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I live in IL. I got a substantial water damage on the first floor and in the basement. From the restoration company I know it will take about 5 weeks to restore the building. Unfortunately, I am not familiar with the contracts. I know the restoration company wants to get the whole check from the Insurance company upfront! Is that a common practice? I have this check currently.
I understand there must be start and finish dates, and description of all works to be performed in the contract. What else, please?
Not sure what is normal for restoration work, but typically construction work is invoiced and paid monthly based on progress with 10% withheld to guarantee completion and performance of any punch list items. Ask your insurance company.
restoration company wants to get the whole check from the Insurance company upfront!
Not only NO but hell NO! What's to keep the guy from cashing the check and driving off? It happens everyday. What leverage do you have with the guy to do good work? What leverage do you have to get the guy to finish? What leverage do you have that would keep him from using the cheapest crap available? He may want the check up front just like people in hell want ice water but he'd be in hell before he would get ANY money from me. Find a reputable company that doesn't need the money up front, one that has the financial backing to finance their own jobs. This guy is working out of Hip City National Bank (his wallet) and the scam alarms should be screaming at you.
50% up front for a 5 week job? There is a risk, but it is not excessive.
We might do that at our company if we really needed that particular person instead of someone else but we would try to negotiate it first. (We are a 1.5 billion/year construction company).
Be sure they show you insurance certificates up front and do not give them the final payment until you have everything inspected and it if fond to have been completed properly.
Perhaps more importantly is to get and check their references. Fins someone who had to have them do corrective work or warranty work after the fact and find out whether they honored their obligation without a fight. The reason you hold money back is to ensure 1. they complete the work and 2. they fix any mistakes.
If it's the same contractor, he's trying to scam you out of whatever he can get at this point. I wouldn't give the guy the time of day or 50 cents as you're going to lose both.
My son was in the disaster restoration business which was a national franchise. 80% of their work was paid by various insurance companies. They rarely worked direct with the client on payment issues.
I think the OP might have run up against a "handyman" that calls his company so and so restoration. My advise is use a nationally known company like Rainbow, Service Master, ServPro, etc.
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