CONSTRUCTION CONTRACTS
TABLE OF CONTENTS
page
GETTING YOUR FEET WET
1
BID BONDS
Why is a Bid Bond needed?
What terms may be a problem?
What to do with a claim?
3
5
5
PERFORMANCE BONDS
Why a Performance Bond and what's involved?
What terms in a Performance Bond may be of
concern?
What to do with a Performance Bond claim?
5
7
8
LABOR AND MATERIAL PAYMENT BONDS
Why is a Labor and Material Bond needed?
12
Which terms in the Labor and Material Payment
Bond may be a concern?
13
What to do with a Labor and Material Payment Bond
claim?
15
CONTRACTOR'S LIABILITY INSURANCE
Why is it needed?
Which terms of a contractor's liability
insurance policy may be of concern?
What to do with a contractor's liability
insurance claim?
15
16
21
COURSE OF CONSTRUCTION PROPERTY INSURANCE
Why is Course of Construction Property
Insurance needed?
Which terms may be of concern in a course
of construction property policy?
What to do with a claim against a course of
construction property policy
21
23
25
WRAP UP INSURANCE
Why is wrap up insurance needed?
Which terms cause concern in a wrap up policy?
APPENDIX
26
27
29
APPENDICES
page
A.
CCDC 2
29
B.
APPLICATION FOR BID BOND
38
C.
BID BOND
40
D.
CONSENT OF SURETY
41
E.
PERFORMANCE BOND
42
F.
LABOUR AND MATERIAL PAYMENT BOND
43
G.
NOTICE OF CLAIM
44
H.
CCDC 101
45
1.
CCDC 101-1
53
J.
INTERIM PROOF OF LOSS (Other than Fire)
54
K.
PROOF OF LOSS (Other than Fire)
55
L.
CCDC 201
56
M.
CCDC 201-1
65
N.
FIRE PROOF OF LOSS
66
O.
ENGINEERS' PROFESSIONAL LIABILITY INSURANCE
67
-1-
1.
1.1
GETTING YOUR -FEET WET1
This is an ocean not· a pud,dle!
contract terms and
you are
~
~nsurance
Th.e variety of· construction
policy language is awesome.
If
buyer, don't venture far without the counsel of a
knowledgeable insurance broker;
if you are making a claim,
quickly arrange the trust of an experienced adjuster.
1.2
Don't try to re-invent the wheel.
Start by phoning your
local construction association and purchasing ofa copy A
Guide to Construction Insurance 1982 CCDC 21.
1.3
The risks,
indemnity agreements,
and insurance obligations
are usually prescribed by the construction contract; this is
a good place to start.
price contract CCDC2
Attached is a standard stipulated
(see appendix A) where the following
obligations are prescribed:
GC 23 - Bonding
GC 19 - Indemnification
GC 20 - Insurance
1.4
If the construction contract is silent,
business
efficacy
will not persuade a court that an insuring obligation ought
to be implied.
Kerrybrooke Development Ltd. et al v.
(1986) 46 Sask. R. 47 at 56
1.5
While
~t
(S~Q.B~;
Ellis-Don~Ltd.
et al
Scheibel, J.)
has been conventional for the general contractor to
purchase both the contractor's liability insurance and also
the course of construction property policy as contemplated
-2by appendix A [see: GC 20.1(a) and
toward the
(d)],
owner obtaining property
the new trend is
insurance
or wrap up
project policies covering all parties.
Insurance and Bonding Consideration,
(1984) 7 C.L.R. 223 at
233.
1.6
The
variety
of
insurance
policies
persuades
that
your
clients not simply rely upon certificates of insurance and
waiver of subrogation clauses; rather, they should actually
compare
the
policy
to
their
obligations
under
the
construction contract and become a named insured.
1.7
If you are assisting in making a
claim,
generally if you
follow the below rules you will not go wrong, namely:
.1
A claimant losses nothing by fully co-operating;
.2
Properly file a Proof of Loss;
.3
If asked, provide a non-waiver agreement; and,
.4
Where it's a Third Party Liability Claim of insured and
uninsured
risks,
contribution
negotiate
toward
what
early
for
a
shared
will
invariably
be
astronomical defence costs.
Special Lectures
of the Law Society of Upper Canada,
(1987) DeBoo 48 at 54.
1.8
If you are in a dispute with an insurer concerning whether
you are entitled to coverage, the following general judicial
considerations appear operative:
-3.1
Courts loathe to totally negate coverage;
c.f. Ultramar'Canada Inc. v. Demik Construction Ltd. et
al
(1987)
Lawyer's
Weekly
736-027
(O.S.C.;
Gravely,
L. J. )
.2
The'
onus
is
on
the
insurer. to
establish
that
an
exclusion apply; and,
.3
The
"contra
proferentem"
insurer and/or
surety
in
rule
the
applies· against
interpretation
the
of both
. insurance policies and bonds.
Special Lectures of the. Law Society of Upper Canada,
(1987) DeBoo 48 at 52.
Bonding and
Insurance,
(1985)
19
C.L.R.
207
at
208
(1985)
2.
2.1
BID BONDS
Why is a Bid Bond needed?
.1
To obtain a Bid Bond, sureties require that the builder
provide indemnification and security.
See Application
for Bid Bond, appendix B.
.2
The purpose of the Bid Bond is to assure the sincerity
of a builders' tender for a construction contract.
prescribes
that
initially
funds
will
come
from
It
the
surety and possibly eventually from the pocket of the
successful
deliver
bidder
to
the
if
he
owner
refuses
the
within
60
necessary
days
to
contract
documentation (i.e.: contract, insurance policies, and
-4bonds) thus compelling the owner to grant the contract
to another bidder.
.3
See specimum Bid Bond appendix
c.
In Saskatchewan Bid Bonds are not usually required in
the
residential
commercial
and
construction
industrial
projects
price less than $25,000.00.
Depositories
accept a
in
other
industry
nor
having a
for
contract
Unlike the rules for Bid
provinces,
Saskatchewan
will
certified cheque in lieu of a Bid Bond,
but
the bidder should be certain that it can within 60 days
obtain the other necessary bonding called for by the
tendering documents .
.4
In Saskatchewan,
the usual limit of a Bid Bond is 10
percent of the first
$20,000.00 and 5 percent of the
balance of the tendered price .
.5
Mistake by a builder in preparation of its tender will
usually
not
requisite
excuse
the
builder
contract documentation
from
delivering
nor the
the
surety from
paying on the bond if the builder defaults.
Ron Engineering and Construction (Eastern) Ltd.
(1981)
119 D.L.R. (3d) 267 (S.C.C.; Estey, J.)
See also 7 C.L.R. 223 at 226 (1984) and 19 C.L.R. 207
at 209 (1985) .
.6
But, . where an owner becomes aware that the successful
bidder has made a substantial mistake,
it should pass
this information on to the Performance Surety or risk
having the Performance Bond avoided by the Surety's
-5defence of misrepresentation.
Doe v.
The Canadian Surety Company
(1936)
S. C. R.
191
(S.C.C.; Duff, C.J.)
2.2
What terms may be a problem?
.1
The bond is so simple,
there really are no problems.
Only be mindful of the fact that only the obligee can
sue on the bond, thus be certain that the legal entity
which
will
suffer
the
excess
costs
because
of
a
bidder's default is a party to the bond.
2.3
What to do with a claim?
.1
Check the rules of the Bid Depository to determine when
the bidder is in default .
.2
Promptly give notice to the surety with a copy to the
bidder but recognize that if the bidder is reluctant it
might be in the best interest of the future harmony of
the building project that you look for another builder
and prosecute the Bid Bond for any extra costs .
•3
You can commence an action against the surety for the
face amount of the bond but when you take out judgment
it will only be for your provable excess costs.
Rowlatt
on· the
Law of Principal and . Surety,
4th Ed.
(1982) p. 225 at 228.
3.
3.1
)
Performance Bonds
Why a Performance Bond and what's involved?
.1
Invariably the surety is the same company as granted
-6-
the Bid Bond and the same type of indemnification and
security is
usually obtained by the
builder and its personnel.
.2
surety from the
See appendix B.
In assessing the builder's application, the surety will
usually seek satisfaction of the six C's:
character,
capacity, cash, contract, coverage and competition.
Insurance and Bonding Considerations
(1984)
7 C.L.R.
223 at 224 •
.3
The surety's evaluation is as much based upon the trust
of the broker as anything else, but it is unlikely that
a builder can obtain a Performance Bond for more than
ten times its working capital,
Performance
Bond
if
insurance coverage.
there
and will not obtain a
are
any
holes
in
the
Assessment of risk is specific to
the project geography, contract, and parties involved .
.4
A Performance Bond will
will
spite
receive
of
an
a
not guarantee that an owner
satisfactorily
inadequate
or
completed
improper
project
in
construction
contract; rather, it only assures the owner that there
will be funds to fulfill the builder's obligations of
completion (see appendix A, GC 5) and the builder's one
year maintenance obligation. See GC 24.2 .
.5
It is unlikely that a residential construction project
is secured by a Performance Bond, but most commercial
and industrial projects with a contract price greater
-7-
than $25,000.00 will require a Performance Bond.
The
form and amount of the bond, which in Saskatchewan is
usually
50
percent
.of
the
tendering
prescribed by the tendering documenta.
price,
are
See appendix A,
GC 23.l.
3.2
What terms in a Performance Bond may be of concern?
.1
The tender call will prescribe the form and the amount
of the Performance Bond.
universal
form.
Don't assume that there is a
Indeed,
the
Federal
Government
Contract has a different bond.
Bonding and Insurance 19 C.L.R. 207 at 208 (1985) .
.2
Be sure that the obligee on the Performance Bond is the
same as the
II
owner
on the construction contract and
II
that the necessary premium arrangements have been made
for the term of the bond to extend from the builder's
commencement to the expiration of his warranty period.
See appendix A GC 24.2 .
.3
Take
care
to
circumstances
not
substantially
alter
the
contract
to the prejudice of the surety without
the surety's written consent.
To permit the course of
construction property insurance to lapse may discharge
the surety; or, to prematurely make payments or change
the method of payment on the construction contract may
discharge the surety.
Town of Mulgrave v. Simcoe and Erie Insurance (1977) 73
D.L.R. (3d) 272
(N.S~S.C.;
MacKeigan, C.J.N.S.)
-8-
Macklin School District v.
Saskatchewan Guarantee and
Fidelty Company (1919) 2 W.W.R. 396 (S.K.B.; McKay, J.)
.4
Also, while the "owner" is not subject to an obligation
of
"uberrimmae
fidei ",
a
surety
may
nonetheless
discharged if before the Performance Bond was
the. "owner"
fails
to
notify the
surety that
be
issued
it was
aware that the principal had made a substantial mistake
in its bid tender.
Doe
v.
Canadian
Surety
Company
(1936)
S.C.R.
191
( S . C. C.; Du f f, C. A. )
Special Lectures
of
the Law Society of Upper
Canada
(1962) DeBoo p. 311 at 315.
Rowlatt
on
The
Law
of
Principal
and· Surety 4th Ed.
(1982) 233 at 235.
3.3
What to do with a Performance Bond claim?
.1
Throughout your processing of the claim, be mindful of
the fact that there are six possible defences which the
surety may have to the owner's claim, namely:
(i)
Misrepresentation
see
the
comments
at
comments
at
paragraph 3.2(.4) above.
(ii)
Prejudicial
change
see
the
paragraph 3.2(.3) above.
(iii)
No default - the circumstances of the project
and terms of the construction contract (i.e.
appendix A GC 5) do not permit the owner the
right to perform the contractor's work or
-9-
stop the contractor from working.
(iv)
No notice - the owner has failed to meet the
prescriptions of the bond for giving notice
to the surety. See appendix A GC 5.6.
(v)
Laches - the owner's notice is prejudicially
untimely.
(vi)
Completion.
the
surety
has
fulfilled
its
obligations under the bond.
Bonds and Insurance (1985) 19 C.L.R.
207 at
210.
Rowlatt on the Law of Principal and Surety
(1982) 225 at 226 .
.2
Given
that
personnel
the
of
surety
the
has
defaulting
some
leverage
builder
over
because
of
the
the
indemnities and securities obtained when the builder
applied for the bond (see appendix B), and given that
the surety is not a builder who can immediately pick up
the
idle
hammer
finance
the
owner's
rights
but
owner's
to
rather
extra
perform
only
costs
or
has
in
stop
the
funds
exercising
the
work
to
the
(see
appendix A GC 5) the reality of the situation is that
the
costs
and
difficulties
of
regeneration
of
the
failing project are directly related to the length of
the
owner's
permitting
adjuster.
delay
the
in
surety
notifying
to
engage
the
an
surety
and
experienced
-10.3
The obligation of the surety under the Performance Bond
is to immediately investigate and, assuming no defence,
respond with one of the following options, namely:
(i)
Remedy the contractor's default - given that
the principal
personnel
of
the builder are
aware of the surety's leverage and presence,
it is seldom that the project is not too far
gone for this response.
(ii)
Complete the proj ect -
again the surety is
not a builder and it is very seldom that this
will be followed;
(iii)
Obtain satisfactory completion bids
the
surety
builders
proj ect,
will
to
obtain
bids
satisfactorily
~
usually
from
other
complete
the
then obtain the owner's consent to
the new builder completing the project, with
new
contracts,
place,
and
insurance
the
surety
and
bonds
picking
put
up
in
the
consequent extra costs.
Bonding and Insurance (1985) 19 C.L.R. 207 at
210 and 214.
Special Lectures of the Law Society of Upper
Canada (1962) DeBoo 311 at 317 .
.4
Typically,
to
minimize
the
surety's
financial
obligations under the bond, the owner can deal with the
unpaid funds under the original construction contract
-11-
according to the following rules, namely:
(i)
If the initial general contract was entered
into
before
January
1st,
1986,
all
of the
original builder's payables must be covered
before the
unpaid funds
from this
contract
can be used to meet the costs of deficiencies
and completions.
Armco Canada Ltd. v. P.C.L. Construction Ltd.
et al
(1986)
4 W.W.R.
624 (S.C.A.;
Cameron,
J.A.).
(ii)
Regardless, ten percent of the value of work
completed
payment
cannot
of
be
used by the
deficiency
and
owner
completion
for
costs
until 40 days following abandonment and then
only if there are no registered liens.
Builder's Lien Act s. 35.
(iii)
But,
for
proj ects
started after January 1,
1986, ninety percent of the contract value of
the completed work can be used by the owner
to
meet
the
costs
of
deficiencies
and
completion.
Builder's Lien Act s.7, 8, 9 and 13 .
.5
Again, where a substitute contractor is provided by the
surety, the owner should be mindful of the need to put
into
place
a
new
construction
requisite bonds and insurance.
contract
with
the
-12.6
Finally, if the owner must sue, you should sue for the
face value of the bond,
judgment
for
owner's
exercise
contractor's
the
extra
of
work
4.1
costs
its
under
construction contract.
4.
but eventually only take out
consequent
right
the
to
terms
of
upon
the
perform
the
the
initial
See appendix A GC 5.
Labor and Material Payment Bonds
What is a Labor and Material Payment Bond needed?
.1
To minimize the embarrassment of unpaid accounts on a
project
and
the
financial-legal
problems
that
are
attendant upon a project which becomes clobbered with
registered builder's liens and written notices of lien,
the
owner
may
require
the
builders,
subcontractors,
to be secured by a
payment bond.
These bonds
are
and
even
the
labor and material
common
on
government
projects and are often used on larger commercial and
industrial
flow
of
projects
funds
is
where
critical
completion of the project.
Builder's
Lien
Act
the
s.40
continuance
to
the
harmonious
satisfactory
Under the provisions of The
an
owner
can
from
his
own
resources pay 90 percent of the contract price in spite
of registered liens, but a construction mortgagee will
be frustrated by a registered lien.
Act s. 7 1 ( 3 ) .
See Builder's Lien
-13.2
In Saskatchewan,
Labor and Material Payment Bonds are
only available where the surety has already granted a
Performance Bond and the limit is usually 50 percent of
the builder's contract price .
•3
As with the Performance Bond,· the
surety will
enjoy
leverage over the principal personnel of the builder by
the devices of indemnities and securities given by the
application for the bond.
.4
See appendix B.
The payment bond will only assure the owner that there
are funds available to pay the direct payables of the
builder
which
were
reasonably
builder's work on the project.
required
for
the
See specimum Labor and
Material Bond appendix F.
Insurance and Bonding Considerations
(1984)
7
C.L.R.
223 at 228 •
.5
Usually
the
indemnifiers
on
the
Labor
and
Material
Payment Bond have no control over the payables of the
subcontractors and consequently it is very unusual to
find
a
Labor
and
Material
Payment
Bond
that
does
anything more than secure the "direct" payables of the
builder.
Labor and Material Payment Bonds (1984) 5 C.L.R. 183 at
186.
4.2
Which terms in the Labor and Material Payment Bond may be a
concern?
.1
Accept that the owner's leverage on the principals
-14of
the
builder
to
persuade
their
attention
to
the
builder's payables is modified by the usual practice of
the surety to not intervene and pay on the bond without
first seeking the indemnifier's approval .
.2
While a prejudicial change in the project circumstances
can discharge the obligations
construction
contract
of the
contemplates
surety,
work
if the
extras
and
changes, these will not vitiate the bond.
Truro v. Toronto General Insurance Co. (1973) 38 D.L.R ..
(3d) 1 (S.C.C.; Dickson, J.)
.3
The
surety payment
limit is
reduced by
"good faith"
payment and consequently the claimant with the fastest
running shoes has the best opportunity of realization.
See Builder's Lien Act s. 81(2).
Labor and Material Payment Bond (1984) 5 C.L.R. 183 at
187 .
.4
There recently have been a number of cases commenting
on matters of technical compliance by claimants,
the most recent
but
jurisprudence appears to be that the
claimant must sue within one year, but will be relieved
of
irregularities
in
giving
notice
so
long
as
the
surety is not able to demonstrate prejudice.
Dashchuk
Lumber
Ltd.
v.
Proman
Projects
Ltd.
et
al
(1987) 6 W.W.R. 673 (S.C.A.: Wakeling, J.A.)
.5
Having paid a claim,
the surety is subrogated to the
rights and position of the payee claimant.
See
-15Buildei's Lien Act s. 81(3).
4.3
What to do with a Labor and Material Payment Bond claim?
.1
Copies of a builder's Labor and Material Payment Bond
can
always
owner.
.2
be
obtained
from
the
consultant
or
the
See Builderis Lien Act s. 82(1)(a)(iv) .
A claimant does not have to exhaust its builder's lien
rights before being entitled to payment under the terms
of the Labor and Material Payment Bond.
Citadel General Assurance Co. v. Johns-Manville Canada
Inc. (1983) 1 C.L.R. 167 (S.C.C.; Dickson, J.)
.3
Given that an early claim will optimize the surety's
realization against the indemnifer, and that the bond
limit can be reduced by prior "good faith" payments, a
claimant should not delay, but should give early notice
to the surety,
the owner,
and the builder.
See form
letter, appendix G.
.4
Though not privy to the bond,
a claimant may bring a
suit against the surety on the bond, but should do so
within one year following the last supply or work by
the claimant.
Dashchuk
See Builder's Lien Act s. 81(1).
Lumber
Ltd.
v.
Proman Projects
Ltd.
et
(1987) 6 W.W.R. 673 (S.C.A.: W'akeling, J.A.)
5.
5.1
Contractor's Liability Insurance
Why is it needed?
.1
Construction is a risky business; there are risks of
al
-16liability to both others on the project· site and to
strangers.
See:
Kerrybrooke Development Ltd. et al v. Ellis-Don et al
(1986) 46 Sask. R. 47 (S.Q.B.; Scheibel, J.)
Kamloops v. Nielsen (1984) 10 D.L.R. (4th) 641 (S.C.C.;
Wilson, J.A.)
.2
The construction contract may attempt to pass along or
re-allocate these risks among the participants on the
job site (see appendix A GC 19), but given the usual
short
term
builders,
precarious
these
financial
provisions
are
viability
of
of
most
limited value and
consequently the insuring obligations in a construction
contract become paramount.
Dangers of Hold Harmless and Indemnification Agreements
(1985) 17 C.L.R. 300 .
.3
GC 20.1(a) prescribes the contractor's liability Form
CCDC 101 which is apprendix H to this material.
does
not
insure all
construction project,
of
the
but
signficant exclusions.
risks
rather
is
arising out
It
of
a
subject to many
Essentially, the policy is not
intended as a property policy, a motor vehicle policy,
Workman's
Compensation,
nor
a
business
operations
policy.
5.2
Which terms of a contractors liability insurance policy may
be of concern?
.1
The conventional wisdom as been to name the builder as
-17the
insured,
but
before
doing
so
an
owner
should
consider:
At the very least,
(i)
the owner should use the
Form CCDC 101-1, appendix I, to eliminate the
risks that the contractor's behaviour might
void the policy.
Special Lectures of the Law Society of Upper
Canada (1987) DeBoo p.48.
(ii)
Given
the
recent
"discoverability
rule"
in
negligence, the owner may want control of the
duration
of
the
coverage
after
the
usual
(1984)
10 D.L.R.
completed operations period.
c.f.:
Kamloops
v.
Nielsen
(4th) 641 (S.C.C.; Wilson, J.A.)
.2
Usually the completed operations hazard period expires
at the end of 24 months following "completion"
.3
Given the awesome expense of investigation and defence
of claims under these policies, an owner should insist
that the costs are payable in addition to the policy
limits as in CCDC 101.
Bonding and Insurance (1985) 19 C.L.R. 207 at 228 .
.4
Exclusion
(a),
Contract
Liabilities,
causes
serious
problems because of a Supreme Court of Canada decision
which has ruled that a risk is excluded if the insured
is
liable in contract as well
as
tort.
But,
for
extra premium, the owner can adjust its inclusion to
an
-18meet the needs of the project.
Dominion Bridge Co.
Ltd. v.
Toronto General Insurance
Co. (1963) 40 D.L.R.(2d) 840 (S.C.C.; Judson, J.)
Special Lectures
of the Law Society of Upper Canada
(1987) DeBoo p. 49.
Bonding and Insurance (1985) 207 at 225 .
.5
Exclusion
and Watercraft,
are
usually insured by the builder's general policy,
but
given
(b),
that
Roadway Vehicles
the
owner
does
not
need
the
builder
suffering impecuniousity when sued on an auto
claim,
the owner should consider asking for coverage of nonowned
vehicles
contract
GC
as
prescribed
20.1 (B) ,
acknowledgement
and
that
it
by
the
obtain
will
construction
the
give
insurer's
notice
of
requires
the
cancellation to the owner .
.6
Exclusion
owner's
(d),
Professional
special
Services,
attention
given
the
engineering
obligations imposed upon the builder by such terms as
GC 25.3.
Bird
See appendix A.
Construction
Insurance
Co.
et
Co.
al
et
al
(1985)
v.
18
United
C.C.L.I.
States
92
Fire
(S.C.A.;
Vancise, J.A.).
Claims Against Building Contractors (1983) 10 C.L.R. 35
at 43 .
.7
Briefly,
in
interpreting
the
Professional
Services
exclusion, the courts appear to be using the following
-19general rules, namely:
(i)
It is
the character of the service not the
usual
type
of
business
carried
on
by
the
actor;
Contractors
(ii)
with
providing
specialized
specialized
employees
service
are
more
. vulnerable;
Project
(iii)
management
contracts
will
suffer
under this exclusion;
Courts
(iv)
are
coverage
reluctant
for
the
to
totally
conventional
eliminate
duties
of
a
builder .
.8
If
an
owner wants
faulty design
coverage to
beyond the duration of the project,
that the owner purchase a
extend
it is recommended
single project policy and
annually renew it during the risk period; if the owner
relies upon the consultant, the 'policy may be cancelled
before the claim is made •
.9
Attached
is
a
copy
of
an
engineer's
professional
liability insurance policy (appendix 0), but an owner
should appreciate that this will not insure against all
design
risks,
but
professional blame.
only
those
Against
there
exists
i.e.: "error, omission or neglect
in ... professional services .... "
Claims
where
Building
See exclusion l(f).
Coritractor
for
Deficiencies (1983) 10 C.L.R. 35 at 42.
Construction
-20Dangers of Hold Harmless and Indemnification Agreements
(1985) 17 C.L.R. 300 .
. 10
Again,
if
liability
design,
the
owner
insurance
is
relying upon
policy
to
insure
a
professional
against
faulty
because of the awesome costs of investigation
and defence of these claims,
assure that these costs
are in addition to the limits of coverage .
