Staying Safe – Owner’s protective professional indemnity has become a valuable tool to help insulate CRE professionals from various exposures during development.
Without the proper coverage, even seemingly inconsequential design and construction management errors and mishaps can turn into financial disasters. Billed as one of the world’s most luxurious buildings and home to celebrities like legendary quarterback Joe Montana, Millennium Tower in San Francisco opened in 2009, with more than 400 multimillion-dollar units, soaring panoramic views, and world-class amenities. Despite the fanfare and extensive planning, however, the 58-story high-rise sunk, tilting more than 18 inches due to the alleged improper installation of the building’s pilings and the natural dewatering process that weakened the soil beneath the tower. A $100 million fix that included installing 52 new pilings into bedrock needed to be halted in 2021 when the building unexpectedly sunk another inch after work began. Read more.