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Claims Scenarios

Here are a few examples to illustrate SPPI response:

Redevelopment of rail system

Our Architectural and Engineering clients were responsible for the design of the trains and received a claim from the project owner for defective designed rail cars. The design was shown to have been inadequate and permitted water intrusion into the rail car shell with resulting damage to interior components. The claim related to the rectification of multiple rail cars and the SPPI policy paid almost $10 million in repair costs.

Timeshare vacation units

Mould infiltration was discovered in some of the units shortly after they opened. This happened during the rainy season, specifically after a hurricane. The units developed an odour and as a result the walls needed to be replaced at a cost of over $17million. It was established that the design and specification used for the units were different to those usually used in this particular location.  The SPPI policy provided coverage for all of the consultants and sub consultants for their roles in the design and construction of the project.

Road bearing viaduct

A claim in excess of $75 million arose when design services relating to remedial works to a road bearing viaduct across a river were incorrect. The roller bearings which were inherent in the design as part of the bridges expansion and contraction had cracked. Subsequent investigations showed that design calculations were incorrect, feeding insufficient tolerance levels. The client’s SPPI policy covered the remedial works including the replacement of the bearings with an alternative system, as well as the traffic management costs.

Tunnelling under waterways

Two tunnels underneath a waterway were designed and constructed for motorised traffic use. Problems with the design of the concrete tunnel lining elements caused too high stress levels which in turn had an adverse bearing on the joint seal between the elements. Many of the elements were replaced and the construction delays and the re-design costs sought were nearly $10 million, all of which were covered by their SPPI policy.