Office of Risk Management

Facilities Management Building
411 Pioneer Drive
Rochester , MI 48309-4482
(location map)
(248) 370-4929
Fax: (248) 370-2601

Construction/Renovation Guidelines

Construction/Renovation Insurance Guidelines

New Construction

  • New construction projects require insurance limits listed in "Exhibit B" on the Risk Management website
  • Construction Manager will secure the Builder's Risk insurance
  • RFP (Request for Proposal) will include the Construction Contract Checklist (see below) and will be signed by Purchasing Director, AVP Facilities Management, and Risk Management 

Building Renovations

  • Building renovation projects require insurance limits listed in "Exhibit B" on the Risk Management website
  • Construction Manager will secure Builder's Risk insurance

Deviation from the current insurance requirements (without Risk Management approval) is a violation of Oakland University Administrative Policies & Procedures #1050 Risk Management Insurance Polices & Procedures.

Construction Contract Checklist
  • RFP Insurance requirements approved by Risk Management. If suggested limits are considered excessive, a VP will be required to sign off and agree to the lower limits.
  • Is Builder's Risk Insurance required? If yes:
    • Who will be responsible to obtain the builders risk coverage?
    • Is additional insured required?
    • Amount of deductible.
    • Is Waiver of Subrogation included in the final contract language?
    • If applicable, does Construction Manager's Builder's Risk Coverage include delay in startup coverage?
  • Were valid insurance certificates provided with the RFP response?
  • Are there any changes or deviations from the insurance required in the initial RFP? If so, approval is required by Facilities, Risk Management and/or Project Manager, Unit/Division VP.
  • Have the Surety Bonds been approved by Risk Management?
  • What type of contract is being used?
    • AIA
    • Other
  • Will Construction Manager/General Contractor secure the Builder's Risk Policy?
    • Did the CM provide a detailed cost/coverage summary?
    • What is the deductible amount?
    • Did the CM provide a copy of the policy?
    • Is there coordination of benefits clause in the policy?
    • Are Sub-Contractors covered under the policy?

For a PDF version of this checklist, and to acquire the official approvals, please contact Risk Management at

Construction/Renovation Procedures and Project Plan Review

Project Coordination and Plan Review with FM Global (Property Insurance Carrier)

What threshold should be used to determine which projects are reviewed by FM Global?

Submission will be based on a review of each projects scope, use and budget. Initial review and determination will be by Department Directors with AVP FM concurrence.

All capital outlay projects, new construction, and all projects that impact or are impacted by existing building suppression systems, alarm systems, security access, or flood prone areas within existing buildings shall be submitted to FM Global for review.

Who will make actual submission to FM Global?

The Risk Management Analyst will make the submission to FM Global.

Initial submission of plans should be 30-60% complete. Final submission should be 100% complete.

Department Directors will email PDF documents to the Risk Management Analyst.

Risk Management Analyst will submit plans via email to

How will comments be addressed, and who will make the determination of what items should be incorporated?

FM Global has a 10 business day turn around for review.

Once comments are received and forwarded to Directors, they will review comments and prepare an impact summary that will estimate any impacts the recommendations have on budget, schedule, or scope.

This summary will be reviewed by AVP and Risk Management and a determination will be made on how (or if) the recommendations will be incorporated.

Does the project get re-reviewed after comments are incorporated?

Yes, plans should be re-sent to FM Global for review after comments are addressed.

What are the implications to OU if we choose not to incorporate comments and an event happens relating to one of the suggestions (Fire suppression, etc.)?

OU would potentially receive a lower overall risk rating, which may affect premiums and or deductibles.

Need to incorporate specification language that indicates all materials and assemblies to be FMG approved. What are the cost implications of this?

OU consultants need to include specific language in the technical spec pertaining to FM Global approved materials.

OU Facilities Management will include a "Risk Management Compliance Factor” calculated as a % of construction cost in all budget estimates prepared.

How does FMG validate whether OU follows through on incorporating comments?

FM Global assesses compliance at regular intervals through campus visits.