Historic Chrysler Plant Demolition Protected By Surety Bond

The demolition of structures and buildings always bring about risks. The main risk is the potential damage that can be done to public or private property. Although it is not decided yet, a large former stamping plant may either be partially or completely demolished in Ohio; it seems a surety bond fits the mold to protect this kind of work. Chrysler

“We don’t want anything left on the property that could be environmentally dangerous or cause any kind of damage”, said Councilor Maureen Stauffer.

The doom of the 2.2 million-square-foot building which used to be the Chrysler Stamping Plant has not been sealed yet, but should any demolition take place, city officials want to guarantee the job is done correctly. The city’s main concern is the possibility of infrastructure or land damage during the project; so new demolition rules were enacted on Feburary 22nd. The new rules require job prospects to have a thorough site plan, procedures in place to protect utilities, and have to provide notice of asbestos that must be removed following federal rules. Also, owners of buildings that are larger than 500-square-feet must obtain a $10,000 surety bond to cover any potential damage to city property such as sidewalks and waterlines before demolition can begin. If city regulations are followed, the surety bond payment will be refunded back to the owner of the building which is being demolished.

Officials in Fenton, Miss., told Finch that “a mess” was left behind after the demolition of a Chrysler plant in their city.

The new demolition bond requirement seems to be a great solution all around. The bond will help guarantee the project is completed correctly, and if it’s not the bond will cover any necessary reimbursement. But this doesn’t mean the building owner’s get off scot-free. Should there be any damages to city property a claim will go out on the bond which the surety company who wrote the bond will pay. Subsequently, the surety will go to the owner who purchased the bond for retribution.

On the bright side, if all goes well and as anticipated with the job, the work will be done without damages to public property according to the new regulations. With surety bonds in place, it guarantees the work will be done properly.

Decisions on the demolition of the building won’t be made until the end of 2011 but the bond requirement put in place seems like a great solution to protect the County.

Although sometimes it seems surety bonds just over complicate things, they are here to help and uphold the interests of the public.

Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

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