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ROCIP and Builder’s Risk Project Insurance Guidance Document for UT System Project Managers The University of Texas System Office of Risk Management July 1, 2018

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Page 1: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 1

ROCIP and Builder’s Risk Project Insurance Guidance Document

for UT System Project Managers

The University of Texas System Office of Risk Management

July 1, 2018

Page 2: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 2

Table of Contents

Coverage: ROCIP Phase VI .................................................................................................................................. 3

Coverage: ROCIP Phase VII ................................................................................................................................. 4

Coverage: Builder’s Risk I.................................................................................................................................... 5

Coverage: Builder’s Risk II................................................................................................................................... 6

Project Insurance: Milestone Events Timeline - CM/DB Projects only ................ Error! Bookmark not defined.

Project Insurance: Milestone Events Timeline - CSP Projects only .................... Error! Bookmark not defined.

Project Timeline .................................................................................................................................................. 9

Appendix A: Contractor Enrollment & Closeout (ROCIP VI) ........................................................................... 133

Appendix B: Contractor Enrollment & Closeout (ROCIP VII) ............................. Error! Bookmark not defined.5

Appendix C: Builder's Risk Delay in Completion Deductible Financing….…………………………………….……………… 17

Appendix D: Risk Evaluation Questionnaire ...................................................... Error! Bookmark not defined.8

Page 3: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 3

Coverage: ROCIP Phase VI

(Administered by Marsh USA) ORM Contact: Lisa Gunkel [email protected] 512-499-4534

Participation in this ROCIP is mandatory, but not automatic. The ROCIP will provide the enrolled parties with insurance at a ROCIP Project Site*. Workers’ Compensation (WC) - Pays lost wages and medical expenses of an employee who is injured on the job. Employers’ Liability (EL) – Protects an employer from damages from a lawsuit resulting from an injury due to the employer’s negligence. General Liability (GL) - Protects against liability claims for bodily injury (BI) and property damage (PD) to third parties arising out of premises, operations, products, and completed operations. It also provides advertising and personal injury (PI) liability. Excess Liability (XS) - Provides additional limits of liability in excess of underlying Employers’ Liability and General Liability primary limits. Phase VI excess limit is $75 million.

Phase VI – Owner Provided Insurance Structure

* “Project Site” includes: 1. At the Project Site 2. At locations that are necessary or incidental to the project as described in the contract documents 3. At off-site staging or storage areas, but only if the following apply:

a. they are dedicated solely to the designated project and b. the sponsor agrees to provide coverage

4. Areas immediately adjacent to the “designated project” including boundaries of local streets or public easement

Excess Liability

$75m per occurrence $75m annual aggregate

Various policies effective 8-1-2013 to 8-1-2019

Workers Compensation Statutory Limits

Policy # WC 4353410 Employers Liability

$1m limit (Included on WC policy)

General Liability $2m per occurrence

$5m annual aggregate $5m completed ops aggregate

Policy #GLO4353409 Effective Dates:

8-1-2013 to 8-1-2019

Page 4: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 4

Coverage: ROCIP Phase VII For projects with NTP after 8-1-2017

(Administered by Marsh USA)

ORM Contact: Lisa Gunkel [email protected] 512-499-4534

Participation in this ROCIP is mandatory, but not automatic. The ROCIP will provide the enrolled parties with insurance at a ROCIP Project Site*. Workers’ Compensation (WC) - Pays lost wages and medical expenses of an employee who is injured on the job. Employers’ Liability (EL) – Protects an employer from damages from a lawsuit resulting from an injury due to the employer’s negligence. General Liability (GL) - Protects against liability claims for bodily injury (BI) and property damage (PD) to third parties arising out of premises, operations, products, and completed operations. It also provides advertising and personal injury (PI) liability. Excess Liability (XS) - Provides additional limits of liability in excess of underlying Employers’ Liability and General Liability primary limits. Phase VII – increased excess limits to $100 million.

