Contractors Will Have To Insure Their Projects – MDA Still Finds New Regulation ‘Weak And Ineffective’
After the Malta Developers Associaiton referred to Legal Notice 166 as, “weak and ineffective,” the Public Works and Planning Ministry argued that it has taken major strides forward by requiring every licensed contractor to “take out an insurance policy for every project they undertake”.
“The license holder must ensure that any work is covered by a valid insurance policy that makes good for any loss or damage that any person may incur as a result of any act or omission on the part of the licensed contractor or workers who work under his direction during the performance of the works, as well as for damages in the workplace, including damage to the person that any employee may suffer,” reads regulation 5(3) of Legal Notice 166.
The MDA has been advocating for stronger policies than LN 166 for a number of years, but expressed disappointment that contractors would not be obliged to purchase insurance policies to cover third parties’ property and potential damages – or to cover the contractor’s employees.
The MDA advised that this should be checked both at the point of issuing and renewing licenses.
The failure to ensure that this would be the case, from the MDA’s perspective, has “rendered the new Legal Notice weak and ineffective,” – meaning that it, “will not achieve its desired results.”
The Public Works Ministry countered that “the obligation of an insurance policy for every project that a contractor undertakes means that a contractor is obliged to ensure that the project he is carrying out has an insurance policy until the works in that project are completed”.
“This is an important change that is being introduced through this Legal Notice and that will place an obligation on whoever obtains a contractor’s license when carrying out this work.”
LN 166 has come after a national uproar rooted in the tragic death of Jean Paul Sofia on a Kordin construction site – which many have pointed to as evidence of just how dangerously unregulated Malta’s construction industry is.
The likely effectiveness of LN 166 is already being disputed by the MDA.
Many, especially those less familiar with these regulations, might be wondering how it was possible that prior to this notice, licensed contractors in Malta did not have to take out an insurance policy for their construction projects.
“We need a legal framework that will ensure that only qualified and competent contractors are licensed to operate in Malta. Anything less will put the safety of the public and the contractor’s employees at risk,” concluded the MDA.
Are you surprised that Maltese contractors did not need to get insurance for their projects?
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