OCIP
Presented by:
Sharlene Horn
Vice President
How to Initiate and Manage an
OCIP
June 22 and 25, 2004
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Agenda
• Definitions
• History of OCIP’s
• How to Initiate an OCIP
• Overview of OCIP Management
• Administration Expectations
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OCIP Program Definitions
• WRAP-UP: program that provides same
insurance for all parties for a specific project
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OCIP: Owner Controlled Insurance
Program
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CCIP: Contractor-Controlled Insurance
Program
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SEWUP: Keenan’s rolling OCIP for CA
Schools
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OCIP History
• Most common method of providing
insurance for construction projects in
Europe and the United States
• 1940’s – Introduced to United States on
defense plants
• 1950’s applied to non-defense capital
programs such as New York City’s public
housing
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OCIP School / Public Entity
• 1999 – Legislation changed to allow
Public Schools to use OCIP’s
• California Codes
– California Governmental Codes
– Sections 4420-4422
• Specifically 4420.5
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Initiate Your OCIP
• Select/consult OCIP specialty broker
• Decide on coverages
– Primary/optional coverages
• Obtain quote from OCIP broker
– Applications required for Builders
Risk/Pollution
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Shop for the Right OCIP
Three Types Available:
I. Project Specific (Construction value
greater than $100 Million)
II. Deductible Program / JPA
III. Guaranteed Cost Program / JPA
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Ready to Proceed with OCIP
• Obtain OCIP contract language from
Broker
– Insert OCIP language in bid documents
• Keep Broker in the loop
– Pre Bid Meetings
– Bid Openings
– Pre-Construction
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Pre-Bid Meetings
• Provide OCIP information to potential
contractors
– Review lines of insurance provided and
those excluded
– Advise names of carriers
– Review limits
– Off-site certificates requirements
– Review Insurance Qualification
• Pre-Bid Handbook
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Proceed with OCIP
• Know/ Meet your OCIP Administrator
• Manage your expectations
• Understand OCIP paper flow:
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Enrollments
Certificates (OCIP & Off-Site)
Policies
Monthly Payroll
Claims Reporting
Closure
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Pre-Construction Meetings
• Provide OCIP enrollment information
to awarded contractors and review:
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Project Insurance Manual
Enrollment forms in detail
Off-site certificates
Procedures for subcontracts awarded
Monthly payroll reporting procedures
Claims reporting guidelines
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OCIP Success:
Communication
• Effective and Continual
Communication/Coordination
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OCIP Team
Account Executives
District (Representative)
Construction Manager/General Contractor
Subcontractors
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OCIP Loss Control Features
• Loss Control Services
– Pre-Construction Loss Control
Compliance Review
– On-Site Inspections
– Participate in Tool-Box Meetings
– Safety Training Materials
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OCIP Claims’ Management Features
• Claims Management
– Manage Claims Reported to Carriers
– Conduct File Reviews
– Monitor Carrier Reserves
– Facilitate Timely Claim Processing
– Mediate Disputed Claims
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Administration in Context
Contractor
Selection
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Prepare bid documents
Attend pre-bid meetings
Evaluate insurance
deducts
Contract
Award
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Enrollment
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WC policy issuance
Insurance certificate
issuance
RMIS data entry
Contractor
Performs
Work
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Mobilization
Payroll tracking
Claim oversight
Performance reports
Financial reports
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Contractor orientation
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Insurer notification
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Claim procedures
Administration
Safety requirements
Contractor
Completes
Work
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Payroll
audit/reconciliation
Insurer/TPA notification
Verify unit statistical
filing
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OCIP Information Features
• Risk Management Information System
On-Line Management System
– Single source for all insurance information
• Census Data
• Rates by Class Codes
• Contractor Enrollment
• Premium Calculation Comparisons
• Payroll Summaries
• WC/GL Claims Detail (Real Time)
• Frequency/Severity Injury Reports
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Risk Management Information System
• Set parameters for OCIP reporting:
– Monthly
– Quarterly
– Closeout
• Expectations of OCIP information system:
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Contractors/Contracts
Insurance and Policy Data
Project Cost Comparison
Claims Data/All lines
Accident/Safety Data
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System Data Base Structure
Information & Reports
Contract
Data
Policy
Certificate
Data
Contract
Cost
Worksheets
Contract
Claims
Data
Accident /
Safety
Data
Contractor
Data
Insurance
Premium
Data
Contractor
Closeout
Worksheets
Contractor
Claims
Data
Injury
Codes
Payroll
Data
Workers’ Comp
Class Codes
& Rates
Total
Project
Costs
Reserve
Analysis
Accident
Codes
Administration
Data
General
Liability
Rates
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Body
Part
Codes
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OCIP - Who’s Doing It?
• Beaumont USD (3)
• Palm Springs USD (4)
• Coachella USD (2)
• Pasadena USD (4)
• Lancaster USD (2)
• Pittsburg USD
• Las Virgenes USD
• Pleasanton USD (5)
• Lawndale USD (2)
• Rio Hondo CCD
• Lemoore UHSD
• Ripon USD
• Lynwood USD
• San Francisco CCD (4)
• Montebello USD (6)
• San Gabriel USD (2)
• Newport Mesa
• Santa Ana USD
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OCIP- Who’s Doing It cont.
• Santa Monica USD (6)
• Waterford USD (2)
• Ukiah USD
• Pajaro Valley USD (2)
• Victor Valley USD
• Antelope Valley USD
• Coast CCD
• Long Beach CCD
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Keenan’s OCIP - SEWUP
• Statewide Educational Wrap Up
Program
• Joint Powers Authority (JPA)
– Provides OCIP to member school districts
– OCIP for new construction and
modernization projects
– Guaranteed Cost Program
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SEWUP:Current projects
• 61 current on-going projects
• Total construction value over
$600,000,000
• Construction value range from $25,000
to $30,000,000
• Anticipate $1 billion in construction:
value fiscal year-June 30, 2004
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Questions & Answers
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