Protecting project cargo, heavy equipment, and contractor performance
Construction
International construction projects concentrate risk: heavy equipment shipped across oceans, milestone payments released against uncertain progress, and multi-party contracts where one default cascades through the whole program. We protect owners, contractors, and equipment buyers with insurance, escrow, and verification structured around project milestones.
Industry overview
Construction and infrastructure projects move billions in materials, plant, and equipment across borders, then assemble them under fixed-price contracts with liquidated-damages exposure. The risk stack is deep: marine transit loss, erection and testing failure, contractor default, and payment disputes over milestone completion.
Our construction practice places construction-all-risk and marine cargo programs, structures milestone escrow that releases contractor payments against independently verified progress, and verifies equipment suppliers before mobilization deposits are paid.
Common business risks
Project delay and liquidated damages
Late equipment arrival or contractor default triggers LD clauses that erode or eliminate project margin.
Heavy equipment damage in transit
Cranes, turbines, and excavators suffer handling and sea damage that delays commissioning by months.
Milestone payment disputes
Owners and contractors disagree on completion percentage, freezing cash flow mid-project.
Contractor and subcontractor default
A key subcontractor's insolvency can halt works and leave the owner paying twice to finish.
Erection and testing failure
Equipment damaged during installation or failing performance tests creates multi-party liability.
Recommended insurance services
Coverage structures aligned to the physical and credit risks of this sector.
Construction Insurance
Construction-all-risk cover for works, materials, and third-party liability through defects liability period.
Marine Cargo Insurance
Project cargo cover for heavy equipment and materials from factory to site, including heavy-lift operations.
Machinery Insurance
Plant and equipment breakdown cover during erection, testing, and operation.
Escrow solutions
Payment protection that releases funds only against verified performance.
Verification services
Evidence-based checks on counterparties, facilities, and goods before you commit.
Compliance support
- Contractor licensing and registration validation
- Performance and advance-payment bond structuring advisory
- Local labor and safety regulation compliance review
- Import duty and temporary-import permit documentation
Trade risk management
- Project delay and liquidated-damages exposure mapping
- Contractor and subcontractor default risk screening
- Heavy-lift and marine-transit risk quantification
- Multi-party contract risk review
Why it matters
Contractor payments aligned to verified progress
Project works insured from mobilization to handover
Equipment deposits protected until commissioning
Verified contractor and supplier capacity before award
Reduced dispute frequency through independent verification
Case study
Energy infrastructure — turbine procurement, Thailand
Power-plant equipment escrow averts supplier default loss
Challenge
An EPC contractor paid a 40% mobilization deposit to an overseas turbine supplier that subsequently failed to ship, leaving the deposit unrecoverable under a standard contract.
Solution
For the replacement procurement, equipment-purchase escrow held the deposit against verified factory acceptance and shipping documents, with factory verification before release.
Result
Turbine delivered and commissioned on schedule; deposit fully protected; project avoided a 9-month delay.
Frequently asked questions
Physical loss or damage to the works, materials, and equipment during construction, plus third-party liability — typically through the defects liability period. It is the backbone policy for any international project.
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Protect your construction trade
Talk to a sector specialist about insurance, escrow, and verification for your specific transactions and corridors.