Construction Defects: Self-Storage with Lots of Leaks
The Problem
This project is a 3-building commercial development built by a General Contractor for the Original Owner for approximately $10 million. Buildings A and B are retail buildings totaling 6,500 square feet (SF) and C is a self-storage facility that includes a 33,445 SF below grade basement and three above ground levels totaling 129,000 SF. The property was foreclosed upon and sold to the Current Owner. The Current Owner made a claim for construction defects and damage. The total repair estimate was $1.4 million that included $600,000 in past repairs, and the settlement demand was $4 million. There were almost 50 discrete allegations. Some of the allegations we eventually categorized as call-back and maintenance issues like gate operation problems and doors requiring adjustment. Other problems included poor workmanship at the roof and exterior building walls; ADA compliance problems; landscape, site concrete and drainage defects; etc. Most of the cost to repair was related to groundwater intrusion, past the below-grade waterproofing, causing significant damage and rendering the basement unusable.
The Solution
We were hired by the General Contractor's Attorney to lead a team of Specialty Experts to investigate and evaluate the claims by the Owner's Attorney and Experts. We gathered, organized, and summarized a large volume of project information; interviewed key people; inspected the property; analyzed the allegations issue-by-issue; fixed sloppy work from the Owner's Attorney and Expert; figured out what trade contractors performed what work onsite; allocated responsibility for those defects and resulting damage that was legitimate; analyzed testimony; compiled and presented the evidence of our analysis to convince the Owners to accept a more reasonable settlement, and convince the trade contractors to accept responsibility for their part in the failures. The hardest part was translating the technical speak of building design, engineering, estimating, contracting, construction, and investigations, into plain-English and graphic-intensive work product that everyone could understand and use to make smart decisions; especially the attorneys and insurance professionals.
The Work
Preliminary Evaluation of the Claims: including fixing significant math errors by the Owner's experts and attorneys
Document Analysis
Onsite Investigation
Players List with Scope of Work Summary
Detailed Analysis of Owner's Cost of Repair and $4 Million Claim Total
"Issues by Players: Buildings" This is a document summarizing the opinions of many experts, for each issue, and each litigation defendant. It was required due to the complexity of the issues, number of players, and the number of expert witness commentators.
Allocation of Responsibility: Ultimately four versions with varying assumptions.
Basement Level Defects Exhibit: Photographs and drawing details with PFCS comments
"Allocation Packages" to 16 individual trade contractors and designers: These included a summary of their scope and locations of work, key contract and project file documents from the time of construction, individual allocation of responsibility spreadsheets, and all applicable work product (listed above), so that the trade contractors, their lawyers, and their insurance companies could make informed decisions about the level of liability and settlement value.
Allocation Analysis for Mediation
Deposition Testimony Analysis
Aid in Settlement Negotiations