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 borne 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.
5.06 Waiver of Rights
GC - 18 of 53
