Source: https://www.siriusgroup.com

A GC under a design-build contract hired an HVAC subcontractor to design and install an HVAC system for a residential apartment project. Once completed and occupied, the apartment units began developing mold and residents subsequently began complaining of respiratory problems, headaches and other physical ailments. An error in the HVAC design plans caused significant condensation in the system resulting in mold generation. The GC’s legal costs, costs to remediate the mold contamination, costs to pay bodily injury claims and rectify the problem caused by the design error was over $1,000,000. Neither the GC nor the subcontractor carried professional liability coverage. The subcontractor declared bankruptcy, leaving the GC to pay all of the associated damages.

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