Restoration & Mediation January 2012

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Restoration & Remediation

January/February 2012

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Risk Management and Insurance Mega Trends in 2012

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Restoration & Remediation

w w w . R a n d R m a g o n l i n e . c o m

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18Z Plugging the “Green” into Restoration

Features & Columns

24Z Measuring Moisture in Concrete 26 Z Without My Business, Who am I?

Restoration & Remediation

8Z

January/February 2012

Risk Management and Insurance Mega Trends in 2012 By David J. Dybdahl

Management 8 Risk and Insurance Mega Trends in 2012

14 Z

Plugging the “Green” into Restoration: The R&R Q&A

24 Z

Measuring Moisture in Concrete Floors

Floodwaters Strike Hard at Pennsylvania College By Malcolm Stone

16 Z

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By Grete Heimerdinger

26 Z

Restoration Professionals Need Licensing and Certiﬁcation

Without My Business, Who Am I? By Jeff Kraai

By Dan Bernazzani Vol.6 No.1

January/February 2012

RESTORATION & REMEDIATION (ISSN 1936-0789) is published 6 times annually, bi-monthly, by BNP Media II, L.L.C., 2401 W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) 362-3700, Fax: (248) 362-0317. No charge for subscriptions to qualiﬁed individuals. Annual rate for subscriptions to nonqualiﬁed individuals in the U.S.A.: $115.00 USD. Annual rate for subscriptions to nonqualiﬁed individuals in Canada: $149.00 USD (includes GST & postage); all other countries: $165.00 (int’l mail) payable in U.S. funds. Periodicals Postage paid at Troy, MI and additional mailing ofﬁces. Postmaster: Send address changes to: RESTORATION & REMEDIATION, P.O. Box 2146, Skokie, IL 60076 Printed in the U.S.A. Copyright 2012, by BNP Media II, L.L.C. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations. Canada Post: Publications Mail Agreement #40612608. GST account: 131263923. Send returns (Canada) to Pitney Bowes, P.O. Box 25542, London, ON, N6C 6B2. Change of address: Send old address label along with new address to RESTORATION & REMEDIATION, P.O. Box 2146, Skokie, IL 60076. For single copies or back issues: contact Ann Kalb at (248) 244-6499 or [email protected].

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Departments 6 Z Editorial Comment 32 Z News & New Technologies 40 Z Must See Product Gallery 41 Z Buyers’ Marketplace 41 Z Calendar of Events

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Looking Back and Charging Ahead

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Evan Kessler * PUBLISHER Chris Dunham * EASTERN REGIONAL MANAGER Jim Roy * WESTERN REGIONAL MANAGER Jeffrey Stouffer * EDITOR Rick Arvidson * SR. ART DIRECTOR Manda Chan * ART DIRECTOR Amy Levin * PRODUCTION MANAGER

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ooking back at 2011, with all its ups and downs; the “we’re on the right track” quickly followed by “we’re off the rails”; waking up from the feasts to face the famines and so on, the one thing you could be sure of was that things were sure to be consistently inconsistent. But there was always work to be done in the business of restoration. While maybe not the head-to-toe, Kevlar-coated beast some had touted it to be, the restoration and remediation industry nonetheless showed great resilience and surprising nimbleness as companies quickly shifted gears to adapt to ever-changing market conditions. Innovation and technology – both in the ﬁeld and the ofﬁce – were welcomed with open embrace, strengthening and streamlining operations as a new landscape emerged. Speaking of changing landscapes, David Dybdahl offers his take on what’s coming in the insurance business (“Risk Management and Insurance Mega Trends in 2012” on page 8). As the claims process gets more and more complex, expect more and more denials, non-renewals of policies and the continued expansion of networks. One of the topics we’re consistently asked to address and re-address is the issue of moisture and concrete. It’s a…headache, to say the least, for the restoration professional. Grete Heimerdinger puts together a simple, straightforward primer on “Measuring Moisture in Concrete Floors” (page 24) that lays out some of the various testing procedures, tools and techniques to help the professional get to the bottom of things. Odds are good we’re not going to be seeing any huge reduction in the number of states requiring licensing and certiﬁcations. If anything, there’s sure to be more and more requirements on the horizon. Dan Bernazzani gets out in front of the curve, and plants his ﬂag ﬁrmly in favor of others doing the same, with “Restoration Professionals Need Licensing and Certiﬁcation” on page 16. Instead of ﬁghting the tide, Dan suggests turning it to your advantage, a sort of business taekwondo if you will. And while resistance may not be futile, a little hedging of your bets makes sense. And that’s just a taste of what this issue holds. Finally, it’s with mixed emotions that I conclude this, my last editorial comment for R&R. It’s been an honor and a pleasure working with all the great contributors over the years who’ve helped make R&R the industry leader it is today, and my best to them and to you. Best wishes to you all, and here’s to a great 2012!

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Risk Management and Insurance Mega Trends In 2012

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By David J. Dybdahl

hese risk management and insurance mega trends in 2012 that are certain to affect the restoration business. In this article I will cover the top risks facing restoration ﬁrms and offer advice on how to counter the emerging mega trend.

Courts Conﬁrm Fungus/Mold/Category 3 water/ Bacteria Related Losses Are Not Covered In GL Policies Since 2006 I have been warning restoration ﬁrms in multiple presentations and publications that the fungus/mold bacteria exclusions in the General Liability (GL) insurance policies have eliminated the core liability insurance coverage for restoration ﬁrms performing operations where a speck of mold or Category 3 water is involved. From the knowledge I gained on water and mold losses as a member of the consensus drafting committees of both the IICRC S500 and S520 professional standards and guidelines for water and mold remediation combined with a masters degree in insurance and thirty years of experience insuring contractors, the huge coverage gap in the General Liability policy for any claim involving a speck of mold or Category 3 water was totally obvious to me. However, in spite of what I thought was a obvious insurance coverage design ﬂaw for years, to this day 80% of restoration ﬁrms still purchase traditional GL insurance policies. Some restoration ﬁrms do not even purchase Contractors Pollution Liability (CPL) which has always seemed crazy to me in light of what they do for a living. A recent insurance coverage court case in New Jersey involving a General Liability policy and a Contractors Pollution Liability conﬁrms that what I have been warning about for years is accurate. I feel vindicated! A New Jersey Court of appeals case settled in October 2011 conﬁrms my message that: 1. The GL policy is not adequate liability insurance on jobs involving mold or category 3 water; 2. Specially modiﬁed Contractors Pollution Liability insurance is

About the Author

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David Dybdahl, CPCU, ARM, MBA, is the president of American Risk Management Resources Network, LLC. He is an insurance broker specializing in restoration contractors’ insurance programs in all 50 states. He can be reached at (608) 836-9590. For more information go to www.restorationinsurance.com

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Risk Management and Insurance Mega Trends In 2012 Continued needed for any ﬁrm that may run into water, asbestos, or lead on a job or who may use a chemical treatment of any kind on a project, and 3. The purchase of separate GL and CPL policies should be avoided if at all possible. It is far better from a cost and claims standpoint to have the GL and CPL insurance on the same policy form.

I found this case in Lexis, a data base used by legal researchers. This is the ﬁrst case I have seen in New Jersey where a court is determining how the Fungus and Bacteria exclusion in General Liability policy applies on a mold remediation job which also used a fungicide. I would be quoting from the case here but at the top of the page of the document it says: NOTICE: NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION. I am not sure what that means but I am not going to get crosswise with a New Jersey court in ﬁnding out. The takeaways from this case are: This was a $500,000 problem for the restorer; the case was actually brought by the CPL insurer of the franchisee to try to recover from the GL insurance policy which was issued by another insurance company not related to the company that issued the CPL policy. Because the loss involved mold and a fungicide the GL carrier successfully denied the original claim in court and through the appeals process. If the contractor was on their own ﬁghting their General Liability insurance company for coverage in court, the ﬁrm would have needed enough cash to pay the $500,000 plus attorney fees for ﬁve years. This case took ﬁve years to work through the courts, and the carrier denying the loss on the GL won. I am an expert witness on insurance coverage cases in federal and state courts. I have sat in depositions with teams of lawyers where the clock was tick10

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ing at $45 per minute in the room and we were not at the appeals court level. I know of very few restoration ﬁrms that make a proﬁt at the rate of $45 per minute in order to pay for lawyers and experts. The only good news for the restorer in the loss was the CPL policy paid the original claim that the GL carrier had denied. Some of the CPL policies sold to restoration ﬁrms today may not have paid the claim at all due to a series of common exclusions that would apply to facts on the loss. Because the GL and CPL were provided by separate insurance companies the original outcome could have been worse for the restorer with both the GL and CPL insurance company’s claims adjusters standing around saying “that’s not my job man” as each adjuster tried to push the claim onto the other adjusters policy. Potentially in this case the contractor could have ended up suing both the GL and CPL carriers for coverage paying out big dollars on per minute basis to sue two insurance companies. There are common themes in GL coverage cases as they come out of the court system in various states: 1. The insurance companies denying losses in the GL policy win, meaning the restoration ﬁrm is uninsured. 2. The GL policies exclude more in the Fungus/Mold/Bacteria exclusions than any separately purchased CPL policy can insure. 3. The work was performed many years ago and is just coming out of the court system now, which means the restorer was involved with legal costs for years. If the costs were higher the restorer could be bankrupt. 4. The restoration ﬁrm purchased insurance that takes judges and legal teams to ﬁgure out of there is coverage in the policy. It ﬂoors me to read these cases; why would anybody purchase a liability insurance policy that takes appellate level judges to ﬁgure out? This is crazy! The Mega Trend As claims adjusters get schooled up from court cases on the far reaching effects of fungus/mold/bacteria exclusions expect more “water losses” to be declined on both

