Case Studies

Insurance/Surety

Longcrier Construction Company

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.


Hotel

This hotel project involved the bankruptcy of the owner/developer/architect/ contractor. These four entities were combined as one group running the development organization. The hotel is designed to permit private aircraft to fly in and taxi to a tie-down spot adjacent to Montgomery Field, a small airport in San Diego County.


Methane Gas Reclamation Building

Contractor default left this 35,000 square foot facility in Stamford, CT, in a partially completed state. Although the design was simple, the engineering was complex. This Methane Gas Reclamation building was built in conjunction with a solid-waste/refuse landfill. Reclamation was required to capture and contain the methane gas produced by decomposing matter in the landfill.

Notified of the contractual bankruptcy, Crum & Foster, Surety on the project, hired DiGeronimo PC to put together the necessary scope of work to complete the project and manage the construction. Work for completion of construction was competitively bid to a selected list of contractors. The new low-bid general contractor completed the work was completed April 1988.


Downstate Correction Facility

The Downstate Correctional Facility was completed in 1980 at a construction cost of $6.5 million, but only after the general contractor and later, a subcontractor, had defaulted on the partially completed construction.


Power City

Kemper Insurance Company asked DiGeronimo PC to conduct a prudency audit of Power City, a high-power electrical contracting firm. A prudency audit is an evaluation of the contractor’s capability to support additional bonding capacity.

Power City's primary business is cross-country high-power electric service. Power City had three contracts totaling $57 million bonded by Kemper Insurance Company. The three contracts encompassed high-power electric lines being laid for utility companies in San Diego County, California; Portland, Oregon; and Seattle, Washington. A majority of the construction sites were in remote, heavy terrain accessible only by helicopter.

DiGeronimo PC evaluated the construction progress of these projects, investigated the financial stability of Power City, and established a management profile to determine whether there was justification to increase the bonding capacity to Power City by Kemper Insurance. The report was favorable and Power City’s bonding capacity was increased.


Million Air Terminal, Teterboro Airport

We created a comfortable, upscale airport terminal for traveling executives and their private pilots. Our design includes private lounges for the pilots, who frequently experience day-long layovers while traveling executives attend meetings. The terminal provides an informal, friendly and accommodating check-in area with lounge amenities and light refreshments. This stress-free atmosphere created through our architectural and interior design provided attractive options and enhanced the terminal features for private jet-set clients.



Financial

Construction Safety Practices

The bank can be sued as a party to unsafe workplace conditions if a construction worker is injured or dies. The bank’s representative visits the site to see if further money can be advanced to the contractor. The construction contractor (recipient of the loan proceeds) is placing the bank (provider of the loan) in a situation where the is a potential liability resulting from unsafe construction practices. Nevertheless, a bank requires assurance that the money loaned is actually being invested into the construction, an assurance that requires a bank representative to visit the site.


Mediterranean Towers North

DiGeronimo PC has been secured to perform contract administration services for the Mediterranean Towers North Capital Improvements project.

These improvements include:

  • Roof Replacement
  • Negative Air Remediation/Boiler Room Combustion Air
  • Boiler Valve and Heat Exchange Replacement/First Floor Lobby and Vestibule Air Handling Unit Re-Design
  • Fire Alarm/Safety System
  • Lobby Level Space Planning and Design Alternatives
  • Storage Building Acquisition Erection
  • Apartment Window and Terrace Door Replacement
  • Underground Oil Tank Removal/Soil Remediation
  • Driveway and Parking Area Re-Surfacing and Curb Replacement
  • Management Office Renovation and Refurbishment


Legal

Municipal Building

The original architecture firm provided architectural and structural engineering services for the design of a Municipal Building. Portions of the building began to collapse after a period of time, and were subsequently condemned, causing the relocation of the entire municipal staff and operations and significant political repercussions in the community.

Investigation

The municipality hired DiGeronimo PC to investigate. DiGeronimo's report determined that the architect had significantly undersized the structure, failed to provide proper structural bracing, and failed to properly administrate construction. Because the original architect did not engage a structural engineer, DiGeronimo PC determined that the architect was solely responsible for the inadequate structural design.

Result

The Board of Arbitrators found the conduct of the architect abusive and grossly negligent. Award went to the municipality.


Public Housing

An owner-developer engaged an architect to design a public housing facility. The owner-developer sued the architect for delays alleging the architect design documents required a significant number of clarifications to the construction contractor, thus delaying the facility's opening.