Phase VII – Owner Provided Insurance Structure

* “Project Site” includes: 5. At the Project Site 6. At locations that are necessary or incidental to the project as described in the contract documents 7. At off-site staging or storage areas, but only if the following apply:

a. they are dedicated solely to the designated project and b. the sponsor agrees to provide coverage

8. Areas immediately adjacent to the “designated project” including boundaries of local streets or public easement

Excess Liability

$100m per occurrence $100m annual aggregate

Various policies effective 8-1-2017 to 8-1-2023

Workers Compensation Statutory Limits

Policy # WC 0183286 Employers Liability

$1m limit (Included on WC policy)

General Liability $2m per occurrence

$5m annual aggregate $5m completed ops aggregate

Policy #GLO 0183287 Effective Dates:

8-1-2017 to 8-1-2023

Page 5: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 5

Coverage: Builder’s Risk I For Projects with NTP prior to October 31, 2016

(Administered by Beecher Carlson) ORM Contact: Brittany Davis [email protected] 512-499-4550

The Master Rolling Builder’s Risk Insurance Program provides coverage for physical loss or damage to buildings or other structures caused by a covered peril while they are under construction or renovation. The program covers the work being completed, contractor or owner furnished equipment, and damage to existing property for designated construction projects. Examples of covered perils include: fire, flood, water damage, windstorm, theft, vandalism, etc. Coverage Limits • $300,000,000 – 100% Program Limit of Liability

o Physical Damage (Hard Costs including owner supplied materials) for all structures. The specific limit per project is determined by the project values.

• $50,000,000 – Physical Damage for any project which includes wood frame, joisted masonry or mixed combustible structures

• $25,000,000 – Flood per occurrence and in the annual aggregate • $25,000,000 – Earthquake per occurrence and in the annual aggregate • $50,000,000 – Named Windstorm (including storm surge) per occurrence

o Damage to Existing Property – $5,000,000 ($1,000,000 sublimit for Contents) o Offsite Storage – $5,000,000 in any one location o Transit – $5,000,000 on any one conveyance o Soft Costs – $2,500,000 (per occurrence and in the aggregate per project) o Delay in Completion – $1,000,000

• Note: The $2,500,000 Soft Costs and $1,000,000 Delay in Completion limits will apply unless the Additional Coverage Worksheet is submitted to increase the limits.

Deductibles (paid by project unless insured loss caused by action or inaction of contractor or subcontractors) • AOP (All Other Perils)

o Projects ≤ $50M: $25,000 o Projects > $50M: $50,000 o Renovation projects: $50,000

• Flood o Level 1 Flood (Zones A, V, & D): $250,000 o Level 2 Flood (Zones B & X500): $100,000 o Level 3 Flood (All Other Zones): Applicable AOP deductible

• Named Windstorm (including storm surge) o Harris County, TX: 2% subject to $250,000 minimum o Galveston, TX: 3% subject to $250,000 minimum o All other Tier 1 counties: 2% subject to $250,000 minimum/$1,000,000 maximum o All other locations: Applicable AOP deductible

• Delay in Completion and Soft Costs o One day per month of project term subject to a minimum of 14 days per occurrence and a maximum of 30

days per occurrence. 60 days per occurrence for Flood, Earthquake, and Named Windstorm (including storm surge)

Page 6: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 6

Coverage: Builder’s Risk II For Projects with NTP on or after October 31, 2016

(Administered by Beecher Carlson) ORM Contact: Brittany Davis [email protected] 512-499-4550

The Master Rolling Builder’s Risk Insurance Program provides coverage for physical loss or damage to buildings or other structures caused by a covered peril while they are under construction or renovation. The program covers the work being completed, contractor or owner furnished equipment, and damage to existing property for designated construction projects. Examples of covered perils include: fire, flood, water damage, windstorm, theft, vandalism, etc. Coverage Limits • $300,000,000 – 100% Program Limit of Liability

o Physical Damage (Hard Costs including owner supplied materials) for all structures. The specific limit per project is determined by the project values.

