NEW!!! Do not hire a Restoration Company which refuses to work with your Insurance! (and why).

NEW!!!!!!!!!! Information Regarding ONE company's "100% Unconditional Guarantee"

Updated May 17th, 2011

(For Updates look under "NEW! Answers")

WELCOME TO waterdamagecompany.net!

CONSUMER QUESTION

May 17th, 2011

From: ha*******@gmail.com

To: administrator@waterdamagecompany.net

To whom It May Concerns,

Here is what has happened to my house:

02/17/2011: My house had water damage. I called my insurance ( ********** ), nobdoy answered, I left them a message. Then, I called an emergency service ( ******** ), they came to work in my house from 5 PM - 10 PM

02/18/2011: In the morning, I told the emergency service ( ******* ) stop working in my house, and wait until I can contact my insurance. At 9 AM, I talked to my insurance on phone. An insurance representative told me have to let the emergency service ( ******* ) resume their work because of water damage I could not wait. In the afternoon, my insurance sent an adjuster ( *** ***** ) and another emergency service ( ******* ********* ) to my house. The emergency service ( ******* ) informed the adjuster that they will charge $**** for the job they were doing.

02/28/2011: The emergency service ( ******* ) sent a bill $**** to my insurance ( ******** )

04/29/2011: My insurance sent me a letter state that $**** for the job of the emergency service ( ******* ) is excessive. They only pay $**** .

05/02/2011: I received a bill from The emergency service ( ******* ) and late fee. They said that if I don't pay, they will hire a collection agency or filing a small claims court.

Here are my concerns:

1. I think that the emergency service ( ******** ) has to stop disturb me, and they have to contact my insurance ( ******** ) to resolve the dispute.

2. I do not see license number on name card of emergency service ( ******** ). I cannot search their license on website of Contractors State License Board either. Just in case, if ******* does not have a valid license, they probably did not dry my house out in a manner which meets accepted trade standards for good workmanlike construction, and my house probably has mold right now. Consequently, mold has been able to seriously affect the health of my family. Therefore, I will hire a licensed water damage restoration company to inspect my house to see if there is mold. If there is mold, ******* has to pay the fee for Mold Removal and Remediation.

Regards,

Don *******

ANSWER:

Mr. *******,

First of all, thank you for your inquiry. I am not an attorney, so I would suggest that you contact one if your situation persists.

Aside from that, I can tell you that if ******* is not a Licensed Contractor and they in fact did do the work of a Licensed Contractor; such as removing flooring, drywall, even sometimes soil, etc. They are liable for their actions and as such you can place a claim with the CSLB http://www.cslb.ca.gov/consumers/filingacomplaint/

If you would like to contact an Industrial Hygienist company to take samples in your house and ensure that the work was properly done, you should do so. Those are your rights as the home owner.

The best of luck to you,

-WDC Admin

LINKING YOUR WEBSITE TO OURS

April 25th, 2011

From: geor***@*******.net

To: administrator@waterdamagecompany.net

Good afternoon, Question

My name is ***** owner of *******. I just wanted to say GREAT Information on your website!!!!!! so valuable and would like to ask what is required to have link on my website so people get to see your information?

Thank you,

Geor*** *****

CEO

General Building Contractor Lic. ******

ANSWER:

Hello ******,

First of all thank you for the feedback. We look forward to providing more and more information regarding the industry. Feel free to send any submissions of your own, we welcome them.

There are no requirements, please post our link to your website.

Thank you,

-WDC Admin

REFERRAL FEES

March 5th, 2011

From: jet****@aol.com

To: administrator@waterdamagecompany.net

IS IT LEGAL TO RECEIVE A FINDER'S FEE IF WE REFER ANOTHER CONTRACTOR?

It is NOT illegal to refer a Restoration Company as long as they are Licensed.

YES! absolutely, in every trade in the world referrals cost money. Referrals from Google, Yellow Pages, existing Customers get incentives from referring family and friends and many more examples. Just make sure your refer a licensed contractor otherwise you could lose your license.

The CSLB does not at any point mention or suggest that finder fees/commissions are an ILLEGAL act between two PROPERLY LICENSED contractors. If you have further questions on this subject you may contact the CSLB or a Construction Lawyer (like we did) or if you would like we can refer you to ours (he is very good).

QUESTION: With regard to the information on your web-site, I'm wondering the information is correct. I'm trying to find out whether referall fees are legal or illegal. please advise...

thank you

ANSWER:

Thank you for your inquiry,

The CSLB has in the past said that it is and it is not illegal. It depends who you talk to. The reality is that there is no precedence and to our understanding no one has ever been prosecuted for referring a contractor and getting a commission for it. By no precedence we mean, that there has not been a case in which it has been shown, in front of a judge, that referrals amongst contractors is illegal.

