If my wrap-up is winding down, but construction is still ongoing, what is the normal practice regarding the decision on whether to extend or close out the wrap-up?
Tim from Kissimmee, FL
Tim, if the project is still undergoing a significant portion of contract work, you would generally want to extend your wrap-up. Also, you will need to be aware if the contractors that are still performing work at the job site have wrap-up exclusion on their own policies before making your decision. If the remaining construction work is punch list work, you may want to close out your wrap-up.
Does your company request a form from the contractors when the OCIP is ending?
Tabitha from Fort Worth, TX
Tabitha, when the project is winding down, we request a notice of work termination form from each active contractor. From the form, we receive their final completion date, signature from the completing contractor, and signature from the prime/GC contractor confirming completion. With this form, we can begin the close out process.
I am a little unclear about the close out process for contractors? What is entailed?
Stephen from Anaheim, CA
Upon notification of work completion, CRS will perform a final review of the contractors file to ensure that all payroll has been reported completely and accurately and that the sub is in compliance with all other program requirements. Depending upon how the program was set up, this review may also include a revised calculation of the subs insurance credit based on actual reported payroll. For final notification, the carrier is sent notification to cancel coverage and a termination letter is sent to the contractor.
In addition to the insurance carrier auditing at the time of close out, will your company also be auditing to ensure that the carriers audits are indeed correct?
Taijj from Reston, VA
To proceed with carrier audits, CR Solutions will provide the carrier with the final payroll and contract values that were tracked throughout the project. Upon completion, the carriers audits will then be made available to CR Solutions for review. If the insurance carrier has any discrepancy with our records, we will review the discrepancies with the auditor to make sure the correct numbers are being used for the wrap-ups.
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