Public liability covers OTHER people's stuff. Contract works covers YOUR project — the timber, the framing, the half-built walls, the materials on site. If a storm hits at week 4 of a 16-week build, public liability won't pay a cent. Contract works pays for the rebuild so your job stays on track.
What Is Contract Works Insurance?
Contract works insurance (also called construction insurance) protects your build against loss or damage during construction. It covers the actual works in progress, materials on site, materials in transit and temporary works like scaffolding and site sheds. Whether you're building a $300K extension or a $5M commercial fit-out, contract works insurance keeps your project on the budget you quoted.
Most builders carry contract works AND public liability together. Public liability covers third-party injuries and damage. Contract works covers your project itself. Two different risks, two different policies — both essential for any builder, civil contractor or trade business running larger jobs.
Who Needs Contract Works Cover?
If you're delivering part or all of a building project, contract works insurance protects you. Your contract probably already requires it — check the fine print.
What's Covered — And What's Not
What Costs Builders Money On Site
These claim scenarios aren't hypothetical — they're the types we see on contract works policies every year. Dollar figures are indicative ranges based on industry data.
Storm Mid-Build
Severe storm hits at week 4 of a 16-week build. Framing damaged, plasterboard ruined, materials soaked. Demolition + rebuild costs $45K — covered.
Site Break-In
Weekend break-in. Stolen: copper pipework already plumbed in, kitchen cabinetry stored on site, $8K in fittings. Plus damage from forced entry.
Fire During Hot Work
Welding spark catches insulation in commercial fit-out. Fire spreads, damages two thirds of the work-in-progress. Demolition, removal of debris, full rebuild.
Materials In Transit
Truck delivering imported tiles or stone to site has accident en route. Materials destroyed. Replacement plus 6-week shipping delay covered.
Vandalism Spree
Site vandalised overnight — graffiti on internal walls, smashed windows, damaged scaffolding. Cleanup, replacement and rectification costs covered.
Flood Damage
Heavy rain floods site, half-built slab compromised. Subfloor needs replacing, plus damaged framing and trapped materials. Major rebuild required.
Get An Instant Estimate
Punch in your project details for a ballpark premium. This is a general guide only, not a quote or financial advice. For a real quote tailored to your specific build, ring us or get an online quote.
Contract Works vs Public Liability
Most builders need both — they cover completely different risks. Here's the difference at a glance.
Contract Works Done Properly
We're Authorised Representatives of SMS Insurance Pty Ltd T/as repX (AFSL 425573) — real brokers backed by leading Aussie insurers. Same-day certificates, project-specific cover, claims support that actually shows up.
Pair With These Covers
Most builders need contract works PLUS public liability and tools cover. Bundle them and save on premiums.
Contract Works Insurance FAQs
Q.What is contract works insurance? +
Also called construction insurance, it protects construction projects against loss or damage during the build. Covers theft, fire, storm, vandalism and accidental damage to work-in-progress, materials and temporary works.
Q.Is contract works insurance mandatory? +
Not always legally mandatory, but commonly required by head contractors, councils, principals and developers before work begins. Most building contracts specify minimum cover requirements — check your contract before quoting.
Q.How much does contract works insurance cost? +
Typically 0.2% to 0.5% of project value as an annual rate, prorated for project duration. A $250,000 residential build for 6 months might cost $300–$700. Commercial and civil projects pay slightly more due to higher risk profiles. Use the estimator above for a ballpark.
Q.Does it cover existing structures? +
Standard contract works covers new works only. Existing structures (the original house in a renovation, for example) are typically excluded unless specifically endorsed. Tell us if you're doing a reno or extension and we'll arrange the right cover.
Q.Contract works vs public liability — what's the difference? +
Contract works covers your project itself — materials, work-in-progress. Public liability covers third-party injuries and damage caused by your work. Two completely different risks. Most builders need both.
Q.Who pays — builder or owner? +
Depends on the contract. Standard form building contracts often require the builder to arrange contract works with both parties named as insured. Some contracts allocate cover to the owner or principal. Always check the contract before binding cover.
Q.Does it cover theft of materials? +
Yes. Covers theft of materials from site including timber, fittings, fixtures and unfixed materials. Theft from secured storage is usually covered. Some policies require evidence of forced entry for theft claims — check your policy wording.
Q.How quickly can I get cover? +
Same-day in most cases for residential builds. Certificate of Currency issued within hours. Larger commercial or civil projects may need additional underwriting time — get in touch early if you've got a deadline.
Get Contract Works Sorted Today.
Builder, subbie, owner-builder or developer — we'll sort the right contract works cover for your project. Same-day certificates. Real Aussie brokers.
ProTrades Insurance | ABN 84 475 254 500 | Authorised Representative No: 1292732 of SMS Insurance Pty Ltd T/as repX | AFS Licence No: 425573.