On August 1, 2014, the City and Crusader Contracting, Inc. (“Crusader”), entered into a written contract for Demolition Services and Site Reconstruction Services on the project commonly known as the Round Building pursuant to RFP14-0239 (“Project”).  In connection with the Contract, Capital Indemnity Corporation, as Surety, issued a Contract Performance and Payment Bond on behalf of Crusader Contracting, Inc., as principal; and in favor of the City as Obligee. The City issued a letter of termination to Crusader on March 17, 2015, and called upon the Surety to perform its obligations under the Performance Bond.

In an effort to mitigate damages, the Surety sent out a Project Completion Package to solicit bids from local contractors for the completion of the Project.  The bid determined the most responsive and responsible bid was submitted by Pece of Mind Environmental (“Completing Contractor”) and the Surety has tendered its Bid Cover Letter and Form of Proposal to the City.  Under the Performance Bond and Project Completion Package, the City will enter into a new contractual agreement with the Completing Contractor for the completion of all work to be performed.  The Completing Contractor will warrant all work and will provide a new payment and performance bond to the City for the performance of work under the Completion Contract.

The Surety has agreed to render payment to the City in the amount of $663,894.66 as a settlement for all claims against the original Performance Bond furnished by the Surety. In exchange for the payment, the Surety has requested the City to execute the attached Tender and Release Agreement which provides for a release and settlement of all claims between the City and Capital Indemnity Corporation.

Following execution of this Agreement, the City will contract with the new Completing Contractor to arrange for the performance of the scope of work remaining to be performed on the Project.  The Completing Contractor will perform in accordance with the terms and conditions of their Construction Contractor, including but not limited to providing insurance and indemnification.