The Answer in 60 Seconds

Your SME contractor is bidding a Building and Construction Authority (BCA) or other public sector tender governed by PSSCOC for Construction Works 8th Edition (July 2020), which has been amended periodically (most recently on 21 June 2024). The insurance provisions — Clauses 27 and 28 — were not altered by that amendment. The PSSCOC Lite form was adopted from 1 May 2025 for public-sector construction works estimated above SGD 90,000 but not exceeding SGD 1 million, with a simplified set of conditions. Critical insurance placements: (1) Clause 28 — Contractors All Risks (CAR) and Erection All Risks (EAR) covering Works, with Employer + Contractor + sub-contractors of all tiers as joint insured (joint name policy); (2) Clause 27 — Public Liability with Employer named as Principal, plus WICA per Work Injury Compensation Act 2019 with Common Law extension; (3) Existing-property cover SGD 1m on first-loss basis under Clause 28; (4) Professional fees 10% of contract sum and debris removal 5% — both standard PSSCOC sub-limits. The actual limits are not fixed by the standard form — they are set tender-by-tender in the Particular Conditions of Contract (PCC), so the PCC of each tender must be read for the exact public-liability limit, WICA Common Law limit, sub-limits and excesses. The premium is quoted against the specific project, not derived from a fixed percentage.

The Sourced Detail

PSSCOC compliance is a structured insurance placement exercise — each clause maps to a specific insurance product, each Particular Conditions of Contract (PCC) entry sets specific limits, and each policy must be evidenced via Certificate of Insurance to the Employer before commencement. Compliance failures result in default under Clause 27.3 (allowing Employer to deduct premium from monies due to Contractor and pay it to insurer directly).

Statutory and contractual framework

Primary contract.

  • PSSCOC for Construction Works 8th Edition (July 2020) — applicable to public sector construction contracts
  • The form has been amended periodically; the most recent amendment, on 21 June 2024, amended Clause 4.5(2) (Security Deposit) and added Clause 4.8 (Geotechnical Information) — the insurance Clauses 27 and 28 were not changed
  • PSSCOC Lite, adopted from 1 May 2025, applies to public-sector construction works estimated above SGD 90,000 but not exceeding SGD 1 million

Specific insurance clauses.

  • Clause 26 — Indemnity (general indemnity by Contractor)
  • Clause 27 — Insurance for Personal Injury, Work Injury Compensation and Property Damage
    • Clause 27.1 The Policies (PL, WICA, motor)
    • Clause 27.2 Damage to Property when Contractor Not Negligent
    • Clause 27.3 Default in Insuring (remedy where Contractor fails to insure)
  • Clause 28 — Insurance of the Works
    • Clause 28.1 Risks to be Insured (CAR/EAR scope)
    • Clause 28.2 Application of Insurance Moneys

Statutory underpinnings.

Industry resources.

Step-by-step compliance procedure

Step 1 — Tender review and PCC extraction (Day -14 to Day -7).

Read tender Particular Conditions of Contract (PCC) and extract:

  • Contract sum
  • Contract period
  • Defects liability period (typically 12 months)
  • Specific PL limit (varies by tender; common SGD 5m or SGD 10m)
  • Specific WICA Common Law limit (typically SGD 10m)
  • Specific existing-property limit (typically SGD 1m)
  • Specific professional fees percentage (typically 10%)
  • Specific debris removal percentage (typically 5%)
  • Specific principal name and address
  • Specific sub-contractor list (where known)

Step 2 — Broker briefing and quote (Day -10 to Day -3).

Brief broker comprehensively:

  • All PCC requirements
  • Existing CAR / WICA / PL placements (where any)
  • Specific co-insured list
  • Specific contract scope (hot works, lifting, demolition, hacking)
  • Specific WSH risk profile
  • Specific BCA workhead grade

Receive quote covering:

  • CAR / EAR Section 1 (Material Damage)
  • CAR / EAR Section 2 (Third-Party Liability — typically PL combined within CAR)
  • Standalone PL where required
  • WICA designated insurer
  • Specific endorsements (joint name, cross-liability, waiver of subrogation, primary and non-contributory, severability of interests)

Step 3 — Policy placement and binding (Day -7 to Day -1).

