$500K Project Recovery and Management Take-Over

Overview

Washington roofing contractor was awarded a $500K contract to re-roof 160,000 SF of a community college in eastern Washington. All capital improvement projects for colleges in the state of Washington are governed by one state agency; Department of Enterprise Services. Therefore the state is the contract administrator, not the individual college. Furthermore all of the performance and payment bonds are with the state as well.

Problem

The roofing contractor was only partially done, and the quality of the completed portion was suspect. In early fall, with only 25% complete, the roofing contractor abandoned the project. Hence the surety was obligated to complete the project, as well as ensure that all of the materials and labor were paid.

Solution

Hartman Strong Hartman was contracted by the surety to complete the work as well as ensure that all liabilities were paid in full. That fall, we were able to provide provisional waterproofing techniques that would last through the winter, and in early spring we developed a revised scope of work, inclusive of all repairs of the previously defective work, and re-bid the work for the next summer season. Once that value of the work was known, then we worked with the state of Washington Attorney General’s office to develop a new contract, known as a Take Over Agreement, which obligated the surety for all costs above and beyond the remaining funds original contract value. The work was completed, the college received their 10-year warrantee, and the surety satisfied all financial liabilities.