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ABOUT THE CLAIM:
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A surety called Guardian Group, Inc. for support on a bond claim investigation. An electrician had filed for Chapter 7 bankruptcy protection… but this was no ordinary electrician, and this was certainly no run-of-the-mill job. The surety’s principal, the electrical subcontractor, had been given a $12MM bond to guaranty his company’s performance on a major project, the installation of all electrical for a new sports venue. As the schedule came under increasing pressure and scrutiny, the obligee had made a demand for completion and reminded the surety that it was facing damages, including substantial loss of revenue if the stadium failed to open in time. That’s when the principal filed his bankruptcy papers in court.
ABOUT THE INVESTIGATION:
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Guardian’s surety claim expert and the company’s engineers rushed to the scene to find work only approximately 80% complete, although the precise degree of incomplete work would only be determined upon resumption of the various projects. The integrated work that still needed to be addressed included everything from interior and exterior lighting and power to telecommunications, security, signage, ticketing, retail, etc. This was definitely not a situation wherein one could easily re-let the job and the pressure to finish the job continued to intensify. Guardian’s experts immediately knew that in order to honor the surety’s obligation and reputation as well as to satisfy the obligee that a specialist with integrations experience would be required to complete the job well, on-time, and while avoiding penalties.
ABOUT THE RESOLUTION:
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Guardian reached out to its network and vetted some possible candidates with the right pedigree, not only as a qualified electrician but one with stadium and integrations experience. The most qualified subcontractor was capable and willing to complete the job but only on a time and material basis. The surety understood and accepted this condition with Guardian Group’s completion oversight serving to mitigate those intrinsic and not insignificant risks. Additionally, Guardian’s team got to work ensuring other vendors got paid and ratifying the existing subs. Ultimately, the new arena opened on-time (with final lightbulbs being screwed-in right up until opening night game time, as the team joked) and the surety breathed a giant sigh of relief.
ABOUT GUARDIAN GROUP, INC.:
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From complex construction and engineering claims on some of the world’s most issue-ridden projects to smaller, everyday contract claims. Guardian Group, Inc. helps you resolve claims swiftly and cost-effectively. Combining technical problem-solving with claims investigations efficiency, Guardian puts its 30+ years’ experience to work for you, helping you achieve your vision of claim management success. Today, sureties rely on us for many of their commercial (non-contract) bond claims, too. Whether you require support on a single claim or are curious to see how Guardian’s third-party administrative services for sureties can help you achieve your business objectives, we warmly invite you to call us today.