
New Development: CCIP or OCIP?

We are always learning new things (especially on our development projects). Today, the development discussion with our owner's representative was the cost of insurance on one of our development projects and how, if possible, could we save money.
The discussion evolved into whether we use CCIP or OCIP.
CCIP (Contractor Controlled Insurance Program) and OCIP (Owner Controlled Insurance Program) are both insurance programs used in construction projects. However, they differ in who controls the insurance policy and the scope of coverage provided.
CCIP, is a program where the contractor is responsible for purchasing and administering the insurance policy. The coverage provided by the policy generally includes the contractor's employees and subcontractors, as well as the project owner and other entities involved in the project. CCIPs are typically used on larger projects with multiple contractors and subcontractors (i.e., our projects).
OCIP, on the other hand, is a program where the project owner is responsible for purchasing and administering the insurance policy. The coverage provided by the policy generally includes all contractors and subcontractors working on the project, as well as any other entities involved in the project. OCIPs are typically used on smaller projects with a single contractor or subcontractor (potentially, less expensive).
To provide an example, let's say a large construction project is being built, involving several contractors and subcontractors. The project owner may decide to implement a CCIP, where the general contractor is responsible for purchasing and administering the insurance policy. The policy would cover all contractors and subcontractors working on the project, as well as the project owner.
On the other hand, if the project is smaller, with only one contractor or subcontractor, the project owner may decide to implement an OCIP, where they purchase and administer the insurance policy. The policy would cover the contractor or subcontractor, as well as any other entities involved in the project.
In summary, both CCIP and OCIP are insurance programs used in construction projects, but the main difference lies in who controls the insurance policy and the scope of coverage provided, which ultimately drives the cost and amount of time involved.
We always try to look at ROE, in addition to ROI. Return on Effort vs. Return on Investments.
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