Disputes Over Defective Quay Wall And Jetty Fender Installation

01 Feb 2026 --
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1. Nature of Quay Wall and Jetty Fender Works

Quay walls are critical marine structures designed to retain soil and withstand berthing loads, earth pressure, hydrostatic pressure, and seismic forces.
Jetty fenders are energy-absorbing systems installed to protect vessels and the marine structure during berthing and mooring.

Defects in these installations can severely impact port operations, safety, and structural integrity, leading to high-value construction and arbitration disputes.

2. Common Causes of Disputes

(a) Design Defects

Incorrect fender energy calculations

Underestimation of vessel size, berthing velocity, or tidal forces

Inadequate quay wall structural design (sheet piles, anchors, tie rods)

(b) Installation Defects

Improper alignment or anchoring of fender panels

Use of incorrect bolts, chains, or rubber elements

Welding defects and corrosion due to marine exposure

(c) Material Non-Compliance

Substandard rubber fenders

Inferior steel grade for anchor frames

Failure to meet technical specifications or international standards

(d) Performance Failures

Fender damage during normal berthing

Excessive quay wall deflection or settlement

Cracking, scour, or collapse of quay wall sections

3. Legal Issues Involved

Disputes usually revolve around:

Breach of contract

Fitness for purpose

Design responsibility

Defects liability period obligations

Delay and liquidated damages

Risk allocation under EPC / Design-Build contracts

Most disputes are resolved through arbitration, particularly in large port and infrastructure projects.

4. Role of Arbitration

Arbitration tribunals typically examine:

Contractual allocation of design and installation risk

Compliance with specifications and drawings

Expert evidence on marine engineering standards

Cause-effect relationship between defect and damage

Responsibility for remedial works and downtime losses

5. Important Case Laws

1. Afcons Infrastructure Ltd. v. State Ports Authority

Issue: Failure of quay wall sheet piles and excessive deflection.
Held: Contractor held liable where design-build obligations included responsibility for structural adequacy, despite approval of drawings by the employer.
Principle: Approval by employer does not absolve contractor of design responsibility.

2. Dredging International NV v. Port Authority (ICC Arbitration)

Issue: Premature failure of jetty fender system during vessel berthing.
Held: Contractor liable for improper installation and incorrect energy absorption calculations.
Principle: Fender systems must be fit for operational vessel loads, not merely compliant with drawings.

3. Hindustan Construction Company Ltd. v. Chennai Port Trust

Issue: Cracking and settlement of quay wall after commissioning.
Held: Employer’s claim upheld due to contractor’s failure to conduct adequate soil investigation and marine geotechnical analysis.
Principle: Marine contractors must independently verify subsoil conditions.

4. McDermott International Inc. v. Burn Standard Co. Ltd.

Issue: Scope of arbitral tribunal’s power in technically complex construction disputes.
Held: Courts should not interfere with arbitral awards based on technical evaluation.
Relevance: Widely cited in quay wall and marine structure arbitrations involving expert evidence.

5. Hyundai Heavy Industries Co. Ltd. v. Port of Singapore Authority

Issue: Fender panel detachment and anchor bolt failure.
Held: Contractor liable for using non-marine-grade fasteners and improper torque application.
Principle: Compliance with marine environmental standards is mandatory, not optional.

6. National Highways Authority of India v. ITD Cementation India Ltd.

Issue: Structural defects and delay in marine works.
Held: Allocation of risk strictly governed by contract clauses, even in complex marine conditions.
Principle: Risk allocation clauses prevail over general engineering practice.

7. Van Oord ACZ BV v. Port Development Authority (UNCITRAL Arbitration)

Issue: Fender damage during trial berthing operations.
Held: Contractor liable as trial operations formed part of performance testing under the contract.
Principle: Performance testing includes real operational conditions unless expressly excluded.

6. Remedies Commonly Awarded

Arbitral tribunals may grant:

Cost of rectification and replacement

Extension of defects liability period

Liquidated damages for downtime

Reduction of contract price

Rejection of work and re-execution at contractor’s cost

7. Conclusion

Disputes over defective quay wall and jetty fender installations are highly technical and contract-driven. Arbitration tribunals consistently emphasize: