9/1/09 Issuance Section 00 73 16 Page 1 of 18 05/01/23 Revision

SECTION 00 73 16 - PROJECT INSURANCE REQUIREMENTS

PART 1 - GENERAL

1.1. DEFINTIONS

1.1.1. The term “OCIP”, as used throughout the Contract documents, shall refer to the Owner Controlled Insurance Program.

1.1.2. The term “OCIP Administrator”, as used throughout the Contract documents, shall refer to those employees of the firm that acts as the Owner’s insurance broker whose duties include, but are not limited to, confirming Contractor and Subcontractor enrollments, tracking monthly payroll reports, ordering final payroll audits, and reporting program costs to the Owner.

1.1.3. The term “OCIP Loss Control Representative”, as used throughout the Contract documents, shall refer to those employees and representatives of the firm that acts as the Owner’s Insurance broker and their sub-consultants who conduct Project site safety services, track insurance claims, and issue reports concerning Contractor management of safety and insurance claims.

1.1.4. The term “MWrap”, as used throughout the Contract documents, shall refer to the OCIP Administrator’s online portal which shall be utilized by Contractor and all enrolled Subcontractors to submit documentation relative to the OCIP.

1.2. PURPOSE

1.2.1. The purpose is to have an insurance program in place to address those risks associated with workers' compensation and employer's liability, general liability, and builder’s risk covering on site Work performed for the Owner on enrolled Projects. The Owner expects the majority of employers performing construction work under this Contract to enroll in the OCIP.

1.2.2. The Owner shall provide, at its own expense, specific insurance policies and coverage for the Contractor and for all enrolled Subcontractors on the Project, as described in Article 2.1 and 2.2 of this Section.

1.2.3. The Contractor and all enrolled Subcontractors shall provide all other insurance coverages, including those described in Articles 2.3 in this Section and as necessary or required to address all other risks for the Project.

1.2.4. The Contractor and all enrolled Subcontractors shall disregard those Articles of the Uniform General Conditions for University of Texas Building Construction Contracts (UGC) which conflict with this Section and shall recognize and agree to the requirements described in this Section.

1.2.5. Subcontractors of all tiers and all other parties to the Contract that are not enrolled shall furnish proof of insurance in accord with the UGC.

9/1/09 Issuance Section 00 73 16 Page 2 of 18

1.3. RELATED DOCUMENTS

1.3.1. In addition to specific references indicated herein, the Contractor's attention is directed, but not limited, to the following Sections and Documents, which include additional administrative requirements.

1.3.1.1. Current Edition of the Uniform General Conditions for University of Texas Building Construction Contracts (UGC);

1.3.1.2. Owner’s Special Conditions and;

1.3.1.3. 01 35 23 Project Safety Requirements.

PART 2 – PRODUCTS

2.1 INSURANCE COVERAGE FURNISHED BY OWNER (OCIP): The following insurance shall be furnished to the Contractor and all enrolled Subcontractors in separately issued coverage. A copy of the Project Insurance Manual is provided as Attachment A and the workers’ compensation and general liability OCIP policies are provided as Attachment B.

2.1.1 Workers' Compensation and Employer's Liability

2.1.1.1 Insurance carrier and contact information as provided in the Project Insurance

Manual.

2.1.1.2 Policies will be issued on an annual basis until Project completion.

2.1.1.3 Coverage A - Statutory Benefits: Liability imposed by the Workers' Compensation and/or Occupational Disease statute of the State of Texas and any other state or governmental authority having jurisdiction over or related to the Work performed on the Project.

2.1.1.4 Coverage B - Employer's Liability Limits:

2.1.1.4.1 $1,000,000.00 bodily injury per accident/employee;

2.1.1.4.2 $1,000,000.00 bodily injury per disease/employee;

2.1.1.4.3 $1,000,000.00 policy limit by disease.

2.1.1.5 Extensions of Coverage

2.1.1.5.1 Other States Endorsement(s)

2.1.1.5.2 Voluntary Compensation, may be added if exposure exists.

2.1.1.5.3 United States Longshoreman's & Harbor Worker's Act, may be added if needed.

9/1/09 Issuance Section 00 73 16 Page 3 of 18

2.1.1.5.4 Contractor will be provided with thirty (30) day notice of cancellation, except ten (10) days for non-payment of premium.

2.1.1.5.5 Amendment of Notice of Occurrence

2.1.2 Commercial General Liability (Primary and Excess)

2.1.2.1 Insurance carrier and contact information as provided in the Project Insurance

Manual.

2.1.2.2 Certificates of insurance will be issued naming each Contractor as a named insured upon enrollment.

2.1.2.3 Limits:

2.1.2.3.1 $2,000,000.00 Each Occurrence/all insured

2.1.2.3.2 $2,000,000.00 Personal Injury and Advertising Injury limit

2.1.2.3.3 $5,000,000.00 Completed Operations aggregate/all insured

2.1.2.3.4 $5,000,000.00 General Aggregate/all insured (Annual Aggregate Per

Project)

2.1.2.3.5 $10,000.00 Medical Expense Limit

2.1.2.3.6 $250,000.00 Fire Legal Liability

2.1.2.4 Policy Form:

2.1.2.4.1 Insurance Service Office "Occurrence" form – CG 00 01 (04/13)

2.1.2.5 Extensions of Coverage:

2.1.2.5.1 Incidental Medical Malpractice Liability

2.1.2.5.2 Completed Operations Liability coverage through the statute of repose or for a period of ten (10) years, whichever is less.

2.1.2.5.3 Waiver of Subrogation Endorsement, if required by written contract.

2.1.2.5.4 Contractor will be provided with sixty (60) day notice of cancellation, except ten (10) days for non-payment of premium.

