The updated AIA 2017 project contract documents include a new, comprehensive insurance exhibit that will allow for easier, more frequent updates as conditions in the insurance market change.
The insurance exhibit is intended to be used in conjunction with the A101–2017, A102–2017, and A103–2017 contract documents. One goal of the document’s drafters was to make it easier for users to transmit the insurance exhibit to the user’s insurance advisor or broker for evaluation and completion. AIA says the new insurance exhibit will allow changes to be made without having to revise the General Conditions document.
The insurance exhibit requires either the owner or the contractor to purchase property insurance written on a builder's risk “all-risks” completed value or equivalent policy form. It should be of an amount that can cover the total value of the entire project on a replacement cost basis. If the project is a remodeling of an existing structure or addition to one, the property insurance must also cover the existing structure against physical loss or damage on a replacement cost basis.
The insurance must be maintained through substantial completion and continued or replaced through the contractor’s one-year period for correction of the work. The insurance must include the interests of the owner, contractor, subcontractors, and sub-subcontractors, and the interests of mortgagees as loss payees.
In addition to the required property coverage, the agreement may include optional extended property insurances that the owner will purchase and maintain. This could include
Ordinance or Law Insurance; Expediting Cost Insurance; and Loss of Use, Business Interruption, and Delay in Completion Insurance.
For more information, visit: www.aiacontracts.org.
Related Stories
| Jun 28, 2012
Top building material executive urges building resilience in sustainability standards
A meeting of 1,000 business executives at the recent Rio+20 environmental conference featured a passionate plea to include building resilience in efforts to boost sustainability.
| Jun 28, 2012
Following spate of skyscraper balcony glass panel breakages, Ontario adopts code change
Ontario's housing minister announced new building code rules to help prevent glass panels from breaking off high-rise balconies during hot weather.
| Jun 28, 2012
Factory worker deaths in Italy raise questions on building codes after earthquakes
Italian officials are questioning seismic building standards and inspection procedures in the aftermath of two damaging earthquakes.
| Jun 21, 2012
Brazilian engineering/construction firm Odebrecht sues Florida over ban on companies doing business in Cuba
Odebrecht Construction Inc., a Brazilian engineering and construction company, is suing the State of Florida over a new law that bans governments from hiring companies with business ties to Cuba.
| Jun 21, 2012
String of shattered glass balcony panels prompts call for code reform in Ontario
Since last summer, glass balconies have shattered at 13 different buildings in Toronto.
| Jun 21, 2012
California adds window film to building code
California is the first state to add window film into its building code. Window film, a polymer material, offers cost-effective energy savings.
| Jun 21, 2012
New ISO standard to improve environmental management of concrete
A new ISO standard will help the construction industry better manage the environmental impacts of concrete.
| Jun 21, 2012
On net-zero projects, Building Teams will be held accountable for energy-efficiency performance
The building team will be held accountable for how net-zero energy buildings perform two, five, and maybe ten years after completion.