. 11
Exclusion (h), Property Damage to the Project,
also
excludes the owner's existing structure, thus care must
be
taken
with
the
Course
of
Construction
Property
Insurance Policy to cover these risks.
Dominion Bridge Co.
Ltd. v. Toronto General Insurance
Co. (1963) 40 D.L.R. (2d) 840 (S.C.C.; Judson, J.)
Special Lectures
of
the Law Society of Upper Canada
(1987) DeBoo, p. 52.
Claims
Against
Bonding
Contractors
for
Construction
Deficiencies (1983) 10 C.L.R. 35 at 47 .
. 12
Concerning
"property
Canadian
the
interpretation
occupied by
jurisprudence
of
exclusion
the insured,
draws
a
distinction
(h)(l),
"the
between
exclusive dominion and temporary dominion, ruling that
the operations of an on-location rug cleaner and a tank
sand blaster do not fall within this exclusion.
Indemnity
Insurance
Co.
v.
Excel
(1954) 2 D.L.R. 721 (S.C.C.; Rand, J.)
Cleaning
Service
-21Interprovincial Pipe Line Co. v. Sellers Oilfield Ltd.
(1976) 66 D.L.R. (3d) 360 (M.C.A.; Hall, J.A.)
.13
Exclusion
(k),
Delay
or
Lack
of
Performance,
is
excluded by this policy and secured by a Performance
Bond .
. 14
Finally,
,Notice,
condition
10,
Cancellation
on
Thirty
Days'
can be a problem for the contractor and the
owner where
the
contract
prescribes
and both expect
that this insurance coverage will persist for 6 years.
See
appendix
A GC
20.1 ( a)
where
there
is
a
4 year
extension to the 24-month completed operation
requirement.
5.3
What to do with a contractor's liability insurance claim?
.1
The conditions of the contractor's liability policy are
straight forward:
operate
with
the
give written notice promptly and coinsurer
while
not
volunteering
obligations to the third party claimant .
.2
You have one year after judgment or settlement to sue
the insurer for indemnification.
6.
6.1
Course of Construction Property Insurance
Why is Course of Construction Property Insurance needed?
.1
Generally, the purpose of the policy is to, in the face
of risk of catastrophic physical damage to the project
site, assure its replacement without costly litigation
)
-22among all the participants at the project to allocate
fault.
Commonwealth
Construction
(1978) 69 D.L.R.
Co.
v.
Imperial
Oil
Ltd.
(3d) 558 at 563 (S.C.C.; DeGrandpre,
J. )
.2
The usual
contractor' s
liability policy excludes the
risks for repair and replacement of the project site
under the "care and control" clause.
See appendix H
CCDC 101 exclusion (h).
Special Lectures
of· the Law Society of Upper Canada
(1987) DeBoo p. 51 .
.3
The choice facing the owner is whether to purchase a
specified risks policy or an all-risk policy; because
the latter places the onus of proof of exclusions upon
the insurer, while the former leaves the onus of proof
that the loss fell within a specified peril upon the
insured,
the
usually the all-risk policy is perf erred by
owner.
See
appendix
A
GC
20.1(d)(1)
which
prescribes CCDC Form 201, which is appendix L.
Insurance and Bonding Considerations
(1984)
7
C.L.R.
223 at 236 .
.4
GC
20.1(d)
purchase
the
prescribes
course
of
that
the
contractor
construction
property
should
damage
insurance policy, but this conventional wisdom is now
being
questioned
where
a
renovation
contract
involved and there is a substantial prior existing
is
-23structure, and where the owner expects to be occupying
the
project
before
completion.
Yet,
it
is
still
customary for the contractor to pay the deductible as a
pass along cost of building.
See complications at GC
20.1(d)(3) for premature occupation.
Insurance and Bonding Consideration (1984) 7 C.L.R. 223
at 23l.
6.2
Which terms may be of concern in a course of construction
property policy?
.1
Regardless
of
who
acquires
the
policy,
all
the
participants on the job site, including subcontractors
should be named so that the risk of subrogation actions
is negated .
.2
The amount of the policy should be sufficient, in spite
of inflationary replacement costs, to remove the debris
and
replace
the
project
together
with
any
adjacent
property which is being renovated or incorporated into
the project.
GC 21.1 and GC 21.2 make the contractor
responsible for repair of the adjacent structure .
.3
CCDC 201 does not cover the risks of property damage to
the
project
occupation.
.4
While
GC
following
commencement
of
its
use
or
See Scope of Coverage (d)(ii) .
20.1(e)
requires
the
builder
to
provide
collision coverage on his vehicles and equipment, this
property
risk
is
excluded
from
the
usual
course
construction policy and is usually obtained by the
of
-24-
builder on an annual basis rather than a project basis.
It
is
important
that
the
owner
obtain
from
the
builder's collision insurer a waiver of subrogation of
claims on these policies •
.5
The most controversial term of this policy is No.9,
Perils
Excluded.
The
insurer
will
not
secure
the
obligations of GC 27 and 33 to provide quality labour
and
materials
professional
faulty
nor
is
the
policy
liability policy
design.
The
word
intended
covering
"faulty"
the
used
to
be
risks
in
a
of
this
exclusion is given a very wide meaning to exclude not
only
blameworthy
workmanship
and
design,
but
also
insufficient workmanship and design.
Simcoe
and
Willowbrooke
McDermid,
.6
Yet,
Erie
General
Homes
(1980)
Insurance
LL.R.
1-1236
v.
(A.C.A.;
J.)
while faulty workmanship,
are excluded,
policy.
Company
materials,
and
design
the resultant damage is covered by the
The law books are filled with cases trying to
sort out the distinction between the costs of repairing
faulty work and resultant damage.
Special Lectures of
the Law Society of Upper
Canada
(1987) DeBoo p.50.
Claims
Against
Building Contractors
for
Construction
Deficiencies (1983) 10 C.L.R. 35 at 39.
Bird Construction Co. etal v.United States Fire
-25Insurance
Co.
et
al
(1985)
18
C.C.L.I.
92
(S.C.A.;
Vancise, J .A. )
.7
If an owner wishes
to cover the risks of faulty or
improper design, a professional liability policy should
be considered;
see the earlier remarks at paragraphs
5.2(.6) to (.10).
If the owner is concerned about site conditions such as
sub-surface water or soil conditions, the owner should
consider
purchasing
a
difference
in
conditions
supplement.
Insurance and Bonding Consideration (1984)
7 C.P.L.R.
223 at 236 .
.8
For tradesmen who come on to the job site late and have
not been named on the original policy, they should take
care to complete CCDC Form 201-1.
6.3
See appendix M.
What to do with a claim against a course of construction
property policy?
.1
As
mentioned,
deductible.
.2
usually
the
contrac,tor
pays
the
See GC 20.1(d)(6) .
Statutory
condition
insurer.
For this purpose an interim Proof of Loss
(appendix J)
6
directs
pr;ompt
notice
to
the
can be initially filed with an eventual
final Proof of Loss (forms K and N) being filed sooner
than one year after the loss occurred •
.3
Losses are payable after 60 days following completion
of the final Proof of Loss, but the funds in the hands
-26of the owner and builders are charged with a builder's
lien claim by the tradesmen and suppliers who worked on
the job before the loss occurred.
See Builder's Lien
Act s.77.
Metro
Electrical
Contractors
Ltd
v.
Poorman
et
al
(1987) Sask. D. 2596-02 (S.Q.B.; McLellan, J.)
.4
The limitation period for commencing an action on the
policy
is
usually one
year
as
is
prescribed by the
statutory conditions for a Fire Policy (see appendix L,
statutory condition 14).
Special Lectures of
the Law Society of Upper
Canada
(1987) DeBoo p. 50.
7.
7.1
Wrap-up Insurance
Why is wrap-up insurance needed?
.1
With one insurer, the costs of duplicate coverage, the
risks
of
holes
in the coverage,
and the problems of
claims management are minimized .
.2
Also,
if
project,
management
there
as
are
is
a
number
of
the
·case
often
contract
is
in
place,
contractors
where
higher
a
on
the
project
liability
limits can be obtained on a wrap-up policy covering all
tradesmen
than
if
each
attempts
to
get
their
own
policy .
.3
with a wrap-up policy including the owner, consultant,
and all tradesmen on the project, the problems with
-27subrogation claims are erased .
.4
Finally, if the policy is taken out by the owner, the
owner can control the duration of the coverage after
considering the risk of "long tailed" liability claims .
.5
The
problem
with
a
warp-up
policy
is
that
often
builders already have a liability policy for which they
continue to pay premiums.
7.2
Which terms cause concern in a wrap-up policy?
.1
The risks of professional negligence and changing site
conditions must still be watched .
.2
Also if the builders are maintaining separate coverage
for
the
collision
risks
on
their
equipment
and
vehicles, a waiver of subrogation against the owner and
consultants is necessary .
.3
Administrative care must
still be taken to name the
owner, consultant and all builders .
.4
Legal
expenses
will
be
involved
traditional construction contract
in
eeDe
adjusting
2.
the
-29-
Canadian construction documents committee
1982 EDITION OF THE STIPULATED PRICE CONTRACT CCDC 2
Major revisions incorporated into the 1982 edition of Document 2 are found in GC 14 CERTIFICATES
AND PAYMENTS, paragraphs GC 14.12, GC 14.13, and GC 14.14; GC 19 INDEMNIFICATION, and
GC 20 INSURANCE, paragraph GC 20.1 (a). These revisions deal with:
(1) changes to the wording of the Waiver Clause;
(2) the limitation of liability for consequential damages, and
(3) the extension of insurance coverage regarding completed operations.
This edition of the Stipulated Price Contract combines, in one version, the four previous versions:
Architects; Engineers; Common Law, and Civil Code.
This has been achieved by combining Architects (CCDC 12) and Engineers (CCDC 2) into one
version, using the word "Consultant" to designate the Architect or Engineer, and by identifying
separately the Common Law and Civil Code requirements of the one clause that is different GC 14.12(c).
In the Committee's continuing effort to keep the wording of the standard documents clear and consistent, minor editorial changes have been made. These editorial changes do not change the intent of
. the document.
June 1982
-30-
Canadian construction documents committee
ADDENDUM
CCDC DOCUMENT 21 - A GUIDE TO
CONSTRUCTION INSURANCE
In the Standard Contracts GC 20.1 (a), specifying General Liability Insurance CCDC Form 101, allows
the Contractor to maintain such coverage either in the form of a specific policy purchased for a project or under an annual policy covering all operations, including Completed Operations Liability
coverage.
Because the 1982 edition of the CCDC Documents extends the obligation to maintain Completed
Operations coverage to twenty-four (24) months and for a further period of four (4) years,
users of the documents should be aware that specific policies are not generally available -with a
Completed Operations coverage duration beyond twenty-four (24) months. The obligation to maintain uninterrupted coverage can thus be satisfied by four (4) successive annual policies issued by the
insurer then writing Completed Operations Liability coverage for the Contractor.
Failure of the Contractor to provide the Completed Operations coverage during the six year period
after the date ofTotal Performance of the Work would put him in breach of contract.
June 1982
-31GC4
DELAYS
4.1
. If the Contractor is delayed in the performance of the Work by an act or omission of the Owner,
Consultant, Other Contractor, or anyone employed or engaged by them directly or indirectly, contrary to
the provisions of the Contract Documents, then the Contract Time shall be extended for such reasonable
time astheConsultant may decide in consultation with the Contractor. The Contractor shall be reimbursed
by the Owner for reasonable costs incurred by the Contractor asthe result of such delay.
4.2
If the Contractor is delayed in the performance of the Work by a stop work order issued by a court or other
public authority and providing that such order was not issued as the result of an act or fault of the Contractoror anyone employed or engaged by him directly or indirectly, then the Contract Time shall be extended
for such reasonable time as the Consultant may decide in consultation with the Contractor. The Contractor shall be reimbursed by the Owner for reasonable costs incurred by the Contractor as the result of such
delay.
4.3
If the Contractor is delayed in the performance of the Work by labour disputes, strikes, lock-outs
(including lock-outs decreed or recommended for its members by a recognized contractors' association, of
which the Contractor is a member or to which the Contractor is otherwise bound). fire, unusual delay by
common carriers or unavoidable casualties or, without limit to any of the foregoing, by a cause beyond the
Contractor's control, then the Contract Time shall be extended for such reasonable time as the Consultant
may decide in consultation with the Contractor, but in no case shall the extension of time be less than the
time lost as the result of the event causing the delay, unless such shorter extension be agreed to by the
.Contractor. The Contractor shall not be entitled to payment for costs incurred as the result of such delays
unless such delays are as the result of actions by the Owner.
4.4
No extension shall be made for delay unless written notice of claim is given to the Consultant not later than
fourteen (14) days after the commencement of delay, providing however, that in the case of a continuing
cause of delay only one notice of claim shall be necessary.
4.5
If no schedule is made underGC 2 - ADDITIONAL INSTRUCTIONS, no claim for delay shall be allowed
because of failure to furnish instructions until fourteen (14) days after demand for such instructions has
been made and not then unless such claim is reasonable.
4.6
The Consultant will not, except by written notice to the Contractor, stop or delay the Work pending
instructions or proposed changes in the Work.
GC5
OWNER'S RIGHT TO PERFORM WORK OR STOP THE WORK OR TERMINATE CONTRACT
5.1
If the Contractorshbuld be adjudged bankrupt, or makes a general assignment for the benefit of creditors
because of his insolvency or if a receiver is appointed because of his insolvency, the Owner may, without
prejudice to any other right or remedy he may have, by giving the Contractor or receiver or trustee in
bankruptcy written notice, terminate the Contract.
5.2
If the Contractor should neglect to prosecute the Work properly or otherwise fails to comply with the
requirements of the Contract to a substantial degree and if the Consultant has given a written statement to
the Owner and Contractor that sufficient cause exists, the Owner may notify the Contractor in writing that
he is in default of his contractual obligations and instruct him to correct the default in the five (5) working
day~ immediately following the receipt of such notice.
5.3
If the correction of the default cannot be completed in the five (5) working days specified, the Contractor
shall be in compliance with tbe Owner's instructions if he:
5.4
5.5
(a)
commences the correction of the default within the specified time, and
(b)
provides the Owner with an acceptable schedule for such correction, and
(c)
completes the correction in accordance with such schedule.
If the Contractor.fails to correct the default in the time specified or subsequently agreed upon, the Owner,
without prejudice to any other right or remedy he may have, may:
(a)
correct such default and deduct the cost thereof from any payment then or thereafter due the Contractor provided the Consultant has certified such cost to the Owner and the Contractor, or
(b)
terminate the Contractor's right to continue with the Work in whole or in part or terminate the
Contract.
If the Owner terminates the Contractor's right to continue with the Work under the conditions set out in
this General Condition, he shall:
(a)
be entitled to take possession of the premises and products and utilize the construction machinery
and equipment the whole subject to the rights of third parties, and finish the Work by whatever
method he may consider expedient but without undue delay or expense, and
(b) withhold further payments to the Contractor until the Work is finished, and
CCDC 2 - 1982
File 00710
11
-32(c)
upon Total Performance of the Work, charge the Contractor the amount by which the full cost of
finishing the Work as certified by the Consultant, including compensation to the Consultant for his
additional services and a reasonable allowance as determined by the Consultant to cover the cost of
corrections to work performed by the Contractor that may be required under GC 24 - WAR RANTY,
exceeds the unpaid balance of the Contract Price; however, if such cost of finishing the Work is less
than the unpaid balance of the Contract Price, he shall pay the Contractor the difference, and
(d) on expiry of the warranty period, charge the Contractor the amount by which the cost of corrections
to his work under GC 24 - WARRANTY exceeds the allowance provided for such corrections, or if
the cost of such corrections is less than the allowance, pay the Contractor the difference.
5.6
If a performance bond has been provided by the Contractor the provisions of this General Condition shall
be exercised in accordance with the conditions of such performance bond.
5.7
The Contractor's obligation under the Contract as to quality, correction and warranty of the work
performed by him up to the time of termination shall continue in force after such termination.
GC6
CONTRACTOR'S RIGHT TO STOP THE WORK OR TERMINATE CONTRACT
6.1
If the Owner should be adjudged bankrupt or makes a general assignment for the benefit of creditors
because of his insolvency or if a receiver is appointed because of his insolvency, the Contractor may,
without prejudice to any other right or remedy he may have, by giving the Owner or receiver or trustee in
bankruptcy written notice, terminate the Contract.
6.2
If the Work should be stopped or otherwise delayed for a period of thirty (30) days or more under an order
of a court or other public authority and providing that such order was not issued as the result of an act or
fault of the Contractor or of anyone directly or indirectly employed or engaged by him, the Contractor
may, without prejudice to any other right or remedy he may have, by giving the Owner written notice, terminate the Contract.
6.3
The Contractor may notify the Owner in writing, with a copy to the Consultant, that the Owner is in default
of his contractual obligations if:
(a)
the Consultant fails to issue a certificate in accordance with the provisions of GC 14 TIFICATES AND PAYMENT, or
CER-
(b) the Owner fails to pay the Contractor when due the amounts certified by the Consultant or awarded
by arbitration or court, or
(c)
the Owner violates the requirements of the Contract to a substantial degree and the Consultant
confirms by written statement to the Contractor that sufficient cause exists.
The Contractor's written notice to the Owner shall advise that if the default is not corrected in the five (5)
working days immediately following the receipt of the written notice the Contractor may, without prejudice to any other right or remedy he may have, stop the Work or terminate the Contract.
6.4
If the Contractor terminates the Contract under the conditions set out above, he shall be entitled to be paid
for all work performed including reasonable profit and for loss sustained upon products and construction
machinery and equipment and such other damages as the Contractor may have sustained as a result ofthe
termination of the Contract.
GC7
DISPUTES
7.1
Differences between the parties to the Contract as to the interpretation, application or administration of
this Contract or any failure to agree where agreement between the parties is called for, herein collectively
called disputes, which are not resolved in the first instance by decision of the Consultant pursuant to the
provisions of GC 3 -CONSULTANT, paragraphs 3.6 and 3.7, shall be settled in accordance with the requirements of this General Condition.
7.2
The claimant shall give written notice of such dispute to the other party no later than thirty (30) days after
the receipt of the Consultant's decision given under GC 3 - CONSULTANT, paragraph 3.7. Such notice
shall set forth particulars of the matters in dispute, the probable extent and value of the damage and the
relevant provisions of the Contract Documents. The other party shall reply to such notice no later than
fourteen (14) days after he receives or is considered to have received it, setting out in such reply his
grounds and other relevant provisions of the Contract Documents.
12
CCDC2 -
1982
FileOO710
-33GC 19
INDEMNIFICATION
19.1
The Contractor shall indemnify and hold harmless the Owner and the Consultant, their agents and
employees from and against claims, demands, losses, costs, damages, actions, suits or proceedings by
third parties that arise out of, or are attributable to, the Contractor's performance of the Contract
(hereinatter called "claims" l. provided such claims are:
(a)
attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property, and
(b) caused by negligent acts or omissions of the Contractor or anyone, for whose acts he may be liable,
and
(c)
made in writing within a period of six years from the date of Substantial Performance of the Work as
set out in the certificate of Substantial Performance of the Work, or within such shorter period as may
be prescribed by any limitation statute of the province or territory of the Place of the Work.
The Owner expressly waives the right to indemnity for claims other than those stated above.
19.2
The obligation of the Contractor to indemnify hereunder shall be limited to one million dollars per
occurrence from the commencement of the Work until Substantial Performance of the Work and
thereafter to an aggregate limit of one million dollars.
19.3
The Owner shall indemnify and hold harmless the Contractor, his agents and employees from and against
claims, demands, losses, costs, damages, actions, suits, or proceedings arising out of the Contractor's
performance of the Contract which are attributable to a lack of or defect in title or an alleged lack of or
defect in title to the Place of the Work.
19.4
Notwithstanding GC 1 - DOCUMENTS, paragraph 1.6, in the event of conflict between the provisions of
this General Condition and Article A-5 - RIGHTS AND REMEDIES paragraph (a) or GC 22 - DAMAGES
AND MUTUAL RESPONSIBILITY, the provisions of this General Condition shall govern.
GC 20 INSURANCE
20.1
Without restricting the generality of GC 19 - INDEMNIFICATION, the Contractor shall provide, maintain
and pay for the insurance coverages listed in this General Condition unless otherwise stipulated:
(a)
General Liability Insurance:
General liability insurance shall be in the joint names of the Contractor, the Owner, and the Consultant
with limits of not less than one million dollars inclusive per occurrence for bodily injury, death, and
damage to property including loss of use thereof, with a property damage deductible of five
hundred dollars. The form of this insurance shall be the latest edition of CCDC Form 101 and shall be
maintained continuously from commencement of the Work until twelve (12) months following the
date of Substantial Performance of the Work, as set out in the certificate of Substantial Performance
of the Work,or until the certificate of Total Performance of the Work is issued, whichever is the later,
and with respect to completed operations coverage for a period of not less than twenty four (24)
months from the date of Total Performance of the Work, as set out in the certificate of Total Performance of the Work, and thereafter to be maintained for a further period of four (4) years. Should
the Contractor decide not to employ Subcontractors for operations requiring the use of explosives for
blasting, or pile driving or caisson work, or removal or weakening of support of property, building or
land; CCDC Form 101 as required shall include Endorsement CCDC Form 101-2.
(b) Automobile Liability Insurance:
Automobile liability insurance in respect of licensed vehicles shall have limits of not less than one
million dollars inclusive per occurrence for bodily injury, death, and damage to property, in the following forms endorsed to provide the Owner with not less than fifteen (15) days written notice in advance
of any cancellation, change or amendment restricting coverage:
(1)
Standard non-owned automobile policy including standard contractual liability endorsement.
(2)
Standard owner's form automobile policy providing third party liability and accident benefits
insurance and covering licensed vehicles owned or operated byor on behalf of the Cpntractor.
Aircraft and Watercraft Liability Insurance:
Aircraft and watercraft liability insurance with respect to owned or non-ownedaircraft and watercraft
if used directly or indirectly in the performance of the Work, including use of additional premises, shall
be subject to limits of not less than one million dollars inclusive per occurrence for bodily injury, death,
.and damage to property including loss of use thereof and limits of not less than one million dollars for
aIrcraft passenger hazard. Such insurance shall be in a form acceptable to the Owner. The policies
shall be endorsed to provide the Owner with not less than fifteen (15) days written notice in advance
of cancellation, change or amendment restricting coverage.
18
CCDC 2 -
1982
File 00710
-34(d)
Property and Boiler Insurance:
, (1) All risks property insurance shall be in the joint names of the Contractor, the Owner and the
Consultant, insuring not less than the sum of the amount of the Contract Price and the full value,
as stated in the Supplementary Conditions, of products that are specified to be provided by the
Owner for incorporation into the Work, with a deductible not exceeding one percent of the
amount insured at the site of the Work. The form of this insurance shall be the latest edition of
CCDC Form 201 and shall be maintained continuously until ten (10) days after the date of Total
Performance of the Work, as set out in the certificate of Total Performance of the Work.
(e)
20.2
(2)
Boiler insurance insuring the interests of the Contractor, the Owner and the Consultant for not
less than the replacement value of boilers and pressure vessels forming part of the Work. The
form of this insurance shall be the latest edition of CCDC Form 301 and shall be maintained continuously from commencement of use or operation of the property insured and until ten (10) days
after the date of Total Performance of the Work, as set out in the certificate of Total Performance
of the Work.
(3)
Should the Owner wish to use or occupy part or all of the Work he shall give thirty (30) days written notice to the Contractor of the intended purpose and extent of such use or occupancy. Prior
to such use or occupancy the Contractor shall notify the Owner in writing of the additional
premium cost, if any, to maintain property and boiler insurance, which shall be at the Owner's
expense. If because of such use or occupancy the Contractor is unable to provide coverage, the
Owner upon written notice from the Contractor and prior to such use or occupancy shall provide,
maintain and pay for property and boiler insurance insuring the full value of the Work, as in subparagraphs (1) and (2), in CCDC Forms 201 and 301, including coverage for such use or occupancy and shall provide the Contractor with proof of such insurance. The Contractor shall refund
to the Owner the unearned premiums applicable to the Contractor's policies upon termination of
coverage.
(4)
The policies shall provide that, in the event of a loss or damage, payment shall be made to the
Owner and the Contractor as their respective interests may appear. The Contractor shall act on
behalf of the Owner and himself fo,' the purpose of adjusting the amount of such loss or damage
payment with the Insurers. When the extent of the loss or damage is determined the Contractor
shall proceed to restore the Work. Loss or damage shall not affect the rights and obligations of
either party under the Contract except that the Contractor shall be entitled to such reasonable extension of Contract Time relative to the extent of the loss or damage as the Consultant may
decide in consultation with the Contractor.
