Case Studies / Insurance-Surety

Expert Analysis

Downstate Correction Facility

Fishkill, New York

Client: U.S. Insurance Group Morristown, New Jersey
Contact: Roger P. Goodnough Hart & Hurne
Construction Cost: $6,500,000
Construction Completion Date: 1980

FishkillThe 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.

The project involved a double contract default when the suppliers of the prison kitchen equipment went into bankruptcy. Time was pressing. Prison occupancy was a critical need. Another default meant further delays.

The surety bond was called in to complete the construction. The bonding company, U.S. Insurance Group, retained DiGeronimo PC to produce an initial status report and to provide follow-up construction management services.

In the report, DiGeronimo PC recommended that construction completion be reassigned to a second general contractor. Need for prison space was so critical that prison occupancy began before construction was finalized. The partially occupied prison continued to operate as construction work progressed. Construction was completed in 1980.