D/B Contractor Incurs Costs Resulting From Design Flaws

A design/build contractor incurred in excess of $6,000,000 in additional costs due to significant structural design flaws on the part of the structural engineer at a mixed-use retail and condominium project parking structure. After the design/build contractor and structural engineer could not reconcile, the design/build claim was filed action against the engineer, who, in turn, notified their pollution liability carrier of a potential third-party claim. The engineer’s pollution liability carrier settled with the design/build contractor for $1,500,000 while the design/build contractor’s CPPI carrier paid $2,000,000 (policy limit) as an indemnity payment under their protective coverage. No liability claim was ever filed by the owner.

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