Principal Controlled Construction Insurance Manual

11TH AUGUST 2015 - 30TH JUNE 2016

BRISBANE CITYCOUNCIL

PRINCIPAL CONTROLLED CONSTRUCTION INSURANCE MANUAL

CONFIDENTIALITY

ThisManualcontainsinformation,whichisconfidentialtoBrisbaneCityCouncil,and Marsh PtyLtd.

Accordingly, we trust you will understand this manual is provided to Brisbane City Council, and its officers, employees andrepresentatives inconfidenceandmaynotbereproducedinanyformorcommunicatedtoanyotherperson,firmor company(unlessinaccordancewiththeTenderInvitation)withoutthepriorapprovalof Marsh PtyLtd.

PRIVACY

Marshandourassociatedentitiesvaluetheprivacyofyourpersonalinformationandarecommittedtohandling your personal information in accordance with the Australian Privacy Principles and the Privacy Act. Full details of how we collect, hold, use and disclose personal information about an individual is available in our Privacy Policy at the Legal Notices section of

The PrivacyOfficer Marsh PtyLimited

PO Box H176, Australia Square NSW1215

Ph: 02 8864 7688 | Fax: 02 8864 7626 | Email:

Introduction

This manual is intended to provide a working summary of Brisbane City Council’s Principal Arranged Construction Insurance program for the period 11th August 2015 - 30th June 2016. The details shown for the various policies are incomplete in detail and do not over-ride or alter the terms of the policies. The full terms and conditions are contained in the policy documents and it is essential that these be read carefully, with particular attention to theexclusions.

Please contact Marsh, if you have any doubts about the scope of cover or the services weprovide.

Katrina Markey | Senior AccountExecutive

Ph: +61 7 3115 4554 | Fax: +61 7 3115 4500| Email:

IssuingOffice:

Marsh PtyLtd

ABN 86 004 651512

123 EagleStreet

BRISBANE QLD4000

GPO Box2743

BRISBANE QLD4001

Date ofIssue:

25 August2015

Marsh ServiceTeam

A platform of the Marsh approach is the provision of personal service through a dedicated service team who are totally focussed on your business. Your service teamis:

GENERAL INSURANCECONTACTS
Managing Principal -Mining / Jamie Coughlan Telephone: (07) 31154530
Facsimile: (07) 31154500
Mobile: 0412 365630
Email:
Principal -Mining / StaceyLloyd
Telephone : (07) 31154536
Facsimile : (07) 31154500
Mobile: 0450 769405
Email :
KatrinaMarkey
Telephone: 07 31154554
Senior Account Executive – Construction / Facsimile : 07 31154500
Mobile: 0415 679752
Email :

Marsh Office Marsh PtyLtd

ABN 86 004 651512

123 EagleStreet

BRISBANE QLD4000

GPO Box2743

BRISBANE QLD4001

Our Website

Visit our website at for information about our extensive range of products and services.

ImportantNotices

YourDutyofDisclosure–ContractsofGeneralInsurancesubjecttotheInsuranceContracts ACT

Before you enter into a contract of general insurance with an insurer, you have a duty, under the Insurance Contracts Act 1984, to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer's decision whether to accept the risk of the insurance and, if so, on whatterms.

You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of generalinsurance.

Your duty, however, does not require disclosure ofmatters:

that diminish the risk to be undertaken by theinsurer,
that are of common knowledge,
that your insurer knows or, in the ordinary course of its business, ought to know,or
as to which compliance with your duty is waived by theinsurer.

Non-Disclosure

If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce its liability under the contract in respect of a claim, or may cancel thecontract.

If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from itsbeginning.

Please note that your duty to disclose applies also when you amend, alter, vary or endorse apolicy.

Disclosure – Subsidiary & AssociatedCompanies

Your Duty of Disclosure - Cover which is arranged for subsidiary and/or associated companies in addition to namedinsureds.

If you enter into a contract of insurance on behalf of any subsidiary and/or related company of the named insured, that subsidiary and/or related company has the same duty of disclosure as the named insured. We recommend that you ensure that each subsidiary and/or related company is made aware of the duty of disclosure and given an opportunity to make any necessarydisclosures.

