Authority approves owner‑placed builders risk insurance and $18.9M CEI amendment for PR3

The Peace River Manasota Regional Water Supply Authority on Dec. 3 approved an owner‑placed master builders risk insurance program for the Surface Water System Expansion Project and authorized an amendment with HDR for construction engineering and inspection (CEI) services totaling $18,906,529.35.

Michelle Martin, senior vice president at Brown & Brown Insurance, described the master builders risk program design and estimated a savings of roughly 45% versus contractor‑placed insurance programs (about $2.8 million in savings across the grouped projects). She said the authority, as the named insured, would be able to centralize coverage, maintain continuity across multiple contractors and preserve FEMA public assistance eligibility under the Stafford Act in a declared emergency. "The authority is going to be the first named insured, and so we'll have control of the insurance program," Martin said.

Board members commended the proposed insurance strategy. The motion to bind builders risk coverage for the SWSEP not to exceed $3,865,817 passed unanimously.

Mike Knowles presented the CEI amendment with HDR, explaining the work order adds time‑and‑materials construction inspection staffing (up to five full‑time inspectors plus office support) and owner direct costs for testing and travel. The CEI amendment was moved and approved in the amount of $18,906,529.35. Knowles said the amendment funds inspection and project management through substantial completion (staff noted a targeted ribbon cutting in late 2028/November 2028 depending on package schedules).

Both actions clear near‑term administrative steps to support construction oversight and risk management for the PR3 reservoir and related projects.