UP TO 15% DISCOUNT ON LATENT DEFECTS INSURANCE FOR BIW CUSTOMERS

10 June 2001

Clients using the Building Information Warehouse (BIW) web-based supply chain management tool, Information Channel, can now benefit from discounts on latent defects insurance. Through insurance broker GHBC, insurer Norwich Union is the first to offer the discount as recognition that Information Channel can reduce the risk of latent defects.

Using BIW's system ensures that everyone involved in a building project has access all the right information at the right time, diminishing the risk of inherent or latent defects in design or construction. The discount would be unique to each project and depend on factors such as whether the scheme is complex and uses new methods or a repeat project using standard methods and materials.

Stephen Godbold, GHBC director and instigator of the scheme, said:

"The Information Channel provides a facility to involve an insurance company at a very early stage of a project. Insurers can sometimes find it difficult to get control measures in place to assess risk, but the Information Channel makes this totally transparent. It allows us to access all the relevant information and get involved from the planning stage. From our point of view, this makes it easier to assess the risk of latent defects, which means we can pass on this advantage in the form of lower premiums of between five and 15 per cent."

Colin Smith, chief executive of BIW said:

"We are really pleased that Norwich Union has recognised the reduced risk that using the Information Channel permits and transferred it into a discount scheme. It reinforces the cost effectiveness of our system to both the client and construction management team. We hope that other insurance companies will follow Norwich Union's lead and offer similar discounts."

Latent defects insurance is a relative newcomer to the UK. The policy applies to non-residential property and provides an indemnity against inherent or latent defects in the building or design of a project. For many forward-thinking organisations this type of policy is an important addition to their construction risks programme, and is regarded as an asset for the building, especially if the owners subsequently want to sell on.

BIW will be holding seminars on the whole issue of latent defects insurance in the autumn - to register contact Debbie Preece on 0845 1300 800.

More information from:
Paul Wilkinson, BIW 0845 1300 800 or mobile 07788 445920

Notes to editors:

• BIW's project collaboration systems were first employed in 1998 on UK construction projects for Sainsbury and BAA. The customer list now includes Capital One Bank, housebuilder Crest Nicholson, Marks & Spencer, Manchester Airport, Ikea, the Welsh Development Agency, developer Garbe UK and Asda. As the technology is adopted by each client's supply chain, BIW's Information Channel user base has grown to over 5500 people from 920 companies working on some 350 UK projects.
• BIW Information Channel is a sophisticated web-based supply chain integration tool or 'project portal', designed specifically for construction projects. Each client is provided with a unique project-specific website created around a knowledge database. Using this, all the building data can be made available to every project team member - from the earliest concepts and specifications, through detailed design, buildability studies, pre-fabrication, construction, maintenance and operation of the building, to the eventual demolition or dismantling of the facility.
• ghbc insurance brokers is the trading style of Godbold Hadden Ltd, a registered insurance broker specialising in solutions for corporate clients. Formed in 1991, the company has become one of the largest independent brokers in the area by providing a bespoke and specialist insurance service, and has earned a reputation for innovation and professionalism. The company provides broking and consultancy services to more than 1,500 organisations on a national basis. Further information can be found on the company's website: www.ghbc.co.uk.
• CGNU's combined life and pensions retail fund and general insurance businesses in the UK operate under the Norwich Union brand. CGNU's principal business activities are long term savings, fund management and general insurance with worldwide premium income and retail investment sales of £26 billion and assets under management of more than £200 billion.