Design Error Causes Delays and Cost Overruns

A general contractor (GC) constructed a new 750-megawatt natural gas-fired power facility on a 47-acre site in New England. The GC’s responsibilities on the project included design (subcontracted), construction, and all equipment installation.  The design professional (DP)was contracted directly with the GC to provide the design services.  The DP’s design error primarily caused delays and cost overruns totaling approximately $9,000,000.   The DP was insured with a project professional liability policy for $4,500,000.  The GC triggered that policy, and the GC was responsible for the balance of the damages via their practice program.
This is a claim scenario developed from a single claim or several claims and has been developed for illustrative purposes only.

Find a Broker or Underwriter

Search by product, location or name
https://premium.insurancebusinessmag.com/us-iba-5-star-wholesale-brokers-and-mgas-2023-rt-specialty/p/1https://www.newsweek.com/rankings/most-loved-workplaces-america-2023https://www.insurancebusinessmag.com/us/best-insurance/best-insurance-companies-to-work-for-in-the-us--top-insurance-employers-2023-453773.aspx

Please Update Your Browser

Unfortunately Microsoft is no longer providing support or security fixes for your web browser. RT Specialty values the safety and security of its clients’ data, and as such this site requires the use of a modern web browser. To update your web browser, please see the links below. If you have any questions or would like additional information, please email info@rtspecialty.com or call (312) 784-6001.

Firefox Firefox Chrome Chrome IE Internet Explorer Edge Microsoft Edge