I am working on a project covered by an OCIP. I enrolled into the program about a year ago and finalized my insurance credit based on my insurance rates at the time. However, my rates have changed since then. Will my insurance credit calculation be adjusted based on my new insurance rates? Molly, Redwood City, CA
Molly, Let’s look at it this way; what happens under the traditional approach of providing insurance when the contractor’s rates change? Are they able to go back and revise their bid or renegotiate their price? Usually not; it works the same way when a wrap-up is in place. Since price and/or labor rates are usually agreed upon before entering into a contract or purchase order they are not typically adjustable during the project term; regardless of whether or not a wrap-up is being utilized.
Do you have any questions about wrap-ups? Submit your question here and it will be reviewed and answered within 48 hours.