Key phrases that are included in many construction contracts, such as “Additional Insured” and “Notification Requirements,” can be maddening if not fully understood.
The effectiveness of contractual risk transfer is more strained than ever. Upstream parties have attempted to toughen the insurance requirements in their construction contracts, utilizing terms that truly alter the intent of the requirement. And, which may, or may not, be insurable. Insurers are pushing back.
Under a settlement agreement reached on Jan. 20, the state of Florida will cease to oppose Progress Energy's plans to proceed with roughly $1 billion in repair work at its damaged Crystal River Nuclear Unit 3 in return for millions of dollars in refunds to customers and restrictions on funding for a proposed $20-billion nuclear plant.
