b'CASE STUDIES INSURANCE AND BONDINGIn the first part, the panelists looked at three case studies ofIn the final part, panelists discussed insurance and bonding projects where environmental risks were a factor. Two of thecoverage needed on environmentally sensitive projects. This is studies were diametrically opposed in their outcome. The firsta key matter when contractors are looking to reduce their risk one involved a project where the contractor was instructed byon such projects. A crash course on environmental protection an owner to access soil for fill from what the contractor wasinsurance and the Canadian insurance environment was informed was a clean fill site. The clean fill status was basedreviewed with the attendees. This included the various options on a Phase 1 study that did not involve actual testing of the soil.available depending on the project or the level of coverage desired as well as what this insurance covers and when itAfter the soil was trucked to the site, it was discovered that theis used.soil was contaminated. The contractor then had to remove the fill, find a location to move it to and source new clean fill for theThe panelists also reviewed the bonding requirements project. Based on a court decision, the contractor was found toassociated with environmental contracts and tendering as well be responsible for the testing of the soil based on the projectas the need for Contractor Environmental Permits (ECAs) from contract, and remediation of this problem cost the contractorthe province under certain circumstances. The presentation over $6 million. also covered the information needed when applying for environmental bonding.The second study detailed a soil remediation project wherethe owner and contractor did a great deal of due diligenceThe bottom line of the environmental risk seminar was that it in the pre-tender stage. In their tender, they included a soilreally comes down to a few important steps in the bid process to management plan and had the owner handle the projectsignificantly reduce environmental risk. Do your homework. Dont pollution insurance policy and the soil trucking and disposalskimp on the time needed to do the tendering process properly. directly to landfill. This project worked out well in that ownerAn ounce of prevention really is worth a pound of cure as the and contractor understood the risks involved in the project andcase examples demonstrated, stated Maillet.made conscious decisions to allocate cost risk in the contract. Solutions to any issues that arose were managed cooperativelyMaillet went on to say that it is also important to do a review with by the contractor, owner and consultant. your insurance advisors to ensure you have proper coverages and watch for bad contract clauses that download undesirable The difference between these two projects came down to therisks from owner and consultant to the contractor. Also be time put into the bid by each contractor, stated Romeo Milanoprepared to walk away from a project if your homework has told of Safetech Environmental. Contractors need to understandyou that the risks outweigh the potential for profit.that adequate time must be put into the bid process to know what potential risks they will or may encounter in the project and then price their bid accordingly. In some cases, they need to accept that certain projects are too risky to bid on.Milano went on to say that the third case study involvingCONSIDERING asbestos remediation in four heritage buildings had never been done at that magnitude before in Canada. Bidding sub- ENVIRONMENTAL RISKcontractors had to factor in a very tight time line with high penalties for delays. For some companies, it was a project that should not be considered because of the many intangibles and risks involved. 1.Review of applicable laws/regulations, including local jurisdictions & reporting requirementsCONTRACTOR BEWARE 2.In the second part of the seminar, the panelists looked atRequirements for permits, approvals and application environmental considerations on construction projects thattimelinesevery contractor must know. Through the examination of three examples of where contractors were held responsible for not3.Detailed review of contract documentsdelivering on municipal or provincial requirements, a list of steps was presented that contractors should follow for reducing risk in4. Development of site-specific environmental plan the tendering process.5. Conduct a Project Risk Review to determine These included ensuring that all applicable laws, regulations andbid/no bid decisionpermits are considered and having a Project Risk Review step that determines whether contractors move ahead with the bid6. Determine all available environmental or not. investigations requiredAlso in the second part was a detailed look at written7. Determine appropriate insurance coverage for construction contract terms and some of the pitfalls in certainscope of work.areas of the contracts of which contractors need to be aware. Willson offered some strategic and important advice on8.Collaboration with environmental authorities with jurisdictionwhat to look out for and how to manage the contract side of environmental risk. BUILDERSDIGEST Quarter 4 201915'