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ABOUT THE CLAIM:
Not long ago, the Surety Claims Team at Guardian and YA Group had an opportunity to really come through for a surety client. The municipal authority responsible for a courthouse in the West had required a $10 MM bond for the structural steel subcontractor and the obligee had grown extremely concerned about the workmanship and the principal’s ability to complete the project.
ABOUT THE INVESTIGATION:
The investigation team rapidly deployed to the construction site where they could easily see why the obligee was so close to defaulting and terminating the principal. There were alignment issues, major project milestones had been missed, certifications and submittal timelines had seemingly been thrown to the wind. Moreover, costs were considerably higher than when the project was bid and contracted, so there was that looming problem, as well.
ABOUT THE RESOLUTION:
Once the Guardian and YA Group experts began engaging with the principal (the General Contractor’s) team, it became apparent that with the right, experienced management in place this principal, could, in fact perform the work successfully. The principal, a West and Southwest regional contractor, was well aware of Guardian and YA Group’s capabilities and prior experience, so that confidence as well served to soften the obligee’s pushback. Avoiding a contractor default and termination is always preferential. Why? Because of the cost-savings. In this case, because the need for a completion contractor was alleviated and the fact that liquidated damages would no longer apply, all three parties in this surety relationship achieved a far better outcome than the one they had been dreading – the surety, the obligee, and the principal all fared better. With Guardian and YA Group supervising the work of the principal and putting the team’s technical expertise to work, the project was successfully completed, saving the surety from a $2-3MM loss.
ABOUT GUARDIAN & YA GROUP:
Guardian and YA Group consult with sureties to help them resolve all types of bond claims expediently and cost-effectively. Today, clients leverage the engineering and other technical skills of YA Group’s team of almost 700 nationwide personnel. If you have claims in Mexico and England, YA can help you there, as well. Expert, reliable, efficient surety claim consultingdepends upon proven problem-solving capabilities and deep experience. That’s why the industry continues to rely on the dedicated professionals at YA Group. Kindly reach out today.