Transition into Flood Restoration

[Erik]

I just got back from a major water loss home. This apparently happened two days ago, but was just discovered today. The home had extensive damage from the first floor down to the basement. We do a lot of floods, if we can handle them. This one was a little out of my realm with the multiple layers of flooring. What would be an alternate plan versus walking away from the job? (Which I did) Would you recommend partnering with another flood restoration company or a construction company to take care of the things I can't? It kills me to leave money on the table.


(Michael Lockheart's question) "why you felt you had to walk and what you can do next time to make sure you can handle any size loss."

One reason I walked is because I don't have a Dri-Eaz Rescue Mat System. They had wood floors in the kitchen, they weren't buckled yet, but my moisture meter detected moisture under the floors. In the master bedroom, where the flood originated from a broken line on the toilet, they had Pergo Floors. They were already starting to buckle, so they would need to be removed. I have plenty of air-movers and dehumidifiers to take care of this job. But, my main concern is that there was already a smell of mold and my company is not setup to do the demolition and reconstruction in a timely manner to properly satisfy the customer. After working all day with the limited employees I have, it would be virtually impossible to start a job of this size immediately. Do you find temporary help when starting into the Flood Restoration Business since they only happen occasionally? The job could take 2 weeks to complete and requires a skilled construction crew. Do you sub out the reconstruction?

 

[Desk Jockey]

I'd find a restoration company that is willing to let you do the extraction and anything else you want to do. Construction companies think removal and replace is restoration.

Tell the you occasionally get jobs that are larger than your comfort level and see if they are receptive to working with you.

In the mean time get to Reets, Drieaz or Bolden's for training, in your part of the country there has to plenty of work in the winter to make it worth investing heavier in it. You're far too sharp a guy to pass on all that work when you can easily do it yourself.

 

[dealtimeman]

Erik

I have been in your position and understand your concerns. I ran into these type jobs early on when I first started and quickly realized that I would have to take on strategic partners that had different types of equipment, personnel or other systems in order to imitate a much larger company. Problem with this was the main question you will always have when working with partners and that is who and how can you trust them.

At first I found a medium size company that had a lot of specialized drying equipment( 500000 btu heaters, injetidry units, flir cameras etc.etc) but the company did not have but one truckmount to extract water rapidly. So I approached with a deal that would benefit both sides. I would provide them with extraction services when they needed at an established per hour rate and they would rent me the equipment I needed at a small percentage of what I would charge. As I did more jobs I purchased all of the equipment I needed and keep buying equipment move and more every day in order to be more prepared for any size or type of job we encounter.

As far as demolition goes, I have always found destroying something easy. You just need the correct tools to make your job easier. If you don't want to do demolition find a small remodeling contractor that will do the demolition with the intent of getting him to do the rebuild. You must find a competent contractor that will do the job right and in a timely manner. It is more profitable for you to "run" the job as you can charge 10 on 10 - 20 percent over what the contractor charged.

In my area I am Allied with four companies in order to handle any size job that might arise. My wife is a trim carpenter and have subs for electric, plumbing, Sheetrock and we paint. Sub out the carpet and floor installation and any other service we don't provide making 20 percent on all of them.

So in other words find locals that are looking for something you can do easily like extraction and approach them and make strategic alliances with them. Make sure all prices or percentages are clearly agreed upon and documented. Don't make the mistake of doing the job without clear expectations from each side.

 

[Desk Jockey]

One reason I walked is because I don't have a Dri-Eaz Rescue Mat System. They had wood floors in the kitchen, they weren't buckled yet, but my moisture meter detected moisture under the floors. In the master bedroom, where the flood originated from a broken line on the toilet, they had Pergo Floors. They were already starting to buckle, so they would need to be removed. I have plenty of air-movers and dehumidifiers to take care of this job. But, my main concern is that there was already a smell of mold and my company is not setup to do the demolition and reconstruction in a timely manner to properly satisfy the customer. After working all day with the limited employees I have, it would be virtually impossible to start a job of this size immediately. Do you find temporary help when starting into the Flood Restoration Business since they only happen occasionally? The job could take 2 weeks to complete and requires a skilled construction crew. Do you sub out the reconstruction?

No floor drying system, you can use 6-mil poly sheeting and cover the floor and use the process side of your dehumidifier to put dry air across the floor while you source the floor panels and an ETES. You don't have to have a floor drying system to dry floors it just speeds up the process. We tried floors for many years without them but to buy you time to get what you need, rented or borrowed the tenting will be doing some drying.