• $50,000,000 – Physical Damage for any project which includes wood frame, joisted masonry or mixed combustible structures

• Flood per occurrence and in the annual aggregate • $25,000,000 – Flood A, D, or V • $50,000,000 – Flood Shaded X or B • $300,000,000- Flood All Other Zones

• $300,000,000 – Earthquake per occurrence and in the annual aggregate • Named Windstorm (including storm surge) per occurrence

• $50,000,000 – Named Storm Wind Zone One Counties (including but not limited to Cameron, Galveston, and Harris)

• $100,000,000 – Named Storm Wind Zone Two Counties (including but not limited to Hidalgo)

o Damage to Existing Property – $5,000,000 (includes contents) o Offsite Storage – $5,000,000 in any one location o Transit – $5,000,000 on any one conveyance o Soft Costs and Delay in Completion (Gross Earnings) – $5,000,000 (per occurrence and aggregate per

project) • Note: The $5,000,000 limit for Soft Costs and Delay in Completion will apply unless the Additional

Coverage Worksheet is submitted to increase the limits. Deductibles (paid by project unless insured loss caused by action or inaction of contractor or subcontractors) • AOP (All Other Perils)

o All Projects: $25,000 except; $50,000 for large span buildings with unsupported roof (outdoor theater, auditoriums, etc.)

• Flood o Level 1 Flood (Zones A, V, & D, excluding Galveston): $250,000 o Level 2 Flood (Zones B & X500): $100,000 o Level 3 Flood (All Other Zones): Applicable AOP deductible

• Named Windstorm (including storm surge) o Galveston, TX: 2% subject to $250,000 minimum and a maximum of $1,000,000 o Wind Zone 1 (including Harris County): $250,000 o Wind Zone 2: $100,000 o All other locations: Applicable AOP deductible

• Delay in Completion and Soft Costs o One day per month of project term subject to a minimum of 14 days per occurrence and a maximum of 30

days per occurrence.

Page 7: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 7

Page 8: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 8

Page 9: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 9

Project Timeline Project Inception & Definition Phase - Budgeting

ROCIP VI - Current Cost is 1.85% of the estimated Total Construction Value (Construction Services Commitments) for the project. ROCIP VII - Current Cost is 1.75%* of the estimated Total Construction Value (Construction Services Commitments) for the project. (*1.72% of CCL + 0.03% for Delay in Completion Deductible). Builder’s Risk – In order to receive a Builder’s Risk premium estimate for early budgeting purposes, complete the Builder’s Risk Budget Worksheet and submit a copy to Brittany Davis at the Office of Risk Management. You will need to collect the information listed on the BR Budget Worksheet link above in order to receive a premium estimate. Additional costs will be incurred if the Campus Finance Contact elects to purchase additional coverage limits for soft costs and/or delay in completion.

Premium adjustments will be made for changes in the insured values or project duration. Additional premium will be billed as:

• Values are increased; • The project term is extended, or; • At project closeout.

Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases to the CCL are funded from outside of the GMP, or CSP contract. Design Phase - Risk Evaluation Contact ORM to discuss any unique risk factors for the project and the resulting insurance coverage implications. Unique risk factors could include demolition, fine art exposures, underground boring, environmental remediation, offsite job trailer, coastal or flood prone concerns. Please see Appendix B for more information. Pre-NTP

ROCIP Enrollment Prime Contractor should provide the ROCIP Program information to all sub-contractors while buying out the project. For ROCIP VI projects, Prime Contractor should provide enrollment forms to all subcontractors. For ROCIP VII projects, Prime Contractor should provide enrollment information via MWrap, Marsh’s online ROCIP Administration platform.