J a n u a r y / F e b r u a r y 2012

property and liability insurance policies. Claims adjusters will ﬁnd it more and more difﬁcult to ignore the mold growing on the wall in the Category 3 water loss in the face of such restrictive case law. As a result I expect adjusters to increasingly deny claims under General Liability and Property policies if the loss is related to mold or Category 3 water. The Counter Play Make sure you have high-quality insurance coverage on your business with the GL and CPL in a single policy form where possible. Also make sure that you know if a property claims adjuster that is paying for your services on a job is going to limit the recoverable insurance on a water job due to a mold/Category 3 water/bacteria restriction in the policy. Avoid being over extended on work that is not covered in the property insurance policy, you may get left holding the bag. The Hard Insurance Market The cost and availability of insurance varies over time based on the available capacity (money) in the insurance companies and their loss experience. Poor investment returns and the storms of 2011 have drained a lot of money out of the insurance companies. They need to charge more for their products and can be more picky about who they insure in the future. Increased costs and restricted availability of insurance is termed a hard insurance market by insurance practitioners. Restorers are particularly vulnerable to a hard insurance market place because of the over 2,400 insurance companies in the United States, only seven companies issue the combined General Liability and Contractors Pollution policies needed to avoid the insurance coverage problems I mentioned above. Of particular interest, two of the companies that pioneered the use of combined GL/CPL policies on restoration ﬁrms are refusing to renew their policies on this class of business at any amount of premium in 2012. That is an ominous sign of things to come. Restorers in New York are going to have severe insurance availability problems in 2012. We are cobbling together solutions for these ﬁrms in our insurance brokerage operations but it is amazing to me to see

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Risk Management and Insurance Mega Trends In 2012 Continued how fast the insurance market is drying up for New York- based contractors. Some of these ﬁrms will face more restrictive coverage at signiﬁcantly increased costs. The Mega Trend We are witnessing the exit of top-rated insurance companies who pioneered insuring restoration contractors on high quality combined GL/CPL/Professional policies. Those exits combined with tighter underwriting requirements by the surviving underwriters have reduced the number of potential sellers of liability insurance to restoration ﬁrms by 25% in the past 18 months. So far the reduction in supply has not lead to increased premiums (yet). Still, plan for 8% rate increases on average in 2012, in stark contrast to the 20% rate decreases we have seen for the past 3 years. The Counter Play Be sure that you are insured by an insurance company that has restoration ﬁrms as a target class of business and who has been writing them for more than three years. These insurance companies are a lot less likely to decide to not write insurance on restoration ﬁrms in the near future.

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The Growth in Networks When insurance companies get squeezed on proﬁts, like they have been for three years now, out sourcing non revenue generating functions can look pretty good. Claims departments are a cost center in an insurance company; reducing head count and costs are a constant pressure point with the carriers. Restoration networks offer an excellent value proposition for the insurance companies; trained, experienced, certiﬁed and insured contractors who have been scrutinized by a formal evaluation process, ready to respond to a loss in a consistent manner, anywhere in the US in less than two hours. As a result of this exceptional value proposition for the cash-strapped insurance companies, some networks express their growth in double digit numbers on an annual basis. Mega Trend The growth in networks through master service agreements will continue. As a result, less and less claims work will be sourced locally through insurance agents. Working for networks increases the risk of restoration contractors because the insurance companies want to ofﬂoad job performance risk along with the restoration work. Counter Play Participating in networks is an efﬁcient way to source jobs without taking on undue risk; there is no need to counter that aspect of networks. What participating ﬁrms need to keep in mind is the indemnity obligations under the network contracts and is how important it is to fully comply with the insurance speciﬁcations of the networks. The insurance speciﬁcations of the network are usually crafted to assure the insurances purchased by the contractor match up to the indemnity obligations the restorer assumes when working in the network. Therefore paying close attention to actually having the speciﬁed insurance in place should avoid the situation where a contractor has to indemnify the network for a loss on a job, but does not have the proper insurance coverage in place to back up the indemnity obligation. In addition to gaining a steady source of restoration jobs, a potential advantage to a network is they may have an insurance package available through a insurance vendor that has been speciﬁcally tailored to match the network’s insurance speciﬁcations. More Pressure from Insurance Agents for Contractors to Buy Higher-Quality Insurance Insurance agents can be sued by their customers for Professional Errors and Omissions if the agent sells inherently defective insurance policies that do not meet the insurance needs of the customer. To avoid professional liability for potentially uninsured losses agents can point out the coverage defects in the policies being proposed at the time of sale The smart agents are seeing the writing on the wall on mold/ fungus/bacteria exclusions and are becoming increasingly nervous about potential coverages gaps in the policies they are selling. It makes them even more nervous when a ﬁrm does not purchase the insurance that the agent knows the ﬁrm needs. Lucky for the insurance agent in the ﬁrst mega trend I discussed, the franchisor

to place in insurance program that met the speciﬁcations of the franchisor. Mega Trend More insurance agents will be asking for a letter holding them harmless if the restorer does not purchase the recommended coverage or demands the agent place an insurance design that is fundamentally ﬂawed. The expert witness work of ARMR increased 400% in 2011, directly as a result of insurance agents leaving their customers bare for pollution/mold/fungus/ Category 3 water/bacteria losses. Over time the insurance agents will gain understanding on their professional liability loss exposure in this area and will move to manage their risk. required in their insurance speciﬁcations that the GL and CPL policies had to be written on separate insurance policies. Even if the insurance agent for the restorer had suspected a coverage design ﬂaw in separately purchased GL and CPL policies, the agent still would have been forced

Counter Play It is not a good idea to counter this trend in insurance agent professionalism. Contrary to popular belief most insurance agents are not there to sell you something. Most insurance agents genuinely care

about you having the insurance you need. If your insurance agent has discovered a insurance design ﬂaw in your insurance program that is so signiﬁcant they want to be held harmless if you ignore their advice; what is unreasonable about that? Summary We are moving into a hard insurance market place expected to see: 1. More claims denials for losses associated with mold and Category 3 water. 2. More non-renewals of insurance programs and increasing insurance costs. 3. The networks market share of claims work will expand, be very careful to fully meet their insurance speciﬁcations, they are designed to prevent you from being uninsured on a claim that you have to indemnify the network on. 4. Insurance agents will increasingly ask to be held harmless if you do follow their recommendations for needed coverage.

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Floodwaters Strike Hard at Pennsylvania College

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n September 2011, approximately 30,000 square feet of water from the Schuylkill River damaged areas at Reading Area Community College in Reading, Penn. Up to a foot of water pushed through a four-story academic building, a warehouse, and carpentry and maintenance buildings. The majority of the flooding and water damage occurred throughout basement and first floor levels. Large-loss specialists Paul Davis National provided building restoration, drying and stabilization services along with reconstruction work According to Howland “Howdy” Russell, Paul Davis National coowner, the company served as the general contractor and provided restoration technicians along with a team of subcontractors for the project. The crews provided structural cleanup, restoration and emergency mitigation

About the Author

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By Malcolm Stone

services, repairs and reconstruction. The project was completed for the returning teachers and students in just three days and in time for the new semester. Initially, Paul Davis technicians were deployed to assess the damage on Friday, Sept. 9. While four buildings were affected, one of the buildings, Penn Hall, was needed for students to use first thing the following Monday. Paul Davis’ advance team surveyed the site on Saturday to assess the equipment and manpower needs, and by Sunday, crews arrived and worked throughout the night to have Penn Hall dried, cleaned and sanitized in time for students on Monday. At the start of the job, the buildings were closed as the flood waters receded and emergency services teams began to work around the clock while tractor trailers and hundreds of pieces of equipment were

Malcolm Stone is the Director of Marketing and Communications for Paul Davis Restoration Inc. He has more than 12 years experience in corporate marketing. You can reach him at 904.737.2779 or email [email protected].

