The pulse of the restoration industry by Jeff Cross, senior editor

Carpet and furniture cleaning can be a great occupation. It’s not just a “living” — for most, it’s a career choice, a step many make before engaging in restoration work.

Many of you entered the industry because you investigated potential earnings, along with other attractive benefits.

Many of your clients probably toy with the idea of starting their own company after writing out the check to have their carpet and furniture cleaned, thinking that they, too, should earn $100 or more per hour.

Many of you have been asked, after completing a job: “How many jobs do you do a day?”

While carpet cleaning is a lucrative career — if the company is managed and marketed properly — restoration work can outpace those earnings tremendously.

That is, if you get paid.

Making the jumpSurveys sent to CM/Cleanfax® magazine subscribers indicate that most carpet cleaners engage in some type of restoration work.

Some perform complete, large-scale water damage restoration, structural drying and mold remediation, although many avoid mold work because of the liability involved because of liability.

A smaller number of these cleaners work in fire and smoke restoration.

An even smaller number work in bio-hazard cleaning.

Others handle small losses, typically for existing clients that may have a small water intrusion in a basement or an overflowing toilet.

Not everyone, though, wishes to engage in restoration work.

Those who decide not to say it is because they enjoy a regular schedule and regular, steady income, which is what carpet cleaning, for the most part, provides.

Where’s the paycheck?Then there is the “paycheck” aspect of restoration work.

Carpet cleaning generally means you get paid in cash, check or credit card when the job is completed. At the end of the day, you have earned and collected a good sum of money.

Restoration work is a different ballgame.

Many restoration projects are insurance-related, which means the payday that can be 30 (if you are lucky and the adjuster is your uncle or godfather), 60 (a nice surprise to get a check that fast), 90 (getting more typical), or 180 days or more after the restoration project is completed.

If you don’t have the credit or cash to float the money needed in your business until the paycheck comes in, you are in trouble.

But because of the need for this type of service and the resulting bigger paycheck (when it comes), cleaners work hard to make their efforts pay off in the restoration industry.

At the same time, it seems there are many obstacles too difficult to overcome. Hard-working individuals in our industry are suffering and many have closed their doors because of this.

There are many cases where a job was scoped and accepted by all parties, only to end up with the restoration company receiving a notice that certain things weren’t covered or that the insurance company doesn’t typically “pay for that.”

The money expected for the project is reduced, sometimes whittled or chopped down so much it would have been better financially for the restoration company to take the day off and throw a company-wide picnic.

The good guysIt has to be noted that there are many good, hard-working individuals in the insurance industry. These are people who realize a restoration company has to earn a profit.

These are people who have empathy for the insured, whether it is a single homeowner or multi-million-dollar commercial location.

These are people who can make working in the restoration industry a pleasant experience.

The job is scoped, performed and paid for — seems simple, but it doesn’t happen often enough.

The expertsThe adjuster that makes this industry refreshing is the type who recognizes and respects you as the expert. After all, there aren’t many adjusters that have worked on an actual water loss or spent the day in full personal protection equipment.

They may have some book or classroom training, but it’s not the same as actually taking that knowledge and putting it to work in the field.

As in most industries, there are ample training opportunities available to enable you to gain knowledge and to become an expert.

For the restoration industries, you have a slate of educational opportunities, from simple two-day basic water or fire restoration seminars to week-long educational events, including mold remediation training, to choose from.

Some training involves so much hands-on opportunities that, when the training is completed, the student and future remediator comes away with a tremendous amount of working knowledge.

After putting this to work in the company, skills are increased and a true expert remediator is born.

But then an adjuster comes along and tries to tell you how to do your job, perhaps dictating procedure that goes contrary to industry-recognized documents, such as the Institute of Inspection, Cleaning and Restoration Certification (IICRC) S500 Standard and Reference Guide for Professional Water Damage Restoration or the S520 Standard and Reference Guide for Professional Mold Remediation.

As one restoration professional in Florida related, the problem can be illustrated this way: An adjuster walks into a flooded home and points at an air scrubber and says, “Sorry, but we don’t pay for supplemental air conditioning.”

That may be an extreme case, but it’s true and illustrates that the restoration industry needs to be able to do its work — not saying it can’t or shouldn’t be policed, as any industry should be subject to scrutiny.

Of course, there are restoration companies in business today not qualified to perform restoration work. That’s no secret, and you’d find unqualified companies in any trade, whether it is plumbing, electrical, roofing, etc.

The point is that with proper education and good work ethics, everyone should be allowed to do their work properly. The bad companies are not going to succeed and will eventually be weeded out and the qualified companies will thrive.

Preferred contractorsThose that aren’t privileged to be a “preferred contractor” are generally against this type of business practice.

Of course, the insured has the right to choose the restoration company of his or her choice. But we all know how difficult it can be for someone not well-versed in insurance specifics to go against the recommendation of the adjuster.

A movement in Colorado recently may have a nationwide impact on this.

House Bill 1104, specifically eliminating the required use of preferred vendors in the state, recently passed the State Senate and was signed into law by Gov. Bill Ritter.

Consumers in Colorado can now choose their own restoration professional in the event of a water, fire or similar loss, with no pressure from the insurance industry.

Colorado insurance companies may provide a list of qualified vendors if the homeowner requests one.

Supporters of this bill are encouraging other restoration professionals throughout the U.S. to lobby for similar legislation.

Risky businessAnother problem with adjusters or insurance professionals dictating to you how to do your work is liability.

Who is to blame if, down the road, the work you performed is questioned and maybe even ends up in a lawsuit?

If you performed the work, and agreed to how it should be done, you are going to get the blame.

With the training and documentation available today, it is an easy thing to make known to the insurance company that, as a professional restorer, you must follow standard working procedure.

Of course, if you deviate from that standard and complete the job anyway, the insurance company is pleased because it probably saved money.

Problems down the road will find you abandoned to your fate.

How many adjusters would sign a form stating they agree and take responsibility for restoration work performed outside the scope of an accepted standard?

None. They want you to take the risk.

Everyone suffersMany of you have experienced this: You arrive at a loss and begin emergency services, only to find yourself haggling with the adjuster on the price of restoration services.

You know there are certain steps and procedures you should follow, but the money isn’t going to be there to pay for it.

The job goes from bad to worse as the work is held up because the insurance company is “doing its job.”

A simple water loss turns into a mold remediation project.

You don’t earn the money you need to make a profit and the insured is also hassled and becomes tired, eventually settling for far less than was fair.

This creates an attitude that is like a domino effect. You become weary, tired and bitter.

Plan your own solutionAs you can see from the various sidebars and examples that follow in this article, many of you have some of the same challenges.

You can also read about some potential solutions. Learning from the mistakes of others is key.

In the meantime, think about what you can do to make your relationship with the insurance industry better.

Many problems are due to lack of communication.

Many problems occur because too much communication was verbal, and not written.

From the insured to the restorer to the adjuster, and more, good communication is vital.

And documentation is important. Everything you think needs to be done on the job should be put into writing.

Citing industry standards of care is only going to protect you more.

Can you unite?Today’s world of electronic media makes it easy to network with your peers.

You can have an impact on the problems facing the restoration industry today.

Discuss these with others. Find your way to industry bulletin boards such as the one at www.cleanfax.com and, as a professional group of restorers, toss ideas back and forth.

Single voices are like gentle drops of rain in a pond.

Combined voices can be like a thunderstorm. http://www.advantagecleaningteam.com/ or http://www.janiservu.com/