Page 10: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 10

Builder’s Risk Binding The PM will need to submit the following underwriting information for a firm cost quote to ORM via email:

• Anticipated NTP, Substantial and Final Completion Dates for coverage • Project Description • GMP, or CSP contract, amount plus any campus furnished materials/equipment • Name and Address of prime contractor and e-mail for prime contact for copies of BR certificates of

insurance PM uploads the following documents into OPUS Builder’s Risk Form prior to binding:

• Schedule of Values • Project Milestone Schedule • Project Site Plan • Artist Rendition/Photos of the Project • Geotechnical report • Additional Coverage Worksheet - PM provides Campus Finance contact information to

ORM. ORM will submit Additional Coverage Worksheet to Campus Finance Contact for review, discussion, and consideration. Campus Finance contact may wish to purchase additional coverage if they anticipate that a covered cause of loss will result in a Delay in Completion loss greater than the $1 million sublimit, or Soft Cost losses in excess of the $2.5 million sublimit.

o Delay in Completion – is a loss of income incurred as a result of a delay caused by a covered loss. Some of the more common Delay in Completion losses are loss of hospital revenues, rental income, and event income. Up to $1 million in Delay in Completion Loss coverage is included in the Master Builder’s Risk policy. If your completed project is expected to generate significant income, additional Delay in Completion Loss coverage may be appropriate.

o Soft Cost – are essentially extra expenses incurred as a result of a delay caused by a covered loss. Some of the more common soft costs are interest charges on project financing, cost to extend permits, costs associated with lease renegotiations and accounting, legal, architectural, or engineering fees. Up to $2.5 million in Soft Cost coverage is included in the Master Builder’s Risk policy. If your project has special circumstances, such as a large portion of debt funding to be repaid by the institution, additional Soft Cost coverage may be appropriate.

Page 11: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 11

Notice to Proceed PM Sends a copy of the NTP to ORM –

ROCIP VI Enrollment Prime should provide all requested information to the ROCIP Administrator as soon as available. Subcontractors can be approved and placed in a pending status awaiting their start dates. Prime contractor must be enrolled before lower tiers. Subcontractors will be enrolled according to their tier and their scheduled start dates. Please allow at least 7 business days for approved/pending enrollment. Insurance coverage will be evidenced for enrolled parties 7 days prior to the contractors’ or subcontractors’ scheduled start date. Subcontractor enrollment must be approved by Marsh prior to beginning work at the Project Site. ROCIP VII Enrollment Prime should provide all requested information to the ROCIP Administrator through Marsh’s MWrap online enrollment system as soon as available. Subcontractors can be approved and placed in a pending status awaiting their start dates. Prime contractor must be enrolled before lower tiers. Subcontractors will enroll through Marsh’s MWrap online enrollment system according to their tier and their scheduled start dates. Please allow at least 7 business days for approved/pending enrollment. Evidence of coverage can be confirmed via MWrap by the Prime 7 days prior to the Subcontractor’s scheduled start date. The ROCIP Certificate of Insurance is issued the day of the scheduled start date via MWrap. Subcontractor enrollment must be approved by Marsh prior to beginning work at the Project Site. Builder’s Risk Prior to NTP, PM should contact ORM to discuss on which date BR coverage should begin. BR coverage often begins at NTP, but a different date may be elected depending on project activity. Once coverage is placed, ORM sends the certificate of insurance and claims guide to the PM copying the prime’s contact.

Construction Phase PM Sends a copy of the Change order to ORM –

ROCIP VI & ROCIP VII Changes- PM advises Marsh of change orders that alter the project term, scope, and/or GMP or CSP contract value and updates OPUS accordingly. ORM will make adjustments to the ROCIP coverage as needed. Administrator should be advised of adjustments to schedule and term dates. Monthly Reporting Phase VI - Prime Contractor reports project information such as payroll and man hours for all enrolled parties to ROCIP Administrator on a monthly basis. PM will assist as needed to resolve delinquent reports.

Page 12: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 12

Phase VII - Prime Contractor and all enrolled sub-contractors will report project information such as payroll and man hours to ROCIP Administrator on a monthly basis through the MWrap system. PM will assist as needed to resolve delinquent reports. Builder’s Risk Changes- PM advises ORM of change orders that alter the project term, scope, and/or value of the work and updates OPUS accordingly. ORM will make adjustments to the BR policy and provide a revised certificate of insurance to the PM and prime contact.

