As many of us Pinellas County residents have become aware, that recently the contractor working on the Ulmerton Road project has basically gone belly up and cannot finish the project.
Conalvias USA, LLC gave notice to the City of Largo on January 15 that it was defaulting on the project. This came just months after their parent company who is based in Columbia who also impacted a Pan American Highway project in Panama.
Because the City of Largo had a surety bond for the project, their surety company has stepped up to the plate, obtained a new contractor and will finish the remaining $4 million worth of work left.
A few months ago we talked about the Value of a Surety Bond. Surety Bonds are a very specialized line of insurance that is created whenever one party guarantees the performance of an obligation by another party. This triangular approach ensures that all parties are protected, even if one of the parties defaults as in the case of the Ulmerton Road project.
Bottom line is that if you are engaged in a construction project of any kind (residential, commercial or municipal) make sure you protect your end-game with a surety bond.
This information is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. Should you have any questions or would like to discuss your risk exposure with your construction insurance, please contact the insurance pros at ARCW Insurance. We are here to help.