Arming sureties with construction management firepower



Military projects present unique contractual and construction issues. When liquidated damages (LD’s) come into play, even more diligence is required. Such was the case when a large surety’s principal faced obstacles with a design-build project (a series of storage bunker buildings for captured munitions) at a secure military installation. Because this was a design-build project, the US Army Corps of Engineers was reluctant to terminate the principal. The surety had similar concerns and chose to engage and finance the contractor through completion, with support from Guardian’s Surety Group.




While Guardian Group, Inc.  was retained to analyze the project and provide expert recommendations, by the time Guardian’s experts had been called to the scene the project was already two years behind schedule. Worse, it had been red tagged over quality issues.


Just a few of the myriad issues encountered were regulations including required sweeps by Explosive Ordinance Disposal and an environmental mandate for undisturbed bald eagle nesting. Also, because the project was located in an ultra-secure area of the base, only authorized labor with no criminal history was allowed. The contract also required “Made in the USA” materials, including telecommunication equipment, specialized explosion proof electrical fixtures and a redesign of a waterline discovered to be located in a riparian area. Significantly, there were also deficiencies in the principal’s quality control and safety protocols program that US Army Corps of Engineers insisted be rectified immediately.




Because Guardian Group, Inc. had a US Army Corps of Engineers/NAVFAC certified Quality Control manager on staff, the surety was able to supplement the principal’s Quality Control program. Guardian’s Surety Group experts assisted the principal’s subcontractors with their safety submittals and in the development of different testing protocols. With Guardian’s experience working under adverse conditions, the principal not only successfully completed the project but did so on-time, thus avoiding the surety’s payment of any penal loss sum.




From daily surety bond claim investigations to complex project takeovers, and from license bond claims to complete claims run-off programs, the industry has relied on Guardian’s unique combination of claims and construction expertise for nearly 30 years. For a consultative approach that results in greater efficiency, more rapid resolution and reduced exposure, call Guardian today.

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