In Delta Pty Ltd v Mechanical and Construction Insurance Pty Ltd, Queensland Investment Corp had contracted with Delta to undertake some excavation work in preparation for the construction of a high-rise building. Delta had subcontracted the installation of rock anchors for four retaining walls to Team Rock Anchors Pty Ltd (TRA). The work of TRA was “woeful” and the rock anchors did not perform as designed. TRA’s defective work caused lateral movement of one of the retaining walls (SW1) and consequential damage. At issue was whether a contractor’s all risks policy issued by the respondent (Mecon) responded to Delta’s claim under the Mecon Policy.
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