Specific timeline considerations:

  • CAR typically placed within 24-48 hours of binding
  • WICA via designated insurer per MOM list
  • Specific PL per insurer requirements
  • Specific schedule of insureds finalised

Step 4 — COI issuance and submission (Day -1 to Day 0).

For each policy:

  • Specific named insured (Contractor as named insured)
  • Specific additional insureds (Employer as joint insured / additional insured)
  • Specific sub-contractors of all tiers (joint insured)
  • Specific endorsements present
  • Specific policy schedule attached

Submit to Employer per tender requirements.

Step 5 — Maintenance through contract period.

  • Specific renewal coordination
  • Specific endorsement updates (new sub-contractors, scope variations)
  • Specific claim notification protocols
  • Specific defects liability period extension

Specific insurance requirements per clause

Clause 27 — Insurance for Personal Injury, Work Injury Compensation and Property Damage

Public Liability cover.

  • Named insured: Contractor
  • Additional insured / Principal: Employer
  • Specific sub-contractors of all tiers as additional insureds
  • Cross-liability clause
  • Waiver of subrogation against Employer
  • Limit: per PCC — the figure and the "any one occurrence" / "any one period" basis are stated in the Particular Conditions
  • Specific cover scope: bodily injury, property damage, defence costs

WICA cover.

  • Named insured: Contractor (and sub-contractors)
  • WICA designated insurer per MOM list
  • Specific limits per WICA 2019 (medical, PI, death — see Article 271 framework)
  • Common Law extension typically SGD 10m for public sector tenders
  • Specific overseas exposure consideration

Motor cover.

  • Specific cover for vehicles entering site
  • Specific liability extension for site driving
Clause 28 — Insurance of the Works

Contractors All Risks (CAR) Section 1 — Material Damage.

  • Sum insured: contract sum + 10% (professional fees) + 5% (debris removal) + existing property cover
  • Joint name policy: Employer + Contractor + sub-contractors of all tiers
  • Cross-liability clause
  • Waiver of subrogation (per insurance market practice)
  • Cover period: contract commencement through defects liability period
  • Specific perils: fire, flood, storm, earthquake, theft, malicious damage, accidental damage
  • Specific exclusions: design defects (typically excluded; PI cover separate)

CAR Section 2 — Third Party Liability.

  • Cover for third-party bodily injury and property damage arising from Works
  • Limit: set per PCC
  • Specific cover scope: liability arising during contract period
  • Specific endorsements: cross-liability, waiver of subrogation

Existing Property Cover.

  • Commonly written on a first-loss basis; the limit is set in the PCC
  • Specific extension to CAR
  • Specific application to Employer's existing structures

Professional Fees (10%).

  • Specific extension to CAR for additional professional costs in event of loss
  • Specific architect / engineer / quantity surveyor fees

Debris Removal (5%).

  • Specific extension for cost of debris clearance
  • Specific waste disposal compliance

Insurance limits are set per tender, not by the standard form

PSSCOC sets the insurance structure — Clauses 27 and 28 — but the limits, sub-limits and excesses are specified tender-by-tender in the Particular Conditions of Contract (PCC). There is no single fixed schedule; the PCC of the specific tender is the controlling document and must be read for the exact figures.

The figures commonly seen on public-sector construction tenders fall into recognisable shapes:

  • Public Liability: a substantial limit per occurrence, with the "any one period" basis specified in the PCC
  • WICA Common Law extension: a Common Law limit per occurrence, set in the PCC
  • CAR Section 1 (Material Damage): the contract sum, plus the professional-fees and debris-removal extensions
  • CAR Section 2 (Third Party Liability): a per-occurrence limit set in the PCC
  • Existing property: commonly covered on a first-loss basis
  • Excesses: a higher excess for major perils, a lower one for other perils

Always take the actual figures from the PCC of the tender being bid — they vary by procurer and by project, and lower-value tenders carry correspondingly lower limits.

Joint name and co-insured implications

A joint-names CAR policy carries a well-established consequence: an insurer generally cannot exercise subrogation rights against a party that is itself a co-insured under the policy. So the Employer cannot recover from the Contractor (and vice versa) for a loss covered under the joint policy — which removes cross-claim exposure between co-insureds.

