Design Error Causes Delays and Cost Overruns

A general contractor (GC) constructed a new 750-megawatt natural gas-fired power facility on a 47-acre site in New England. The GC’s responsibilities on the project included design (subcontracted), construction, and all equipment installation.  The design professional (DP)was contracted directly with the GC to provide the design services.  The DP’s design error primarily caused delays and cost overruns totaling approximately $9,000,000.   The DP was insured with a project professional liability policy for $4,500,000.  The GC triggered that policy, and the GC was responsible for the balance of the damages via their practice program.

This is a claim scenario developed from a single claim or several claims and has been developed for illustrative purposes only.

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