The Future is Now: Application of AI-Controlled Water Management System
Dallas Attorney Jared Norton recently wrote the following article for the March edition of Construction News magazine. Jared discusses the application of AI-Controlled Water Management System.
Construction projects are anything but benign: inherent dangers in the physical construction, safety risks to the enormous labor pool, and seemingly ever-increasing financial burdens and obstacles to continuously overcome in advance of fast-approaching deadlines should be more than enough for anyone to stress over. Naturally, insurance companies across the board, especially in this post-2020 COVID-affected economy, are more than comfortable charging hefty premiums and deductibles to their insurers for the “privilege” of coverage should something go awry during or post-construction.
One such problem is water damage; a good portion (30%) of all Builders Risk claims[1] come from moisture intrusion or water-related damage. However, recent developments in technologies, powered by the ostensibly all-encompassing “AI,” along with partnerships with insurance companies, promises to reduce strain on contractors, developers, owners, etc. as well as mitigate impact to those same insurance companies.
The Nightmare Hypothetical[2]
Saturday 1:34 am: The leak is deep inside a wall of your new 20-story commercial structure. It starts slowly. Just a few drips from a joint in a copper supply line.
Saturday 2:40 am: The dripping continues for about an hour. Then the copper press fitting fails, sending thousands of gallons of water an hour spraying inside the walls and at this point leaking outside the walls. Located near a major highway, the on-site security guards are unable to detect the sound of the water.
Monday 7:52 am: Hidden from view, the flow continues unabated until Monday morning when crews arrive to continue fitting out the lower level and discover massive amounts of water has submerged sheetrock, rolls of carpet, multiple generators and other equipment. Water, finding the lowest point as it does, also flooded four elevator pits and four escalator pits.
Monday 8:02 am: The water main is finally shut off. But millions of dollars of damage has already been done. And if the project has good insurance coverage, the contractor is still on the hook for sub-deductible losses. And in the case of water damage, there can be many such losses that add up to a lot of money.
AI, IoT, WINT & HSB
Enter WINT Water Intelligence, a “water management system that detects and stops leaks at the source using Artificial Intelligence”[3] via the utilization of IoT (Internet of Things) sensors, in conjunction with HSB / Munich Re.
WINT serves to “equip contractors, developers, owners and facility management teams with a cutting-edge solution for managing water throughout the lifecycle of a building, from construction to operation.” IoT sensors are placed in areas where certain construction is underway that will anticipate waterflow or is otherwise plausibly at risk for water damage.
The sensors monitor the environment in at least two ways: (1) if connected to a water source or “checkpoint,” observe and monitor the flow of water in accordance with its coded parameters; (2) if connected to a non-water source, observe and monitor for whether water/moisture is detected at all. Those devices connected to water sources can communicate among each other via Wi-Fi, Ethernet connections, or even cellular networks (dependent upon the stage of construction and whether electrical infrastructure has been installed) as well as central hub(s) on- or off-site. If a water leak, or if a recording above a pre-specified threshold, is detected, commands previously designated in the central hub(s) can automatically shut off the source of water local to the affected area. Separately, if a device that is monitoring an area where water/moisture is not normally expected detects an anomaly, an alert can be signaled to the human elements on call for further investigation and confirmation.
HSB has taken the unique step of providing a “water damage warranty,” covering up to $250,000 for water damage on a construction site under the condition that the WINT system failed to prevent or otherwise mitigate the water-related issue. This is a relatively nascent act from an insurance company that is likely to be seen by others as “AI-adjacent” systems like WINT are adopted for other areas/phases of construction projects.
The possibilities for systems like this to aid contractors, owners, and design professionals is certainly welcome in a time where “an ounce of prevention is worth a pound of cure” rings loudly in the face of elevated premiums and deductibles. By integrating AI-driven solutions and developing partnerships with forward-thinking insurers like HSB, stakeholders can safeguard their investments, streamline operations, and ultimately enhance project outcomes for the benefit of all involved parties. Thorough analysis from legal counsel ensures contractual agreements align with the deployment and performance of these systems and, ideally, offer comprehensive protection and peace of mind to all involved parties. Investing in prevention today safeguards against the costly repercussions of tomorrow, charting a course towards resilience and success in the ever-developing construction industry.
[1] “Damage from water accounts for roughly 30% of Builders Risk claims.” https://axaxl.com/fast-fast-forward/articles/dont-go-with-the-flow_water-is-the-new-fire-in-construction-risk.
[2] Id.
[3] “WINT and HSB Help You Reduce Your Deductibles”.
Jared Norton is an Attorney in the Dallas office of Cokinos | Young. His practice primarily focuses on construction, insurance coverage, and commercial litigation. Prior to joining Cokinos | Young, Mr. Norton solely represented design and engineering professionals against malpractice, construction defect, breach of contract, and indemnity claims. Mr. Norton is experienced in all aspects of litigation in state courts from initial answer or petition, discovery, and case strategy to preparing and arguing motions, conducting depositions, and trial or arbitration preparation.
About Cokinos | Young
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