Design errors drive claims against naval architects

The warning comes after a recent claim involving the operator of a passenger and ro-ro ferry service which appointed a naval architect to design a landing craft ferry. The design was to be based on that of an existing vessel operated by the company. Prior to beginning the design work, the parties entered into a design agreement under which the naval architect’s liability was limited to around US$750,000.

Not long after the vessel was launched, the operator said they noticed various issues relating to its performance including vibration, lack of manoeuvrability and stopping capability. The vehicle loading ramp was also said to be at an excessive angle in certain conditions, making the loading of vehicles difficult and, in some cases, impossible. So, the operator carried out urgent rectification work so improvements could be made before the approaching summer season.

The vessel was drydocked and third-party experts were engaged to provide a report detailing the extent of the problems and their potential causes. Based on the findings of the report, the operator brought a claim for US3.5m against the naval architect, alleging that the performance issues were attributable to design errors. The operators subsequently acknowledged that the naval architect’s liability was limited to US$750,000.

An expert naval architect was appointed by ITIC to inspect the vessel and comment on the extent to which the apparent performance issues could be attributed to design errors. According to the expert, the naval architect was at fault but the claimant had incurred significantly more costly and extensive rectification work than was necessary.

ITIC entered into negotiations with the operators in order to resolve the matter, and the claim was settled for slightly less than the limit of liability under the contract.

ITIC says it’s also seen a number of other similar claims in the industry that demonstrate the need for naval architects to protect themselves.

The company offers professional indemnity policy for companies and individuals in the transport industry.