Summary of challenges and benefits for real estate developers

This post is part of a series sponsored by TSIB.

Real estate development is a business process that focuses on the overall development and renovation of real estate, whether it is an existing property or a newly built property. When it comes to real estate development, it is important to obtain appropriate final insurance before the project begins. Finding the right insurance program is critical to the efficiency and overall success of your project.

There are two main types summary:

• OCIP (Owner Control Insurance Program)
• CCIP (Contractor Controlled Insurance Program)

Both of these summary types have their own challenges and benefits.

OCIP challenges

The OCIP is made up of owners who are responsible for the program. OCIP requires the owner to provide collateral requirements. This may include his 100% advance payment of insurance premiums and expected losses, letters of credit, or cash collateral. In such cases, the Owner may also lap admin To reduce the burden of administrative procedures. Owners must continue to engage in the claims management process after project completion, which can take a total of 5 to 10 years, and any savings or losses may not be determined until all claims are resolved. Become.

CCIP challenges

In CCIP, the general contractor (GC) assumes full responsibility for the program. This means that all risk for the project falls directly on the GC. The GC is responsible for handling subcontractor registration, assisting with all administrative documentation, and managing project billing.hire lap admin It helps limit some of the administrative pressure on the GC. CCIP’s billing management process makes the GC responsible for this activity, allowing the owner to close the books upon project completion.

Advantages of OCIP

OCIP provides owners with many of the program’s benefits, including:

• Claims management
• Applicable scope
• Enhanced even coverage
• reduction in litigation
• Cost management
• Improved safety

Benefits of CCIP

With CCIP, GC gathers many of the benefits of the program, including:

• The premium includes all variable and fixed costs
• A strong return to work program
• Consistent risk transfer in all documents
• Warranty costs – no deductibles
• Established crisis management protocols

When a real estate developer chooses OCIP or CCIP, the main goal is to provide overall assurance that the project is well protected. If you have further questions about the challenges and benefits that real estate developers face between her CCIP and OCIP, Contact TSIB now!