Utmost GoodFaith

Every insurance contract is subject to the doctrine of utmost good faith, which requires that parties to the contract should act toward each other honestly and fairly, avoiding any attempt to deceive in assuming and performing contractualobligations.

Failure to do so on the part of the insured may permit the insurer to refuse to pay a claim or to cancel the policy orboth.

Essential Reading of PolicyWording

We will provide you with a full copy of your policy as soon as it is received from theinsurer.

It is essential that you read this document without delay and advise Marsh Pty Ltd in writing of any aspects which are not clear or where the cover does not meet with yourrequirements.

Change of Risk orCircumstance

It is vital that you advise the insurer of any changes to your company's usual business. For example, insurers must be advised ofany

mergers oracquisitions,
changes in occupation orlocation,
new products or services,or
new overseasactivities.

If you are in doubt as to whether to notify your insurer of a change in business operations,please consultMarsh.

Please note that your duty to disclose applies also when you amend, alter, vary or endorse apolicy.

Subrogation

Some policies contain provisions that either exclude or reduce the insurer’s liability for a claim if you waive or limit your rights to recover damages from another party in relation to anyloss.

You may prejudice your rights with regard to a claim if, without the prior agreement from yourinsurers, you make any agreement with a third party that will prevent the insurer from recovering the loss from that, or anotherparty.

If you have such agreements, we may be able to negotiate with the insurer to permit them and therefore we request you advise Marsh of theirexistence.

Examples of such agreements are the ”hold harmless” clauses which are often found in leases, in maintenance or supply contracts from burglar alarm or fire protection installers and in repaircontracts. If you are in doubt, please consultMarsh.

Un-namedParties

Most policy conditions will exclude indemnity to other parties (eg. mortgagees, lessors, principals, etc.) unless their interest is properly noted on thepolicy.

If you require the interest of a party other than the named insured to be covered, you must specifically requestthis.

TradeSanctions

Marsh is unable to provide insurance or reinsurance broking, risk consulting, claims or otherservices or provide any benefit to the extent that the provision of such services or benefit would violate applicable law or expose Marsh or its affiliates to any sanction, prohibition or restriction under UN Security Council Resolutions or under other trade or economic sanctions, laws orregulations.

PrivacyNotice

Marsh Pty Ltd (ABN 86 004 651 512 AFS licencenumber 238 983) and our associated entities value the privacy of your personal information and we are committed to handling your personal information in a responsible way in accordance with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (Cth). Full details of how, when and from where we collect, hold, use and disclose personal information is available in our Privacy Policy at the Legal Notices section of Our Privacy Policy also contains information about how you may complain about a breach of the APPs and our complaint handlingprocess.

In the course of performing our business activities including providing insurance and risk services such as arranging insurance policies and advising on insurance options, reinsurance, managing claims or consulting on other risks for our clients and those of our associated entities, insurers and other insurance intermediaries we (and our authorised agents) may collect or disclose your personal information from or to other persons, whichinclude:

a person authorised byyou;
a third party such as youremployer;
our employees, authorised representatives, associated entities and contractors andother business support service providers for the purposes of the operation of ourbusiness;
insurers, reinsurers; other insurance intermediaries and premiumfunders;
persons involved in claims such as solicitors, assessors, repairers, builders, investigators, your employer or medical practitioners and rehabilitation providers;or
governmentbodies, regulators, the Financial Ombudsman Service, law enforcement agencies and any other parties where required or authorised by law.

Marsh may also collect and disclose your personal information for other purposes as outlined in our Privacy Policy, which includes marketing activities. We will only use and disclose your personal information for a purpose permitted by law or that you would reasonably expect. We will requestyour consent for any otherpurpose.

When you give Marsh personal information about other individuals, we rely on you to have made them aware that you will or may provide their information to us, the purposes for which we use it, the types of third parties we disclose it to and how they can access it (as described in this notice). If it is sensitive information we rely on you to have obtained their consent to these matters. If you have not done these things, you must tell us before you provide the relevantinformation.

