Property Preservation

To: All SPI Contractors
From: Robert Klein
Memo 1112 Water Extraction, Sump Pump Installation, and Utility Requirements

This memo is to remind you of the correct procedures for bidding removal of standing water, sump pump replacement, and utility transfers.

Contractors should always check each property carefully for the presence of a sump pump. Every sump pump must be inspected for operability, and contractors should use available power (e.g. a generator) to test whether the sump pump is functional. If the contractor is unable to determine from a visual inspection if there is a sump pump present or if the sump pump is operable, the update should explain why the contractor cannot give a definitive answer as to the presence or operability of the sump pump.

If you discover standing water at a property, please immediately call SPI from the site to request emergency authorization to pump the water from the property. Please be prepared to provide a verbal bid to remove the water and, if the standing water is the result of a failed sump pump, to repair/restart/replace the sump pump.

Contractors must arrive at each property prepared to to complete emergency work. SPI staff will document the system with the name of the person who authorized the work and will send a confirmation text to the contractor.

If standing water is discovered after business hours (i.e., outside of 6 a.m. to 12 a.m. ET), you will need to submit a written bid. Follow up by contacting customer service at the beginning of the next business day to report the emergency situation and confirm that your submitted bid was received so that we can immediately follow up with the client.

Any time a sump pump is reported, the contractor should automatically transfer electric service unless the work order instructs otherwise. Approved bids to pump water or install a new sump pump must not to be completed until the electric service has been transferred. This is a serious matter: failure to transfer electric service can result in additional flooding, damage to a new sump pump, and the development of mold. If you install a new sump pump before electrical service is reinstated and there is any new flooding and/or damage as a result, you will be responsible and accountable for correcting any damage to the property. If you ever receive bid approval to install a sump pump or pump water from the property without authorization to restore electrical service, please contact the SPI customer service department at ext. 2158. The representative will clarify the work order with the client and will instruct you how to proceed.

If you are unable for any reason to transfer utilities, you must provide a contact name and telephone number for the electric company and its contact phone number when calling from the site, to allow the client to contact the electric company immediately.

If preservation guidelines require you to leave utilities on when a property has been winterized (e.g. radiant heating system; common water supply; regional specifications), once again, you should automatically transfer electric service unless the work order instructs otherwise. If the property requires other work that must be bid before the winterization can be completed, be certain that you arrange for the utility transfer so the winterization can be properly completed as soon as you receive approval for the work that you had to bid.

We have also received inquiries from clients about the necessity of bidding wait-time to transfer utilities. In many cases, our customer service staff have followed up on the submitted bids by calling the local electric company and have been able to have the transfer completed immediately. If a contractor submits a bid for wait-time but our customer service department is able to get the utility transfer with a phone call, that contractor will be placed on suspension immediately.

If there is a circumstance that requires you to bid wait time, please explain why you are bidding, and include the the name and contact phone number of the utility company representative you talked with. In many cases, if the delay is related to past-due amounts or required deposits, the utility company representative may be able resolve the matter with the client and proceed with the transfer.

Finally, please be advised that we have received some complaints directly from M&M contractors about excessive bids to install sump pumps. Sump pump bids generally should not exceed $200 to $250. If you need to exceed this amount, please provide a detailed explanation of the reason for the higher-than-usual cost.

Thank you for your ongoing cooperation and assistance. If you have any questions at all about the foregoing procedures, please contact your Regional Coordinator.