BUILDING A BRIDGE WITH SUBCONTRACTORS: THE KEY TO A SUCCESSFUL PROJECT

Transcription

1 WORKSHOP T7 Tuesday, November 10 2:30 p.m. 4:00 p.m. BUILDING A BRIDGE WITH SUBCONTRACTORS: THE KEY TO A SUCCESSFUL PROJECT Presented by Panelists Moderator Deborah Heden Risk Manager Gonsalves & Santucci, Inc. (The Conco Companies) Laura Latshaw Corporate Risk Manager Cupertino Electric, Inc. Andrea Nelson Vice President, Risk Management Manhattan Construction Group Brian Cooper Managing Director Arthur J. Gallagher & Co., National Construction Practice Workshop T7 The relationship between general contractors and their subcontractors can quickly become contentious. Issues such as indemnity and additional insured requirements, consequential damages, scheduling, changes, and wrap-ups, among others, can produce resentments and disputes between parties. In this workshop, representatives from both sides of the bargaining table will reveal the underlying causes of these disputes and discuss alternative approaches for managing these important but delicate relationships for the betterment of both parties. To print on both sides of the page, set your printer for duplex printing. Copyright 2015 International Risk Management Institute, Inc. 1

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3 Brian Cooper Managing Director Arthur J. Gallagher & Co., National Construction Practice As managing director for Arthur J. Gallagher & Company National Construction Practice, Mr. Cooper is responsible for leading the insurance, surety, and risk management services delivered to the construction industry from offices throughout the United States. Mr. Cooper has more than 30 years of experience serving the insurance and surety needs of the construction industry. His career includes positions as surety executive and sales and management positions in regional and national broker organizations specializing in construction. Mr. Cooper s personal book of business includes subcontractor default, wrap-ups, surety, captives, property and casualty, and architects and engineers (A&E) accounts. Mr. Cooper has served in a number of construction industry associations such as the Associated General Contractors of America (AGC), Construction Financial Management Association (CFMA), Associated Builders and Contractors (ABC), American Subcontractors Association (ASA), Engineering & Utility Contractors Association (EUCA), and National Association of Surety Bond Producers (NASBP). He is a frequent speaker and facilitator for seminars/conferences serving the construction industry. Mr. Cooper graduated from the University of Rhode Island s College of Business Administration with a bachelor of science degree in finance and insurance. Deborah Heden Risk Manager Gonsalves & Santucci, Inc. (The Conco Companies) As risk manager for Gonsalves & Santucci, Inc., more widely recognized as The Conco Companies, Ms. Heden s responsibilities cover all areas of corporate risk management and insurance, including insurance placement, analysis and administration, insurance contract review and compliance, claims management, preparing for actuarial and audit reports, and management of wrap-up programs. Workshop T7 Over her 30-year career, Ms. Heden has held risk management roles in several well-known firms such as Guy F. Atkinson Construction Company, Dillingham Construction, Turner Construction, and the Pulte Group. She has also held positions on the insurer and the insurance brokerage side of the business, including Lamberson Koster & Company. Ms. Heden has served as a mentor for women in the construction industry and enjoys speaking about careers in insurance and risk management at area schools. Ms. Heden is a graduate of Sacramento State University with a degree in criminal justice. She holds the Associate in Risk Management designation. 3

4 Laura Latshaw Corporate Risk Manager Cupertino Electric, Inc. Ms. Latshaw has more than 25 years of experience in construction risk management, holding various positions as a broker and corporate risk manager. In her current role as corporate risk manager of Cupertino Electric, Inc., Ms. Latshaw is responsible for managing a wide range of risks and structuring programs and insurance products that mitigate these risks to give Cupertino a competitive advantage and protect its assets and results. Prior to joining Cupertino, Ms. Latshaw was risk manager at Kinetic Systems, Inc., for several years and was a key part of the management team through a time of tremendous growth and merger and acquisition activity. Ms. Latshaw has earned numerous professional designations and is an active leader in the construction risk management industry. Andrea Nelson, ARM, AAI Vice President, Risk Management Manhattan Construction Group Manhattan Construction Group, where Ms. Nelson serves as vice president of risk management, is a national civil and general building service company that includes Manhattan Construction Company, Cantera Concrete, Manhattan Road and Bridge, Manhattan Pipeline, Spectrum, and SafeZone. Manhattan is recognized by Engineering News-Record as a top 20 US domestic builder and in the last 2 years has received 50+ industry honors for quality and safety. Ms. Nelson leads a team that makes risk management decisions that directly impact the strategic direction of the company. Her duties include designing and implementing internal risk management processes, managing the procurement of all insurance products, promoting developmental growth of department staff, and also developing the training curriculum for internal clients. Ms. Nelson earned a bachelor s degree in business administration from the University of North Texas, where she majored in risk management and insurance. She also holds the Associate in Risk Management (ARM) and Accredited Advisor in Insurance (AAI) designations. 4

5 Building a Bridge with Subcontractors: Key Issues to consider Presented By: Moderator: Brian Cooper, Managing Director, Arthur J Gallagher San Francisco, Ca. Panelists: Deborah Heden, Risk Manager, The Conco Companies Concord, Ca. Laura Latshaw, Risk Manager, Cupertino Electric, Inc. San Jose, Ca. Andrea Nelson, VP of Risk Management, Manhattan Construction Co. Dallas, Tx. #IRMI2015 Key Topics to Discuss Risk Management Issues Contract Insurance Issues Safety/On-site Issues Wrap-ups Concerns Selection/Relationships Summary How to achieve overall best results Workshop T7 4 5

6 Risk Management Issues Trends (and to do about them) SIRs/Deductibles Clear and Fair Communications General Contractor Concerns Subcontractors reviewing the Insurance requirements before bid Subcontractors having reputable carriers More due diligence than what is provided in a COI Completed Ops A/I status Subcontractors Experience Mod 5 Contract Insurance Issues Key Contract Issues of concern to Subs Flow-through owner/gc Insurance requirements Duty to defend, unintended consequences, no damages for delays, limitation of liability, indemnity, warranties, etc. Insurance requirements; AI s, horizontal exhaustion Deductibles/SIR s Limits requirements being flowed down from owner contracts Trending changes in insurance requirements 6 6

7 Safety/On-Site Issues Cranes Inexperience of Labor Force Responsibility for training 7 Wrap-Ups (CCIPs & OCIPs) Terms, conditions, limits, administration Claims Unit stat filings Deductibles Close-out, completed opps responsibilities Cancelled mid term? Bidding instructions vs requirements at time of work Credit calculations Apartments conversion factors Cranes Workshop T7 8 7

8 Selection/Relationship GC Pre-qualification of subs Key pre-qualifications subs consider when selecting GC s to work with Alternative project delivery methods and impact on above issues SDI vs Bonding of Subs Business Development Opportunities Partners vs Vendors 9 Summary If I m a GC, how do I get the best subs and the best people the subs have? If I m a sub, how do I get to work for the best GC s and partner best to get the best results in any market? 10 8

9 To enter the drawing for $500, affix your personal bar code label here or complete this evaluation online. T7. Building a Bridge with Subcontractors: The Key to a Successful Project Rating scale for all questions: 4 = Excellent 3 = Very Good 2 = Average 1 = Somewhat Disappointing 0 = Very Disappointing Overall rating for this workshop? Brian Cooper Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Deborah Heden Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Laura Latshaw Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Andrea Nelson Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Comments (use reverse side if extra space is needed):