IMIA – WGP 59 (08)

Bridges – Construction, Insurance and Risk Management

IMIA Conference Gleneagles

September 17, 2008

2

Heiko Wannick – Munich Re – Munich, Germany (Chairman)

Alexander Artamonov – Gefest – Moscow, Russia

Christian Bendel – Munich Re – Munich, Germany

Chris Blueckert – Zurich Insurance – Stockholm, Sweden

Hervé Landrin – Munich Re – Munich, Germany

Mike Spencer – Zurich Insurance – London, UK

Philip Wallace – Infrassure – Zurich, Switzerland

Louis Wassmer – Zurich, Switzerland

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The Team

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Ancient Times

420.09.2008

A Bridge too...

520.09.2008

Modern Times

620.09.2008

Landmarks

720.09.2008

Recent Highlights

820.09.2008

Current Challenges

920.09.2008

The Future

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Agenda

Technical Aspects

Risk Exposure and Underwriting Considerations

Loss Examples

PML-Considerations

Risk Management

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Technical Aspects

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Girder Bridges

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Launching Girder Method

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Launching Girder Method

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Incremental Launching

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Incremental Launching

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Cable Stayed Bridges

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Cable Stayed Bridges

1920.09.2008

Suspension Bridges

2020.09.2008

Suspension Bridges

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Arch Bridges

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Arch Bridges

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Selection Criteria

Topography

Geology

Costs

Constructability

Aesthetical aspects

Environmental aspects

Construction risks

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Risk Exposure and

Underwriting Considerations

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Risk Exposure

Natural Hazards

Fire

Faulty Design, Materials, Workmanship

Third Party Liability

Contractors‘ Plant and Equipment

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Natural Hazards

Earthquake

Flooding

Windstorm

Landslide

Lightning

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Earthquake

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Flooding

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Flooding

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Windstorm

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Monitoring System at Stonecutters Bridge

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Fire Hazard

Use of wooden formwork and falsework

Welding and cutting works

Placement of bituminous pavement

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Fire Hazard

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Fire Hazard

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Faulty Design, Materials, Workmanship

Constraints

Purpose of the bridge

Temporary + permanent loads

Durability and lifespan

Architectural , aesthetic and environmental aspects

Overall budget available

Construction time schedule

Geographic site conditions

Ground conditions

Sea/river/lake conditions

Design considerations

• AASHTO Standard Specification for Highway Bridges

• BS 5400 Specification for leads on Steel Concrete and Composite Bridges

• ASCE Recommended design loads for Bridges

• OHBDC the Ontario Highway Bridge Code

• Japan Road Association design Manual for design of highway bridges

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Underwriting Considerations

Experience and reputation of designers and contractors

Temporary works design – method statements

Natural hazard exposure

Outside influences (e.g. external impact by vessels)

Construction programme

Third Party exposure

Plant and equipment

Project risk management approach

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Risk Assessment Matrix

Technical Segment Hazards / Sensitivity Factors*

Type of Bridge Natural Exposure External Collapse Fire, Explosion Construction,

Design

Girder 1 1 1 1 1

Frame 1 1 1 1 1

Arch 2 2 3 2 2

Suspension 2 2 2 2 2

Cable Stayed 2 2 2 2 2

Components

Foundations, Abutments 1 1 1 1 3

Falseworks 1 1 1 1 (Steel) 3 (Wood)

2

Formwork 2 2 3 1 (Steel) 3 (Wood)

2

Bridge Deck 1 2 2 1 2

Cantilever 2 2 2 2 2

Pylons 2 2 2 2 2

Main Cable 1 2 2 1 3

Caissons 1 1 1 1 2

*Sensitivity Factors:

0 = unaffected, unlikely to suffer damage

1 = Low, minor damage, can be repaired

2 = medium, significant damages, may require alternative working method for repair

3 = high, catastrophic failure of bridge, collapse

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Relevant Warranties

Deviation from time schedule

Structures in E/Q zones

Flood protection measures

Damage to U/G-services

Fire fighting facilities

Piling and retaining walls

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Loss Examples

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River Main Crossing, Germany

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Savannakhet Mekong River Crossing, Laos

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Can Tho Bridge, Vietnam

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Hyderabad Flyover, Pakistan

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Jintuo Bridge, P.R. of China

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PML-Considerations

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PML-Scenarios for Bridge Construction

Flooding

Earthquake

Aircraft impact

Ship collision

Sabotage

Traffic accidents on bridge deck

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Case Study 1: PML for a Girder Bridge

Scenario:

Impact by a large freight ship

to one of the piled supports

of the bridge deck

Piles: 20%

Bridge deck (surface): 20%

Bridge girders: 20%

Removal of debris: 100% of SI(PML in % damage of permanent works for individual construction elements)

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Case Study 2: PML for a Suspension Bridge

Scenario:

Impact by windstorm at the most

critical stage before the bridge

deck and the suspension cables

have been jointed together

Steel and concrete works: 67%

Hanging systems: 10%

Extra cost: 100%

Removal of debris: 100% of SI(PML in % damage of permanent works for individual construction elements)

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Case Study 3: PML for a Cable Stayed Bridge

Scenario:

Massive Ship collission

against pier and girder, pier

unprotected by artifical

island

Steel and concrete works: < 20%

Suspension systems: 10%

Extra cost: 100%

Removal of debris: 100% of SI(PML in % damage of permanent works for individual construction elements)

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“No construction project is risk free.

Risk can be managed, minimised,

shared, transferred or accepted.

It cannot be ignored.”

Sir Michael Latham, 1994

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Code of Practice for Risk Management

BRIDGE

The International Association of Engineering Insurers

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HAZARD

IDENTIFICATION

What can happen?

How can it happen?

RISK

MITIGATION

Screening

Options

Evaluation

Actions

Re-Evaluation

MITIGATION COST

RESIDUAL COST

Quantify Mitigation Cost

Quantify Residual Risk

RISK ANALYSISRISK

EVALUATION

Likelihood

Consequence

Determine

RISK RANKING

DEFINITION OF

OBJECTIVES

Objektives?

Success Criteria?

Risk Categories?

MONITORING & REVIEW

REPORTING

RATING CRITERIA

Risk Management Process

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Conclusion

Some bridge types are sophisticated structures requiring application of advanced and risky construction techniques

Bridges under construction are particularly exposed to natural hazards, faulty design and external impact

A number of recent losses have shown the vulnerability of bridge construction, especially in regard to temporary works

Professional risk management standards have yet to be implemented into bridge construction projects

A Code of Practice similar to the ITIG-TCoP is recommended

5420.09.2008

Thank you for your attention!

Heiko Wannick

Munich Reinsurance Company

Topic Network Construction