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Sunday, 26 February 2017

Principal-controlled Insurance Program

We have a principal-controlled insurance program in place for all publicly-tendered construction contracts

Insurance program

The PTA Principal Controlled Insurance Program was implemented on September 1, 2011. Previous arrangements required contractors to obtain and maintain all insurances on a contract. This meant the cost was normally assigned to the individual contract and varying degrees of coverage were achieved.

Under the new arrangement, the PTA assumes responsibility for the following contract insurance requirements:

  • Public liability (including general and product liability)
  • Contract works (material damage)
  • Professional indemnity (on specific projects only such as Alliances).

All other classes of insurance required under the contract remain the responsibility of the contractor.

The program has two categories:

  1. A general (or “floater”) category for contracts worth up to $50 million
  2. Contract-specific cover for contracts of more than $50 million in value.

Further information is included in the relevant tender documentation, and the certificates of currency are available below along with tables outlining the deductibles for each policy of insurance.

Further information on the program can be obtained from PTA Manager Procurement Nicole Peters at nicole.peters@pta.wa.gov.au

Certificate of Currency

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    Excess

    The below tables outline the deductibles for each policy of insurance.

    Contract Works Insurance

    Excess Category Original Estimated Contract Value
    0 to $3m >$3m to $6m >$6m
    Each loss except as below: $15,000 $25,000 $50,000
    Earthquake subsidence and collapse $20,000 $50,000 $100,000
    Wetwork Contracts $20,000 $100,000 $100,000
    Storm, Tempest and Flood $50,000 $100,000 $100,000
    Tunnelling Contracts $100,000 $100,000 $200,000
    LEG 2/96 Defects Claims $50,000 $100,000 $100,000
    LEG 3/96 Defects Claims $600,000 $600,000 $600,000
    Named Cyclone $100,000 $150,000 $200,000

    General Liability

    Excess Category
    (inclusive of Defence and Other Costs)

    Original Estimated Contract Value
    0 to $10m >$10m to $50m
    Each loss $50,000 $100,000

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