Contractor's insurance to cover flood damage

The damage sustained to the site of the new Flower Creek Dam, still under construction near Libby, should be covered under the contractor’s insurance policy, according to the project manager.

In a letter dated Dec. 11, project manager Ryan Jones of Morrison-Maierle Inc. informed Gary Wilson of Johnson-Wilson Constructors Inc. of the builder’s requirement to insure against damage to the site.

“As you are aware, the flood event on Dec. 9, 2015, caused significant damage to the right abutment on the Flower Creek Dam Improvements Project.,” Jones wrote. “Part 5.06.A of the Standard General Conditions of the contract requires the contractor to purchase property insurance upon the work at the site. Part 5.06.A.2 requires a Builder’s Risk ‘all risk’ policy that ‘shall include insurance for physical loss or damage to the work,’ including damage caused by flood.”

Although reported in other media outlets as a breach, City Administrator Jim Hammons said there was no structural damage to the dam itself, just the surrounding abutment.

“It wasn’t a breach,” Hammons said. “The high water came around a low point that wasn’t completed and scoured it downstream. There was no structural damage.”

The exact amount of damage done to the surrounding site is still being reviewed, but Jones asked the builder for a speedy resolution in order to move the project forward.

“It will be important to address this as promptly as possible to prevent further damage to the site,” Jones wrote.

Hammons said he was pleased with the apparent resolution of the situation.

“I think it’s a good thing,” he said. “The city can’t afford to put any more money or loans into this. Once the repair and cleanup is done we can get back to work and finish the project.”