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There are many things that you can plan for in your business, but the most difficult events to plan for are ones that areout of your control. Homes, businesses,roads and even towns that took years to build canbe decimated in a matter of minutes by Mother Nature. In one fell swoop, your life—and your business—can change.
Last year was an extraordinary year in the United States for natural disasters, with four major hurricanes pounding Florida in six weeks and wildfires rampant in the West. This year has already seen earthquakes, tornadoes, landslides, wildfires and a major hurricane in Florida. No matter what part of the country you live in, you are susceptible to the whims of nature. Although thinking about such disasters is not pleasant, having a plan in mind can help your business weather the storm. Here are 10 things to consider if Mother Nature wreaks havoc in your area.
1) Power Supply
When a natural disaster strikes, one of the first things affected is the power grid. Outages can be limited to specific areas or cover an entire region. The more severe the disaster, the longer the power outage can last. Some of the hurricane victims in Florida last year didn't have power for weeks, which created a host of problems, especially in the hot, steamy Florida climate. The lack of a cooling system not only makes it uncomfortable, but also can exacerbate moisture-related issues such as mold and fungus growth (see No. 8, "Moisture," on page 56).
From a wood flooring contractor's perspective, no power means no work. An unacclimated environment is not the place to install floors or apply finish,and many essential tools won't run without power. Some contractors in hard-hit areas have resorted to purchasing generators to perform basic prep work. The 110-watt generators are sufficient to power lights, small machinery and power tools, but heavy duty 28,000-watt generators are required to operate larger equipment such as the big machine. Having generators and manual tools available can help you get a leg up on work if the power outage is major.
2) Money Supply
A natural disaster can affect money supply almost immediately and can have a long-term effect. At first,the lack of power and perhaps even phone service impedes the banking system. ATMs and credit-card machines are useless, and cash may be hard to come by. It's a good idea to have a stash of cash in a fireproof safe or safety deposit box in case of such emergencies.
If your work came to a halt because of the disaster, your money supply can be affected for a few weeks to a month after the event. Homes where you had jobs scheduled may be damaged or destroyed,and jobs that were waiting on final payment may never come through. During a major disaster, bankruptcies and foreclosures are rampant. During this time, your business still has expenses that need to be paid, and since wood floors are one of the last items installed in the home, it could be weeks or even months before jobs come your way. The first phase of disaster rebuilding can make for lean times,so it's essential to have money in reserve. Some contractors who have skills in other areas—such as framing or roofing—supplement these lean times with other types of work.
Once work starts to come in, your business needs to pay for labor and materials before a full payment is received from the homeowner, who is waiting for an insurance check. It's also a good idea to always have an adequate stock of essential materials and supplies,which can be in high demand during there building phase. Having good credit with your distributor and other suppliers is essential to get the materials you need immediately.
3) Transportation
Whether the roads are crowded,blocked, flooded or destroyed completely, getting around before, during and after a natural disaster can be challenging, if not impossible. If there is a warning that a major storm is approaching, the roads can be packed with people trying to escape the storm's path, going to the stores to stock up on supplies or filling up with gas. Other areas, such as barrier islands, are usually closed to incoming traffic 36 hours before the storm is scheduled to reach land. From both a safety and a logistical standpoint,it makes sense not to start any new jobs,but rather concentrate on preparing for the storm and getting ready for business after the disaster subsides. Make sure work trucks are filled with gas and ready to go after the storm hits.
After a disaster, damage to many roads and freeways can make transportation extremely difficult in a matter of seconds. During normal working conditions, a radio on the job site can provide entertainment, but during a natural disaster, it can be a lifeline. A battery operated radio lets you know the extent of the damage, where it occurred and what actions you should take.
4) Labor Supply
Managing labor is one the biggest challenges facing a contracting business in the aftermath of a natural disaster. Once the rebuilding phase begins, there is more work than you and your business can possibly handle, and there isn't enough manpower to get the job done. Some of your employees may even be lured away to higher paying construction jobs. Skilled workers of all trades are in high demand, and people from all over the country come to the area looking for a piece of the pie. The problem is that not all of these migrant workers are as skilled as they say they are, and some are downright charlatans—taking a customer's deposit, then disappearing without doing the work. As tempting as it may be to hire any labor you can find just to keep up with the onslaught of work, a disaster is not the time to lower your company's standards. Maintaining a properly trained staff helps keep the quality of your work—and your company's reputation—intact. In a desperate situation,unskilled workers can be useful for the most simple tasks, such as demolition work, which can free up skilled laborers for specialized tasks.
5) Materials Supply
Labor isn't the only shortage your company can face—building materials and supplies are in high demand and are often difficult to find after a disaster. If you weren't fortunate enough to stock up on materials beforehand, you could be waiting a long time to get plywood,flooring and other supplies. Your distributor faces the same challenges and will likely be just as short-handed. It's a smart practice not to let your materials supply become depleted. You also may want to line up alternate sources for supplies for emergency situations.
If your facility is damaged in the storm, you could lose precious inventory and supplies. Be proactive by keeping accurate documentation of your inventory and equipment, and update the list on a regular basis. Take photos or video of your inventory, and store the evidence in a safe place. Also back up your computer files nightly, and store the data in a secure location.
Keep in mind that other businesses associated with rebuilding after the disaster, such as rental equipment stores,are in high demand. After the earthquakes in California in 1994, the waiting list for moving vans and rental trucks was several months out. Contractors who needed temporary use of a truck to keep up with the demand of getting materials to a job site were out of luck. If you need a temporary warehousing facility, it may be nearly impossible to find. If you already have temporary warehousing, make sure there's a clause in your lease that allows you to opt out in case of severe damage.