If you do decide not to provide us with the information required we may not be able to provide a service or arrange aproduct.

Your personal information may be disclosed to our associated entities, service providers, insurers, reinsurers and other insurance intermediaries located in countries outside of Australia. The countries this information may be disclosed to will vary from time to time, but may include the United Kingdom, the United States, Canada, India for business support services and international insurance market hubs in Bermuda, Brazil, China, Dubai, Hong Kong, Ireland, Japan, Singapore, South Korea, United Kingdom, and the United States. We take reasonable steps to ensure that overseas recipients of your information do not breach the privacy obligations relating to your personalinformation.

By continuing to engage us, you confirm that you have read this Notice and the Marsh Privacy Policy available on our website and you authorise and consent to Marsh collecting, holding, using and disclosing any personal information related to your application for insurance in accordance with those terms, including for the purposes explained and to the persons and authorised third parties identified. You may modify or withdraw your consent at any time by contacting our Privacy Officer (whose details are outlined in the Privacy Policy and Notices). If you do not give us consent or subsequently modify or withdraw your consent, we may not be able to provide you with the products or services youwant.

If you have any questions or comments in relation to Privacy or if you wish to access your personal information or update it please contact our Privacy Officerby:

Email – Phone – (02) 88647688

Post – PO Box H176, Australia Square NSW1215

What should you do if you have aComplaint?

Contact us and tell us about your complaint. We have our own internal dispute resolution procedure, a copy of which is available upon request. In the first instance you should address any concern or complaint to the Marsh representative servicing your account. Alternatively, you may contact the Marsh Complaints Officer on (03) 96032338.
If your complaint is not resolved to your satisfaction, the matter will be referred to the Marsh Complaints Officer to investigate and take appropriate action. You will be advised within 15 working days of our decision. If the matter is complex and a longer period is required you will be informed.
We are a member of an external dispute resolution scheme. If your complaint cannot be resolved to your satisfaction by us you may be able to refer the matter to the free consumer serviceoffered by thisscheme.

You may be able to refer your complaint to the Financial Ombudsman Service (FOS) Limited, which is a national scheme for consumers aimed at resolving disputes between clients and their broker or insureds and their insurance companies or claimants who have a dispute with another person’s insurance company in relation to motor vehicle property (i.e. third party) claim. The FOS also provides advice and other information about general insurancematters.

If you have any query about whether your complaint can be handled by FOS, call 1300780808 or .

Events Occurring Prior toCommencement

Some policies provide cover on an “occurrence” basis. Your attention is drawn to the fact that such policies do not provide indemnity in respect of events that occurred prior to commencement of the contract.

Construction InsuranceProgram

Annual ContractWorks

Insured:Brisbane City Council and/or subsidiary companies asPrincipal

All contractors and subcontractors to the extent of their activities in relation to the InsuredProjects

Architects, engineers, other consultants and suppliers whilst on site, but only whilst acting within the scope of their duties in connection with the InsuredProjects

Any other party or person as required by contract oragreement

InsuredProjects:All contracts and/or work of every kind and description relating tothe Principal’s

capital works program incorporating building and civil works within council municipality and all other occupations and activities incidental theretocommenced during the period ofinsurance.

DurationofPolicy:From 4:00pm Australian Eastern Standard Time on 11th August2015

To 4:00pm Australian Eastern Standard Time on 30thJune2016

Insurer:

Name

Chase Underwriting Pty Ltd on behalf of ACE InsuranceLimited

PolicyNo.%

04IK701605100%

Covering:ConstructionPeriod

Physical loss of, damage to or destruction of the Contract Works, from an event not otherwise excluded by thePolicy.

Maintenance/Defects LiabilityPeriod

Physical loss of, damage to or destruction of the Property Insured, from an event not otherwise excluded by the Policy, as a result of the Insured complying with his/their obligations under the Maintenance/Defects Liability provisions of the contract or agreement.

