MBA Third Party Contract Information

In the aftermath of the 2004-2005 hurricane seasons, MBA spent many hours reviewing the invoices submitted to our clients for repair and restoration work. Many of the invoices we reviewed were based on contracts provided by the company performing the repair and restoration work. Most of the contracts we reviewed were solely written to protect the interests of the contractor alone, and made no provision for insuring that the interest of anyone else mattered at all. For the most part these contracts were structured in a fashion to extract a great deal of money in a short period of time. The rate schedules and application of charges defined in these contracts were designed to inflate the cost of the recovery.

The invoices reviewed by MBA were consistently reduced by 20% to 40%. The reductions were for charges that could not be validated, charges that were not even defined or agreed upon in the contract, but in most cases the inflated and exorbitant charges were the result of the the terms and conditions actually annotated in the repair and restoration company’s contract.

In an effort to protect the interests of our clients in the aftermath of any future catastrophic loss event, MBA developed a contract from an unbiased perspective that is designed to protect the interests of all parties to the agreement. The MBA contract was written and copyrighted by professionals who have more than 90 years combined experience in the business of disaster. The MBA companies are in fact employed by corporations and insurance carriers to protect their interests, control their costs, and reduce their exposure in the aftermath of catastrophic loss events.

In the aftermath of any major loss event such as a hurricane, many attempt to use the catastrophe to further their own interests. And, many people fall victim to unscrupulous practices of profiteers in this and similar situations. If you find yourself in this circumstance the pressure to act is often too much and this tremendous sense of urgency leads us to sign anything to get started on our recovery. With this kind of pressure to respond, it is no wonder that so many of us are willing to put our trust in the person offering assistance in our hour of need without questioning their motives. But, the fact is that no one cares more about your loss than you do. And, no one will look after your interests better than you. This contract may help you do just that.

Once this contract was in place and it had had some exposure to the marketplace, insurance companies and corporations recognized that this contract could create a new standard for good faith and fair dealing in the business of disaster recovery. Contractors who recognized the advantages of having an unbiased contract to offer to their clients approached MBA for permission to use the MBA Third Party contract. If you wish to receive a list of contractors licensed to use the MBA Third Party contract contact MBA at mba@mbacomp.com.