01537477

Monograph

http://www.trb.org/Main/Blurbs/171313.aspx

http://www.trb.org/Publications/Blurbs/171313.aspx

The insurance market for large transportation projects is complex. Risk management plays a vital role in the planning, design, and construction of today’s complex transit systems. Transit owners are more proactively exploring ways to manage risk and reduce corresponding costs and exposures. Some public transit owners are exploring enterprise risk management approaches as a more complete way to control overall risk exposures. With respect to insuring against risk, new types of insurance programs, including Owner Controlled Insurance Programs (OCIP) and Contractor Controlled Insurance Programs (CCIP), are being implemented, resulting in cost savings, promotion of safety, and claim reduction in the face of a consolidating insurance market. This project identifies and discusses in detail the legal issues confronting transit agencies seeking to obtain insurance for large transit capital projects. Large projects include Federal New Starts projects and alternative delivery projects (design-build, design-build-operate-maintain, construction manager at risk, etc.), and may include large rolling stock acquisitions. The report discusses different types of insurance coverage required for large projects and the types of programs available, including OCIPs and owner’s protective professional indemnity insurance, and the benefits, advantages, and disadvantages of such programs as compared to consultant- or contractor-provided insurance programs. The digest examines how state law affects the ability to assign risk contractually; the current practices for drafting contract provisions to manage risk; competitive procurement and cost analysis issues; methods of obtaining comparative pricing for various insurance options; and the impacts of the various types of insurance programs on owner liability, project and contractor safety, and disadvantaged and small business enterprise project participation. The importance of industry practice is considered, as well as how best to design an insurance program to manage risks on specific types of projects. This digest should be useful to transit attorneys, administrators, risk managers, project engineers, financial officers, and other staff that need knowledge of basic insurance information and how the industry works.

English

63p

2014-9

TCRP Legal Research Digest

9780309284295

Digital/other

Appendices

Construction projects; Contracting; Insurance; Legal factors; Liability; Public transit; Risk management; State laws

Administration and Management; Law; Public Transportation; I10: Economics and Administration

TRIS, TRB, ATRI

Sep 15 2014 1:15PM