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ABOUT THE CLAIM
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Not too long ago, Guardian’s surety experts were called in to consult on a bond claim in the Midwest. The $30 million contract with the U.S. Army Corps of Engineers covered dredging operations on a major waterway when it was discovered that the dredge materials contained PCBs (polychlorinated biphenyls). Because PCBs are highly toxic, their disposal is highly regulated. This PCB discovery resulted in a significant change directive and delay in the project as a proper place to dispose of the material needed to be located and the appropriate approvals obtained (the massive volume of the contaminated dredge prevented any transportation to an incineration facility.) This led to a material change to the contract, one that would put the contractor over his bonding capacity. Further, the U.S. Army Corps of Engineers had significant concerns whether the contractor possessed the resources and capabilities required for successful project completion.
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ABOUT THE INVESTIGATION
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Arriving on scene the day after notification of the claim, Guardian’s construction and engineering expert observed a convoy of excavation equipment and giant dump trucks as far as the eye could see. A disposal site had been identified and approved on a nearby island, one that had limited access. To access the island, a “land bridge” would have to be constructed to get to the island during low water conditions. This “temporary access” also required additional approvals and resulted in more delays to the project. Once on the island, the contaminated, dredged soil was to be buried in a shopping mall-sized pit. When it comes to the size of earth movement endeavors, this one was earth-shattering. Over the course of the next three days, Guardian Group’s consultant analyzed the containment contractor’s capabilities and work-to-date.
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ABOUT THE RESOLUTION
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Considering the large scope, the necessarily dynamic nature of the project, and the regulatory hurdles among competing government agencies, in Guardian’s expert’s experience the contractor had actually performed admirably well. One additional unusual circumstance on this project: a fire broke out on a worker’s pickup truck… on the island with no accessible firefighting equipment. In the face of a fully engulfed vehicle, the contractor used an excavator to extinguish the vehicle fire averting what could have been a wildfire crisis with potential ramifications to the containment. The professional manner with which the subcontractor handled the emergency only instilled further confidence in his company’s ability to keep a project moving forward, assurances the Corps and the surety really needed – that everything was in capable hands with competent project management. After a meeting with the US Army Corps of Engineers, it was decided that the contractor did indeed have the resources and capabilities to complete the work without further monitoring or any claim on the bond.
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ABOUT GUARDIAN GROUP, INC.
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When surety claims come in, you know handling them well starts with understanding exactly what happened and why. It’s a special combination of claim investigation insight and technical construction/engineering proficiency that helps claim departments resolve claims reliably, responsibly, and rapidly. That’s why, time and again, sureties turn to Guardian Group, Inc. For over 30 years, Guardian has helped sureties practically and efficiently handle virtually every type of claim imaginable, from smaller, everyday claims and all the way up to many of the world’s most complicated, problem-fraught projects. Guardian’s support, whether on one claim or hundreds of claims, helps more claims leaders achieve their vision of claim handling success. Kindly call on Guardian Group today.