Claims Analysis

Longcrier Construction Company

Dallas, Texas

Client: Fireman’s Fund Philadelphia, PA
Construction Cost: $55,000,000
Construction Completion Date: 1987

Longcrier Construction Company filed for bankruptcy, leaving $90 million in construction completion work, secured by bonds through Fireman’s Fund Insurance Company. Located throughout the State of Texas the uncompleted projects included a 75,000-square-foot office building in Addison, a 250-unit apartment complex in Dallas, an 85,000-square-foot office building in San Antonio, a 150-unit one- and two-story condominium project in LaMesa, a 150-unit hotel in El Paso, and a 150-unit condominium complex in Dallas.

Fireman’s Fund hired DiGeronimo PC to perform a claims analysis investigation of these partially completed projects. Each site was visited by DiGeronimo PC which determined the guarantee and warranty position of each of the construction project sites and prepared a report which determined the amount of liability that could be assessed to the bonding company.

Subsequently, Fireman’s Fund hired DiGeronimo PC to establish on-site field offices to monitor the construction completion progress on each of the projects. Each field office was staffed by law enforcement personnel experienced in construction projects. DiGeronimo PC’s team monitored the materials and labor necessary to complete construction, to assure Surety that dollars spent were being channeled through to completion of the project.

After evaluating Longcrier’s bankruptcy status, Surety decided it was in Fireman's Fund's best interest to continue with the Longcrier to complete the projects.