FBU - Fletcher Building

[BlackPeter]

I would like to know what that material is that burnt like that. Surely all the materials used in a multi story building would be fire retardant.

From the recent NZ Herald article https://www.nzherald.co.nz/nz/news/a...ectid=12278779

Smoke billowing out of the building mixed with melting bitumen layer on the roof was dangerous to people nearby

Bitumen is used to e.g. waterproof roofs. It is not quite easy to set on fire, but if it burns (and yes, a blow torch will do), it burns ...

Ah - and here is a credible theory re the starting of the fire ... the primer used under the bitumen layer seems to be easier to incinerate:

While the man, who didn't want to be identified, did not know what happened he said it was possible a person laying the membrane could have left the gas torch on near a primed part of the roof and that was what caught fire, not the actual membrane.

Very difficult as well to extinguish - particularly given that this one seems to be (as well according to the article) sandwiched between concrete layers.

“It is a very difficult fire to put out. The fire is wedged between two concrete layers in the roof. It is too dangerous to crew on the roof, but very hard to reach from our aerial appliances.”

Sounds like an expensive repair anyway ...

[Beagle]

Timeline of this fiasco of cataclysmic proportions. https://www.msn.com/en-nz/news/natio...cid=spartandhp
Expected completion date and final cost ?
My speculative guess, late 2021, total all up cost including damages payable to SKC for late delivery, $1.3 billion.
FBU's previously loss provisioning rumoured to have thrown the kitchen sink at it, won't be enough...will need the "complete bath" as well which is exactly what FBU will get from this.

[Balance]

Timeline of this fiasco of cataclysmic proportions. https://www.msn.com/en-nz/news/natio...cid=spartandhp
Expected completion date and final cost ?
My speculative guess, late 2021, total all up cost including damages payable to SKC for late delivery, $1.3 billion.
FBU's previously loss provisioning rumoured to have thrown the kitchen sink at it, won't be enough...will need the "complete bath" as well which is exactly what FBU will get from this.

One assumes that the damages from the fire and its aftermath will be covered by insurance.

If not, then FBU will definitely & absolutely be ready for another blood-letting!

[Beagle]

Maybe they have insurance for the cost to rebuild but what about consequential damages SKC will be seeking for the substantial extra delay ? Fire commander saying its extraordinary difficult to put out...I guess a lot depends upon how devastating the extent of the fire is which is something that's not looking looking good at all https://www.stuff.co.nz/auckland/116...centre-on-fire

[Airw0lf]

Maybe they have insurance for the cost to rebuild but what about consequential damages SKC will be seeking for the substantial extra delay ? Fire commander saying its extraordinary difficult to put out...I guess a lot depends upon how devastating the extent of the fire is which is something that's not looking looking good at all https://www.stuff.co.nz/auckland/116...centre-on-fire

Yeah surely there is liquidated damages under the contract payable to to SKC from FBU due to delays that aren't force majeure. FBU probably has insurance to some extent to cover something like this but I'm fairly certain the insurer will want to be certain that there was no negligence/incompetence/lack of industry best practice in the fire starting before paying out...

[Airw0lf]

One assumes that the damages from the fire and its aftermath will be covered by insurance.

If not, then FBU will definitely & absolutely be ready for another blood-letting!

The insurance payout will surely be contingent on FBU and its subbies having followed proper industry practice and taken all reasonable steps to ensure the place doesn't go up in flames like this...so the root cause determination will be critical to the outcome IMO. Disclaimer: I am not an expert in insurance matters.

[Schrodinger]

How does negligence work with construction? A blowtorch “accidently” left on destroying the entire building is covered I assume?

If anything building site management comes into question I.e.what was the foreman doing while his crew was on smoko? Why weren’t there simple safety procedures for this work. Heck everyone knows to turn of the gas...

There must be a hefty premium and delay penalties added. Will head to court. Be wary investors.

[Schrodinger]

Timeline of this fiasco of cataclysmic proportions. https://www.msn.com/en-nz/news/natio...cid=spartandhp
Expected completion date and final cost ?
My speculative guess, late 2021, total all up cost including damages payable to SKC for late delivery, $1.3 billion.
FBU's previously loss provisioning rumoured to have thrown the kitchen sink at it, won't be enough...will need the "complete bath" as well which is exactly what FBU will get from this.

Just theory crafting but if the insurance company refuses to pay out does that make FBU insolvent?

[Balance]

Update at 10 am today.

https://www.nzherald.co.nz/business/...ectid=12278870

"SkyCity Entertainment Group and Fletcher Building chiefs will front at 10am today to update the situation on the convention centre fire and more information is expected to go to the NZX today too."

[Timesurfer]

Wonder who the insurance company is?