ConsensusDOCS has published guidance addressing the new critical insurance issue that impacts construction contracts. The Association of Cooperative Operations Research and Development (ACORD), the licensing company for insurance forms, has amended their certificate of insurance form requirements. Construction contracts typically require at least 30-days advance notice of insurance cancelation. The change in the certificate of insurance form no longer purports to give 30-days advance notice of policy cancelation and altering the form may run afoul of state law.

ConsensusDOCS has provided model contractual guidance language in the ConsensusDOCS Guidebook at www.consensusdocs.org/guidebook. The Guidebook reflects what is commercially available in today’s construction insurance market, while ensuring owners receive timely and independent notice. The ConsensusDOCS guidance seeks efficiencies by allowing electronic notice, as well as designation of the party in the best position to give appropriate notice (e.g., insurance company or broker). In addition to the insurance company or broker, a party must now also provide prompt insurance cancelation notice to the certificate holder, as that individual may be in the best position to do so.

The ACORD form change impacts all standard contracts, including the ConsensusDOCS 200 and the American Institute of Architects AIA A201, and most manuscripted contracts that require a 30-day advanced notice of cancelation. The ConsensusDOCS notice of cancelation solution references where such language should be inserted into ConsensusDOCS contracts (ConsensusDOCS 200, section 10.2.4). However, the ConsensusDOCS proposed solution applies equally to other contracts that are now out-of-date due to the ACORD change.

ConsensusDOCS was able to draw upon its unique coalition of designers, owners, contractors, subcontractors and sureties to quickly form an expert working group to this national issue and develop a best practice and fair solution vetted by its construction organizations.

For more information about how ConsensusDOCS has addressed the ACORD changes, listen to the audio recording and review the PowerPoint from the ConsensusDOCS webinar held in October 2011 which is available for free at http://consensusdocs.org/video/WB104.php.

To Purchase ConsensusDOCS Documents at NASBP Discount

The NASBP membership can receive up to 20% off their purchases of ConsensusDOCS forms if they insert the Partner Code, NASBP, and the Promotion Code, 400, when prompted during the purchase process from the ConsensusDOCS site.

For more information about ConsensusDOCS and NASBP’s participation as an endorsing member, click here.

Information about Standard Form Documents and Their Use

Valuable information about the use of ConsensusDOCS documents and other industry standard form documents are available to read and download from the ConsensusDOCS web site. Visit the ConsensusDOCS web site to access these.

NASBP is an endorsing organization of the ConsensusDOCS coalition, an unprecedented effort by 35 industry organizations to identify industry best practices and to incorporate such practices in a new generation of consensus industry standard form documents.