(5)
Payment for loss or damage:
.
The Contractor shall be entitled to receive from the Owner, in addition to the amount due under
the Contract, the amount at which the Owner's interest in restoration of the Work has been appraised, such amount to be paid as the restoration of the Work proceeds and in accordance with
the requirements of GC 13 -APPLICATIONS FOR PAYMENT and GC 14 - CERTIFICATES
AND PAYMENTS. In addition the Contractor shall be entitled to receive from the payments
made by the Insurer the amount of the Contractor's interest in the restoration of the Work.
(6)
The Contractor shall be responsible for deductible amounts under the policies except where such
amounts may be excluded from the Contractor's responsibility by the terms of GC 21 - PROTECTION OF WORK AND PROPERTY and GC 22 - DAMAGES AND MUTUAL RESPONSIBILITY.
(7)
In the event of loss or damage to the Work arising from the work of an Other Contractor, the
Owner, in accordance with his obligations under GC 9 - OTHER CONTRACTORS, paragraph
9.2, shall pay the Contractor the cost of restoring the Work as the restoration. of the Work
proceeds and in accordance with the requirements of GC 13 - APPLICATIONS FOR PAYMENT
and GC 14 - CERTIFICATES AND PAYMENTS.
Contractors' Equipment Insurance:
All risks contractors' equipment insurance covering construction machinery and equipment used by
the Contractor for the performance of the Work, including boiler insurance on temporary boilers and
pressure vessels, shall be in a form acceptable to the Owner and shall not allow subrogation claims by
the Insurer against the Owner. The policies shall be endorsed to provide the Owner with not less than
fifteen (15) days written notice in advance of cancellation, change or amendment restricting
coverage. Subject to satisfactory proof of financial capability by the Contractor for self-insurance of
his equipment, the Owner agrees to waive the equipment insurance requirement.
Unless specified otherwise the duration of each insurance policy shall be from the date of commencement
of the Work until the date of Total Performance of the Work, as set out in the certificate of Total
Performance of the Work.
ceDC 2 -- 1932
Fili; 00710
-3520.3
The Contractor shall provide the Owner with proof of insurance prior to commencement of the Work and
shall promptly provide the Owner with a certified true copy of each insurance policy exclusive of information pertaining to premium or premium bases used by the Insurer to determine the cost of the insurance.
20.4
If the Contractor fails to provide or maintain insurance as required in this General Condition or elsewhere in
the Contract Documents, then the Owner shall have the right to provide and maintain such insurance and
give evidence thereof to the Contractor and the Consultant. The cost thereof shall be payable by the Contractor to the Owner on demand or the Owner may deduct the costs thereof from monies which are due or
may become due to the Contractor.
GC 21
PROTECTION OF WORK AND PROPERTY
21.1
The Contractor shall protect the Work and the Owner's property and property adjacent to the Place of the
Work from damage and shall be responsible for damage which may arise as the result of his operations
under the Contract except damage which occurs as the result of:
(a)
errors in the Contract Documents;
(b) acts or omissions by the Owner, the Consultant, Other Contractors, their agents and employees.
21.2
Should the Contractor in the performance of this Contract damage the Work, the Owner's property or
property adjacent to the Place of the Work, the Contractor shall be responsible for the making good of
such damage at his expense.
21.3
Should damage occur to the Work or Owner's property for which the Contractor is not responsible as
provided in paragraph 21.1 he shall make good such damage to the Work and if the Owner so directs to the
Owner's property and the Contract Price and Contract Time shall be adjusted in accordance with GC 11 CHANGES IN THE WORK, and the value of the changes shall be determined in accordance with GC 12 VALUATION AND CERTIFICATION OF CHANGES IN THEWORK.
GC22 DAMAGES AND MUTUAL RESPONSIBILITY
22.1
If either party to this Contract should suffer damage in any manner because of any wrongful act or neglect
of the other party or of anyone for whom he is responsible in law, then he shall be reimbursed by the other
party for such damage. The party reimbursing the other party shall be subrogated to the rights of the other
party in respect of such wrongful act or neglect if it be that of a third party.
22.2
Claims under this General Condition shall be made in writing to the party liable within reasonable time after
the first observance of such damage and may be adjusted by agreement or in the manner set out in GC 7
- DISPUTES.
22.3
If the Contractor has caused damage to an Other Contractor on the Work, the Contractor agrees upon
due notice to settle with such Other Contractor by agreement or arbitration, if he will so settle. If such
Other Contractor sues the Owner on account of damage alleged to have been so sustained, the Owner
shall notify the Contractor and may require the Contractor to defend the action at the Contractor's
expense. If a final order or judgment against the Owner arises therefrom the Contractor shall payor satisfy
it and pay the costs incurred by the Owner.
22.4
If the Contractor becomes liable to payor satisfy a final order, judgment or award against the Owner then
the Contractor, upon undertaking to indemnify the Owner against any and all liability for costs, shall have
the right to appeal in the name of the Owner such final order or judgment to any and all courts of competent jurisdiction.
BONDS
T~.eGontractorShallpromptly provide to the Owner the surety bonds called for in the tender documents .
.>;.q~u;.~.'>·
·.$uchbondsshall be issued by a duly licensed surety company authorized to transact a business of
suretyship in the province or territory of the Place of the Work and shall be maintained in good standing
untjlthe fulfillment of the Contract. The form of such bonds shall be in accordance with the latest edition
olthe CCDC approved bond forms.
GC 24 WARRANTY
24.1
The Contractor shall be responsible for the proper performance of the Work only to the extent that the
design and specifications permit such performance.
24.2
Subject to paragraph 24.1 the Contractor agrees to correct promptly, at his own expense, defects or
deficiencies in the Work which appear prior to and during the period of one year from the date of Substantial Performance of the Work, as set out in the certificate of Substantial Performance of the Work, or such
longer periods as may be specified for certain products or work.
24.3
During the period provided in GC 3 - CONSULTANT, paragraph 3.2, the Consultant shall promptly give
the Contractor written notice of observed defects and deficiencies.
20
CCDC2 -
1982
FileOO710
-3624.4
The Contractor agrees to correct or pay for damage resulting from corrections made under the
requirements of paragraph 24.2.
GC 25
CONTRACTOR'S RESPONSIBILITIES AND CONTROL OF THE WORK
25.1
The Contractor shall have complete control of the Work and shall effectively direct and supervise the Work
so as to ensure conformance with the Contract Documents. He shall be solely responsible for construction
means, methods, techniques, sequences and procedures and for co-ordinating the various parts of the
Work under the Contract.
25.2
The Contractor shall be solely responsible for construction safety at the Place of the Work and for
compliance with the rules, regulations and practices required by the applicable construction safety
legislation.
25.3
The Contractor shall have the sole responsibility for the design, erection, operation, maintenance and
removal of temporary structural and other temporary facilities and the design and execution of construction methods required in their use. The Contractor shall engage and pay for registered professional
engineering personnel skilled in the appropriate disciplines to perform these functions where required by
law or by the Contract Documents and in all cases where such temporary facilities and their method of
construction are of such a nature that professional engineering skill is required to produce safe and
satisfactory results.
25.4
Notwithstanding the provisions of paragraphs 25.1 and 25.3, or provisions to the contrary elsewhere in the
Contract Documents where such Contract Documents include designs for temporary structural and other
temporary facilities or specify a method of construction in whole or in part, such facilities and methods
shall be considered to be part of the design of the Work and the Contractor shall not be held responsible
for that part of the design or the specified method of construction. The Contractor shall, however, be
responsible for the execution of such design or specified method of construction in the same manner that
he is responsible for the execution of the Work.
25.5
The Contractor shall review the Contract Documents and shall promptly report to the Consultant any
error, inconsistency or omission he may discover. Such review by the Contractor shall be to the best of his
knowledge, information and belief and in making such review the Contractor does not assume any responsibility to the Owner or the Consultant for the accuracy of the review. The Contractor shall not be liable for
damage or costs resulting from such errors, inconsistencies or omissions in the Contract Documents
which he did not discover. If the Contractor does discover any error, inconsistency or omission in the
Contract Documents he shall not proceed with the work affected until he has received corrected or missing information from the Consultant.
25.6
The Contractor shall prepare and update as required a construction schedule indicating the timing of the
major activities of the Work. The schedule shall be designed to ensure conformance with the required
Contract Time. The schedule shall be submitted to the Owner and the Consultant for their information
within a reasonable time from the date of Contract award. The Contractor shall monitor the progress of the
Work relative to the schedule and advise the Consultant of any revisions required as the result of delays as
provided in GC 4 - DELAYS, indicating the results expected from the resultant change in schedule.
GC 26
SUPERINTENDENCE
26.1
The Contractor shall employ a competent supervisor and necessary assistants who shall be in attendance
at the Place of the Work while work is being performed.
26.2
The supervisor shall be satisfactory to the Consultant and shall not be changed except for good reason and
only then after consultation with the Consultant.
26.3
The supervisor shall represent the Contractor at the Place of the Work and instructions given to him by the
Consultant shall be held to have been given to the Contractor. Important instructions shall be confirmed to
the Contractor in writing; other instructions shall be so confirmed if requested.
GC 27
LABOUR AND PRODUCTS
27.1
Unless otherwise stipulated elsewhere in the Contract Documents, the Contractor shall provide and pay
for labour, products, tools, construction machinery and equipment, water, heat, light, power, transportation and other facilities and services necessary for the performance of the Work in accordance with the
Contract.
27.2
Products provided shall be new unless otherwise specified in the Contract Documents. Products which are
not specified shall be of a quality best suited to the purpose required and their use subject to the approval
of the Consultant.
27.3
The Contractor shall maintain good order and discipline among his employees engaged on the Work and
shall not employ on the Work anyone not skilled in the task assigned to him.
CCDC 2 _.- 1982
File 00710
21
-3732.4
The Consultant may order any part or parts of the Work to be specially examined should he believe that
such work is not in accordance with the requirements of the Contract Documents. If, upon examination
such work be found not in accordance with the requirements of the Contract Documents, the Contractor
shall correct such work and pay the cost of examination and correction. If such work be found in
accordance with the requirements of the Contract Documents, the Owner shall pay the cost of examination and replacement.
32.5
The Contractor shall furnish promptly to the Consultant two (2) copies of certificates and inspection
reports relating to the Work.
GC 33
REJECTED WORK
33.1
Defective work, whether the result of poor workmanship, use of defective products, or damage through
carelessness or other act or omission of the Contractor and whether incorporated in the Work or not,
which has been rejected by the Consultant as failing to conform to the Contract Documents shall be
removed promptly from the Place of the Work by the Contractor and replaced or re-executed promptly in
accordance with the Contract Documents at the Contractor's expense.
33.2
Other Contractors' work destroyed or damaged by such removals or replacements shall be made good
promptly at the Contractor's expense.
33.3
If in the opinion of the Consultant it is not expedient to .correct defective work or work not performed in
accordance with the Contract Documents, the Owner may deduct from the monies otherwise due to the
Contractor the' difference in value between the work as performed and that called for by the Contract
Documents, the amount of which will be determined in the first instance by the Consultant.
GC 34 SHOP DRAWINGS
.· ••
34.1
The term "shop drawings" means drawings, diagrams, illustrations, schedules, performance charts,
brochures and other data which are to be provided by the Contractor to illustrate details of a portion of the
Work.
34.2
The Contractor shall arrange for the preparation of clearly identified shop drawings as called for by the
Contract Documents or as the Consultant may reasonably request.
34.3
Prior to submission to the Consultant the Contractor shall review all shop drawings. By this review the
Contractor represents that he has determined and verified all field measurements, field construction
criteria, materials, catalogue numbers and similar data or will do so and that he has checked and coordinated each shop drawing with the requirements of the Work and of the Contract Documents. The
Contractor's review of each shop drawing shall be indicated by stamp, date, and signature of a responsible
person.
34.4
The Contractor shall submit shop drawings to the Consultant for his review with reasonable promptness
and in orderly sequence so as to cause no delay in the Work or in the work of Other Contractors. If either
the Contractor or the Consultant so requests they shall jointly prepare a schedule fixing the dates for subMissionan<:ireturnof shop drawings. Shop drawings shall be SUbmitted in the form of reproducible
;3.;';,'.}:t~\~~w;3Ii~e;tigPJ:;libds~~:~yO~:~:~~~n~~~.~;:~~~t.~~:;~~so:r~~7~~s~~~~~:~~~:;a6:~~~ht~~~:~
.ii{~~.~';;;~~;~~A;~~t~nt(~illiteviewandretUrtlShOPdrawings
'o,~~~t~!~e'NjtJr'reC3$~nablepromptnesssoas
in accordance with any schedule agreed lJPOh, or
.to cause no delay. The (;onsultant's review Will be for
. , } ) ·F?nfl)rrnity.~(rtli~~esignc;:onceptand tor general arrangement only and such review shall {lot relieve the
'<"'~qNrfl?t~t,otre$POIl$ipilityfOr errors or omissions in the shop. drawings or' of responsibility for meeting all
..ii'<'r~~lJir~rtJe;,tsOf.J/;1lilP()ntra9t,OocumEmts unless a deviation on the shop drCiwings has been approved in
,i/.';'
/';: ~;i,;~\1~~~;~';s';,8.it~~\W~~r~~~~,~~;ir~1~e<a'nYchaf)g~s.inshOp·..<Jrawingswhich. the .. ConslJltant may. requite' consistent·
. with the ContraGt Documents and resubmit unless otherwise directed by the Consultant. When resubmittingithe .Contractor shall notify the Consultant in writing of any revisions other than those requested by
the Consultant.
GG 35 . CASH
ALLOWANCES
.
.
35.1
The Contract Price includes cash allowances stated in the Contract Documents.
35.2
Cash allowances, unless otherwise specified, cover the net cost to the Contractor of services, products,
construction machinery and equipment, freight, unloading, handling, storage, installation and other
. authorized expenses incurred in performing the work stipulated under the cash allowances.
35.3
The Contract Price, and not the cash allowances, includes the Contractor's overhead and profit in
connection with such cash allowances.
CCDC 2 - 1982
File 00710
23
~2
>M·'·'.
THE SASKATCHEWAN
Amount
_
~~~;RNMENT
OFFI~~pu<.U"O <":13'
INSURANCE
Premium
CASUALTY DEPARTMENT
_
APPLICATION FOR CONTRACT OR BID BOND
1. Full name of Applicant
_
~-_:_.,.,_------
2. Business address
(Sit... _04 No.)
Performance Bond, $..
4. To whom is bond to be given?
(Ponal Code)
(Pmy.)
(City or TOWD)
3. Kinds and amounts of bonds required: Bid Bond, $._..
.; Maintenance Bond, $...
;
; Labour and Material Bond, $..
_
Address
(s......
aD4 No.)
(CIt. or TOWD)
(1'roY.)
S. Nature of Contract (Give concise description of proposed work and location)
_
6. If bond applied for is a Bid Bond answer theso questions:
______,.19__
Date bids will be opened
Approximate amount of bid, $
7. If bond applied Eor is a Performance Bond answer these questions:
The Amount oE Contract is: $
D~te awarded
Name oE Architect or Engineer in charge
.
_
_
.... 19_
_
Address
:(S_ aD4 No.)
(CIt)' or TOWD)
What is his estimate of cost of work? $
(Prov.)
Your estimate $
_
List Other Bidders on above contract: (Use leparaJe Iheet oj paper. i/ necessary)
NAMl!:
~---B:..ID:........---
..:.AD=D..:.RESS=:........
1.
2.
$
$
8. When must work begin?
When must work be completed?
9. What' is the penally for non-Completion on time?
_
Premium for advance completion?
_
What percentage retained?
_
10. When will contract payments ba made?
11. How do you propose to finance this project?
_
For what period?
12. What portion of work will be guaranteed by applicant?
Is this Maintenance guarantee limited to "defects in workmanship or materials"?
_
13. Approximately how much of this contract will ba Sublet $
principal Subcontracts:
Character of Work
AmOUDt
_
If so. in what amount? $
Will separate Maintenance Bond be required?
_
Describa below the
'Addr...
Name 01 SlIbcontnctor
U Bonded. B7 Whom!
14. Giva information below about all your Contract Work Under Way, or for which you arc committed.
(1/ more than/our controea under way. tabulate them on leparaJe paper and attach hereto.)
KInd of
ConstruCtion
LocaUon of Work
Contract.
Pllce
Actual
Payment thus
Far Received
Earned
ReWned
.Percenta,e
Expected
Completion
Date
Name and Address
Engineer or -Architect
I
15. Has any other company declined this bond? _ _.,__ Name of Company _
16. List the insurance ~hat will be carried on this contract:
Fire $
_
__
.___ Compensation
(Amount.)
_.._ _
_
.
_ _ __
(Compaoy)
(Company)
Public Liability and Properly Damage $.._...._ ...._ ..._.
(Limiu)
Agent"s Stamp
j
(Company)
Date
(OVI!R)
l~_~_.
-39-
0·'
In consldcrahon
The Saskalchewan Govetnment Insurance Office. hereinafter called the "Surely", execullng the bond or anyone of the
bonds herein applied for. Ihe undersigned covenants and agrees with the Surety. as 'ollows:
First. 10 pay tne Surety Immediately an inihal premium of 5
. f~1
fbi
fcl
it being understood and agreed:
that.lhisprem'~m 's s~biect to renewal·and adjustment in conform,ly wilh !he S~iety's approved SChed~le of Rates.
Ihal renewal or continuation premiums are 10 be paid annually as long as liability on Ihe bond or bonds Shall continue and until Ihe
Undersigned shall deliver to the Surely af tis Head Office in Regina. Saskatchewan. written evidence satisfactory to the Surety- of its
discharge from such liability.
that. sho~ld Ihe ,nilial premi~m be comp~led by ~sing Ihe rate per S 1.000 of contract p"ce. and sho~ld Ihe final contract price be
increased or decreased from the amount upOn which the initial premium is based. the Undersigned will pay the Surety an addilional
premium or be entitled 10 receive from the Surely a return premium based upon the actual contract price as finaJly determined.
Second. 10 indemnify Ihe Surety against all 1055. costs, damages. expenses and solicitor and counsel fees whatever. and any andalt liability
therefor. s~stained or inc~rred by Ihe S~rety by reason of exec~ting of said bond or bonds. or any of them. in making any investigaliOn on acco~nt
thereof. in prosecuting or defending any aclion brought in connecHon Iherewith, in obtaining a release Iherefrom. and in enforcing any·of Ihe
agreements herein contained:
Third. that the S~rely shall have the righl. and is hereby a~thorized b~1 nOI req~ired: fal In the event of any abandonment or lorfeilure of the
contract g~aranleed by said contracl bond or of any breach of said contracl bond. to lake possesSion of the WOtk under said contract. and at the
expense of Ihe ~ndersigned 10 complete. or to contraCI for Ihe completion of the same. or 10 consent 10 the retelling or complelion thereof by the
Obligee in said conlract bond: fbI To adj~st. sellie or comp<omise any claim. demand. s~il or j~dgment ~POIl said bond or bondS. or any of them.
~nless the ~ndersigned shall req~est the S~rety to litigate s~ch claim or demand. or to defend S~ch s~~. or 10 appeal from s~ch i~dgmenl. and shall
depoSit with Ihe &rely. al Ihe time of s~ch req~est. cash or collaleral Satisfactory to it in kind and amount. to be USed in paying any judgment or
j~dgmenls rendered or Ihal may be rendered. with inleresl. cosls and solicitor and co~nset fees: fcl To fiN up any blanks left herein. and to correct
any errors in Ihe description of said bond or bonds. or any of them. or in said premi~m or premiums. it being hereby agreed lhal such .insertions or
corrections. when SO made. shall be prima facie correct:
Fourth. 10 assign. transfer and set over. and does or do hereby assign. Iransfer and set over 10 Ihe Surely. as collaleral. to secure the
obligalions herein and any olher indebledness and liabilities of the ~ndersigned to the S~rely. whether heretofore 0( hereafter inc~rred. such
assignmenl to become ellective as of the date 01 said contract bond b~1 only in Ihe event of (t) any abandonmenl. lorleil~re 0( breach of said
conlract ot of any breach 01 said bond or bonds. or any of Ihem. or of any other bond or bonds exec~ted 0( proc~red by the Surely on behall of
the ~nderSigned: ot (2) 01 any breach of the agreements herein conlained: or (31 01 a defaull in dischatging such other indebtedness or liabilities
when d~e: or (4) 01 any assignment by Ihe ~ndersigned for Ihe benefil of credilors. ot of the apPOintmenl. or of any application 10( Ihe appointment.
of a receiver or Ir~slee rot the ~nderSigned. whether insolvenl or not: or (5) of any proceeding which dep<ives Ihe underSigned of the ~se of any of
Ihe machinery. eq~ipment. plant. lools ot malerial referred to in the following paragraph: or (6) of the underSign's dying. absconding. becoming a
f~gitive from jusliCe. or being convicted of a lelony or indictable oflense. if Ihe ~ndersigned be an individual: (II} All the right. lille and interest 01 Ihe
undersigoed in and to aN s~b'contracts fet Of to be let in connectiOn with said conlract and in and to all machinerY. eauioment. Dlant. lools and
materials whiCh are now Of may hereafter be. about 0( ~pan the Site of said WOtk Of elsewhere. for !he purpose lhefeof. including as wei.
malerials purchased for or Chargeable to· such contracl. which ·may be in process 01 constr~ction. or on stOfage elSewhere. or in transportalion 10
said sile: fbI AR Ihe righls of Ihe undersigned in. and growing in any maMer out 01. said conlract. Of any extensions. modifications, changes Of
alleratiOns lhefeof 0( additiOns therelo. Of in. Of growing in any manner o~t of. said bond or bonds. 0( any of them: (c} M actiOns. causes 01
actions. claims and demands whatsoever which Ihe undersigned may have or acq~ire against any subcontractor, laborer 0< material man, or any
person furnishing or agreeing to I~rnish or s~pply labor. material. s~pplies. machinery. tools 0( other equipment in connection with 0( on accounl of
said confract: ,dl Any and alt percentages retained on account 01 said conlract. and any and aU sums that may be due under said contract at the
lime of such abandonment. forfe~ure Of breach. or that therealler may become d~e:
Fifth. Ihat if for any reason the company shalt deem it necessary to enforce any assignmenl. transler 0( conveyance as provided In subsectiOn
"Fourth" hereof. the ~ndersigned hereby expressly a~lhorizes and empowers any person or persons designated by the Surely to execute in the
name 01 the undersigned any instr~ment Of inslr~menls necessary and req~isile to secure absol~te tiUe to the Surely 01 any lundS. properly. and10r
rights assigned. transferred and conveyed in said s~bsection: .
Sixth. lhal Ihe liabilily here~nder shall. extend 10. and incl~de. the f~1I amo~nl of any and all s~ms paid by Ihe &rety in seUlemenl Of
compromise of any claims. demands. s~its and j~dgments ~POn said bond or bonds. or any of Ihem, in good lailh. under the belielthat it was liable
Ihere!or. whether liable or not. as well as of any and all disbursements on acco~nl of costs. expenses and solicitOf and counsel lees. as alOfesaid.
which may be made ~nder the belielthat such were necessary. whether necessary or nof:
Seventh. that in evenl of paymenl. seUlement or compromise. in good faith. of liabilily. loss. costs. damages. expenses and soIicitOf and
counsel fees. claims. demands. s~~s and j~dgmenls as aforesaid. an ilemized stalement thereof. sworn to by any oflicer 01 the Surely, Of the
voucher or vouchers or other evidence 01 S~ch payment. seltlement or compromise shall.be prima facfe evidence of the lact and extent ollhe
liability 01 Ihe ~ndersigned. in any claim or s~it hereunder. and in any and all mailers arising between Ihe underSigned and the Surely:
Eighlh. 10 waIve. and does or do hereby waive. all rights t~ 'claim any property. including homestead,
other legal process under the law of any province Of provinces.:
as exempt Irom levy, execution. sale 0(
Ninlh. that this obligation shan. in aU its terms and agreemenlS. be for the benefit of and prOlect any person 0( company joining wi!h the Surely
inexec~ling said bond or bonds or any of them. 0( exec~ling. atlhe req~est of Ihe S~rely. said bond Of bonds, Of any of Ihem. as wen as any
company or companies assuming reinsurance thereupon:
Tenth. lhal separate s~its may be bro~ght hereunder as cwses of action. accr~e. and Ihe bringing 01 suI! or the recovery 01 j~dgment upan any
cause of actiOn shall not prei~dice or bar the bringing 01 other s~ils ~pan olher ca~ses of actiOn. whe!her heretolore Of.therealler arising:
Etevenlh. that nothing herein conlained shall be considered 0( conslr~ed to waive. abridge. Of diminish any right 0( remedy whiCh Ihe &rety
might have if Ihis instrument were not exec~ted:
.