MaximumConstructionPeriod:36 months any one contract, including any testing and commissioningperiods

MaximumDefectsLiability24 months any onecontract

Period:

MaximumTesting &4 weeks any onecontract

CommissioningPeriod:

PropertyInsured:All real and personal property of every kind and description, not excluded in the

Policy,including:

All materials, goods, equipment and supplies (including owner Supplied Materials) forming a permanent part of, or which will form a permanent part of, the Interest Insured;
All temporary works and/or structures erected, installed and/or constructed by the Insured for the purpose of completing the Interest Insured, including but not limited to, props, slipform, shuttering, formwork, falsework, hoardings, bunding, bridging and thelike;
Contract consumables, including, but not limited to, oil, petrol, first aid equipment, safety boots and thelike;
All plans, files, records, specifications and the like pertaining to theInterest

Insured, be they in book or similar document form, or held on computer software;

Principal supplied temporary buildings (inclduing site offices, portable houses, caravans,messaccomodation,workers’camp,storesandworkshops)together with their contents of all such temporarybuildings

owned by the Insured, or in the Insured's care, custody or control, or for which the Insured is legally liable or has assumed the responsibility to insure, and which is to be used in the course of construction of, or in connection with, or for the purpose of, the InterestInsured.

TerritorialLimits:Anywhere in the Commonwealth of Australia, including whilst in transit (otherthan

ocean marine shipment) between any placestherein.

LimitsofLiability:SumsInsured

ContractWorks$30,000,000 anyone

Occurrence

Except for the following which are limitedto:

WetWorks$12,500,000 anyone

Occurrence

Bridge Work$10,000,000 anyone

Occurrence

Sub-LimitsofLiability:The following shall be additional to the above SumInsured

ProfessionalFees$3,000,000 anyone

Occurrence

Removalof Debris$3,000,000 anyone

Occurrence

Temporary Protection and/orGovernmentExpenses$1,500,000 anyone

Occurrence

ExpeditingExpenses20% of loss,maximum

$6,000,000 anyone

Occurrence

EscalationAllowance15%

Search andLocateCosts$3,000,000anyoneOccurrence

ClaimsPreparationCosts$1,000,000anyoneOccurrence

Fire Extinguishment Costs$2,000,000anyoneOccurrence

Construction PlantEquipmentNotInsuredPlans andDocuments $500,000 anyone

Occurrence

LossPrevention10% of contractvalue,anyoneOccurrence

ExistingProperty$10,000,000

Included within the Sum InsuredAbove

Transit$1,000,000anyone

Occurrence

Temporary /OffsiteStorage$3,000,000anyoneOccurrence

ExcessLEG3 Claims$500,000 each andeveryclaimMajorPerilsClaims $250,000 each and everyclaim

Allotherclaims$50,000 each and everyclaim

Policy Wording:Marsh Annual Contract Works Manuscript PolicyWording

SpecialConditions:Notwithstanding the expiry date of this insurance, policy cover will continue forall

contracts and/or work insured commenced during the Duration of Policy until the contract and/or work has achieved finalcompletion.

BasisofSettlement:Replacement and/or Reinstatement, and Extra Costs of Reinstatementmade

necessary by Act of Parliament, Regulation or By-Law. These Conditions shall be in accordance with the Policy unless otherwiseagreed.

Endorsements: Unsealed Roads Limitation – 1km per section and 5km in the aggregate per

contract

Open Trenches, Pipes, Cables & Ducts Limitation – 1km per open trench and 5km in the aggregate per contract and the following conditions must bemet:

-Immediately after pipes have been laid, cables and ducts aresecured against displacement by flood orinundation;

-Pipes and ducts are plugged and manholes are closed in such amanner to prevent the ingress of water or other foreignbodies;

-Trenches arebackfilledimmediatelyaftercompletionofthelasttests

Normal Action of the Sea – insurers shall not provide indemnity for loss or damage resulting from normal action of the sea, which means the state of the sea manifests itself up to number 8 on the Beaufortscale
Overtopping of Cofferdams – insurers shall not provide cover in respect of loss or damage arising from the overtopping of a cofferdam caused by a flood with a return period of less than 20years

Cancellation:Insured - atanytimeInsurer – 60 BusinessDays

Principal Controlled Construction Insurance Manual