INTEGRATED PROJECT DELIVERY (IPD) contract forms, the multi-party contract seeks to limit or mitigate the impact of the indemnifications through, for example: = Waivers of claims among the parties to the multi-party contract (with certain exceptions that vary from form to form) while leaving in place third-party claims ®™ Safe harbors under which the parties waive claims for decisions made collectively by the IPD project team ® Limits of liability pegged to the amount of required insurance = No-questions-asked access to a project contingency for liabilities that might otherwise fall within the indemnification (for claims arising due to simple negligence, for example) To the extent a multi-party contract waives outright, or even limits, the parties’ liabilities to one another and mitigates their liability for third-party claims through jointly managed contingencies and project-specific insurance, these contracts can be viewed as moving toward a “no blame” environment in which parties are encouraged and incentivized to act in the best interest of the project rather than strictly in their own best interest. Insurance Traditional liability insurance is based on holding the party at fault financially accountable. An IPD project dramatically alters this approach by defining shared risk for various project issues. The tension between the traditional fault-based system and the different philosophy represented by IPD has yet to be fully resolved. Generally, although the lines between the parties’ traditional responsibilities become blurred in a multi-party IPD delivery method, most parties are, for the time being, continuing to carry the same insurance coverage they carry under the other delivery methods, with some adjustment to the policies in recognition of the unique IPD model. Just like the CM at-risk, who is providing preconstruction Design-Assist services, a contractor participating in the design phases of an IPD project is taking on potential third-party design liability. Insurance products already exist for contractor design liability insurance, and in the absence of project-wide coverage protecting all of the parties from this liability, the IPD contractor would be well advised to obtain it. It is increasingly common on IPD projects to use an Owner Controlled Insurance Program (OCIP) as a form of project-wide liability coverage; however, professional liability for the designer must still be obtained as an add-on. Builder’s risk claims are typically waived among the IPD parties, as is also true in the other delivery models. Unless the subcontractor itself is a party to the multi-party contract, it is also common for the contractor in an IPD project to carry subcontractor default insurance because it is the contractor who enters into the direct contracts with the subcontractors. 243