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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.
 

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FremontREO said:
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.
Who doesn't want to pay less? I want a discount when I buy materials, so I am sure that my vendors see me the same way. I bet they say, "All contractors want is to pay us less and less."
 
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Amen brother.

We all want to pay less thus the reasons for the Dollar Stores, WallMarts, Costco rapid dominance in market share, the rapid rise of foreign brands over the last few decades but this is consumer driven.

Contracting is not immune to this by any means. What I see as the big difference is the influence of 3rd party administrators taking over contracting.

The 3rd party administrators are not consumer driven but profit driven and all us contractors are like sheep. No offense intended.
 

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FremontREO said:
Amen brother.

We all want to pay less thus the reasons for the Dollar Stores, WallMarts, Costco rapid dominance in market share, the rapid rise of foreign brands over the last few decades but this is consumer driven.

Contracting is not immune to this by any means. What I see as the big difference is the influence of 3rd party administrators taking over contracting.

The 3rd party administrators are not consumer driven but profit driven and all us contractors are like sheep. No offense intended.
But Fremont, it is only 3rd party driven if Contractors elect to work for the pennies on the dollar that they pay. Older Contractors are wise enough to stay away from these fly-by-nights. Young contractors who have little to no work experience can take-on the work until their balance sheets and equipment payments aren't being met...then the Chase Agents show-up.
Although the ML-18 banged us big time...you can still make a buck or two working with that scenario if your savy enough to keep your eyes open for bid work you come across, and be a little more "professionally experienced' than who your working for. If your in it for the long-haul and can diversify your clientele, I belive you'll at last these flash-in the pans.
 
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Wow, enlightening. I don't know enough about the disaster restoration/remediation industry to even hold an educated conversation about it, but that AMAZES me that even at that level their are birds pecking off the dead carcass lying in the street.
Now to see these little outfits like ServiceMagic and the like popping up wanting a piece of the pie from "referrals" gives a whole new perspective. Makes me wonder which end of the spectrum they come from and exactly what was purging through their heads when they sat around and schemed a way to skim off the top unconcerned about the trickle down effect.
 
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