Procurement Practice Guide Construction insurance Figure 1 - Procedure Flowchart - Checking Insurance Page 1 Convention: arrows leaving decision diamonds downward mean 'yes', and to the right mean 'no' Insurance Check Major Aspects includes: WCI means Workers Compensation Insurance Insurer unsatisfactory  CAI means Contractors not as insured Contractor Proof Arranged Works and Type of insurance incorrect  Submitted Liability Insurance Not current  Amount grossly deficient compared to required  amount satisfactory proof Prevent Contractor Proof OK Work Commencing Work. Major Aspects Commenced Do not give access to Site Minor Aspects includes: Principal apparently not covered Subcontractors apparently not covered Contacty Contractor and discuss. Amount insufficient, but not grossly deficient Confirm by fax or e-mail allowing Exclusoins detrimental to the Princpal's Interest not more than 24 hours to submit Proof OK Work NOT WCI Defective CAI Defective Major Aspects commenced Notify Workcover Suspend Work Possible to retender Initiate Termination of Contract OK Freeze Payments Minor Aspects to Contractor Notice to Contractor: List deficiencies. Require satisfactory proof within 7 Site Access days ELSE Principal will Denied consider arranging insurance and recovering from Contractor Grant Access NFA See Subsequent Flowchart for follow up action Department of Finance, Services and Innovation June 2009 Page 25
Procurement Practice Guide Construction insurance Figure 1 - Procedure Flowchart - Checking Insurance Page 1 Insurance Check Convention: arrows leaving decision diamonds downward mean 'yes', and to the right mean 'no' WCI means Workers Major Aspects includes: Compensation Insurance  Insurer unsatisfactory CAI means Contractors Contractor not as insured Proof Arranged Works and  Type of insurance incorrect Submitted Liability Insurance  Not current  Amount grossly deficient compared to required amount Prevent Contractor Proof OK Work Commencing Work. Major Aspects Commenced Do not give access to Site Contacty Contractor and discuss. Confirm by fax or e-mail allowing not more than 24 hours to submit satisfactory proof 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 WCI Defective Work NOT CAI Defective Major Aspects commenced Notify Workcover Suspend Work Possible to retender Initiate Termination of Contract OK Freeze Payments Minor Aspects to Contractor Notice to Contractor: List deficiencies. Require Site Access satisfactory proof within 7 days ELSE Principal will Denied consider arranging insurance and recovering from Contractor Grant Access NFA See Subsequent Flowchart for follow up action June 2009 Department of Finance, Services and Innovation Page 25
construction_insurance_0.docx