By: Jim Alexander
Compelling evidence of the “hardening” of the professional indemnity insurance (PII) market post-Grenfell has been provided by a recent survey conducted by the Construction Leadership Council (CLC).
Read MoreAuthors: Richard F. Paciaroni, Justin N. Leonelli, and Reymond E. Yammine
COVID-19 has made its way into various industries throughout the world, and Pennsylvania’s construction industry is no exception. All commercial construction activities throughout the Commonwealth, with a few limited exceptions, have been halted indefinitely to assist in mitigating the ongoing spread of the coronavirus. Similarly, construction supply chains in Pennsylvania, the U.S., and abroad have either limited supply or halted material production altogether, which may result in severe construction delays throughout Pennsylvania once construction projects are cleared to continue. Given the current (and likely ongoing) state of flux faced by Pennsylvania’s construction professionals, it is important that contractors familiarize themselves with the state-specific legal concepts currently at play and consider practical efforts to help curtail the economic impact of COVID-19.
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London partner, Matthew E. Smith spoke on the role of insurance and cost reduction in EPC contracts at the recent Global EPC Contract & Risk Management Conference on October 12-13, 2017 in London.
To view a copy of Matthew’s presentation titled “The Role of Insurance and Cost Reduction in EPC Contracts,” please click here.
The number one cause of subcontractor default is overextension of financial and operational resources. As the economy grows, subcontractor defaults are on the rise. While SDI provides improved coverage terms with claim payment provisions that are intended to streamline the process, many insured’s have experienced difficulties working through the SDI claim process that includes extensive RFI’s, cost allocation documentation and coverage interpretations that can materially impact the outcome.
Newark partner Christopher Barbarisi was published by Construction Executive magazine on the topic of “Techniques to Maximize SDI Coverage and Streamline the Claim Process.”
Design-builders, general contractors and “at risk” construction managers are all vulnerable to the risk of a subcontractor default. Aside from contract-related safeguards, such as increased retention, joint checks and letters of credit, subcontractor surety bonds have been the traditional mechanism for third-party risk transfer.
First introduced in the mid-1990s, subcontractor default insurance (SDI) provides a viable “first-party” insurance alternative to traditional surety bonds. To compete with surety bonds, SDI policies are heavily marketed as having a more efficient claim processes. In practice, the SDI claim process is not without its challenges. Effective techniques can be employed to streamline the process and keep the project funded and on track.
To read the full article on Construction Executive, click here.
By Timothy L. Pierce, K&L Gates, Los Angeles and Jacquelyn S. Celender, K&L Gates, Pittsburgh
There are many different types of insurance available for construction risks. It is important for owners and contractors to think critically at the beginning of any construction project about the risks inherent to the project and the types of insurance available to them to protect against such risks. Additionally, it is imperative that policyholders understand the benefits and limitations of different insurance policies.
This presentation explores (i) the basic forms of insurance coverage available for construction risks, (ii) wrap-up programs — owner controlled insurance programs (OCIP) and contractor controlled insurance programs (CCIP), (iii) common issues policyholders face when seeking coverage for a construction related loss under commercial general liability (CGL) policies, and (iv) practical considerations for the coverage construction lawyer.
To view the presentation, click here.
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