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Fatal Design Flaws

We admit: we’ve been more than slack with this risk management blog. Forgive us. We could make excuses, but that would just take up valuable space and time. Instead, let’s focus on 2008.
Big Dig
By now you’ve heard about concrete ceiling panels falling from one of the tunnels in Boston’s Big Dig project. The collapse (in July 2006) killed a 39-year old woman. The entire project also suffered from leaks, other design flaws, and significant cost overruns. An investigation by the National Transportation Safety Board determined that the wrong type of epoxy was used to hold the concrete ceiling panels in place.
On January 23, an announcement was made that a $450 million settlement had been reached in the state’s lawsuit. The consortium that oversaw design and construction for the project will contribute $407 million, and several smaller companies will contribute the remaining $51 million. The settlement also allows the consortium to avoid any criminal charges relating to the woman’s death.
This settlement does not affect a separate lawsuit filed by the victim’s family. The company that supplied the epoxy has reached a settlement of $6 million with the victim’s family. However that same company was indicted on an involuntary manslaughter charge.
Minnesota Bridge Collapse
In August of 2007, an interstate bridge in Minneapolis collapsed, killing 13 and injuring roughly 100 people. On January 15, a study by federal investigators revealed what they think was the design flaw that ultimately led to the bridge’s collapse. Investigators believe that the bridge’s gusset plates, which tie steel beams together, failed. As a result of the collapse, Transportation Secretary Mary Peters will urge states to check gusset plates whenever modifications are made to a bridge. When load-bearing calculations are made, they are generally done for the entire bridge, not individual components. The hope is that this incident will lead to more stringent calculations.
Claims Studies
At the risk of sounding a bit over-promotional, we have two claims studies that insured firms may find of value. Check out our bridge/highway and mass transit claims studies. These resources are password-protected for Schinnerer and CNA policyholders only. You can determine your firm's access code (ISN) here.

Mixed Greens

Construction, Legislation, and Technology

There are a lot of idiosyncratic (to say the least) things about Antilia, a 490-foot-tall, 24 story facility now under construction in India for both corporate meeting space and a private residence. The building, commissioned by multi-billionaire tycoon Mukesh Ambani, is designed according to the traditional Indian concept of Vaastu Shastra, which orients structures to remain in harmony with energy flows.  Besides that, and the “vertical gardens” that weave around the building and indicate separation for the different sections of the building, there is also a general air of opulence that surrounds its construction. The building is estimated to cost around $1 billion, and features a movie theatre, parking for 168 cars, living quarters that span four floors, and three helipads.

The architects plan to seek certification under the Leadership in Energy and Environmental Design (LEED) Green Building Rating System standards. which is administered by the U.S. Green Building Council (USGBC), . The piece the growth of green design renders the loopholes in LEED more serious than ever. The point system creates perverse incentives to design around the checklist rather than to build the greenest building possible.” And the process of LEED certification can cost up to $100,000, which, though barely anything on a project like Antilia, is a significant price tag for small firms and nonprofit clients.

Brook writes later, “Lately, even the USGBC seems to realize the solution lies not in giving out medals for greenness one building at a time, but in encouraging greener communities.” Signals that progress in the U.S. might be on the way come from California and Seattle, where environmental initiatives for sustainability and energy independence are receiving close consideration. In Seattle, a proposal by the chairman of Seattle City Council's Urban Development and Planning Committee would require developers of large buildings and roads to identify and reduce greenhouse gas emissions on projects involving highways, skyscrapers, or parking lots of more than 20 spaces. Meanwhile, the San Francisco Chronicle reports that the California Energy Commission unanimously adopted a plan that would make all homes independent from the electrical grid by 2020.

Those communities might achieve a part of those goals with help from a technology developed by a Dutch company that heats and cools buildings from solar energy collected from asphalt. What began as a road maintenance project for the civil engineering firm Ooms Averhorn Holding BV morphed into a system of flexible plastic pipes under a road that runs hot and cold water to nearby buildings, heating in winter and cooling in the summer. So maybe Vaastu does have a chance to harmonize energy in Antilia; even if that energy started out metaphysical, it may just turn green.