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able deliverable. Cost containment and technical accuracy were critical goals while managing the project. The company’s main objective was to manage and complete the work on time while overseeing the loss site. Implementing the correct tactics and techniques in advance of implementation included a proposed plan of action to stabilize and

restore the site. All appropriate parties at the college along with the insurance companies involved were aware of the proposed actions and pricing structure. This allowed the team to establish an agreed upon course of action and the work necessary to make effective and efficient decisions and ensure that all resources were in place to meet the tight deadlines.

delivered and housed on-site. Equipment utilized included desiccant dehumidifiers, air movers, generators, and drying and contents processing equipment. Technicians removed and replaced porous materials such as drywall, carpeting, and base molding which came into contact with the river water. The contaminated Category 3 water, also known as “black water” had the potential to contain contaminated agents, dangerous bacteria and various forms of fungi. Because of this, all of the affected buildings and the heating, ventilation, and air conditioning (HVAC) systems were treated with antimicrobial solutions and prepared for state officials to inspect the property before college staff and students were permitted to return to campus. According to Russell, the loss was not conventional and the response plan had to be meticulously supervised. Paul Davis’ experience in handling large losses was an advantage on the job, plus the company’s documentation practices served as a valuCircle 7 on the Free Information Page J a n u a r y / F e b r u a r y 2012

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Restoration Professionals Need

Licensing and Certification By Dan Bernazzani

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hroughout the United States, restoration professionals are under a microscope. This is true in the ﬁelds of water damage restoration, mold remediation and ﬁre restoration. What is driving this examination of our profession? The mostcited factor is cost, but this is a symptom rather than the cause. The real problem is a lack of esteem for what a professional res-

About the Author

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toration technician does. How many of us have to explain that we do more than extract water, remove mold, or clean a home? How many times have we had to explain that we actually have advanced training and certiﬁcation? If we are not perceived as professionals, we will not be treated as professionals. The ﬁrst problem is the development

of an educational system that starts at the beginning – apprenticeship and continues through higher and higher levels of education and certiﬁcation. The Clean Trust (formally known as the IICRC), through research and development of basic entry level training courses, has developed a program for many entry-level positions. The Clean Trust went one step further and

Dan Bernazzani, president of DryAdvise is a PhD candidate at Antioch University. His research interests include drying water-damaged structures, contents, and microbial growth in the built environment. He is a past president of the IICRC, a contributing author and task force member of ANSI/IICRC S500 and S520, and has taught courses throughout North America, Australia, and the United Kingdom. He can be reached at: [email protected]

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developed the organization’s ﬁrst standalone exam called the Mold Removal Specialist (MRS). This exam qualiﬁes candidates who already have training and experience. They may have already attended classes and understand industry standards yet need to provide assurance to their employer, state or local agency, or regulator of proof of their knowledge. It is a certiﬁcation that will set professionals apart. Everyone needs to keep up with the latest techniques and technologies and some may need refresher training or continuing education to be better prepared to take the comprehensive exam. More information is available at www.thecleantrust.org/MRS. The second issue is keeping unqualiﬁed people out of our profession. Although some restorers believe these issues are contradictory, they are not. My belief is that both problems can be solved through the way we deﬁne professional restorers. The Clean Trust is doing just that. Volunteers, including educators and university administrators, have developed a certiﬁcation program that has something for everyone. Certiﬁcation involves a professional title that should only be used by professionals who have passed the minimum requirements in the ﬁeld. Licensing is altogether different, in that it allows only a licensed person to work under a local, state, or federal law. Because most states do not require licensing, there is no process to prevent untrained workers from being called restoration technicians. Today, some states are changing that practice and are now licensing for mold remediation technicians. It’s clear that some people learn on the job, and through trial and error develop skills – some good and some not. We as certiﬁed professionals, whatever our credentials, should work together for recognition of our dedication to our craft. Untrained technicians working to remediate damaged structures make mistakes – some of them very costly. Certiﬁcation and licensing helps solve this problem by providing consumers peace of mind. Just as certiﬁed accountants, plumbers and mechanics project a higher level of competency in their ﬁelds, and just as members of American Medical Association set themselves apart through

training, experience and comprehensive examination, certiﬁcation helps immediately identify our industry’s most skilled and dedicated technicians. There are different ways that restoration technicians can become licensed and it varies from state to state and even city to city. One way is to qualify attendees who pass an exam at the end of a class, or, to take a page from the accounting profession, require candidates to have a combination of work experience and knowledge gained through independent training and then take a test. Those who pass a stand-alone certiﬁcation test still require training, education, and even experience. Nearly anyone who exhibits competency in their respective ﬁeld passes an exam be-

fore they can practice in their chosen ﬁeld. Certiﬁcation and licensing are not unusual for professionals. In fact, most professions have both certiﬁcation and licensing. Several states have instituted this in the ﬁeld of mold remediation. An example is Virginia, which recognizes The Clean Trust’s Applied Microbial Remediation Technician certiﬁcation. Other professions have traveled this same path. Nurses, accountants, electricians and others have all increased their status as professionals through training, certiﬁcation and licensing. Without certiﬁcation, unqualiﬁed individuals will continue to operate and give our industry a bad reputation. Our profession needs to continue to support training and certiﬁcation that provides assurance for regulators and consumers alike. We need The Clean Trust and its certiﬁed professionals because together we provide the most cost-effective and efﬁcient remediation anywhere in the world where we are needed.

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www.zipwall.com/r2 Circle 15 on the Free Information Page J a n u a r y / F e b r u a r y 2012

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Photo courtesy of Wacker Neuson Climate Control

Plugging “Green” into Restoration: The R&R Q&A

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he idea of “green” or sustainable equipment and practices is nothing new, yet ﬁnding a consensus on how to incorporate green techniques and ideas in a restoration program is harder than you might think. To try and set a baseline from which to start the conversation, R&R asked Trent Massey, Corporate Social Responsibility Practitioner and Property Programs Instructor for Arlington, Texas-based Vale Training Solutions, if he could help shine a light on some of what’s going on today – and what’s to come – when it comes to restorers “going green.” Restoration & Remediation: Let’s start at the beginning. There’s a difference between restoring and replacing; when it comes to a LEED-certified building, what does that mean for the restoration professional? Trent Massey: LEED buildings can be challenging to the restoration professional

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for different reasons. One important issue is that a variety of installed ‘green’ materials may have contributed towards the points that helped earn the LEED label. Those labels are earned for the original LEED specs. When these green materials are damaged and deemed necessary to replace, the original integrity of the LEED rating must be retained. The challenge is finding suitable replacement materials, other than the exact make and brand originally installed. If replacing damaged original materials which may be green with traditional not-so-green like, kind, and quality construction materials, then the LEED label may be suspect. Traits which help identify green materials can include recycle content percentages (percentages matter too); regionally extracted and manufactured materials; low emission materials; products made from

J a n u a r y / F e b r u a r y 2012

rapidly renewable sources; lumber from certified forests; products which helped reduce waste; products which contribute toward a reduction in energy or water use and much more. Restoring the building’s materials over replacing is at present the best option to helping retain the original LEED specs. When we keep the original materials, the documentation on the LEED building stays valid. R&R: When it comes to equipment, while every restoration is unique, is it fair to say that the less equipment put into use, the better? TM: Restoring a green building requires it to be done right, just like traditional buildings. If drying a green building, the restoration professional must ensure the job has the appropriate amount of equipment in place, performing as designed. To cut back on equipment just to save energy

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needs. I could see the case where sometimes more equipment might be required. R&R: Talk a little about demolition, disposal and removal, and how the idea of “an empty Dumpster is a green Dumpster” applies. TM: “An empty Dumpster is a green Dumpster” is a phrase we have been saying to our students for awhile. The idea of an empty Dumpster or no Dumpster connects to many talking points which help describe a greener restoration process. First, better indoor air quality is a trait of many green buildings. Concerning repairs, there are a couple common paths which contaminants like construction dust enter a building. The first way is through the demolition process and the second path is when materials are replaced. Demolition of drywall, tile, and other materials typically produce dust which has to be contained and of course these materials need a Dumpster to be carried away. Cutting and installing new drywall,

(perhaps thinking this will appeal to the owners of a green building) may not always be smart. Leaving the building with problems later like musty smells or even mold will make no one happy.

A green building should have a tighter envelope, higher efficiency HVAC systems, overall better (before loss) indoor air quality, and building materials which may not endure water too well. These all may come into play when calculating equipment

