6.5.5.2  Insurance

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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4  See https://arp.nsw.gov.au/tc16-11-mandatory-principal-arranged-insurance-pai-all-major-capital-works-projects.