Con­trac­tors third party li­a­bil­ity cover

RISKSA Magazine - - News -

took the lives of four work­ers. The cause of the fail­ure was in­ves­ti­gated and found to be at­trib­ut­able to the sys­tem used to con­struct the wind­shield and flues. The con­struc­tion process, known as ‘slid­ing shut­ter­ing’, was achieved by the pour­ing of con­crete into shut­ter­ing which is moved in an up­ward mo­tion dur­ing the process. What was not ap­pre­ci­ated was that the lift­ing ef­fect of the shut­ter­ing was caus­ing voids (hon­ey­comb­ing) in the con­crete. These were not vis­i­ble as the outer skin had the ap­pear­ance of per­fectly formed con­crete. This skin had cam­ou­flaged the se­ri­ous de­fects in the wall. In­sur­ers ac­cepted the claim and op­tions were con­sid­ered to save the chim­ney. One of these was to con­struct outer shells on the flues and the wind­shield. This op­tion was fi­nally scrapped and the in­sur­ers brought in an ex­pert to de­mol­ish the chim­ney. This was to be done by way of blast­ing a spe­cific area of the lower sec­tion of the struc­ture. The in­ten­tion was that the chim­ney would fall in a pre­de­ter­mined di­rec­tion. A berm was even dug to con­tain the de­bris ex­pected to re­sult from the chim­ney crash­ing down onto the ground. When the ex­plo­sives were det­o­nated, to the sur­prise of all in­volved, the chim­ney did not fall on its side. It merely crum­bled down­wards, as an im­ploded build­ing does, but was re­built at the in­surer's cost Dur­ing the 1970s, IS­COR con­tracted with var­i­ous con­trac­tors to build a rail­way line from Sishen iron ore mine to Sal­danha Bay and a break­wa­ter in Sal­danha Bay. The pur­pose of this ven­ture was for the iron ore, mined at Sishen (in­land), to be ex­ported, via bulk ore­car­ry­ing ships, out of Sal­danha har­bour. On the CAR side, many claims were made for dam­age to free is­sue ma­te­ri­als. How­ever, from a li­a­bil­ity per­spec­tive, the in­ter­est­ing claim was that of dam­age to a lo­cal ho­tel and the naval base, caused by wave ac­tion. In or­der to pro­tect the Sal­danha har­bour from ag­gres­sive wave ac­tion, it was nec­es­sary to build an ar­ti­fi­cial break­wa­ter. This break­wa­ter took the form of an 1 800 me­tre long sand dam stretch­ing from Mar­cus Is­land to Hoed­jes Point. The break­wa­ter was con­structed of sand, dredged from the bot­tom of the bay and re­lo­cated be­tween the two points men­tioned above. Dur­ing the course of the con­tract the con­sor­tium con­tracted to build the break­wa­ter ceased work as a re­sult of a dis­pute with the prin­ci­pal. This stop­page re­sulted in the sand at the end of the in­com­plete break­wa­ter form­ing, what an ex­pert de­scribed as a ‘pan­nekoek’. This is a bul­bous for­ma­tion. The re­sult of this ‘pan­nekoek’ was that the wave ac­tion of the At­lantic Ocean was de­flected from the nat­u­ral path, and caused dam­age to the lo­cal ho­tel and the naval base. Both of these claims were en­ter­tained by the li­a­bil­ity in­sur­ers and set­tled. De­spite the fact that some poli­cies have a ces­sa­tion of work ex­clu­sion, this pol­icy did not. The im­por­tance of this clause is il­lus­trated above. It is there­fore crit­i­cal that bro­kers and in­sureds alike are aware of any such ces­sa­tion of work ex­clu­sion, given the re­sult­ing ad­di­tional ex­po­sure to the in­sured.

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