RT ECP: Claims - Contr Prof Liability

December 27, 2010

A Lapse in Judgment—and Insurance

A contractor subcontracted the design of a ventilation system to a mechanical engineer. The engineer miscalculated the cooling needs of the building and specified an inadequate ventilation system. Because of the system’s poor performance, the building owner demanded $180,000 to replace it. At the time of the claim, the mechanical engineer had let his Errors […]

December 27, 2010

Architect's Design Defect Delays School Project & Leads to Lawsuit

A contractor retained an architect for a school project who provided a certificate of insurance showing a $3 million limit of liability. During construction, a design defect was discovered that delayed the project for several months. The school district was forced to rent portable classrooms and filed for substantial damages against the contractor. Although the […]

December 23, 2010

Water Infiltration on Condo Project

A construction manager was hired to construct a condominium project.  Water infiltration occurred around the windows that was caused by defective construction including the improper installation of flashing.  Accusations were made for negligent construction management.  Five million dollars in damages were sought. This is a claim scenario developed from a single claim or several claims […]

December 23, 2010

Asbestos Level Underestimated

A claim for an at-risk construction management firm arose during extensive renovation and abatement at a school.  The construction manager hired a firm to estimate the levels of asbestos in school.  The claimant alleged that the level of asbestos was grossly underestimated resulting in an additional $13 million during construction to abate asbestos.  This is […]

December 23, 2010

Construction Manager Sued Over Negligence

A construction firm performed At-Risk Construction Management services to widen a 100 mile two-lane highway. The insured subcontracted the construction management and engineering services.  The claimant alleged pavement heaves, inadequately compacted fill holes, settlement, sink holes, and depression on the bridge decks.  The claimant sought costs for necessary repairs or replacement of the work directly […]

December 23, 2010

Claims Settled in Delay and Disruption Damages Case

The design/build contractor on an expansion of a convention center subcontracted the design and construction work and served as the construction manager on the project. There was a six month delay in structural steel erection and inspection, impacting several subcontractors’ sequences which required schedule changes. Four of the subcontractors issued claims for delay and disruption […]

December 23, 2010

Design Negligence Leads to Costly Settlement for Desalination Plant

An $8 mm settlement was reached on a claim involving the design, engineering and testing of the reverse osmosis and pre-treatment systems for a desalination plant. Several claims were filed involving the failure of the dual sand filtration system and improper feasibility assessments. Claimant asserted negligence in design, architectural and engineering services, including the design […]

December 23, 2010

Negligence and Design Error Leads to Costly Settlement

A claim alleging negligence and design error was issued against a design/build contractor, resulting in a $4.5 million settlement not including high defense costs.  Elevated levels of mold were discovered in the HVAC system at a convention center and hotel.  The owner demanded remediation and repair to all the HVAC units throughout the hotel to prevent […]

December 23, 2010

Claim Settled Against Printing Plant

 A claim was settled against a design/build firm for $24 million alleging various defects and deficiencies in a newly constructed printing plant.  Initial allegations of damage were $300 million.  Problems arose with the concrete, fire protection, electrical, and HVAC systems.  The client continues to incur costs to repair the defects.  The design/build contractor sought recovery of […]

December 23, 2010

OSHA Cites 4 Companies in Parking Garage Collapse

Source:  New York Times Online, April 30, 2004 By:  Eric Lipton Intentional disregard or plain indifference by one of the main subcontractors at the Tropicana Casino and Resort expansion project, as well as serious violations by three other companies, caused the death of four workers and the injury of 20 others when the garage they […]

December 23, 2010

Companies Fined in Bridge Collapse

Read here about OSHA’s decision to fine four companies in a deadly bridge collapse.

December 7, 2010

Report Points to Connections In Fatal Garage-Panel Event

Source: ENR By Mike Larson Officials in Milwaukee County, Wis., plan to let bids in the next two weeks for the repair of a municipal parking structure at O’Donnell Park, where a 27,000-lb precast-concrete facade panel fell off the building and killed a 15-year-old boy and injured two other people last June. The county’s 2011 […]


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