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In Dispute Over Location of Bike Path, City and Contractor Went Round and Round

Not every surety bond claim involves a multi-million dollar construction project takeover. Often, performance bond investigations are, regardless of size, really about identifying the best and fairest way forward for the surety and its client-principal. Guardian Group’s Surety Group was recently called in to consult on behalf of one of its longstanding clients. The claim was against their bonded principal, a concrete contractor, in regard to work he had performed on a paved bike path which wound through a wilderness park.


Following a review of the contract documents, conversations with the parties, and a walkthrough of the construction site, the bike path, Guardian’s claim investigator affirmed the situation. The county had complained to the municipality that the contractor had put the path on its land, and not the city’s, and the city, in turn, blamed the contractor. The city-obligee chose to withhold final payment. The principal had become adversarial. Moreover, the city was demanding a complete removal and re-do of the project at a cost of several hundreds of thousands of dollars.


Guardian’s surety claim expert knew the only way to expediently resolve the bond claim was through the procurement of a surveyor. Upon execution of the survey, it was easy to see that the contractor ha, in fact, followed instructions in the city’s contract, given in the form of coordinates. The effective utilization of the surveyor negated the need for project replacement. Since it was proven to be the city’s own fault, the principal and the surety has no liability. It was up to the city to negotiate its own easement with the county.


From regular, everyday commercial and contract bond claims to complex construction & engineering investigations and interventions, Guardian provides just the right amount of technical or claims support sureties may require. Small claims. Mid-sized claims. XXXL claims. Drawing upon over 30 years’ experience, we’ve even been tasked by sureties to write claims manuals, to handle run-offs, and, frequently, to serve as their out-of-house claims department for all bond types. Guardian Group is here to support your unique vision of claim handling success. Please let us know what you’re working on – reach out today!



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