Managing your own business?
Who really owns your business? Who runs your business?
As my Dad used to say "the grass is not always greener on the other side of the fence".
It seems that every day the Contracting field is more clouded. Not just P&P. Outside administrators, servicers are dictating to use how we are paid, if we are paid, how to do our job, when to do your job and more.
I thought I would share what the remediation contractors go through so everyone can see the similarities to the P&P Field. I'm sure there is more outside control on other contracting fields and would love to hear those complaints also.
Remediation Companies (Fire/Water/Smoke/Mold/Flood) normally need to have Insurance Company Contracts to have longevity in the business. These companies are called PSP (prefered service providers). If you are hired as a PSP than you can start getting referred insurance losses. Yes there are some exceptions to the referral work but by-and-large if you are the PSP contractor the adjuster refer the work directly to those contractors.
Pro's: Steady revenue stream of work
Cons: Loss of 10% P&O (20%discount?)
Micromanagement of the work site. Pics and young administrators on phone telling the pro how to do the job.
Auditing of the books yearly.
Additional insurance up and beyond the General Liability policy
Adding the PSP network administrator as additional insured on your policy.
Administration fee. 3-15% of job charges.
Yearly inspection of contractors buildings and equipment
Yearly audit of employee records.
It just seems that all of these service businesses are all using the same business strategy. The desired outcome is to pay the contractor less is how I see it.