2.1.2.5.5 Engineers, Architects or Surveyors Professional Liability Exclusions

9/1/09 Issuance Section 00 73 16 Page 4 of 18

2.1.2.5.6 Extended Ongoing Operations coverage for repair work for a period of two

(2) years after the Project completion date as defined in the policy.

2.1.2.6 Excess Liability Coverage:

2.1.2.6.1 As following form over Employer's Liability and Commercial General Liability, $200,000,000.00 of excess insurance has been obtained by the Owner for the benefit of the Owner, Contractor and all enrolled Subcontractors of every tier.

2.1.2.6.2 Insurance carrier and contact information as provided in the Project Insurance Manual.

2.1.3 Deductible:

2.1.3.1 Insurance policy deductibles under the OCIP program are paid by the Owner.

2.1.3.2 Issue of Certificates:

2.1.3.2.1 The OCIP Administrator and/or insurance carriers will issue separate certificates of insurance for workers' compensation and employers’ liability, general liability and excess liability to the Contractor and each enrolled Subcontractor. Copies of holder policies will be issued following receipt of written request from the OCIP Certificate holders to the OCIP Administrator and copied to the ODR.

2.2 INSURANCE COVERAGE FURNISHED BY OWNER (BUILDER’S RISK) -

COVERAGE AND DEDUCTIBLE DESCRIPTION:

2.2.1 The Owner intends to provide builder’s risk insurance for this project. Refer to the Agreement for additional information (Art. 17 in the CM & DB Agreements and Art.

11 in the CSP Agreement).

2.2.2 The Contractor and all Subcontractors shall disregard Article 5.2.2.1.5 through

5.2.2.1.5.10 and 10.5.2 of the Uniform General Conditions for UT System Construction Projects (UGC) and shall recognize and agree to the requirements described in this Section.

2.2.3 Owner will purchase and maintain in force builder’s risk insurance on the Work. The insurance will apply on a replacement cost basis with no coinsurance provision.

2.2.4 This insurance will name as insureds the Owner, the Contractor, and Subcontractors of all tiers in the Work but only to the extent of their financial interest in the Work.

2.2.5 Builder’s risk insurance will be on an “all risk” or equivalent policy form and will include insurance against fire and extended coverage perils, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, boiler and machinery/mechanical breakdown, testing and startup, and terrorism.

9/1/09 Issuance Section 00 73 16 Page 5 of 18

2.2.6 The builder’s risk insurance will be specific as to coverage and will be primary to any permanent insurance or self-insurance that may be maintained on the property by Owner.

2.2.7 The builder’s risk insurance will include a waiver of subrogation in favor of Owner, the Contractor, and Subcontractors of all tiers for insured work.

2.2.8 Upon request, Owner will provide to Contractor a certificate of insurance that provides evidence of builder’s risk insurance.

2.2.9 In the event of an insured loss caused by the action or inaction of Contractor, any Subcontractor of all tiers, or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable, Contractor will be responsible for, and reimburse to Owner, any applicable deductible under the builder’s risk insurance policy, which may be up to $50,000. Any costs associated with Contractor’s responsibility for the applicable deductible will not be considered cost of Work, and shall not be covered under the Owner’s OCIP.

2.2.10 Any loss insured under Owner’s builder’s risk insurance will be adjusted by the Owner as fiduciary and made payable to the Owner as fiduciary for the insureds, as their interests may appear. Contractor shall track and submit all claim expenses on a time and materials basis unless previously agreed to in writing by Owner. Any mark-up expenses included as part of the claim expenses will be subject to the percentage maximums specified in the initial agreement. The Contractor shall pay Subcontractors their just shares of insurance proceeds received by the Contractor, and by appropriate agreements, written where legally required for validity, shall require Subcontractors to make payments to their lower tier Subcontractors in a similar manner. Contractor will be required to provide a Release of Lien to Owner for any insurance proceeds received by the Contractor.

2.2.11 Owner’s builder’s risk insurance will not cover construction machinery, equipment and tools used in the performance of the work by Contractor’s or Subcontractor of any tier.

It will be the Contractor’s and Subcontractors’,’ of any tier, responsibility to insure their construction machinery, equipment and tools. Contractors and Subcontractors of any tier shall waive all rights of subrogation and recovery against and in favor of Owner for any loss, claim or expense, including, but not limited to, partial or total damage or theft.

2.2.12 Contractor shall assist Owner in obtaining and maintaining builder’s risk insurance by providing, in a timely manner, project-related information required by an insurance carrier when requested by the Owner or the Owner’s insurance broker.

2.2.13 Contractor, in coordination with University project manager, must report every claim within twenty-four (24) hours, or no later than the close of business on the next business day, after discovery of a loss or potential loss in accordance with the Builder’s Risk Claims Guide, which will be provided once coverage for the Project is bound. Failure to immediately report a loss or potential loss may result in the issuance of a reservation of rights letter by insurers which could prejudice any potential insurance related

9/1/09 Issuance Section 00 73 16 Page 6 of 18 recovery. Contractor may be liable for any damages that are not covered by insurance due to late notice of a loss or potential loss.

2.3 INSURANCE POLICIES AND AMOUNTS OF COVERAGE FURNISHED BY

CONTRACTOR AND ENROLLED SUBCONTRACTORS: All Project insurance not identified in Article 2.1 and 2.2 above shall be provided by the Contractor and all enrolled Subcontractors, except as otherwise noted below, to meet or exceed terms and amounts of coverage as per requirements of the UGC. Liability coverages shall include the following (as applicable to the Work):

2.3.1 Business Automobile Liability Owned/Leased

2.3.1.1 Covering all owned, non-owned, and hired vehicles on and off-site. Such insurance shall provide coverage not less than the standard ISO Comprehensive Automobile Liability policy (CA 00 01, CA 00 05, CA 00 12, CA 0020), with a combined single limit of not less than $1,000,000.

