An Invoice Is NOT a Check

You can't spend it until you have been paid. Today, I was checking out Hurricane Harvey damage on many losses in and near Port Aransas Texas. Working for the Texas Windstorm Insurance Association, TWIA. Some might ask why a restoration veteran would be working for 'the other side'? Well, I have analyzed restoration company's billings and procedures for many decades and I am still checking out claims practices and billings of restoration companies.

I've seen great work by restoration guys and I have worked with insurance companies to tear apart restoration company invoices and procedures. A bad apple will hurt our entire industry and I honestly try to be as fair as I can be. If you have a simple and fair invoice, you want me to be the guy who analyses your invoice.

Most who know me will attest that I call it like I see it. I ran large losses for over 27 years in 43 states and for decades I trained restoration guys and adjusters alike. You are going to have a very hard time trying to BS me about restoration practices.

Hurricane Harvey passed by Port Aransas on August 26th 2017. Today, more than two months later, I inspected commercial properties where there were still LGR dehumidifiers and fans going in condos. Condos that have been dry, I'm sure, for a very long time.

I looked at a strip mall that had standing water on the floor and I could see daylight through the roof. Now, I am supposed to analyse the restoration company's invoice for over $200,000. Their drying invoice that they have presented for payment. Other buildings I saw had open tarps on the roofs after the drying jobs have been completed.

This week I have witnessed the 'warehouse dump" in all of its glory. Equipment used just to run up the billings and kept on the clock for months. Massive amounts of rental equipment used, then the walls were torn out and the roof still has plastic tarps. Wasted! Just wasted time and money. Don't get me wrong, I have seen some great drying work also.

Now, like the adjusters, I really want to close these files fast and get them off of my desk too. I train restoration guys to make lots of money on large losses, and I really don't like tearing restoration invoices to shreds; but fair is fair.

Honestly what drying standard calls for dehus to be put in buildings with walls out that face the Gulf of Mexico? Is it possible to dry out a building with walls missing, and openings big enough to drive a semi-truck through? Let alone overlooking the Gulf of Mexico? A LGR dehumidifier placed in a room that has no wall or barrier to the outside ambient atmosphere can not drain the Gulf of Mexico. But it can sure run up a large bill over several months.

In my large loss workshops I cover how to get paid on large commercial losses, and you EARN the money. You give far greater service and save tons more money than you charge. That is supposed to be our job, save money and get them back in operation faster than without our drying and restoration. Otherwise, it just blowing fans and LGRs for the sake of running up a large invoice.

When you 'wake up' the adjuster or 'Peer Review Expert', with items on your invoices that are just plain ridiculous, do not expect to see the check for a very long time. When I open up an invoice that borders on a million dollar dry down, and the first thing I see is a $25 dollar a day charge for the cell phones on the loss and $5.00 a day for a bucket, do not expect me to be your buddy and push for payment anytime soon. There is a huge difference between using a bucket or mop one day on a home loss and billing for a number of buckets at $5. a day each, for months on a commercial loss.

Just becasue you have it on your invoice do not expect the insurance company to roll over and pay it. I know that guys teach to itemize every single thing on a job down to the tape gun, printer and bucket however, 60 days times a $5 gallon bucket charge, equals $300 for a bucket, THAT COSTS $2.96 at Walmart or $8.91 at Home Depot.

Would you pay a sub $300 for $8.91 bucket? Or $125 a day for a First Aid Kit? Neither will many insurance companies, in fact they go the other way and find an ANSI approved First Aid Kit at Sams Club for $19.95 and pay you $24. for the Fist Aid Kit on the entire job or may pay you for each bucket at $8.91 plus 10% & 10% ($1.80). Or they may just tear apart the invoice line by line, take months to review the bill and then deny many of he charges all together.

"Oh, but we have a signed contact with the insured, and it included our price list" you may claim. "Then get the extra charges from the owner who signed your contract" the adjuster may hit back with "I ain't paying you that amount".

MAKE IT EASY FOR THE ADJUSTER TO CLOSE YOUR FILE FIRST AND GET YOU PAID FAST!

My advice. Make it easy to get paid. You can hope for a pony and two new bikes on your Christmas Wish List, from Santa. But don't be surprised when your wish list gets taken down to reality. At lunch today, a seasoned professional claims examiner told me of a $1,800,000 invoice that was approved by the adjuster, came to his desk and he knocked $800,000 off of the invoice in less than 30 minutes. Now really guys, putting all of that BS on a bill will just make it harder to get paid and longer too.

I call it like I see it, that is as fair as I can be.

We have 3 seats left at my December 13 & 14 Large Loss Marketing, Mobilization, Management and Money Workshop at the DoubleTree Suites by Hilton, Disney World, Orlando, Florida, Go to www.jimthompsonco.com for information. Or call me at 727 424 2000.

Cheers<

Jim

Jim Thompson & Co. LLC.