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Newtown Creek Sewage Treatment Plant, Brooklyn, NY
Surety Consulting and Support
New Construction
$17,000,000
This project involved the replacement of an outdated, existing sewage treatment plant for the New York City Department of Environmental Protection. A new massive secondary sewage treatment facility was to be constructed adjacent to that site on the banks of Newtown Creek in Brooklyn, NY.
The scope included enclosing eight, 100-foot digester tanks with substrate framing, insulation and stainless steel cladding; installing the roofs on various sewage processing and administration buildings; and constructing overhead pedestrian walkways that connect the stair towers, elevators, and digester tanks. The original principal voluntarily defaulted early in the process after filing for bankruptcy.
As a result of the default, the subcontractor’s surety hired GREYHAWK to provide consulting services. GREYHAWK assessed the feasibility of completing the contract using the remaining contract funds, and our staff developed a plan to complete the project with a new entity consisting of former employees of the defaulted principal.
During the completion process, GREYHAWK monitored the project’s finances, progress, and change orders; we also received and disbursed all payments via an escrow account to the various vendors, subcontractors, and completing contractor. Additionally, GREYHAWK provided on-site review and assessment of the construction to monitor job progress and participated in meetings to resolve ongoing issues as required.
- The entire treatment plant construction will cost more than $3 billion when it is completed.
- When fully operational, this facility will be the largest sewage treatment facility in New York City’s sewage treatment system, processing 310 million gallons of wastewater per day.
- The completion plan created by the surety, surety counsel and GREYHAWK was implemented by GREYHAWK and has allowed the surety to contain all of the completion costs within the original contract value.
- It is anticipated that the surety will ultimately recover all of its costs, including prior payment bond claim payment from the available project funds.
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