Procurement Practice Guide Construction insurance Figure 2 Procedure Flowchart - Insurance Checking Page 2 'yes', and to the right mean 'no' Follow-up Notice to Contractor requiring satisfactory of includes: insurance ELSE Princiapl Major Aspects may arrange insurance Insurer unsatisfactory and recover from Contractor not named as insured contractor Type of insurance incorrect Not current Amount grossly deficient compared to required amount Minor Aspects includes: Principal apparently not covered Subcontractors apparently not covered Amount insufficient, but not grossly deficient Exclusoins detrimental to the Princpal's Interest Proof OK Major Aspects on hand or submitted in 7 days Further Notice to Contractor Arrange Insurance giving further 7 Proof OK Minor Work Suspended by Principal to days to submit Aspects Submitted or Site Access cover outstanding satisfactory in 7 days Denied Proof OK risks proof Minor Aspects Convention: Deduct Insurance Work Suspended arrows leaving Lift Suspension. Costs from or Site Access decision diamonds Site Access Contractor's Denied downward mean Claims Lift Suspension. Unfreeze Grant Site Access payments NFA 4 Use of Procurement System Insurance Policies 4.1 Introduction The State Contracts Control Board has secured a Contract Works and Public Liability Insurance Policy with associated insurance broker services which is required, where possible, to be used to provide PAI for projects for agencies which are required to use the Procurement System. The policy may also be used by the following agencies which are not required to use the Procurement System: Department of Housing, Maritime Authority, and Traffic Authority, Sydney Catchment Authority, Sydney Harbour Foreshore Authority, and Sydney Olympic Park Authority. The policy will usually only be available to cover conventional building and minor engineering works and will not be available to for large scale or specialised civil engineering works. Works estimated below $100,000 may be covered by contractor's insurance instead of Procurement System insurance. The Procurement System Contract Works and Public Liability Insurance Policy is available on ProcurePoint or alternatively, . Department of Finance, Services and Innovation June 2009 Page 26
Procurement Practice Guide Construction insurance Figure 2 Procedure Flowchart - Insurance Checking Page 2 Follow-up Notice to Contractor requiring satisfactory of insurance ELSE Princiapl may arrange insurance and recover from contractor Proof OK Major Aspects on hand or submitted in 7 days Proof OK Minor Aspects Convention: arrows leaving decision diamonds downward mean 'yes', and to the right mean 'no' Major Aspects includes: Insurer unsatisfactory Contractor not named as insured Type of insurance incorrect Not current Amount grossly deficient compared to required amount Minor Aspects includes: Principal apparently not covered Subcontractors apparently not covered Amount insufficient, but not grossly deficient Exclusoins detrimental to the Princpal's Interest Further Notice to Contractor Arrange Insurance giving further 7 Proof OK Minor Work Suspended by Principal to days to submit Aspects Submitted or Site Access cover outstanding satisfactory in 7 days Denied risks proof Work Suspended Deduct Insurance Lift Suspension. Costs from or Site Access Site Access Contractor's Denied Claims Lift Suspension. Unfreeze Grant Site Access payments NFA 4 Use of Procurement System Insurance Policies 4.1 Introduction The State Contracts Control Board has secured a Contract Works and Public Liability Insurance Policy with associated insurance broker services which is required, where possible, to be used to provide PAI for projects for agencies which are required to use the Procurement System. The policy may also be used by the following agencies which are not required to use the Procurement System: Department of Housing, Maritime Authority, and Traffic Authority, Sydney Catchment Authority, Sydney Harbour Foreshore Authority, and Sydney Olympic Park Authority. The policy will usually only be available to cover conventional building and minor engineering works and will not be available to for large scale or specialised civil engineering works. Works estimated below $100,000 may be covered by contractor's insurance instead of Procurement System insurance. The Procurement System Contract Works and Public Liability Insurance Policy is available on ProcurePoint or alternatively, . June 2009 Department of Finance, Services and Innovation Page 26