Tweffth. that Ihe S~rety shall have Ihe right to decline to execule said bond or bonds. or any of !hem. and if ~shaII execute a bid bond. it shan
have the right 10 decline to exec~te any or an of the olher bondS herein or otherwise applied fOf without incurring any Iiabililywhatsoever 10 the
undersigned.
Thirteenth. Ihal the convenanlS and agreements hereinbefore contained apply to the bond 0( bondS herein applied for. aU renewals and
lhereof. to an bondS executed by the &rely in s~bstit~tion therefO( and if the w~hin appUcation relates to a Bid Bond only, and the
Surely. herealler exec~tes a conlract or'and Maintenance Bond at the req~esl 01 the undersigned covering the undertaking to which the Bid Bond
relates. to an s~ch contracls and Mainlenance BondS. their renewals and continuatiOns and bonds executed by the S~rely in substit~tion thereof.
contin~ations
Signed. sealed and dated this
_
dayof
,19
It Principal an Individual seal and sign here:
Witness:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _(Se;ll)
II " Coparillcrship seal and sign here:
(Name or Firm)
Witness:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ISeal)
lindividuaHy and as a coparlner!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _(Seal}
(Indivtdually and as a copatlner)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Seal}
IlndividuafCy and as a coparlnerl
It Corporation seal and sign here:
_ _ _ _ _ _ (Seal)
(Name of cOIPorahonl
Allest:
,Secretaryl
By
(Presldenll
_
-40-
Bid
·:.,,\atrhe\\':.ln
. ~\)':crnJnl'nt
! n~ nra fH:('
Bond
C);Ite of Proposal
DO
MM
:':'::0 • llitl ;\ ...· e
:':;-9'(:··.·5015"-
r~mn
Her'?ioafler Calice
"j jH~ Sl.H~
Premium
Included
YY
Obligee:
Number
Principal:
Nature of Undertaking
'"C'P~
Know All Men By :-hp~e PrE'sents that the Principal and the Surety are held and firmly bound unfo the Obligee in the penal sum shown above. lawful
money of Canada. for the payment 01 which sum. well and truly to I ' made. the aforementioned Principal binds himself. his heirs. executors. administrators (successors il the Principal is a Corporation) and assigns and 1I,,, .: .• ementioned Surety binds itself. its successors and assigns. jointly and
severally. firmly by these presents.
.
Whereas the said Principal is submitting to the Obligee herewith a proposal dated the day shown above for the performance of the undertaking indicated
above. which proposal is made part hereof as Ihough expressly incorporated herein.
.
Now, Therefore. The Condition Of This Obligation is such thaI it the aforesaid Principal shall have the tender accepted within sixty (60) days Irom the
Closing date of tender and the said Principal will. within Ihe time required. enter into a tormal contract and give the specified security to secure the perlormance of the terms and conditions of the contract. then this obligation shall be null and void: otherwise the Principal and Surety will pay unto the
Obligee the dillerence in money between the amount ot the bid of the said Principal and the amount lor which the Obligee legally contracts with another
party 10 perlorm the work il the latter amount be in excess of the former.
The Principal and the Surety shall not be liable for a greater sum than the specified penalty of this Bond.
Any suit under this Bond must be instituted before Ihe expiration of six months from the date of this Bond.
Signed and sealed on the date above shown.
tlndividual)
Witness:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _(Seal)
.(Name of lum)
Witness:
::-:--::-::::-:-:-::-:--:-
(Seal)
(IndiVIdually and as a co-panner I
::-::-:=--:7.'~-;-----------------(Seal)
(Individually and as a co·pa,tner}
==-:7':'::-::-:-=-:-.-
(Name 01 corporation)
By
Allest
Secretary
President
Saskatchewan Government Insurance
by ils Authorized Ollicer
AUlhorized Ol!,i.oe.
(Seal)
,Z)
SISI/I//
-41..
--.-------
Saskatchewan
Govcrnnlcnt
Insurancc
--------------------------------------------Head Office
2260 - 11 ttl Avenue
Flegina, Saskatchewan
S4P OJ9
Tel: (306) 565-1200
Telex: 0712417 SGI HO REG
Contractor:
Description of Project:
:;;lO'lld it be required, we, the undersigned Surety Company, do
hereby consent and agree to become bound as Surety inan approv~d
Performance Bond and/or Labour and Material Payment Bond in such
amount as may be_ requi red -for the ful fillment of the contract for
the works named in the annexed specifications which may be awarded
to the contractor indicated above in respect to the project described
above at a price set forth in the attached tender.
It is a conditi on of this Consent of Surety that if the requi red
Bond or Bonds are not called for within sixty (60) days from the closing
date of the tender described above, this Consent of Surety shall be null
and void.
Dated the date above shown.
Yours very truly,
SASKATCHEWAN GOVERNMENT INSURANCE
Sa~katehewan
Performanc~
-42-
Bond
q
rnment
I l'b",ra nee
55/11// e
2260 11th Ave
Regina. Sask
Hereinafter Called The Surety
)
COolf3Ct Date
00
MM
Obligee
Principal
yy
I
$
jHCIClUa11p.f called the
."",".."" ~.
i
Ofl~i'\de",,;"g ~
Bond Number
BO
F/
OOh~eCI
r
,., "t7
()/
"""",,
if'
Sum
~mi,.,;l
1
rf\
Agent
(I
I
.+-1'.1
Number
f-J
0
1
n
V
(0
-
,
-;
./
KNOW ALL MEN BY THESE PRESENTS that the Principal and the Surety are held and firmly bound unto the Obligee in the sum
shown above. lawful money of Canada. for the payment of whIch sum. well and truly to be made. the Principal and the Surety bind
himself. his heirs. executors and administrators or successors. if the PrincIpal is a corporation. and assigns and the Surety binds
itself. its successors and assigns. jointly and severally. firmly by these presents.
WHEREAS. the Principal has entered into a written contract with the Obligee. dated the date shown above for the performance
of the undertaking indicated above in accordance With the Specifications and Drawll1gs submitted therefor which contract.
Specifications and Drawings are by reference made part hereof and are hereinafter referred to as the Contract
NOW. THEREFORE. THE CONDITION OF THIS OBLIGATION is such that if Principal ~hall promptly and faithfully perform the
Contract. then this obligation shall be null and void: otherwise it shall remain in full force and effect
Whenever the Principal shall be. and declared by the Obligee to be. in default under the Contract. the Obligee having performed
the Obligee's obligations thereunder. the Surety may promptly remedy the default. or shall promptly
(1) Complete the Contract in accordance with its terms and conditions. or
(2) Obtain a bid or bids for submission to the Obligee for completing the Con'ract 111 Iccordance with its terms
and conditions. and upon determination by the Obligee and Surety of the lowest responSIble bidder. arrange for a contract
between SUCh bidder and the Obligee and make available as work progresses (even though there should be a default or a
successio'n of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay
the cost of completion less the balance of the contract price: but not exceeding. including o,ther costs and damages for which
the Surety may be liable hereunder. the amount set forth above as the Sum. The term "balance of the contract price:' as used
in this paragraph. shall mean the total amount payable by the Obligee to the Principal under the Contract. less the amount
properly paid by the Obligee to the Principal.
Any suit under this Bond must be instituted before the expiration of two (2) years from the date on which final payment under the
Contract falls due.
The Surety shall not be liable for a greater sum than the specified penalty of thiS Bond.
No right of action shall accrue on this Bond to or for the use of any person or corporation other than the Obligee named herein or
the heirs. executors. administrators or successors of the Obligee.
In witness whereof the Principal who is an individual or partnership has subscribed his name and set his seal and the Principal who
is a corporation and the Surety have caused their respective corporate seals to be affixed attested under the hands of their respective
proper officers in that behalf the day and year first above written.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Seal)
Signed and sealed on the date shown above
Signed. Sealed and Delivered in the presence of
Witness
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Seal)
::---,----,_ _-::Saskatchewan Government Insurance
By its Authorized Officer
:'ultlOrizcd Officer
(Seal)
Labour and Materia.l
Payment Bond
Saskale!leW;l1l
)vcrlllllcnt
Ak~m&&Jii
;,l1:iB*
e:;e
&"Ii14IM
MM
yy
•
eW.··HM'
9
p"k'n.' J·'.I~~
,; . ,
"~
.....
Agent
~
V
;-19.,.'
Sun't)'
Bond
BO
Sum
$
Obligee (Hereinafter called the Obligee)
GS:/f/1jI
Regina, Sask.
Hereinafter Called The
Conltact D:lh!
DO
S
226011 th Avo, .
• IlSUfclncc
(GenerZlI Form)
•
,..
Number
Number
r\
Natme of "Ode'''ki0 9#----------·---------------------,--...e--------------1
Know all men by these presents that the Principal and the Surety are !leld and firmly bound unto the Obligee. for the use and benefit of claimants as hereinbelow
defined, in the amount shown above, lawful money Of Canada. lor the payment of which sum, well and Iruly to be made, the Principal and the Surety bind themselves. their
heirs. executors. administrators, successors and assigns. jointly and severally, firmly by these presents.
Whereas. the Principal has entered into a wrillen contract with Ihe Obligee bearing the date shown above lor the undertaking indicated above. which contract is by
reference made a par1 hereof, and is hereinafter referred to as the Contract.
Now, therefore. the condition of this obligation is such that. if Ihe
Principal shall promptly make payment to all claimants as hereinafter defined.
for all labour and material used or reasonably required for use in the performance of lhe CO'ltract, then this obligation shall be void. otherwise it shall
remain in full force and effect. subject. however. to the following conditions:
(II
A claimant is defined as one having a direcl conlract with the Principal
.
for labour. material, or both. used or reasonably required for use in the
performance of the contract, labour and material being construed to
include that par1 of water. gas, power. light. heat. oil, gasoline.lelephone
service or rental of equipment (but excluding renlal of equipment where
the rent pursuant to an agreement is tobe applied towards the purchase
price thereof) directly applicable to the Contract:
(2)
The above-named Principal and Surety hereby jointly and severally
agree with the Obligee that every claimant as herein defined. who has
rlOI been paid in full before lhe expiration of a period of ninety (90) days
alter the date on which the last 01 such claimant's work or labour was
done or performed. or materials were furnished by such claimant. may
sue on this Bond. prosecute the suit to final judgment for such sum or
SU.ffis as may be justly due claimant, and have execulion thereon:
Claim is made. stating with substantial accuracy the amount
claimed and Ihe name of the party to whom Ihe materials were
lurnished, or for whom the work or fabour was done or performed. Such notice shall be served by mailing Ihe same by
registered mail to the Principal. and Surety, at any place where
an office is regularly maintained lor the transaction of business.
or served in any manner in which legal process may be served in
the province or other part of Canada in which the aforesaid
project is located;
Unless claimant shall have given wrillen notice to the Principal
and the Surety above named. within one hundred and twenty
(120) days after such claimant did or performed the laSI of the
work or labour, or furnished the last of the malerials for which said
After the expiration of one (1) year following the date on which
the Principal ceased work on said Contract including work
perlormed under the guarantees provided in the Contract:
(c)
Other than in a court 01 competent jurisdiction in Ihe province or
district in which the project. or any part thereof. is situated and
not elsewhere:
(4)
The amounl 01 this Bond shall be reduced by and to the extent 01 any
payment or payments made in good faith hereunder. inClusive of tile
payment by the Surety of mechanics liens which may be Wed of record
against said Improvement. whether or not claim lor the amount of sllch
lien be presented under and against this Bond:
(5)
The Surety shall not be liable for a greater sum than the specified
penally of this Bond.
NO suit or aclion shall be commenced hereunder by any claimant.
(al
(b)
In witness whereof the Principal who is an individual or partnership has subscribed his name and his seal and the Principal who is a corporation and the Surety have caused
their respective corporation seals to be affixed attesteQ und6C.,henantr.> of their respective proper officers in that behalf the day and year first above wrillen.
Signed and Sealed on the date shown above
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Seal)
Signed. Sealed and Delivered in the presence of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Seal)
__.(Seal)
Witness
Saskatchewan Government Insurance
By ilS Auttlorized Ollicer
:\,:thorized
Offic~{
-44-: .
FormJt2
Your Letterhead
Da te :
To Surety:
~_
-,..
_
To Owner:
To Pr inc ipal :
--'-
Project:
Bond No.:
Notice of Bond Claim
As a subcontractor for the above project we give
notice under the terms of the above bond that we have a
claim. Also, be on notice that we do not intend to take
action on our claim under the Builders' Lien Act.
Particulars of our claim are as follows:
Date of last work or supply:
Amount owed today:
Daily interest hereafter:
Yours truly,
Your credit employee
_
~~u~
lUI
(5-78)
-45-
H
LIABILITY PO L1CY
HEAD OFFICE - CANADA
(hereinafter called the Insurer)
POLICY NO.
Agent
The Insurer, in consideration of the payment of the premium, in reliance upon the statements in the declarations made a part hereof and subject
to all the terms of this policy, agrees with the Named Insured as follows:
1. Named Insured
Address
2. Business of Named Insured is
The Named Insured is
INDIVIDUAL
o
0;
OTHER ..................................................... '
Day
3. Policy Period
Month
Year
at the address of the Named Insured
From
4. Coverage and Premium - The insurance
a premium charge is specified.
affor.d~rtHif:~~1er
verage rider(s) indicated below and for which
.
PREMIUM
CONTRACTOR'S GENERAL LIABILITY
AT INCEPTION
$
$
1ST ANNIVERSARY
$
2ND ANNIVERSARY
$
TOTAL
PREMIUM
ORDEPOSIT
$
In Witness Whereof, the Insurer has executed and attested these presents; but this policy shall not be valid until countersigned by the duly
Authorized Representative of the Insurer.
Countersigned
Authorized Representative
Page 1 of 8
(5-78)
-46-
CONTRACTORS' GENERAL LIABILITY COVERAGE RIDER
Attached to and formi.pg part of this Policy
The following discloses all hazards insured hereunder known to e4ft:i;IJ the effecif:date of this
The insurance afforded is only with respect to such of.·
of the Insurer's liability again\;t each such Coverage shal .
P.~i}t:·.::'I:::\~'iW~rwise
s tated herein.
: : : : :;': ~Yl ~;"moh",~
"' oh",.. Tho 11m;,
.. ,of th is pol icy having reference thereto.
GENERAL LIABILITY
Coverages
Advance Premium
A. Bodily Injury Liability
Inclusive
Limit
and
$
Deductible Property
$
Damage $
PERSONAL INJURY L1ABILIT
Limits of Liability
C. Personal Injury Liability
Insured's Participation
$
$
%
Minimum Premium $
Advance Premiums
general aggregate
$
$
Total Advance Premium
$
each person aggregate
Endorsements
Page 2 of 8
CCDCW"I
-47-
i5-78)
)
Advance Premium
Rates
Description of Hazards
Premium Bases
B.1.
Premises -Operations {List all locations owned,
rented or controlled by Named Insured stating
interest as owner, lessee or tenant).
(a) Area (sq, ft.)
P.O.
B.1.
P.O.
(a) Per 100 sq. ft. of Area
(b)Remuneration (b) Per $1000. Remuneration
(c) Receipts
(c) Per $1000. of Receipts
{dl
Elevators (Describe)
t " ""
"
",
'"dependent Contractors (Let or Sub-let work)
Products
Completed Operations
Incidental Contracts
Other hazards or endorsements
Page 3 of 8
l,\,.. U\.- lUI
-48-
(5·78)
DESCRIPTION OF TERMS USED FOR PREMIUM BASES
1.
"Area" means the square footage of the buildings to be insured excluding that portion of the basement used exclusively for storage or th'l
portion of the premises used for heating or air conditioning plant purposes.
2.
"Cost of work" means the total cost of all operations performed for the Named Insured during the policy period by independent contractors.
including materials used or delivered for use by whomsoever supplied. except maintenance or ordinary alterations and repairs on premises
ownei or rented by the Named Insured.
3.
"Receipts" means the gross amount of money charged by the Named Insured for such operations as are rated on a receipts basis during the
policy period.
4.
"REmuneration" means the total earnings during the policy peripd for each owner. partner, executive officer or employee.
5.
"Sales" means the gross amount of money charged for all goods and products sold and distributed by the Named Insured Or by others trading
under his name during the policy period.
6.
"Cost" means the total cost to any indemnitee with respect to any contract which is insured of all work let or sublet in connection with each
specific project, including the cost of all labour, materials and equipment furnished, used or delivered for use in the execution of such work.
whether furnished by the owner. contractor or the sub-contractor, iOl;.l..uding all fees, allowances. bonuses or commissions made. paid or due.
When used in this policy /including endorsements forming a part
her~$¥):.,y
conditiori~
"acddent" includes continuous or repeated exposure to
which resulti' in property darii'i'l9la.Qeither expected nor intended from the
standpoint of the I n s u r e d . / / . / /
.//":0:...::.:...
"automobile" means any self·propelled land motor vehicle. trail~i~:.9r. semi-trail#t~\lVhile attached thereto or ~~~ftached /including accessories and
equipment while attached thereto or mounted thereon) other than anYptthe follclWio90r their tr,ailers, accessorl~s and equipment:
(a) vehicles of the crawler type (other than motorized snow
vehicl~~.);
(b) tractors (other than road transport tractors designed...
machines. concrete mixers (other than concrete mixer{'
special licenses for limited or restricted highway use;/,
(c) other construction machinery or equipment mount •.....
vehicle insured under an Automobile Policy; or whit.'
:~i:I:~6ta4l:hed
to any self-propelled land motor
on construction sites;
~.~wvehiclli
')i1bd motor vehicle. while at the site of the use or
(d) machinery or apparatus, including its equipment•...
operation of such machinery or apparatus, out wh
(e) self-propelled land motor vehicles intended for
(f) unlicensed trailers or semi-trailers generally u .'
on roads.
"bodily injury" means bodily injury. Sickness6f"disease
time resulting therefrom.
.....
susta-:~:d by any person
the policy period. including death at any
"completed operations hazard" includes bo$fj~ injury org~~pertY damageJ~i:iA994.t.of operations. but only if the bodily injury or property
damage occurs after such operations have.:.)i~en complet!1cf or abandoned arid occurs'ii"ii\lay from premises owned by or rented to the Named
Insured. Operations include materials. parti\qr:.~quipmentfumishedin conoWction therewith. Operations shall be deemed completed at the earliest
~:)th~::~I:~i::e:~:i:s~Sto be performe;9r:·:~~!~~~t¥;~hm~~::·~~din.si;edunder th~li:ntract have been completed;
(b) when all operations to be perform
~?:&;:\\I:!ehalfof'tff~:Named Insured at the Sl~ of the operations have been completed;
(c) when the portion of the work o' .f which '1:h1¥i'bodily inju;y"::6i'::Pf9perty dama:~ arises has been put to its intended use by any persons or
organization other than another iltractor or
-contractor engagetf''n':P.eXformf6g operations for a principal as a part of the same project.
Operations which may require fur
.
intenance
worki\9r..corr;:~:flgfi;f:;~pairor replacement because of any defect or deficiency. but
~:'~;~ff~~~g~~~~;:".~~~~,",":~9;:~i~;:':::l
"el/lvator" means any hoisting or 10wering~':Jf~~:i:t\;!::l;pnn~~';\Wtorso r land.\Jts whether or not in service. and all appliances thereof. including any
car. platform. shaft. hoistway. stairway. runway, power:::l@~ipmentand mag!ifnery. but shall not include:
(a). dumbwaiters. the floor area of which does not exceed·9··~gUa.te. .fl'let, ari~:'used exclusively for carrying property;
(b) hod or material hoists used in connection with alterations, CO~~1:h1cV#h or demolition operations;
(c) inclined conveyors used exclusively for carrying property;
(d) automobile servicing hoists.
"incidental contract" means any written agreement
(a) which is a lease of premises. easement agreement, agreement required by municipal ordinance, sidetrack agreement. elevator maintenance
agreement. or
(b) which assumes the liability of others. except agreements wherein the Insured has assumed liability for the sole negligence of his indemnitee.
"insured" means any person or organization qualifying as an Insured in the "Persons Insured" provision of the applicable coverage rider. The
insurance afforded applies separately to each Insured against whom claim is made or suit is brought. except with respect to the limits of the
Insurer's liability.
"Named Insured" means the person or organization named in the declarations of this policy.
"Named Insured's products" means goods or products manufactured, sold. handled or distributed by the Named Insured or by others trading
under his name, including any container thereof (other than a vehicle), but shall not include a vending machine or any property other than such
container, rented to or located for use of others but not sold.
Page 4 of 8
.CDC .
I
(5-78:
"personal injury" means injury sustained by any person or organization and arising ou' of one or more of the following offenses committed during
the policy period in the conduct of the Named Insured's business designated in the declarations:
)oup A - false arrest, detention or imprisonment or malicious prosecution;
"roup 8 - the publication or utterance of libel or slander or of. other defamatory or disparaging material, or a publication or utterance in
viol~tionof an individual's right of privacy, except publications or utterances in the course of or related to advertising. broadcasting or
telecasting activities conducted by or on behalf of the Named Insured;
Group C - wrongful entry or eviction. or· other invasion of the right of private occupancy.
"policyterritorv;' m8ans:
(a) Canada or the United States of America. its territories or possessions, or
(b) anywhere in the world with respect to compensatory damages because of bodily injury or property damage arising cut of a product which was
sold for use or consumption within the territory described in p\lragraph (a) above. provided suit for such compensatory damages is brought
within such territory.
"products hazard" includes bodily injury and property damage arising out of the Named Insured's products but only if such bodily injury or
property dam1!g1! occurs away from premises owned by or rented to the Named Insured and after physical possession of such products has been
relinquished to o,'hers.
"property daMage" means (a) physical injury to or destruction of tangi.Q.I.e property which occurs during the policy period. including the loss of
use thereof at any time resulting therefrom. or (b) loss of use oftangibfjf:~:pro'perty which has not been physically injured or destroyed provided
such loss of use is caused by an accident occurring during the policy perJB'd
.
To pay on behalf of the Insured all sums which the Insured s..
Coverage A
Coverage 8
Coverage C
Bodily Injury
Property Damage caused by accident
Personal Injury
~'::iiiffi",l~m""
II.
Defence - Settlement - Supplementary Payments
As respects insurance afforded by this policy. the Ins .. '
(1) defend in the name and on .behalfof the Insu ..'
b. bm",", ,,,;",,
the Insurer shall have the right to make such
.. the I nsured on account of such bodily injur
surer;
irlVestigation. negotiation and settlement of a ..
·.applicable limit of liability of this policy. all
(2) pay all premiums on bonds to release atta
'. pply for or furnish such bonds;
premiums on appeal bonds required in any sue
'terest accruing after entry of judgment (or, in
(3) pay all costs taxed against the I nsured in
h action) upon that part of the judgment which
~,
those jurisdictions where interest accr
!
is within the limits of the Insurer's Iiabi
to others as shall be imperative at the time of
(4) pay expenses incurred by the Insure
accident;
(5) pay reasonable expenses incurred by .
. Insurer in the investigation or defense of any claim
or suit. including actual loss of ear .'
The amounts so incurred except settle .. '
III. Persons Insured
. .e
belolik
Each of the following is an Insured
I~rif · · ·..:··:i0i'dual. the pei~bn so designated but only with respect to the conduct of a
(1) if the Named Insured is desi9. .
business of which he is the s .
venture. the partnership or joint venture so designated and
(2) if the Named I nsured is d
. any partner or member t
(3) if the Named Insured i
individual. partnership or joint venture. the organization so
designated and any exec
e acting within the scope of his duties as such;
(4) any person (other than.'
n while acting as real estate managerfor the Named Insured;
(5) employees of the Nam~
rllq whil~·~2ttil9·.\I\lithin thk~cope of th
ties as such but this extension shall not apply to.
(a) the liabilitY of any empl~
ut·df.\bQ9,ilY/injury, as d~#hed herein. sustained by fellow employees and for which worker's
compensation is payable or.