There are and have been a few parties interested in making these referrals illegal. There have been various reasons why some people have pushed to make this illegal. It is easy, if you have the money, to get an overpaid attorney to use his contacts at the CSLB to TRY to get something passed or a law changed. However, this is very expensive and time consuming and has not happened to this day, although it has been attempted.

The law itself is extremely confusing in this case. One can arrive to the conclusion that one can and cannot do a referral program. It just depends on who interprets the law, but that is all it is, an interpretation.

One major reason someone may want to have referrals amongst licensed contractors be illegal, is because there are many unlicensed restoration companies out there. Some of these are multimillion dollar companies. Companies such as these are set up in such a way that they profit from breaking the law. So they hire an attorney to argue the fact that one CANNOT be licensed and receive or give referral fees.

If you look at it, nothing makes sense about making referrals amongst two duly licensed contractors, illegal. On the contrary one gets the idea that referring an unlicensed contractor is the thing to do.

We don't know what your business is or what answer you would rather have. All I can tell you is that if you are doing restoration- you NEED a license.

If you are a client- ONLY hire licensed contractors, that can match their company name to the license itself.

If you are a plumber or Insurance Agent- do not refer anyone who is not license, because you can lose your own license and/or be held liable for the unlicensed work.

We hope this helps,

-WDC Team

EXPOSING THE CON, PART 3

(The Company Set Up)

25 January 2011

The reality is that only a few Restoration companies are the bad apples. Surprisingly, some of the companies set up in this way are multi million dollar companies. One would suspect that their activities would not go unnoticed. Somehow, these few companies get away with grossing millions of dollars each year. One of these companies in particular manages to funnel money from one corporate entity to another and "set up" bogus subcontractors around them and advertise without a license and even get away without workman's comp and proper insurance!!

The Set Up:

Company A: Does their marketing without a proper Contractor's License. This company employs girls only as "hired guns". You have probably seen them throwing themselves at potential accounts. Many of these girls end up quitting or being fired and then harassed and followed by private detectives, in case they want to get a job in the same industry.

Company B: Exists as a shell corporation to use in case they need to come up with a License. This company just sits there.

Company C: Owns the trucks and equipment in case the other two companies get sued. Even though the equipment and truck is "rented" to company "D" it has the logo and information that company "A" promotes. It is as if they weren't even trying to hide their ways.

"Subcontracted Companies" aka Companies D: Their "subcontractors" are actually just employees for company "A" as they are hired and fired just as anyone else. These guys are set up without workman's comp or any other insurance that is designed to protect the client from bad labor. These subs pay company "C" to rent their equipment and trucks.

In short:

Helping such companies is helping an illegal organization(s). Aiding them to commit tax fraud, break labor laws and helping some rich jerk-offs get richer at the expense of clients who if they knew who was in their home would most certainly call the police.

The Remedy:

None of these guys are licensed, hence there is no license in their promo or contracts, so you know who they are. The remedy is, do not use them or refer them.

-WDC Team

EXPOSING THE CON, PART 2

(How they get Away with it)

14 December 2010

Seems most unlicensed restoration companies use the same trick. They Do Not have a license under the company name. For example "Restoration Emergency" (Not a real company) goes to market their services as a "referral company", positioning themselves as a middle man. Therefore, this company does not show a license, right?

Then this company prints their marketing materials without a license and teaches their marketing reps to say that they are not a licensed contractor, that they dont need a license. This company sends out carefully worded promo and campaigns, sometimes with the legal help of careless attorneys willing to walk the gray line.

When asked why dont they need a license? This company says that they sub out the construction or reconstruction to a licensed contractor who is "Construction Emergency" (Not a real company) or some other sister company. Usually this "other company" is just a shell corporation or just a name used to stop further questions.

This seems to suffice when dealing with a client who does not fully understand the nature of the law.

In reality what happens is that the "construction company" is not really more than a distraction as they never set foot on the property to do the work. All the work is done in reality by "Restoration Emergency".

Well look at it this way, all the marketing girls work for Restoration Emergency, all the promo says Restoration Emergency, all the trucks say Restoration Emergency, the referral checks come from Restoration Emergency, the contract the client signs says Restoration Emergency, ad infinitum. We know, we have copies of all of these on file.

Want more proof?

If you look at all the well established companies and all the large national companies, you will find that none of these other reputable restoration companies use this set up, not one.

Additionally, and most importantly, the logistics behind having a licensed and an unlicensed contractor doing the work at the same time is impossible, especially with out breaking laws.

Why?

Well if you are a contractor reading this it should be pretty easy to understand. Just imagine owning a Plumbing company without a license just to do your marketing and some stuff that doesnt require a license and then another company with a license to do the actual work. How workable is that?

