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Surety Consulting and Support
New Construction
$40,000,000
180,000 s.f.
GREYHAWK provided surety consulting services for a nursing home project – privately developed, but guaranteed by the U.S. Department of Housing and Urban Development as the dual obligee – that projected to be more than a year and a half behind schedule. In addition, the project contained significant amounts of defective or non-conforming structural, mechanical and architectural work, which exceeded five million dollars to correct.
Prior to the principal’s default, GREYHAWK served as an independent mediator between the principal and obligee, over a three week period, in an effort to resolve disputed change orders, delay claims, and liquidated damages asserted by both parties, so that work could continue with the surety overseeing the progress and financials of the project. Although the principal later refused to return to work and was ultimately default terminated, the mediation laid the foundation for the surety to enter into a takeover agreement with the obligee, and subsequently a completion contract with a general contractor to complete the project.
During the completion process, GREYHAWK provided daily on-site management and oversight of the construction to monitor job progress and correction of defective work. GREYHAWK reviewed, negotiated and recommended approval for subcontracts and extra work orders on the surety’s behalf, totaling more than $20 million of work. All completion costs were carefully tracked and documented to assist the surety in recovery from indemnitors, and to defend against disputed payment bond claims.
- The 280-bed, 700-room, facility is the largest nursing home built in the US over the past 5 years
- More than 40 payment bond claims from subcontractors and suppliers were resolved outright or in the ratification for completion process
- GREYHAWK managed multiple escrow accounts and disbursing payments on behalf of the surety during the project completion
- GREYHAWK professionals served as fact witnesses and expert witnesses during the continuing dispute and litigation process.
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