The bulk of the Economic Stimulus Programme (ESP) 2016/17 approved budget of P2.2 billion involving construction projects and projects awarded and benefitting citizen owned companies. These projects have been spread across all of the government’s eleven ministries. An example of these projects is the construction of classrooms, toilets and staff houses for 39 primary schools, under the stewardship of the Ministry of Local Government and Rural Development.
Whilst most of the projects approved under the ESP have already commenced it should be noted that 2016/17 financial year is only the first year of the three-year programme and more new projects are in the pipeline.
In order to ensure the successful completion of these projects, contractors are required to purchase construction covers such as; Contractors All Risks and Third Party Liability together with Worker’s Compensation.
Contractors All Risks (CAR) offers comprehensive protection against loss or damage that can occur to the contract works as well as any third party claims for property damage or bodily injury in connection with the ongoing project. The property covered may for example be a new road, bridge, dam or even a power station and may include or exclude mechanical and electrical plant such as generators, boilers, lifts, gantry cranes etc. during assembly, construction or installation. Risks normally covered under this policy include but are not limited to fire, flood, earthquakes, theft or accidental damage.
Successful bidders’ are to also provide a Worker’s Compensation insurance certificate which all Botswana registered companies are required to have in terms of Botswana law. Worker’s Compensation insurance provides covers for employee injuries, occupational disease or death arising out of and in the course of their employment.
It is recommended that contractors should have obtained quotations and more details of the aforementioned insurance policies prior to tendering which will assist in ensuring the successful implementation of the construction projects as well as the delivery of a quality output.