The effect of adverse weather on construction sites
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1 THE INTERNATIONAL ASSOCIATION OF ENGINEERING INSURERS 45 th Annual Conference Rio de Janeiro, Brazil 2012 The effect of adverse weather on construction sites WGP 78 (12) Chair Richard Radevsky Charles Taylor Brad Dalton Suncorp Simon Chen Engineering Insurance Association, Taipei Alessandro Stolfa Assicurazioni Generali Matia Cazzaniga Zurich Insurance Raik Wittowski Swiss Re Sponsor Emanuel Baltis, Zurich Insurance Group
2 Be prepared the motto of the Scout movement
3 Types of adverse weather Snow, ice and extreme cold Heavy seas Strong wind, hurricanes, tornadoes and typhoons Torrential rain and inland flooding Lightning Hail Bushfires/Wildfires
4 Considerations Projects most exposed Potential damage Precautions to minimise damage Insurance underwriting considerations and standard clauses
5 Snow, ice and extreme cold
6 Projects exposed Large volumes of concrete Hydropower plants, dams and reservoirs Pipelines and infrastructure Mining and mineral processing plants Wind farms Transmission and distribution lines Sewage treatment and drainage systems Buildings, factories and warehouses Solar power and photovoltaic plants Tunnelling and underground works
7 Potential damage
8 Precautions Labour force health and safety Construction plant and equipment winterisation General provisions for cold weather construction practice
9 Heavy seas Graphic of waves here
10 Projects exposed Breakwaters Sea walls Seasonal exposure short time period available for works Reliability of wave data
11 Potential damage Storm surge Calculations of Significant wave height (Hs) Return period (RP) Unfinished marine structures vulnerable until final armouring is in place
12 Precautions Emergency plan to cover: Section without protection Caissons in position but not secured Storage of caissons exposed to wave action Safe storage of machinery on breakwater Suspension of work to the tip of breakwater during stormy season
13 Strong winds, hurricanes, tornadoes and typhoons
14 Projects exposed Buildings, factories and warehouses Radar or antennae Towers, wind turbines Silos, bins and tanks Hydraulic structures, hydro, marine works Bridges Pumping stations Overhead transmission lines Solar installations
15 Potential damage Saffir Simpson scale damage rises x 4 for each category increase Storm surge and rainfall induced floods Dependent on local building codes Damage to roofs, uncompleted walls, formwork and temporary buildings Lightweight structures vulnerable
16 Precautions General precautions Preparedness Scaffolding and cranes Motor vehicles Tornadoes After the storm
17 Torrential rains and inland flooding
18 Projects exposed Steep terrain High run off rates Narrow canyons or valleys Surface run off in excess of drainage capacity Low lying areas in middle or lower reaches of rivers Flood plains
19 Potential damage Average recurrence interval (ARI) Water depth at ARI of 100 years Flash floods, stream flooding, landslides Currents, sediment and debris Secondary damage when ground is saturated watersheds and stability problems Freeze thaw cycles Flooding minor, moderate, major
20 Precautions Hazard assessment Location of materials and fuel storage Provision to move equipment to safe areas Construct earth embankments, sediment basins and/or dykes/canals Site drainage basin Hold pumps on site Sand bags, straw bales, berms Plan for safe evacuation of plant and personnel
21 Lightning
22 Projects exposed Random nature 70% between 35 degrees N and S of equator (tropical) Petroleum products storage tanks More businesses affected than by floods, fires, explosions, hurricanes and earthquakes
23 Potential damage Physical damage to buildings under construction Electrical and electronic systems within structures caused by: surges transmitted via wiring radiated electromagnetic fields
24 Precautions External/internal lightning protection system Earthing Magnetic shielding Line routing Surge protective device (SPD) system
25 Hail
26 Projects exposed Light metal cladding Glass roofed structures or skylights Photovoltaic/solar panels Wind farms Plant or materials in the open air
27 Potential damage Dependent on size, density, falling velocity and distribution of stones Aesthetic/cosmetic does not affect performance Functional or structural Leaks and cracks, may reduce service life Can worsen flash floods by blocking drains, culverts and grates
28 Precautions Protective shields for rooftop equipment and skylights Specify impact resistant roof covering Hail risk management plan
29 Wildfire/bushfire
30 Projects exposed Local hazard identification maps in some countries Within 0.8km of any forest Within 30m of grasslands Radiant and convective heat Flaming embers
31 Potential damage Fuel effect of climate on fuel availability Topography hills and mountains: hinder fire crews influence direction and speed of wildfires Temperature, humidity and winds Flying embers Direct flame encroachment Heat radiation leading to auto ignition
32 Precautions Fire fighting and water supplies Vegetation Materials in open air Equipment and machinery use
33 Insurance considerations Underwriting to consider: Project location Method of construction Programme of works Assessment of site specific perils Client s risk management and precautions Use of standard clauses
34 Insurance considerations Standard clauses Swiss Re clause Clause Hours Clause EPI 40 Storage of materials EPI 44 Pipelines, Conduits and cables EPI 45 Road Construction EPI 46 Ground Water Pumping Operations Effect Definition of one occurrence Required precautions against flood Required precautions and limit on extent of works covered Limit on extent of works covered Required precautions against flood
35 Insurance considerations Munich Re Clause Endorsement 1231 Special Exclusion: flood or inundation Endorsement 1232 Special Exclusion: windstorm Endorsement 1243 Special Exclusion: normal action of the sea Endorsement 1243 Special Exclusion: marine and off shore work Endorsement 1248 Special Exclusion: section lengths Endorsement 1264 Special conditions: open trenches, pipes, cables and ducts Endorsement 1265 Special conditions: loss prevention in respect of flood and inundation Effect Exclusion of flood/inundation damage Exclusion of windstorm (as defined) damage Exclusion of damage resulting form normal action of the sea (as defined) Exclusion for cost of dredging/redredging Limit on covered lengths of embankment, cuttings, benches, ditches, canal or road Required precautions and limit on extent of works covered Required precautions against flood
36 Insurance considerations Munich Re Clause Endorsement 010 Exclusion of loss, damage or liability due to flood and inundation Endorsement 012 Exclusion of loss, damage or liability due to windstorm or wind related water damage Endorsement 013 Property in off site storage Endorsement 106 Warranty concerning sections Endorsement 107 Warranty concerning camps and stores Endorsement 108 Warranty concerning construction plant, equipment and machinery Effect Exclusion of flood/inundation damage Exclusion of windstorm (as defined) damage Required precautions against flood Limit on covered lengths of embankment, cuttings, benches, ditches, canal or road Required precautions against flood and fire spread Required precautions against flood
37 Insurance considerations Munich Re Clause Endorsement 109 Warranty concerning construction material Endorsement 110 Special conditions concerning safety measures with respect to precipitation, flood and inundation Endorsement 111 Special conditions concerning removal of debris from landslides Endorsement 117 Special conditions for laying water supply and sewer pipes Special conditions concerning firefighting facilities and bushfire safety on construction sites Endorsement 1260 Special conditions: contract time schedule Effect Required precautions against flood Required precautions against flood Exclusion for extra cost of removing landslides and cost of repairing eroded slopes/graded areas if precautions not taken Required precautions against flood or silting Required precautions against bushfire damage and storage unit value limit Limit on cover for delayed schedule
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