Investigation

The DiGeronimo Investigation, looked for but, could not find any evidence of the transfer of monies to the contractor that would indicate delays had occurred.

The DiGeronimo Investigation determined that the two parties, consisting of the contractor and the owner-developer, arranged to fabricate a malpractice claim against the architect.

The DiGeronimo Investigation found that the alleged expenses and monetary claim sought by the owner-developer was fabricated, as there was no accountable evidence of money being paid out by the owner-developer.

Result

The arbitration was dismissed.


High-Rise Office Building

A developer engaged an architect to design a high-rise office building. The architect completed the design and the design documents. The developer severed the relationship with the architect and constructed the high-rise office building without the assistance of the design architect, the architect of record, and made numerous changes to the design.

At the conclusion of construction, the Developer re-engaged the architect to sign-off on the completion of construction. The architect agreed to do so as an accommodation for the sole purpose of receiving more work in the future from the developer.

Within one year after construction completion, portions of the exterior walls disengaged from the super structure and fell off the building.

Investigation

The DiGeronimo Investigation determined the architect, in accepting the responsibility to sign off on a close out the project, failed to thoroughly familiarize himself with the changes that occurred during construction.

Result

As a result of The DiGeronimo Investigation and Expert Testimony, the court determined the architect shared in the liability of the building failure.


Religious Community Retirement Home

A Religious Community hired an architect to design a retirement home for the elderly women in the religious order, focusing on specialized care for elderly with Alzheimer’s and dementia.

The architect’s design for the new facility did not meet accessibility standards for a retirement home. The design presented obstructions, preventing wheelchair access in some areas and limiting access for residents with mobility impairments.

Investigation

DiGeronimo PC’s analyzed the architect’s design, demonstrating the shortcomings of the plans, which limited residents’ access to the main program area.

Result

DiGeronimo PC prepared an exhibit illustrating the minimum design elements and required to meet the owner’s requirements to provide reasonable Standard of Care and accessibility for residents. which were missing from the architects design.

The Arbitration Board found in favor of the Religious Community.


Multiphase Residential Project

An owner-developer engaged an architect to design a multi-phase residential complex. The architect provided both architectural and planning services to assist the owner-developer throughout the process.

Part of the architect's responsibilities was to administer construction and to monitor the project's progress in three phases.

When the project proceeded in to Phase Two it was stopped by the municipality, causing significant hardship to the owner-developer and to the contractor.

Investigation

DiGeronimo PC's investigation determined that the municipality, through its Planning Board approval, placed a contingency on the development by stipulating that Phase Two of the project could not start until Phase One received a Temporary Certificate of Occupancy.

The fact that the architect knew of this contingency and was in fact personally involved as planner in the municipal Planning Board approval process, revealed that the architect should have advised the owner-developer and the contractor BEFORE approving Phase Two for construction.

Because the architect knew of this contingency and was personally involved as planner on the municipal Planning Board during the approval process, DiGeronimo PC found that the architect should have advised the owner-developer and the contractor BEFORE approving Phase Two for construction.

 

Results

DiGeronimo PC presented the facts as part of litigation testimony to court. The court awarded the claim for damages and delays in favor of the owner-developer.


Large Pharmaceutical

A large pharmaceutical firm engaged an architect to design a multimillion-dollar renovation of their manufacturing facility. When this architect completed construction documents, the pharmaceutical firm engaged a construction management firm, headed by another architect, to oversee completion of construction.

The completed renovation deviated significantly from the construction documents. The client was unable to determine whether the original architect or the construction management firm managed by the second architect was responsible for the deviation. An incomplete set of construction documents was identified as the alleged cause for the discrepancy.

Investigation

The firm hired DiGeronimo PC to investigate whether the original construction documents were incomplete or the construction management firm was negligent. Investigation determined that the original architect's drawings were deficient and required significant clarification. However, the construction management firm intimidated and overpowered the original architect, who was the architect of record, so that corrective measures were difficult to achieve.

The absence of the original architect from the construction phase caused the architect who headed the construction management firm to act in the capacity of an architect of record during construction, complicating the investigative analysis to determine the roles and responsibilities of each design professional.

DiGeronimo PC determined that the original architect failed to perform his duties as an architect of record. By accepting the role of architect of record during construction, the second architect failed in his performance as well.

Result

A second party contractor eventually completed the project. The large pharmaceutical firm received settlements from both the original architect, as architect of record and from the second architect, who acted as the construction manager.