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ABOUT THE CLAIM
Recently, Guardian was asked to consult on a surety bond claim at a commercial facility in the Midwest. The bonded principal was an electrical contractor who had been awarded the $6 MM project due to his company’s specialized experience. When the obligee observed that progress was lagging, the surety was notified. In turn, the surety reached out to Guardian to assist their claims department in determining job status, assessing exposures, and making recommendations as to the surety’s best next steps.
ABOUT THE INVESTIGATION
One of Guardian’s senior claim consultants quickly made his way to the project site to continue his fact-gathering (he had already reviewed the claim, contract documents, drawings, and specifications.) Indeed, the project was seriously behind schedule and the threat of Liquidated Damages loomed large. It was obvious to Guardian’s seasoned expert that the electrical contractor, though well-skilled himself, lacked the qualified personnel to complete the job. Increased labor costs meant he had underbid the job by an amount estimated to be one million dollars. The principal was quite forthright and transparent: he needed help, and he wasn’t afraid to ask for it. With surety financing, he figured, he could complete the project and save face, even if it meant making less on the project overall.
ABOUT THE RESOLUTION
Guardian appreciated the open and cooperative approach demonstrated by the principal. But supporting the principal’s request for surety financing would not alleviate the need for adequately trained personnel. Guardian identified a different process that stood to benefit all parties. Guardian had a pre-existing working relationship with a highly qualified electrical contractor, one who had specific experience with this type of power system. Therefore, Guardian recommended to the surety and obligee that they leverage this contractor’s ability to provide oversight and supplement the principal with additional manpower. Both agreed; the principal avoided termination and completed the project without significant losses.
ABOUT GUARDIAN GROUP
Guardian has helped sureties resolve all types of claims expediently and cost-effectively for over 30 years, from small and everyday contract and commercial claims and on up to some of the largest, most problem-fraught construction. Today, operating as a division of YA, clients who engage Guardian experience the same personal attention to which they have become accustomed but now can leverage the skills of over 600 engineers, building consultants, and others who are strategically located throughout the U.S. If you have claims in Mexico and England, YA can help you there, as well. Efficient surety claim resolution depends upon deep experience. And that’s why the industry continues to rely on us. Kindly reach out today.