2.3.2 Equipment (covering total value of owned/rented equipment)

2.3.2.1 Provided on an “all risk” form, covering all risk of physical damage to tools and/or equipment provided for use at the Project Site by Contractor, whether owned, leased, rented, borrowed or used at the Project Site. Contractor waives its rights of recovery against Owner and each of its affiliates, officers, Board(s) of Directors, employees, representatives, consultants and agents as to any damage or loss which may occur to its tools and/or equipment to the extent covered by insurance. Contractor will ensure that the insurance company providing such coverage specifically agrees to this waiver. If uninsured, Contractor will hold harmless the aforementioned parties for loss or damage to its tools and/or equipment.

2.3.3 Workers' Compensation/Employers' Liability (for work not covered by the OCIP program)

2.3.3.1 Workers’ Compensation Insurance as required by statute in the state in which the Work will take place.

2.3.3.2 Employers’ Liability Insurance with limits of at least $1,000,000 bodily injury by accident; $1,000,000 bodily injury by disease; and $1,000,000 annual aggregate.

2.3.4 Off Site General Liability

2.3.4.1 Covering claims for personal injury, bodily injury and property damage arising out of the Work and in a form providing coverage no less broad than that of the current ISO Commercial General Liability Insurance policy (Occurrence Form, number CG 00 01). Such insurance shall provide coverage for: (i) all operations including the products-completed operations hazard, maintained from the date of commencement of the Work for ten (10) years after Final Completion of the

9/1/09 Issuance Section 00 73 16 Page 7 of 18 entire Work is achieved and acceptance of the final payment for the Work, or to the applicable Statute of Repose, whichever is less; (ii) damage to rented premises and (iii) premise ongoing operations, maintained from the date of commencement of the Work for two (2) years after Project completion as defined in the OCIP policy. This policy shall include blanket contractual liability.

2.3.4.2 The limits of such insurance shall not be less than:

2.3.4.2.1 $1,000,000 each Occurrence

2.3.4.2.2 $2,000,000 aggregate for Products-Completed Operations

2.3.4.2.3 $2,000,000 general aggregate limits, which shall apply separately and be reinstated annually

2.3.4.2.4 $1,000,000 for personal injury liability

2.3.5 Professional Liability Insurance (Errors and Omissions)

2.3.5.1 Insuring against professional errors and omissions arising from the Work

(including Services) on the Project. Such policy shall not contain any exclusions directed toward any types of projects, materials, services, or processes involved in the Work. The retroactive date for coverage will be no later than the commencement date of such design and/or performance of professional services as contemplated herein. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the commencement date, the Contractor must purchase an extended period coverage for a minimum of five (5) years after Final Completion of the Work, unless otherwise agreed to in writing with the Owner.

2.3.5.2 Contractor shall maintain professional liability insurance in an amount not less than the following:

2.3.5.2.1 For Contract Sum less than $25M. Contractor shall maintain professional liability insurance in an amount not less than $5,000,000 per occurrence and $5,000,000 in the annual aggregate.

2.3.5.2.2 For Contract Sum at or above $25M. Contractor shall maintain professional liability insurance in an amount not less than $10,000,000 per occurrence and $10,000,000 in the annual aggregate.

2.3.5.2.3 Contractor shall require professional liability coverage from Subcontractors of any tier providing professional services and shall establish minimum limits for such coverage.

2.3.6 Aircraft/Aviation Liability Insurance (as applicable)

9/1/09 Issuance Section 00 73 16 Page 8 of 18

2.3.6.1 If Contractor or Subcontractor of any tier employ the use of any un-manned aircraft or (drone) in the performance of the Work, they shall provide Aviation Hull and Liability insurance in an amount not less than $5,000,000 per occurrence; providing liability coverage for bodily injury, damage or to cargo, and damage to property of others, including while loading and unloading.

Insurance coverage shall provide Personal Injury liability insurance covering, libel, slander, violation of privacy, and copyright infringement claims related to drone operations.

2.3.6.2 In the event any manned fixed-wing or rotary aircraft are used in connection with this Agreement and/or in the execution of the work, Contractor shall provide a minimum of $10,000,000 of Aviation Liability Insurance per occurrence; providing liability coverage for bodily injury, damage or loss to cargo, and damage to property of others. Coverage must also include loading and unloading, and must be maintained with the following requirements: The Owner must be named as an "additional insured" and a waiver of hull damage must be provided in favor of the Owner.

2.3.6.3 If any aircraft is to be used to perform lifts at the Project site, a "slung cargo" endorsement must be included to cover the full replacement value of any equipment or material being lifted. All such lifts must be coordinated with the Owner for approval prior to lift execution.

2.3.7 Pollution Liability Insurance Including Asbestos Abatement

2.3.7.1 At all times during performance of work or operations at the Project Site, and for not less than 6 years after Final Completion of the Project, Contractor shall furnish occurrence-based pollution liability insurance with limits of $10,000,000 per occurrence, and $10,000,000 in the aggregate. Such insurance must include the duty to defend insureds and costs of defense may not be included in the limits of insurance. Such insurance shall include liability for bodily injury, property damage, and cleanup costs on or off the Project Site, which arise out of operations at the Project Site. Such insurance shall include coverage for ongoing and completed operations. Such insurance must include coverage for pollution incidents or events involving substances excluded from coverage by other insurance applicable to the Project Site, including, without limitation, commercial general liability insurance, auto insurance, professional insurance, and builder’s risk/property/inland marine insurance. This pollution liability insurance shall identify Owner and any other party to whom Contractor owes indemnity under this Agreement as additional insureds on a primary and non-contributory basis and waive subrogation in favor of such additional insureds. This insurance shall not exclude coverage for suits between insureds.

