BuildLaw Issue 26 December 2016 | Page 23

● the insurer pre-selecting a panel of solicitors that can be engaged in the event of an adjudication, on the understanding that the consultant will pay the legal fees and defence costs if the claim is not covered by the policy
● the insurer pre-selecting a range of experts that can be called upon to prepare evidence
● an agreed process around settlement discussions. Usually consultants are unable to independently settle a claim as this can be prejudicial to the insurer’s interests. Consultants will bear the risk of additional cost if the insurer declines the claim after they:
• settle the claim at a point contrary to the policy or insurer’s interests, or
• lose an opportunity to settle the claim.
Insuring your insurance
The CCA gives clients and consultants access to the payment and adjudication regime.
Consultants should consider implementing their own insurance by ensuring their records and information storage is meticulous to help meet the deadlines under the adjudication regime. They should also start a conversation with their insurers now about how their professional indemnity insurance will work going forward.


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Note: This article is not intended as legal advice. For further information, contact your legal advisor.

Janine Stewart

Janine is an experienced construction and property lawyer having advised on numerous complex construction projects and disputes in New Zealand. She has appeared in arbitration, the High Court and the Court of Appeal. Janine provides expert legal advice and dispute resolution services in all aspects of construction and commercial property disputes. Plus she advises clients on various general commercial issues.