The judgment arises in the context of an application for summary judgment made by the NHBC based on a limitation defence. The 88 Units were covered under the well-known Buildmark choice contract of insurance issued by NHBC, which covered Catalyst against various construction risks, including contractor insolvency before practical completion.
Construction began on 14 December , but Vantage faced financial difficulties, leading to the appointment of administrators on 29 June After squatters were removed from the site in September , Stack began the completion of the construction works. When the section applies This section applies if you lose the amount paid to the contractor in accordance with the building contract or have to pay more to complete the building of the home s , because the contractor is insolvent or commits fraud.
When you can claim You can only claim under this section up to the date of the Buildmark Choice certificate. Contact us and tell us if you have lose the amount you paid to the contractor or the contractor has not completed the home s.
What we will do We will pay you the reasonable extra cost above the contract price including professional fees, for work necessary to complete the home s to the NHBC requirements; or. We will reimburse the amount paid to the contractor in accordance with the building contract which cannot be recovered from them.
In addition, we will pay the cost of reasonable precautions to secure the work defined in the building contract against unauthorised entry, theft and vandalism until work resumes. The judge referred to this as the Insolvency Point.