2.3.7.1.1 Contractor shall require pollution liability coverage with limits of $5,000,000 per claim from Subcontractors of any tier engaged in environmentally sensitive operations (such as the removal of asbestos, the removal/replacement of underground tanks or operations involving toxic chemicals, heavy metals and/or carcinogenic substances), and

9/1/09 Issuance Section 00 73 16 Page 9 of 18

Subcontractors shall submit proof of full coverage for such exposures subject requirements and Contractor shall obtain approval of the Owner prior to commencement of such operations. Subcontractors that are directly and actively involved in the performance of work associated with environmentally sensitive operations will be excluded from the OCIP. If Pollution Coverage is written on a Claims Made basis, the policy shall include an extended reporting period of five years.

2.3.8 Maritime Insurance - Hull, Protection and Indemnity (including crew) - $10,000,000

(as applicable)

2.3.8.1 In the event any watercraft is used in connection with the Project, the Contractor and/or involved Subcontractor shall submit proof of a “Hull and Protection and Indemnity Policy”. The amount of insurance on the Hull shall be sufficient to cover the watercraft, its equipment and all additional equipment aboard during the time it is in use on the Project. Protection and Indemnity shall have limits of liability of no less than $10,000,000 including coverage of the construction activity for which the watercraft is used. Master and Crew coverage shall include General Maritime Liability, Jones Act and Wages, Transportation, Maintenance and Care.

2.3.9 Waiver of Subrogation

2.3.9.1 To meet the requirements of Article 2.3, all policies shall contain a Waiver of

Subrogation and Contractor and Subcontractors of every tier waives its right of recovery in favor of the Board of Regents of The University of Texas System, their respective agents, consultants, servants and employees of each and all other indemnitees.

2.3.10 Names of Additional Insured

2.3.10.1 To meet the requirements of Article 2.3, for each of the preceding coverages, excepting Workers’ Compensation and Professional Liability, all policies shall endorse the Board of Regents of The University of Texas System, its respective agents, consultants, servants and employees of each and all other indemnitees as "Additional Insured".

2.3.11 Waiver of Property Damage and Right of Recovery

2.3.11.1 To meet the requirements of the UGC, all policies shall contain written agreement to waive the Contractor’s and each enrolled Subcontractor’s right for recovery of physical damage or loss to their respective properties against each other for damages, losses or claims arising out of or in connection with this Project and this Contract. This written waiver shall also extend to the benefit of the Board of Regents of The University of Texas System, its respective agents, consultants, servants and employees. This waiver of the right of recovery for property damage shall be binding upon any property (real or personal), automobile, aircraft, watercraft, tools or equipment insurer as

9/1/09 Issuance Section 00 73 16 Page 10 of 18 respects any subrogation rights that such insurer may possess by virtue of any payments of damage or loss.

2.4 CONTRACTOR ASSURANCE OF SAVINGS

2.4.1 Contractor and all enrolled Subcontractors shall agree, warrant, and represent that any proposal(s) for Construction services exclude all costs associated with Owner furnished insurance coverage as specified in Article 2.1 and 2.2 of this Section.

2.4.2 Contractor and all enrolled Subcontractors shall agree to be subject to audits for payroll, work hours and insurance costs by the respective insurance companies providing coverage under the OCIP. The purpose of such audits is to validate insurance premiums and compare wages and other OCIP costs. Contractor and all enrolled Subcontractors shall agree to furnish payroll and other information in the forms and formats as requested by the OCIP Administrator in the ROCIP Project Insurance Manual and as required via MWrap. Further, Contractor and all enrolled Subcontractors agree to cooperate fully with any and all audits by supplying the required information in the manner required and as expeditiously as possible. If proprietary information is involved, Contractor and all enrolled Subcontractors will be allowed to guard the material while it is being reviewed by the Owner or any of its agents.

2.4.3 Contractor and enrolled Subcontractors agree, warrant, and represent that all Changes to the Contract as described in the UGC, shall exclude any cost for the Insurance Coverage Furnished by Owner.

2.5 EXCLUSION FROM OCIP ENROLLMENT: Prior to commencement of any work at the

Project site and until completion of Work, Subcontractors that are allowed by the Owner to be excluded from enrollment in the OCIP shall maintain, at their sole expense, insurance coverage as per the UGC and Article 2.3 of this Section.

2.5.1 Automatic Exclusion

2.5.1.1 Temporary workforce agencies (unless approved per Article 3.1.5), consultants, vendors, suppliers, material dealers, and delivery service companies, haulers, hazardous waste removal contractors, manufactures or fabricators that do not install their product are excluded from enrollment in the OCIP. The Contractor shall confirm that the companies in these categories produce copies of proof of proper insurance for the risk exposures that each one will create or experience while on the Project.

2.5.1.2 Before performing any work, the Subcontractor shall provide to the Contractor and the OCIP Administrator, a Certificate of Insurance that matches the requirements described in the UGC and 2.3 above.

2.5.1.3 Excluded Subcontractor(s) shall adhere to all Project Safety Requirements and take all necessary precautions to protect all other persons and property in the vicinity from the risk exposures that the excluded Subcontractor may create while performing work on the Project.

