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Construction Insurance Programs

Introduction

The campus construction administrator is responsible for enrolling projects into the Board of Trustees’ insurance programs using the CSU Project Insurance database (for CSU staff; login required).

The CSU Builders Risk Insurance Program to be used on all major capital projects, regardless of delivery method. (Note: The Trustees are not utilizing this program for minor capital outlay projects and job order contracts.)

If a project bids as a minor capital outlay project but award exceeds the value of a minor capital outlay project it must be enrolled in the Builder’s Risk Insurance Program (BRIP)

​​Projects must be enrolled into the Builders Risk Insurance Program (BRIP) prior to the start date specified in the Notice to Proceed.

If a project contract amount is 10 million dollars or greater, it must also be enrolled in the Owner-Controlled Insurance Program and notice should be given prior to issuance of bid documents, as specific information shall be included in the bid documents.

Builder's Risk Insurance Program (BRIP): Premiums/Invoicing

All projects are subject to an initial insurance premium upon enrollment; this BRIP premium information is provided in the enrollment form in the CSU Project Insurance Database (for CSU staff; login required).

CPDC will invoice projects enrolled in the BRIP, and each invoice will include CPDC's administrative fee. For those projects with initial contract values of $5,000,000 or greater, CPDC will invoice these projects with a final/true-up billing after the campus:

  • issues and uploads the recorded Notice of Completion into the online CSU Project Insurance database, and
  • notifies staff that the project-adjusted contract amount is finalized. CPDC staff terminates the project coverage in the BRIP.

CPDC invoices each project where a true up is applicable, after the quarter-end in which the project was terminated in BRIP.

For projects with contract values of $4,999,999.99 or less, the initial CPDC BRIP invoice is due upon receipt with no further BRIP billing to the project.

CSU Builders Risk Insurance Program provisions have been incorporated into the Contract General Conditions found on the Contract General Conditions web site.

Forms/Template

  • Builders Risk Application (.pdf) Revised 6/2020
    The following project classifications will require special approval by the insurance carrier. For these projects, campuses shall submit this form:
    • Any project greater than $100,000,000
    • Wood Framed Or Hybrid Construction with awards greater than $10,000,000
    • Joisted Masonry Construction with awards of $25,000,000
    • Structural Renovation
    • All Other Construction
  • New Location Questionnaire (.doc) Revised 8/23/07
    For all completed projects, campuses are to complete the New Location Questionnaire in order to enroll the completed project into the campus property insurance.
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Reference

CSU ​Construction Project Seismic Fund - Insurance Fee

Public Contract Code section 7105​ states “public agencies shall not require the contractor to be responsible for the cost of repairing or restoring damage to the work...proximately caused by an act of God.”

CPDC established the CSU Construction Project Seismic Fund to cover losses due to an earthquake in excess of the contractor’s CSU builder’s risk insurance deductible and up to five percent (5%) of the initial construction contract value. Every project enrolled in the BRIP will contribute one percent (1%) of the initial construction contract value to this fund. The fund is calculated on the initial construction contract value and CPDC will invoice the entire fee for seismic at the time of initial BRIP billing. As with the BRIP premium, the seismic insurance fee is assessed with CPDC administrative fee.


Reference:

Owner-Controlled Insurance Program (OCIP) II

All projects that have a construction cost of $10 million or more are required to enroll in the Owner-Controlled Insurance Program (OCIP). The California State University Risk Management Authority have procured general liability for third-party bodily injury/property damage, worker’s compensation/employers’ liability, products/completed operations liability (for up to 10 years beyond project completion, and professional liability coverage), and the Trustees have designated Alliant Insurance Services, Inc., as the OCIP Administrator.

The Trustees must pay the costs of premiums for the OCIP coverage. All contractors and every subcontractor shall bid "net" of their contractor's insurance costs. Contractors and subcontractor shall exclude from their proposals, bids and change orders all "Costs of OCIP Coverages," as described in the contract general conditions under Insurance Requirements. 


Forms/Templates: