A construction company, as the name suggests, is contracted to construct a building on a plot of land. The developer, on the other hand, is the one who finds the land on which to build. His main task is to find the land and then commission the construction company to carry out the project.
It is very common for the promoter (developer) and the construction company to merge into one company in order to work faster and more efficiently.
Developers are the owners of the land on which a project is to be carried out.
In order to carry out the project, they usually hire the help or services of a construction company that has the capacity, human and technical resources and know-how to carry out the project properly.
Thus, when a developer wants to build something on a plot of land he owns, he first hires an architect to design the project (with the characteristics he considers appropriate). The latter executes it and edits and corrects the project as many times as necessary until it is approved by the developer’s management.
Once the project is established, it has to be submitted to the competent authorities, who examine it carefully to ensure that it complies with the regulations and development plans that apply to the area in which it is to be built.
This means, for example, that housing is not allowed to be built on land in tertiary use (service sector) or commercial areas.
Once permission has been granted, a surveyor must also check that the builder is carrying out the work correctly.
Everything you need to know about builder’s risk insurance
This insurance is for the developer or client of the construction project and covers damage that may be caused to a third party during the construction work.
As the owner of the project and the person primarily responsible for the construction work, you should be well covered against all claims and damages that may occur.
Get to know all the coverage of the builder’s liability insurance and ask for more information without obligation. Bohemia Mallorca can provide you with competent advice.
The developer is defined as “any natural or legal person, public or private, who, individually or jointly, with his own or other people’s means, decides, promotes, programmes and finances the construction work for himself or for its subsequent sale, supply or transfer to third parties by any title”.
Everything you need to know about contractors’ liability insurance
Contractors’ liability insurance is compulsory by law. It is defined in article 9 of Law 38/1999, of 5 November, on Building Regulations (BOE).
In general, contractor’s liability insurance covers damage caused by collapsing buildings, falling objects, fires and explosions, power lines and the loading and unloading of heavy or hazardous materials.
It also supports workers in the event of accidents of any kind, paying compensation for bodily injury and damage to third party property, thus reducing the company’s financial costs and expenses.
It is aimed at employers and employers operating in their own sector to provide the necessary protection if their workers are physically injured or killed in any type of accident and their dependants wish to make a claim.
Is construction liability insurance compulsory?
The law stipulates that all companies, whether public or private, must take out compulsory construction insurance to also ensure the protection of workers, goods and materials and the environment.
