ASSESSMENT OF CONTRACTORS’ LEVEL OF COMPLIANCE WITH THE BUILDING INSURANCE POLICY IN JOS PLATEAU STATE
I.M. Oyemogum1 ; D. O. Adeagbo 1 ; F.S. Chindo1 & E.A. Rugu 2
1Department of Building, University of Jos, Jos 2Department of Quantity Surveying, University of Jos, Jos
Email:egooye@yahoo.co.uk, adeagbod1@yahoo.com; ruguezekiel@yahoo.com
Corresponding Author: I.M. Oyemogum1
ABSTRACT
Construction projects are complex, dynamic in nature and executed under varying degrees of risk. In view of the foregoing, the provision of building insurance services is generally considered important. However, there is a record of non-compliance with the building insurance policy. This study therefore, aims to assess the level compliance with the building insurance policy section 64 with the view of reducing the clients/financiers’ risk. In pursuing this objective, a questionnaire survey was adopted and the data was analysed using descriptive statistics, relative importance index (RII) and weighted average. The findings for the study revealed the major external risk factors in construction to be financing conditions, economic policies and standards. For the internal risk factors the study revealed poor control, errors in construction and design errors/omission. Also, on the level of compliance with the building insurance policy, the study revealed a willingness by contractors to comply with the building insurance policy however, with particular types of projects such as complex and expensive projects. Further findings of the research show that, raising cost of premiums, high collateral demands by insurance companies, complex policy language and lack of knowledge on insurance are the main challenges hampering compliance with the building insurance policy. The study concludes that contractors are willing to comply with the building insurance policy however, with particular types of projects such as complex, expensive and unfamiliar projects. The study recommends that the insurance policy be review to cover for complex, expensive and unfamiliar projects, also to make building insurance policy a compulsory requirement for contract documents and education of key stakeholders.
