Source: Berkley Design Professional, https://www.berkleydp.com/

A surveyor was retained by a general contractor to perform construction staking for a new multi-family residential development adjacent to a waterway. Negotiations had occurred with adjacent property owners to adjust the rear-yard setback of the new project to preserve open space views from the adjacent properties. The project’s site plans were updated by the civil engineer reflecting the agreed-upon modified setbacks. However, the policyholder utilized an earlier site plan with outdated setbacks and building location. Deep foundations were placed and the first-floor structure erected in incorrect locations. The views of adjacent property owners were compromised, requiring demolition and reconstruction of portions of the construction work. Berkley Design Professional paid $1 million on behalf of the policyholder and more than $100,000 in defense costs. The policyholder paid a $50,000 deductible.

Lessons learned:

When design issues of a project are fluid, make sure the most current plans are being used. Confirm in writing the version of the construction documents used for construction.