By any measure, the flooding and devastation hurricane Harvey caused in Houston is unprecedented. After the storm dumped up to 50 inches of rain on the nation’s fourth largest city, 30% of Houston is now underwater, thousands have been evacuated and up to 40,000 homes have been destroyed, according to news reports at this time.
“It’s pretty crazy,” said Bill Shaw, designer for Remodelers of Houston. “This thing just won’t let up. And it’s not just Houston, it’s all of south Texas.”
What this historic catastrophe means for contractors is a historic amount of work to get those affected back into their homes and back to normal. And it won’t just be Texas-area contractors doing the work. “There is just not enough trade contractors to be able to do all this,” Shaw said.
But before you load up the truck and head to Houston, it’s important to understand just what restoration work is — and how it differs from traditional contracting work, especially in the midst of a Harvey-sized catastrophe, what the restoration industry calls a “cat situation.”
“It’s a totally different game than simply being a remodeling contractor,” said Chuck Violand, principal with Violand Management Associates and president of the Restoration Industry Association.
Here are four important ways restoration work differs from traditional contracting work — and why:
1. The People
Contractors may have to sell their services, but when they come into someone’s home, they’ve been invited. Not so in a catastrophic situation, which makes dealing with restoration clients one the most difficult parts of the job.
“People see the damage. They smell the mold and mildew and they get desperate for help,” Shaw said.
That desperation can make it hard to work with restoration clients. “They’re angry, exhausted, scared,” Violand said. “You’re dealing with a totally different set of emotions than you’re used to.” So contractors need to be even more empathetic and patient with these clients and understand that their coming from a different place than traditional clients.
“A remodeling job is something you choose to do,” said Carol Roman, an accountant for Reel Construction Inc. “Nobody chose to have this happen to them in Houston.”
2. The Conditions
Flood restoration work involves completely different conditions than most contractors are used to handling. In humid Houston, mold and mildew are going to be immediate problems. But the floodwaters themselves are a stew of toxic chemicals, sewage, debris and waste all of which are seeping into homes. All of those are ideal ingredients for harmful microbes to flourish, warned Violand.
“Anyone involved in the restoration industry is well aware of the health risks and bio contaminants all over the water. If you aren’t protected there are serious health implications,” he said. “It’s nasty stuff.”
So nasty, even contractors like Roman whose firm specializes in restoration won’t touch houses until they’ve been properly dried out by specialists. Roman said that’s because dry outs and mold remediation bring up too many insurance and licensing issues.
3. The Customer
In typical contracting jobs, the client is the boss who determines the scope of work. But restoration work often means dealing with a different kind of customer — insurance adjusters who determine the scope of work. If insurers and contractors aren’t on the same page, the contractor ends up footing the bill, Roman said. “Adjusters are in hurry and they miss things,” she added.
So before any work gets done, contractors must do their own inspections of the property and make sure the adjusters’ scope of work matches the job. When in doubt, contractors can rely on the law. It requires insurance companies to restore homes to their original condition.
“Whether the insurance carrier agrees to the scope of work you just got done doing is where the contention comes in,” Violand said. “Unless you’re crystal clear up front it can be difficult.”
4. The Payment
Contractors may be accustomed to receiving progress payments and up front down payments on larger jobs. But in restoration work, payment often only comes upon completion of the job — and it can take a long time for that payment to happen. This lag in pay can cause serious cash flow problems for contractors.
“It’s easy for people to see a situation like this and get a shot of adrenaline about all the money you’re going to make,” Violand said. “But once you’re there, where’s your work going to come from and once I do the service, how am I going to get paid?”
That question gets further complicated when FEMA gets involved and even mortgage companies themselves on bigger jobs. “That starts a whole other procedure of them wanting to do an inspection. And they have their own inspectors who keep their own schedules,” Roman said.
Violand said the best bet for dealing with all of these issues is partnering with an existing remediation company. “Don’t go in there on your own because you’re either going to get hurt physically or financially,” he said.
He added that such partnerships can be another way to build business in the future. “This is an opportunity to learn some great lessons and build great relationships that will last beyond the recovery of Houston,” he said.
