04 February 2025
Contractor Failure: Key steps where your project construction site is in temporary shutdown and/or mothballed
Mothballing a site is essentially about securing the project in a way that minimises risks and damage during the period of inactivity. Each step ensures that when the project picks up again, the transition is smooth, and the site remains safe and ready to continue work.
Here are the key steps to consider when mothballing a building site:
1. Notify your insurer
Notify your insurer that the site is being mothballed, make sure that any necessary insurance coverage is up to date and should cover risks such as vandalism, theft, and weather-related damage.
2. Risk assess the site
- Take detailed photographs and notes on the current condition of the site. This documentation can be useful for insurance purposes or to evaluate the condition of the site when work resumes.
- Document the current stage of the project.
- Have an emergency response plan in place (including emergency contacts). This plan should detail the location of water shut and power shut off points.
- Take into consideration what the weather conditions are likely to be for the duration of the shut-down.
3. Secure the site
- Fencing and Barriers: Ensure that the construction site is properly fenced or otherwise enclosed to prevent unauthorised access and that the perimeter fencing is able to withstand anticipated weather conditions.
- Signage: Post clear warning signs indicating that the site is closed and any hazards that may exist.
- Lighting: having the site well-lit is a known deterrent for theft and malicious damage so maintain or install temporary flood lighting and keep power to necessary lighting circuits on (see Point 7 below)
4. Protect materials and equipment
- Equipment: Move any construction equipment or tools to a safe, secure location on-site or off-site. Ensure they are covered or stored in a way that protects them from the elements and ideally elevate off the ground.
Lower jibs on mobile cranes and tower cranes must be left in ‘free slew’. Contact crane hirer or manufacturer for further advice.
Remove batteries from large items of plant that are to remain on site.
- Hired in plant or equipment: Contact the owner of any hired in plant or equipment, notify them of the site closure and where appropriate get hired in plant or equipment removed from site and taken off-hire.
- Building Materials: Cover any exposed materials to protect them from weather damage, high value materials should be removed from site and if any materials can be damaged by water or damp, they should be elevated off the ground. Minimise storage within buildings as much as possible in particular combustible materials.
- Waste: ensure all waste is removed from site including waste skips
- Flammable Liquids: Fuel oil and gas cylinders should be removed from site. Where this is not practical they should be stored in an appropriate and secure external area.
5. Safeguard temporary structures
If there are temporary structures such as scaffolding, shoring or propping, site storage, make sure they are stable and secured against strong winds or other potential hazards.
6. Water damage
- Water systems: Permanent and temporary water systems should be turned off and wherever possible drained down or adequately protected to prevent freezing and cracking of pipes. The location of shut off valves should be clearly marked on site plans.
- Drainage: Ensure that any site drainage systems are clear of blockages or debris to prevent flooding during heavy rain or snowmelt.
- Pumps: Inspect and maintain pumps or de-watering systems. Use remote alarms where continued operation of pumps is critical and put a process in place should pumps fail.
- Building Envelope: where the building envelope cannot be made fully watertight look at temporary protection to prevent water ingress and be aware of what materials or plant maybe stored in the building and how this could be affected.
7. Electrical systems
- Disconnect any temporary electrical systems to prevent safety hazards or damage.
- If the site has an ongoing electrical setup (for lighting, temporary fire detection or alarm systems for example), ensure that all wiring is properly insulated or secured to prevent damage.
8. Check structural integrity
- Inspect any partially constructed buildings for structural stability. Ensure that walls, columns, and beams are braced and supported as needed.
- If any defects in the structural integrity or building envelop are discovered, then it is important that you make a prompt notification to the contractors Professional Indemnity policy (either directly to the contractor’s broker/ insurer or the administrator). It is vital that this done quickly as the policy will not be renewed and will operate on a ‘claims made’ basis which means claims reported after the policy is cancelled or lapsed will not normally be accepted.
9. Earthworks and excavations
- All excavations should be clearly marked and appropriately supported. Deep excavations should be battered back to a safe angle. Large areas of open trench should be covered and protected to prevent flooding.
10. Maintain a minimal workforce
- If possible, maintain a minimal staff on-site to monitor the site’s condition, ensure that the site is secured, and any security measures are maintained and effective. A skeleton workforce might be involved in checking the security systems, maintaining fencing, or clearing debris.
- If maintaining a site presence isn’t practical then ensure the site is visited regularly, ideally daily, to monitor its condition and check if there is or has been any unauthorised access.
11. Plan for re-activation
- Set a clear plan for resuming work on the site once construction activities are set to continue including necessary inspections and checks on both the building integrity and plant and equipment. Ensure any site-specific permits that might have been affected by the delay are re-visited.
Let's talk

Arthur J. Gallagher (UK) Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 119013.