ACE Advisory: Public-Private Partnership Delivery Creates New Risks for Contractors
June 11 2015 - 7:05PM
Business Wire
The United States faces an expected shortfall of $1.6 trillion
in needed infrastructure spending through 2020, reports the
American Society of Civil Engineers1. This expectation is leading
state and local governments to increasingly turn to public-private
partnerships, known as P3s, to help meet critical infrastructure
needs without having to raise taxes or increase debt loads. ACE
Group today released an advisory that examines the exposures and
complex insurance issues U.S. contractors may face as they engage
in infrastructure projects financed through P3s.
“Driving Change: Public-Private Partnerships- A New Model for
Infrastructure Projects Brings New Risks for Contractors” was
co-authored by Stephen Buonpane, Vice President, ACE Construction;
Bruce Jervis, Executive Vice President, ACE Commercial and Inland
Marine; and Alex Wells, Senior Vice President and Chief Operations
Officer, ACE Westchester Casualty. This advisory is the latest
installment in ACE’s series of insurance and risk management
perspectives for risk managers.
“The use of P3s has started to gain ground in the U.S., and many
contractors are encountering these partnerships for the first time,
particularly in states such as Florida, Texas and California,”
observed Mr. Buonpane. “While there are significant benefits to
P3s, the complexity and long-term nature of these projects creates
a set of unique risk challenges from which the traditional
insurance program approach may no longer be a fit. Before engaging
in P3s, participants should work with their brokers and an insurer
who has demonstrated experience in both the construction industry
and with P3s to help mitigate this new host of expanded risks.”
Key highlights from ACE’s advisory include:
- Growth and traction of P3 construction
projects in the United States
- Opportunities and risks related to P3
projects
- Risk management and insurance
considerations for contractors addressing P3 projects
To read the full advisory, click here.
The material presented in this report is not intended to provide
legal or other expert advice. It is presented for informational use
only. Readers should consult legal counsel or other technical
experts, as applicable, to answer any specific questions they may
have. Product highlights are summaries only; please see the actual
policy for terms and conditions. Product offerings may vary by ACE
location.
1 ASCE’s New Report Card Bumps the Nation’s Infrastructure Grade
Up to a D+, American Society of Civil Engineers, March 2013, See:
http://blogs.asce.org/asces-new-report-card-bumps-the-nations-infrastructure-grade-up-to-a-d/
About ACE Group
ACE Group is one of the world’s largest multiline property and
casualty insurers. With operations in 54 countries, ACE provides
commercial and personal property and casualty insurance, personal
accident and supplemental health insurance, reinsurance and life
insurance to a diverse group of clients. ACE Limited, the parent
company of ACE Group, is listed on the New York Stock Exchange
(NYSE: ACE) and is a component of the S&P 500 index. Additional
information can be found at www.acegroup.com, or follow ACE on
Twitter, https://twitter.com/ACEGroupNA.
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ACE GroupCarla Ferrara,
215-640-4744carla.ferrara@acegroup.com
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