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.

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.

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.

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.