Substantial Completion PM sends a copy of all SC certificates to ORM. If entire contract is not accepted, the exception needs to be stated on the SC certificate and a subsequent SC certificate will be issued for each completed and accepted part of the project with the last one issued marked Yes - the entire contract has been accepted.

ROCIP VI & ROCIP VII As the Substantial Completion date is approaching (including Partial SC or as a sub-contractor completes their contract and will not return to the project), a Notice of Close Out should be completed by each respective subcontractor; contractors working on ROCIP VI projects will report via Form 5, and contractors working on ROCIP VII projects will do so via MWrap. WC coverage in ROCIP ends at Substantial Completion. At that time, contractors and subcontractors are responsible for carrying their own WC coverage for punchlist and warranty work. GL extensions are triggered for the project based on date of Substantial Completion. Coverage extends 2 years from SC date for repairs/warranty work and 10 years from SC date for Completed Operations.

Builder’s Risk ORM monitors the expiration date of the Builder’s Risk coverage for each project and follows up with the PM/RCM to check status of the project’s anticipated SC date and to see if an extension for the BR coverage is needed. As SC approaches, ORM and the PM should discuss options for terminating/extending the BR coverage in light of anticipated project activity, such as amount and nature of work not yet accepted and/or high risk activity at the project site (HVAC, plumbing, electrical, etc.). ORM will provide a premium cost quote for a one month extension to be weighed in comparison to the risks continuing beyond SC. Any extension will result in additional premium. ORM will process extensions as needed and provide the PM with a revised certificate of insurance copying the prime contact. When the PM confirms terminating the BR policy is acceptable, ORM will request coverage to end and will send a confirmation email to the PM copying the prime contact. Upon termination of Builder’s Risk coverage, ORM adds the building to the Comprehensive Property Protection Program schedule, and responsibility for property insurance on the building is transferred to the institution.

Page 13: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 13

Appendix A: Contractor Enrollment & Closeout (ROCIP VI) Enrollment

Participation in the ROCIP is mandatory for all Contractors and Subcontractors of any tier unless excluded by The University of Texas System, but enrolment is not automatic. Contractors and Subcontractors of any tier must submit all necessary enrollment forms and supporting documentation and be accepted into the ROCIP as evidenced by a confirmation of enrollment letter and Proof of Insurance before work can begin at the project site. The following conditions need to be met before a Contractor or Subcontractor can be enrolled:

• ROCIP Form 1- Notice of Subcontract Award and Request for Insurance • ROCIP Form 2 - Insurance Premium Worksheet • ROCIP Form 4 - Supplemental Insurance Information Form • Insurance Enrolment Worksheet, including the supporting documents (copies of the policy

declaration page and policy rate pages or Deductible Agreement pages if on a large deductible program).

• Enrolled parties’ warranty that all insurance premium calculations have been correctly identified. • Enrolled parties shall provide a Certificate of Insurance evidencing insurance coverage required by

the UGC and Project Insurance Specification. Enrolled parties must provide their own insurance for off-site activities including, but not limited to, work at their permanent shops, fabrication or manufacturing of building products, materials or supplies.

The ROCIP administrator will provide a Certificate of Insurance evidencing ROCIP coverages naming the enrolled party as an insured.

Excluded Parties

Off-site fabricators, vendors, suppliers, material dealers, janitorial services (not involved in construction site activities), delivery cranes, demolition, blasting, truckers (including trucking to the Project Site where delivery is the only scope of Work to be performed), asbestos abatement or other hazardous waste removal Contractor(s) and their respective Subcontractor(s) of any tier, and others whose sole function is to transport, pickup, deliver or carry materials, supplies, tools equipment, parts or other items to or from the Project Site, or who do not perform any actual on-site labor, and any other entity specifically determined by The University of Texas System to be excluded. Excluded parties will not be covered by insurance provided through the ROCIP.

