We'll Just Put the Water Back...
The Restoration Industry Association has been collecting information on a practice that is impacting restoration firms across the country. It involves mortgage holders that are withholding payments due to restoration firms for services provided.
A survey by RIA found that 59 percent of the respondents said this practice affects from 25-50+ percent of their receivables. The estimate of money that mortgage companies hold is well in the hundreds of millions of dollars each month.
The good news is that the majority of the companies are able to collect their money, but it can take anywhere from 60-90 days to years. The survey also found that the majority of restoration companies have anywhere from one to three staff people chasing the money from insurance companies and mortgage holders.
RIA is taking several proactive steps to address this issue. The company has put links on its website to two articles that provide some legal remedies for companies caught between the mortgage holder and homeowner while waiting for payment. There will be a webinar in February to provide information on the problem and identify some ways that restoration companies can protect themselves and obtain the money that is rightfully theirs. There will also be a major session at the RIA Leadership Summit and Industry Expo in Myrtle Beach to further address the issues involved.
RIA is also taking a proactive approach to draw attention to this practice in the mainstream media in an effort to apply some pressure to the banks that are withholding monies due to restoration contractors.
RIA Convention Update
The RIA Leadership Summit and Industry Expo will take place at the Sheraton Myrtle Beach Convention Center Hotel from March 27-29. Kicking off the festivities will be the Martin King Scholarship Golf Tournament at the Myrtlewood Golf Club. Proceeds from the tournament will be used to endow education scholarships that will be available to RIA members to pursue advanced education and certification in the restoration field. The first scholarships are expected to be awarded at the 2012 Convention in Las Vegas, NV.
For a full listing of sessions and presenters, visit www.riaconvention.org. For more information on Restoration Industry Association programs, go to www.restorationindustry.org.
Business growth and opportunities are a major focus of this year’s convention. Sessions include:
• How to get more business
• How to get business from insurance agents
• Mining your market: Not just a box of donuts
• Tips & tricks when billing insurance agencies
• Understanding the mind of the adjuster
• Social media strategies to connect, engage and grow your business
• Closing the insurance gap
• Getting mortgage holders to pay
• Hot issues in employment law, including social networking
• Soft contents – sub it out or do it yourself?
• Advanced IAQ techniques for the restoration contractor
• News and updates from The Clean Trust
• Xactimate 2011 property report