9/1/09 Issuance Section 00 73 16 Page 11 of 18

2.5.2 Discretionary Exclusion

2.5.2.1 Contractor may issue a written request on behalf of a Subcontractor of any tier for a discretionary exclusion from enrollment in the OCIP. To be considered, the Subcontractor must be bound to a scope of Work that anticipates a total labor value of less than $5,000.00. A certificate of insurance with coverage amounts and language as required by the UGC and Section 2.3 above shall be furnished to the OCIP Administrator. The OCIP Administrator, in concurrence with the ODR, will review issues such as prior enrollment, scope of work and associated risk. Based on this evaluation, exclusion may or may not be granted.

2.5.3 Excluded Subcontractors

2.5.3.1 Excluded Subcontractors shall submit certificates of insurance for Owner acceptance for adequacy of protection prior to performing any Work on the Project. Each Certificate must have a thirty (30) day prior written notice of cancellation showing the Board of Regents of The University of Texas System as the Certificate Holder.

2.5.3.2 In the event of failure of the excluded Subcontractor to furnish and maintain said insurance and to furnish satisfactory evidence thereof, the Owner and/or Contractor shall have the right to take out and maintain coverage for all parties on behalf of the excluded Subcontractor who agrees to furnish all necessary information to bind such coverage and to allow deduction for the cost thereof immediately upon presentation of an invoice.

2.6 GOVERNING CONDITIONS

2.6.1 The Owner’s payment of premiums for the insurance described in this section shall in no way be interpreted as relieving the Contractor and/or any enrolled Subcontractor of any responsibility of liability under this agreement.

2.6.2 The amount and types of insurance coverage required herein shall not be construed to be a limitation of liability on the part of the Contractor or any of its Subcontractors.

2.7 ELECTIVE INSURANCE FURNISHED BY A CONTRACTOR

2.7.1 Contractor and any enrolled Subcontractor may elect to maintain a supplementary insurance policy(ies) to extend the coverage terms and/or conditions that are described in this Section. The cost of any insurance policy(ies) shall be at the sole expense of the Contractor and any enrolled Subcontractor, and shall not be reimbursed by the Owner.

PART 3 – EXECUTION

3.1 OCIP ENROLLMENT PROCESS

9/1/09 Issuance Section 00 73 16 Page 12 of 18

3.1.1 Contractor shall provide all Subcontractors with the information in this Project Insurance Requirements, not later than the 10th day before the Contractor enters into a contract with the Subcontractor. Contractor shall have the sole responsibility to receive acknowledgement of receipt of Project Insurance Requirements from each Subcontractor prior to their enrollment in the OCIP.

3.1.2 Contractor and all enrolled Subcontractors shall submit all insurance, underwriting, payroll, rating or loss history information as required by the Owner to the OCIP Administrator for enrollment and issuance of OCIP certificates of insurance via MWrap. The OCIP Administrator shall provide MWrap Contractor Portal Instructions which shall guide Contractor and its Subcontractors in accessing and using MWrap.

Online forms, and other requested documentation, shall be completed within ten (10) working days of contract award unless work under the contract is commencing within this ten (10) day period which shall cause the Subcontractor to expedite his enrollment via MWrap. No contractor shall perform any work on the Project until it is recognized as having been enrolled in or excluded from the OCIP by the OCIP Administrator.

3.1.3 Contractor and enrolling Subcontractors shall provide all information necessary to bind coverage under the OCIP. OCIP Administrator will notify the Contractor and respective Subcontractor when an application has been approved and coverage afforded.

3.1.4 OCIP enrollment will not be complete and work shall not commence until the OCIP Administrator has issued the OCIP certificates of insurance to the applicant.

3.1.5 The OCIP covers enrolled General Contractor(s) and Subcontractor(s) of any tier who perform operations on the Project site and such other persons or entities as Owner may designate as enrolled parties, who perform direct labor on the Project site or sites incidental to the Work are considered enrolled parties. Temporary labor services and leasing companies are to be included as Subcontractor(s) only with the written approval of Owner.

3.1.6 Participation in the OCIP is mandatory for ALL Contractors and their Subcontractors of any tier unless excluded by Owner or as outlined in Article 2.5. However, enrollment is not automatic. Work will not be permitted at the Project site until the Contractor and Subcontractor, regardless of tier, is properly enrolled in the OCIP.

Contractor(s) and Subcontractor(s) of any tier must have submitted all necessary enrollment forms and have been accepted into the OCIP as evidenced by a confirmation of enrollment letter and issuance of OCIP certificates of insurance.

3.1.7 OCIP Coverage applies only to work performed at the Project site by the enrolled parties. Enrolled parties must provide their own insurance for off-site activities including, but not limited to, work at their permanent shops, fabrication or manufacturing of building products, materials or supplies.

3.2 PROJECT ADMINISTRATION AND FORMS

9/1/09 Issuance Section 00 73 16 Page 13 of 18

3.2.1 The Contractor shall be responsible to manage and ensure the transmission of all administrative and safety documentation, including subcontractor insurance and payroll information, as required and directed by the Owner.

3.2.2 The Contractor and all enrolled Subcontractors shall include those administrative costs in the Construction Contract Limit (CCL) or Guaranteed Maximum Price (GMP) proposal which are necessary to properly comply with the Contract.

3.3 OCIP DOCUMENTATION COMPLIANCE

3.3.1 Contractor will be held accountable for all costs and schedule impacts associated with failure by the Contractor and/or any Subcontractor to submit documentation and forms as directed by the Owner and/or the OCIP Administrator, as described in Article 3.1 and 3.2 and in the ROCIP Program Manual.

3.3.2 Persistent failures by the Contractor and/or any enrolled Subcontractors may result in a "stop work" order by the Owner. The Contractor will be held accountable for all costs and schedule impacts associated with this action.

3.3.3 Payroll Reporting—for insurance and program purposes, each contractor agrees to keep and maintain an accurate record of payroll for operations at the Project site.

