa

 

Change your mind set, adapt to the ever changing world and grow with the future. Know more – do more.

 

#WomenInMining #MiningEngineers #Mining #MiningTenders #MiningInSouthAfrica #Women #EqualOpportunity #MiningIndustry #WinningWomen #GoldMining #Diamonds #Coal #CoalMining #Covergalls #ProtectiveClothing #MiningInAfrica #MiningWoman #MiningPeople #WIM #WiMSA #MiningIndustry #WorkingWomen #WomenMiningEngineers #LadiesInMining #SchoolOfMines #Equality #GenderEquality #FaceofMining #MiningUniversity #MiningDegree #MiningLadies #GoldMine #Miners #UndergroundMining #MiningSector #FutureOfMining

 

Sources:
Wikipedia
Mining Review

 

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What is the difference between opencast & underground mining?

Mining is something quite extraordinary. When we think of mining we think dusty, dark, unflattering settings. In contraire it is quite in fact the opposite.

 

So what is open cast mining?

Open cast mining is the removal of rocks or sediments that contains minerals, with economically important elements.

The advantages of open cast mining:
• More cost effective, than shaft mining
• The working conditions are safe for miners, there is no risk of toxic gases or cave ins
• Trucks and mining machinery can move around freely

Have you ever wondered what extraordinary materials are extracted from the open pit mining?

Here are a few:
• Coal – used for electricity generation, steel production, cement manufacturing
• Marble – Used for its beauty in architecture & sculpture
• Granite – Used in countertops, floor tiles, cemetery monuments
• Metal ores – important to industry & trade, like gold, copper & iron
• Diamonds – are known for their durability & lustre. Aside from being a beautifully polished gem, diamonds are also used to cut, grind or drill other materials.

Underground mining uses different underground mining techniques to excavate hard minerals, such as ore which contains, gold, copper, silver zinc. Underground mining not only produces gold, copper & silver but also precious gems like diamonds & rubies.

The advantages of underground mining:
• There are no damages to the surface environment or mine area
• The ground does not require blasting with explosives
• There is a higher production volume
• Cost effective than surface mining

The types of underground mining:
• Room & pillar mining –
• Longwall mining
• Slope mining
• Block caving

Mining is important to the South Africa Economy. Not only is gold one of the biggest exports it also creates one million jobs.

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Sources:
Ritchie Wiki
Born 2 Invest
Wikipedia
Sciencing
EBRD
Brand South Africa