Production Office Participation Agreement With SERVPRO Storm Site

Transcription

1 SAMPLE PARTICIPATION AGREEMENT SERVPRO STORM SITE (SSS) This Sample Participation Agreement has provisions which meet Servpro Industries, Inc. s requirements for participation with SSS. The Agreement was prepared as an outline for your assistance. If you have any questions regarding particular ramifications of this Agreement, please consult your attorney, accountant or other advisor. Production Office Participation Agreement With SERVPRO Storm Site Agreement and Procedures between SERVPRO Storm Site Franchise and Production Office working with Storm Site. The following terms and conditions apply to all losses that are jointly produced by the SERVPRO Storm Site Franchise SSS and the Servpro Franchise hereafter referred to as Production Office as identified on the signature (individually Party and collectively Parties ) when a Servpro Storm Site is declared by Servpro Industries, Inc. To be eligible to produce work for a SSS, any and all Production Offices must be Servpro franchisees in good standing and must have signed and be in full compliance with the current SERVPRO National Accounts Participation Agreement NAPA. 1. All Production work and services performed by or on the behalf of Production Office shall be in the name of SSS. At the discretion of the SSS, Production Office may be requested, but not required, to provide additional personnel, including an owner, to assist with production management. Production Office acknowledges and shall represent that it is an independent contractor for SSS, and is not acting in any capacity as an agent or employee of SSS, nor shall it represent itself in any capacity other than that of an independent contractor. Production Office agrees and understands that any and all work at the storm site location shall only be at the direction of SSS but production methods and techniques shall be at the professional judgment and discretion of the Production Office. Production Office agrees and understands that Production Office is to perform services as approved in advance by SSS. SSS shall have no obligation to pay Production Office for any work performed by Production Office outside of the scope of services unless directed to perform such additional services by SSS. 2. In return for work and services performed, the SSS shall receive 10% of the collected invoiced amount. 3. Production Office shall receive 90% of the collected invoiced amount subject to the following adjustments:

2 A. The Production Office shall pay 5% of the total invoiced amount collected on certain jobs that fall in the Operating Territory of a SERVPRO franchise ( Local Franchise ). To qualify for this 5% territory fee, the Local Franchise must sign a Local Franchise Participation Agreement with Servpro Storm Site. This 5% fee does not apply to the following: i. Any jobs received by SSS from the Servpro National Call Center; ii. Any jobs received by SSS from Servpro National Accounts and Select National Accounts clients; iii. Any jobs referred to SSS by Servpro s Commercial Large Loss Division; iv. Any jobs received by SSS from ERnet Property Resource Group, LLC clients; v. Any jobs performed by crews dedicated to Servpro National Accounts and Select National Accounts clients; vi. Any jobs performed by Servpro extreme or large loss response teams; provided, however, Local Franchise will receive compensation as may be described in any separate participation agreement with such teams. B. Production Office must provide a Team Leader or Franchise owner to communicate with the SSS and manage the production team while out of town. This Team Leader shall perform quality control checks on all jobs performed by the Production Office prior to submitting jobs to SSS as final and complete. The Production Office shall determine what percentage of each job will be paid to the Team Leader and notify the SSS in advance. The Production Office will pay the Team Leader directly. The Team Leader shall go to the loss site and perform a Quality Control Check to ensure the job has been completed properly, based upon industry standards, including the SERVPRO system standard operating procedures. The Team Leader shall sign and date the invoice acknowledging that they personally observed the loss site after completion by the Production Office and that work meets standards set forth herein and any established by the SSS. In the event a Production Office responds without a Team Leader, and the SSS manages the paperwork process and performs on site quality control checks, the SSS will retain an additional 5% as compensation for this additional service. In this event, the Production Office shall receive 5% less for its production services. Retainage. If the Production Office provides a Team Leader to perform quality control checks, the SSS may retain 5% of the amount due the Production Office for 60 days from the date of receipt of payment after billing. This retainer is to be used in the event re-servicing is required, to compensate the re-servicer selected by the SSS. The Production Office shall have the first opportunity to re-service their jobs. Re-service must be performed timely. In the event all re-servicing is performed for less than the retainer, the balance shall be forwarded to the 2

