PLAYING A CHANGING GAME: A Shift in Ownership of Non-Traditional - - PowerPoint PPT Presentation
PLAYING A CHANGING GAME: A Shift in Ownership of Non-Traditional Risks AGC 2018 Conference on Surety Bonding & Construction Risk Management Adrian Pellen , SVP Infrastructure Segment Leader January 30, 2018 Naples, FL Agenda 1
Adrian Pellen , SVP – Infrastructure Segment Leader January 30, 2018 Naples, FL
1
February 5, 2018
MARSH
2
February 5, 2018
MARSH
3
February 5, 2018
4
February 5, 2018
MARSH
5
February 5, 2018
Lagging Efficiency Looming Boom
Source: BCG, 2015 – Value Creators Report Source: McKinsey, 2017 - Global Infrastructure Initiative
MARSH
6
February 5, 2018
VfM
Source: IO, 2015 – Assessing Value for Money
7
February 5, 2018
MARSH
8
February 5, 2018
Source: FHWA
MARSH
9
February 5, 2018
Archaeological/Paleontological Contamination/HazMat
MARSH
10
February 5, 2018
12.2.4 Costs and Delays. Except for Owner Release(s) of Hazardous Materials, except as set forth in Sections 12.2.3 and 12.3 and without limiting Owner’s role or responsibilities set forth in Section 12.2.5, Contractor shall not be entitled to any compensation due to increased costs or delays associated with the discovery, handling, storage, removal, remediation, transport, treatment or disposal of Hazardous Materials, including contaminated groundwater, encountered in construction of the Project or Utility Adjustments. 12.3.2 Reimbursement for Certain Costs. Owner shall compensate Contractor for 100% of Contractor’s reasonable, out-of-pocket costs and expenses directly attributable to the handling, transport, removal and disposal of Pre-existing Hazardous Materials encountered by Contractor. The foregoing notwithstanding, none of the following costs and expenses shall be chargeable to Owner under this Section 12.3.2: (i) costs and expenses to the extent attributable to Contractor Releases of Hazardous Materials or Owner Releases of Hazardous Materials (without prejudice to any rights in respect of a Compensation Event under clause (j) of the definition of Compensation Event); (ii) delay and disruption costs and expenses; (iii) costs and expenses that could be avoided by the exercise of commercially reasonable efforts to mitigate and reduce cost; and (iv) Contractor’s administrative and overhead expenses arising out of or relating to Pre-existing Hazardous Materials “Pre-existing Hazardous Materials” ……Contractor shall have the burden of proof as to any Hazardous Materials not identified as being present
MARSH
11
February 5, 2018
Compensation Event means any of the following: (l) The discovery of any Undisclosed Archaeological Remains during the carrying out of the Construction Work; (m) The discovery of any Undisclosed Regulated Environmental Condition during the carrying out of the Construction Work; Undisclosed Archaeological Remains means any Archaeological Remains that, as at the Setting Date, were neither: (a) known to Developer; or (b) could reasonably have been identified by an appropriately qualified and experienced contractor or engineer exercising due care and skill and Good Industry Practice in the same or equivalent circumstances, including through review and analysis of the Reference Information or publicly available information (including, without limitation, the Final Environmental Impact Statement). Undisclosed Regulated Environmental Condition means any Regulated Environmental Condition that existed on a part of the Project Right of Way prior to the date on which the Department provided the Project Right of Entry to the relevant part of the Project Right of Way and that represents an additional or materially different condition to those described in the Regulated Materials Baseline Report (including conditions that were incorrectly identified (even if otherwise depicted or described) or that manifest themselves in a new location not identified or anticipated in the report), excluding any Regulated Environmental Condition that (a) could reasonably have been identified or discovered by an appropriately qualified and experienced contractor or engineer exercising due care and skill and Good Industry Practice based on the information set forth in the Regulated Materials Baseline Report or (b) arises from the Pre-Existing Gas Wells.
MARSH
12
February 5, 2018
MARSH
13
February 5, 2018
What about construction phase? High threshold
14
February 5, 2018
MARSH
15
February 5, 2018
16
February 5, 2018
MARSH
17
February 5, 2018
MARSH
18
February 5, 2018
LexArchaeology℠ provides first-party coverage for expenses and construction completion delays that arise due to the unexpected discovery at a construction site of archaeological resources of significant interest
MARSH
19
February 5, 2018
20
February 5, 2018
MARSH
21
February 5, 2018