Subcontractor Default Insurance Claims
Subcontractor defaults, including cost overruns, project delays, acceleration and owner claims, can create multiple obstacles for general contractors and threaten a project’s financial outcome. Subcontractor Default Insurance (SDI) can help recover default costs, but quantifying and documenting losses can create challenges that limit or delay financial recovery. Imperium can help.
Imperium’s Experience in Subcontractor Default Insurance
Imperium's team of construction experts has a wealth of experience in insurance claims, construction contract claims and project auditing. With more than 20 years of experience in SDI claims, our engineers, forensic schedulers and CPAs understand how to successfully quantify, present and close out an SDI loss. We have worked on several of the largest and most complex SDI claims, helping achieve successful resolutions without protracted disagreements about the loss.
What Makes Imperium’s SDI Consulting Unique
Our professionals have testified as expert witnesses on SDI losses, other insurance claims and construction contract claims involved in litigation. Our focus on both insurance and contract losses in construction is a differentiator because successful SDI claims follow both subcontract requirements and policy coverage. Our approach is customized for clients, designed to align with the way our clients manage their projects, and tailored to meet the expectations of insurance carriers.
Streamlining Recovery from Subcontractor Defaults
A subcontractor default can create financial exposure that general contractors must address. The costs resulting from default can include replacement contractors, rework and repairs, supplemental labor and equipment, added supervision, third-party/other subcontractor claims and delays, owner costs and potential liquidated damages. SDI claim costs often exceed 2X or more the subcontract value. Imperium understands these costs and how to document and present them to meet insurance company expectations.
Imperium’s Approach to Subcontractor Default Insurance
At Imperium, we are committed to helping you navigate the complexities of SDI claims and expedite the recovery of both direct and indirect costs. Our seasoned experts bring their knowledge of construction, insurance and contracts to satisfy claim documentation requirements and maximize your financial recovery. When facing subcontractor defaults, trust Imperium to be your partner in achieving a successful resolution.
Our Subcontractor Default Insurance Services
Our team of subcontractor default insurance professionals implement project-level procedures to meticulously document default costs. We also reconcile the available subcontract balance, separate default costs from the base contract and non-default scope of work and thoroughly document replacement contractor and vendor costs. Additionally, Imperium reconciles owner changes and, if applicable, other insurance claims such as builder’s risk claims from the SDI claim.
The Imperium team quantifies delay costs using forensic schedule analysis of the critical path to support time element impacts and indirect costs resulting from the default. We also quantify added and extended general conditions costs, including corroborative documentation.
We assist in expediting the loss recovery through proactive communication with the carrier’s team during the review, adjustment and payment process. The Imperium subcontractor default insurance claims team also assists the insured in maintaining its focus on the project versus the claim while working with the carrier to provide a professionally documented loss, ready for subrogation if needed.
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