Exempted Parties

It is the UT System’s intent to enroll all Contractors and Subcontractors of any tier who perform on-site labor. The UT System, at its sole discretion, may grant exemptions to enrollment based on an individual contractor’s work duration and scope of work. Exemption requests should include a completed notice of award (via MWrap), and written request sent to the ROCIP administrator (via e-mail) detailing scope of work to be performed onsite. Additionally, each request should include a certificate of insurance with a copy of all endorsements as required by contract.

Page 14: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 14

Close-out process

As the Substantial Completion date is approaching (including Partial SC or as a sub-contractor completes their contract and will not return to the project), a Notice of Close Out (Form 5) should be completed by each respective subcontractor. The prime should:

• Identify contracts that are now complete - submit final payroll report and completed close out form • Identify any enrolled contractors that will be inactive for a period of time but are expected to

continue working onsite at a later date. • Advise Marsh to close the file for any contracts that have been determined to be unexecuted.

For more information on the Contractor Enrollment and Closeout Process, please refer to the Project Insurance Manual.

Page 15: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 15

Appendix B: Contractor Enrollment & Closeout (ROCIP VII) Enrollment

Participation in the ROCIP is mandatory for all Contractors and Subcontractors of any tier unless excluded (or exempted by The University of Texas System, but enrollment is not automatic. Contractors and Subcontractors of any tier must enroll through the MWrap enrollment system and upload supporting documentation to be accepted into the ROCIP as evidenced by a confirmation of enrollment letter and Proof of Insurance before work can begin at the project site. The following conditions need to be met before a Contractor or Subcontractor can be enrolled:

• Contractors and Subcontractors of any tier must enroll through MWrap system. • Supporting documents (copies of the policy declaration page and policy rate pages or Deductible

Agreement pages if on a large deductible program) must be uploaded into MWrap for review. • Certificate of Insurance evidencing insurance coverage required by the UGC and Project Insurance

Specification uploaded into MWrap for review. Enrolled parties must provide their own insurance for off-site activities including, but not limited to, work at their permanent shops, fabrication or manufacturing of building products, materials or supplies.

The ROCIP administrator will provide a Certificate of Insurance evidencing ROCIP coverages naming the enrolled party as an insured.

Excluded Parties

Off-site fabricators, vendors, suppliers, material dealers, janitorial services (not involved in construction site activities), delivery cranes, demolition, blasting, truckers (including trucking to the Project Site where delivery is the only scope of Work to be performed), asbestos abatement or other hazardous waste removal Contractor(s) and their respective Subcontractor(s) of any tier, and others whose sole function is to transport, pickup, deliver or carry materials, supplies, tools equipment, parts or other items to or from the Project Site, or who do not perform any actual on-site labor, and any other entity specifically determined by The University of Texas System to be excluded. Excluded parties will not be covered by insurance provided through the ROCIP.

Exempted Parties

It is the UT System’s intent to enroll all Contractors and Subcontractors of any tier who perform on-site labor. The UT System, at its sole discretion, may grant exemptions to enrollment based on an individual contractor’s work duration and scope of work. Exemption requests should include a completed notice of award (via MWrap), and written request sent to the ROCIP administrator (via e-mail) detailing scope of work to be performed onsite. Additionally, each request should include a certificate of insurance with a copy of all endorsements as required by contract.

Close-out process

As the Substantial Completion date is approaching (including Partial SC or as a sub-contractor completes their contract and will not return to the project), a Notice of Close Out should be completed by each respective subcontractor in MWrap. The prime should log into MWrap and:

Page 16: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 16

• Identify contracts that are now complete - submit final payroll report and completed close out form via MWrap.

• Identify any enrolled contractors that will be inactive for a period of time but are expected to continue working onsite at a later date.

• Advise Marsh to close the file for any contracts that have been determined to be unexecuted. For more information on the Contractor Enrollment and Closeout Process, please refer to the Project Insurance Manual.

Page 17: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 17

Appendix C: Builder’s Risk Delay in Completion Deductible Financing

The Builder’s Risk Delay in Completion Deductible Financing is only available to projects that are enrolled in ROCIP VII.

