All major capital works projects which include PPP components, or which are procured via a PPP, are exempt from the requirements of TC16-11: Mandatory Principal Arranged Insurance for all major capital works projects4 to obtain principal arranged insurance from iCare. Appropriate mechanisms for procuring insurances should be considered early taking into account:
• availability of the relevant insurances,
• anticipated cost of procuring those insurances; and
• best value for money solutions.
Responsible Agencies should engage early with its insurance adviser and iCare to identify the most appropriate allocation of risk on a project-specific basis having regard to the:
• degree of State financial investment in the PPP
• likely benchmark cost of insurance
• anticipated availability of commercial insurance; and
• balance of construction costs vs operational costs.
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