Yes the laminate needs to come out, so you can get to the trapped moisture, it comes out easily.

The odor was more likely coming from the wet drywall, it gives off a pungent odor when wet. Not that that you couldn't have some microbial activity, you could but I doubt it would have progressed enough to already causing a concern.

We only do the mitigation part of the claim and that is how I would suggest you begin and slowly grow into what Michael is doing if you want to offer full service. I feel you're much better getting in, getting it extracted dried and getting out. I see the potential for more problems in the put back, than in the tear out and that is one reason we stay out of it.

 

[SMRBAP]

Not to be the dark half here - but you do want to be careful mixing different companies services together on the mitigation side. The rebuild side - use subs by all means, manage the project, sit back and collect 20% O&P.

Mitigation side is a bit trickier - this is where the vast majority of liability lies. Anything goes wrong - it becomes a finger pointing game. Personally, I won't put that much at risk without having 100% control, not on the miti side.

If you really want to add resty services, it's high risk until you get yourself prepped to do so. Customers are sue happy in this biz - they ask for limited drying/ extraction only, they mold, you get a letter from their lawyer 3 weeks later seeking $80k in damages...... and found out the hard way a single sheet of paper that read "limited services" - etc, outlining the risks they agreed to assume - would have prevented the headache.

Get trained - WRT, (ASD too if you have the time and $ - there are usually combo classes).

Get Xactimate - and learn it. Having a copy of the line items doesn't net you O&P, BSC's, etc. On one of my current projects, those two line items alone account for over $8000. IMO biggest mistake new restorers make is losing $$$$ by not using this software.

Get insured - 99% of carpet cleaning insurance GL will not cover liabilities for performing restoration work. Find a insurer that WON'T exclude mold coverage (huge).

Get organized - speak with the member here that are restorers first about possible ways of getting your operations prepped to add restoration, contracts and waivers, tools, meters, what to buy, what to rent etc.

Get protected - Learn the liabilities within this line of work, craft work auths and contracts that cover a to z in all regards, obligations, liabilities, waivers, etc. Create drafts, have an attorney finalize them.

It's not a just add water offerings addition like deciding to build an area rug pit, or adding tile and grout and figure it out as you go - if you really want to minimize liabilities and do the work properly. Not saying it's brain surgery - just saying that a single tiny missed facet can cost you big - sometimes one not even your fault.

 

[dealtimeman]

With us the company that signs up the job carries all the liability as it is their job. Anybody working on the job works and performs exactly what the job owners request. It is not very different than going behind your own guys and double checking what they have done. With water damage you must be very meticulous and firm with your procedures and follow as close to the iicrc recommendation as possible. As with all services we at lcs provide, we always try to go beyond what any other company would do even if in the end we don't get paid for certain items( hepas on all jobs, containment where others would not setup containment, indirect heating where other would use direct fired) all in an attempt to "minimize" a liability situation.

I will say it is beyond necessary for all who are venturing to do water work, to be very educated and knowledgeable on all available education and legalities associated. Take more than one class and at least one hands on house flooding type class.

I would also like stated before, find a local that can mentor you and help start you up. For this mentoring to be successful, you must add value to his company as most water damage guys don't want to help anyone else as they will see you as direct competition and baulk at even the mention of partnering up. Most water damage companies now days don't want to clean carpet and only do so to keep techs busy in between water losses, this is another way to add value to their company and let them view you as an asset worth allying with.

As with any aspect of all business if you don't dot your i's and cross your t's all the time on all your jobs you will have problems. Run a tight ship and any problems should be small and manageable.

 

[Erik]

Thanks, all real good advice.

 

[Hoody]

Erik - how far are you from Toledo, OH ?

 

[Erik]

40 minutes

 

[Hoody]

Im just 20 mins south of toledo in Bowling Green. If you ever get some nasty weather up that way and need an extra hand estimating, managing losses or need an extra body for some help get a hold of me. Ive got 7 years experience... my certs have lapsed but ive done a lot of water fire and mold in that time.

Just putting the offer out there.

 

[Erik]

Thanks Steven, that's a great offer. PM me your phone #

 

[dealtimeman]

Im just 20 mins south of toledo in Bowling Green. If you ever get some nasty weather up that way and need an extra hand estimating, managing losses or need an extra body for some help get a hold of me. Ive got 7 years experience... my certs have lapsed but ive done a lot of water fire and mold in that time.

Just putting the offer out there.

This is what you are looking for Erik, Steven will give and bring much value in situations you don't feel comfortable with, I suggest taking full advantage of his offer.