SURETY DEFAULT RESOLUTION


New 40,000 seat football stadium for major university required mechanical engineer to conduct evaluation of fire sprinkler system installation.

Areas of expertise include mechanical engineering, contract specification and project documentation analysis, review and planning.

Scenario

A major urban university new football stadium is under construction with a well-publicized opening date approximately three months in the future. One of the critical subcontractors involved in the construction of the stadium defaults on their work, and the subcontract is terminated by the at-risk general contractor for failure to complete the work in compliance with the project subcontract, specifications and schedule. The general contractor has significant potential liquidated damages looming from failure to complete the project on time, and maintains that most if not all of the work installed by the terminated subcontractor is defective or non-compliant. ProNet Group was retained to evaluate the completed work of the subcontractor in order to determine the value and percentage of work completed on the target date, the value and percentage of work completed that complied with the project specifications and subcontract requirements, and the value of materials remaining on the construction site that complied with the project specifications and were useable on the project.

Additional Information

The alleged deficient work or materials included undersized pumps and motors, incorporation of various constituent components from unapproved manufacturers into the project, and incorrect field installation work that was not in compliance with either the project contract documents and/or project specifications, and applicable NFPA requirements.

Outcome

ProNet’s team was able to identify and value the project work in place that complied with the project contract specifications requirements and work in place that did not comply with those requirements and the reason for non-compliance. In addition, ProNet provided a dollar value estimate of the cost to remediate all non-compliant work as well as work not completed on the project at the target date.