6
PLAYBOOK TEMPLATES
Construction Build-Out Agreement
A Construction & Build-Out Agreement governs property improvements or fit-outs between owner and contractor. This playbook discusses scheduling, change order processes, and liability for defects.
Insurance Requirements
Negotiation strategy
Ensure that the Contractor provides proof of insurance with adequate coverage limits. Require regular updates and notifications of any changes to the policy.
Negotiate for reasonable coverage limits that align with industry standards. Ensure that the insurance requirements are feasible and cost-effective.
Essential elements
1
Types of Insurance
Specify required insurance types.
2
Limits of Liability
Define coverage limits for policies.
3
Proof of Insurance
Require certificates and updates.
Action framework
ACCEPT
Propose edits if coverage limits are insufficient or if specific types of insurance are missing.
EDIT
Reject if the clause lacks essential insurance types or fails to provide adequate protection.
ADD
Add language for additional coverage in high-risk scenarios or specific project needs.
PRO TIP
Always consult with an insurance expert to tailor coverage to the specific risks of the project.
Real-world examples
FAVORABLE
Comprehensive Coverage Clause
"The Contractor shall maintain comprehensive general liability insurance with limits not less than $1,000,000 per occurrence."
NEUTRAL
Standard Coverage Clause
"The Contractor shall provide proof of insurance upon request."
UNFAVORABLE
Inadequate Coverage Clause
"The Contractor may provide insurance at their discretion."
Alternative scenarios & positions
High-Risk Projects
For projects in high-risk areas, such as flood zones, require additional insurance like flood or earthquake coverage to ensure adequate protection.
Short-Term Contracts
For short-term contracts, negotiate for temporary insurance policies that provide necessary coverage without long-term commitments.
International Operations
When operating internationally, ensure compliance with local insurance regulations and consider additional coverage for political risks.
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WEEK 2
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WEEK 3
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WEEK 4
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