Airport operator BAA has revealed plans to use project-based insurance for its Heathrow Terminal 5 project.

Zurich has seconded two engineers to BAA's project team to advise on risk. BAA said the move would mean that, rather than contractors obtaining their own insurance, BAA would draw the insurance together.

BAA said: "It's consistent with our partnering approach, and it's cost-effective."

Sir John Egan, former chairman of the strategic forum and chief executive of BAA said: "I'm hoping that fully integrated team planning will encourage the insurance industry to insure the product."

Zara Lamont, chief executive of the Confederation of Construction Clients, backed the decision. She said: "The key will be to demonstrate to insurers that an integrated team works."