We're a supplier that works in gulf states. Are there any added protections for jobs that pertain to federal disaster relief, like Hurricane Ida?
I would probably need to know more about what you are supplying to answer that question. Can you tell me a little about your business?
We are a construction supply company with offices in Louisiana, where Hurricane Ida caused so much damage. As expected, we have alot of orders coming in for projects pertaining to disaster clean up. Most of the projects are with the Army Corps of Engineers but we have a few that are in relation to FEMA projects, supposedly. The concern is most of these are residential and we are unsure if there is any additional protection in cases of natural disasters and relief. Are any of these relief projects bonded by FEMA/government?
Sounds like you would be supplying projects which happen to be FEMA and Corp projects essentially but are residential in nature. I guess an example would be like the Blue Tarp program? Is a contractor coming to you to obtain the supplies or are you selling directly to FEMA/ Corp?
The Blue Tarp Program is what we're seeing mostly. As far as I know, it's primarily contractors that are buying the material.
I don't necessarily think that the public entities contracting with the contractors will change much for you. I would stick to payment up front for the supplies if at all possible. Often, contractors in these disaster areas get a little ahead of themselves, and I would be careful to provide much credit to them. That would leave you stuck with potential liens for supplies, the cost of which may be less than the legal action needed to recoup the price. Attorney's fees may be recovered, but that will always depend on the solvency of the contractor and the potential lien on the house.