6) Scheduling
Another aspect to consider in a disaster is how your company will handle the barrage of work that comes your way. The first wave involves estimating and paperwork. Chances are, there are only a few people in your business qualified to estimate jobs. You may have to train more people to write estimates or bring in temporary help, such as a retired or former employee. Another solution is to segment the process by having one person on the road who simply gathers the information then returns to the office, where someone else processes the paperwork. One person, usually the business owner, should be in central command. This person decides what estimates or work to consider, when and where it will be done, and who will do it. Some companies limit their work to previous customers or set geographic restrictions to help prioritize the deluge.
Once the work on paper turns into actual work, the focus shifts to getting the jobs done. To keep up with demand,your crews may need to work long hours, so establish a clear overtime policy and clearly communicate your expectations. If your company didn't have an organized work flow and scheduling system before, it becomes essential after a disaster. Post jobs in progress and those on deck in a prominent place for everyone to see. Regular staff meetings are also important.
It's crucial to keep your customers informed, as well. Once they get their insurance checks, they are anxious to rebuild and return to their homes as soon as possible. Set realistic time lines,and don't promise anything you can't deliver. Treating them fairly and with respect during such a stressful time can win you lifetime customers.
7) Insurance
After the wind, water, fire or tremor shave passed, the insurance adjustors move in. Because the insurance companies face the same labor shortages as your business, adjustors from all over the country are usually brought in to help expedite the claims process. In most cases, the homeowner will be the one dealing directly with the insurance company, but occasionally you may need to act as an intermediary.
Initially, the homeowner presents your estimate, and the insurance company issues a deposit to start work. Problems can occur if the insurance company disputes your charges or the work that needs to be done. Oftentimes, adjustors not familiar with the market will use a"standard pricing" sheet to determine rates for materials and labor. You don't want to leave an already devastated homeowner with the difference. Having documentation to back up average pricing in your area can help make the case for the homeowner.
Although some insurance companies seem to have deep pockets, don't be tempted to gouge them with exorbitant pricing. Besides the fact that such profiteering is unethical, it won't bode well for your company when it comes time for future insurance work.
Insurance companies may also dispute the work that needs to be done. They may opt for a quicker, cheaper fix rather than repairing the floor correctly. Stand your ground if the insurance company insists you begin work before conditions are acceptable. If you're called to the job site to argue your case with an adjustor, always be armed and ready with proper documentation of industry standards (see the "Information at Your Fingertips" sidebar on page 55).
8) Moisture
No matter which natural disaster hits,moisture will probably be an issue. Obviously, hurricanes, tornadoes and floods soak floors and create severe damage. In many cases, water saturation is so severe that water can be found in the subfloors months after the storm. The floor may even have buckled in some areas. Rather than trying to replace damaged areas or attempting to dry severely cupped or buckled floors, most contractors and insurance companies agree that the best remedy is to tear out the floor and replace it. Insurance companies are afraid of the dreaded four-letter word—mold. Depending on the severity of damage and manpower available, it also could take awhile to remove the moisture and repair major structural defects that allow additional moisture into the home. The longer the water remains in the floor, the less likely it is that the floor can be saved.
If the moisture damage isn't severe enough to threaten mold, and if the floor isn't permanently damaged, the original floor may be saved. Once all sources of moisture have been eliminated, removing the finish from a cupped floor helps release the moisture. To prevent crowning when the floor dries, lightly sand directly across the grain of the wood along the cup, retaining the edges of the boards. This light sanding should only remove the finish—not the bare wood.
Before you perform repairs, fill cracks or sand the wood, all moisture and humidity levels must return to normal. It's usually the general contractor's responsibility to bring in driers and dehumidifiers to remedy the situation. Make several visits to the job site to check moisture conditions of the subfloor and wood floor, and record all readings. Though everyone may be under tight schedules, don't risk a failed floor by working in unacceptable moisture conditions. Sanding a cupped floor that has not returned to normal moisture conditions will lead to crowning when the floor finally dries. Performing a quick fix to make the floor temporarily acceptable will only lead to a failure later, and at that point, the insurance company won't foot the bill to fix your work.
9) Structural Damage
Other disasters that don't involve water directly, such as earthquakes, can cause structural damage that creates moisture and subfloor issues that may not be detectible upon first glance. There could be a leaky pipe beneath the floor or in the wall, or water could seep through a window, creating enough moisture to cup a floor. Check the floors and surrounding walls with a moisture meter,and look for signs of water leakage around doors and windows.
Inspect the subfloor and the joists,and check for flatness of the subfloor. Sometimes, a minor subfloor repair or leveling of the subfloor will do, but if there are major problems, insist they be corrected before you take responsibility for the floor. The usual subfloor rules still apply for post-disaster repair—the subfloor should be clean, dry and flat.
10) Preparation
The best tool you and your business can have if caught by a natural disaster is preparation. Consider the natural events that are most likely to hit your area, and develop a plan and procedures for you and your crews to follow. Make your employees aware of these procedures and what they should do if they find themselves in a weather-related situation. Once everyone's safety is ensured, you can begin to focus on the future of your business. Being armed and ready for a natural disaster can help your business withstand the blows of Mother Nature.
Information at Your Fingertips
Be armed and ready with the industry standards in hand. Have your NWFA technical manuals ready for quick reference. The publications you might find most helpful for weather-related disasters are NWFA’s Technical Manual A100: Water and Wood and the NWFA Installation Guidelines. One copy is free as part of NWFA membership. To order more copies, contact the NWFA at 800/422-4556 (U.S.), 800/848-8824 (Canada), 636/519-9663 (international), or e-mail [email protected].