What is the potential liability and who pays?

[Keys]

House insurance, for the affected home owner.

Nope, that claim has been dismissed at this stage.

[Maccachic]

Public liability or Construction Insurance if it was taken out?

[Wayne]

Public liability or Construction Insurance if it was taken out?

Demolition or not if I was to employ someone to cap a well I'd expect them to carry the insurance.
No different from getting someone to build a drive and they damage a neighbours property in the process.

[Meehole]

Demolition or not if I was to employ someone to cap a well I'd expect them to carry the insurance.
No different from getting someone to build a drive and they damage a neighbours property in the process.

Oh yes lets just put all the responsibility, liability and cost onto the contractor. As the owner of the property we are responsible for nothing??

[Wayne]

Oh yes lets just put all the responsibility, liability and cost onto the contractor. As the owner of the property we are responsible for nothing??

As the owner of the property you are responsible for paying the bill.
Are you suggesting that, if I got a contractor in for anything, I'd need to get insurance for the public liability?
They're the professionals and that's what they get paid for surely?

[Meehole]

The contractor should have their own PL Insurance but maybe doesn't have CAR (Contractors All Risk) insurance. Because of the earthquakes it was almost impossible for a couple of years to get CAR insurance and because of this most ran the gauntlet with just PL.
Oh yes they are the professionals and as such pay all the fees and such associated with being a professional but when it comes to including those costs as P & G into an hourly rate, the reaction is oh no you're too expensive, how can you possibly charge me that much??

[Wayne]

The contractor should have their own PL Insurance but maybe doesn't have CAR (Contractors All Risk) insurance. Because of the earthquakes it was almost impossible for a couple of years to get CAR insurance and because of this most ran the gauntlet with just PL.
Oh yes they are the professionals and as such pay all the fees and such associated with being a professional but when it comes to including those costs as P & G into an hourly rate, the reaction is oh no you're too expensive, how can you possibly charge me that much??

Great - so you wouldn't expect me to have seperate insurance for a job I get a contractor to do.

[Meehole]

Great - so you wouldn't expect me to have seperate insurance for a job I get a contractor to do.

We advise all our clients that we are covered (PL insurance) but that they need to get their own CAR insurance if required (for jobs over $30K) and to ensure they notify their insurance company of the repair works that are going on.
Yes I would expect you to have the relevant insurance to cover a job a contractors doing.

[Norwest]

Meehole, just because you advise the client that you don't have proper insurance, doesn't make you any less liable for your negligence or incompetence.

[Meehole]

Meehole, just because you advise the client that you don't have proper insurance, doesn't make you any less liable for your negligence or incompetence.

Norwest it depends what insurance you are referring to. Nothing will cover for negligence or incompetence but post the earthquakes it was virtually impossible to get Contractors All Risk Insurance. After speaking with our insurers at the time they advised us of what I wrote in post #23.
What exactly do you think a contractor should hold insurance for? How much as a client would you be willing to pay a contractor as part of the hourly rate if they were covered for every possible scenario? Probably stuff all I'd say.
Don't forget contractors can be clients too but maybe their expectations about liability are a bit more realistic than the general publics?
Auckland is a different kettle of fish to Christchurch, insurance and liability is not the number one topic on peoples minds when sourcing a contractor, its usually about price.

[donthatetheplayer]

I'd think the contractor is liable. You've engaged them to plug the well, not the mains lines. They've caused the fault due to negligence. A reasonable person would expect the contractor (professional) to be aware of the possible risks and take appropriate precautions. Unless the contract specifically limits their liability this could be an expensive exercise for them. I hope they've got insurance.

Any update keys?

[Keys]

Insurer for the contractor is still investigating.

[Wayne]

Don't forget contractors can be clients too but maybe their expectations about liability are a bit more realistic than the general publics?
Auckland is a different kettle of fish to Christchurch, insurance and liability is not the number one topic on peoples minds when sourcing a contractor, its usually about price.

I expect you are right in your last statement.
My (public) expectation is that the contractor do what I paid them to do and if they cause any issues (like in this thread) then they pay to remedy.
I don't think this is an unreasonable expectation.

[Viking]

Scenario. Owner has an older style property with five bedrooms rented to four mid 20s lads. Kept in reasonable, but not good, condition. Next door is a home due for demolition. Next door has a well. Next door gets a contracor to cap the well. Contrator plugs the well with cement filled grout under high pressure.

The grout finds its way to the council owned mains on the street and, as people in the street use their water supply, it finds its way into the homes.

Our owner has cement filled grout throughout the home, pipes, HWC, dishwasher etc.

What is the potential liability and who pays?

Intriguing.
How was the well in anyway connected to the council mains and how far from the mains was the well?
What state were the council mains in that grout was able to ingress into the main.
Doesn't sound like a very good council asset.