Editorial Reprints rs re s to or es iat r R ed fo em Q R IA nd a

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on rad use ing ca inud can are ng. incl h at – whic th e lu ox nts of ticles to th mon luta both ar in on ls. ives pol e, all p deep carb roso ject also en e r of )pyr to sm ied ar id ae y ob This ugh rmbe (a ch carr ased ac mar e. thro se e nu nzo atta en rele and pri ag ts r of e th y By Jim Pearson A d be – th nts de ’s dam an be or it an ncer and luta dioxi storer ing tamin num rest qual e re tinu con e a er to airca ed pol n nth y hal ther itroge the con ing e ar ord own clea self, about the t in ickl et The public is still concerned ou qu of to , O e, n of nt ad Ther e in its were $10 milrightfully so. rp in it am tion Institute, mold claims health hazards of mold, and ca ks veryone providing watereveryone id One reve spre ty. vid ith of 2000. One the y now, ev is loss r ex amp ea ters ro ully industry is mixed about lion for the ﬁrst quarter p m The medical er ro w br gh the kf the ion has surely faced the mold losses shot restoration art a e, fo a d ree damage restorati to not p t p ch year later, ﬁrst quarter an d rs of mold with some practitioners dangers danger The old joke, “No in2002, mold l ﬁre ireﬁ ugh h is eans e pro igh , ea while uninsured mold loss. e ch ered ak in deg a up to $80 million. During ng of a serious health threat, d warning warnin al . F ro . T or an ld!” isn’t funny anymore. mold!” billion, and the m t th e m loss I) g th nsid e. T job me from el l. lle surance? No mol hard evidence to loss payouts exceeded $1 tric hen e th ames teri otherss claim there is no $12 bilerage for mold losses has coverage l ﬁ ing ou ces w ﬁre art akin co on ing is so ing ly w e as a paralThe lack of cove following year they approached ort this. Amid the confusion, elec tc hol ﬂ in support suppo stil ok ng nplace. What happened? vi ove (Ch m not into ean ere rpet real larg ght commonplace. this, insurers mailed out wants to take a become common n e ki a the the combat nobody To ch and vi lion! in is set as has ysis ha li in , limit caps to 000 articles warning of the 8,000 th chop se to e ily ab es even ally turn et cl e th e ca it as ) ri you More than 8,0 n et universal exclusions or claim ily, e d on the issue. stand mainstream er ou e in the country. (CDC) issu Not ener ld carp s ar th um cles ores ut use gers of toxicc mold hit the dangers ov and d d ag e. e hom fam to th falle is w rs nearly every policyholder Centers for Disease Control The Ce u le er cu ti sp B ly ce ago. A “48 Hours” prohealth-related G ears years ye on c respin d am as e focus several d chronic e media media’s with r. the co While va par d ai on an n p agrees that individuals atti spon te an le d all ﬁ ve, th d th ted ing h ther embe ing of public hysMelinda Ballard, a lawsuit turing M difﬁculty ing. sure sim Ch th u we ol e gram featuring we d issues was the primary cause ratory disease may experience re ntila is litt are arri an trea ceil and red rpet rockovich over mold in her Brockovich in Br reasons for the draet, ck certain mediit , a ent. ow irst spew g m to th y an ﬁled by Erin teria, there were other reason breathing. But they dispute dog supposd including: ve ere ants u oke as re hen er, har ca ple se m d gr d. F ums udin in pan t? e carp st su n e. or inconclusive home and Ed McMahon’s matic increase iin mold claims, cal studies, alleging ﬂawed e an at with less th cup en yo t sm h kitc wat r. C -nap er being sickened by mold agree that mold ba mol ﬂoo cu ncl and com righ g th ll ju ’s ﬁ ell, edly dying after • More energy efﬁcient buildings data. OSHA and the EPA her h blic concern. Claims for oc Wh ligh ing, the the ﬂoo low some people, all helped fuel public of or al va ns (i lter ice s, in ; we’ That ? W k of in st. W s. t fresh air inﬁltration is an allergen and can irritate dramatically such as on rose dram ugh t of t of the the h to say that mold mold contamination pri orm icro e ﬁ serv cuum lean that ide. hind rin ry it am fa nes on • Changes in building materials but they don’t go as far as -c t ts be h d d period. As the public’s th y va and “synthetic wit d co Par eigh over in most doce te ot so si refr al N m particle board, OSB, eat during this same on ou it will make you sick. However, of mold heated Finish an om. e w all holes r. t th t. N ur bu e fo qu n a with suppressed 20 rough qual ered acti ab it ou left is fres ers to ks gr m- awareness of the dangersextending stucco” or Exterior Insulation coverth on tors believe those people ﬂoo ’s ge ou u yo at th es to take nro increased risk th n a -ﬁlt extr orry ow ure g th mov wor cuu up, insurers cooled on state reduced or Systems (EIFS) ed immune systems have an in every billions won in froomsulati rn d tile ! Let stuff yo er com st be co apTo date, there ru EPA e are to w d bl oist yin air also d va eas. age. • Lawyers’ awareness of ter Insurerscoverage of infection from molds. that paid for mold m litigation af se ar e injury studies an in e bu ol em this cost an ev it as ju t to the the jo personal clinical eliminated e or w H of is faith bad have not been adequate If ’t hav up t the ly en ple iqu m ated res cleanup – even that resulting from certain cally linked to hav er an probl ing uld e th hen nt h tan ke of between toxic n es in u • Mold exposure scientiﬁ u ff conﬁrming a positive link at ov No uck t co mor d w clie por d ta lth water-damage losses. don e stu abou is real a co tech spor tam ced adverse health effects th InformaAccording to the Insurance t m nex ow min ur im r an e hea es the th hat old ace This ol d con pro m star u do is n e’s d yo . It’s r ai th es. n stat for at’s W e m so pl kly. y m y un ion co ar a , ic yo IAQ yon . An area indoo tect loye atio ble ; th rean usl at n ye th er comio restoration te e ar er si ye m s a full-service disaster at d 7- lean ev life this the pro p iz wat ore qu ibu evio restor and 7-year of Americlean, a 28-year-old as secretary, treasurer the president and CEO stor an er ic anoff of in out s to ur em rgan respon ery e sa ntain udBody and recently served Jim Pearson, CMH, is m distr to pr er re rer of the IICRC S520 Consensus can e-mail him at JimPearson@americle am the Author pany. He is the chairman About (formerly ASCR). You ity g hiti ab step as yo lth O is le ev In th co incl ener Association p su Industry to in st ea n@ director of the Restoration ro sa biig rned ate ell ea on eop ds. oke nts, n p ing Imp corporation.com. 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Plugging “Green” into Restoration: The R&R Q&A Continued

MDF, fiber cement siding, and other materials also leads to dust in a building. This new dust too has to be contained as well as the new material scraps hauled away – another need for a Dumpster. Simply stated, demolition and replacing implies dust and a Dumpster. It takes fuel to transport Dumpsters to and from job sites, and I’m not sure when or if a contractor thought twice about the distance or fuel consumed moving a Dumpster from a job site to the landfill. We don’t have landfills in every community, you know. Finally, the empty Dumpster may also mean the job is completed sooner which helps minimize claim issues like Additional Living Expenses on residential losses and Business Interruption expenses on commercial insurance claims. R&R: What are some of the most common misconceptions restorers and insurance professionals have about “green” restoration? TM: Some of the misconceptions or myths we hear at times include “It cost too much,” “We don’t have time,” “No one cares about it,” and I have also heard the opposite, “Isn’t everyone doing this.” Let us address these myths. First, I’m sure most everyone is not offering green restoration; at least we see little evidence of it. I’m hoping that someday the majority restoration industry will have ‘sustainability’ as the main component in their business models but that day is not here. In regards to no one caring about green, I have witnessed the contrary. One of our students was awarded a $300,000 fire loss after graduation simply by offering green and backing it up with their credentials. I have also attended open house events on new green homes along with 3,000 other individuals interested in seeing the ben-

efits of green homes. I do not think those green open house attendees would object to a green restoration project should one be offered to them later. With regards to green restoration projects taking too long or costing too much, that all depends. The issue of time depends on the owner’s ability to make decisions quickly, the availability of materials, the knowledge of the restoration professional managing the project, and other factors. Yes, a green restoration project can take longer, or it might not.

Regarding costs, if we are talking about replacing damaged traditional materials with green alternative materials, then the answer depends on the selections by the owner of the building. If we are discussing an insurance claim with a set budget, then there are materials on the market today with only marginal cost over traditional materials. It also depends on the original budget of the damaged item. Flooring, paints, engineered lumber, roofing, appliances, and more are just a few examples of product categories where alternative green materials can be found within reasonable pricing and sometimes for the same. There are also products which can cost a lot more. This is where the education and preparation of the restoration professional pays off too. R&R: Equipment is expensive, but so is energy. Older and poorly maintained equipment uses more energy than newer, more efficient machines. Any recommendations for companies weighing whether or not to purchase new equipment vs. staying with what they’ve got? TM: If they work, keep them for now, use them when you must. I understand the incentives for getting rid of the old and bringing in the new. Less energy con-

sumption means more equipment (like air movers) can be running on an electrical circuit. You can still trip breakers though and homeowners will still shut these newer ones off at bedtime. (Truly, quiet is green too at bedtime). Meters and remote monitoring systems are good for these reasons and more. When having to rely on gener-

ators for power, then there is that incentive too for using more efficient equipment. I get that less energy is better and helps with a greener restoration project. In the restoration world, there may be times (as in catastrophe) where we need this older restoration equipment, and so they serve a greater purpose. In poor eco-

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Plugging “Green” into Restoration: The R&R Q&A Continued

nomic times too, it is just not financially feasible to swap older equipment for new. Being in the red over an untimely green purchase is not good either. But certainly when an older unit has failed and no longer dependable and worth keeping in service, then that is probably the ideal time to replace with new or newer while weighing the overall cost and ROI to the business. The restoration industry is still a business so finding a balance of how to best address older equipment in a win-win decision is best. R&R: Crystal ball time: Where do you green and sustainable restoration practices

heading in the next 10 years? Will we see a set of best practices, or even a universally accepted Standard come into existence? TM: First, we easily see a day coming in the next 5 years where restoration professionals serving on insurers’ vendor networks will be required to have in place a working Corporate Social Responsibility (CSR) plan which will include a component for sustainability in its business model. Green restoration will be part of this sustainability provision too. We see a scenario unfolding where if the restoration professional does not have a CSR plan, they will no longer receive claims on the network. In Canada we have already witnessed at least one insurer requesting its vendor contractors to adopt a sustainability plan. We do not see the insurance industry as being exempt from this trend. Our best advice is for the restoration industry to get on board now rather than wait. There is also a bottom line element here with a CSR plan. Companies with

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successful plans are seeing their expenses reduced and profits increased. Regarding best practices, we certainly believe a standard for green restoration practices will be debated and eventually created. We don’t have this yet. I have already bought the binder and labeled it the National Green Restoration Standard and we bring it out in our current classes, but as of this date it has not been written by the restoration industry. My students laugh when I show them the empty binder. Until such time we have formal best practices or a national standard, we have written a White Paper titled “The Responsible Restoration Company” which helps describe what we see as the first real guideline for the green restoration professional of the future.

For more information: www.valetrainingsolutions.com

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Measuring Moisture in Concrete Floors

M

By Grete Heimerdinger

oisture in concrete ﬂoors is an important issue. Concrete ﬂoors are an integral part of a building, and excess moisture within a slab can affect the entire structure. Other structural component, ﬂoor coverings, furniture and interior decorations can be ruined, not to mention serious health problems can be caused by mold. Moisture tests of concrete floors are usually conducted to determine whether or not floor coverings or sealers can be applied or to find out why problems occurred. To give reliable results, the test needs to show whether or not the mid-section of the slab is dry enough. Graph 1 shows the moisture distribution in an uncovered and a covered concrete slab, which has not entirely dried out yet. Once the surface is covered or sealed, the free moisture inside the slab

About the Author

24

Moisture distribution in concrete slab: - with floor covering,sealer or adhesive without floor covering

Graph 1

Grete Heimerdinger was a science teacher in Stuttgart, Germany before moving to the United States, where she has been vice president of Lignomat USA for the past 30 years. Along with being actively involved in product development, she is a member of the ASTM task groups C11 for measuring moisture in gypsum, and ASTM F-2170 for measuring moisture in concrete. For more information visit Lignomat’s website at www.lignomat.com.

