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ABOUT THE CLAIM
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When the principal on one of Guardian and YA Group’s longstanding surety clients’ bonds began to fall behind schedule, the surety knew it was time to call in the surety experts. The principal was the framer on a 300-unit mid-rise apartment building in our nation’s Northeast. Delays at this phase of construction would obviously impact the mechanical, electrical, and plumbing subcontractors and the overall project schedule. Two separate bonds had been obtained for a total of $5 million.
ABOUT THE INVESTIGATION
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Rapidly deploying to the construction site, Guardian & YA Group’s surety consultants discovered not only a terribly non-compliant framing job, but framing was nowhere close to the percentage of contract already paid to the principal. Overpayment and questions on “who has been inspecting the work” quickly came to mind. During the investigation we quickly uncovered a less then perfect situation with the principal that included: underbidding, substitution of labor, and indications that the project had become something of a front wherein lumber was sold off the site and converted into cash.
ABOUT THE RESOLUTION
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Upon their assessment of the situation, the consultants reported back to the surety with their recommended best course of action: allow Guardian & YA Group experts to identify three (legitimate, competent) contractors to bid on completing the job and then to supervise their work. While this was certainly a disastrous bonding situation… with accusations of criminality abounding… the Guardian and YA Group team took all steps to help their surety client avoid a total loss. The saving grace for the project turned out to be the team’s experience with supplier negotiations. By working with the vendor to achieve optimal pricing, the surety consultants recouped some losses to reduce exposure from what would have otherwise been been a full penal sum loss.
ABOUT GUARDIAN & YA GROUP
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Surety companies rely on the unique combination of technical engineering expertise and claims investigation savvy that can only be found at today’s YA Group. With the recent acquisition of Guardian Group, YA offers clients the most complete suite of surety support services available anywhere. 700+ experts across the U.S., as well as in Mexico and England, stand ready to help you investigate and resolve claims effectively and efficiently. For your everyday contract and commercial claims, for a high volume of claims, and on up to surety claims involving some of the largest, most problem-fraught construction projects in the world, call upon unmatched experience, proven professionalism, and integrity. Call on the surety experts at YA Group today.