':'.'.\,:"
(b) the liability of any employee arising ou tPlIrsonal injury. as. "/~vided in insuring agreement C. sustained by fellow employees.
This insurance does.not apply .to bodily injury. p';gg~rtV:\(jamage . personal injury arising out of the conduct of any partnership or joint
venture()f which the Insured is a partner or member and wIHCll'}s"n
esignated in this policy as a Named Insured.
t~~~::'~'jtt\}ndg:'forth
,"V ,;m.
ff
.Jt:'
IV. Policy Territory
This insurance applies only to bodily injury. property damage or personal injury which occurs within the policy territory.
EXCLUSIONS
This insurance does not apply to:
(a) liability assumed by the Insured under any contract or agreement except an incidental contract. but this exclusion does not apply to a
warranty of fitness or quality of the Named Insured's products or a warranty that work performed by or on behalf of the Named Insured will
be done in a workmanlike manner;
(b) bodily injury or property damage arising out of the ownership. use or operation. by or on behalf of the Insured of
(j) any automobile. or
)liir any watercraft. but this exclusion does not apply to watercraft while ashore on premises owned by. rented to or controlled by the Named
Insured;
.
.
'but this exclusion does not apply to bodily injury sustained by employees of the Insured, not otherwise excluded in exclusion (0. when such
employees are engaged in the business of the Insured.
(c) bodily injury or propertY damage arising out of the ownership. existence. use or operation by or on behalf of the Insured of
(j) any aircraft. or
(ii) any premises for the purpose of an airport or aircraft landing strip and all operations necessary or incidental thereto. or
(iii) any air cushion vehicle;
Paoe 5 of R
-50-
(5-78)
but this exclusion does not apply to bodily injury sustained by employees of the Insured, not otherwise excluded in the exclusion (f), when
such employees are engaged in the business of the Insured;
bodily injury or property damage arising out of any professional services performed by or for the Named Insured, including
(j) the preparation or approval of maps, plans, opinions, reports, surveys, designs orspecifications, or
(ii) supervisory, inspection, architectural or engineering services;
any Obligation for which the Insured orhis Insurer may be held liable under any worker's compensation law or ordinance;
bodily injury to any employee of the Insured arising out of and in the course of his employment by the Insured, but this exclusion does not
apply to
(j) liability assumed by the Insured under an incidental contract, or
(ii) employees on whose behalf contributions are made by or required to be made by the Insured under the provisions of any worker's
compensation law or ordinance;
bodily injury caused intentionally by or at the direction of the Insured;
property damage
(.1) to property owned or occupied by or rented to the Insured, or except with respect to the use of elevators, to property held by the Insured
for sale or entrusted to the Insured for storage or safekeeping;
(2) except with respect to liability under a written sidetrack agreement or the use of elevators to
(a) property while on premises owned by or rented to 'the Insured for the purpose of having operations performed on such property by or
on behalf of the Insured;
.i:.'··:·.....
(b) tools or equipmentwhile being used by the Insured in perf9tfuffi~lti~.,pperations;
(c) property in the custody of the Insured which is to be inst<i.n~d, erect~~FB: sed in construction by the Insured;
(d) that particular part of any property, not on premises owriJii by or ren
. :to the Insured,
(i) upon which operations are being performed by orq.~' behalf of th!f' sured at the time of the property damage arising out of such
(d)
(e)
(f)
(g)
(h)
~~~r~:i~~~~~rany
.AfU::N/<:,\.
(ij)
property damage arises, or . .:it}·
(iii) the restoration, repair or replacement of which'?has been m<!dil necessary by rtj$son of taUtwworkmanship thereon by or on
behalf of the I n s u r e d ; · · · ' · · · , · · · · · · · · ,
property damage to the Named Insured's products arising out of··~lidlprPduct~·'6f:'ilT:ly.partoti~uch product~;S
with respect to the completed operations hazard, property damage toW6f.l!.:perforrl'l~:d:\bYStheNamed Il)~tred arising out of the work or any
portion thereof, or out of materials, parts or equipment f\.ifnishe··c:onnediHil,herewith;'·:·
....
loss of use of tangible property which has not been phy ,···········,····"·,;:Q~.&troyed';iiiOltil)gf r o m i '
(j) a delay in or lack of performance by or on behalf . , . . . . .... . J)Y contrtidt\Qragreem~ilt, or
(ii) the failure of the Named Insured's products or .'
.
f of the"NsoWc:lJosured to meet the level of performance,
quality, fitness or durability warranted or repres. . ...
but this exclusion does not apply to loss of u s e . ' " h e sudden and accidental physical injury to or
destruction of the Named Insured's products or.·
. lnsured after such products or work have been
put to use by any person or organization other tha'
.'.
of the Named Insured's products or work
compensatory damages claimed for the withdr . I, insPec:'ti:<) ..
'rm a part, if such products, work or property
completed by or for the Named Insured or of \!.., .property Of::::' .
are withdrawn from the market or from use . se'Y)f::'MV known'"
.'ncy therein;
(j)
(j)
(k)
(I)
(m)
h)~Pt~:YU~:~fa~~;;~~ii~~sof~~~'~sting, orA>
""":il~;~'
. .... .'
(ij) vibration from pile. driving or caisson vii.8i-k, o r ' "
, " ' ..
(iii) the removal or weakening of support§l any property}building or landwh~ther such
port be natural or otherwise;
but this exclusion does not apply Wid}" respect topYoperty damage fi}'~/i~iOg,.9ut of opera.tions performed for the Named Insured by
independent contractors; (ij) included/Within the COmPleted operatiory~;hazard; lHlkJpr which liability is assumed by the Insured under an
,:\:\;\\,.... ....
.".
."
incidental contract;
(n) personal injury:
(ij' liability assumed by the Insured:::"
(ii) arising out of the wilful viola!"
(iii) sustained by any perSOn as a
(iv) arising out of any publica· .
material by or on behalf of
(v) arising out ofa publicat
services, made by or at th.
(0) bodily injury. or property
.
isper
ontamin
chemicals, liquids or gases,
any description no matter w'
Jg.
rdnto an
apply if such discharge, dispersal, riii
. nd accident~tf
(p) bodily injury or property damage due to
of foreign e.R~'my, hostilities (whether war be declared or not), civil war, rebellion,
,~~r:i~r~~;~~~~,::.:~" 'h:'::~~\:;\~llJ'f..,i:d","",,,",,1 ""dM' '""" ",bm" '"'","""Iwh"h,dh, '"
I,1
sured is unnamed in such contract and whether or not it is legafly enforcible by the Insured) issued by the Nuclear InS'urance Association
of Canada or any other group or pool of insurers or would be an Insured under any such policy but for its termination upon exhaustion
of its limit of liability; or
(ii) resulting directly or indirectly from the nuclear energy hazard arising from:
(a) the ownership, maintenance, operation or use of a nuclear facility by or on behalf of an Insured;
(b) the furnishing by an Insured of services, materials, parts or equipment in connection with the planning, construction, maintenance,
operation or use of any nuclear facility; and
!c) the transportation, consumption, possession, handling, disposal or use of radioactive material sold, handled, used or distributed by an
Insured.
As used in this policy:
1. The term "nuclear energy hazard" means the radioactive, toxic, explosive, or. other hazardous properties of radioactive material;
2.
The term "radioactive material" means uranium, thorium, plutonium, neptunium, their respective derivatives and compounds, radioactive
isotopes of other elements and any other substances that the Atomic Energy Control Board may, by regulation, designate as being prescribed
substances capable of releasing atomic energy, or as being requisite for the production, use, or application of atomic energy.
Page 6 of 8
eeoc 101
-51-
(5-78)
3.
)
The term "nuclear facility" means:
(a) any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of plutonium,
thorium and uranium or anyone or more of them;
(b) any equipment or device designed or used for (i) separating the isotopes of plutonium, thorium and uranium or anyone or moreof them,
(ij) processing or utilizing spent fuel, or (iii) handling, processing or packaging waste;
(c) any equipment or device used for the processing, fabricating or alloying of plutonium, thorium and uranium or anyone or more of them if
at any time the total amount of such material in the custody of the Insured at the premises where such equipment or device is located
consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium
235;
(d) any structure, basin, excilvation, premises or place prepared or used for the storage or disposal of waste radioactive material;
and includes the site on which any of the foregoing is located, together with all operations conducted thereon and all premises used for such
operations.
LIMITS OF LIABILITY
Regardless of the number of (1) Insureds under this policy (2) persons or organizations who sustain bodily injury, property damage or personal
injury or (3) claims made or suits brought on account of bodily injury, property damage or personal injury, the Insurer's liability is limited as
follows:
1.
2.
Limits of Liability - Coverages A and B: The inclusive limit of lia&iri~'$'Vtated in the schedule as applicable to "bodily injury each occurrence
property damage each accident" is the total limit of the Insure"··liability·i.hjl;t~rCoverages A or B or Coverages A and B combined for all
compensatory damages, including compensatory damages for c .. 'and loss or s.~Nices, arising out of bodily injury in anyone occurrence or
prorerty damage as a result of anyone accident or series of acci ..' ts arising ou.t\bf one event.
Subject to the above provision respecting "bodily injury each;$:g~urrence pro.''' ~ty damage eac. .... . ent" under Coverage A and B combined,
the limit of bodily injury and property damage liability c··.. 'ned stated.'
the schedule
" is the total limit of the Insurer's
hazard a
pleted ope
ny one period of twelve months
liability for all compensatory damages arising out of the pr
terminating on an anniversary of the inception date of the p'
3.
All compensatory damages arising out of one lot of goods 0
his name, shall be considered as arising out of one occurre
liability.
4.
For the purpose of determining the limit of the Insur
exposure to substantially the same general condition
one accident as regards property damage liability. ,:'
5.
It is agreed that, in the event of the Insured's Iiab;'
described in this Policy from anyone acciden ....
Declarations shall be deducted from the total a
amount.
In the event of an accident, irrespective of th '.'
The Insurer may, at its option, investigate .
undertakes to negotiate or settle any such 3:. aim, to I
deducted as herein provided, or to reimbu . ·.. ··tie Insurer f
1.
Limits of Liability - Coverage C: The to
one person or organization shall not exc
2.
Subject to the above provision respe
compensatory damages shall not exce
3.
Insured's Participation: If a partic
proportion of any loss than the di
Insured; proVided, the Insurer rna
taken, the Named Insured shall p
ability of t
the limit ot
ured or by another trading under
cident as regards property damage
arising out of continuous or repeated
'. ce as regards bodily injury liability and
use of property arising out of the operations
from one event, the amount stated in the
e liable for loss or damage in excess of that
in accordance with the terms of this Policy.
claim and the Insured agrees, if the Insurer
ettlement to the extent of the amount to be
en such claim is paid by the Insurer.
ges because of all personal injury sustained by any
schedule as "each person aggregate".
of the Insurer's liability under this coverage for all
schedule as "general aggregate".
Insured, the Insurer shall not be liable for a greater
'percent and the balance of the loss shall be borne by the
lement of the loss, and, upon notification of the action
Premium and Adjustment of
(a) Unless otherwise stated'
ated deposit premium only. Adjustment of premium shall be
made at least annually'
. hown in the declarations or in any endorsement attacbed hereto,
ific bazards mentioned herein.
shall be used in ascertainin
..':'::ei;l[ned pre lUm...with
(bl In the case of any hazards ~~t~Hhg":.ijnd c~~~~(k· ." r cove rag
Ider(sl attached but not' specified in the declarations, or in any
endorsement, the earned premium wifl'{ite~llct the;:~t6 shall be co
uted in accordance with tbe Insurer's rules, rates, rating plans and
minimum premiums applicable to such hazards}:;;.:.:"... .
.
(c) Subject to the retention by the Insurer of theriifffHt!:\';Il)).,premiu· rovided for in the declarations, if the earned premium for this policy
thus computed exceeds the estimated deposit premium.'·:p~h·;!rJhe\
ed Insured shall pay such excess to the Insurer; on the other hand, if
tbe estimated deposit premium exceeds tbe earned premium>,til~iJnsurershall return to tbe Named Insured such excess.
',c (d) Tbe Named Insured sball maintain for each bazard hereby insured against, a record of the information necessary for premium computation
.' . " ',on. thl! basis stated, and shall submit sucb record to the Insurer at the end of the policy period and at such other times during the policy
, periqd as the .Insurer may direct.
1.
.' ·'.2,' ;,lH~~ii:tjOiia~d'Audit:
.,'
.
'."be Namecllnsured sball permit the Insurerto inspect tbe insured premises, operations and elevators and to examine and audit the Named
. Insured' s books and records at any time during the policy period (and any extension tbereof and within one year after tbe termination of this
!Jolicy), as far as tbey relate to the premium bases or the subject matter of this insurance.
The Insurer assumes no responsibility and waives no rigbts by reason of sucb inspection, examination, or audit or the omission thereof.
~. '.i
3.
Insured's Duties in tbe event of Accident, Occurrence, Claim or Suit:
In tbe event of an accident or occurrence.. written notice containing particulars sufficient to identify tbe Insured and also reasonably
h',,· obtainable information with respect to the time, place and circumstances tbereof, and the names and addresses of the injured and of
available witnesses, shall be given promptly by or for the Insured to tbe Insurer or any of its authorized agents.
(b) If claim is made or suit is brought against the Insured, the Insured shall immediately forward to tbe Insurer every writ, letter, document or
advice received by bim or his representative.
(e) The Insured shall co-operate with tbe Insurer and, upon the Insurer's request, assist in making settlements, in the conduct of suits and in
enforcing any right of contribution or indemnity against any person or organization wtto may be liable to the Insured because of injury or
damage witb respect to which insurance is afforded under tbis policy; and tbe Insured shall attend hearings and trials and assist in securing
and giving evidence and obtaining the attendance of witnesses. The Insured shall not, except at his own cost, voluntarily make any
payment, assume any obligation or incur any expenses other than for the first aid to others at tbe time of accident.
.~da)
LLUL lUI
(5-78)
-52-
4.
Action against Insurer:
No action shall lie against the Insurer unless, as a condition precedent thereto, there shall have been full compliance with all of the terms of
this policy, nor until the amount of the Insured's obligation to pay shall have been finally determined either by judgment against the Insured
after actual trial or by written agreement of the Insured, the claimant and the Insurer. Every action or proceeding against the Insurer shall be
commenced within one year next after the date of such judgment or written agreement and not afterwards. Nothing contained in this pOlicy
shall give any person or organization any right to join the Insurer as a co-defendant in any action against the Insured to determine the
Insured's liability.
Bankruptcy or insolvency of the Insured or of the Insured's estate shall not relieve the Insurer of any of its obligations hereunder.
5.
Subrogation:
In the event of any payment under this policy, the Insurer shall be subrogated to all the Insured's rights of recovery therefor against any
person or organization and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights.
The Insured shall do nothing after loss to prejudice such rights.
6.
Other Insurance:
The insurance afforded by this policy is primary insurance, except when stated to apply in excess of or contingent upon the absence of other
insurance. In respect of Property Damage coverage, the insurance afforded by this policy shall be excess insurance over any valid and
collectible Property insurance (including any deductible portion thereof) available to the insured, such as but not limited to Fire and Extended
Coverage, Builder's Risk Coverage or Installation Risk coverage. When this insurance is primary and the Insured has other insurance which is
stated to be applicable to the loss on an excess or contingent basis the amount of the Insurer's liability under this policy shall not be reduced
by.the existence of such other insurance. When both this insurance and other insurance apply to the loss on the same basis, whether primary,
excess or contingent, the Insurer shall not be liable under this policyf(jr a greater proportion of the loss than that stated in the applicable
contribution provision b e l o w : ; , ...
(a) Contribution by Equal Shares:
.ii·
. ..,
If all of such other valid and collectible insurance provides ti;if contributioJ:\.by equal shares, this Insurer shall not be liable for a greater
proportion of such loss than would be payable if each insllr:~'r contributes~n equal share until the share of each insurer equals the lowest
applicable limit of liability under anyone policy or the fUIJamount of thtfloss is paid, and \I\Ii~11 respect to any amount of loss not so paid
the remaining insurers then continue to contribute equalj~hares of the remaining amountoftneJoss until each such insurer has paid its
i
of the loss is paid·iFi.....
(b)
~:~::tb:~:~~rb:h~:~I/t::mount
7.
8.
..g;i '.
./f
.'y
If any of such other insurance does not provide for contribLitio09Y equai"~h'arl1s, this Ins!/rer shall notk)'e liable for a greater proportion of
such loss than the applicable limit of liability under this policy t&"~ll(:l1loss b~ar$tPtfjii total applic<l~le limits of liability of all valid and
collectible insurance against such l o s s . ....·.•·••,,·....
. ....•.•••".• "......
.. ···'··...··i..
..•,,,
C h a n g e s : i \ \ U / i } C j f / i \ \ . . ......•.•' ....,,« .
.•....•••...•.
Notice to any agent or knowledge possessed by any ageri1-?~l?y.!ll1y.9tlt~ti~l;itsClnshall nciteffept a waiyer or a change in any part of this policy
or estop the Insurer from asserting any right under th#terrn$#(tiji$)i~Ha9h}9~:~haHthetern1sofJhis-.policY be waived or changed, except by
:~:~~::~~:t issued to form a part of this PO'iCY'£t~.~f',:ft*$Wl;s?gijt$i\.;;[email protected]'~"iI.&.tF§x, '\'i\
Assignment of interest under this policy shall not\l·jjfl~ttlj~·JJ)s.ur~r until its conseryFij;~ri?(}r~d hereon; if, however, the Named Insured shall
die or be adjudged bankrupt or insolvent withinthepqli8YP.~ri()d.tl1ispOlicy, untesS:,c~I1~~Hl'l?,shall, if written notice be given to the Insurer
within sixty days, after the date of such death or adjudicatiop;~oyexthtfN<1medInsQt~q'sleg~rtepresentativeas the Named Insured.
9.
~~~c~~itten
notice to the Insurer may be deA&;';:d'1F'Orsen~':~}:i{Y;hrOUghwhom this policy was issued or toan\
branch of the Insurer in Canada. Writte'n notii;e may be givil'i-{to the Name
.ei:1'6V·
.·personally delivered to him or by registered letter
addressed to him at his last post office address notified to the Insurer; or wherer\o'*8<Jr~~:ns'notifiedand the address is not known, addressed
to him at the post office of the agency, ifany, from wl1kh the application was receive~l;'ln this condition the expression "registered" shall
mean registered within or without Canadj;..Notice to the/Frst Named Insur~(:tsh<lll constitute notice to all Named Insured.
10.
fa~n:;~~t~oo~i~y~:~i:::~~:inated,.:;....
(j)
(b)
it. . g · · X
by the Insurer giving to the Namedin~ur~d30 davs"J)<;>tice of termination byr~gislered mail or 30 days' written notice of termination
X~e~::~:~;~~~;~:~;::~~a::;ii'i:~~iA~u~:~~~1k'\""" ~i···\···ijiF···
. ' ••
.
and where the premiumJS"developed difother than an estimated basis, tl'l~ Insurer will refund the excess of the paid premium for the
time the policy has beeridri force, calcl.rf~ted pro rata, or··"\..S?
(ij) where the premium is}ileiteloped by§i'i estimated basis••the Insuref\¥'iHi:refund the excess of the premium above the premium earned,
(j)
~~~:~ii:~:~miAf~ed
Ng~ed
(c) Whe:htehne
by the
Insured,St!;.... . .
Ii) and where the prerrtNIJI is develo~<::lon other th~n§h estimated"liilsis, the Insurer will refund the excess of the paidpremium above
the short rate premiUrrf:.t9 .the tirr\iftf.i~policy has!'flien in force ~lCulated in accordance with the short rate premium table in use by
the Insurer, subject to the"
. ti.on of thir'itJinirnufji(premium, if@'y, provided by the policy, or
(ii) Where the premium is develo" . "'by..• qn estim·~tedJ)asis, the Ins(tier will refund the excess of the paid premium above the premium
earned, when determined, sUbjecttothl1·r.~tentiorioftheminilTlvrn premium, if any, proVided by the policy.
(d) Refund of premium may be made by money ,d6stalprexpress corn~~ny money order or by cheque payable at par.
(e) The thirty days mentioned' above in this conditio~~oti'ii:iW[l(::esx~run on the day following the receipt of the registered letter at the post
office to which it is a d d r e s s e d . · · · · · : ; , , > · . ·
(f) Premium adjustment may be made at the time cancellation i~':~'ffected and if not then made shall be made as soon as practicable after
cancellation becomes effective but payment or tender of unearned premium is not a condition of cancellation.
11. Cross Liability:
The insurance as is afforded by this Policy shall apply in respect to any claim or action brought against anyone Insured by any other Insured.
The coverage shall apply in the same manner and to the same extent as though a separate Policy had been issued to each I nsured. The inclusion
herein of more than one Insured shall not operate to increase the limit of the Insurer's liability.
12. Breacti of Conditions:
Where an accident occurs and there has been a breach of a condition relative to a matter before the happening of an accident, which breach
would otherwise disentitle the Insured to indemnity under the Policy, the breach shall not disentitle the Insured to indemnity:(j) unless the Insurer establishes that the accident was caused or contributed to by the breach of conditions,
or
lij) if the breach of conditions occurredin any portion of the premises over which the Insured has no control.
13. Declarations:
By· acceptance of this policy, the Named Insured agrees that the Statements in the declarations are his agreements and representations, that this
policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements existing between himself and
the Insurer or any of its agents relating to this insurance.
Page 8 of 8
LLUL.. IU
15·78)
-53-
"/:z.
ADDITIONAL NAMED INSURED ENDORSEMeNT
3.
Description of Operations
Construction of
Located at
All other terms arlij~
In witness whereoF
this purpose. has executed and signed this endorsement.
Authorized Representative
Dated at
day of
.19
ceDe 101·2
15·78)
........
../::::::~:::}}:
;:
~: : '"
ENDO~,~7N1~KiT\;f\
(Amending Blasting, Pile Driving & COU~:~ir EXciUSiOn)'"~":i},
EXTENSION OF COVERAGE
Attached to and forming.part of Policy No.
.:.:~~~}
.~ {:::.~~.~~~:::;.:
.~"'"
:.
Effective
• 19
hereby acknowledged by the Insurer). Subsectionls)
"
Property Damage arising out of the following operations.m!-rform .
:::,,:.:%:~:%:~::::::'%~::~:::"
:::::::::~:~:%:::::}%:::::.::
Construction of
Located at
.
..:/.:,:.::::~~f~{::::::::::~:::·"'· .
\i:
has executed and signed this endorsement.
Authorized Representative
Dated at
day of
.19
PROOF OF LOSS
(Other than Fire) -
INTERIM
I.B.C. CLAIM FORM NO. 8A
This form is provided to comply with the Insurance Act, where
required, 2:,J without prejudice to the liability of the Insurer.
. CLAIM NO
.
INSURER
.
INSURED
.
Name
under Policy No.
Address
.
in force until
.
against loss or damage by
to the amount of
Dollars
according to the terms and conditions printed· therein, including all forms and/or endorsements attached thereto and
forming part thereof.
, at
M, caused by
TIME AND ORIGIN: A loss occurred on the
day of
, 19
,
LOCATION: The said loss occurred at
POLICE: Authorities at
were notified on the
.
day of
19
.
TITLE AND INTEREST: At the time of the loss the interest of the Insured in the property described was sole and unconditional ownership and no other person or persons had any interest therein, lien or encumbrance thereon, except
CHANGES: Since the above policy was issued there has been no change in use, possession, location or exposure of the
property described, except
.
INSURANCE AND LOSS: A particular account of the loss is attached hereto and forms part of this proof. The actual
cash value of the property insured, the actual amount of loss or damage, the total insurance thereon at the time of the
said loss and the amount claimed under this policy are as follows:
Item Involved
Replacement
Cost
............
Cash Value
.
............
.
Total Loss
or damage
Total
Insurance
.............
.............
Amount named
in this policy
.
Claimed under
this policy
. .
.
TOTALS
OTHER INSURANCE: There is no other contract of insurance written or oral, valid or invalid, except (Insurers and
amounts).
The said loss or damage did not occur through any wilful act, neglect, procurement, means or connivance of the Insured
or this declarant.
Payment of this claim to
is hereby authorized.
,
.
I,
.
do solemly declare that the foregoing claim and statements are to the best of my knowledge and belief true in even!
particular, and I make this solemn declaration conscientiously believing it to be true and knowing that it is of the san
force and effect as if made under oath.
.
DECLARED severally before me at
this
day of
Commissioner lor Oaths or Affidavits
19
.
