Defective design

A marine engineering consultancy designed a seawater storage tank for a newly built power plant. They were instructed by a major European engineering contractor. After its construction, cracks began to appear in the structure thereby shortening its anticipated lifespan significantly. The contractor chose to demolish the water storage tank and rebuild it. They then brought a claim against their subcontracted consultant for EUR 2 million. Expert views on the effectiveness of the initial design were exchanged. With both parties still willing to avoid litigation if at all possible, an ITIC supported settlement of EUR 280,000 was agreed.

This claim illustrates how ITIC will try to resolve genuine liability claims without recourse to litigation. The appropriate use of experts can bring the matter to a conclusion without the hostility generated by litigation and associated costs.