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The tunnel was underground; the repair contractor was under water
Sample train tunnel in need of concrete repair


With a dramatic increase in infrastructure projects around the corner, it seems fitting to discuss one such project from Guardian Group, Inc.’s archives. Civil projects like highways, bridges, and tunnels always represent unique challenges, and Guardian has established an enviable track record overcoming those difficulties throughout the decades. On this specific claim, a train tunnel was suffering from severe cracking and moisture penetration. The municipal transportation authority had hired a repair contractor, the surety’s principal, to identify and make needed repairs. The project was seriously lagging. The principal declared bankruptcy.


It was all in the timing. The trains, as one might expect, were almost always in motion, with a lighter schedule operating only at late night and on weekends. Additionally, there was more repair work necessary than anyone had contemplated. The contractor had agreed to an accelerated work schedule that included eight-hour workdays, but what he hadn’t considered was the limited windows of time his crew would be able to perform the repair work. As the contracted completion date approached, bringing liquidated damages in tow, the contractor fell further behind.


Guardian helped forge a path forward by negotiating with the obligee, helping avoid any liquidated damages. By replacing the contractor with a repair specialist Guardian hand-picked, but on a time and materials basis instead of a hard bid and with an extended deadline, everybody was assured that with Guardian’s oversight the project would be safely and successfully completed. The surety agreed to finance the repairs, with the obligee reimbursing those expenses post-completion.


When surety claims hit, swift, cost-effective resolution is every claim department’s objective. That’s why for over 30 years Guardian Group, Inc. has demonstrated a unique capacity for construction/engineering insight, problem-solving, diplomacy and claim handling efficiency. From contract to commercial bond claims and from smaller, everyday claims on up to some of the largest, most challenged construction projects in the world, Guardian helps sureties protect their reputations and their bottom lines. For today’s claims or to ensure you are properly prepared for tomorrow’s claims, kindly call on Guardian Group today.

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