The heart of a CAR policy is the cover for the contract works: the value that grows on site day by day, from the excavated foundation pit to the turnkey works. This article unpacks exactly what "contract works" means, how the cover tracks progress, and where the points worth watching are.
- Contract works = the work carried out + the materials already built in and those on site awaiting installation.
- The cover tracks the works' value at any given time – up to the stage of completion reached on the day of the loss.
- Client-supplied materials and your own labour are also part of that value.
- The key question at inception: the sum insured should reflect the full expected value.
What counts as contract works?
Everything completed or awaiting installation as part of the contract works: the structure, the mechanical and electrical services built in, and the materials and prefabricated elements stored on site. The essence of this genre is that the cover doesn't protect a finished object, but a growing value: as much, on the day of the loss, as has been completed by then. That's why there's no need for a monthly "revaluation" – but the final figure, the sum insured, does need to be set correctly: the value of the works and the sum insured.
What losses does it cover?
Sudden, accidental loss, on all-risk logic: storm and other natural-catastrophe losses, fire, water from pipes, theft and malicious damage subject to the security expectations being met, and structural collapse. What it doesn't cover is quality risk: redoing a badly built section yourself isn't an insurable loss – the consequential loss arising from the defect typically is. This dividing line is one of the genre's most important points: exclusions map.
Typical points to watch
Three situations deserve particular care. Prefabrication: an element manufactured elsewhere isn't necessarily under CAR cover in transit or at the manufacturer's premises – this is handled by the storage and transit extension. Client-supplied materials: whatever the principal provides (e.g. technological equipment) is also part of the works' value – it should appear in both the sum insured and the wording. Partial handover: the handed-over part drops out of cover while the rest remains – documenting the dividing line is worth its weight in gold at claim time: start and end of cover.
What do we ask when requesting a quote?
The contract works cover needs four pieces of information: what's being built (technical scope), for how much (full value, including supplies), where (site risks), and from when to when. These form the backbone of the property section – the other extensions build on it. For the full picture: Covers page; for the data: project data sheet.
A question tailored to your own project? Book a free 20-minute project consultation →
