This is substantially in excess of what the contractor would put in his bid to purchase his own coverage. Should the FDOT decide to furnish and pay for all coverage you create an unfair situation where a contractor with a 1.25 modifier and a contractor with a .75 modifier are on a level playing field from the standpoint of insurance costs. This would not only be unfair but remove a tremendous safety incentive from the contractor. Insurance requirements have been standard on public works projects for years. There is no evidence to support any problems with contractors providing proper coverage.
OCIP implementation has no real effect on a contractor's safety processes.
Contractors in today's market must be very safety conscious. Aside from the moral obligation to provide a safe working environment the cost of insurance makes safety a bottom line issue for contractors. In a competitive environment such as we have here in Florida a contractor cannot afford to pay an added premium in the form of an experience modifier in excess of 1.0. Actually he needs to gain every possible advantage by keeping his modifier as low as possible. Contractors recognize that a safe workplace is a potential profit center.