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Roofing Contractor Bond Default
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MKV is a Fire Science and Safety Expert, Fire and Explosion Investigator, Forensic Investigation and Analysis with world-class expertise in fire suppression, occurrence and cause fire investigation, fire and explosion investigation, forensic fire science evidence collection and preservation, fire science, arson investigation, and fire protection
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This case was one of a Roofing Contractor Bond Default, and was one of 6 contracts that had gone into default (same bonding co.)
One of the very difficult conditions this consultant faced in accessing this case was that the Roofing Contractor owner had been diagnosed with an advanced and very aggressive form of cancer and lived only a short time after this consultant was involved in the default recovery in the case. The owner's death unfortunately made access to some other pertinent company records, very difficult, if not impossible.
While while no conclusive determination was made concering the "shrinkage loss" materials, it is suspected that it may have been a result of some of the "abandoned" employees of the defaulted roofing company, trying to recoup some of their lost wages by taking and then selling these items.
Through some careful negotiations with familiar suppliers, and the effectiveness of the replacement Roofing Contractor, this consultant was as able to establish contract finish costs that were "reasonably" close to the value of the Phase 2 work in the original contract amount.
When the Phase 2 roof work was completed, an analysis showed that it was approximately $ 32,000 over budget, out of a $ 300,000.00 schedule of values line item for Phase II.
Following are some of the details of the case, as described by this consultant:
Considering that the Phase-1 roof area was completed in 2000, and considering the time lag between the completion of the Phase-1 roofing and the start date for the Phase-2 roofing I believe that as the subject materials can be easily transported, it would seem to me that it would be highly unlikely that a sub contractor would leave left over materials of this nature on site for future use, nor would it (sub-contractor) have ordered materials ahead for "future" use considering the time line between Phase 1 & II
In the course of this review, I have contacted a replacement roofing contactor and made inquiry as to materials as may have been purchased by the original contractor for the Phase-1 roof work. I have followed this up with several phone calls, but to date I have not received any information considering the situation, and with the lack of payment to original roofing contractor, I probably will not either. There is at issue a fairly large overdue account balance of some $ 28,000.00 at this time, which the bonding company will have to satisfy before the final project close out, in order to obtain a final material bond release from the vendor.
In consideration of the above situation, I have limited this review to just the contract Phase-2 roofing area.
During the course of this review, I revisited M.G& S. in Baltimore, and again went over all the invoices attributed to the elementary school with Mr. H who as a matter of information is the Operations General Manager for M.G.&S. During our meeting I was able to confirm that the invoices that were shown attributable to the original roofing contractor, at H.B. Elementary were in fact those as referenced by the $ 102,000 figure. I am satisfied that this material was shipped by (MGS) and as reflected by the invoices, additionally I am also satisfied that the invoices to attributed to A.O. Roofing Co. are correct as well.
The figures for materials from M.G.& S, Inc. are:
TO:
R.D. Roofing $ 102,268.54
A.O. Roofing $ 56,382.80
Total materials from (MGSI) $ 158,651.34
After ascertaining that the afore listed information was correct I contacted an Independent and uninvolved roofing material vendor, here in my area. I spoke with the commercial sales / estimator. He advised me that I should use the figure of 25lb's of asphalt per square, per ply as a base to estimate quantities, and to figure a roll of GAF 45 ply 6, at 5 squares of coverage per roll installed.
I then rechecked the roof areas for Phase-2, which measured up to be about 42,100 square feet, (approximately) plus the turn-ups for a figure of 460 squares. Please note that although this is a 4-ply roof system, there are actually really six (6) coats of hot moped asphalt and 1 flood coat for the stone ballast. As a note, during the course of my site visit, and in a conversations with Mr. Bragshaw, he commented as to the fact that S.B. Construction had expressed concern at the heavy application of hot mopped asphalt being installed by the A.O. roofers.
Based on the square footage and formulas above I have come up with a theoretical requirement of 1150 to 1160 kegs of asphalt and a requirement of 370 rolls of felt (GAF45 ply 6)
To date the following material has been shipped to the site by (MGS) for:
R.D. Roofing: 369 rolls of felt and 612 kegs of asphalt
A.O. Roofing: 125 rolls of felt and 1152 kegs of asphalt
Sub totals: 494rolls of felt, and 1764 kegs of asphalt
Theoretical requirement: 370 rolls of felt, and 1160 kegs of asphalt
Overage, above theoretical: + 124 rolls of felt, and + 604 kegs of asphalt
I cannot account for the disproportionate deviation except to think that perhaps a person or persons unknown surreptitiously removed previously stored material from the site, and considering the somewhat sheltered and remote location of this school and the several entrances and exists, and the fact that there is at least a sixteen (16) day gap between the last delivery to R.D. Roofing and the 1st delivery to A.O. Roofing it is not unthinkable that a person or persons unknown could have easily surreptitiously removed material from this sight (un-noticed) and sans payment.
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Kevin Kennedy & Associates, Inc.
Rapid Response Engineering® Solutions
3905 Vincennes Road, Suite 320
Indianapolis, Indiana 46268
(317) 536-7000 voice
(317) 536-7220 fax