Motorised shade sails are a tool used by many members to improve the amenity of community facilities. When they fail, they can be expensive to repair – especially given the current inflationary environment.

An LGIS member recently suffered a loss as one of their shade sails stopped working due to improper installation.

Case study - the damage

A shade sail structure with a motorised pulley system failed and stopped working.  The claim is still being reviewed but we believe that the failure is due to wear and tear possibly resulting from a combination of improper installation and defective materials supplied for construction.  

The original suppliers who manufactured and installed the structure are no longer in business, removing any opportunity for recovery.    The repair cost quoted is in excess of $150,000.

What went wrong?

Upon examining the damage, the assessors identified:

•  that corner posts had been manufactured in one orientation and installed in another.
•  various components showed excessive wear.
• the motor box lids were all unstable, damaged and had no way of being closed securely.  
• the driver cables were damaged through similar issues.

These are just a few examples of the damage that occurred and the list is extensive.  The identified failures can be linked to potential design failures, defective materials and incorrect installation

The LGIS Property Protection policy specifically excludes:

'Damage, occasioned by or happening through:

• moths, termites, marine borers or other insects, vermin, rust or oxidation, mildew, mould, wet or  dry rot, corrosion, change of colour, dampness of atmosphere or other variations in temperature, evaporation, disease, inherent vice or latent defect, loss of weight, change in flavour texture or finish, smut or smoke from industrial operations (other than sudden and unforeseen Damage resulting therefrom)
• wear and tear, fading, scratching or marring, gradual deterioration or developing flaws, normal upkeep or making good
• error or omission in design, plan or specification or failure of design
• normal settling, seepage, shrinkage or expansion in buildings or foundations, walls, pavements, roads and other structural improvements, creeping, heaving and vibration
• faulty materials or faulty workmanship

Provided that this perils exclusion shall not apply to subsequent damage to the property protected occasioned by a peril (not otherwise excluded) resulting from any event or peril referred to in this exclusion.'

Lessons to be learned

Whilst the member is exposed to a loss it had not anticipated and for which indemnity under LGIS Property is unlikely, a failure resulting in injury to staff, or a member of the public could have been catastrophic.  

Members should take note of this case and understand the importance of selecting reputable suppliers, ensuring material used is of a standard required, that installation is carried out appropriately and ensuring a formalised maintenance regime is implemented to ensure assets are fit for purpose. This is essential as it can assist members in any recovery action against a contractor.

The importance of documentation can't be understated in strengthening members' position when alleging and claiming for faulty workmanship. Ideally records should be kept from the stage of installation to minor repairs or major damage, anything and everything should be documented.