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About the Claim
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A five-story, all-wood apartment building in the Southwest turned into a calamitous surety claim. Despite prior experience, the enormity of this job, one that came with a $5MM lumber package, proved to be far more than this framer could handle. He defaulted with only 30% of the structure complete. Even though city inspections had been passed, the surety had already caught wind that serious trouble was brewing. The surety knew it needed to hear the unvarnished truth so it turned to YA’s Surety Team. In addition to a reputation for pragmatic counsel, the surety knew YA’s Surety Team possessed specialized experience in Level Four all-wood, multi-story construction.
About the Investigation
YA’s first site walk confirmed the rumors — and then some. Walls out of plumb. Overhangs off by inches. Deviations and deficiencies at every turn. Worse, this wasn’t aesthetic finish work; this was all load-bearing infrastructure, and it was already, in the opinion of YA’s engineers, at risk of collapse. The contractor’s reliance on roving labor crews left a job site that bore little resemblance to the plans. Identifying this as a safety, health, and welfare exposure, YA knew it needed to serve its surety with the cold, hard facts and a plan that would, if not “save the day”, at least prevent injury to people or to the surety’s brand.
About the Resolution
YA immediately engaged the truss manufacturer, lumber supplier, and architects through RFIs to clarify design intent, to stabilize unsafe conditions, and to determine what could safely be salvaged. After confirming the precise scope, YA recommended the project be re-let for bid and assisted the surety in selecting a specialized framer capable of handling a wood structure of this scale and complexity. That contractor was engaged and commenced work under the Surety Team’s direct supervision. When construction ultimately resumed, salvageable elements were incorporated, unsound framing was torn out, and the work was rebuilt to plan. The surety’s financial losses were reduced where possible, but critically on this claim, the project was brought back into compliance — safe for occupancy and safe for the surety’s reputation.
About YA
The Surety Team at YA serves as the surety industry’s go-to partner when bonded projects go sideways. They tell it like it is, the good, the bad, and the ugly, and provide the pragmatic solutions that get construction back on track. The YA reputation continues to be for helping our surety clients understand exactly what happened and providing the technical expertise that helps transform messes into manageable resolutions. With decades of experience in every major construction type, sureties count on YA to reduce their losses and limit their exposures. For all your surety needs, kindly call on YA today.