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When a hurricane, tornado, fire or other natural disaster causes property damage, companies like Harbro and Belfor jump to the occassion allocating massive resources and labor forces to help solve these property damage problems. While they are quick to get the damages repaired for property owners, payment to them for services is not as quick.

There are two primary reasons for this:

  1. Many of these repairs are paid from insurance claims, and these claims take time.  The damage repair and restoration company must wait for this money to free up and pretty much finance the job.
  2. Sometimes, property owners get the insurance money and run without paying the restoration company.  They may try to hold onto the money and strong-arm the restoration company into a discount for the services.

We’ve written about the special challenges facing these companies under the Damage Repair and Restoration tag here on the Construction Payment Blog.  As part of its efforts to provide the web’s most comprehensive mechanics lien resource to the public, and as a response to the recent concern about Hurricane Isaac, last week Levelset published a resource dedicated to Damage Repair and Restoration companies and the challenges they face with mechanics lien compliance.