A contractor was carrying out the conversion of a 100-year-old shop and flats into a doctor’s surgery. The works involved removal of the existing roof from both buildings, demolition of internal walls and floors and construction of a new wall. There was also some underpinning. The first sign of damage was cracking in the bathroom of a neighbouring property sharing a party wall.
An engineer’s inspection concluded that vibration / foundation adjustment from the underpinning work was responsible for the cracking. Generally the re-adjustment of foundations after underpinning does not result in significant cracking to buildings. However, the conclusion was that damage occurred as a result of the underpinning and vibration by the works.
The claim was settled for £275,000
The premium paid to RSA for JCT 21.2.1 cover was £3,500