3 Production Office within 10 days of completion of the re-service. If re-servicing exceeds this retainer, Production Office shall pay the difference to the SSS. The SSS reserves the right to discharge a Team Leader from quality control responsibilities in the event it is determined proper quality control procedures are not being followed. C. The 10% fee referred to in Paragraph 2., above, may be reduced to 5% should the Production Office sell a job and perform production services for a customer that is not a result of a lead provided by the SSS, local franchise or Servpro s National Call Center. On such jobs, the SSS receives 5%. The provisions described in 3.A. and 3.B. above are still applicable. 4. Proper job documentation, including: First Notice of Loss (FNOL), Authorization to Perform Services, Estimate ESX file with Storm Site Name and Address at top, Tick Sheets (if SSS is to produce Estimate), Water Damage Emergency Services Report, Customer Information Form, Water Damage, Monitoring Report, Water Damage & Equipment Monitoring Report (Daily Reports), Mobilization Disclosure Form, Job Brief, Job Diary, Customer Equipment Responsibility Form, Authorization to Remove Dehumidification/Drying Equipment, Certificate of Satisfaction, Drying Workbook and any other client or insurance company specific documentation MUST be legibly completed and signed by the customer and Production Office, where appropriate. Production Office will submit the previously described items to the SSS in order to process payment for all completed work. This paperwork must be submitted to the SSS upon completion of each job. The SSS will review the paperwork for accuracy. If no modifications are necessary, the estimate amount will be used to invoice the customer by the SSS. 5. Production Office shall submit a standard SERVPRO estimate to the SSS for each completed job. Upon final review and approval of the job file paperwork, the SSS shall submit the estimate to the customer or insurance company for payment and send an to the Production Office notifying them that a job has been billed. This will identify the amount for which the SSS has billed for the work and the amount for which the Production Office should invoice the SSS. Payment will not be made from SSS to a Production Office for any jobs for which an invoice has not been received by the SSS from the Production Office. Production Office will be responsible for royalty reporting for funds received from SSS. 6. One hundred percent (100%) of the amount due Production Office will be paid by SSS within twenty (20) business days after receipt of payment from customer(s). In the event there are unpaid temporary labor bills, product bills or other expenses outstanding associated with the Production Office s participation in the storm event, the SSS may withhold an additional ten percent (10%) of the gross amount due the Production Office pending assurance that all expenses have been paid by Production Office; if any of such items are not paid, SSS may apply any such withheld amounts to amounts owing by the Production Office. 3

4 7. All parties to this agreement are required to pay royalties as per their SERVPRO Franchise License Agreement on all proceeds received. 8. Production Office agrees to comply with all Federal, State and Local laws, regulations and ordinances including, without limitation, those governing occupational, safety and health. Production Office shall be solely responsible for any fines, penalties or damages attributable to Production Office and shall hold SSS Franchise harmless for any such fines, penalties and damages. Production Office, at its own expense, shall maintain any and all types of insurance in accordance with Servpro Industries, Inc. s requirements, which shall also be applicable to any subcontractors retained by Production Office and approved by SSS. 9. Production Office agrees to indemnify, defend and hold harmless SSS from and against any and all claims, suits, causes of action, demands, damages and expenses including, without limitation, attorneys fees and expert witness fees ( Claims ) arising out of, relating to, or in connection with any and all wrongful and/or alleged wrongful acts or omissions of Production Office in performing work pursuant to this Agreement. Upon a valid and bona fide request from either the SSS Franchise or the Servpro Industries, Inc. Large Loss Manager, Production Office agrees to tender any such Claims to its insurance carrier for coverage; provided, however, such a tender will not relive Production Office of its obligations under this provision to the extent the insurance carrier fails to pay such Claims, does not cover such Claims or does not cover the full extent of such Claims. 10. Production Office agrees to be responsible for and bear all costs of the production work associated with Production Office s jobs. Production Office also agrees to be responsible for and bear the cost of all travel, lodging and related expenses incurred by Production Office in relation to the jobs produced. The SSS will arrange a source for qualified temporary labor if needed. Production Office must provide and ensure that each temporary laborer is wearing a green t-shirt with the SERVPRO logo. (May be available for purchase from SSS.) Cost for temporary labor will be the sole responsibility of the Production Office. (Most temporary labor sources will require that you complete a credit application and provide billing instructions.) Temporary laborers are required to clear background checks in accordance with NAPA participation criteria. 11. If a customer files bankruptcy or an account is otherwise uncollectible after six (6) months, no payment is due Production Office for work on that account. SSS Franchise agrees to assign all rights for collection to the Production Office in the event the Production Office wants to pursue collection for any amounts due and owing and unpaid after six (6) months. 12. Production Office agrees and understands that all work must cease immediately upon notification of such by SSS. Work may only commence upon notification by SSS to Production Office. Any conduct that is less than exemplary by either a Production Office owner and/or a Production Office s employee(s) and agents and/or permitted 4

5 subcontractors will be documented and the Franchise may be notified in writing. In the unlikely event that such conduct persists beyond the warning, the Production Office will be dismissed. Production Office will invoice for work properly completed to date and time of STOP WORK NOTICE. 13. This Agreement shall only be modified in writing, signed by a duly authorized representative of each Party. This Agreement contains the entire understanding of the Parties hereto with respect to the subject matter hereof. Any prior written or verbal communications and/or agreements and/or contracts are superseded by this Agreement. 14. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 15. Production Office understands that there are some risks inherent in any undertaking and, with respect to decisions made by SSS, Production Office agrees to accept all such decisions as final. 5

6 As owner of the SERVPRO franchises named below, I have read and agree to the terms and conditions of this Agreement, and do hereby agree to participate in accordance with all the provisions set forth in this Agreement. Date: Date: Print Franchise Legal Name Print Franchise Legal Name { } Corporation { } LLC { } Corporation { } LLC { } Partnership { } Sole Proprietorship { } Partnership { } Sole Proprietorship d/b/a: SERVPRO of d/b/a: SERVPRO of Production Office Owner SSS Franchise Owner 6