20% sounds normal for a general contractor.

 

Neighbors trying to get small remodeling jobs done tell me the market is so
good right now the contractors only want big projects like $100K+ and
flat-out tell people they don't want the smaller jobs.  Not sure if that's
what you are running into, or fraud as you suspect.

 

I have a certain amount of sympathy for a contractor doing a small project
which maybe involves the same a mount of work pulling permits, getting
inspections, supervising the workers, and meeting with the homeowner as a
larger project, yet pays a smaller amount.  But insurance companies weren't
born yesterday and presumably know what it should cost to get the job done.

 

 

From: AF <[email protected]> On Behalf Of Sterling Jacobson
Sent: Tuesday, March 5, 2019 8:29 AM
To: AnimalFarm Microwave Users Group <[email protected]>
Subject: [AFMUG] OT Insurance Fraud?

 

I have an insurance claim for a home project that pays out about $15k.

 

The insurance itemization shows a 10 and 10 overhead and profit for each
item, so 20 percent of that $15k goes to the restoration company for
management or whatever.

 

When I was given a budget for materials to pick on restoration it seemed
rather low so I challenged them on their itemization.

 

They flat out told me 20 percent isn't enough, so they take out 45 percent,
or roughly half of that $15k goes to the management/restoration company
instead of 20 percent.

 

The rest is used for the actual labor and materials to get the job done.

 

Is that normal? 

 

Should I just let them eat all that money, or should I be shopping around
for another restoration company that thinks 10 and 10 is enough for them?

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