It has been our experience that with the advent of public bidding regulations there has been an influx of contractors who submit financially irresponsible bids for work. Owners are highly interested in maximizing their margins due to the ever-rising costs to complete construction projects. As a result, it has become common place to see the low bid contractor selected for projects which they cannot possibly complete. CAG provides oversight and periodic reviews to recognize problems early in the construction process and this translates into less expenditures by the insurer caused by faulty contracting over a period of time.
Construction Advisory Group provides institutions with experienced professionals to monitor bonded construction projects with the expertise required to navigate the construction world and limit claims against the payment bond. Our hands-on, practical, approach to on-site inspections greatly assists in reducing the exposure to claims due to poor contractor performance.
Budget and Pro-forma information dictate money allocations and associated costs on projects. Our team monitors the finanical aspect of the projects at the institutions request to determine if contractors are performing in accordance with their commitments. Our personnel will complete a forensic analysis of the project by review of the budget, pro-forma and requisitions. We will ensure that payments to subcontractors by the bonded contractor are made in an effort to limit claims against the payment bond.
Owners are highly interested in maximizing their margins due to the ever-rising costs to complete construction projects. As a result, it has become common place to see the low bid contractor selected for projects which they cannot possibly complete. The Owner believes that even if the contractor cannot complete the work, then the insurance companies must make good on the final product. This puts the insurance company at a big disadvantage because it has been the norm for the insurance company to wait until the problems are unmanageable and the contractor has been declared in default before getting involved with the construction project management. At this point it is too late and the financial costs are very high to remediate the work.
In the event that projects have not been successfully completed, CAG can provide assistance with a single closeout contractor to remediate and complete defaulted projects. With our experience and our proven track record in successfully completing construction projects, we can provide the project management and the labor necessary to finish your bonded projects in an efficient and cost effective manner. We employ our own contractors, construction managers, engineers, architects, and financial professionals to provide a construction team to complete your outstanding projects with the goal of releasing your surety bonds.