Developers will have to take out insurance to cover any damage they may cause to neighbouring property during construction works, according to a draft law published yesterday.

They will also be legally obliged to submit an easily accessible method statement, stating how they plan to proceed with works, three weeks before construction starts.

The law - Regulations on the Avoidance of Damage to Third Party Property - was launched yesterday for consultation.

"We no longer live in a time when construction goes on in a remote field... Over 60 per cent of permits issued by the Planning Authority are for re-development and the impact of construction on neighbours has increased over the years," Resources and Rural Affairs Minister George Pullicino said during the launch of the draft regulations.

"Through these regulations we are trying to minimise the inconvenience caused to third parties although, in reality, they can never be completely wiped out."

Under the new regulations, contractors will be listed into various categories that include general building and civil engineering, building only, engineering only, excavation, scaffolding, installations and building completion.

This, the minister said, would ensure that contracts are awarded to people with experience in a specific field.

Architect Carm Mifsud Borg, who directs the General Services Division within the ministry, said: "A more level playing field among building contractors will be created. Currently, below-standard contractors can offer lower prices because they are more willing to take risks in their work practices."

Mr Borg added that the requirement to take third party insurance will force below-standard contractors to improve work practices.

The two documents can be viewed on www.mrra.gov.mt and any queries or feedback can be sent to buildingregulations@mrra.gov.mt. The consultation period is four weeks.