CG 25 03: Designated Construction Project(s) General Aggregate Limit

What a per project aggregate does

A standard CGL policy has a general aggregate, the most the carrier will pay in a policy period for all covered damages other than products-completed operations, plus a separate products-completed operations aggregate. A subcontractor running forty jobs a year shares that one general aggregate across all of them. CG 25 03 changes the arithmetic: each construction project designated in its schedule gets its own Designated Construction Project General Aggregate Limit, equal to the general aggregate shown in the Declarations.

Payments for damages under Coverage A, and medical expenses under Coverage C, that are attributable only to ongoing operations at a single designated project reduce that project's aggregate and nothing else. Payments that cannot be attributed only to ongoing operations at a single designated project reduce the policy's general aggregate. The each occurrence, damage to premises rented and medical expense limits still apply, within the project aggregate.

CG 25 03 does not touch products-completed operations. Completed operations losses still reduce the single products-completed operations aggregate for the whole policy, which is why contracts that require CG 25 03 should also set a minimum completed operations aggregate.

How CG 25 03 changes the value of a tender

A tender is only worth the limit left when it is accepted. Picture Keystone Mechanical LLC with $1,000,000 each occurrence and a $2,000,000 general aggregate, working on six projects. A scaffold collapse on another general contractor's job settles for $1,500,000 in March. When your laborer injury claim is tendered in September, $500,000 of aggregate remains for every other job Keystone has, including yours.

With CG 25 03 designating your project, the March loss reduces only the other project's aggregate. Your project still has its full $2,000,000 aggregate, subject to the $1,000,000 each occurrence limit. The difference is not visible on the certificate unless the packet includes the endorsement, which is why a per project requirement must be verified on the endorsement page and not only on the ACORD 25 aggregate checkbox.

CG 25 03 edition comparison: 03 97 and 05 09

The 03 97 edition set the structure most contracts still describe: a separate aggregate for each designated construction project, with Coverage A and Coverage C payments for that project reducing only its own aggregate. It also provides that a project remains the same project when the contracting parties deviate from plans, blueprints, designs, specifications or timetables. Some 03 97 schedules applied the form to every project for which the insured agreed in a written contract to provide a separate aggregate.

The 05 09 edition is the one carriers issue today. It states the allocation in two parts, payments attributable only to ongoing operations at a single designated project and payments that are not, and its aggregate expressly excludes damages included in the products-completed operations hazard. The schedule can list projects individually or describe them, for example every construction project for which a written contract requires a separate aggregate.

When to require CG 25 03

A per project aggregate costs the subcontractor premium, so require it where it changes the outcome: projects with high injury severity, owner contracts that flow the requirement down, subcontractors with many concurrent jobs, and any job where the subcontractor's primary limit is the main recovery source because its umbrella is thin. For vendors working at fixed premises, a per location aggregate under CG 25 04 is the closer fit.

• CG 25 03 (05 09) or equivalent, designating the project by name and address, or by a written contract description.
• ACORD 25 marked to show the general aggregate applies per project, matched against the endorsement.
• A separate minimum products-completed operations aggregate, since CG 25 03 does not affect it.
• Umbrella or excess limits above the primary each occurrence limit; a project aggregate does not raise the occurrence limit.

How Pikorua Security verifies per project aggregates

Pikorua Security reads the aggregate checkbox on the ACORD 25 and the CG 25 03 schedule together. Rule AG-01 passes only when the endorsement is present and either names your project or uses a written contract description your subcontract satisfies. A per project box checked with no endorsement, or an endorsement designating a different project number, is flagged with the exact mismatch.

Because the form matters most when subcontractors run many jobs at once, Pikorua Security also shows your risk team which vendors carry a single shared aggregate across your portfolio, so you can decide where a per project requirement is worth raising with the subcontractor's broker.