InSllrP.rl
-55-
PROOF OF lOSS
I.S.c. CLAIM FORM NO.8
(Other than Fire)
This form ;5 provided to comply with the Insurance Act, where
required, .;mJ without prejudice to the liability of the Insurer.
INSUREti .... ..
..
CLAIM NO.
.
.
...
_
INSU~!l:O
Addr.ss
under Policy No... _._ .. __ ... _.. __ .. __ ..
....
....
._ ..
..
.
. in force until ..
.. __ .... _.......
.... __ ...... _.... __ .......... __ .. _...
against ioss or damage by __ ... _. __ ..
.. _... __ .. _to the amount of
..
..
..
._ ..
._ .. _ Dollars
according to the terms and conditions printed therein, including all forms and/or endorsements attached thereto and
forming part thereof.
.
r~ME AND ORIGIN: A loss occurred on the
.. _day of..
.__ . .. .__ .
._._., 19 __ .. __ ., at .. __ . . . M, caused by
LOCATION: The sa id loss occurred at
POLICE: Authorities at __ .
.. __ ..... __ .....
..
.......
.
..
._.. _.... _....
. __ ..
were notified on the
.
day of
.....
....
..... _...
...... __ ..
.. __ .. _..
.. 19
.
TITLE AND INTEREST: At the time of the loss the interest of the Insured in the property described was sole and unconditional ownership and no other person or persons had any interest therein, lien or encumbrance thereon, except
CHANGES: Since the above policy was issued there has been no change in use, possession, location or exposure of the
property described, except
.
... _. .... __ ..... _... _.
.
.
..
.. __ ..... _._ ....... _.. _.
.. .. _..... ..
_ .... _....
INSURANCE AND LOSS: A particular account of the loss is attached hereto and forms part of this proof. The actual
cash value of the property insured, the actual amount of loss or damage, the total insurance thereon at the time of the
said loss and the amount claimed under this policy are as follows:
Item Involved
. -- ... - -. - .. _ .. _..
. .
Replacement
Cost
- .. - - - _.- _.. _.. -- -.- _. --.-.. -.. --------
Cash Value
------ -- - _ .. - --- ---- --
Total loss
or damage
Total
Insurance
- - - --- -- _ .. --- --- --.-_ .. -."
_. - - -_. - -- - - - - - ---.
Amount named Claimed urlder
in this policy
this policy
- -- - -_. - - - _. -.- --.- - _. - ... - -- ..... -- _. -- - - - --
TOTALS
OTHER INSURANCE: There is no other contract of insurance written or oral, valid or invalid, except (Insurers and
amounts).
The said loss or damage did not occur through any wilful act, neglect, procurement, means or connivance of the Insured
or this declarant.
Payment of this cia im to _" .
..
..,.. _., __ ._.... __ ,_ .. ....
..
.__ .. _.. _..... _... __ ... _.. _, ..
.
... __ .. _.... _.. _.. _.... _.
is hereby authorized and in consideration of such pay'ment the Insurer is discharged forever from all further claim by
reason of the said loss or damage. All rights to recovery from any other person are hereby transferred to the Insurer which
is authorized to bring action in thelnsiJred's name to enforce such rights. All right, title and interest in any salvage is
hereby assigned to the Insurer.
v
I,
__ .
._.
. _. . .__
_ _. __ .
.
__
..
_.
, __ .,,_ ..
_. _ __
do solemnly declare that the foregoing claim and statements are to the best of my knowledge and belief true in every
particular, and I make this solemn declaration conscientiously believing it to be true and knowing that it is of the same
force and effect as if made under oath.
DECLARED severally before me at __ .. ...... _. .. _.. .. . .
this._ ..
.. __ .day of
Commissioner for Oaths or Affidavits
_
..
._._
19
.. '
---
-
- -. ---------
-- ----. -. -- -
--- --.
-I~;~;~d
Insured
Ove,
CJE)75016 (1-84)
-::>0-
1.1.Ul. LU I
PROPERTY INSURANCE POLICY
(5-78)
~
HEAD OFFICE ~CANADA
(hereinafter called the Insured
Policy No.
Agent
In consideration of the premium specified herein. and subject to the terms and conditions of this policy, the Insurer. in the event of any property
insured being lost, destroyed or damaged by a peril insured against, agrees to indemnify the Insured to the extent herein provided.
1. Names and Addresses of Insured(s)
(Contractod and
(Owned and
(Arch itectl En gi neer)
2. Risk Location
(if not as above)
3. Sum Insured
$
4. Policy Period
Day
12~d¥ti'A.M.
Month
Standard Time. at the address of the Risk
Lq§l"tion as stated above.
from
5. Loss, if any, payable, as their
resp¥~tive intere
. d The Owner and the following (if any):
This policy is made and accepted subject to the foregoing pr~'::i'~I:g,:;s;\#§'to the following provisions, stipulations and conditions printed herein,
which are hereby specially referred to and made a p;lrt of this policy;"tOgether with such ,other provisions, agreements. or conditions as may be
endorsed hereon or added hereto. No term or condition of a contractshall be deemed to be waived by the Insurer in whole or in part unless the
waiver is clearly expressed in writing signed by a person authorized for that purpose by tile Insurer. Neither the Insurer nor the Insured shall be
.deemed to have waived any.term or condition of a contract by any act relating to the appraisal of the amount of loss. or to the delivery and
completion of proofs, or to the investigation or adjustment of any claim under the contract.
In Witness Whereof, the Insurer has executed and attested these presents; but this policy shall not be valid until countersigned by the duly
Authorized Representative of the Insurer.
Countersigned
Authorized Representative
Page 1 of 9 .
eeoc 201
-57-
(5-78)
ALL RISKS FORM
Property Ins\.mold:
This policy, ",:capt as herein provided, insures
(a) property in course of construction, installation, reconstruction or repair
(i) ovv;:cc by the Insured;
(ii) for which the Insured is responsible, provided that the value of such property is included in the amount insured;
all to ent\~r into and form part of the completed project including expendable materials and supplies not otherwise excluded necessary to
comp\2t'O ~"e project described in Clause 5;
(b) temporary buildingS,scaffolding, falsework, forms, hoardings, excavation, site preparation, landscaping and similar work, provided that
the va,ue thereofi;' included in the amount insured and then only to the extent that replacement or restoration is made necessary to
. complete the project;·
..
lei exper:&es incurred in the removal from the construction site of debris of the property insured, occasioned by loss, destruction or damage
to such property and in respect of which insurance is provided by this policy.
2.
UmJ!s ,:;f U<Jbllity:
This \)olk'lf insures in the amount of $
applicable to those items of this clause for which a limit is shown. The liability of the
inourer(s) ,n anyone loss, casualty or disaster shall be limited to the proportion of any loss or damage, including salvage charges and other
e)(p,,,nses, which the sum insured under this policy bears to the tota:· .!,mt of insurance and in no event shall exceed the sameproportion of
each of the following limits of liability in any such loss, casualty or . . ,...
Limit(s) of Liability for all insurance
(a) $
at situation described in Clau
Optional (b) $
at any other location;
Optional (cl $
in transit,
provided always, however, that the total liability under thi
neither exceed the amount of insurance nor the applicable I
3.
Deductible:
Each claim for loss or damage shall be adjusted separa.
shall be deducted. This deductible does not operate to ..
(a) $
4.
and for removal of debris, shall
he applicable sum shown hereunder
at situation
Optional (bl $
at any other location·
Optional (cl $
in transit,
Perils Insured:
This policy, except as herein provided, insures
to the property insured.
Particulars of Project:
(al Project name and No.
(bl Situate at
(cl Height
storeys
(dl Foune:tation construction
·(e) Wall construction
(f) Roofconstruction
(gl. FlOor construction
(hI To be occup.ied as
6.
Estimated Insured Value:
(al Estimated completed contr '
(bl Value of any property ins.
7.
(cl Estimated insured value.
Scope of Coverage:
$
$
$
..
(al This insurance attaches, wi
comes at the Insured's risk after being unloaded at and while on
the construction site.
bject to such limit, anywhere in Canada or the continental United
(b) If a limit of liability is stated in Cia
States excluding Alaska, only with respect
and form part of the completed project described in Clause 5 but
excluding such property while in transit, or in an
manufacturing or processing.
(c) If a limit of liability is stated in Clause 2(cl, insurance i s .
ubject to such limit, from the commencement of loading at the original
point of shipment anywhere in Can~a or the continental
States excluding Alaska~ until the completion of unloading at the site of
construction, or elsewhere except while in any building used for manufacturing or processing.
(dl This policy ceases to insure the project
(j) 10 days after the date of issuance of the Certificate of Total Performance in respect of the project in terms of the contract documents
relating to the project; or
!iii on the commencement of use or occupancy of any part or section of the project, unless such use or occupancy is for .
(al installing, testing, or storing equipment or machinery or using the equipment or machinery during the construction of the project
to facilitate its completion; or
(bl office or habitational purposes; or
!iiil on the termination or expiration of this insurance,
whichever first occurs.
) Property Excluded:
Th is pol ity does not insu re loss of or damage to
(al property,
(j) while waterborne, from the commencement of loading until completion of discharge, except while on a ferry, railwaY car or transfer
barge, all in connection with land transportation;
liil while insured under an Ocean Cargo policy;
Iiiil while aboard or being transported by any aircraft;
0 ......,.. ') ..... ~
n
-58-
(5-78)
(b) contractor's tools and equipment, including spare parts and accessories, whether owned, loaned, hired or leased, other than property
specified in Clause 1(b);
(c) money, books of account, securities for money, evidences of debt or title, automobiles, tractors, and other motor vehicles, aircraft or
watercraft.
9.
Perils Excluded:
This policy does not insure
(a) the cost of making good
(i) faulty or improper material;
(ij) faulty or improper workmanship;
!iii) faulty or improper design;
. provided, however, to the extent otherwise insured and not otherwise excluded under this policy, resultant damage to the property shall be
insured except that with respect to the Named Insured Architects or Engineers such resultant damage shall not be insured and the right of
the Insurers to subrogate against the Named Insured Architects or Engineers for such resultant damage is hereby admitted;
(b) loss or damage, unless directly caused by a peril not otherwise excluded herein, caused directly or indirectly by rust or corrosion, frost or
freezing;
(c) loss or damage caused by electric or magnetic injury, disturbance or erasure of electronic recordings, except by lightning;
(d) loss or damage caused directly or indirectly by mechanical or electrical breakdown or derangement provided however, to the extent
otherwise' in'sured and not otherwise excluded under this policy, resultant damage to the property shall be insured;
(e) loss or damage caused directly or indirectly by earthquake, exc
Ii) ensuing damage which results from fire, explosion, smoke.l;l( ea
Iii) while the property is in due course of transit, if a limit is. ':'}bvided unde
(f) loss or damage caused directly or indirectly by flood, and t
rd "f100
out or the overflow of, any body of water, whether natural..
man made;.
(j) caused by escape of water from an elevated water ta'
intained 0
(ii) occurring while the property is in due course of tra
a limit is
.
(iii) resulting from ensuing fire, explosion or smoke;
(g) theft by an employee, officer or agent of the Insured or of
the property is entrusted (bailees
for hire excepted);
.
.
(h) any loss or shortage disclosed on taking inventory or m
(j) loss or damage caused directly or indirectly by
otherwise insured and not otherwise excluded und
(j) any loss of use or occupancy however caused;
..
(k) penalties or liquidated damages for non-compl
r ·:·'*·:comPliance with contract conditions or
costs incurred solely in an effort to eliminate
which the Insured may be contractually liable;
III wear and tear, gradual deterioration, normal u'
(m) loss directly or indirectly, proximately or re
ted to by the enforcement of any by-law,
ng or
. of buildings or structures, which by-law,
regulation, ordinance or law regulating
~':J9 repair.
mediately prior to the loss;
. regulation, ordinance or law makes it imp
fi6f~'tg~:.,"'.f1emy, Ii'
eclared or not), civil war, rebellion, revolution,
(n) loss or damage caused by war, invasio .
insurrection or military power;
(0) loss or damage caused by contaminatiO:i,tby radioactiv!f'material.
:ci
10. Premium AdjUstment::d;W"
The premium stated in this policy is,iWovisional.
report to the Insurer(s) the actual coinA
insured herein or in the absence of a con'" ···.price t
.....
be calculated from inception date ot this poflW\:OI}....the to
exceeds the provisional premium,:fihe;·\I.Qsured ·shMI\:P9.Y
provisional premium, the Insurer(~Lihall·"i1fu
0 the in····
:i
11. Basis of Settlement:
Any loss under this policY sha. :'
of repairing, replacing or rein
without deduction for depre .
(a) liability shall in no eve
eed the a
(b) if repairs, replacement"6f\tl1:i
ordinance or law, any increase':"
12. When loss Payable:
...
":'i:;~i:\;':\.".....'. . . :
tion or expiration of this insurance the Insured shall
ty not included in such completed contract price and
mpleted value of the project. The actual premium shall
rate shown in this policy. If the premium so calculated
unt of such excess. If such premium is less than the
ference.
r named herein and any settlement·shall be based on the cost
e kind and quality and for like 'occupancy, on the same site
nded for repairs, replacement or reinstatement; and
quality is restricted or prohibited by any by-law, regulation,
tatement due thereto shall not be insured by this policy.
Any loss under th.is policy shall be payable Wi~A''[h\3~;
13. Permissions:
necessary and reasonable repairs which can be undertaken by them in
The Insureds) hereby grant permiSSion to the Insured to· carr
,000 but not exceeding any applicable limit of liability. 'If insurance in
respect of partial d<lmage insured herein,up to a maximum of
res'pect of such repairs is provided by this policy and subject to the Deductible and any limit of liability stated in Clause 2, the Insureds) will
reimburse the Insured for their proportion of the actual cost of such repairs. Nothing in this clause shall be deemed to have waived the
requirement that notice of loss be given forthwith t9 the Insurer(s) as provided in this POlicy.
14. Reinstatement:
.
.
Any loss hereunder shall not reduce the amount of this Policy.
15. Termination:
Termination by the Insureds) may only be effected by the Insureds) giving to the Insured thirty days notice of termination by registered mail.
16. Subrogation:
The Insureds), upon making any payment or assuming liability therefor under this policy, shall be subrogated to all rights of recovery of the
Insured against others and may bring action in the name of the Insured to enforce such rights, except that
(a) any release from liability entered into by the Insured prior to loss shall not affect the right of the Insured to recover, except as stipulated
in Clause 9 ( a ) , '
.
(b) notwithstanding the provisions of paragraph (a) hereof, all rights of subrogation are hereby waived against any corporation, firm,
individual, or other interest with respect to which insurance is provided by this policy, except as stipulated in Clause 9(a).
Page 3 of 9
-59-
CCDC201
(5-78)
17. Verification of Values:
The Insurer(s) or their duly appointed representative(s) shall be permitted at all reasonable times during the term of this policy or within a
year after termination or expiration to inspect the property insured and to examine the Insured's books, records and such policies as relate to
any property insured hereunder. This inspection or examination shall not waive nor in any manner affect any of the terms or conditions of this
) policy.
18. Definitions:
"leakage from fire protective equipment" means the leakage or discharge of water or other substance from within the equipment used for fire
protection purposes for the premises herein described or for adjoining premises and loss or damage caused by the fall or breakage of such
equipment.
"fire protective equipment" means tanks, water mains, hydrants or valves and any other equipment whether used solely for fire protection or
jointly for fire protection and for other purposes but does not include(j) branch piping from a joint system where such branches are used entirely for purposes other than fire protection;
Oil any water mains or appurtenances located outside of the described premises and forming a part of the public water distribution system;
(iii) any pond or reservoir in which the water is impounded by a dam.
19.
Vadal~ce: •
Whet.. ,h~ printed conditions of this policy conflict or are held to be at variance with this wording or any tYpewritten parts of the policy, this
wording and such typewritten parts shall in all cases be held to prevail and be binding on the Insureds}'
No term or condition of this policy shall be deemed to be waived in.:whole or in part by the Insureds) unless the waiver is clearly expressed in
writing-by a person authorized for that purpose by the Insureds). """,'."."'.,.
o~
)tiV
..
Breach
Conditions:
.
Where a loss occurs and there has been a breach of condition reli}fNe to a matt
disentitle the Insured to recover under the policy, the breach shl'i!fnot disentitl
(a) Unless the Insurer establishes that the loss was caused or '''\ributed to b
(b) If the breach of conditions occurred in any portion of t .
Notwithstanding anything contained elsewhere in this poli
insured shall not prevent recovery by any other party hereb
olicy by one of the parties hereby
IT IS HEREBY PROVIDED AND AGREED THAT'
tareach of Conditions by Mortgagor Owner or
This insurance and every documented rene'
in force notwithstanding any act, neglect
insured; including transfer of interest, an
specified in the description of the risk;
.
PROVIDED ALWAYS that the Mort
thirtY (30) consecutive days, or of a
increase of hazard (not permitted b
existed, according to the establishe ..
2.
3.
Right of Subrogation:
. Whenever the Insurer pays the .. '
therefor existed, it shall be Ie
amolint of such loss payme
mortgage equity in priority
mortgage or on the security .
as collateral to the mortgagi!'
Other Insurance:
If there be other valid and collectible insura
payable thereunder shall be taken into account
ORTGAGEE ONLY THEREIN - is and shall be
mortgagor, owner or occupant of the propertY
the property for purposes more hazardous than
of any vacancy or non-occupancy extending beyond'
HALL COME TO HIS KNOWLEDGE; and that every
- on reasonable demand - from the date such hazard
hazard, during the continuance of this insurance.
laims that - as to the Mortgagor or Owner - no liabilitY
t the Insured; but any subrogation shall be .limited to the
ic right of the Mortgagee to recover the full amount of its
payable to the Mortgagee - at law or inequity - then any amount
payable to the Mortgagee.
4.
Who May Give Proof of Loss:
.. In the absence of the .lnSl!red, or the inabilitY, refusal or OIi g
.:··the Insured to give notice of loss or deliver the required .Proof of Loss
under the policy, then the Mortgagee may give the notice upon becoming aware of the loss and deliver as soon as practicable the Proof of Loss.
5.
Termination:
The term of this mortgage clause coincides with the term of the policy;
(a) PROVI DED ALWAYS that, in all the Provinces except Quebec, the Insurer reserves the right to cancel the policy as provided by Statutory
provision but agrees that the Insurer will neither terminate nor alter the policy to the prejudice of the Mortgagee without the n'otice
stipulated in such Statutory provision, and
(b) ~ROVIDED ALWAYS that, in the Province of Quebec,the Insurer reserves the right to cancel the policy as provided by Statutory
Condition 19 as set forth in section 240 of the Insurance Act of Quebec but agrees that the Insurer will neither terminate nOr alter .the
policy to the prejudice of the Mortgagee without 15 days' notice to the Mortgagee by registered letter.
Foreclosure:
Should title or ownership to said property become vested in the Mortgagee andlor assigns as owner or purchaser under foreclosure or other.
'wise, this insurance shall continue until expiry or cancellation for the benefit of the said Mortgagee andlor assigns.
SUBJECT TO THE TERMS OF THIS MORTGAGE CLAUSE (and these shall supersede any policy provisions in conflict therewith BUT
ONLY AS TO THEtNTEREST OF THE MORTGAGEE),loss under this policy is made payable to the Mortgagee.
1,1,Ul, LU I
(5-78)
-60-
FOR USE IN ALL PROVINCES EXCEPT QUEBEC
CONDITIONS
The Statutory Conditions apply as Policy Conditions to the peril of fire and to all other perils insured by this policy, execpt as modified or supple- ,
men ted in this Policy of by riders or endorsements attached.
STATUTORY CONDITIONS
1.
Misrepresentation
If a person applying for insurance falsely describes the property to the prejudice of the Insurer, or misrepresents or fraudulently omits to
communicate any circumstance that is material to be made known to the Insurer in order to enable it to judge of the risk to be undertaken,
the contract is void as to any property in relation to which the misrepresentation or omission is material.
2.
Property of Others
Unless otherwise specifically stated in the contract, the Insurer is not liable for loss or damage to property owned by any person other than the
Insur-ed, unless the interest of the Insured therein is stated in the contract.
3.
Cl)ange of Interest
,,/\.::,:..,..
The lrisurlir is liable for loss or damage occurring after an authorized))ssi!ihml'll1t under the Bankruptcy Act or change of title by succession, by
operation of law, or by death.
.
..
4 ..
Material C h a n g e ' ,
Any change material to the risk and within the control and kn0¥'i.ledge of the Irlsi.Jred avoids the c(>"tract as to the part affected thereby, unless
the change is promptly notified in writing to the Insurer or itJJocal agent. arjg the Insurer wheQso:.rwtified may return the unearned portion,
if any, of the premium paid and cancel the contract, or ·may.rilotify thelnsli,rl!d in writing thai/if hedesirlls the contract to continue in force,
he must, within fifteen days of the receipt of the notice,:ii~.)' to the In~.4ier an addition"lpremium;ariqin default of such payment the
contract is no longer in force and the Insurer shall return the Lihearned portidh,·ifany, of the premium paid,:
5.
~er~~~t~~~tract
::::';;\c"::>\"c,:
may be terminated,
(a) by the Insurer giving to the Insured fifteen day~~"A9JJi;fj9ljiirminationby re;gi5itel·ed mail or five days' written notice of termination
personally d e l i v e r e d ; \ \ \ Y · \ iC:,;"::' . .
(2)
(3)
(4)
~~e~i:~~~s~~~:~:;~~::r~;~ii~~:~~;e:~~~t~sr~~i&l~r;~f~;':y t~e,;~~g&;@~;it6epro
rata premium for the expired time, but, in no
event, shall the pro rata premium for the ~J{pit§grAp~deemedto be lessth~i):*l}'{!)1inimumretained premium specified; and
(b) the refund shall accompany the notice Jgf~~'S'.i&~ipigmi~missubiect to a~JtJhml'lntordeterminationas to amount, in which case the
Whe~:f~h~:
:;~~'r=:t:at~~~~:~t~~ ~SyP:~:t/;iif;:~(}h~ln:~;~i!iia~ft:i~f~i{~'<!~\~~~Rr:kti~~gle the excess of the premium actually paid by
the Insured over the short rate premium J:~r the·exP.ired time, biiffi'liiJiWIJ\!llJ"lt\stiii:'······b/t rate premium for the expired time be deemed
~h::~;:~~h~na~n:e:i~~;~;~~~~:~:~tt~~r~::;:;:fj~~panymo::::;dZ;gW;gg;~~aWj~~~ableat par.
clause"t~) of subcOl)4Hion (1) of
registered letter at the post office to.Which it is addressed.
(5) The fifteen d·ays mentioned in
6.
Requirements After . , o s s i l K
.....4{[ .
thispqlldition~'o~ri;~nces to
.
run on the day following the receipt of the
.
/S . . \
(1) Upon the occurrence of any loss 0(8i'\p.9mage toihEi'tfW,Jred propl'irty, the Insurlld shall, if the loss or damage is covered by the contract,
a~~~~~:i:~;~:e~~~~;~~~~:itihwT;~::~~f~~9fRd~::t:.;;:r;;;10~ggfil:i
'i#f
.
.::)
(b) deliver as soon as practica .,.'•.,::. to thlP'···
r a pr~6fbf)Qss verified by a staiUtory declaration,
(j) giving a complete i '"tory of testroyed and·dll,
propertYllnd showing in detail quantities, costs, actual cash value and
particulars of amou.· of loss clai
(ii) stating when and·
the loss . u;red, and if ca
knows or
. ves,
•.
so far as the Insu
(iii) stating that the
did not a
through any wil.
ct or the procurement, means or connivance of the Insured,
(iv) showing the a
t of other .
ranees and the .
urers.
(v) showing the in
t ...Q.f the I f~I;!•. ,and of all
erty with particulars of all liens, encumbrances and other charges
upon the property, "..'\\\\::'.:.. '.'.
···"'·"\\:\\:.:.,,::"::(.\2
(vi) showing any changes in titliii.l,I'sll. occupaliof\;:.I!'fcation, Poss¢.~Sion or exposures of the property since the issue of the contract,
(vii) showing the place where the pioP'¢nv...insuredWas at the tirl't~of loss;
(c) if'required, give a complete inventory ;riJAq~m.9ged property .~:6'd showing in detail quantities, cost, actual cash value;
(d) if required and if practicable, produce book~·\§f:~4~:q!J.rt,· '·t%:ho~se receipts and stock lists, and furnish invoices and other vouchers
verified by statutory declaration, and furnish a copy·ol"th!l: • tten portion of any other contract.
