7. With respect to completed operations insurance, and any insurance coverage written on a claims-made
basis, remain in effect for at least two years after final payment (and CONTRACTOR shall furnish OWNER
and each other additional insured identified in the Supplementary Conditions, to whom a certificate of
insurance has been issued, evidence satisfactory to OWNER and any such additional insured of continuation
of such insurance at final payment and one year thereafter).
C. CONTRACTOR agrees to maintain all required insurance coverage throughout the entire term of the contract.
If CONTRACTOR does not maintain coverage throughout the entire term of the contract, CONTRACTOR
agrees that OWNER may, at any time the coverage is not maintained by CONTRACTOR, order the
CONTRACTOR to stop work, suspend the contract, or terminate the contract. CONTRACTOR further agrees, if
applicable, as a precondition to the performance of any work under this contract and as a precondition to any
obligation of the OWNER to make any payment under this contract to provide the OWNER with a certificate of a
qualified insurer.
5.05 Property Insurance
A. CONTRACTOR must purchase and maintain property insurance upon the Work at the Site in the amount of
the full replacement cost of the Work. This insurance shall:
1. include the interests of OWNER, CONTRACTOR, Subcontractors, ENGINEER, ENGINEER’s
Consultants and any other individuals or entities identified in the Supplementary Conditions, and the
officers, directors, partners, employees, agents and other consultants and subcontractors of any of them
each of whom is deemed to have an insurable interest and shall be listed as an insured or additional
insured;
2. include expenses incurred in the repair or replacement of any insured property (including but not limited
to fees and charges of engineers and architects):
3. cover materials and equipment stored at the Site or at another location that was agreed to in writing
by OWNER prior to being incorporated in the Work, provided that the materials and equipment have
been included in an application for payment recommended by ENGINEER; and
4. allow for partial utilization of the Work by OWNER:
5. include testing and startup; and
6. be maintained in effect until final payment is made unless otherwise agreed to in writing by
OWNER, CONTRACTOR and ENGINEER with 30 days written notice to each other additional
insured to whom a certificate of insurance has been issued.
B. CONTRACTOR shall be responsible for any deductible or self-insured retention. The risk of loss within the
identified deductible amount will be bome by CONTRACTOR, Subcontractors, or others suffering any such loss,
and if any of them wishes property insurance coverage within the limits of such amounts, each may purchase and
maintain it at the purchaser’s own expense. OWNER shall not be responsible for purchasing and maintaining
any property insurance specified in this paragraph 5.06 to protect the interests of CONTRACTOR,
Subcontractors, or others in the Work to the extent of any deductible amounts that are identified in the
Supplementary Conditions.
C. All the policies of insurance (and the certificates or other evidence of the policy) required to be purchased and
maintained in accordance with paragraph 5.06 will contain a provision or endorsement that the coverage afforded
will not be canceled or materially changed or renewal refused until at least 30 days after written notice has been
given to OWNER and CONTRACTOR and to each other additional insured to whom a certificate of insurance
has been issued and will contain waiver provisions in accordance with paragraph 5.07.
GC - 19 of 57
