Experience Files

I've been asked a few times: "The adjuster said he needs both a signed authorization and a signed certificate of completion before he'll issue payment... I don't know what a certificate of completion is, and the homeowner isn't returning my phone calls? How do I get paid?"

To put it politely, unless you have a time machine, you're in a bind. Hindsight is always 20/20, but this scenario underscores a critical business principle: you shouldn't do anything beyond providing an evaluation or an estimate until your client has signed a contract to perform work (or whatever document you prefer).

Working on a project without sorting out financial responsibilities upfront is akin to gambling with your company's resources. While most clients will meet with you afterward and sign the necessary documents to ensure you get paid, there will inevitably be times when a client realizes they might have a loophole regarding payment for services rendered. Perhaps they've spoken to a coworker who had a similar water damage, and their restoration experience was different, suddenly calling your processes or workmanship into question.

You never want to find yourself in the uncomfortable position of sitting on a client's sofa, hearing them say, "Yeah, I'm not signing this." That's a direct path to an unpaid invoice and a frustrating legal dispute.

The Importance of Upfront Authorization

A signed contract is your foundational legal agreement with the client. It confirms they understand and agree to your services, scope of work, and billing procedures. This document is your primary protection and gives you the legal standing to pursue payment.

Understanding the Certificate of Completion

A certificate of completion (or satisfaction) is a document, typically signed by the client, that confirms the work has been finished to their satisfaction according to the agreed-upon scope. It's the final sign-off that the project is done and ready for billing. Adjusters require this to ensure the work is truly complete before releasing funds, protecting the insurer from paying for unfinished or disputed work.

Preventing Future Payment Issues

To avoid this precarious situation:

• Never start any work without a signed authorization. Make this a non-negotiable company policy.

• Explain the Certificate of Completion upfront. Inform the client about this document at the start of the project, explaining its purpose and that their signature will be required at the project's conclusion.

• Educate the Client on the Process. A well-informed client is less likely to cause payment delays. Clearly explain the role of both documents in getting your services paid for by their insurance.

Protect your business by securing the necessary paperwork before, during, and after every project.