It would go like this:

Restoration company goes out to do the estimate

The estimate comes back, Sewage in a crawlspace

OK you need a licensed contractor to remove the flooring to gain access and to remove the soil from under the house

But the Construction company is not there

So what happens?

Restoration company goes out to do an estimate

The estimate comes back, Mold in the living room

OK you need a licensed contractor to remove the sheetrock and insulation, maybe the carpeting as well, etc

But the Construction company is not there

In essence Restoration Emergency cant really remove, add, subtract, modify or alter ANYTHING. They cant even actually estimate or bid for the demolition or reconstruction aspect of the work without breaking the law.

If you have any comments, questions or anything else please write us to administrator@waterdamagecompany.net

-WDC Team

EXPOSING THE CON, PART 1

(The Con Job Dissected)

23 November 2010

This is the first article in a series of articles tackling one specific aspect of the con job being pulled over a few contractors and uninformed customers. Now realize that only two or three companies are pulling this trick, as far as we know most Restoration Companies, the honest ones, are not using this sleazy trick.

This series will result on the actual names of these companies being revealed. That is correct, the actual names and their phone numbers will be reveled at last. That is, unless, these companies finally seize their illegal activities.

So what is this con about? The trick here has to do with fooling the contractors and clients who use and refer them to other potential clients, into thinking that they are legitimate. Most contractors and most informed customers know that a company performing any work over $500 in your home will need a License given by the State. In specific a Contractors License whether it be a specialty license or a general license.

If an unlicensed contractor is doing work in your property and anything goes wrong, well you are out of luck. The effect this can have on you and your property are far too long to list, just Google it and see.

If a licensed contractor refers an unlicensed contractor, the referring contractor can lose their own license for referring the unlicensed contractor, plus fines, etc. These are the laws and regulations of the CSLB and you can find some pertinent information on our website under Resources or contact the CSLB (California State Licensing Board).

What is the trick? It is simple really;

1. These two or three companies promote themselves as "a marketing company for the restoration industry" they say "that they dont need a License for what they do", they dont refer to themselves as actual contractors.

2. These companies say they use/refer "a licensed contractor"

3. These companies will not advertise a License Number of their own in their marketing materials

4. These companies "sub-out" their work or part of it

5. These companies use complicated and elaborate schemes on how "they operate" all in order to give the appearance of legitimacy and confuse their clients and companies who use and refer them.

What should you do? Its simpler really; NO LICENSE = I wont use you.

-WDC Team

SUCCESS FOR THE WDC TEAM!

14 October 2010

After nearly a year of exposing certain restoration companies, who had been bending and breaking the law, we were informed that the largest of these fish is currently being investigated by the CSLB!

This company has been conducting business illegally in Northern California for many years, but was originally from Southern California. A record of unlicensed activity, labor law violations and dissatisfied customers finally caught up with this outfit.

It is rather impressive that anyone knowingly doing business outside the law would manage to expand and grow a business. It is impressive that the very people HELPING this business grow were the unknowing victims of their unlawful activity.

However, that has been changing with the support of the several observant people who have and are currently informing us and sending us proof of UNLICENSED activity in their areas. We must say that contractors, such as Plumbers for instance, have been our greatest informants. We have received copies of their Referral Contracts, flyers and promo material with NO license and other documents that may be a violation of State Law.

We have also found out through a friend from out of town that this very same restoration company being investigated by the CSLB has closed its activities in one of their offices. It is nice to see illegal outfits closing down and giving the chance for REAL businesses, HONEST businesses to prosper.

IN THE LOCAL AREA

We have been given some awesome news! The ESR method (Extremely Sleazy Representation) of which we had just written a report back in June, is now officially cancelled! (or it seems like it at least)

The "all girl marketing team" of a certain "Restoration Company" NOW has uniforms! That means properly buttoned-up shirts and skirt lines going to the knees. We may even see a man doing marketing for once!

I would not count on all sleazy activities to seize; this all girl marketing team is still up to its old tricks lying to vendors and promoting a company who is not licensed to do work in California and that is also under investigation by the CSLB.

Keep your eyes open for any unlicensed companies telling you they will "sub-contract" any work that requires a license or a specialty certification. Based on some information we have received this company has also begun promoting that they "sub out" specialty work. The reality is that they themselves CANNOT do any of the work. By saying that they "sub out" the specialty work they are trying to pretend to align themselves with the law.

"A Water Damage Company which performs ANY work over $500 labor and materials which includes either repair, removal, addition, alteration of the existing structure MUST be licensed (per Section 7026 of the California Licensing Code- this reference is under our "Resources" page). So in simple terms YES, 95% of water damage situations will exceed $500 in repairs and will also require removal, addition, repair or alteration of the existing structure".

