(1) Except as otherwise provided in the procurement contract, a construction entrepreneur executing a construction work the price of which exceeds one million rupees shall insure the following matters:
(a) Full replacement costs of the construction work including construction materials, machine, equipment or plant to be used,
Explanation: For the purpose of this clause,
"costs" includes the profit as well.
(b) Fifteen percent amount of the replacement costs referred to in clause (a) or additional amount as set out in the procurement contract, in order to cover professional charges, expenses to be incurred in the demolition, removal of any portion of the construction work, in the removal of debris or wasted materials, expenses for loss or damage occurred or incidental cost relating thereto,
(c) Adequate amount required for the replacement in the construction site of the equipment and other things brought onto the construction site by a construction entrepreneur,
(d) Every loss and damage caused to any part or portion of the construction work by whatsoever reason other than that referred to in sub-rule (2), arising from the date of the handing over of the construction site till the date of issuance of the taking over certificate to the construction entrepreneur,
(e) The following liabilities of the construction entrepreneur:
(1) Loss and damage caused in the course of discharging construction entrepreneur's obligation during the defects liability period, and
(2) Loss and damage caused during the defects liability period by any reason arisen prior to the commencement of the defects liability period.
(2) Notwithstanding anything contained elsewhere in this Regulation, the construction entrepreneur shall not bear the obligation for the loss and damage from the insurance referred to in clause (d) of sub-rule
(1) caused from the following reasons:
(a) War, enmity or invasion,
(b) Rebellion, revolution, insurrection or military rule or civil war,
(c) Ionizing radiation, radiation of nuclear fuel or nuclear waste originated from the combustion of nuclear fuel or explosion of radioactive toxic or explosion of other
hazardous elements or nuclear assembly or pollution of nuclear portion thereof, and
(d) Pressure wave caused by an aircraft or aerial device that flies at a sonic or supersonic speed.
(3) Except as otherwise provided for in the procurement contract, the construction entrepreneur shall bear the claims for compensation for the following loss and damage caused from the execution of construction work or correction of any defect underlying therein or resulted from such work and the costs and charges incurred in the institution of action relating to such claims:
(a) If any person suffers injury or dies or,
(b) Loss and damage caused to any property except the construction work in the course of work operation and completion.
(4) In procuring goods, insurance shall be so made from warehouse to warehouse as to cover all risks including war, strike and fire of an amount equal to at least 110 percent of the CIP (Carriages and Insurance Paid to) price.
(4a) In the case of procurement of a consultancy service, professional liability insurance of the total contract price covering all kinds of risks and payable unconditionally to the public entity shall be made by the consultant not later than thirty days of the conclusion of the contract.
(5) The conditions of insurance cannot be changed without written approval of the chief of the concerned public entity.
(6) If approval given to modify the conditions of insurance contrary to the provisions set forth in this Rule and it results in any loss and damage, the employee involved in the giving of such approval and the chief of the public entity shall be responsible therefor.