Concrete suppliers face a unique and costly risk if a batch fails after curing when the financial consequences can be devastating. Whether due to
Concrete suppliers face a unique and costly risk if a batch fails after curing when the financial consequences can be devastating.
Whether due to incorrect mix specifications, environmental factors or unforeseen site conditions the cost of removing and replacing faulty concrete can run into millions of Rands and potentially threaten the survival of a business. This is in part due to the severity of concrete failure which can result in structural damage and project delays as well as other legal claims.
Suppliers may be held liable for damages even when failures stem from factors beyond their control. In these instances repair costs may include demolition, disposal, re-pouring and potential legal fees.
Better to insure
Specialist indemnity insurance tailored for readymix concrete suppliers is available in South Africa through several construction-focused insurers. These policies typically cover:
• Claims for defective concrete resulting in structural failure.
• Third-party liability for injury or property damage.
• Equipment breakdowns and fleet insurance for delivery vehicles.
• Consequential loss and legal defence costs.
The Internet shows that providers such as GRIB and others in the construction insurance space offer customisable packages including Contractors All Risk (CAR), Professional Indemnity, and Product Liability insurance. These are designed to protect suppliers from the financial fallout of concrete-related failures.
Even with insurance in place claims are subject to the law and key legal instruments in South Africa that support the need for such insurance. These include among others:
SANS 2001-CC1:2007 – Concrete Works (Structural) This national standard outlines the technical requirements for structural concrete. Non-compliance can lead to liability for defects.
Housing Consumers Protection Measures Act (Act 95 of 1998) This act mandates warranty protection for homeowners against structural defects and places obligations on builders to rectify issues. Suppliers may be indirectly affected if their product contributes to such defects.
In order to mitigate risk and protect their businesses, readymix suppliers should always adopt strict quality control protocols and document compliance with all relevant requirements and standards. It is also wise to secure comprehensive insurance that includes indemnity for product failure and liability and to educate those receiving the concrete on proper usage and curing practices to reduce misuse-related failures. Suppliers should also collaborate with legal advisors to ensure contracts include clear indemnity clauses.
As a readymix supplier it is increasingly important to conduct regular risk assessments to avoid problems further down the line. It is also wise to know that indemnity insurance is no longer a luxury it’s a strategic safeguard. Suppliers who proactively manage their exposure through insurance and compliance will not only protect their bottom line but also build trust with clients and contractors.