Enrolled Subcontractors agree to furnish full and accurate payroll information and data via MWrap and in accordance with the requirements of the OCIP program and as detailed in the Project Insurance Manual.

Payroll must be submitted by Contractor and all tiers of enrolled Subcontractors via MWrap at each of the following occurrences:

• Monthly on or by the 10th of each month, following the end of the previous month.

• Final: Due upon completion of sublet work or at Project completion, whichever occurs first.

The payroll will identify the Project site work-hours and payroll. Only the payroll of the Contractor and all enrolled Subcontractors’ employees who perform duties at the Project site should be included on the payroll report.

Enrolled Subcontractors who did not perform any work at the Project site in a given month must still submit a payroll form via MWrap showing zero (0) payroll and applicable completed contract value to date (if applicable) for the month.

Contractors and enrolled Subcontractors with payroll reporting delinquent beyond 30 days will receive a payroll reminder letter via MWrap on the 15th of the following month requesting submission of all delinquent reports in accordance with each contract under coverage.

General Contractors must obtain a ROCIP Payment Form from the OCIP Administrator to submit with their Payment Application each month to certify that all payroll as well as all certificates for insurance policies provided by

9/1/09 Issuance Section 00 73 16 Page 14 of 18

Contractor as described in Section 2.3 (from all tier Subcontractors) are up to date on their project.

The OCIP insurer is required to file experience data for each enrolled party with the appropriate rating authority. The loss experience of the Contractor and enrolled subcontractors for work performed on the Project site may affect the experience modification factor of that Contractor or enrolled subcontractor.

Contractor and enrolled subcontractors should exclude payrolls reported for work performed under the OCIP from payrolls submitted to their primary insurer to avoid duplicate premium charges. The insurance policies written by your primary insurance provider may need to be endorsed or modified to assist in this process.

3.3.4 Close Out Procedures –

3.3.4.1 Upon completion of work, all enrolled contractors and subcontractors will submit a close out via the MWrap contractor portal that consists of their last date on site, their final contract value and confirmation of final payroll and man-hours. This must be completed prior to submitting request for release of final payment or retainage.

3.3.5 Incident Notification and Claims Management:

3.3.5.1 Workers’ Compensation claims are to be initiated immediately by the employer, and shall always be within twenty-four (24) hours or one (1) work day of the occurrence, or immediately upon acknowledgement of an injury from an employee, whichever is later. The mechanism for initiating such a claim shall be the completion and transmittal of a “First Report of Injury” form (DWC Form 1) to the OCIP insurance carrier. Late reporting has been proven to substantially escalate the cost of claims and may therefore result in action on the part of the Owner to recover these avoidable costs from the Contractor by applying the following charges:

3.3.5.1.1 $1,500.00 for reports that are 2 – 3 workdays beyond the date of occurrence

3.3.5.1.2 $5,000.00 for reports that are 4 – 30 workdays beyond the date of occurrence

3.3.5.1.3 $7,500.00 for reports that are 31 – 60 workdays beyond the date of

3.3.5.1.4 $10,000.00 for reports that are more than 60 days beyond the date of

3.3.5.2 General Liability claims are to be initiated immediately and shall be within twenty-four (24) hours or one (1) workday of the occurrence, whichever is later.

The mechanism for initiating such a claim shall be the completion and transmittal of a Notice of Occurrence / Claim form to the designated OCIP

9/1/09 Issuance Section 00 73 16 Page 15 of 18

Administrator representative or as directed by the Owner. Late reporting has been proven to substantially escalate the cost of claims and may therefore result in action on the part of the Owner to recover these avoidable costs from the Contractor by applying the following charges:

3.3.5.2.1 $1,500.00 for reports that are 2 – 3 workdays beyond the date of occurrence

3.3.5.2.2 $5,000.00 for reports that are more than 3 workdays beyond the date of

3.3.5.3 General Liability – Property Damage:

3.3.5.3.1 If the Owner determines that the Contractor failed to take proper precautions prior to an incident that results in a property damage claim against the General Liability coverage, the Owner may recover from the Contractor the first $5,000.00 of incurred cost against the claim.

3.4 WORKERS’ COMPENSATION PROCEEDINGS

3.4.1 The ODR may require the Contractor and/or the enrolled employer of an injured worker to provide knowledgeable representation at legally binding proceedings scheduled by the Texas Department of Insurance. The proceedings that affect the amount of compensation are “Benefit Review Conferences” and “Contested Case Hearings”.

Failure to provide such representation may result in Owner issuance of a recovery charge to the Contractor of $5,000.00 per proceeding.

3.5 EMPLOYEE RETURN TO WORK PLAN

3.5.1 The Contractor and every Subcontractor shall develop an Employee Return to Work (“Light Duty”) Plan that provides a responsible commitment to restoring medically restricted workers back to employment as soon as a physician assigns limits. The Plan shall include the following elements:

3.5.1.1 A written policy with signed acknowledgement from a Company Executive that declares intent to provide proactive safety prevention measures, immediate and appropriate medical care, aggressive claims management, and rapid return to work as critical elements of a successful safety and loss control program.

3.5.1.2 Job descriptions that clearly identify and explain essential job functions and tasks required for each position. Minimum physical limits, motor skills, and endurance times shall be included.

3.5.1.3 Procedures and responsibilities shall help physicians understand the Plan, the employee’s typical work assignments and activities, and available alternate assignments.

9/1/09 Issuance Section 00 73 16 Page 16 of 18

3.5.1.4 A commitment to the continuous employee education about the Plan, shall include monitoring of assignments, record keeping, and communications with physician(s) and injured worker(s), and tracking of compensation reports.

