PART 11 - INSURANCE

Question 1

GC 11.1 INSURANCE

11.1.1

Answer 1

Without restricting the generality of GC 13.1 - INDEMNIFICATION, the contractor SHALL provide, maintain and pay for the following insurance coverages, the requirements of which are specified in CCDC 41 ‘CCDC insurance requirements’ in effect at the time of bid closing except as hereinafter provided:

1) General liability insurance in the name of the contractor and include, or in the case of a single, blanket policy, be endorsed to name, the owner and the consultant as insureds but only with respect to liability, other than legal liability arising out of their sole negligence, arising out of the operations of the contractor with regard to the work. General liability insurance SHALL be maintained from the date of commencement of the work until one year from the date of ready for takeover. Liability coverage SHALL be provided for completed operations hazards from the date of ready for takeover on an ongoing basis for a period of 6 years following ready for takeover.

2) Automobile liability insurance from the date of commencement of the work until one year after the date of ready for takeover.

3) Unmanned aerial vehicle aircraft, manned aircraft or watercraft liability insurance when owned or non-owned manned or unmanned aircraft or watercraft are used directly or indirectly in the performance of the work.

4) “Broad from” property insurance in the joint names of the contractor, the owner and the consultant. The policy SHALL include as insureds all subcontractors. The ‘broad form’ property insurance SHALL be provided from the date of commencement of the work until the earliest of:

   a) 10 calendar days after the date of ready for takeover.

   b) On the commencement of use or occupancy of any part or section of the work unless such use or occupancy is for construction purposes, habitational, office, banking, convenience store under 465 square meters in area, or parking purposes, or for the installation, testing and commissioning of equipment forming part of the work; and

   c) When left unattended for more than 30 consecutive calendar days or when construction activity has ceased for more than 30 consecutive calendar days.

5) Boiler and machinery insurance in the joint names of the contractor, the owner and the consultant. The policy SHALL include as insureds all subcontractors. The coverage SHALL be maintained continuously from commencement of use or operation of the boiler and machinery objects insured by the policy and until 10 calendar days after the date of ready for takeover.

6) The “broad form” property and boiler and machinery policies SHALL provide that, in the case of a loss or damage, payment SHALL be made to the owner and the contractor as their respective interests may appear. In the event of loss or damage.

   a) The contractor SHALL act on behalf of the owner for the purposes of adjusting the amount of such loss or damage payment with the insurers. When the extent of the loss or damage is determined, the contractor SHALL proceed to restore the work. Loss or damage SHALL not affect the rights and obligations of either party under the contract except that the contractor SHALL be entitled to such reasonable extension of contract time relative to the extent of the loss or damage as the consultant may recommend in consultation with the contractor.

   b) The contractor SHALL be entitled to receive from the owner, in addition to the amount due under the contract, the amount which the owner's interest in restoration of the work has been appraised, such amount to be paid as the restoration of the work proceeds in accordance with the progress payment provisions. In addition the contractor SHALL be entitled to receive from the payments made by the insurer the amount of the contractor's interest in the restoration of the work; and

   c) To the work arising from the work of the owner, the owner's own forces or other contractors, the owner SHALL, in accordance with the owner's obligations under the provisions relating to construction by the owner or other contractors, pay the contractor the cost of restoring the work as the restoration of the work proceeds and as in accordance with the progress payment provisions.

7) Contractors’ equipment insurance from the date of commencement of the work until one year after the date of ready for takeover.

8) Contractors’ pollution liability insurance from the date of commencement of the work until one year after the date of ready for takeover.

Question 2

GC 11.1 INSURANCE

11.1.2

Answer 2

Prior to commencement of the work and upon the placement, renewal, amendment, or extension of all or any part of the insurance, the contractor SHALL promptly provide the owner with confirmation of coverage and, if required, a certified true copy of the policies certified by authorized representative of the insurer together with copies of any amending endorsements applicable to the work.

Question 3

GC 11.1 INSURANCE

11.1.3

Answer 3

The parties SHALL pay their share of deductible amounts in direct proportion to their responsibility in regards to any loss for which the above policies are required to pay, except where such amounts may be excluded by the terms of the contract.

Question 4

GC 11.1 INSURANCE

11.1.4

Answer 4

If the contractor fails to provide or maintain insurance as required by the contract documents, then the owner SHALL have the right to provide and maintain such insurance and give evidence to the contractor and the consultant. The contractor SHALL pay the cost thereof to the owner on demand or the owner may deduct the cost from the amount which is due or may become due to the contractor.

Question 5

GC 11.1 INSURANCE

11.1.5

Answer 5

All required insurance policies SHALL be with insurers licensed to underwrite insurance in the jurisdiction of the place of the work.

Question 6

GC 11.1 INSURANCE

11.1.6

Answer 6

If a revised version of CCDC 41 is published, which specifies reduced insurance requirements, the parties SHALL address such reduction, prior to the contractor’s insurance policy becoming due for renewal, and record any agreement in a change order.

Question 7

GC 11.1 INSURANCE

11.1.7

Answer 7

If a revised version of CCDC 41 is published, which specifies increased insurance requirements, the owner may request the increased coverage from the contractor by the way of a change order.

Question 8

GC 11.1 INSURANCE

11.1.8

Answer 8

A change order directive SHALL not be used to direct a change in the insurance requirements in response to the revision of CCDC 41.