Framing Job Lumbered
The lumber framing of a mixed-use development encompassing hundreds of apartment units.



Even the world’s sharpest surety bond underwriting cannot eliminate all risk or loss. On this particularly tragic claim, involving the framing subcontractor for a mixed-use building that incorporated several hundred apartment units, the one possibility that nobody had planned for was that the principal would pass away at an early age. This was a uniquely sad situation for all parties, including the obligee, but everybody understood that despite the circumstances the obligee was obviously still owed a completed project, this was obviously critical path work, and there were no succession plans in place. The $6MM dollar project was already lagging behind and this was only going to exacerbate the schedule problem.


One of Guardian’s construction claim consultants immediately inspected the jobsite and the contractor’s records. The framing was only 10% complete. Making matters worse, the subcontractor hadn’t bought out his lumber, so whomever would take over the job would face market (increasing) prices. Frankly, he had underbid the job by two to three million dollars, a job which may have been too large for his young company. Guardian’s expert knew that reprocuring the job and finding a qualified framer to take over would be challenging.


By galvanizing focus on the importance of meeting the construction project’s milestones, Guardian helped facilitate a spirit of partnership with the obligee. Guardian identified and vetted a framing contractor to work on a labor-only basis, and the surety agreed to this, secure in the knowledge that Guardian would be deploying one of its construction managers to oversee the new subcontractor’s progress. Despite all of this project’s travails, Guardian and the framer were able to complete all contracted work on time. With all parties working toward a common goal, the surety was able to honor its obligations and resolve the claim for far less than its penal limit.


From small, everyday contract and commercial surety bond claims and on up to some of the world’s most problem-fraught construction projects, Guardian Group, Inc. help sureties resolve their claims rapidly, reliably, and cost-effectively. Combining technical engineering and construction expertise with seasoned, streamlined claims investigations and management, Guardian has served as a resource and ally to the surety industry for over 30 years. When surety claims hit your desk, time is of the essence. That’s why Guardian’s consultants are always prepared to jump in and act as an extension of your in-house claims department. Put Guardian’s pragmatic approach and proven problem-solving skills to work for you. Kindly call on Guardian today.

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