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is trapped and over time distributes itself evenly throughout the slab. That results in an increase in moisture at the top of the concrete slab.

Graph 2 The in-situ RH test is designed to measure the mid-section of the slab (Graph 2). A relative humidity probe is inserted into a pre-drilled hole. The probe measures the evaporation from the concrete at 40% depth for slabs drying from one side and at 20% depth for slabs drying from both sides. Another advantage of the RH in-depth method is that the evaporation from the concrete slab is measured and not the moisture in the concrete. The floor covering installed on top of the concrete does not “feel” the moisture in the concrete, but the evaporation emitted from the concrete slab. Pin or pinless moisture meters are not measuring deep enough (Graph 3) and they are measuring the moisture in the concrete and not the evaporation from the concrete. They are good for a qualitative quick check to find high and low moisture areas or as an indication that more testing is necessary.

The Calcium Chloride test (Graph 4) has been used for many years. Experts have found that the test can give false negatives and positives, because it only takes into consideration the top section of the slab. Another disadvantage of the test is that the evaporation of surface moisture measured by the test depends on the ambient conditions around the slab. In a building with low relative humidity, the same concrete evaporates more moisture than in a building with high relative humidity. RH in-situ Probes for Measuring Moisture in Concrete Slabs Excess concrete moisture is a continuous threat for floor coverings, whether in new construction or existing buildings. Before installing resilient floor coverings the contractor should make sure the slab is dry enough. Even after moisture problems have occurred, the concrete slab should be tested before replacing a moisture-damaged floor covering. A lasting solution for replacing damaged floors is only possible, when the source of the problem has been detected and eliminated. The in-depth probe tests with RH sensors have proven time and time again to be able to detect hidden problems. The core moisture often stays undetected with surface moisture measurements, when using pin or pinless meters. Even the Cal-

Calcium-Chloride Test

Graph 4 cium Chloride test only takes into consideration moisture close to the surface of the slab. The ASTM standard F2170 describes the in-situ RH method used more and more as the industry standard for measuring moisture in concrete. A number of test holes is drilled and RH probes are used to measure the evaporation of the concrete in the isolated space at the bottom of the hole. Permissable RH values vary between 65% for very moisture sensitive floor coverings up to 97%. Many floor covering manufacturer have issued recommended RH values for their floors. To avoid moisture problems the installer is advised to check the moisture in a concrete slab before covering the slab with sealer, epoxy, tile, linoleum, carpet or wood.

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Without My Business,

Who Am I? F

or more than 20 years I’ve been an entrepreneur at heart. After starting and selling ﬁve businesses, I discovered my passion was in selling companies, not managing them. The psychology of business owners—what drives their decision to sell, or not to sell—intrigues me. What are their most-desired outcomes? What are their most profound fears? Which fears are business related, and which are more personal? Restoration company owners are not exempt from these ques-

About the Author

26

By Jeff Kraai

tions. The remediation/restoration business model is one of the most complex in existence. With the ever-present two-headed customer with differing expectations, evolving federal and environmental regulations, the challenge of ﬁnding skilled labor, and difﬁcult systems and procedures that are hard to standardize, it’s a complex business. Due to this complexity, most business owners would prefer not to think about selling or transitioning from their companies.

Jeff Kraai is President of Exit Strategies, Inc. specializing nationwide in the Cleaning and Disaster Restoration Industry. He can be reached conﬁdentially at 1.800.388.1096 or email him at [email protected].

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Ultimate Control

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www.prochem.com

Without My Business, Who Am I? Continued and year out to ensure their businesses perform well. Then, one day, they wake up and realize they want to sell. The result? Many are ill prepared, both practically and psychologically, for what happens during the transaction itself and for life after the sale. They have a difﬁcult time determining exactly where their businesses ends and their personal lives begin.

They postpone these pivotal decisions for as long as possible. Certainly there are exceptions. Some owners started their business with an ‘exit strategy’ in place. Others viewed themselves as investors in the business with the singular goal of selling the company as an investment. For them, the emotional barriers between themselves and their businesses are clear. Conversations about selling are easy, even welcomed. In my experience, investor-type owners are a distinct minority. They are signiﬁcantly outnumbered by owners who work year in

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The Question Only You Can Answer Six years ago, I valued and brokered the business of an 83-yearold owner who had started his company at the age of 29 in 1949. His name, face and personality were synonymous with the business, so it was with sensitivity that we discussed retirement, hobbies, the joy of family and grandkids, etc. He agreed wholeheartedly about their importance and his desire to sell his company. Two weeks before we were to sign all the closing documentation, I received a call that I will never forget. In tears, he was clearly struggling with his decision to sell. He ﬁnally said with exasperation, “Without my business, who am I?” After 54 years as a business owner, he had no idea who he was supposed to be outside of his company. He later told me that selling his business seemed like death. He absolutely couldn’t comprehend life beyond work. This scenario may seem extreme but it perfectly illustrates my point. To a degree, every owner must face this question, “Who am I without my business?” I would argue that you are not ready to sell your business until you have reﬂected on this question.

Business Ownership Comes with Perks Business has its privileges. I understand. I’ve been there. To some, being the boss brings an ego gratiﬁcation that may be difﬁcult to give up. As a business owner you are needed, people depend on you and your opinion is paramount. Being the center of attention can become a way of life. I’m not referring to owners who go out of their way to gain attention. I’m referring to the day-to-day management decisions that attract the spotlight. When contemplating a sale, it is troubling when you suddenly realize you won’t be so important anymore.

These logistical concerns (and many others) will be explored as you and your professional team walk through the transition process. Your CPA, business and/ or estate planning attorney, business intermediary and a wealth advisor should work together to provide understanding and guidance as you deal with each issue. With answers in place, conﬁdence and

peace of mind swell, allowing you and your family to make accurate and timely sales-related decisions. Not What You Do, But Who Are You This is where I see most potential sellers go through deep self-evaluation. Considering these questions early can help ease

Answers Are Necessary for Common Questions There are plenty of other critical issues to explore when considering a sale: business value, taxes consequences and planning, types of professionals to use and to what extent, conﬁdentiality, transition timelines, fees, types and qualiﬁcations of buyers, key employees, deal structure, ﬁnancing feasibility, carry-back notes, premise lease transferability, real estate issues, etc. This list can be overwhelming. In most instances these issues take precedence, as they are front and center in your decision-making.

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Without My Business, Who Am I? Continued the transition from your business into the next chapter of your life. Family-related questions may include: 1. How long has it been since I’ve spent meaningful time with my family? 2. Am I a role model for my family members? 3. As a family member, how do I want to be remembered?

4. What have I shown my family to be my priorities? 5. Is there a family legacy I am trying to leave? On a personal level, questions may include: 1. Do I spend (enough) time on hobbies that I enjoy? 2. Do I ﬁnd time to express my creativity?

3. What areas of my life are important to me? Do my actions support that? 4. Am I a good friend to those around me? 5. Do I regularly take time to exercise or to create a healthy lifestyle? 6. Am I able to contribute to my community on a regular basis through charities or church afﬁliations?

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Ultimately, without your business, how are you going to contribute or feel needed? When the Telephone Stops Ringing Every business owner will have his or her own experience. Here’s a simple example. Last year, a Canadian client successfully sold his business. Due to the extensive restoration industry experience of the buyer, the transition time was short. Just three weeks after the deal closed, he and his wife took a seven day vacation for the ﬁrst time in more than 20 years. He called me upon his return, trepidation in his voice: “My week was a bit surreal,” he said. “My phone only rang twice in six days, and those calls were from my kids checking up on us! Apparently nobody needed me… nobody cared where I was or when I was going to return. It’s a little odd to feel this way. But I think I can get used to it!” Many owners approach retirement with ease and grace, welcoming it with open arms. Others struggle as they venture on a quest to discover who they are and what their ultimate purpose is outside of work. Once you have answered the basic ﬁnancial questions surrounding a sales decision, I challenge you to ask yourself, “Who am I without my business?” The answer will not only assist in your decision-making process and the timing of your sale, but also you may be pleasantly surprised by the answer.

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News and New Technologies Cold Jet has added a sales and service location in Worcester, Mass. Through a regional sales and service agency agreement with the Cryogenic Institute of New England, the facility will stock the full range of Cold Jet Dry Ice Cleaning Systems and have on-site sales and service staff trained in the utilization, inspection, maintenance and repair of Cold Jet systems. “We have long recognized the importance of maintaining full service facilities close to our customers’ operations. Whether the need is a new machine, or a critical repair, having that capability within a few hours’ drive enables us to offer the highest level of service to our valued customers,” said Gene Cooke, III, President and CEO of Cold Jet. For more information circle 250 on the Reader Service Page.

