A mid-size building prime contractor in Georgia and Alabama has defaulted and requested help from its surety.
Columbus, Ga.-based D. Dean & Associates Inc. also had an office in Birmingham. Founder and President Danny Dean could not be reached for comment, but his company has apparently run into financial problems.
According to a version of a takeover agreement with the Alabama Public School Authority, the Shelby County Board of Education and surety Ohio Casualty Insurance Co., D. Dean & Associates had completed two-thirds of its work on a $3-million classroom addition and cafeteria project at Pelham High School.
With an original $2.979 million contract and $1.757 million in payments made to the contractor for completed work, the project had a work balance of $1.222 million remaining.
The action came after the school authority declared D. Dean & Associates to be in default.
D. Dean & Associates ranked 132nd on ENR Southeast’s Top Contractors list in 2010, with $23.99 million in revenue.
The Pelham High School project was listed on D. Dean’s website as scheduled for completion in Spring 2011.
According to the takeover agreement, the surety will guarantee that the project is completed by Aug. 1. It isn’t clear yet whether Ohio Casualty will use D. Dean & Associates to fulfill the contract or choose another firm.
In addition to officials of D. Dean and Associates, the school authority and other parties involved in the default could not be reached for comment.
Another project where D. Dean was at work, the Newnan Convention Center, an events and conference center in Newnan, Ga., also apparently must be completed by the surety. According to media reports, Danny Dean in April notified Ohio Casualty officials of his company’s financial distress. He reportedly stated that his company would go out of business without help from Ohio Casualty.
According to D. Dean’s website, Danny Dean started the company in 2009 after selling his interest in another contractor to a partner in 1999.