Recently, Guardian Group, Inc.’s Surety Group was called in to consult on a default in the Northeast. The principal simply did not have the capacity to perform the size of the contract she had bid for a multi-story building. While she, the principal of this minority-owned business, a registered Women Owned Business Enterprise, had attempted to subcontract the bulk of the work to another contractor, that contractor utilized inexperienced labor which led to deficient work and caused the project to fall behind schedule. The cost to correct all of the wall and floor tile work and accelerate the overall project was preliminary estimated at $250,000, but Guardian’s surety consultants are, first and foremost, problem-solvers.
In this case, while the Obligee had begun with a default and an insistence that the surety takeover the project, Guardian’s experienced personnel successfully convinced the obligee that time was of the essence and that it would be far better for all concerned to rescind the default and termination. This was due, in part, to the special business status of the principal and associated contracts, as well as to eliminate headaches and to increase efficiency for all parties. Instead, Guardian Group, Inc. assisted the principal in locating additional qualified personnel to remedy the project’s deficiencies. With this support in place, the principal was able to complete the remainder of the incomplete tile work utilizing her own forces.
By working to mitigate the completion costs, Guardian helped keep those costs within the values of the remaining contract balance, while the parties negotiated a resolution on the additional costs.
Experience is more than a technical advantage. It’s a bottom-line advantage. By treating each and every claim as if it were our money on the line, we continue to demonstrate the value of the Guardian Advantage. Though low hourly consulting rates can be tempting, it’s important not to be misled by them. In the first place, you are sure to be billed for more hours, utilizing less qualified, less experienced talent. Secondly, you get what you pay for – even a lower total consultant’s bill is meaningless if it hasn’t mitigated your risks, limited your exposure and saved you significant monies elsewhere.