Is the Owners outlay for the Wrap-up premium plus related expenses less than its outlay under a non-wrap-up construction project?
A. Yes, on well designed and managed wrap-ups. The elimination of insurance costs from contractor bids combined with the savings related to safer work sites and dividends for reduced frequency of accidents typically more than compensate for the owner’s outlay for wrap-up premiums and expenses. As a rule-of-thumb, the owner can expect to save from 10 percent to 25 percent of contractor-provided-insurance costs or 1 percent to 3 percent of project construction costs.
Related Questions
- Is an Owner’s Project Manager (OPM) required for every school construction project that moves forward in the MSBA Process?
- Is an Owner’s Project Manager (OPM) required on every school construction project that moves forward in the MSBA Process?
- What does ICEAS offer our project team (owner, constructor, construction manager, etc)?
