A surety client requested YA Group’s immediate assistance with a historic building restoration project in the Northeast. The obligee called for an A312 meeting to terminate the principal due to a lack of skilled labor. The project was already 90 days behind schedule, a fact that threatened financing on the overall $200M renovation.
Challenge Overview
The building, located in a prominent historic neighborhood, was over 100 years old. The obligee had been commissioned by the local historical trust to restore the exterior of the building to its historically accurate original facade.
The problem was the lack of trained masons. The job required an adequate knowledge of re-pointing the mortar joints utilizing a 100-year-old mortar mix and those possessing the craftsmanship to recreate the joints in a historically accurate manner. The obligee had a Historical Architect serving as its consultant to provide training for the masons on how to properly mix and apply the mortar.
YA Group’s Area of Impact
YA Group’s significant experience with complex, often highly specialized claims led to a newly negotiated completion date, eliminating the need to terminate the principal.
YA worked with the principal and obligee to find qualified masons and resolve outstanding warranty issues. YA’s surety consulting experts supported the obligee’s request to the trust authority for an extension for the project financing and also negotiated an extended warranty on the principal’s work.
YA’s surety consultants’ professional rapport with the obligee’s attorney was built upon a foundation of mutual trust. This enabled the principal to remain on the job while both counsel and YA’s surety consulting experts negotiated a fair outcome for all parties.
