Page 9 - Megaprojects Playbook

2 RISK MANAGEMENT CONSIDERATIONS

ENGAGEMENT DURING CONTRACTING

◆ RM must review all contracts prior to commencing negotiations with clients.

HASKELL BONDING NOTIFICATIONS AND LIMITS

◆ RM MUST review bond forms and bond limits with our Surety during the contracting review timeline
◆ Mega Projects need specific review to insure project bonding limits are accurate and available.

VENDOR PREQUALIFICATION

◆ RM procedures remain essentially unchanged.
◆ Subcontracts of $18M or more will need reviewed by the SDI carrier for approval to place
in SDI program. This is a lengthy process and requires additional information from the
team and the subcontractor. Build this review into the procurement schedule.
◆ Consider breaking larger scopes to two or more subcontractors to manage performance.

SUBCONTRACTOR & VENDOR BONDING AND SDI

◆ RM procedures remain same but with heightened risk that larger projects introduce larger
subcontracts that may require prior bonding review and/or SDI approval.
◆ Consider interim review of vendors if lead time between contract and execution is greater than 12 months.

PROJECT SPECIFIC POLICIES / OCIPS /WRAPS

◆ From a RM perspective as we do not wish to expose the Haskell Corporate program to large
projects risks. Large projects MUST be reviewed during contracting to work with RM in order
to secure project specific, OCIP or CCIP coverage as necessary for these projects.
◆ DO NOT ASSUME that an insurance standard charge of 1.2% will be adequate. Large projects may
require increased limits or coverages and need to be discussed in the budgeting phase.

PEPSICO

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