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Question
Is procurement of third party insurance required to be incorporated in deal for construction works?
Answer Purpose of third party insurance is to guard contractors from bankruptcy in case there are severe accidents happened to third party due to construction work. Then, in government contracts, contractors are requested contractually to secure third party insurance from origination of contract until end of preservation Period. If contractors have financial ability to handle the claims because of accidents to third party, client is not bound to include this necessity in contract.
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