Case Study
Why Accurate Failure Analysis Is Critical in Construction Claims
The Problem
The Scenario: A High-End Residential Claim
At a luxury property in Beverly Hills, an exterior adhered stone veneer installation began to fail. The issue raised several important questions for claim evaluation:
- Was the failure due to installation error?
- Was there a product defect?
- Did environmental or design conditions play a role?
CTASC was engaged to perform an independent investigation to determine causation and evaluate whether the installation met industry standards.
The Solution
When handling construction-related claims, one of the biggest challenges is determining the true cause of failure. Misidentifying the issue can lead to inflated repair scopes, delayed claim resolution, and unnecessary financial exposure.
A recent CTASC investigation involving a stone veneer bond failure provides a strong example of how forensic analysis can bring clarity—and control—to complex claims.
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The Importance of Going Beyond Visual Inspection
Initial assessments in construction claims often rely on visual observations. However, as this case demonstrates, visible conditions rarely tell the full story.
Infrared imaging was used as a non-invasive method to detect subsurface issues, but the results were inconclusive due to the thickness of the stone. This reinforces a key takeaway for adjusters: non-destructive testing has limitations, and additional methods may be required.
To fully understand the failure, CTASC performed shear bond testing and selective destructive removal of the stone.
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What the Testing Revealed
The results provided clear and actionable insight.
The bond strength was insufficient, and failure consistently occurred at the interface between the mortar and the resin mesh backing on the stone. This mesh prevented proper adhesion, effectively acting as a barrier rather than a bonding surface.
Further analysis identified:
- Voids within the bond interface
- Inconsistent mortar coverage
- Installation conditions that increased stress on the system
At the same time, the mortar remained well bonded to the substrate. This distinction is critical—it indicates that the failure was localized to the veneer interface, not a full-system failure.
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Why This Matters for Claims Handling
Understanding the exact failure mechanism directly impacts how a claim is handled.
When the root cause is clearly identified, carriers can:
- Avoid over-scoping repairs
- Set more accurate reserves
- Determine responsibility with greater confidence
- Identify potential subrogation opportunities
In contrast, unclear or incorrect conclusions often lead to:
- Expanded and unnecessary repair recommendations
- Prolonged claim timelines
- Increased indemnity costs
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Aligning Findings with Industry Standards
Another critical aspect of this case is the role of industry standards in evaluating performance.
While ASTM testing provides measurable data, it does not always define pass/fail criteria. Instead, industry guidance—such as the TCNA Handbook and Dimensional Stone Design Manual—provides context for acceptable performance levels.
In this case, the installation did not meet commonly accepted expectations for exterior adhered stone veneer systems, further supporting the conclusion of inadequate bond performance.
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How Forensic Expertise Supports Better Outcomes
For insurance professionals, having access to clear, objective, and standards-based analysis is essential.
CTASC supports carriers and adjusters by providing:
- Comprehensive forensic inspections
- Root cause analysis based on testing and standards
- Clear, well-documented reporting
- Support for complex or disputed claims
This level of insight helps reduce uncertainty, improve claim accuracy, and ultimately control costs.
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Final Thought
In construction claims, the difference between a costly mistake and an efficient resolution often comes down to one thing: accurate failure analysis.
As this case illustrates, identifying the true cause of failure is not just a technical exercise—it’s a critical component of effective claims management.