General targets restoration market with Sea Scope

General Tools & Instruments

Cold Jet

Cold Jet opens new sales and service center

With the new Sea Scopes from General Tools & Instruments, restoration contractors and technicians as well as property inspectors can easily and safely inspect ﬂooded or submerged structures. The Sea Scope 660 and Sea Scope 600 are “the ﬁrst and only video inspection systems with IP67 rated waterproof grips, monitors and camera-tipped probes,” the company said. Each model includes a 10mm (0.39 in.) diameter, 1m (3.28 ft.) long, close-focus, cameratipped probe with adjustable LED lighting. Optional 3m (10.1 ft.) long waterproof probes are available and up to three 3m long extension probes can be added to increase the overall reach to 10m (32.8 ft.). For more information circle 249 on the Reader Service Page.

CRDN

Murray named national sales & operations manager for CRDN Robert Murray has been named National Sales & Operations Manager for the Certiﬁed Restoration Drycleaning Network (CRDN), an international organization of textile restoration specialists serving the insurance industry. The announcement was made by CRDN CEO Wayne Wudyka. “To this position, Rob brings diverse experience with ﬁnance and environmental services in addition to his strategically important insurance expertise,” said Wudyka. “He also provides hands-on knowledge of franchise ownership and multi-location business management, which will be particularly relevant for the CRDN operations he will guide and direct.” For more information circle 248 on the Reader Service Page.

Dri-Eaz Products ships new groundbreaking dehumidiﬁer

Dri-Eaz

Dri-Eaz Products is now shipping the LGR 7000XLi dehumidiﬁer, a new performer in the Xactimate “Extra Large” category. The 7000XLi delivers extra-large dehumidiﬁer performance in a compact, highly maneuverable unit that only weighs 107 lbs. Given its size and water removal capacity – 130 pints/61.5L per day at AHAM – the 7000 “sets a new industry record in pound-for-pound performance,” the company said. “We’re excited to get this unit in our customers’ hands and out in the ﬁeld,” said John Ormsby, President of Dri-Eaz Products and ProRestore Products. “We know they’re going to be astounded by its performance, portability, timesaving features and overall quality of build. Our customers simply won’t be able to justify the purchase of any competitive unit. Why? Because there aren’t any that even come close.” For more information circle 247 on the Reader Service Page.

TecMark

TecMark joins Purdue Research Park TecMark Inc., whose software tracks weather activity at an individual street level of detail, contacts property owners and restoration contractors immediately after a storm hits an area. “Within 20 minutes after a storm, we contact property owners by telephone and email to ask if they need services, then direct them to the website of the TecMark-afﬁliated contractor,” Founder Phil Butler said. “Property owners can see the contractor’s credentials and accreditations at the site, and then receive a local phone number to contact the contractor for immediate and long-term needs.” Butler said restoration contractors are organized into ﬁve zones of concentric circles based on their proximity to Indiana and the amount of severe weather their area receives. For more information circle 246 on the Reader Service Page. 32

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RETURNING TO THE HILTON CLEARWATER BEACH RESORT IN CLEARWATER BEACH, FLORIDA

May 3, 4 & 5, 2012 YOUR OPPORTUNITY TO GET THE BEST OF BOTH WORLDS ... THE INDUSTRY’S TOP CLASSROOM EDUCATION AND INTERACTIVE, HANDS-ON, LIVE DEMONSTRATIONS. CONNECTIONS brings the industry together in a technical, educational format that details and demonstrates the latest trends in cleaning, restoration, remediation, management, and marketing. THE 2012 CONFERENCE SCHEDULE INCLUDES: KEYNOTE ADDRESS: Gregg Habstritt, The Trusted Authority • Become the Trusted Authority in your market, bringing a constant flow of high quality prospects to your business • Multiply your income by using tested and powerful positioning and marketing strategies • Quickly build an email list that provides ongoing revenue, engagement and support • Become a better marketer and learn how to communicate in a powerful way that creates results, revenue and repeat business

INTERACTIVE, HANDS-ON, LIVE DEMONSTRATIONS: • Rug Cleaning - Jeff Bishop • Category 3 - Daniel Bernazzani • Water Damage Restoration - Barry Costa • Stone & Tile Cleaning - Dane Gregory • Risk Management - David Dybdahl and Harvey Cohen • Taryn Pianeschi - Electronic Media and Marketing PLUS: MAY 2, 2012 - The Smart Business Symposium John Braun, Hitman Advertising and Joe Kowalski, ServiceMonster. Learn what you should have on your web site, learn about customer relationship management, and learn about search engine optimization.

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News and New Technologies Extech Instruments announces the relocation of its headquarters to an all-new facility in Nashua, New Hampshire.. To accommodate strong growth and to serve customers better in the years ahead, the Nov. 21 opening of the state-of-the-art headquarters signals a signiﬁcant milestone in Extech and FLIR’s transition towards a uniﬁed organization that can better equip customers with innovative, revolutionary and affordable thermal imagers as well as the best in handheld test and measurement. Arpineh Mullaney, vice president for Extech Instruments, said, “As a test equipment company with a forty-year history of innovation, we are excited to embark on the next four decades with a facility that better positions us to continue our leadership in the test and measurement market.” For more information circle 245 on the Reader Service Page.

New app instantly calculates GPP on Android, iPhone mobiles

Dri-Eaz Products

Extech Instruments

Extech Instruments Relocates to Nashua, New Hampshire, USA

Keeping it simple for water damage technicians was the aim when Dri-Eaz Products developed its new mobile application to assess humidity levels on the job site. Accurately tracking GPP (grains per pound) is key to establishing a suitable drying environment and to monitoring drying progress throughout the restoration process. The Dri-Eaz GPP Calculator simply requires the operator to simply enter two values – temperature and relative humidity. Matt White, mobile application designer with Dri-Eaz, focused on simplicity and ease of use. “There are other GPP calculators available,” he said, “but our customers told us that the interfaces used by theses apps are confusing and they contain features that technicians rarely need.” For more information circle 242 on the Reader Service Page.

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www.icsmag icsmag..com

www.RandRmagonline RandRmagonline..com

When it’s time to

SELL your business,

ProRestore

Microban X590 replaces Microban X580 ProRestore announces that new Microban X590 is now available and ready for shipping. Microban X590 “offers superior performance consistency, streamlines inventory for both distributors and customers, and reduces the potential for an interruption in the supply chain,” the company said. According to senior scientist Mike Kerner, the EPA-registered (EPA-reg. 70385-4) Microban X590 provides the same trusted features of X580 and more. “The new Microban X590 formulation includes an alternative active to Pyrethrum that combats nuisance pests and retains the valued features of Microban X580 such as a being a disinfectant, deodorizer, bacteriostat, and fungistat,” he said. For more information circle 240 on the Reader Service Page.

you need answers.

DKI

DKI named a Fastest Growing Franchise by Entrepreneur Magazine Disaster Kleenup International, Inc. ranked #83 on Entrepreneur Magazine’s Fastest Growing Franchises for 2011. Franchises are ranked based on their scores in Entrepreneur’s Franchise 500. The Fastest-Growing Franchises ranking is based on the number of new franchise units added in the U.S. and Canada from 2009 to 2010, as veriﬁed by Entrepreneur’s Franchise 500. DKI president Dale Sailer said, “I am very pleased that DKI is being recognized as a fastest growing franchise. We have worked hard to create a franchise opportunity that provides value while supporting the company’s overall vision, mission and values,” Sailer said. “It is rewarding that when compared to other franchises in the marketplace, others see the value in our offering.” For more information circle 243 on the Reader Service Page.

Experienced sales solutions for the Restoration Industry. AppraisaltConsulting tBrokerage

When it mattered, you took the weight of the world oﬀ my shoulders. Thank you!

Bridgepoint University

Bridgepoint University Releases 2012 Class and Seminar Schedule Bridgepoint University is the educational division of Bridgepoint Systems. So far over 300 events are scheduled in 2012 throughout the United States, Canada, the United Kingdom, and Australia. Hands-on product application training classes that specialize in training owners and technicians alike on the exact procedures, equipment, and chemicals alike are the fastest growing segment of Bridgepoint training schools. Bridgepoint University teaches IICRC Certiﬁcation Classes in Carpet Cleaning, Commercial Carpet Cleaning, Upholstery and Fabric Cleaning, Deodorization and Odor Control, Water Damage Restoration, Fire and Smoke Damage Restoration, Carpet Repair & Reinstallation and Color Repair. In addition Bridgepoint University provides specialized hands-on training courses such as the Commercial Cleaning Initiative, One Day To Real Money, and Power Up Soft and Hard Surface Cleaning Schools. For more information circle 239 on the Reader Service Page.

Contact Exit Strategies for a conﬁdential consultation.

800.388.1096 www.ExitStrategies-DR.com [email protected] Circle 21 on the Free Information Page

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News and New Technologies Ed Cross

New Online Store for Standardized Cleaning & Restoration Contract Forms Ed Cross, the “Restoration Lawyer,” has launched an online store where his Standardized Cleaning & Restoration Contract Forms are available (some for free). Forms include Authorizations, Service Agreements, Limits of Liability, Releases, and Change Orders. There are detailed instructions on the use of each form, scripts for presentation of each form, form letters and more. All contract forms are one page in MS WORD format, and are ready for immediate download. Store also offers webinars, video, and articles. For more information circle 235 on the Reader Service Page.

