Construction defect claims involving widespread water intrusion can quickly escalate when the source and extent of the conditions are unclear. Determining what is actually occurring is always a first priority. To effectively distinguish between localized deficiencies and broader system failures requires a thorough construction defect investigation grounded in site-specific evidence.
YA Group was engaged by an excess insurance carrier to provide forensic and construction defect expertise in connection with a multimillion-dollar claim involving reported shower leaks and water intrusion throughout approximately 600 units of a high-rise apartment tower. Through destructive testing, site investigation and technical analysis, YA helped clarify the source of the water intrusion and develop a targeted repair protocol that substantially reduced the anticipated scope and cost of repairs.
Challenge Overview
The claim had initially been estimated at as much as $12 million, which extended into the excess policy limits, with opposing parties holding significantly different positions regarding the extent of the necessary repairs.
The plaintiff’s position maintained that the reported water intrusion warranted complete tear-out and replacement of the affected showers, with an estimated repair cost of approximately $20,000 per unit. On the other hand, the general contractor expert maintained that although water breached the waterproofing, there was no resultant damage to support the proposed repair scope. The building and associated units were brand new, and the leaks had been discovered immediately upon occupancy. Therefore, damage to the underlying structure simply had not had time to occur.
With approximately 600 units potentially affected and negotiations at a halt, the client needed an independent construction defect investigation to determine the extent of the conditions, identify the source of the water intrusion, and establish an appropriate repair strategy based on physical evidence.
YA Group’s Area of Impact
YA Group’s construction defect experts conducted destructive testing and identified evidence of water on the plywood subfloor, confirming the breach in the waterproofing. However, the investigation also demonstrated that the underlying issue was substantially narrower than initially alleged.
Through detailed site inspection and construction defect analysis, YA determined that the source of the water intrusion was poorly installed shower doors rather than failure of the complete shower systems.
These findings enabled YA’s experts to develop a targeted repair protocol focused on repairing the shower doors anchorage rather than removing and replacing the entirety of hundreds of complete showers. The repairs were ultimately performed for less than 20% of the originally anticipated repair costs, significantly reducing the insurance carrier’s potential loss while appropriately addressing the conditions identified during the investigation.
By establishing the true source and extent of the water intrusion, YA Group provided the technical clarity necessary to support resolution of the dispute and avoid an unnecessarily extensive repair program.