(2)' The evidence furnished under clauses (c) and (d) of sUb-parag~aph (1) of this condition shall not be considered proofs of loss within the
meaning of conditions 12and 13.
7.
Fraud
Any fraud or wilfully false statement in a statutory declaration in relation to any of the above particulars, vitiates the claim of the person
making the declaration.
8.
Who may give notice and proof
Notice of loss may be given; and proof of loss may be made. by the agent of the Insured named in the contract in case of absence or inability
of the Insured to give the notice or make the proof, and absence' or inability being satisfactorily accounted for, or in the like case. or if the
Insured refuses to do so, by a person to whom any part of the insurance money is payable.
9.
Salvage
(1) The Insured, in the event of any 16ss or qamage to any property insured under the contract, shall take all reasonable steps to prevent
further damage to such property so damaged and to prevent damage to other property insured hereunder including, if necessary, its
removal to prevent damage or further damage thereto.
(2) The Insurer shall contribute pro rata towards any reasonable and proper expenses in connection with steps taken by the Insured and
required under sub-paragraph (1) of this condition according to the respective interests of the parties.
Page 5 of 9
eeoc
-61-
201
(5-78)
FOR USE IN ALL PROVINCES EXCEPT QUEBEC
)0. Entry, Control,Abandonment
'After 10$S or damage to insured property, the Insurer has an immediate right of access and entry by accredited agents sufficient to enable them
to survey and examine the property, and to make an estimate of the loss or damage, and, after the Insured has secured the property, a further
right of access and entry sufficient to enable them to make appraisement or particular estimate of the loss or damage, but the Insurer is not
entitled to the control or possession of the insured property, and without the consent of the Insurer there can be no abandonment to it of
insured property.
.
11. Appraisal
In the event of disagreement as to the value of the property insured, the property saved or the amount of the loss, those questions shall be
determined by appraisal as provided under The Insurance Act before there can be any recovery under this contract whether the right to
recover on the contract is disputed or not, and independently of all other questions. There shall be no right to an appraisal until a specific
demand therefor is made in writing and until after proof of loss has been delivered.
12. WheN loss Payable
The loss is payable within sixty days after completion of the proof of loss, unless the contract provides for a shorter period.
13. Replacement
(1) The Insurer, instead of making payment, may repair, rebuild, 06
so to do within thirty days after receipt of the proofs of loss. . ·.
··i~l!:..t!le property damaged or lost, giving written notice of its intention
.<:.".,.>:.,...
th'gi'~roperty within forty-five days after receipt of the proofs of
(2) In that event the Insurer shall commence to so repair, rebuitar- or replace
loss, and shall thereafter proceed with all due diligence to
..::.. ompletion
····eot.
14. Action
Every action or proceeding against the Insurer for the reco'
commenced within one year next after the loss or damage a .
tract is absolutely barred unless
15. Notice
Any written notice to the Insurer may be delivered at, or.
Province. Written notice may be given to the Insured.
.
addressed to him at his latest post office address as no .
outside Canada.
r head office of the Insurer in the
. ered to him or by registered mail
n "registered" means registered in or
1.
Notice to Authorities
Where the loss is due to malicious act, b
diate notice thereof to the police. or othe '.
2.
No Benefit to Bailee
It is warranted by the Insured that thi
3.
Pair and Set
In the case of loss of or damage to
damage to such article or article
damage be construed to mean to
4.
Parts
In the case of loss of or dam
several parts, the Insurer is n .
5.
Sue and labour
It is the duty of the Insur
.
~uch property. The Insurer sha 'cori.:...
< . the respective interests of the parties'; .
. spected to be so due, the Insured shall give imme-
d:ir~ctly to the benefit of any carrier or other bailee.
.'{~}::
uled or unsc~~duled, which are a part of a set, the measure of loss of or
ortion of t. .....,. total value of the set, but in no event shall such loss or
tv, wile 'he.r-.' ··eduled or unscheduled, consisting, when complete for use, of
e palf'lost or damaged, including the cost of installation.
nsured hereli:hder is lost to take all reasonable steps in and about the recovery of
y reasonablfand proper expenses in connection with the foregoing according to
6.
Basis of Settlement
'.
Unless otherwise provided, the Insurer is not liable
he actua(::tfash value of the property at the time any loss or damage occurs and the
loss or damage shall be ascertained or estimated accord.
·····tual cash value with proper deduction for depreciation, however caused,
and shall in no event exceed what it would then cost to repair
e the same with material of like kind and quality.
7.
Subrogation
The Insurer, upon making any payment or assuming liability therefor under this policy, shall be subrogated to all rights of recovery of the
Insured against any person, and may bring action in the name of the Insured to enforce such rights. Where the net amount recovered after
deducting the costs of recovery is not sufficient to provide a complete indemnity for the loss or damage sulfered, that amount shall be divided
between the Insurer and the Insured in the proportions in which the loss or damage has been borne by them respectively.
-62-
CCUC LUI
(5-78)
FOR USE IN THE PROVINCE OF QUEBEC ONLY
THE PRESENT CONTRACT IS SUBJECT TO THE INSURANCE ACT (Statutes of Quebec, 1974, chapter 70)
CONDITIONS
All of the Conditions set forth under the titles Conditions of the Policy, Variations in Conditions and Additional Conditions apply with respect to
all of the perils insured by this Policy except as these Conditions may be modified or supplemented in this Policy or by the Riders or Endorsements
attached.
CONDITIONS OF THE POLICY
1;
If any person insures his buildings or goods, and causes the same to be described otherwise than as they really are, to the prejudice of the
company, or misrepresents or omits to communicate any circumstance which is material to be made known to the company, in order to enable
it to judge of the risk it undertakes, such insurance shall be of no force with respect to the property in regard to which the misrepresentation
or omission is made; but when the application is made out by the company's agent, such application shall be deemed to be the act of the
company.
2.
After application for insurance, it shall be· presumed that any Policy sent to the Insured is intended to be in accordance with the terms of the
application, unless the company points out, in writing, the particulars wherein the Policy differs from the application.
3.
Any change in the use or condition of the property insured as defined by the Policy, made without the consent of the Insurer, and within the
control or knowledge of the. Insured, and which .increases the risk, shall void thePolicy, unless the change is promptly notified in writing to the
company or its local agent; and the company, when so notified, may return the premium for the unexpired period and cancel the Policy, or
may demand in writing an additional premium, which the I nsurecl;~haU, if he desires the continuance of the Policy, forthwith pay to the
company; and if he neglects to make such payment forthwith after r.~~liIVln!t~.l:I~h demand,the Policy shall be no longer in force.
4.
5.
6.
7.
8.
9.
The insurance is rendered void by the transfer of the interest in th~·;~bject ~f'i{-:fI:9m the Insured to a third person, unless such transfer is with
the consent or privity of the I n s u r e r . .
.·r.>
The foregoing rule does not apply in the case of rights acquired b~(succession orCin that specified in clause b of this paragraph.
a. The Insured has a right to assign the Policy with the thing in~tred, sUbjecLt~ the conditions ttl~rein contained.
b. A transfer of interest by one to another of several partnG~ or owners oJ/undivided propef1y ;';'WS'i3rejointly insured does not avoid the
.X.
{Wi...
A@"AY""\1W
Policy.
:
Where property insured is only partially damaged, no abandonmehfof.the sameWillpe aUowi!d except with)he consent of the company or its
agent; and, in case of removal of property to escape conflagration, the'(;(;u:npany V1iillcontril)ute to the lossimd expense attending such act of
salvage proportionately .to the respective interests of the cOTpa yor~ompartiesilrdthe fil~:Wed.\
Money, books of account, securities for money, and eVi<;l~A"':"'" ···"i'.tJHle a;~";d:t··j,,~Yred.<
.•
Plate, plate-glass, plated ware, jewellery, paintings, scul~icandrT1':J~fiiati/Jstrun%hts,patterns, plans, uncoined gold and
silver, works of art, articles of vertu, frescoes, c1ocks,W#l:
.'. ·./Jot insureHU/JJ~ss mentioned in'the Policy.
The company is not liable for loss if there is any PfMf!W~
···Y;.):.tnless th~~ompany's assent thereto appears in the
Policy or is endorsed thereon, nor if any sUbsequen(~ds.Q.t#"..' ..... ~cted by any o'P#!-iV, unless and until the company assents thereto,
or unless the company does not dissent in writinifW\iliibJ\Aid'wei;!ks after receivi
. . Jice of the intention or desire to effect the subsequent insurance, or does not dissent in writing after' thattC.···
"'Pefore the s u f i h e r insurance is effected.
In the event of any other insurance on the prPPJ1J:W her~i~:
.'
':-W~s aforesaid, then the company shaU, if such
other insurance remains in force, on the happiHliri·ifBf::il.QY loss o r · d a . ! l · p a y m e n t of a rateable proportion of such loss
or damage, without reference to the dates of fBi? different·pQ!.icies.
10. The company is nOlliable for the losses fOIJX:ing, that is fW:say : : , \ . > : ...
a. For the loss of property owned by an)'bther persont~an the Insured, YD'ess th~"in:tlit~:~t' of the Insured is stated in or upon the Policy;
b. For loss by fire caused by invasion, insurrection, ri?t,civil commotion,rT;tlitarx~rusuiped power, earthquake or volcanic eruption;
c. Where the insmance is upon buildings or their cofltents, for loss caused throug"hthl!want of good and substantial brick or stone chimneys;
or by ashes or embers being deposiWP, with the:~D?wledge and gO'nsent of the)l)lsured, in wooden vessels; or by stoves or stove pipes
being, to the knowledge of the Insurlid;Jir
unsafe tOQditi~n orirnproperl y secl1ted;
d. For loss or damage to goodsde~tfl:lyed O~darllaQ:'~dwhil~lJriqergbingany pror.:~'s~ in or by which the application of fire heat is necessary;
e. For lo'ss or damage occurring {~'btlildiP\ltor t~·"th\~r(c:;()ntent;:Xhile the bUltifi~gs are being repaired by carpenters, joiners,plasterers or
other workmen, and when }!'iss or damaQ~. to such builqin.9s or their con.Whts is due to such carpenters, joiners, plasterers or other
workmen, unless permissio?.'!ro execute s\j"eh repairs has beei1previousIY$ranted in writing, signed by a duly authorized agent of the
company. But in dwelling ry.!:>uses fifteen:qays are allowed in eiii::t(Y.~!"!rfor:Uricidental repairs without such permission;
f. For loss or damage occurr:J69 when petr9l~um, or rock,eart~\pr.coal';:;ii;:~@f\phene,gasoline, burning fluid, benZine, naphtha or any liquid
produ<:ts thereof, or anv./i;if .their cons.ttflJent parts (refin~:d.cOiJh()itforlighting purposes only, not exceeding five gallons in quantity, or
lubricating oil not bein!i';crude petroleum or oil of less speCific grilVi'tV:'.•than required by law for illuminating purposes, not exceeding five
gallons in quantity, exce~!El9)' or morii\i.l:w.n twenty·five p.gunds of gun~9Wder, is or are stored or kept in the building insured.or containing
the property insured,unless'p~rrnissionifgi\i.~.I). in writirrg:;by the comp~ny.
ilO
11. The company shall make good: Ib;~i~~'dSi;tgbY t~;:"~:~PI9st6~ of naturalXgVcoal gas, in a building not forming part of gasworks, and all other
loss caused by fire resulting from an eXPlosi"Ofii'cll:Bc;:J all loss caused by ligltfning, even if it does not set fire.
.
12. Proof of loss must be made by the Insured,
alth~Jgf;th~J?~Sbepayabxglo a third person.
13. Every person entitled to make a claim under this POliCYSh~;f'op~~wejKefollowing directions:
a. He shall 'forthwith after loss give notice in writing to the co'riiSJriy;
b. He shall deliver, as soon after as practicable, as particular an account of the loss as the nature of the case permits;
c. He shall also furnish therewith a sworn declaration establish ing:
1. That the said 'account is just and true;
2.. When and how thefiie originated safar as declarant knows' or beUeves;
3. That the fire was not caused through his wilful act or neglect, procurement, means or contrivance;
4. The amount of other insurances;
5. All Iiens and incumbrances on the property insured;
6. The place where the property insured, if moveable, was deposited at the time of the fire.
d. He shall, in support of his claim, if required and if practicable, produce books of account, warehouse receipts and stock lists, and furnish
invoices and other vouchers, and also copies of all h is pol icies; and shall separate, as far as reasonably may be, the damaged from the
undamaged goods, and exhibit for examination all that remains of the property which was covered by the Policy.
e. He shall produce, if required, a certificate under the hand of a magistrate, notary, commissioner for taking affidavits, or'municipal clerk,
residing in the vicinity in which the fire happened, and not concerned in the loss or related to the Insured or sufferers, stating that he has
examined the circumstances attending the fire, loss or damage alleged, that he is acquainted with the character and circumstances of the
Insured or Claimant, and that he verily believes that the Insured has, by misfortune and without fraud or evil practice, sustained loss and
damage in respect of the property insured to the amount certified.
Page 7 of 9
eeoc 201
-63-
(5·78)
FOR USE IN THE PROVINCE OF QUEBEC ONLY
) 14. The
above pro.;)#'; of loss may be made'by the agent of the Insured, in case of the absence or inability of the Insured himself tomake the same,
such absence or inabilitY being satisfactorily accounted for.
15. Any fraud or false representation in relation to any of the above particulars shall vitiate the claim.
16. If any differonce arises as to the value of the propertY insured, of the propertY saved or the amount of the loss, such value and amount and the
proportion lhereof (if any) to be paid by the company, shall, whether the right to recover on the Policy is disputed ornot and independently
of all other questions, be submitted to the arbitration of some person to be chosen by both parties, or if they cannot agree on one person, then
to three~rsons, one to be chosen by the partY insured and the other by the company, and the third to be appointed by the two persons first
chosen, or, on their failing to agree, then by a judge of the Superior Court sitting in the district wherein the loss has happened; and such
reference shall be subject to the provisions of articles 1431 and following of the Code of Civil Procedure. The award shall, if the company is in
other respects liable, be conclusive as to the amount of the loss and proportion to be paid by the company. Where the full amount of the claim
is awarded, the costs shall follow the event, and, in other cases, all questions of costs shall be in the discretion of the arbitrators.
17. The lou shall nOt be payable until sixtY dilYS aft~r completion of the proofs of. loss, unless otherwise provided for by the contract of
insurance.
.
18. The company, instead of making payme~t, may repair, ~ebuild or repi~ce, within a reason'able time, the propertY damaged or lost, giving notice
of their intention within fifteen days after the receipt of the proofs h in required~. ..
.'.
19. The insurance may be terminated by the company, by giving not
·:~\.~tfect, and, if on the cash plan, by tendering therewith a rateable
proportion of the premium for the unexpired term, calculated fro..
e termi""'"
of the notice. In the case of personal service of the notice,
five days" notice, excluding Sunday, shall be sufficient. Notice mav be given
y company having an agency in the Province of Quebec, by
registered letter addressed to the Insured at his last post.office~ddressnotifi .,.. 0 the company, and where no address has been notified, then
to the post office of the agency from which the application w#"received, andj)Where such noti~.. is by letter, then seven days from the arrival
at any post office in the Province shall be deemed good n ....,.• ' The polic,r shall cease aft ......."'..
nder and notice aforesaid, and at the
expiration of the five or seven days as the case may be.. ' . . . iff"
the co~any or its authorized
The insurance, if for cash, may also be terminated by the
.r~d;
g~.~written "noti~'
n,in force, and shall pay to the
agent, in which case the company may retain the customary":". rate toiiit. ime the
Insured the balance of the premium paid.
20. No condition of the Policy shall be' deemed to have
~art. unless the waiver is clearly
expressed in .writing, signed by. an agent of the compan
bV
)~
21. An officer or agent of the company, who assumes ..
connected with the insurance, shall be deemed PRIM "
.
.
22. Every action or proceeding against the company
unless commenced within one year next after. the I
23. Any written notice to the company for any pu
may be by letter delivered at the head office of t
manager. or ~.gent, at such head office .or by so
.
.
ode thereof is not expresSly provided by law,
gistered lener addressed to the company, its
company,
~hori~ed agen~.of the
THIS POLICY IS ISSUED ON T
A.
1.
If this policy covers, specifical:y
hereby modified to Ihe extent tha
2.
3.
Conditions 8 and 1 Dc are delete.<:.",,~ ..
.
~{;~},._,=~.'i';
Condition 9 is replaced by al')\(''i:J th if""'"
in the event of there being .;~;y other
pay men tof a r;1teable 'prop ";"\on of suc
4.
Condition 1 Db is replaced
10. The Insurer is not lia
b. loss cir dDm;lge
i. war, invus
.
. or miliiary p
.
ii. riol,.!:i.vil corrimo I
5.
e;
Conditions 1Od.
f ,lnd 11 ;Ire repla
·"n
or keeping 01 materials; explosion' orlightrl'tlt~"'
6. CondltTciri'20 '[s'replaced by 'the foiJowi'n'g; ..,_ ..•. ;.
20. No term or condition of this Policy shall be dee
. expressed in writing, signed 9Y <l p.erson DUthqriz.eq.!or th
then' such Conditions 6 and 7 are
erinsurance but i~ th'e absence of other provision!s) and
e happening of any loss or damage be liable only for the
he dates of the different pOlicies.
b~ dec'lanid or notl, ci'vil war, rebe'lIion, revolution, insurrection
ptto tl1e.e.xtent otherwise provided ill.thisPolicy.
this Policy concerning: -' goods undergoing process; repair; storage
ther provision!s) these Conditions. are deleted.
waived in whole or in. part by' the Insurer unless the waiver is clearly
.. !pose by .theJnsurer;
following CQndilions are added:. ~
This Po'liey' does nOl cover loss or dan:iage caused bV co;ltamination by radio-active material.'
If th~ i~'su';~nce j':' ~espect of- ony' ;'~~pe~:d~i~roYed'ordarriag~d is' ~bjeCt to'~'CO.lnsura~ce Cla~Se or to a Stated Amount Clause or a
Gtiaranteei;f.Amoun.l Clause to the eUeci:tli,lt-unless,he Insured.maintains insurance an amou~t Specified as a percentage of the value of
s~ch' proper.ty. Q! .:is ;, lixeri .nmounf:·1l.fjJ:faH.'b~fa'c6·in~urerfo(~l)e difference be.tween the actual amoun~ of insurance and the amount sCi
specified, the Insurer shall OIlt he liable fonl greater proportion of the insured loss or damage than the Sum Insured by it in respect of
such propertY bp-itrs 10 thp. minimum amount of insurnnce reQuired by such Co·lnsurance Clause or Stated Amount Clause or Guaranteed
Amo.utll CIDuse as the case may be. If there is comprisnd in this Policy a declaration or reporting form providing that every olher insurance
'on property described in this Policy Shilll be written upon the same declaration or reporting form, providing for the reporting of values
andac1justmel1t of prt'mium and providing thaI the ...m·)unt of insurance may vary j'n accordance with the values reported, this Policy shall
lJesubject to ;111 It',ms nn(~ conditions set forth in sucn declaration or reporting form and the amount of insurance at any location al nny
given ,';rne shall h~ c~l!!rm:"ed as set 'fort!' in "lucn declr.ration cir 1eporting ,form.' .
..
,Ii
l;l;Ul; C:U I
64-
(5-78)
FOR USE IN THE PROVINCE OF QUEBEC ON L Y
ADDITIONAL CONDITIONS
1.
Notice to Au thorities
Where the loss is due to malicious mischief, !lurgl,,,V. robbery, theft, or attempt thereat, or is suspected to be so due, the Insured shall
immediate notice thereof to the police or other authorities having jurisdiction.
2.
No Benefit to Bailee
.
..
.
It is warranted by the Insured that this insurance shall in no wise enure directly or indirectly to the benefit of any carrier or other bailee.
3.
Pair and Set
In ·the case of loss of or damage to any article or articles, whether scheduled or unscheduled, which are a part of a set. the measure of loss of or
damage to such article or articles shall be a reasonable and fair proportion of the total value of the set, but in no event shall such loss or
damage be construed to mean total loss of set.
4.
Parts
In the case of loss of or damage to any part of the insured propertY ,whether scheduled or unscheduled, consisting when complete for use, of
several parts. the Insurer is not liable for more than the insured value of the part lost or damaged, including the cost of installation.
5.
Sue and Labour
It is the duty of the Insured (a) in the event of any loss or damage to any properti insured underthe contract;to'take all reasonable ste·ps to
prevent further damage to any such property so damaged and t o '
t damage to other propertY insured hereunder including, if necessary,
its removal to prevent damage or further damage thereto; and
.
ble steps in and about the recovery of such propertY. The
(b) In the event that any property insured hereunder is lost t"
Insurer shall contribute pro rata towards any reasonable and
n connection with the foregoing according to the respective
interests of the parties.
6.
Basis of Settlement
Unless otherwise provided, the Insurer is not liable beyond.
loss or damage shall be ascertained or estimated according'
and shall in no event exceed what it would then cost to repair
7.
Subrogation
The Insurer, upon making any payment or assuming Ii
of the Insured against any person. and may bring act"
after deducting the costs of recovery is not sufficien'
divided between the Insurer and the Insured in the
THESE VARIATIONS AND ADDITIONS ARE MA
INSOFAR AS. BY THE COURT OR JUDGE BEFO
BE JUST AND REASONABLE REQUIREMENTS 0
ny loss or damage occurs and the
or depreciation. however caused,
nd qualitY.
to a transfer of all rights of recovery
hts. Where the net amoun t recovered
ANCE ACT, AND SHALL HAVE EFFECT
NG THERETO, THEY SHALL BE HELD TO
CCDC 201-1
-65-
~
(5-781
ADDITIONAL NAMED INSURED ENDORSEMENT
Attached to and forming part of Policy No.
Effective
, 19
and in consideration of an additi~!tii
hereby acknowledged by the Insurer), each of the following are hereby added as
below:
, (receipt of which is
with respect to the operations described
1.
2.
3.
jT"';//;//;;;\;:;;1\,.
i\
Description of operaJi({#i!f
COO"'"",;oo of
""f;ll {;f#1
Located at
All other terms and condition
In Witness Whereof the Insurer,
Authorized Representative
Dated at
this
day of
,
_
19_~
eeoc 201-2
(5-781
Attached to and forming part of Policy No.
Effective Date
Additional Premium $
.
This· policy is
means waves,
'urpose, has executed and signed this endorsement.
In Witness Whereof
)
Authorized Representative
Dated at
day of
,19
,.
-66-
FIR E P ROO F OF LOSS
I.B.C. CLAIM FORM NO.7
This form is provided to comply with the Insurance Act
and without prejudice to the liability of the Insurer.
INSURER
.
INSURED.
.__ .
.
"'"
._
.. _.
.'
__
CLAIM NO.
._..
__ .__
. ...
_
.. _
__
._._.
. . ._. __
.
__ ..
__ .
_._.
.
.. __ . _. _. __ .__ ..
_.
N.me
under Pol icy No
...
._.. __
__
.
.__ . . _. _... __
.. _. _._. __
_. __
.
Address
.. __ . __
_.
.. _
__
_..
. in force until __
__ ._. __ ._ .. _..
.. _
_
_
_ .
against loss or damage by ._.. ._
_to the amount of .. _ __
_
_.
_ _
Dollars
according to the terms and conditions printed therein, including all forms and/or endorsements attached thereto and
form ing part thereof.
TIME AND ORIGIN: A loss occurred on the
day of..
..
, 19
, at
M, caused by
LOCATION: The sa id loss occurred at
.
OCCUPANCY: The building insured or containing the property insured was occupied for no other purpose than the
follow ing
"""
_
_.
_
_. __
_. __ .__
",
_
_
_""""'
.. _
_.. _..
TITLE AND INTEREST: At the time of the loss the interest of the Insured in the property described was sole and
unconditional ownership and no other person or persons had any interest therein, lien or encumbrance thereon, except
CHANGES: Since the above policy was issued there has been no change in use, possession, location or exposure of the
property described, except . . _ _._
__ ..__
_ _.. . _.. _
_.. __ .. __ .
._.
._._. ._ _.. _ __
._. __ ..
._. _, .
INSURANCE AND LOSS: A particular account of the loss is attached hereto and forms part of this proof. The actual
cash value of the property insured, the actual amount of loss or damage, the total insurance thereon at the time of tl-said loss and the amount claimed under this policy are as follows:
Item Involved
_. _._
-
-
-
-
-
-
__ • • • -
_. -
-
_.
•
_.
