• New law revises construction code and tightens insurance obligations
• All builders must obtain all-risk site coverage and 10-year liability insurance
• Reform aims to clarify responsibilities and improve public safety

In Côte d’Ivoire, the Council of Ministers adopted on December 3 a draft law amending the 2019 construction and housing code. The reform aims to strengthen insurance requirements in the construction sector and clarify the responsibilities of builders, project owners, developers, and property owners.

Government spokesperson Amadou Coulibaly said the text introduces two mandatory insurance policies for any company working on a construction site. These obligations apply to all construction projects, regardless of size or type. They include all-risk construction insurance and 10-year civil liability insurance.

All-risk construction insurance must be taken out before work begins. It covers risks that may occur during the execution of the works: technical incidents, material damage, execution errors, and accidents that may arise on site. This insurance protects both the construction company and the project owner by ensuring the continuity of the project in case of issues.

The 10-year civil liability insurance covers material damage that may appear within ten years after a building is delivered. It applies when construction defects cause problems once the work is completed. This guarantee protects the building owner from the high repair costs that may arise after delivery.

The law also provides for additional civil liability insurance. It is mandatory and covers damage caused to people or property if a building collapses or creates an accident due to a construction defect or lack of maintenance. This insurance protects third parties—neighbors, passersby, or users—beyond the owner and the builder.

Issues and challenges for the construction sector

The introduction of these mandatory insurance policies serves a dual purpose: clarifying responsibilities among stakeholders and strengthening penalties for unauthorized or non-compliant construction. However, their implementation raises several challenges, including insurance costs. Construction companies, especially small and medium-sized firms, will face additional expenses. Their margins may already be narrow, which could slow compliance or incentivize circumvention. Moreover, not all insurance companies offer products suited to construction-related risks, forcing some firms to seek costlier or harder-to-access options.

According to the government, these obligations are meant to create a more structured construction environment and offer better protection for users, property owners, and third parties. They are also intended to reduce risks associated with undeclared or non-compliant works.

Chamberline Moko