Contract Procedures Manual (SM021) Part A – Appendix XXIII

Request for approval of insurance amounts PS contract

To:	<<Guidance note: Required for all PS contracts >$10m. This memo should be sent to Marsh, with their comments incorporated for endorsement prior to being submitted to the Senior Manager Procurement.>> insurance@nzta.govt.nz (on behalf of Senior Manager Procurement)
CC:
From:
Date:
Waka Kotahi reference:	File reference: [File Number]
Subject:	Insurance levels: [Project Name]

1	Purpose

To seek the Senior Procurement Manager’s approval for the proposed insurance levels for [Project Name], [Project Phase] in accordance with Waka Kotahi’s Contract procedures manual (SM021), Liability and insurance for PS contracts.

2	Action/Deadline

Senior Manager Procurement to endorse the proposed insurance levels below, or propose an alternative course of action by 10am [day and date]. <<Guidance note: Provide adequate time frame, typically 3 weeks. If shorter time frame required please substantiate the requirement.>>

3	Insurance amounts proposed

Description	Value
Limitation of liability (CCCS 6.2)	$[amount] <<Guidance note: Limitation amount will generally be in accordance with SM030 General and special conditions of contract. i.e. Five times the fee with a minimum limit of $500K and a maximum limit of $2M. Project Manager to advise Senior Manager Procurement where different, and why.>>
Duration of liability (CCCS 6.4)	[x years] from the date of completion of the services <<Guidance note: Duration will generally be in accordance with SM030 General and special conditions of contract.( note default duration is 6 years). Project manager to advise Senior Manager Procurement where different, and why.>>
Professional indemnity (CCCS 6.5)	$[amount] with at with at least one automatic reinstatement of the minimum amount per 12-month period of insurance <<Guidance note: Default is for the amount specified for limitation of liability above>>.
Public liability (CCCS 6.5)	$[$ amount]] million <<Guidance note: Default is $5 million>>
Base estimate of PS fees	$[amount] over a period of [‘x’ months/years]
Base estimate of PW (if applicable)	$[$ amount] million.

4	Background

<<Guidance note: Provide brief description of project phase, e.g. this phase is for the design of the 10km four-lane upgrade with one interchange structure for…… Phase period will be for ‘x period’, construction start anticipated to commence {date] and expected to run for ‘x period’>>.

Tenders for this contract close [contract closure date]

5	Contract risk profile

<<Guidance note: This is the critical part of the submission to the Senior Manager Procurement; ensure a rigorous assessment of risk has been undertaken. Identify in this section the Extreme and High risks with their current exposure risk score, which should they impact, may result in a claim under the policies to be established.

Append the Risk and Action Registers, with the date of issue identified>>.

6	Insurance background

<<Guidance note: Prior to submitting this memo to insurance@nzta.govt.nz, the project / network manager must discuss the contract with our insurance advisors to enable this section of the Appendix XXIII to be satisfactorily completed. Contact Marsh for further information regarding what the insurers will require. Note that this may vary between projects.

7	Recommendation

That the Senior Manager Procurement approves the insurance levels proposed for inclusion in the contract documents.

Prepared by: << Project Manager/Network Manager>>

Name:	Signed:	Dated:

Endorsed by the Senior Manager Risk & Assurance:

Name:	Signed:	Dated:

Approved by the Senior Manager Procurement:

Name:	Signed:	Dated: