The Charing Cross sculpture, due to be unveiled by the Bailiff this week, crashed to the ground as contractors installed it.
The nine feet high granite column slipped its securing pin as it was lifted off a truck at about 8.30 am.
Passers-by saw it crash to the ground from a height of about ten feet, bounce off the newly paved area outside Thomas Cook and split into two parts.
Fortunately no one was hurt.
The £10,000 sculpture was commissioned by the Jersey Heritage Trust as the final symbol of the year-long 1204-2004 celebrations.
Surveying the scene this morning, trust vice-chairman Freddie Cohen said that it was not a total disaster.
Public Services, who organised the installation, were busy repairing the sculpture before making a second attempt at installing it this evening.
