Project Details

  • Arquitectonica
    Miami, FL
    $179 million

    This project involved the construction of a state-of-the-art, multi-use sporting arena conforming to NBA, International Hockey League and American Hockey League standards. The 680,000 square foot arena was constructed in downtown Miami.

    At the conclusion of the project, the owner, Basketball Properties Limited (BPL), alleged that errors and omissions in the design by Arquitectonica caused more than $22 million in increased construction and impact costs. BPL submitted a claim on the project insurance policy and demanded payment of its alleged damages.

    GREYHAWK was engaged by the insurance carrier to assist in responding to BPL allegations of errors and omissions in an effort to settle the dispute without proceeding to arbitration. The BPL claims consisted of a spreadsheet of hundreds of work authorizations that BPL believed were caused by design errors and omissions. GREYHAWK mobilized in Miami and performed an initial evaluation of the claimed extra work items in attempt to understand the as-yet unsupported allegations. The claim of extra work items involved all disciplines of work throughout the building.

    The initial evaluation by GREYHAWK of the BPL claims of errors and omissions revealed that changes to the design program by BPL at 95% Design Development, BPL’s decision to initiate construction and GMP construction bidding at 35% Construction Documents, and extended and extensive value engineering efforts dictated by the owner caused significant delay and disruption to the design process. GREYHAWK presented these findings to BPL during mediation and requested that it provide detailed analysis and proof to support the allegations of errors and omissions. No substantive information was provided by BPL.

    The insurance company that wrote the policy on the project was found in liquidation. As a result, the matter has continued under the oversight of the Insurance Department of the State of Pennsylvania. GREYHAWK’s efforts have continued, with numerous hearings and expert testimony on the claims of errors and omissions. Many claims have been denied or reduced and final resolution is pending.