-
-
•
Total Loss
or damage
Cash Value
Replacement
Cost
__ 0
•
_.
0
_
_
_
•
•
0
Amount named Claimed under
in this policy
this policy
Total
Insurance
•
__ •
•
••
__
••
_. _.
•
_
••
•
.0
'0
_.
••
__
TOTALS
OTHER INSURANCE: There is no other contract of insurance written or oral, valid or invalid, except (Insurers and
amounts).
The said loss or damage did not occur through any wilful act, neglect, procurement, means or connivance of t.he Insured
or this declarant.
Payment of this claim to .__
_
__
__ ._.. _
.
is hereby authorized and inconsideration of such payment the Insurer is discharged forever from all further claim by
reason of the said loss or damage. All. rights to recovery from any other person are hereby transferred to the Insurer which
is authorized to bring action in the Insured's name to enforce such rights. All right, title and interest in any salvage is
hereby assigned to the Insurer.
I, __ .
. .__ .
.
._. _.__ .
. . .
.
__ .
;;'l~"
do solemnly declare that the foregoing claim and statements are to the best of my knowledge and belief true in ever,particular, and I make this solemn declaration conscientiously believing it to be true and knowing that it is of the same
.force and effect as if made under oath, and by virtue of The Canada Evidence Act.
DECLARED severally before me at
_.. _ _
_ .
p
this. __
day of _
__ .
.. _
__ .__
19
.
_.
•
._.
• • __
•
•
_. _. _.
• • _. P.
__ P
••
•
__ •
-- -- ------- -- ---- --- --- -- --- -- _. -_.- ----- ---..--- ---. ---....---...--- ---.
-.
__ - -
-I~;u-;~d
()
)
I
ENGINEERS' PROFESSIONAL
LIABILITY INSURANCE
-------------PROGRAM - - - - - - - - - - - - -
..
St
. , ,.
:.
Master Policy LSS740
Simcoe and Enc. Endorsed by: The Association of Consulting Engineers of Canada
General Insurance
The Canadian Council of Professional Engineers
Company
. PROFESSIONAL LIABILITY CONSORTIUM '. ,
<
<
-
-
_.-
-"; "', \,/".' ":
. , .
<
,..
"
-
_
,-
"'"
'
,~THE INSURANCE·
MANAGERS
<.,
THE AGREEMENTS BETWEEN YOU
AND THE INSURER
This POLICY is the contract between YOU and
THE INSURER and was issued in consideration of the
premium YOU have agreed to pay. This POLICY was issued
in reliance upon the representations which YOU have made
and on the insurance application which is now part of this
contract.
.\
PART I
DEFINITIONS
Throughout this POLICY certain words have been capitalized
to indicate that they have a specific meaning as shown below:
INSURED(S)
YOU, YOUR
2. any present or former partner, executive officer, director,
shareholder or employee of the NAMED INSURED while
acting within the scope of his duties for the NAMED
INSURED.
The NAMED INSURED shown on the Declarations Page of
this POLICY and all other persons or organizations defined as
'INSURED' below.
THE INSURER
YOUR insurance companies as subscribed.
NAMED INSURED
The person(s) or organization(s) specifically designated on the
Declarations Page of this insurance certificate.
POLICY
The insurance certificate issued to the NAMED INSURED
,,·l-tich certificate shall be considered a separate and individual
JUCY incorporating the terms and conditions of the Master
('oiicy L55740, thc application for insurance, the Declarations
Page and any cndorsement issued by THE INSURER.
I. The NAMED INSURED, and
POLICY PERIOD
The period from the Inception Date of this POLICY to the
Expiration Date both as shown on the Declarations Page or
such lesser period as a result of the cancellation of this
POLICY.
CLAIM
I. A written or an oral demand for money or services, or
2. a written or oral allegation of breach in the rendering or
failure to render professional services
reccived by YOU and rcsulting from a single error, omission or
negligent act.
---------------,----_..-.-
.....
-68E,
All CLAIMS arising from a single error, omission or negligent
act shall be considered a single CLAIM regardless of the
number of INSUREDS or the number of persons or organizations making a CLAIM.
CLAIM EXPENSE
All the expenses THE INSURER incurs to investigate,
defend, settle, arbitrate or litigate a CLAIM covered by this
POLICY. This includes costs and fees for the hiring of
investigators, adjusters, experts, consultants, arbitrators,
mediators and lawyers and also court and arbitration costs and
costs for the attendance of witnesses other than you.
DAMAGES
Compensatory DAMAGES payable to claimants but does not
include interest, fines, penalties (whether contractual or other);
punitive or exemplary DAMAGES, or fees which have either
not been paid to YOU or which YOU are asked to return.
DEDUCTIBLE
The first portion of the DAMAGES payable by YOU for each
CLAIM and which amount YOU have agreed to pay in consideration for a reduced premium for this POLICY.
THE INSURER agrees that YOU shall not be required to pay
more than twice the amount shown as the DEDUCTIBLE on
the Declarations Page of this POLICY for CLAIMS
concerning which THE INSURER has paid damages under
this POLICY. If the POLICY PERIOD is longer than one
year, then YOU will be responsible for twice the amount shown
as DEDUCTIBLE for each twelve (12) month period, or part
thereof, counting from the inception date shown on the
Declarations Page.
PART II
YOUR,'INSURANCE COVERAGE
THE'INSURER'S.OBLIGATIONS
THE INSURER is formally undertaking to fulfill three (3)
obligations for YOUR benefit. YOUR POLICY DEDUCTIBLE
applies to the first obligation. The second and third obligations
are covered with no DEDUCTIBLE on condition that civil suit or '
arbitration proceedings are brought in Canada.
l. DAMAGES
In excess of YOUR DEDUCTIBLE, THE INSURER will pay
on YOUR behalf all sums which YOU become liable to pay as
DAMAGES arising out of a CLAIM providing YOUR liability
is the result of an error, omission or negligent act in the
performance of professional services for others in YOUR
capacity as an architect or engineer.
The maximum amount THE INSURER will pay as
DAMAGES for each CLAIM, no matter how many
INSUREDS there are under this POLICY or how many persons or organizations make a CLAIM; and the aggregate
amount of liability for all CLAIMS made against YOU during
the POLICY PERIOD, are as shown on the Declarations Page
of this POLICY.
2. DEFENCE
THE INSURER will defend YOU in any civil suit or arbitration proceedings arising out of a CLAIM for which coverage is
provided by this POLICY, ~ven if the allegations against YOU
are groundless, false or fraudulent. THE INSURER will. conduct such investigation and negotiations as it deems expedient.
THE INSURER'S obligations to defend YOU cease as soon as
its limits of liability have been exhausted through payment of
DAMAGES.
3. SUPPLEMENTARY PAYMENTS
Until YOU have exhausted THE INSURER'S limits of liability,
THE INSURER will pay, for each CLAIM, the following:
(a) CLAIM EXPENSES;
(b) all premiums on appeal bonus or bonds to release
attachments, THE INSURER !las no obligation to
furnish such ,bonds but' orty to pay the premiums
thereon: '
,
(c) all costs taxed against YOU, all court and arbitration
costs owed by YOU and all interest upon that part of a
judgement which falls within the remaining limits of
liability at the time;
(d) YOUR expenses incurred for emergency medical and
surgical relief to others and which YOU deemed
necessary following an accident which YOU honestly
believed might have been the result of an error,
omission or negligent act on YOUR part.
YOUR POLICY TERRITORY
THE INSURER'S obligations under this POLICY apply to
CLAIMS arising out of actual or alleged errors, omissions or'
negligent acts which occur anywhere in the world provided
CLAIMS are made and proceedings are instituted in Canada~
or in the United States of America, its territories and
possessions.
YOUR POLICY PERIOD
YOUR POLICY covers CLAIMS made against YOU for the
first time during the POLICY PERIOD no matter when the
actual or alleged error, omission or negligent act took place.
There are three conditions which must be met for such a
CLAIM to be covered.
First, YOU must have reported the CLAIM to THE INSURER
during the POLICY PERIOD.
Secondly, YOU must have had no knowledge, prior to the
POLICY PERIOD, of such CLAIM or of the circumstances,
dispute or controversy out of which it arises.
Thirdly, there must not be any other valid and collectible
insurance available to YOU concerning such CLAIM.
Also, for your protection, if during the POLICY PERIOD
YOU report to THE INSURER circumstances of an error,
omission or negligent act which any reasonable person or
organization would expect to subsequently give rise to a
CLAIM, then THE INSURER will consider these a
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r"LAIM even if a formal demand is advanced against YOU
)Iy after the POLICY PERIOD.
Any such CLAIM shall be subject to the limit of liability and
DEDUCT! BLE in effect at the time the circumstances were
reported to THE INSURER.
THE INSURER'S LIMITS OF LIABILITY
The maximum amounts THE INSURER will pay as
DAMAGES per CLAIM and for the entire POLICY PERIOD
are as shown on the Declarations Page of this POLICY no
matter how many INSUREDS there are under this POLICY or
how many persons or organizations make a CLAIM.
If the POLICY PERIOD is longer than one year, THE
INSURER'S limits of liability as shown on the Declarations
Page of this POLICY shall apply separately to each twelve (12)
month period or part thereof counting from the Inception Date
also shown on the Declarations Page.
THE INSURER'S obligations to defend and to make
supplementary payments are in addition to its limits of liability
as spelled out in YOUR POLICY on condition that civil suit or
arbitration proceedings are brought in Canada and that the civil
suit or arbitration be subject to the laws of Canada or one of its
provincial jurisdiction. In all other circumstances, the
INSURER'S obligations to defend and make supplementary
payments are part of its limits of liability.
PART III
THE EXCLUSIONS TO YOUR INSURANCE COVERAGE
EXCLUSIONS
THE INSURER will not cover YOU, pay DAMAGES,
provide YOU with a defence or make supplementary payments
for CLAIMS arising out of:
I.
)
(a) the infringement of any trademark or patent or
copyright;
(h) estimates of profit, return on capital, economic return
or other estimates giving rise to forecasts of economic
return;
(b) YOUR insolvency or bankruptcy or YOUR undergoing receivership or liquidation;
(i)
YOUR participation in a joint venture, partnership,
associateship or any other entity which has not been
endorsed on this POLICY as an additional NAMED
INSURED unless this POLICY was specifically issued
for this purpose;
(j)
the nuclear energy hazards as defined in the nuclear
energy exclusion endorsement forming part of this
POLICY.
(<;) YOUR advising or requiring, or failure to advise or
require, any form of insurance, suretyship or bond;
(d) YOUR failure to complete drawings, pIans,specifications
jorscheduies on time or YOUR failure to act upon shop
drawings on time, unless such failure is the result of
an error or inaccuracy in the preparation of these
documents;
the liability of others YOU have assumed under
contract or agreement except that THE INSURER
wiUcoyer YOU for·YOUR liability for YOUR
ertlployees, agents, servants and subconsultants;
2.
THE INSURER will not cover YOU, pay DAMAGES or
provide YOU with a defence or make supplementary
payments for CLAIMS made against YOU:
(a) by a business enterprise
(f)
express warranties, guarantees and penalty clauses
YOU have given for the benefit of others unless
YOUR liability would have already existed at law in
the absence thereof;
(g) the performance of services not usual or customary
for professional architects or engineers;
(i) in which YOU either directly or indirectly have
an interest; or
(ii)that directly or indirectly has an interest in YOU;
(b) by any employee, director, partner or officer of any
such business enterprise.
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PART IV
GENERAL CONDITIONS
YOUR DUTIES IN THE EVENT
OF A CLAIM
OTHER INSURANCE
WHAT YOU MUST DO
1.
2.
3.
NOTICE: As soon as YOU become aware of a CLAIM
YOU must immediately notify THE INSURER, giving ~ll
pertinent details as to the circumstances surrounding the
CLAIM. As events unfold which may have an effect on
the CLAIM, YOU must continue to keep THE INSURER
informed.
COOPERATION: YOU must cooperate with THE
INSURER and, upon request, provide written statements,
submit to examinations and questioning, assist in effecting
settlement, secure and give evidence and assist in any
reasonable way THE INSURER deems necessary. YOU
must give this cooperation at YOUR own cost.
DEDUCTIBLE: YOU must pay YOUR DEDUCTIBLE
promptly upon request.
WHAT YOU MUST NOT DO
1.
2.
ADMISSIONS: YOU must not admit responsibility,
assume any obligation or make any commitment of money
or services without THE INSURER'S consent, even if you
believe there may have been an error, omission or
negligent act on YOUR part. Any such admission, obligation or commitment will vitiate this POLlCY as far as
that particular CLAIM is concerned. The only exception
to this is the cost of emergency medical or surgical relief
to others YOU have incurred in good faith.
RECOVERIES: YOU must not do anything which will imperil THE INSURER'S rights of recovery against any
Other party.
YOUR CONSENT TO SETTLE
THE INSURER will not settle any CLAIMS without the
consent of the NAMED INSURED.
If the NAMED INSURED refuses to consent to the settlement
of a CLAIM as recommended· by THE INSURER, then all
THE INSURER'S obligations with respect to that CLAIM
shall cease. If later YOU settle the CLAIM, or if the matter is
resolved through arbitration or litigation, then THE
INSURER'S liability for that CLAIM shall not exceed the
amount for which the CLAIM could have been settled plus the
costs and expenses incurred 'up to the date of refusal of
consent.
If on the Declarations Page of this POLlCY it is indicated
that this is a General Practice Policy, then this insurance shall
be in excess of all other valid and collectible insurance
available to YOU and this insurance shall not be called upon
in contribution.
If on the Declarations Page of this POLlCY it is indicated
that this is a Specific Project or Joint Venture Policy, then this
insurance shall be primary to any other professional liability
.
insurance.
THE INSURER'S RIGHTS TO
RECOVER FROM OTHERS
After THE INSURER has paid DAMAGES under this POLlCY,
YOUR rights to recover against any other party are automatically transferred to THE INSURER to the extent of the
payment it made. YOU shall do everything needed to assist
THE INSURER and YOU must not prejudice its rights of
recovery.
ASSIGNMENT OF POLICY
YOU cannot assign YOUR rights under this POLlCY to
anyone else without THE INSURER'S consent. If YOU should
be adjudged bankrupt, insolvent, incompetent or die during
the POLlCY PERIOD, this POLlCY will cover YOUR legal
representatives in the same manner as it presently covers YOu.
YOU agree that any notice of any kind THE INSURER mails
to the NAMED INSURED at the address shown on the
Declarations Page shall constitute notice to YOUR legal
representatives.
MORE THAN ONE INSURED
If there is more than one NAMED INSURED under this
POLlCY, then, as far as CLAIMS advanced by others are
concerned, this POLlCY must be read as if a separate POLlCY
had been issued to each. This will not, however, increase THE
INSURER'S limits of liability.
THE INSURER'S RIGHT OF AUDIT
During the POLlCY PERIOD, during any extension thereof
and for one year thereafter, THE INSURER has the right to
inspect YOUR premises and operations and to examine and
audit YOUR books, but strictly as they relate to this insurance
or to the calculation of the premium for this POLlCY. THE
INSURER assumes no responsibility whatsoever by exercising
or declining to exercise such right.
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PREMIUM
YOUR premium for this POLICY will be shown on the
Declarations Page as either a Fixed Premium or a Deposit
Premium adjustable upon cancellation or expiry of this
POLICY.
If YOUR POLICY Premium is an Adjustable Deposit
Premium, then upon cancellation or expiry of this POLICY,
YOU must declare to THE INSURER the amount of gross
fees for professional services billed by YOU during the
POLICY PERIOD. THE INSURER will then calculate YOUR
final premium by multiplying the rate per one hundred dollars
($100.00) of fees shown on the Declarations Page by the total
amount of fees YOU have declared.
If this premium adjustment produces a difference between the
final premium and the deposit premium of less than two
hundred dollars ($200.00), YOU and THE INSURER both
agree to waive the adjustment and forgive either the additional
premium payable by YOU or the return premium payable to
YOU as the case may be. Any premium adjustment is subject
to THE INSURER retaining at least the Minimum Retained
Premium shown on the Declarations Page.
Gross fees shall mean the gross amount billed by YOU to
clients, including that portion of fees which YOU pass on to
subconsultants but excluding charges for extraordinary
disbursements. Gross fees shall also include the market value
of non-monetary compensation received by YOU in lieu of fees
for professional services rendered.
jANCELLATION BY YOU.
..
.OU may cancel this POLICY at any tIme by glvmg THE
INSURER notice in writing stating the date cancellation is to
take effect. YOU must return the POLICY to THE INSURER
if possible.
•
PREMIUM ADJUSTMENT
FOR CANCELLATION
If the premium for this POLICY is a Fixed Premium, the
amount of earned premium calculated upon cancellation shall
be computed on a pro-rata basis in accordance with the
number of days during 'which the POLICY was in force.
If the premium is an Adjustable Deposit Premium, the amount
of earned premium shall be calculated by multiplying the rate
per one hundred dollars ($100.00) of fees shown on the
Declarations Page by the amount of gross fees for professional
services billed by YOU while the POLICY was in force.
THE INSURER is entitled to retain the Minimum Retained
Premium shown on the Declarations Page.
NOTICE TO EACH OTHER
The NAMED INSURED shall be considered the agent of all
other INSUREDS under this POLICY.
All notices THE INSURER sends to YOU under this POLICY
must be sent to the NAMED INSURED at the address shown
on the Declarations Page.
All notices YOU send to THE INSURER under this POLICY
must be sent to either:
Simcoe & Erie General Insurance Company
505 York Blvd.,
Hamilton, Ontario
L8N 3S3
or
National Program Administrator
99 Metcalfe Street
Suite 1200
Ottawa, Ontario
KIP 6L7
CANCELLATION BY THE INSURER
If THE INSURER decides to cancel this POLICY, it must
notifyt/1e NAMED INSURED, in writing, stating the date
cancellation is to take effect.
letHE INSURER cancels because YOU have not paid the
.entire premium. the date of cancellation shall be at least
fifteen (15) days after the date on which the notice was mailed.
IfTI-fEINSURER cancels for any other reason, the date of
cimcellation shall be at least forty-five (45) days after the date
.()n.r~ichthenoticewas mailed .
.....•• IfT()Ilowing Cancellatiort there is a return premium payable
.. to YOU. THE INSURER'S cheque will be sent to YOU as
soon as possible but the cancellation is not contingent upon
this.
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POLICY CONFORMITY WITH
STATUTES
Terms of this POLICY which are in conflict with the statutes
of the province wherein this POLICY is issued are hereby
amended to conform to such statutes.
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SPECIAL ENDORSEMENT
NUCLEAR ENERGY EXCLUSION
Endorsement No. 1
This POLICY does not apply:
As used in this POLICY:
(a) to liability imposed by or arising under the Nuclear Liability Act; nor
(1) The term "nuclear energy hazard" means the radioactive,
toxic, explosive, or other hazardous properties of radioactive material;
(b) to bodily injury or property damage with respect to which
an INSURED under this POLICY is also insured under a
contract of nuclear energy liability insurance (whether the
INSURED is unnamed in such contract and whether or not
it is legally enforcible by the INSURED) issued by the
Nuclear Insurance Association of Canada or any other
INSURER or group or pool of INSURERS or would be an
INSURED under any such POLICY but for its termination
upon exhaustion of its limit of liability; nor
(c) to bodily injury or property damage resulting directly or
indirectly from the nuclear energy hazard arising from:
(i) the owndership, maintenance, operation or use of a
nuclear facility by or on behalf of an INSURED;
(ii) the furnishing by an INSURED of services, materials,
parts or equipment in connection with the planning,
construction, maintenance, operation or use of any
nuclear facility; and
(iii) the possession, consumption, use, handling, disposal
or transportation of fissionable substances, or of other
radioactive material (except radioactive isotopes, away
from a nuclear facility, which have reached the final
stage of fabrication so sas to be useable for any scientific, medical, agricultural, commercial or industrial
;urnose) used, distributed, handled or sold by an
IN:::;uRED.
As used in this POLICY:
(i)
The term "nuclear energy hazard" means the radioactive,
toxic, explosive, or other hazardous properties of radioactive material;
(ii) The term "radioactive materiaP' means uranium, thorium,
plutonium, neptunium, their respective derivatives and
compounds, radioactive isotopes of other elements and any
other substances that the Atomic Energy Control Board
may, by regulation, designate as being presdribed
substances capable of releasing atomic energy, or as being
requisite for the production, use or application of atomic
energy;
(iii) the possession, consumption, use, handling, disposal or
transportation of fissionable substances, or of other
radioactive material (except radioactive isotopes, away
from a nuclear facility, which have reached the final stage
of fabrication so as to be useable for any scientific,
medical, agricultural, commercial or industrial purpose)
used, distributed, handled or sold by an Insured.
12/85
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(2) The term "radioactive material" means uranium, thorium,
plutonium, neptunium, their respective derivatives and
compounds, radioactive isotopes of other elements and any
other substances that the Atomic Energy Control Board
may, by regulation, designate as being prescribed
substances capable of releasing atomic energy, or as being
requisite for the production, use or application of atomic
energy;
(3) The term "nuclear facility" means:
(a) any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a
critical mass of plutonium, thorium and uranium or
anyone or more of them;
.
(b) any equipment or device designed or used for
(i) separating the isotopes of plutonium, thorium and
uranium or anyone or more of them, (ii) processing or
utilizing spent fuel, or (iii) handling, processing or
packaging waste;
(c) any equipment or device used for the processing,
fabricating or alloying of plutonium, thorium or
uranium enriched in the isotope uranium 233 or in the
isotope uranium 235, or anyone or more of them if at
any time the total amount of such material in the
custody of the INSURED at the premises where such
equipment or device is located consists of or contains
more than 25 grams of plutonium or uranium 233 or
any combination thereof, or more than 250 grams of
uranium 235;
(d) any structure, basin, excavation, premises or place
prepared or used for the storage or disposal of waste
radioactive material;
and includes the site on which any of the foregoing is
located, together with all operations conducted thereon and
all premises used for such operations.
(4) The term "fissionable substance" means any prescribed
substance that is, or from which can be obtained, a
substance capable of releasing atomic energy by nuclear
fission.
(5) With respect to property, loss of use of such property shall
be deemed to be property damage.
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ENDORSEMENT NO. 2
Forming Part of Your
Professional Liability Insurance
Subscription Policy
POLLUTION EXCLUSION
The purpose of this endorsement is to restrict YOUR coverage.
THE INSURER will not cover YOU,pay DAMAGES, provide YOU with a
DEFENCE or make SUPPLEMENTARY PAYMENTS for:
(1)
CLAIMS arising out of the actual, alleged or threatened
discharge, dispersal, release or escape of pollutants.
(2)
Any loss, cost or expense arising out of any governmental
direction or request that an Insured test for, monitor,
clean up, remove, contain, treat, detoxify or neutralize
pollutants.
(3)
Fines, penalties, punitive or exemplary damages arising
directly or indirectly out of the discharge, dispersal,
release or escape of any pollutants.
This exclusion shall not apply:
(1)-
To CLAIMS arising by reason of professional services
performed by YOU in connection with the design and
construction of potable water systems, storm water systems
and sewage systems; or
(2)
To that portion of CLAIM for DAMAGES, by reason of
professional services performed by YOU, which DAMAGES have
been directly occasioned by Explosion or Fire, it being
agreed that the INSURER'S obligations to provided YOU with a
defence or make SUPPLEMENTARY PAYMENTS shall only be in
respect to CLAIMS for DAMAGES directly occasioned by
Explosion or Fire and not in respect to any other
liabilities, obligations, duties, costs,expenses, fin~s or
penalties imposed on yOU by reas<;in of the actual, alleged or
threatened discharge, dispersal, release or escape of
pollutants.
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Page 2 of 2
For the purpose of this exclusion, the following definitions shall
apply:
Pollutants
any solid, liquid, gaseous or thermal irritant or
contaminant, including but not limited to, smoke,
vapour, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
reconditioned or reclaimed.
Potable water
Storm water
Sewage
drinking water
water caused by rain, hail, snow or sleet
refuse, liquids or waste matter carried by sewers.
Signature of the INSURED:
Date:
All other terms and conditions of YOUR POLICY remain unchanged.
This endorsement is now part of YOUR SUBSCRIPTION POLICY NO.L55750
Certificate of Insurance No.
Issued to
and all other INSUREDS under YOUR POLICY.
Effective Date:
12:01 a.m., Standard Time
Executed and signed on behalf of the INSURERS by National Program
Administrator, a division of ENCON INSURANCE MANAGERS INC., as duly
authorized.
National Program Administrator
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