Structure

The first $25,000 of the Builder’s Risk Delay in Completion Deductible is financed by either the Contractor or Project. Refer to Project Insurance Spec Section 2.2.9 to determine whether the Contractor or Project pays.

The next 0.1% Construction Value is financed by the self-insurance fund, with:

• $10,000 minimum for projects valued under $10M CV • $25,000 minimum for projects valued above $10M CV

Any additional deductible amount is financed by the Project.

Financing

$0.03 is built into the ROCIP VII rate.

Page 18: ROCIP and Builder’s Risk Project Insurance Guidance ......• At project closeout. Please remember to increase the ROCIP and BR line items on your cost sheet in OPUS when increases

Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 18

Appendix D: Risk Evaluation Questionnaire

The following risk evaluation questionnaire is designed to assist Project Managers in determining whether there are any unique activities associated with the construction project and their potential impact to insurance coverage. This questionnaire is designed to be a tool to support the Risk Evaluation discussion with ORM; it is not designed to anticipate every unique risk that may be involved on your project. Completing this questionnaire prior to the Risk Evaluation discussion with ORM is voluntary. 1. Is the site or a portion thereof in a high hazard flood plain? Choose an item.

a. What is the maximum and average value of materials stored (laydown areas) at any given time within the floodplain? Click here to enter text.

2. What is the maximum value of work anticipated to be stored (not in place) on site at any given time?

Click here to enter text. 3. Does the site include existing above or below grade structures or utilities that require hazardous materials

abatement? Choose an item. 4. Will the project include any new occupied structures below grade?

a. How many occupied stories are below grade? Click here to enter text. b. Will the project include any new below grade utility tunnels? Choose an item. c. If below grade utility tunnels do or will exist do these tunnels connect to adjacent occupied

buildings? Choose an item.

5. Is your site located on a brownfield? Choose an item. 6. Does your project include building demolition work? If yes, please describe. Click here to enter text. 7. Does your project include utility demolition work? Choose an item. 8. Will Limits of Construction be adjusted over the course of the project? Choose an item. 9. Will contractor materials or equipment deliveries ever occur outside the limits of construction? Choose

an item. 10. Does your project require work in the Right of Way? Choose an item.

a. Does your project include a construction above or over a Right of Way? Choose an item. 11. Does your project involve relocation of trees? Click here to enter text. 12. Does your project include individual landscape items (trees/shrubs) values over $10,000 per item? Click here to enter text. Construction: 13. Does your project require constructing tower or luffer cranes? Choose an item.

a. If constructing tower cranes, will the cranes extend over non-UT property? Choose an item. b. How many cranes will your project have? Click here to enter text.

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Construction Insurance Guidance Document for UT Managers

Office of Risk Management The University of Texas System

July 1, 2018 19

14. Will the job trailer be located at the construction site or off-site? Click here to enter text. 15. Does your project require connection to public utilities? Choose an item.

a. Will any work on site be performed by a public utility provider (i.e. TX GAS or Austin Energy)? Choose an item.

16. Does your project include underground tunnel boring or excavation? Choose an item. 17. Does your project include environmental remediation? Asbestos Abatement? Click here to enter text. 18. Does your project include piped chemical / gas distribution systems?

a. Does the project include connection to existing chemical / gas distribution systems? Choose an item.

b. Does the project include connection to existing medical gas distribution systems? Choose an item.

19. Does your project include a chemical fire suppression system? Choose an item. 20. If the building is an existing structure will it be occupied by others (non-construction personnel) during

construction? Choose an item. 21. Will work occur within an existing easement? Choose an item. a. Does this easement include public utilities? Choose an item. 22. For building construction, provide estimated distance to nearest active fire hydrant if not shown on site

plan. Click here to enter text. 23. Does your project include significant art installation or occur in an existing structure with significant

art/historical items? Click here to enter text. 24. Please describe any other unique factors present in your project that you would like to discuss? Click

here to enter text.