Max-Defense System

Service Software

Tornado ACS

Behr

Behr paints earn GREENGUARD indoor air quality certiﬁcation Behr Process Corporation announced that two of its paint lines now meet guidelines set forth by the GREENGUARD Environmental Institute (GEI) as part of the institute’s Indoor Air Quality and Children & School Certiﬁcation programs. Behr’s recently certiﬁed products include all BEHR PREMIUM PLUS and PREMIUM PLUS ULTRA interior paints, including BEHR PREMIUM PLUS interior/exterior high gloss series. “Behr is proud to offer high-quality, environmentally-safe professional products,” said Joe Richardson, senior vice president of professional products and services for Behr Process Corporation. “With this certiﬁcation, our customers can be assured that their clients will have healthier indoor air quality in their home or business environments. For more information circle 234 on the Reader Service Page.

Surface restoration without chemicals or water Tornado ACS is “the most environmentally friendly solution for cleaning and restoration available in the industry,” the company said. “Ideal for grafﬁti removal; building restoration; mold remediation; removing rust and paint from a wide variety of surfaces and more.” The system operates with a patented negative-pressure jet principle, using a jet-blasted medium of different grain and structure to facilitate with retrieval of the jet grain being completely dust free. For more information circle 228 on the Reader Service Page.

RestorationManager.net from Service Software Inc. The new Mobile Manager allows contractors to “run your business in the palm of your hand,” the company said, from platforms including: iPhone; Android devices; BlackBerrys; tablets and any mobile device with a data signal Features include: review key dates and progresses; see contract amounts; estimate; budget; gross proﬁt; invoice/payment info; simple, easy-to-read icons;, and the ability to view and update notes in the ﬁeld. For more information circle 232 on the Reader Service Page.

Max-Defense names Harris national sales director Max-Defense System has named Guy T. Harris as National Sales Director. Guy has worked for Max-Defense’s parent company Certiﬁed Maintenance Service, Inc., a 19+ year old commercial janitorial company which operates in 24 states, for almost a decade as the Sales Director. Max-Defense System is a proﬁt-generating program for restoration contractors. Max-Defense trains contractors to market and apply an EPA-registered and environmentally friendly Anti-Microbial “shield-like” bio-static coating that can only be applied by Authorized Service Providers (ASP). The “shield” will ﬁght 24/7 against potentially deadly microbes for up to one year on many surfaces including carpets. For more information circle 233 on the Reader Service Page.

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faciliSmart

CleanSmart Technologies

CleanSmart Technologies introduces Shining Armour Shining Armour is a premium stainless steel cleaner and rejuvenator. It removes oils and rejuvenates brushed and polished stainless steel with “a unique combination of high-performance cleaning agents, including premium surfactants together with pure 100% natural plant extracts,” the company said. Its scientiﬁcally developed formulation contains anti-bacterials “to give you not just the best looking stainless steel, but also the most hygienic.” Shining Armour is non-abrasive and will not remove or add scratches to the surface. For more information circle 230 on the Reader Service Page.

faciliSmart makes quick work of complex planning faciliSmart is a comprehensive web-based disaster preparedness and facility management tool. Accessible via computer, tablets or smartphones, the software “locates and identiﬁes critical building systems; locks in competitive pricing; pre-plans disaster response; facilitates project communication in real time; streamlines the claims process and more,” the company said. For more information circle 229 on the Reader Service Page.

ICRA

New international trade association – ICRA – forms Since 1987, many organizations have been discussing bringing together the various associations to cooperate and work together to build the industry. Leaders of the cleaning and restoration industry trade associations recently met to develop a memorandum of understanding to further deﬁne a uniﬁed industry afﬁliation agreement. The associations that met agreed to move forward together and formed a new international association: the Inspection, Cleaning and Restoration Association (ICRA) dba as the International Cleaning and Restoration Association. “This is an exciting time for our industry. An international membership organization has been needed and talked about for a long time in our industry. With the support of national and regional associations working together we can build something that will beneﬁt all sectors of the inspection, cleaning and restoration industry.” Craig Kersemeier, ICRA Chairperson, said. For more information circle 231 on the Reader Service Page.

Bigger isn’t always better.

Avoid unnecessary damages. The Saf-T-Kut™ Carbide Tipped Reciprocating Saw Blade is designed to cut through drywall and plaster without damaging hidden electrical, plumbing, telecom lines, etc.! Cut through walls with confidence. Save time and money in repairs due to accidental damage to hidden obstructions. Watch them in action! See the videos on our web site. Saf-T-Kut™ blade at full extension.

Patent pending.

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Coating Specialists

News and New Technologies Coating Specialists introduces SurfaceClean Designed for use prior to the application of Coating Specialists’ long-lasting antimicrobial products, SurfaceClean is a hospital-grade cleaner/disinfectant that kills 99.9% of germs and bacteria on surfaces. “SurfaceClean enhances the effectiveness of our antimicrobial coatings by properly pre-treating surfaces before antimicrobial treatment,” the company said. Surface Clean kills 99.9% of contaminants including H1N1; MRSA; hepatitis; avian inﬂuenza; SARS and more. It also meets OSHA bloodborne pathogen standards for HIV, HBV and HCV. For more information circle 244 on the Reader Service Page.

GreenSorb

IDEAL

IDEAL Expands Thermal Imaging Line IDEAL INDUSTRIES, INC. announces the release of the HeatSeeker 160 thermal imaging camera for electricians and maintenance engineers that need a highly accurate, easy to use troubleshooting solution at a price they can afford. The HeatSeeker 160 features a Class II laser and delivers a higher resolution thermal image (160 x 120, 19,200 pixels) and a two-megapixel visual image for ultra-sharp images in a wide temperature range of 14° F to 482° F with an industry standard accuracy of ±2° C. Designed for non-contact preventive maintenance, it identiﬁes potential problems before they occur by detecting hot spots on motors, switch gear, processing pipes, compressors and fuse panels. For more information circle 240 on the Readerr Service Page.

GreenSorb takes on all comers GreenSorb absorbs oils; fuels; solvents; grease; toxins; medical ﬂuids; blood and urine; caustic ﬂuids; paints, alcohols and sewage. The non-toxic, non-corrosive, non-ﬂammable formulation is all natural and can be disposed on in landﬁlls, according to the company. OSHA- and U.S. EPA-accepted, GreenSorb is safe and easy to use. For more information circle 227 on the Reader Service Page.

Munters

Munters Launches PsychroApp for iPhone, iPod Touch\ Munters new psychrometric calculation tool, PsychroApp, “easily calculates the thermodynamic properties of air from an iPhone or iPod Touch,” the company said. Calculate total, sensible, latent and moisture loads of any process while on the go by entering the temperature and relative humidity into the app and it will output the corresponding dew point or gr/lb, giving users the insight needed for their job. For more information circle 236 on the Reader Service Page.

To Sign Up for Your FREE Subscription, go to www.randrmagonline randrmagonline..com and/or www.icsmag icsmag..com 38

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IMACC drives 500 to Detroit.

IMACC

The Independent Mitigation And Cleaning/Conversation (IMACC) held its 2012 Conference, “Everyone Wins,” at the Motor City Casino Hotel. Over 500 restoration, mitigation, reconstruction contractors and insurance professionals were on hand for the educational conference and trade show of 47 suppliers. Detroit Mayor, Dave Bing was the keynote speaker. The program included more than a half-dozen breakout sessions on a variety of Xactware applications. Other sessions included marketing and business development ideas and ethics/conﬂicts. For more information circle 237 on the Reader Service Page.

iCAT Software

What is iCAT Unite.com? iCAT Unite from iCAT Software was designed to bring together thousands of contractors from around the world, and empower them as a single purchasing body. Through a group buying strategy, they can collectively give vendors a good reason to dig deep, and create the best possible deal. “Visit www.icatunite.com and create a user account. Once you have activated the account, review the deals and ﬁnd the ones that you like. Commit to a deal, with your purchasing information. When the deal closes, if it hit its “tipping point” your payment will be processed and you will receive your voucher. Redeem that voucher with the appropriate vendor to receive your goods or services,” the company said. For more information circle 241 on the Reader Service Page.

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MustSee Products Gallery 101

101 | Planning to Win Is your market share growing the way it should be right now? Planning to Win’s Accelerated Marketing Program provides an intensely focused lecture/workshop curriculum to ensure your success in marketing. Whether your client is an agent, adjuster, property manager, home owners association, or contractor, this three-day comprehensive seminar will give you the tools to elevate your business to a whole new level. Visit our website for more information at www.planningtowin.biz. For details circle #101 on the Free Information Page.

103 | Milnor

102

For 65 years, Milnor has delivered outstanding results to a variety of applications, including soft contents restoration processing facilities. Recently, Milnor launched their newest rigid-mount washer-extractor, which is ideal for the restoration market. Milnor’s 30022 V8Z high speed 60 lb. capacity washer-extractor features intuitive MilTouch™ touch screen control that gives the operator unprecedented control and monitoring of the process. For details circle #103 on the Free Information Page.

102 | Odorcide® Odorcide® is now available in specific formulas for odors caused by Cigarette Smoke, Fire & Floods, Dumpsters & Chutes and Laundry. Just like the “Original” formula these new non-enzymatic products work instantly with no dwell time and are not affected by detergents and disinfectants. Application is easy using tank or bottle sprayers, hose applicators, fogging or simply adding to the cleaning operation as needed. All Thornell products use our unique proprietary formula that permanently eliminates, not masks, odors on contact. For more detailed information or to request a sample visit us at www.odorcide. com. For details circle #102 on the Free Information Page.

