OCIP vs. CCIP: Presented by: Catrina Gilbert, IAP Assistant Vice President, Risk Management, Dallas Fort Worth Airport (DFW)

Transcription

1 OCIP vs. CCIP: Which is a Better Choice for an Airport? Presented by: Catrina Gilbert, IAP Assistant Vice President, Risk Management, Dallas Fort Worth Airport (DFW) Catherine Wells, CPCU, ARM, CRIS, MBA President, Construction Risk Management, Bickmore Moderated by: Charles Giesler, CSP, CEM Safety, Environmental Risk, and Fleet Manager, Clark County Department of Aviation (LAS)

2 Agenda Introductions OCIP: Airport Benefits & Challenges CCIP: Airport Benefits & Challenges OCIP Airport Examples CCIP Airport Examples Airport P3 Example Airport Risk Financing Considerations Audience Participation

3 OCIP Overview WHAT IS IT? Single insurance program provided to the project by the Owner WHAT DOES OCIP COVER? Workers Compensation, Employer s Liability, General Liability, and Excess Liability Insurance. Additional owner provided coverages: Builder s Risk, Contractor s Pollution Liability, Owner s Protective Professional Indemnity Insurance, and Excess Auto (Non-Airside & Airside) WHO DOES OCIP COVER? Owner, General Contractors, and all Enrolled Subcontractors of Any Tier WHO DOES OCIP NOT COVER? Off-site Activities, Material Hauler(s), contract haulers or truckers, architects/engineers, consultants, manufacturing representatives, vendors, suppliers, material dealers, guard services, janitorial services, food services, or others merely making deliveries to or pickups from the Jobsite are excluded from the OCIP coverage. In addition, EIFS Contractors, asbestos abatement or other hazardous material Contractors, demolition or blasting Contractors.

4 OCIP Structure With an OCIP, the Owner purchases the Workers Compensation, General Liability, Builders Risk, Excess Liability, and Contractors Pollution Liability coverage for the GC and Subcontractors on the job site usually with broader coverage and higher limits. This can provide: Control Cost Reduction Competitive Advantage Higher Coverage Limits Consistent Coverage Across Contractors Coordinated Claims Minimize Cross Litigation/Subrogation Allows for a Larger Qualified Contractor Pool.

5 Major Roles and Responsibilities Owner Broker/Administrator Insurer GC Assists in Marketing and Program Implementation Sponsors Program Executes Program Agreements Controls Program Cash Flow Issues Premium and Claims Payments Provides Claims Payment Authority Participates in Program Meetings Assists in Marketing Information Incorporates OCIP Provisions in Subcontracts Provides Subcontractor Orientation, Safety Enforcement and Training Provides Assistance with Claims Management and Investigation Provides Project Reports (i.e. Sub NOA s, CO Logs, Sub Close-Outs) Participates in Program Meetings Designs and Markets Program Provides OCIP Contractual Language Manages Program Administration and Provides Education Contractor Enrollment Provide OCIP status reports Analyzes and Verifies Insurance Credits Certificate Tracking Claims Management Organizes/Participates in Program Meetings Provides Underwriting Provides Insurance Coverage Issues Master and Subcontractor Insurance Policies Provides Premium and Payroll Audits Provides Loss Control Services and Training Defends, Investigates, Manages, Adjusts, and Pays Claims Participates in Program Meetings 5

6 OCIP Benefits to Airports One Single Consolidated Insurance Program Construction Risk Coordinates with Operations Risk Airports Have are Strong Owners from Elevated Operational Risks Large Capital Projects - Potential to Save Money / Avoid Cost Facilitates Minority Participation

7 OCIP Challenges to Airports Airport Risk Management Lack of OCIP Experience Airport Management Lack of Long Term Commitment Lack of Proper Vetting (up front) and Evaluation (at end) Assuming OCIP Automatically Saves Money Long Term Involvement in Claims Settlement and Close Out

8 OCIP Airport Example DFW Airport

9 Main Terminal Modernization Tampa International Airport Construction Type: Renovation Year Completed: Procurement: Construction Cost: Builder: 2014 Design/Build $23 Million Hardin Const. Co., LLC 9

10 Airside F Additions and Renovations Tampa International Airport Construction Type: Renovation/Expansion Year Completed: Procurement: Construction Cost: Builder: 2013 Design/Build $23 Million HC Beck, LTD 10

11 Hartsfield Jackson Atlanta International Airport Central Passenger Terminal Complex Modernization North/South Canopy $2.5B Estimated Project Purpose: Upgrade and modernize the Domestic Terminal and concourses T, A,B,C & D to a new, fresh, modern look and feel. KKey Projects CPTC Modernization Concourse T North Extension AGTS (Plane Train) Turnback Relocation Concourse G Hold Room This Project: Will include exterior and interior renovations (Look and feel/technology, etc.) Will unify both terminals and enhance the customer experience and service throughout the airport complex

12 Hartsfield Jackson Atlanta International Airport Parking Project $1.6B Estimated Project Key Project ATL West Parking Deck Sullivan Road Park-Ride Lot Domestic Garage Enabling Work South Garage North Garage Purpose To construct replacement parking to offset impacts due to expansion. This Project: Construct 6000-space parking, exit ramps and access roadways

13 CCIP Benefits to Airports Sophisticated Contractor with Sophisticated CCIP is Powerful Contractor Responsible for Site & Risks Provides Tool to Finance Risk Can Reduce Overall Project Costs Eliminates Long Term Involvement & Liability of Airport Might be Best Risk Finance Choice for Small/Medium Size Airport

14 CCIP Challenges to Airports Coverage Can be Challenging Change Contractors Mid Project, Lose CCIP Mark Up to Airport Can be High Contractor Pockets the Savings Additional Insured Coverage to Airport Can Be Limited

15 CCIP Airport Example Los Angeles International Airport

16 P3 Airport Example

17 Airport Risk Financing Considerations Airport Long Term Commitment Depth and Experience of Contractor s CCIP Savings / Cost Avoidance Potential Construction Project vs. Construction Program Small Business Participation Initiatives Airport Risk Management Department Staffing & Ability to Outsource Off Site vs. On Site Payroll for Project

18 Airport Risk Financing Considerations (Con t) Airport Stability of Funding Capital Improvement Projects Project Scope, Type, and Size Project Delivery Method Prime Contractor % Self Perform Airport Risk Management Knowledge & Experience Regulatory Environment Contractor Market Availability

19 Audience Participation