Insurances and Warranties 保险及担保

Generally

  1. Insurer
  2. Agent
  3. Broker
  4. Insured
  5. Joint names
  6. Third parties
  7. Cross liability
  8. Waiver of subrogation
  9. Excess / deductible
  10. Surety / bondsman
  11. Guarantor
  12. Beneficiary

Insurances

  1. Contractors' all risks and third party liability insurances:
    • Materials damage
    • Third party liability
  2. Insurances of construction plant, temporary buildings and vehicles
  3. Insurances prior to delivery to site
  4. Employees' compensation insuraces
  5. Exclusion of self-employed persons and sole proprietors
  6. Professional liability insurances

Contractor Controlled Insurance Programme (CCIP)

  1. Insurance procured by the Contractor
  2. This is the usual approach
  3. Contractor taking up the administrative role of procuring the insurance
  4. Contractor may have an established department or experienced staff to do it
  5. Contractor may have long established insurance agents or brokers to do it
  6. Contractor in the best position to manage his own site safety / risks
  7. Contractor's good track records may lead to lower insurance premium
  8. The lower insurance premium would be reflected in the Contractor's tender price
  9. A desire to keep the premium low for the future would encourage keeping good track records for now

Owner Controlled Insurance Programme (OCIP)

  1. Insurance procured by the Owner (Employer)
  2. Mainly for mega projects involving a number of contracts interfacing with one another
  3. Best to avoid overlaps and gaps, split of responsibilities and mutual claims within the same mega project
  4. Also suitable when the Employer will have a number of projects coming up over the years
  5. Employer in better control in areas such as premium, insurance security and insurance coverage
  6. The limit and scope of indemnity may be higher and bigger than those could be procured by smaller contracts
  7. Excesses may be too high for smaller contractors within the same mega project
  8. Employer taking up the administrative role of procuring the insurance
  9. Employer may not have an established department or experienced staff to do it
  10. Employer may need to employ insurance consultants to give advice and do it
  11. It may require a long lead time from deciding to employ the insurance consultant to procurement of insurance

Bonds

  1. Surety bonds / Performance bonds:
    • Conditional
    • On-demand
    • Validity period
  2. Tender / bid bonds
  3. Advance payment bonds
  4. Retention bonds
  5. Payment guarantee bonds

Guarantees

  1. Joint venture guarantees
  2. Parent company guarantees

Warranties

  1. Form of Tender / Collateral Agreement by Nominated Sub-Contractor
  2. Quality warranties:
    • Waterproofing
    • Glass breakage