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<br />deductible amounts that are identified in the Supple-
<br />mentary Conditions. The risk of loss within such
<br />identified deductible amount will be borne by Contractor,
<br />Subcontractors, or others suffering any such loss, and if
<br />any of them wishes property insurance coverage within
<br />the limits of such amounts, each may purchase and
<br />maintain it at the purchaser's own expense.
<br />
<br />E. If Contractor requests in writing that other
<br />special insurance be included in the property insurance
<br />policies provided under Paragraph 5.06, Owner shall, if
<br />possible, include such insurance, and the cost thereof will
<br />be charged to Contractor by appropriate Change Order.
<br />Prior to commencement of the Work at the Site, Owner
<br />shall in writing advise Contractor whether or not such
<br />other insurance has been procured by Owner.
<br />
<br />5.07 Waiver of Rights
<br />
<br />A. Owner and Contractor intend that all policies
<br />purchased in accordance with Paragraph 5.06 will protect
<br />Owner, Contractor, Subcontractors, and Engineer, and all
<br />other individuals or entities identified in the Supple-
<br />mentary Conditions to be listed as insureds or additional
<br />insureds (and the officers, directors, partners, employees,
<br />agents, consultants and subcontractors of each and any of
<br />them) in such policies and will provide primary coverage
<br />for all losses and damages caused by the perils or causes
<br />of loss covered thereby. All such policies shall contain
<br />provisions to the effect that in the event of payment of
<br />any loss or damage the insurers will have no rights of
<br />recovery against any of the insureds or additional insureds
<br />thereunder. Owner and Contractor waive all rights against
<br />each other and their respective officers, directors,
<br />partners, employees, agents, consultants and
<br />subcontractors of each and any of them for all losses and
<br />damages caused by, arising out of or resulting from any of
<br />the perils or causes of loss covered by such policies and
<br />any other property insurance applicable to the Work; and,
<br />in addition, waive all such rights against Subcontractors,
<br />and Engineer, and all other individuals or entities
<br />identified in the Supplementary Conditions to be listed as
<br />insured or additional insured (and the officers, directors,
<br />partners, employees, agents, consultants and
<br />subcontractors of each and any of them) under such
<br />policies for losses and damages so caused. None of the
<br />above waivers shall extend to the rights that any party
<br />making such waiver may have to the proceeds of
<br />insurance held by Owner as trustee or otherwise payable
<br />under any policy so issued.
<br />
<br />B. Owner waives all rights against Contractor,
<br />Subcontractors, and Engineer, and the officers, directors,
<br />partners, employees, agents, consultants and
<br />subcontractors of each and any of them for:
<br />
<br />1. loss due to business interruption, loss of use,
<br />or other consequential loss extending beyond direct
<br />physical loss or damage to Owner's property or the Work
<br />caused by, arising out of, or resulting from fire or other
<br />perils whether or not insured by Owner; and
<br />
<br />2. loss or damage to the completed Project or
<br />part thereof caused by, arising out of, or resulting from
<br />fire or other insured peril or cause of loss covered by any
<br />property insurance maintained on the completed Project
<br />or part thereof by Owner during partial utilization
<br />pursuant to Paragraph 14.05, after Substantial Completion
<br />pursuant to Paragraph 14.04, or after fmal payment
<br />pursuant to Paragraph 14.07.
<br />
<br />C. Any insurance policy maintained by Owner
<br />covering any loss, damage or consequential loss referred
<br />to in Paragraph 5.07.B shall contain provisions to the
<br />effect that in the event of payment of any such loss,
<br />damage, or consequential loss, the insurers will have no
<br />rights of recovery against Contractor, Subcontractors, or
<br />Engineer, and the officers, directors, partners, employees,
<br />agents, consultants and subcontractors of each and any of
<br />them.
<br />
<br />5.08 Receipt and Application of Insurance Proceeds
<br />
<br />A. Any insured loss under the policies of
<br />insurance required by Paragraph 5.06 will be adjusted
<br />with Owner and made payable to Owner as fiduciary for
<br />the insureds, as their interests may appear, subject to the
<br />requirements of any applicable mortgage clause and of
<br />Paragraph 5.08.B. Owner shall deposit in a separate
<br />account any money so received and shall distribute it in
<br />accordance with such agreement as the parties in interest
<br />may reach. If no other special agreement is reached, the
<br />damaged Work shall be repaired or replaced, the moneys
<br />so received applied on account thereof, and the Work and
<br />the cost thereof covered by an appropriate Change Order.
<br />
<br />B. Owner as fiduciary shall have power to adjust
<br />and settle any loss with the insurers unless one of the
<br />parties in interest shall object in writing within 15 days
<br />after the occurrence of loss to Owner's exercise of this
<br />power. If such objection be made, Owner as fiduciary
<br />shall make settlement with the insurers in accordance with
<br />such agreement as the parties in interest may reach. If no
<br />such agreement among the parties in interest is reached,
<br />Owner as fiduciary shall adjust and settle the loss with the
<br />insurers and, if required in writing by any party in
<br />interest, Owner as fiduciary shall give bond for the proper
<br />performance of such duties.
<br />
<br />5.09 Acceptance of Bonds and Insurance; Option to
<br />Replace
<br />
<br />A. If either Owner or Contractor has any
<br />objection to the coverage afforded by or other provisions
<br />of the bonds or insurance required to be purchased and
<br />maintained by the other party in accordance with Article 5
<br />on the basis of non-conformance with the Contract
<br />
<br />EJCDC C-700 Standard General Conditions of the Construction Contract.
<br />Copyright <1:>2002 National Society of Professional Engineers for EJCDC. All rights reserved.
<br />00700 - 17
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