Thank you for the support and please keep those emails coming.

-WDC Team

The ESR Method:

17 June 2010

The ESR method, an acronym for "Extremely Sleazy Representation", is used by a few restoration companies as a way to draw more business. Such companies employ an "all female marketing team", otherwise also known as "guns for hire".

This is quite possible the toughest item when speaking about certain restoration companies who encourage their all female marketing team to be, at times, very available and flirtatious. The complaints come mainly from the owners and managerial staff of companies who work with restoration companies. Receptionists, dispatchers and managers alike, are many times female themselves.

When one is trying to survive in a hard economy such as this the last thing one needs are "additional distractions" such as overtly flirtatious sales girls running around giggling and whispering into your staff's ears. Moreover, one of these restoration companies does not mind their sales girls making house calls. Yes, that is correct, this company collects personal information from YOUR staff and uses it to have their sales girls call to them personally. We have to admit, it is a pretty darn brilliant way to completely bypass the office staff. This restoration company does not have to bother with getting a nod from the owner or to make an appointment with the manager or even show up to be known.

If they do show up to your office, in the very few cases that they in fact do, you will not see one inch of skin. But talk to your technicians and your field supervisors and estimators, who themselves are pestered by these sales girls. Some people may not be bothered by this "Extremely Sleazy Representation" method, but we are sure the wives will.

As an additional point, what is so sexy about disaster restoration? So glamorous? It is business and a business in which the shortest skirt will NOT fix a homeowner's basement. The company showing more skin will not really impress a homeowner in distress, will not have the best service. I mean if a company is using the ESR method most likely they should spend less money on guns for hire and a bit more on doing the work right. Case in point, the company which was voted the one using the most guns for hire was also the one voted least reliable.

At the end of the day several of the Restoration Companies we have had contact with agree that one does NOT need to hire an all female team for sales. That in most cases it is counter productive, as what you want to communicate to prospective accounts and costumers is not that you can hire a few marginally attractive girls to do sales, but that you will have the right workers to get the work done properly. Besides, do you really think you are going to get lucky?

-WDC Team

NEW! Request for Information #2:

First of all, a big thank you to everyone who sent in these "referral contracts" and "work contracts" from Unlicensed Contractors. We received quite a bit of information regarding some Unlicensed Contractors and by exposing these illegal acts we are cleaning up the industry in our own backyard. Once again, thank you!

The Second Request we have is simple:

(a) Pictures of Unlicensed Contractors doing work that requires a License, i.e braking into drywall, removing flooring, installing or adding anything and/or doing any type of demolition. In short doing ANYTHING to a property over $500. Send us a picture of the uniform, the truck, the work in progress, etc. All information is kept confidential.

(b) Reports of such work performed by Unlicensed Contractors.

Here is our email.

administrator@waterdamagecompany.net

NEW! Request for Information:

We have been working, when possible, to get the information out there to the consumer. Information that has apparently helped a few honest people protect their homes, their businesses, their livingness, etc. We have been surveying the areas and taking questions and looking for answers. It seems so far, to me, that the NUMBER 1 concern for the consumers is the fact that there are two or three companies out there pushing these "Contracts". I have received a few questions on it and the same companies keep coming up, many people want OUT of these contracts, but they feel they can't with out getting into troble.

Here is what we need:

(a) copy of the "Referral Contract"

(b) copy of the "Certificate" they give you after signing the "contract"

(c) Work Authorization contract when the company starts work at your house

(d) any bids, estimates, scopes of work, etc you may have

You can scan these copies and email them to us at (administrator@waterdamagecompany.net). Whatever you have will help, all submissions will be kept confidential.

We will collect as many of these old and new documents and send them to a construction attorney to have him give us his thoughts on it. Then I will post the attorney's findings here under a NEW page for all to have handy.

THANK YOU

.

A Water Damage situation is normally an Emergency situation. However, it is important to remain calm and choose the correct contractor for your needs. It is also important to know a little bit about the laws governing the industry in this State.

California is a very strict State and many companies choose to NOT obey by its rules and/or walk the grey line in an attempt to avoid liability and the costs attached to proper licensing and taxation. Moreover, there are some companies who willfully misinform their clients, accounts and vendors in order to gain an advantage.

The information in this website is FREE and easily accessible to anyone interested in using, contracting or referring a restoration company. Most of the information in this website can also be accessed through the CSLB (California State Licensing Board). Much of the information we have attained for this website has also been consulted through a firm which specializes in Construction Law.

We hope you enjoy the information and choose the right company. We do welcome feedback and any information or leads regarding unlicensed contractors in California. You can also report unlicensed activity directly to the CSLB's SWIFT unit through their website in our LINKS page.

-WDC Admin