I need help! I got this water cleanup job and .........

Bubba

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Jan 11, 2011
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Danny Stricklan
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I got your attention. I really do need your expertise in this question.

I got a call from local realtor and a home had 75,0000 gallon go thru it in a months time while the homeowner is serving our country. The realtor called the homeowner and both parties contacted me for water removal and wet shhetrock demo. (this is my second job in biz). I have been a GC for 10 years and got some good contracts signed by homeowner so we begin the job. I met with the adjuster and he stated the claim would be covered no problem. I have the water cleanup contract signed and also did a take off for the adjuster for all repairs since I am licensed in all area of constuction. The adjuster said my bid looks great! So what is my problem.

1st. After all these hours put into the bidding of reconstruction does the homeowner have the option to. Hire another contractor and leave me doing all the leg work?

2nd. I have read post about non payment to folks. Does the insurance company not put our company name on the check also. .....?

Hey guys I appreciate your help and hopefully this will turn out for us if not I will keep you all posted. Thanks in advance for helping and if you want to critize me go ahead I'm a hillbilly.


Bubba
 

mike

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Dec 15, 2008
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Michael McFarlane
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Question #1
yes they can go with anyone they want and leave you out to dry
Question#2
sometimes they put your companys name and sometimes they don't . Sometimes they will send you the check and sometimes they'll send it to the home owner

good luck
 

Nick P

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Sep 30, 2008
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I wouldn't go any further until you talk with the adjuster.
Question him on who's name will the check be paid to.
Also make sure you get something signed or some sort
of confirmation from the home owner.
Good Luck!
Nick
 

Prouddadx6

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Jan 4, 2010
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Keith Wroblewski
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It sounds like a very large job that might need to be done in stages. You can ask the adjuster to pay you directly in stages since the job may take a wile. You can request a direct pay but when it is a large job they may want to send it to the mortgage company also. I would shoot for being paid in stages. Record and document everything and before and after pages for each stage. Once the owner signs a work authorization you should be good to go. Best of luck
 

Scott W

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Feb 14, 2006
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If there is a price on the legwork you have done, then you should get paid for that no matter what the process is beyond this time. But if you did not put a price on the work you did, it could be considered like a "free" estimate for carpet cleaning. They decide to take it or not.

When you go to a hospital, one of the forms you sign gives permission for your insurance to pay the hospital directly. Your paper work should do the same for the work you are doing. If there is a lien holder (mortgage company) they may not be able to sign over authority to pay you directly. However, you can still get your name on the check along with the mortgage company and the home-owner.

I whole-heartedly agree with being paid by draws. Maybe partial payment after 25%, 50% and 75% of the work is completed. Then if you do get stuck, it will not be for the full amount. When contracting I was sure to take a draw if the price got above $5,000.
 

SCrosby

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Dec 6, 2008
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Stephen Crosby
If the mortgage company's name is on the check and the homeowner is behind on payments, guess what, the mortgage co. can hold back what they are owed in missed payments. I haven't had this happen to me personally, but a good friend of mine owns a large restoration co. and over the past two years he has had to write off over 100K in lost revenue due to homeowners being behind on mortgage payments. I guess there are legal ways to go after the homeowner for this money but I see it as a lost cause.
 

rjfdube

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Dec 18, 2008
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In my experience; Take only jobs where the insurance company pays all bills for all services directly to you related to the customers property; It is called "PAY IN LIEU" Waiver; It basically relieves all responsibility except financial cost to the insurance company for returning property to an acceptable condition or as before loss condition; Basically it is an agreement between Homeowner, Restoration Company, and Insurance company; It also puts a guarantee to insurance company and home owner in quality of work. A good thing about this contract for the custy is it puts the HIGH deductable on the Backs of the Restoration company Provided the lost recovery generates acceptable profit limits for restoration company. Basically it acts as a whip to crack on restoration company because time means money. I have been out of restoration field for more than 20 years; I am sure the here and now Serv Pro, Paul Davis, And others will be better versed on this and with more up to date information.

My crew when I was doing this for a National chain many years ago was known for quick and money saving fast completion. Just my 2 cents; Time for another Margarita!!!
 

john mathis

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Feb 2, 2010
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I would suggest you break your bill up into appropiate catergories, billed for emergency services (which includes your demo)1st, then estimate and bill for the build back. Insurance companies understand this better and they are more likely to pay for the emergency services with no question. the build back will be construction and will be paid in thirds, but you left off the contents part thats a whole differant part of the insurance policy and worth a lot of money. I would also suggest you use a good estimating program (bluebook,symbility,xactimate) if you have any question feel free to give me a call 1-888-wetout 1
 

MikeRest

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Feb 1, 2011
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Mike Moorhead
You should pull off of the job and let someone who understands psycrometry and water drying physics handle the loss. You will more than likely assume that you know what you are doing and proceed to damage a serviceman's home for a quick buck.

Nobody should ever manage a water loss without proper experience, guidance and certifications. If you do not have any of these, stick to carpets. You will ruin homes, create mold problems, create billing issues for the insured and ultimately be held legally responsible for all or any of these scenarios.

This applies to you general contractors out there as well. There is a LOT more to this side of the industry than you think. Trust me.