Bulkhead Failure during Construction—A Builder’s Risk Dispute

A bulkhead failed during construction of a riverfront redevelopment project in a southeast port city. Errors and omissions in the design and detailing of the bulkhead were discovered and determined to be the root cause of the failure. A pragmatic repair approach was developed by the engineer-of-record for the project, which included bulkhead stabilization measures, load reduction, and replacement of failed bulkhead components. The loss was covered by builder’s risk insurance, which included a policy endorsement covering all damages except “costs incurred to improve the original materials, workmanship, design, plan, or specification.” A dispute arose related to whether the repairs constituted improvements that were excluded or whether the actions were appropriate and necessary steps to repair or facilitate the repair of the bulkhead system and covered by the builder’s risk policy. This paper will explore the role of the forensic engineer as not only an investigator of root cause, but also as a technical resource who, together with legal and insurance advisors, can assist a client with many complex aspects of recovering from a failure event. Features of the bulkhead design that resulted in the failure will be described and aspects of the emergency response and subsequent repair approach will be analyzed in the context of the builder’s risk policy exclusion.