Beacon specializes in evaluating and reorganizing troubled construction projects for the surety industry. Beacon’s surety industry services include:
- Project Assessment / Cost to Complete Analysis
- Project Monitoring / Funds Control
- Project Re-lets / Ratification of Subcontractors and Vendors
- Construction Completion Management
- Payment Bond Claim Review and Analysis
- Fidelity Bond Claim Analysis
- Change Order / Claim Preparation and Negotiation
Project Assessment / Cost to Complete Analysis
The decisions that sureties face are often complex, and proper due diligence is critical for the surety to make informed decisions. Upon notice of a troubled project, Beacon can efficiently assess its status. The assessment includes:
- Reviewing subcontractor / vendor scope and accounting information
- Reviewing the contract balance
- Reviewing approved and pending change orders
- Determining and estimating costs for the remaining buyout items
- Reviewing the management team and general conditions costs
- Reviewing the project schedule
- Reviewing current project issues
Beacon's standard cost to complete analysis provides a consistent and efficient work product for the client.
In the event that a principal is given notice of default by an obligee, Beacon can provide all necessary due diligence to enable the surety to evaluate its options.
Due to the experience of our staff, Beacon understands the process and information required to protect the surety’s interest, while turning around troubled projects.
Project Monitoring / Funds Control
In the event that a surety decides to monitor the performance of a principal or completion contractor, Beacon can set up a customized monitoring program to address the surety’s concern. Our monitoring program is based upon the parameters set forth by the client, including the depth of the monitoring. With these parameters completely understood, Beacon can keep the client abreast of each project’s schedule, cash flow requirements, liquidated damage potential, accounting, change order requests and basic documentation control. We make clear recommendations for improvement and detail all exposure.
If the surety decides to finance the principal or the completion contractor, Beacon can establish a funds control protocol to acutely monitor the flow of money on the project. Our funds control protocol includes monitoring incoming funds, including those from the owner and the surety, completion costs, overhead costs and cash flow projections.
Project Re-lets / Ratification of Subcontractors and Vendors
Beacon’s staff understands that a complete and concise bid package is essential to mitigate the completion costs of a project. Upon the client’s request, Beacon can step into any situation and prepare all necessary re-let materials. Our typical re-let procedure includes conducting a thorough review of all project conditions and documents to develop accurate as-builts. Under certain situations, we may also meet with the subcontractors/vendors to ratify their contracts and contain costs. In addition to carefully preparing the bid package and ratifying subcontractors/vendors, Beacon will solicit qualified contractors to submit proposals to complete the work. A properly prepared bid package and contractor qualification provides the surety with the most competitive completion price and can mitigate future latent or patent claims.
Construction Completion Management
Depending upon the surety’s objective, Beacon offers several options for managing the completion of a project. We can function as:
- Construction manager / agent to the surety, who directly passes through all subcontractor/vendor costs to the surety
- Supplemental project team members, which include project managers, superintendents, accountants, change order clerks and schedulers
In the event that General Contracting services are required, Beacon Consulting Group, Inc.'s sister company "Beacon Merchant Construction, Inc." does provide these services.
Payment Bond Claim Review and Analysis
When a subcontractor or supplier on a project submits a payment bond claim, Beacon evaluates the claim by reviewing all relevant project documentation and interfacing with all necessary parties. Beacon is knowledgeable of the protocol for payment bond claim submissions, especially the time limits. Beacon expeditiously reviews these claims in efforts to mitigate all damages to the surety.
Fidelity Bond Claim Review and Analysis
Beacon performs Fidelity Bond Claim assessments to determine the extent of potential financial exposure on issues involving embezzlement, misappropriation of funds, and employee theft. Beacon’s Fidelity Bond Claim services include verification of claims, fraud investigation, and litigation support as necessary. Our expertise in project accounting and construction/real estate, coupled with our experience in financial litigation equip us to mitigate the financial exposure on these matters.
Change Order / Claim Preparation and Negotiation
Within most troubled projects, there are usually several extra and/or disputed work issues. Beacon’s team of professionals efficiently organizes the change order process, including the evaluation of approved change orders, pending change orders and disputed items. Beacon’s estimating team can assist in evaluating the merit of pending change orders and prepare proper submissions to the owners. Beacon is experienced with the public owner’s protocol in the submission of change orders and claims, including certain time frames that must be adhered to.