Precon – Include Draft or sample CCIP Manual (e.g., Addendum) with bid documents.
Precon – Subcontractors to include CCIP pricing in proposals; Confirm via proposal scope/bid form.
Project Manager shall negotiate the credit prior to subcontract award. Target is 2.0% of total contract amount.
Send copy of CCIP Manual (e.g., Addendum) to shortlisted subs with final bid documents
Shelly Johan will prepare this document
To maximize credit, it helps to explain some basics about the CCIP coverage:
Confirm with Shelly Johan, if the subcontractor has a pre-negotiated credit rate or credit history on other projects.
Typical coverage will be greater than what the sub has within their policy
CCIP will have a tail for completed operations through the statute of repose.
The deductible under the subcontractor’s practice policy should be included in the CCIP credit calculation.
The subcontractor’s contract revenue included in the CCIP is not included in their practice policy which results in a credit to the subcontractor at a year-end audit
If the subcontractor does not accept the targeted credit value, KAST Risk Management and CCIP administrator will aid in negotiations review credit history and perform audit of credit rate.
Minimum credit target should for the project should be 1.33% average.
Subcontractor must still provide off-site GL, WC, and Auto. Pollution and Professional Liability will be required as applicable to subcontractor’s scope.
Understand project shared savings requirements and how they affect CCIP
Maximizing the CCIP credit to reach targeted goals first is priority over generating savings.
CCIP credit amount shall be included in Subcontract amount and deducted as CO #1
Sample language: “In exchange for providing the GL insurance, Kast will be deducting 2.0% of gross contract value. A deductive change order will be issued after Contract execution reducing the contract amount by the 2.0%. If the contract amount increases via change order throughout the course of the Project, additional credits in the amount of 2.0% will be applied to each change order.”
Credit changes orders shall be performed monthly. Prepare monthly budget revision to transfer CCIP savings to insurance cost code (perform same budget transfer on the owner pay application). The insurance line items shall be billed 100% every month.
Copy Shelly Johan and Dena Lee (dlee@wrapupsolutions.com) from Wrap Up Solutions, on all LOI’s to initiate enrollment
Obtain enrollment summary from Wrap Up Solutions each month
Obtain a final copy of the CCIP Manual from Shelly Johan
Ensure 2nd tier subs are enrolled
Submit all insurance certificates to Wrap Up Solutions for review (this is part of their service)
Be sure subs understand that you will be taking a 2.0% credit on all future change orders, include this reminder in all CO pricing requests
Deduct the 2.0% of change order value at the time of change order issuance (don’t wait until close-out)
In all requests for CO pricing remind subs that, “All pricing should reference this Bulletin and include a breakdown of labor, material, equipment, overhead & profit, and insurance.”
CCIP should be billed with the first pay application; as sub credits are collected and budget is transferred to the Insurance line item on the pay app, bill those amounts as well.
Material suppliers are not enrolled in the CCIP
Consultants hired by KAST are not enrolled in the CCIP, but insurance certificates must be collected and they must have WC.
Communicate with John Lupfer or Shelly Johan as needed.
GRIT shall be enrolled. No credit provided.
**Reminder: A Workers’ Compensation Exemption is not acceptable under any conditions. All subcontractors working on the project must have WC insurance.
