Amendments to current legislation to strengthen the liability and insurance obligation in construction sites in the interest of third parties and employees

The Minister for Justice and Reform in the Construction Sector Jonathan Attard, together with the Building and Construction Authority CEO, Jesmond Muscat, presented a number of legislative amendments that deal with various Legal Notices related to the Building and Construction Authority (BCA) Act. These amendments will continue to raise standards and establish clear responsibility in the interest of third parties and the employees who are working on-site.

 “These legislative interventions follow several other interventions that have been made in recent years and precede others that will be implemented in the near future so that as a government we continue to raise standards in the construction sector, clarify more the responsibility, and provide peace of mind to anyone who may be affected”, said Minister Attard.

These amendments will now require standalone sites, which don’t encroach on third-party properties, to meet specific legal conditions regarding timing, hoarding, dust, noise, cleanliness of the surroundings, pavements, roads, site notices, and also necessitate insurance coverage. Up till today, stand-alone sites, aren’t required to meet these standards.

This will mean that a Clearance/Acceptance Notice will not be issued by the Building and Construction Authority if there is no insurance in force and its documentation submitted to the authority. In the case of breaching any conditions provided in the law, the same authority will be able to intervene by stopping the work and imposing a sanction.

 With the gradual amendments being implemented in the regulations, the Authority continues to assume a greater role, including when it comes to the development of stand-alone sites.

 “With this change in the law, we have extended the insurance obligation even on sites known as stand-alone, to provide peace of mind to any third party who may suffer damages. At the same time, we strengthened the obligation to have Employers Liability Insurance, in such a way that those employers who complained that they cannot find an insurance service, assume a clear responsibility in the law, including when they operate with a company”, he said Minister Attard.

Another amendment is that in cases where the licensee and employer will not have an insurance policy that covers the employee, the person, or the company together with the directors and those people who run the same company will be held civilly liable for any damages or damage suffered by a third person or an employee working with the same person or company. This will lead to more standards in the sector and above all to a more effective and efficient remedy for employees and their relatives in case of injury or death. Minister Attard concluded that ensuring the well-being and safety of workers is paramount. Therefore, there was a necessity for laws to guarantee that if a worker is injured or loses their life, and after legal proceedings confirm their entitlement to damages, they will have a better chance of receiving compensation. This measure aims to prevent workers and their families from being left without remedy due to a company’s lack of assets to cover damages.