3.5.1.5 Full compliance with the Americans with Disabilities Act, Family Medical

Leave Act, the Texas Worker’s Compensation Act, and any other State or federal law.

3.5.2 Employment for Workers with Medical Restrictions (“Return to Work” or “Light

Duty” policy):

3.5.2.1 Either the absence of a written policy or the presence of a written policy that lacks a responsible commitment to restoring medically restricted workers to gainful employment (considered to be at a similar work schedule and wage that was in effect at the time of the injury) may result in an assessment of a recovery charge by the Owner to the Contractor of $5,000.00 per finding.

3.5.2.2 If the Owner determines that the Contractor or any enrolled Subcontractor deliberately obstructs a reasonable request that is intended to restore an injured worker to gainful employment, the Owner will assess a recovery charge against the Contractor of $5,000.00 per claim per month until the worker is returned to employment. If the Contractor or enrolled Subcontractor believes that the medical restrictions prohibit gainful employment, the Contractor will be required to prove this to the Owner’s satisfaction.

3.5.2.3 Failure to pass or refusal to take any substance impairment screening will result in Owner requirement that the involved worker(s) be removed from the Project and not be allowed to work on any other Owner Project.

3.5.2.4 The cost of all post-accident screening is the responsibility of the injured worker’s employer.

3.6 EXPIRATION AND AVAILABILITY OF OCIP COVERAGE

3.6.1 Termination of OCIP Coverage

3.6.1.1 Except for Extended Completed Operations coverage or Extended Ongoing Operations coverage for Repair Work, the General Liability and Excess Liability insurance furnished by the Owner under this agreement will cease for the Contractor and each enrolled Subcontractor at the earlier of OCIP program expiration or when work called for by the enrolled Contractor has been completed as defined in the OCIP policy. Workers’ compensation coverage will continue until the earlier of OCIP program expiration or when work called for in the Contract has been accepted or completed as defined in the OCIP policy.

3.6.2 Availability and Cancellation

9/1/09 Issuance Section 00 73 16 Page 17 of 18

3.6.2.1 Subject to market availability, all insurance specified herein shall be maintained continuously until the scheduled completion/termination date. All insurance shall provide for Owner to take occupancy of the Work or any part thereof during the term of said insurance. If coverage is diminished or cannot be renewed due to market constraints and limitations, all insured Contractors will be given sixty (60) day notice of cancellation or non-renewal. Upon termination of the Owner-provided insurance, the Contractor and all enrolled Subcontractors shall be responsible for furnishing all insurance as described in the UGC and Article 2.3 above.

3.6.2.2 Insurance Coverage Furnished by Owner may also be discontinued in the event the Project is substantially delayed for an extended period of time, or the Project is permanently terminated for any cause.

END OF SECTION 00 73 16

9/1/09 Issuance Section 00 73 16 Page 18 of 18

REVISION LOG

The following is provided for convenience to the Owner, Architect/Engineer and Contractor to track changes between annual document issuances and is not to be considered by any party to be contractual or 100% complete.

Date Paragraph Revised

2/1/08 3.4 - Revised Texas Worker’s Compensation Commission to Texas Department of Insurance.

5/1/08 3.5.2 – Relocate Employment for Workers with Medical Restrictions (“Return to Work” or “Light Duty” policy)

10/1/08 Title changed to “OCIP”, 2.1.2.3.2 – Change “3 years” to “10 years”,

2.1.2.4.1 change “$25 M” extended coverage to “$50 M”

9/1/09 Corrected spelling of “SUBCONTRACTOR” in Article 2.2 and revised all Article 3.6 subsections.

9/1/12 Clarifications of UGS abbreviation, exemption and drug testing clarifications and misc. clarifications.

12/18/15 Compliance with SB 1081, attachment of the Project Insurance Manual template, policies, inclusion of Master Builders Risk language, and misc.

revisions to align with current OCIP requirements.

10/10/16 Replaced pages 57 through 95 with the current Workers Comp renewal policy. Corrected several misc. typos.

pac

12/12/16 Replaced Attachment A with current issue from ORM. pac

8/1/17 Updated ROCIP with Phase VII changes and MWrap administrative process.

Builder’s Risk claims expenses process updated in 2.2.10.

6/1/18 Formalized requirement to immediately report builder’s risk claims in Section 2.2.13.

12/15/22

Updated ROCIP with Phase VIII changes and general changes throughout the document to emphasize intent and clarify owner-provided coverage scope, Contractor and Subcontractor coverage requirements, and processes and procedures. Corrected several miscellaneous typos and section language.

05/01/23 Revised Contractor and Subcontractor coverage requirements in Section 2.3.

ROCIP VIII Program Manual December 15, 2022

Marsh i

Contents Introduction & Program Overview

ROCIP Directory

Project Definitions

Overview of ROCIP Insurance Program

Summary Description of ROCIP Coverage

Provisions

Contractor/Subcontractor Required Coverage

Insurance Requirements of Excluded Contractors

Enrolled Contractor Responsibilities

Claims Reporting Procedures

Workers’ Compensation Posting Requirements

Liability & Property Claim Reporting

Professional Liability Claim Reporting

Automobile Incident and Claim Reporting

Other Details

Other Claim Related Services

Questions Commonly Asked About A ROCIP

The University of Texas CIP Manual

Marsh ii

Online Portal Instructions

Sample Certificate of Insurance

Return to Work Policy

Sample ROCIP Forms

Claim Reference Guide

Marsh 1

The University of Texas System has elected to purchase and administer a Rolling Owner Controlled Insurance Program (“ROCIP”) for the [PROJECT NAME] Project.

