The Client and Its Challenge
A large, international surety company provided the contract bonds for the $30 million renovation of a 200,000 square foot retail center. Seven months from completion, the project was 60 percent complete, on time, and on budget. Without warning, the general contractor filed for bankruptcy protection. The project quickly came to a halt when the unpaid subcontractors ceased work and walked off the job site. Determined to keep the project on target, the client required a technical assessment of the project as well as project administration services to supplement the project team.

The Risk Consulting Solution
Initially, the client required an assessment of the project and recommendations to achieve project completion. After reviewing the estimate-to-complete, budget status, and current project schedule, Marsh consultants were able to determine that the contractor was performing quality work and could complete the project with support from the client. Rather than re-bid the contract and face a delay in completion, Marsh suggested that the client provide a quick infusion of funding to the contractor.

Marsh consultants provided technical monitoring assistance through master project scheduling that included a staged occupancy plan and an accelerated construction schedule with defined milestones. As part of the project management oversight provided by Marsh, all project payments to subcontractors and suppliers were reviewed and tracked, as well as all change orders. Progress meetings were held weekly and reports prepared to routinely advise the client of the current project status.

Results
The infusion of capital by the client and commitments to the major subcontractors for payment of completed and future work, allowed the subcontractors to resume work. The prompt action taken by the client and Marsh consultants created a seamless transition undetectable to those who were unaware of the bankruptcy and allowed the project to maintain its momentum by supplementing the existing team of construction professionals. Marsh completed the initial assessment in two weeks and provided onsite monitoring two days a week for the remainder of the project.