Legal Issues with Obtaining Insurance for Large Transit Projects (2014)

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A-1 APPENDIX A—SURVEY TCRP J-5, STUDY TOPIC 15-01 LEGAL ISSUES WITH OBTAINING INSURANCE ON LARGE TRANSIT PROJECTS Survey Questions Agency Name: ________________________________________________________________________ Name of Employee: ____________________________________________________________________ Job Title: ____________________________________________________________________________ Contact telephone/cell phone number: ________________________/ ____________________________ Email address: ________________________________________________________________________ How many years have you been with the agency? ______ Note (a) Large Transit Projects are defined as: capital projects over $100M that involve new build, extension or upgrades to infrastructure such as tunnels, viaducts, rails, signal systems, stations, and rolling stock addi- tions or replacements. (b) Please provide copies via e-mail or on a disk or provide an Internet-link for any contracts or other documents identified in your responses. (c) In responding to the following questions, please feel free to attach extra pages as needed. 1. Please indicate the types of delivery systems currently in use at your agency Check box (all that apply) Design Bid Build Design build Design Build Operate Maintain (DBOM) CM/GC Public Private Partnerships 2. Are your agency’s insurance requirements tailored to its project delivery systems (for example, Design Bid Build; Construction Manager/General Contractor; Design Build; Public Private Partnerships)? Yes No If you answered “yes,” please explain how your agency’s insurance program has been modified to fit each applicable delivery system __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ______________ 3. Who in your organization is primarily responsible for drafting the contract risk provisions?

A-2 Risk Manager Lawyer Broker Procurement Official Other _____________________________________________________________________ 4. Who in your organization is primarily responsible for drafting the insurance contract provisions? Risk Manager Lawyer Broker Procurement Official Other __________________________________________________________________ 5. How often does your agency use the following construction insurance coverages or approaches on agency projects? (Indicate use as Always=A, often=O, sometimes=S, and never=N) A O S N Builder’s Risk (purchased by Agency or as extension of Agency’s prop- erty coverage) Builder’s Risk (contractor provided) Owners Controlled Insurance Program (OCIP) Contractors Controlled Insurance Program (CCIP) Contractors’ Pollution liability Architects and Engineers Errors and Omissions (Practice Policies) Project Errors and Omissions Owners Professional Protective Indemnity Subcontractor Default Insurance (sometimes known as “Subguard”) 6. With respect to insurance coverage or approaches where you answered always (A) or Often (O) in question #5, can you identify why these approaches are so frequently used? 6. a. Generally, why these approaches are so frequently used ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. b. Builder’s Risk (purchased by agency) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. c. Builder’s Risk (purchased by contractor) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. d. Owners Controlled Insurance Program (OCIP)

A-3 ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. e. Contractor’s Controlled Insurance Program (CCIP) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. f. Contractors Pollution Liability ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. g. Architects and Engineers Errors and Omissions (Practice Policy) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. h. Project Error or Omissions ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 6. i. Owners Professional Protective Liability ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ _____________ 6. j. Subcontractor’s Default Insurance (Sub guard) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. With respect to insurance programs or approaches where you answered sometimes (S) or Never (N) in question #5, can you identify why these approaches are not used more often? 7. a. Generally, why these approaches are not used more often? 7. b. Builder’s Risk (purchased by Agency or as an extension of Agency’s property coverage) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. c. Builder’s Risk (contractor provided) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. d. Owners Controlled Insurance Program (OCIP) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. e. Contractors Controlled Insurance Program (CCIP) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. f. Contractors’ Pollution Liability

A-4 ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. g. Architects and Engineers Errors and Omissions (Practice Policies) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. h. Project Errors and Omission ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. i. Owners Professional Protective Indemnity ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 7. j. Subcontractor Default Insurance (sometimes known as “Subguard”) ______________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ______________ 8. Please indicate and describe the method most often used in selecting an insurance broker. Check box Open competitive RFP Pre-qualified pool through RFQ process then distribute RFP Pre-qualified pool through RFP process then make selection Personal/professional relationship Other (please specify) _________________________________________________________________ 9. Please indicate the method most often used in selecting insurer(s). Check box Open competitive RFP Pre-qualified pool through RFQ process then distribute RFP Pre-qualified pool through RFP process then makes selection Personal/professional relationship Other (please specify) _____________________________________________________________________ 10. Please identify any state or federal law, rule, case law or regulation that impacts your agency’s ability to assign risk contractually or affects its insurance program? (Please list) __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ______________ 11. If your agency uses OCIP or CCIP please indicate the type of project __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ______________ If your agency does not use either OCIP or CCIP, please explain why?

A-5 __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ______________ 12. Does your agency have a written policy regarding insurance requirements, responsibility for procuring such insurance, and related services on large projects? Yes No If “yes,” please provide a reference for where the written policy can be accessed. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ______________ 13. Please list other insurance issues or case law that affects your agency’s insurance program if not oth- erwise mentioned in response to other questions. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ______________ Please send your responses and any other documents, preferably by e-mail, to: Eric Kerness, Esquire Kerness Consulting 1357 Stanley Lane Schenectady, NY 12309 Tel. (518) 347-2778 Cell: (518) 928-9433 Eric@Kerness.com