An OCIP can help businesses save money on insurance by lowering the cost of contractor bids.
This is because the company will require contractors to include.
The insurance coverage provided by the project management company in their bids.
The contractor is required to adhere to a bid deduct methodology in an OCIP, in which the costs of providing insurance coverage are subtracted from the contractor’s bid for the project.
The project management company will be able to save money if it can negotiate a lower OCIP provider premium.
The markup that contractors apply to their bids in relation to the contractor providing its own insurance coverage is reduced by bid deductions.
