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There may come a time during the course of a construction project when a contractor’s relationship is terminated. There are a number reasons this may occur such as:
Topics: Contracts
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Reinsurance is when an insurance company transfers risk to other parties by a formal agreement—thereby lessening its liability on catastrophic or multiple losses. Essentially, it can be defined as insurance for insurers, and it enables insurance companies to remain solvent after major claim events such as hurricanes.
It's important to know that both Treaty and Facultative reinsurance policies can be proportional or non-proportional in structure. Here are some differences between proportional and non-proportional reinsurance that your insurance company should know.
Topics: Contracts, Reinsurance
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A General Indemnity Agreement (GIA) is a legal document that outlines the Surety/client relationship. As a contractor, it is important to understand the terms and language found in this document. Here’s a quick reference regarding some of the significant terms you may encounter:
Topics: Contracts
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A General Indemnity Agreement (GIA) is essential in terms of risk transfer, and it is a necessary component of obtaining surety bonds. The GIA is a legal instrument used by surety companies to ensure they are “made whole” by any losses covered under their bonds. In the event a Surety suffers a loss as a result of the contractor’s failure, the contractor must reimburse the Surety for such losses.
Topics: Contracts
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A change order is work that is added or eliminated from the original scope of work of a construction contract. This may positively or negatively change the contract amount or the completion date of the project. Change orders are common, and it is rare for a construction project to be completed without any changes to the original scope of work.
Topics: Contracts
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All contractors know there are significant risks on every project that are inherent in the construction industry. A contractor's potential risk exposure may be significantly increased through the inclusion of an indemnification clause—also known as a hold harmless clause—in its contract with the owner.
Topics: Contracts
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The construction industry has its fair share of legal terms, especially when it comes to contracts. Some important ones to understand are those associated with monetary damages. Monetary damages are a sum of money paid as compensation to an injured party by the party at fault or liable for the injury.
While liquidated damages and consequential damages are two of the most common issues negotiated in construction contracts, they are most often misunderstood. Let’s take a closer look at them.
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These days, it would be difficult, if not impossible, to find a business that is not exposed to a certain level of risk in its day-to-day operations. However, no business is more exposed to risk than that of a contractor.
Topics: Contracts, Additional Insured
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Let’s say you are a Trade Contractor working on a project and your contract requires that you waive your subrogation rights. If you do not have a Waiver of Subrogation Endorsement on your Insurance Policies, you could very well be in breach of contract with the Owner, General Contractor or Trade Contractor that hired you. In this post, we will explain the process behind a waiver of subrogation.
Topics: Contracts
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If you are working on a Wrap-Up, it can be hard to know what to do when you have finished your work. There are a few different questions you may have. Here are 3 tips to help you understand when is the right time to close your wrap-up Contract!
Topics: Contracts, Wrap-Up Insurance