103

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J a n u a r y / F e b r u a r y 2012

Classified/Marketplace REACH YOUR CUSTOMERS IN THE RESTORATION AND REMEDIATION INDUSTRY’S

MOST TALKED-ABOUT MAGAZINE! R&R is the publication the industry is talking about, the go-to resource for restoration and remediation contractors and insurance claims professionals alike. Here’s your chance to put your ad out there for a circulation base of 25,000 to see! ADVERTISING RATES COST PER COLUMN INCH PER ISSUE

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Subscribe at www.RandRmagonline.com

Calendar of Events Jan. 17-19:

International Disaster Conference & Expo in New Orleans.

Go to www.internationaldisasterconference.com for more information.

Jan. 22-25:

Insights 2012 in Austin, Texas . Go to www.insightsconference.com for more information.

Feb. 16-17:

Xactware 2012 User Conference in Salt Lake City.

For more information go to www.xactware.com/user-conference/2012.

March 5-8:

44th Annual ACCA Conference & Indoor Air Expo in Las Vegas, Nev.

Go to www.acca.org for more information.

March 5-8:

IAQA 15th Annual Meeting & Indoor Air Expo in Las Vegas.

For more information go to www.iaqa.org/expo.

March 19-22: NADCA 23rd Annual Meeting & Exposition in Puerto Rico. For more information go to www.nadca.com.

March 26-30: RIA 67th Annual Convention in Myrtle Beach, SC. Go to www.restorationindustry.org for more information. For the latest updates on shows and events throughout the restoration and remediation industry, go to www.randrmagonline.com!

J a n u a r y / F e b r u a r y 2012

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RR &

Restoration & Remediation

Restoration & Remediation Please complete and return this form to ensure that you continue to receive R&R magazine. To receive your FREE subscription to Restoration & Remediation magazine, complete and mail this form today! Mail to: Restoration & Remediation P.O. Box 2149, Skokie, IL 60076-2149 You can also subscribe for free at www.subscribeforfree.com or Fax to: (847) 763-9538 Would you like to receive a FREE subscription to Restoration & Remediation? Please check your preferred format:

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Advertiser Index /Reader Service Two fast and easy ways to get additional information on products & services in this issue: 1. Visit the Web address next to the advertiser’s name for the ad in this issue. 2. Complete the reader service information at the bottom of this page. Circle the number next to advertiser, copy and fax to (888) 533-5653 to receive information by mail. Advertiser/Phone/URL

Page# RS #

1-800-PACKRAT

800-722-5728 | www.1800packrat.com

23

22

Abatement Technologies

800-634-9091 | www.abatement.com/restoration

11

11

ARID-Dry by CDIMS

810-229-7900 | www.cdims.com

39

9

Connections Conference

888-881-1001 x104 | www.connectionsconvention.org

33

4

Dri-Eaz Products

unleashed.drieaz.com

48

10

Edward H. Cross

760-773-4002 | www.edcross.com

12

24

Exit Strategies

800-388-1096 | www.exitstrategies-dr.com

35

21

Extech Instruments

877-894-7440 | www.extech.com

9

1

Fiberlock Technologies

800-342-3755 | www.ﬁberlock.com

19

19

FLIR

866-477-3687 | www.ﬂir.com

7

14

Injectidry Systems

800-257-0797 | www.injectidry.com

3

23

Lignomat

800-227-2105 | www.lignomat.com

22

20

More Floods

866-667-3356 | www.moreﬂoods.com

22

12

Nanoscale

888-537-0179 | www.odorklenz.com/DR

29

8

Phoenix Restoration Equipment

800-533-7533 | www.usephoenix.com

2

6

Planning to Win

801-261-1282 x2436 | www.planningtowin.biz

5

18

Prochem

www.prochem.com

27

3

PuroClean

888-537-5228 | www.joinpurocleantoday.com

47

5

Rytech

800-865-8787 | www.rytechinc.com

13

2

Saf-T-Kut

www.saf-t-kut.com

37

17

Sporicidin by Contec

864-503-8333 | www.sporicidin.com

21

16

Top Tier Software

800-682-8412 | www.insite-360.com

15

7

ZipWall

www.zipwall.com

17

15

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ABRA News

By Rich Ross

ABRA and Other Associations

T

he American Bio-Recovery Association is a very special association, providing services that many cleaning companies or people would refuse because of the nature of services, such as attempted suicides, industrial accidents, vehicle accidents, pedestrian accidents, decontamination of ships, airplanes, buses, sporting events, train vs. pedestrian, and a host of many other services. It is my understanding that there is a push for other associations to enter this ﬁeld or start up divisions within their own organizations. I belong to several associations that are looking into expanding in this ﬁeld. Personally, I feel that it would be a huge mistake and therefore cannot support it. We have an international association that is geared for this service and have some of the best trained professionals in the world. If anyone feels they want to make a difference and support such an organization, then they should join ABRA and work alongside people that have the same mind set. Instead of each organization trying to develop new ideas and standards etc., as a larger group much more could be accomplished. As in any organization, there are only a few that really contribute by serving on the Board of Directors or committees. If we split ourselves and go in dif-

About the Author

44

ferent directions, then we will accomplish small goals or ideas. By having one voice and association for this bio-recovery ﬁeld, we will be able to accomplish so much more than if we water down the ﬁeld. If we allow our greed and feelings to get in the way, it will only hurt us all in the end. We will not be serving the public, as everyone states in their ads or websites. We will only add to the confusion and disagreements that are upon us now. By combining our forces, setting aside our selﬁsh ambitions we will not only have a strong association but can at least provide better support to the members of all the other associations not providing our service. There are a lot of members in other associations that do not want to or will not provide bio-recovery services. Many are forced into it because they feel they must help their clients. That is a fact and that is what is happing. If they had someone to refer the work to, they would gladly do so. I know many ABRA members do not offer carpet cleaning, water damage, mold or other remediation services, but some will feel that they have to help their clients out. If they had another competent company to refer, they would. This is just one of the many reasons we need to support our associations and team up with other associations and with each

other as individuals. I belong to SCRT, and our Ohio Chapter struggles for membership participation, as all our associations and chapters do. I have spoken at our chapter and Michigan’s several times, and we have had only one person join ABRA and become involved due to the fact that many do not want any part of this work. I know that there are SCRT members that dabble in bio-recovery sometimes. I have asked our Ohio Chapter to open up meetings to ABRA members, and ABRA will do the same for the SCRT members. I strongly urge all of us to put our differences and egos aside and look for what is best as associations and individuals. If we can do that, we will all have a share and become stronger and more proﬁtable. The question is, will we? Join us in August at the Sandusky Kalahari Resort for our 15th Annual Convention and see for yourself.

Rich Ross is president of the American Bio-Recovery Association and owner of Trauma Scene Services, LLC in Ohio. You can reach him at (419) 663-2819 or email him at [email protected].

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NIR News

By Walter Lumpp

Will You be a David Fighting Goliath?

O

ur business landscape is changing. As restoration contractors whose services are local, we considered ourselves immune to problems retailers and manufacturers faced when cheap overseas labor and goods drove many out of business. Now it’s our turn to face the Goliaths. Mega-contractor alliances are invading our turf, creating relationships with insurers that cut prices and set new rules for restoration jobs. Companies that do not figure out how to respond will eventually be left without work. I call this trend the “Wal-Mart Effect” for restoration contractors. Don’t be lured into complacency by thinking you will not be affected. I predict that all restoration contractors will eventually face a difficult choice: join these fast-growing programs and accept the fact that profit margins will be razorthin, or try to co-exist with these Goliaths and take action to ensure that your business will prevail. My advice is to enter any alliances with eyes wide-open and be sure you remain in control of your business. Do not allow these third-party agencies to account for so much of your work that you cannot afford to walk away. How can a restoration contractor remain in control?

Market Directly to Your Previous Customers Even though they will probably never have another restoration job, don’t let

About the Author

them forget you. They are your greatest advocates in what I call the “unreachable marketplace”: their network of family, neighbors, friends, workplace colleagues and church or club associates.

Provide Value with Every Contact People are eager for information that helps them feel in control. They want to protect their biggest investment and make wise decisions when problems arise. Consider yourself their coach and partner as they look for information and insight.

Expand Your Network with Educational Programs Develop one or several topics that you can offer on your own or present to other organizations. Offer a training session for businesses and property managers on improvements that could reduce their insurance costs. Give programs on safety through the Red Cross. To make your efforts pay, however, you must collect contact information from participants. Offer a giveaway or a special report in exchange for their email address, then follow-up.

Make Every Presentation a First-Class Event If you are sponsoring a training program, offer it in a neutral location such as a hotel or business conference room. Don’t try to scrimp on amenities such as meals or refreshments. Check the details

and meet with hotel staff ahead of time to ensure that everything will go as planned.

Promote Yourself Remind people that your company is licensed, bonded, insured and people working on job sites have undergone background checks and drug tests. You play by the rules and don’t cut corners to do things faster or cheaper. Such assurances go a long way when policyholders are thinking about who will be working in their home.

Be a Dynamic Presence in Your Community Getting involved in community events or sponsoring civic activities is the best insurance against outside conglomerates that want to take your business. Remember, policyholders have the right to choose who will do their restoration job and they cannot be forced to deal with outsiders they do not know.

NIR is the nation’s premier association of construction industry professionals dedicated to cleaning, repair and restoration of property damaged by disasters. www.nir-inc.com or (434)973-4200.

J a n u a r y / F e b r u a r y 2012

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NEWS

By Patricia L. Harman

We’ll Just Put the Water Back…

T

he 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 6090 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

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

About the Author

46

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.

Patricia L. Harman is the director of standards & communications for RIA.

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J a n u a r y / F e b r u a r y 2012

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