Airport terminal building

Case Study – Contractors’ All Risk Claim

Midfield Terminal Building, Indianapolis International Airport

The $1 billion Midfield Terminal Building at Indianapolis International Airport, aimed to create a transport hub for the city. During the construction, a steel roof structure partially collapsed. The roof was being held by two shoring towers. Incorrect lifting and jacking operations by the steel erection sub-contractor were the cause of the collapse.

The collapse caused over $100 million of damage and associated loss and expense and delay costs. In addition, the incident necessitated in an immediate cessation of the entire work for several weeks. This led to the main contractor making an insurance claim.

We supported the insurance principle to appraise the extent of the delay and damage. This continued for the entirety of the required investigation and reinstatement of the damaged works.

As part of that work, we provided an experienced site team of surveyors, estimators, engineers, and planners. The team appraises the extent of the damage and tracked the project through the repair work. This involved completing a cost reconciliation of the contractor’s submissions.
Additionally, our team carried out a delay analysis across the whole project.

From there, we provided an assessment of the related delay costs from contractors and sub-contractors. We were also liaising with engineers on proposals for rectifications and agreeing on the final account relating to the insured peril/loss.

This project was particularly challenging. As can often happen in high-pressure environments, communication with the contractor broke down. The contractor was unwilling to take a productive role in the repairs. This meant extensive and time-consuming interactions. Ultimately, we ensured our client was protected from excessive and unrelated cost claims and delay damages.

Are you are looking for support on the management and assessment of claims? Download our insurance capability statement, or get in touch to find out how we can help you.

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