Challenge Overview
A longstanding client called YA Group to investigate a bridge-related bond claim in the Midwest. The obligee on the bond, the state where the bridge stood, made a claim as soon as a work stoppage occurred on the part of the bonded principal, a commercial painting company. Civil infrastructure projects such as bridges represent not only substantial initial expenditure, but continuous investments into ongoing maintenance. Bridges’ exposure to the elements typically require frequent repainting, especially when spanning across water such as this one. This is not for purely aesthetic reasons but because the paint itself provides protection, expanding lifespan by preventing corrosion of the steel.
YA Group’s Area of Impact
YA engineers could readily observe both a severely delayed project – painting had barely begun – and a rather treacherous set of working conditions. Bridge painting projects are never for the faint of heart, but this one proved especially perilous due to the way the immediate topography influenced the winds. Upon a review of the work records and an interview with the principal, it became apparent that he, the owner of the commercial painting company, was operating under extreme financial distress. In the face of a likely bankruptcy, YA’s team was careful to document and photograph everything at every step. This served to prepare for successful subrogation and recovery.
On this claim the surety chose to temporarily finance the principal to progress work and minimize delays. All the while, YA’s surety team was soliciting bids and formulating a long-term completion solution. YA personnel mobilized on the project and provided project management and administrative control during the interim financing and relet period. Ultimately, YA successfully transitioned the project to a completion contractor tendered to the obligee.
