When construction contracts meet insurance: acts of war in a conflict-affected world
Summary
The article examines how regional geopolitical instability is exposing gaps between construction contract relief mechanisms and insurance cover. It explains that force majeure or similar contractual provisions may offer time or cost relief, while war exclusions in construction-related insurance policies can still leave losses uninsured.
Why it matters
Residential property surveyors involved in project monitoring, defect remediation or development work should understand that contractual entitlement and insurance recovery may diverge in conflict-related disruption. This affects risk assessment, programme expectations and the practical resilience of construction projects.
Key points
- Geopolitical instability is disrupting construction projects through supply chain and movement issues.
- Force majeure or exceptional event clauses may provide relief, but war-related carve-outs can limit or exclude it.
- Strict contractual notice requirements remain critical to preserve entitlement to relief.
- Construction insurance policies commonly include war exclusions that may deny cover for conflict-related losses.
- A gap can arise where a contractor has contractual relief but no corresponding insurance recovery.
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