National Insurance Carrier
A National Insurance Carrier was looking for a solution that would help them review and respond to an $18M Damages for Delay Claim submitted by a Large GC on a $350M Multi-use facility development project. The GC had alleged that the delays were caused by a poor Design. The insurance company needed a way to accurately determine which activities caused the delay, who was responsible, and what could be done to make things right.
ABOUT INSURANCE DELAY CLAIMS
To investigate a claim, loss adjusters will review the project schedule and seek to determine the causes of delay and the parties responsible.
Delay Start Up claims are convoluted, because insurers have to establish:
- That the project has in fact been delayed (by a damage event);
- The ﬁnancial impact of that delay;
- The extent to which the delay can be attributed to a physical damage event or events covered by the policy, and the extent to which it has been caused by other factors not covered by the policy.
THE SMART SOLUTION
After researching several options, SmartPM™ was selected to help with mediation. SmartPM™ was utilized to perform a separate analysis in tandem with and in addition to an analysis performed by a multi-national construction consultant. The SmartPM™ system was able to analyze 50% more schedules than the consulting ﬁrm, in addition to running several “what if” scenarios – all in a single day. Meanwhile, the consulting ﬁrm required more than two months to perform the same analysis.
THE SMART OUTCOME
According to the insurance company, the team was much more conﬁdent in the analytics provided by the SmartPM™ system than those provided by the consultant.