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HomeMy WebLinkAbout02042010 BSC Agenda Item 4 STAFF REPORT Business of the Building and Standards Commission City of West University Place, Texas AGENDA OF: February 4, 2010 DOCKET NO.: 10-03 DATE SUBMITTED: January 26, 2010 DEPARTMENT OF ORGIN: Development Services PREPARED BY: John R. Brown, MCP, CFM Chief Building Official PRESENTER: John R. Brown SUBJECT: Discuss increasing the contractor's general liability insurance STAFF PRESENTER: amount per claim do the cost of John R. Brown, MCP, CFM construction in West University Place. Chief Building Official ATTACHMENTS: None STAFF SUMMARY Background: During the BSC meeting held in January the Board discussed the issue of General liability insurance as possibly being too low based on the average cost of construction for homes in the city of West University Place. Below is the average cost of construction for years 2009, 2008, 2007. These amounts do not include the value of the land. I contacted the following cities in our general area and obtained their general liability insurance requirements for comparison. Sugar Land: As a condition to the issuance of the permit, the Contractor shall submit proof that the contractor has: Workers' Compensation insurance as required by law; general liability insurance of at least $100,000 for any one accident and $300,000 for any one person; and property damage insurance of at least $50,000 for any one accident and $1,000 for any one piece of property. Springy Place: Minimum bodily injury of $100,000, $300,000 per occurrence, and a property damage limit of $400,000 or a property limit equal to or exceeding the amount of the contract amount, whichever is greater. Missouri City: Same as West University Bellaire Same as west University West University Place Sec. 18-3 Registration of contractors (c) Insurance coverage. Registrants are required to have and maintain public liability insurance with a combined single limit per occurrence no less than $300,000.00 (or with separate limits each no less than this amount), or higher limits if required by applicable state law. 1 (d) Insurance criteria. All insurance policies must meet all of the criteria regularly required for contractors on city construction jobs (city form C-101, or other standard form, as it may be amended from time to time), except: (1) The city need not be named as an additional insured; and (2) There need not be a waiver of subrogation. New home average valuation of construction: 2007 -113 new homes, total $58,768,246, average cost of $520,072.98 2008 - 68 new homes, total $42,340,689, average cost of $622,657.20 2009 - 21 new homes, total $12,679,590, average cost of $603.790.00 2