Page 255 - Urban Construction Project Management

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of insurance is usually a contract requirement, and must be confirmed prior to the start
of the construction project. If a loss were to occur prior to procuring insurance and
obtaining evidence of same, the ability to get coverage for the event may be limited. It
is important to note that an insurance certificate may not be valid if the CM/GC or sub-
contractor contract is not executed. Exhibit 10-2 is a sample certificate of insurance.

Exhibit 10-1
All subcontractors are to include in their lump sum base bid the cost for the insurance
Insurance as described below.
requirements.
The CM/GC and the owner have retained an insurance agent as their Insurance
Broker for the project. The CM/GC and/or owner will be providing an Owner or a
Contractor Controlled Insurance Program (OCIP)/(CCIP) for the project. Your firm in
order to be enrolled in the CCIP program and track the actual project site payroll.

As part of your bid, please fill out these forms and include same with your bid.

Please note that no construction work is to proceed at the site until your firm has been
enrolled in this OCIP and/or CCIP, and/or you have supplied your own corporate
insurance.

The OCIP/CCIP insurance program provides for the actual calculations by owner,
CM/GC, and insurance broker, of the insurance credit to be deducted from your base
lump sum bid. This will be based on the actual payroll and work performed. The
deduct alternate which was requested in the original bid documents will not be used
as an actual cost, but rather as a budget estimate of the projected credit.
Subcontractor to cooperate with the owner, CM/GC, and insurance agent to classify
personnel, submit certified payroll, and copies of all current insurance certificates
and policies to assist with the evaluation of the insurance credit.

Subcontractor shall provide insurance as follows in your base bid:
1) Workers’ Compensation and Employer’s Liability.
a) Statutory Workers’ Compensation (including occupational disease) in
accordance with the law and including the other states endorsement.
b) Employer’s liability insurance with a limit of at least $500,000.
2) Comprehensive General Liability (IICGLII) with a combined single limit for
bodily injury, personal injury, and property damage of at lease $4,000,000 per
occurrence and aggregate. The limit may be provided through a combination of
primary and umbrella/excess liability policies.
Coverage shall include the Broad Form Comprehensive General Liability
Endorsement (GF 04 05 of the ISO or an equivalent). Coverage shall provide
and encompass at least the following:
a) X, C, and U hazards, where applicable;
b) Independent contractors;
c) Blanket written contractual liability covering the indemnification set forth
herein below;
d) Product liability and completed operations, with the provision that coverage shall
extend for a period of at least twelve (12) months from project completion;