This is a substantial benefit for an SME contractor: a fire on site that destroys completed works does not generate a civil action between Contractor and Employer; the CAR insurer indemnifies the insured parties under the policy, rather than the parties litigating against each other.

How the cover is priced

Premiums for a PSSCOC insurance pack are quoted, not fixed, and depend on the project. The main drivers are:

  • CAR / EAR — rated chiefly on the contract value, adjusted for the nature of the works (building works, civil engineering, and higher-risk activities such as deep excavation, hot works or marine works each carry a different rating), the project duration, and the excess structure
  • Public Liability — rated on the limit required and the risk profile of the works; often quoted as part of, or alongside, the CAR placement
  • WICA — rated principally on wages and worker classification, with the Common Law extension adding to the premium

An SME should obtain a quote against the specific tender's PCC rather than budget from a rule of thumb.

Default in insuring — Clause 27.3 mechanism

If Contractor fails to take out specific insurance per Clause 27:

  • Employer may take out and maintain such insurance directly
  • Employer may pay premium and deduct from monies due to Contractor
  • Specific potential consequences for breach
  • Specific tender suspension or termination exposure

This is a substantial commercial risk: Employer has direct remedy without litigation.

PSSCOC Lite (1 May 2025)

For public sector contracts SGD 90,000-1,000,000:

  • Simplified insurance schedule
  • Reduced sum insured options
  • Specific application to lower-value works (e.g., minor renovations, small infrastructure)
  • Specific compliance still required

Common Mistakes / What Goes Wrong

  1. PCC review delayed. Specific insurance requirements identified close to bid deadline.

  2. Joint name structure incomplete. Specific sub-contractor tiers not included.

  3. Cross-liability clause missing. Specific co-insured cross-claim exposure.

  4. Existing property cover absent. Specific Employer's structure damage not insured.

  5. Professional fees / debris removal sub-limits absent. Specific CAR extensions not included.

  6. WICA Common Law limit insufficient. Specific public sector minimum not met.

  7. PL limit insufficient. Specific tender minimum not matched.

  8. CAR cover period gap. Specific defects liability period not covered.

  9. Specific BCA Builder Licensing requirement. Specific licensing and grade requirements not addressed.

  10. Default under Clause 27.3. Specific Employer recovery from monies due.

What This Means for Your Business

For Singapore SMEs bidding public sector construction tenders:

  1. Standard PSSCOC compliance pack — pre-prepared cover summary for typical tender requirements.

  2. Joint name policy template — pre-discussed with broker and underwriter.

  3. Specific BCA workhead grade alignment — current grading, financial requirements, technical capacity.

  4. Specific sub-contractor management — known sub-contractors as joint insureds, COI evidence.

  5. Specific endorsement library — cross-liability, waiver of subrogation, primary and non-contributory pre-templated.

  6. Specific Employer relationship — typical principals' standard wording on file.

  7. Specific WICA designated insurer — MOM-listed insurer relationship.

  8. Specific monitoring — renewal coordination, scope variation tracking, defects liability extension.

  9. Specific claims protocols — joint insured claims framework.

  10. Specific PSSCOC training — internal commercial team competence on Clauses 27-28.

The cost of PSSCOC compliance failure is acute — a single non-compliant bid can be disqualified, and a default under Clause 27.3 can impair the commercial relationship with a public-sector procurer for years. The cost of pre-incident discipline is bounded — a quotable insurance pack, sized to the contract and obtained against the tender's PCC.

Questions to Ask Your Adviser

  1. For our typical PSSCOC tender bids, are joint name CAR / EAR / PL / WICA framework operationally established?
  2. For our common public sector procurers, are specific PCC requirements pre-mapped to insurance pack?
  3. For our sub-contractor relationships, is joint insured framework operational with COI evidence flow?
  4. For our endorsement library, are cross-liability, waiver of subrogation, primary and non-contributory pre-templated?
  5. For our WICA designated insurer, is current relationship adequate for typical public sector Common Law limits?

Related Information

Published 7 May 2026. Source verified 7 May 2026. COVA is an introducer under MAS Notice FAA-N02. We do not recommend insurance products. We provide factual information sourced from primary regulators and route you to a licensed IFA who can match a policy to your specific situation.