The ROCIP is a single insurance program that provides general liability, excess liability, workers’ compensation, and employer’s liability coverage for The University of Texas System, Enrolled Parties, eligible employees and other designated parties for work performed at the PROJECT SITE. Certain parties and their employees are excluded from the ROCIP as identified in this Manual.

Enrolled and Excluded contractors working at the Project Site are subject to respective provisions outlined in this manual.

Participation in the ROCIP is mandatory for all Contractors and Subcontractors of all tiers unless excluded from the ROCIP. Enrollment is not automatic. Eligible ROCIP parties will enroll in the ROCIP on a paperless basis using the MWrap Contractor Portal.

The University of Texas System will pay insurance premiums for the ROCIP policies described in this Manual. Each Enrolled Party, of any tier, is responsible to notify their company’s agent, broker, and insurers of their participation in the ROCIP program.

This manual:

• Describes the general structure of the ROCIP;

• Identifies the responsibilities of the various parties involved in the project;

• Provides a basic description of ROCIP coverage;

• Describes audit and administrative procedures;

• Provides an Explanation of Terms (see Section 3); and

• Is updated as deemed necessary by The University of Texas System.

This manual does not:

• Provide coverage interpretations;

• Provide complete information about coverage; or

• Provide answers to specific claim questions.

Section One

Introduction & Program Overview

Marsh 2

The ROCIP policies apply only to work performed at the Project Site by Enrolled Parties.

Enrolled Parties must provide their own insurance for off-site activities including, but not limited to, work at their permanent shops, fabrication or manufacturing of building products, materials or supplies.

The provisions herein for the ROCIP shall in no way be interpreted as relieving the Enrolled Parties of any responsibility under their contract with this program. All Enrolled Parties will be required to carry certain other insurance as outlined in contract documents (Article 5 Bonds and Insurance of the UGC, and 00 73 16 Project Insurance Requirements) and may carry, at their own expense, any additional insurance they deem necessary. The University of Texas System purchased insurance in no way relieves any party of their contractual obligations.

Refer questions concerning the ROCIP insurance policies to the ROCIP Manager or the ROCIP Administrator, as indicated in the directory (Section 2).

Marsh 3

Contact / e-mail Telephone

ROCIP ADMINISTRATION/INSURANCE BROKER

Marsh USA Inc.

1717 Main Street, Ste 4400 Dallas, TX 75201

• ROCIP Dedicated Email UT.ROCIP@Marsh.com

• ROCIP Administrator Marsha Shotts / UT.ROCIP@Marsh.com 214 303 8072

• ROCIP Administrator Luella Norman / UT.ROCIP@Marsh.com 214 303 8208

• ROCIP Manager Susan Baggett / Susan.Baggett@Marsh.com

214 303 8209

• ROCIP Manager Antoinette Thompson / Antoinette.Thompson@Marsh.com

713 276 8524

• ROCIP Claims Advisor Kevin McClelland / Kevin.McClelland@Marsh.com

214 926 5983 214-303-8330

• ROCIP Safety Manager Tod Hollis / tod.hollis@Marsh.com 214 303 8632

• Client Manager David DeLaRue / David.DeLaRue@Marsh.com

469 346 1982

The University of Texas System

• Risk & Insurance Analyst Lisa Gunkel / lgunkel@utsystem.edu 512 499 4534

• Claims Coordinator John Santos / jsantos@utsystem.edu 512 579 5029

• Construction Safety and Risk Management Coordinator

Mark Schaeffer / mschaeffer@utsystem.edu

409 781 0069

GENERAL CONTRACTOR / CONSTRUCTION MANAGER

Jobsite Office Address:

[INSERT JOBSITE OFFICE ADDRESS]

• Project Executive

• Project Manager

• Administrator

• Safety Coordinator

ROCIP INSURANCE COMPANY – Zurich North American

• Claim Reporting (WC) Toll free claims reporting is:

www.zurichna.com

877 928 4531

• Claim Reporting (GL) Kevin McClelland / Kevin.McClelland@Marsh.com

214 926 5983 214-303-8330

Section Two

ROCIP Directory mailto:UT.ROCIP@Marsh.com mailto:UT.ROCIP@Marsh.com mailto:UT.ROCIP@Marsh.com mailto:Susan.Baggett@Marsh.com mailto:Antoinette.Thompson@Marsh.com mailto:Kevin.McClelland@Marsh.com mailto:tod.hollis@Marsh.com mailto:David.DeLaRue@Marsh.com mailto:lgunkel@utsystem.edu mailto:jsantos@utsystem.edu mailto:mschaeffer@utsystem.edu http://www.zurichna.com/ mailto:Kevin.McClelland@Marsh.com

Marsh 4

Meanings of Words and Phrases

The following list of words and phrases include an explanation of meanings. However, they may be defined differently in other documents, and in that case, the definitions given in such documents will take precedence with respect to such documents.

Certificate of Insurance

An Accord document providing evidence of the existence of coverage for a particular insurance policy or policies.

Contract

A written agreement between The University of Texas System and Contractor(s) for specific Work OR an agreement between Contractor(s) and any tier of Subcontractor.

Contractor

The person, firm, joint venture, corporation or other party that has entered into a Contract with The University of Texas System to perform Work at the Project Site. The overall project Contractor is also referred to as “construction manager.” A Contractor is the party to a contract who is charged with the total construction and who enters into subcontracts for such work as electrical, plumbing, etc.

Contractor Enrollment

Enrollment is the beginning of a number of documents that must be completed for the Contractor to participate in the ROCIP. The documentation is defined at a Project level and will vary from Project to Project. Generally, the package will include contact information, location of records, general information regarding the Contractor and loss control program and may include an insurance premium worksheet.

Contract Insurance Cost

Cost of insurance identified for the contract and subsequent change orders.