b'This appears to broaden yourMostroofersinsurancepoliciesants and acknowledge receipt ofinsurers from sharing informa- agreetomanyitems.Thereare liability by stating that the limitscontainwarranties,representa- all third-party claims in writingtion with the owner.an increasing number of tenders ofinsuranceinCCDC41In- tions(ordependsuponthem),withinseven(7)WorkingDaysreleasing with very similar insur-suranceRequirementsareonlydeclarationsandconditionsupon being notified in writing ofTreatment:ance conditions to those reviewed the prescribed minimum (whichincluding exclusions. the third-party claim Theownershouldconsider they are), so you are obliged toanowner-controlledinsuranceabove. If you do not wish to fall consider whether the risk of lossTreatment:Theownerisdictatinghowprogram if they wish to dictateafoul with an owner or potential-is higher. Westronglysuggestremov- your insurers policy works. Onlyhowclaimswillbehandled.ly lose a low bid, you will be well ing this clause or similar clausesyou, your insurer and adjustersThe clause should be deleted.advised to involve your insurance Treatment:altogether. No insurer will agreedeterminecontactwiththirdadvisers well ahead of the tender Thisisstandardbutworthto this. It is like providing a pol- party claimants. .failure to resolve the third- questionsdeadlineandthebid discussing.CCDConlyrecom- icythatcoverseverything:thereparty claim to the satisfactiondeadline. mends no less than the cover- is no such policy.InsurerscannotTreatment:oftheOwnerwithinninety ages/limitsstipulated.Youneedremove the effect of representa- If you receive a claim, we rec- (90) calendar Days of the re- In the past, I have provided an toconsidertherisksassociatedtions/declarationsmadetotheommend you seek advice fromceipt of the third-party claim,analysis of a standard CCDC 2, witheachprojecttodetermineinsureruponwhichtheinsureryourinsurersadjustersbeforethe Owner reserves the right to2008 Indemnification Agreement if it needs more liability protec- depends in order to provide in- communicating with any claim- appoint an insurance adjusterand Insurance Conditions. It is of tion or additional insurance cov- surance coverage. Insurers cannotants, assuming you have report- orotherpersontosettleanygreat concern to me that owners erage. In this specific tender, forwaive conditions as these coulded the situation right away. Youthird-party claims arising fromare increasingly changing CCDC example, the owner is aggressivelyincludeexclusionsandevenneed to follow the requirementsthis Contract. 2 Indemnification and Insurance transferringriskinboththein- statutory conditions. This wouldof the policy. If the owner insistsConditions without the involve-demnification agreement and thenotbecommerciallyavailable.this clause remain in the insur- If the owner controls the in-ance specifications, a discussionsurance,theywouldhavethisment of contractors and insurers. insurance conditions. Qualified legal counsel can advisewithyourlegalcounseland/orright if agreed to by their insur- IhopethatthenewCCDC2, better. This is an example of howyour broker and insurers will beers. In this case, it is your policy2020 will successfully reduce the The General Liability Insuranceaggressive some owners specifica- andyourinsurerdetermines and Wrap-up Liability Insurancetions can become.necessary. Insurers are not gener- amount of supplementary condi-policieshereinshallincludetheUnbelievably, it gets worse ally amenable to being dictatedwhen a loss will be settled.tions that are added to the basic Owner as an additional insuredto as to how to handle claims. Treatment:CCDC 2 contract document, but with respect to the Design-Build- No policy shall contain any pro- TheownershouldconsiderThe likelihood of any third- I somehow doubt it.ers operations, acts and omissionsvisionwhichwouldcontraveneanowner-controlledinsurancepartyliabilityclaimbeingre- I hope the foregoing demon-relatingtoitsobligationspursu- the obligations of the Contractorprogram if they wish to dictatesolvedwithin90daysisverystratesthehugeimportanceof ant to this Contract. hereunder or otherwise be to thehow claims will be handled. Anlow, as you likely know. Even areading your tenders, RFPs, etc., detriment of the Owner additional insured does not con- year is a low likelihoodsome A good example of lazy draft- trol your policies, it just has anforyourownprotection.The ing.Thisisnotadesign-buildA very broad statement wheninsurableinterestinthem.Theliabilityclaimsremainopensaying bidder beware comes to projectasitisonaCCDC2thecontractindemnificationclause should be deleted.forseveralyears.Theownermind. Are you prepared to take contractform.Thisisthefirstagreementalreadywellexceedsdoes not have the right to ap- this risk? mention of wrap-up liability. Thisany insurance policy and what itprovide the Owner with cop- point adjusters under your pol-ies of all correspondence betweenicy; only your insurer has suchI am more than pleased to as-whole sentence is totally out ofwill provide. No insurer will agreerights.Theownermayhireasist if any of you need any help. contextwithaCCDC2,2008to thisit is like an uncondition- the Contractor or its agents and and CCDC 41 document.al guarantee of coverage no mat- the third party claimant publicadjusterfortheirown ter what the circumstances. purposes,butastheydonot Treatment:Insurersdeterminewithcontrolyourpolicy,Iamnot YoushouldreallyinsistthatTreatment:whichpartiestheywillsharesure what value that would de- Simon J. Fenn, CIP anydraftingerrorslikethisbeSuggestif not insist onre- correspondenceafterreport- liver. The clause should be de- Chairman removed entirely to avoid ambi- moving this clause. It is not com- ing a claim. There may be per- leted. guityandconfusionbeforethemercially reasonable. ceived legal conflicts that couldAs you can see from our re- Fenn & Fenn Insurance Practice Inc. question deadline passes. Further- prejudice the insurers ability toview of the insurance specifica- simon@fenninsurance.commore:contact all third-party claim- defend you, thereby preventingtions,insurerssimplywillnotwww.fenninsurance.com 1. Theadditionalinsured clause is addressed already in CCDC 2, Section 11.1.1.1.Free Estimates and Proposals2.There is no wrap-up liabilityModified Bitumen Membrane Assembliesrequirement in CCDC 2 orP.V.C. Roofing MembraneCCDC 41. Protected Roof Membrane Assemblies3.Thereisnodesign-buildROQUE ROOFINGRestoration and Renovation Work Michelle Torrealbacontract in this case.info@roqueroofing.com Roof Evaluations and Reporting michelle.torrealba@jplease.coma waiver in respect of the in- 905-525-9689Waterproofing Systems 647.888.8960terests of the Owner of any provi-sion of the policy with respect to any breach by the Contractor or any other insured of any warran- Leasing & Fleet Management ties, representations, declarations orconditionscontainedintheROOF AND FACADES INSPECTIONfor small to large roofing companiespolicy; and PERFORMED BY LEVEL 3 THERMOGRAPHER This is what we refer to as theAND FULL LICENSED PILOT All makes, all modelsugly!ThesentenceisbroadTHERMO DRONE INSPECTIONenoughthatconditionscould514-718-8440 819-343-8440beconstruedasexclusionsor WWW.THERMODRONEINSPECTION.COMendorsements,suggestingthat thepolicyhasnoexclusions orconditionsasregardsthein- www.jimpattisonlease.comsurableinterestoftheowner. 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