Dave – UPHCA

The Plumbing Industry, it seems, have a few unethical companies who are receiving ‘referral fees’ from some restoration companies. Below are comments from a respected restoration company who is also a ‘Qualified’ member of the UPHCA sharing their insights.

Plumber referral fees are now possibly up to $1500 with certain restoration companies that give referral fees. The average mitigation job is approximately $3000 and these restoration companies are putting their referral fee amounts into the estimate for clients. These restoration companies are “fluffing” their estimates to cover the cost of the referral fees they are giving out. This can be costly to homeowners and insurance companies. The homeowners and insurance companies end up paying for the “fluff”, causing a snowball effect for anyone involved in the insurance industry, including the homeowners.

There have been several instances where the homeowners could have avoided putting in a claim with the true cost of the services under their deductible, but the “fluff” in the estimate pushed that homeowner to have to put in a claim, due to them not being able to cover the full amount of the mitigation and/or repair costs. There are also instances where a homeowner has a high deductible or there is no insurance coverage on the type of damage that occurred. Even on these type of claims, the referral monies are still hidden in the estimate. Homeowners have to pay out-of-pocket for the services in these cases, which could very well cause a hardship for the homeowner. Homeowners could also have issues with renewal of their home insurance policy, because there may have been claims put in that didn’t necessarily have to be a claim. There have been many claims that could have cost less than the homeowners’ deductible, but due to the referral fees, the cost of the mitigation or repairs became more than their deductible. This causes the problem of the homeowner having possible issues on renewing their insurance due to the amount of claims being put in under that insured’s home.

Insurance companies also incur these costs, because mitigation can be an emergency service. Adjusters (especially remote) don’t have the time or oversight to be able to protect homeowners or their respective insurance carriers from the restoration companies “fluff” due to the nature of emergency claims.

Overall, homeowners and insurance companies are the affected people that have to suffer the consequences of referral fees. Everyone else suffers too, in which these practices can make insurance companies increase premiums for all insureds.

After a great deal of complaining from the UPHCA to DOPL about Bald Dude Plumbing located in the St. George area, he continues to do business as a plumber, unlicensed and uninsured. He has never been a qualified/licensed plumber or contractor, not even a handyman registration with the state. Just 2 weeks ago one of the UPHCA members was called by an owner to repair and bring up to code a water heater replacement that ‘Mr. Bald Dude’ installed. DOPL has fined him several times, however he continues to do work. Here is a similar case that KSL just recently reported on. https://ksltv.com/520197/felony-charges-for-contractor-accused-of-ripping-off-several-utahns/.

Mr. Bald Dude has charges pending in Washington County since last July and still the County slowly moves the case along. Oh, by the way he has been convicted of drug charges as well in the past. Yes, this type of case doesn’t seem to be a priority for some, however his shoddy work can not only put homeowners potentially in danger but he also gives the plumbing industry and trade a bad name when he advertises himself as a plumber.

The 2023 Legislative Session is in full swing. The legislators started off very fast on some difficult subjects and proposed bills. However, it now has settled down to a dull roar, at least right now.

The UPHCA along with others in the industry are working on a couple of initiatives. The first is to provide an easier pathway for 16-17 year olds to work in the construction industry and rather than as a non-paid intern through the schools sponsored programs, allow companies to hire that age group and allow them to become interested in the trades. It seems this is something most want or see a positive potential opportunity, however many details are being worked on especially with the cost of workers compensation for this age group.

Another one that doesn’t see much light at this point is providing more resources to DOPL enforcement to ensure that those who are working unlicensed are prosecuted rather than just fined. The fine has become a cost of doing business for companies working outside the licensing statues. This can be a rather hot issue even within our own industry, but we need to do something. Here is the link to our most recent tracking list we’re following. Click Here

Creation of the UPHCA Apprenticeship Academy – Published January 2023

The Utah Plumbing & Heating Contractors Association is excited to announce the creation of an online Plumbing Apprenticeship Academy starting in January 2023. This DOPL and DOL approved apprenticeship program is designed to provide the individual student with achievement in an alternative way of learning to meet the educational requirements for being an apprentice plumber. Some of the features to this academy are:

Open Enrollment – Enroll at any time. The program is designed to a 12-month calendar curriculum.

Pace of Learning – Those who have more experience or highly motivated can typically move through the curriculum at a quicker pace.

Convenience/Flexibility – The curriculum is all online and can be accessed at anytime and anywhere to better meet the needs of the individual’s work schedule and personal time. There will be live webinars and in person lab experiences 6 times/year that will be required from all students.

Individualized Mentoring/Coaching – The program is designed for the student to be successful with individualized help, encouragement, and monitoring. Only those individuals who are committed and have the motivation for this style of learning will be accepted into the program. The employer will also be part of this process. An instructor will be assigned to each student to assist, mentor, and monitor progress.

Statewide – This program is for individuals living anywhere in the state. They will be required to attend 6 labs during the year at a location that might require some traveling, however.

On the surface the tuition seems more expensive, nevertheless when comparing the textbooks that are included and other incidental fees from other programs the potential student will find it comparable to other in classroom programs. When you also include the advantages listed the apprentice will receive a great value in their investment in this type of program.

The curriculum used is recognized by the U.S. Department of Labor, Employment & Training Administration, Office of Apprenticeship, and Utah Department of Professional Licensing (DOPL).

Please Note: Students can transfer from other apprenticeship programs with approval. However, there is no mechanism for transfer to a technical college apprenticeship program once enrolled in the UPHCA Academy.

What the UPHCA has been doing in 2022? – Published January 2023

Working with DOPL on various issues of concern! This is becoming more important every year! A couple of the most recent Maintenance Exception and the Incidental Plumbing Rule (Handyman). We have tightened up the Maintenance Exception substantially and the proposed rule change for the ‘handyman’ also tightens and defines better the issue of handyman scope of work.
Watching and navigating though issues the Utah State Legislature! This is a must for the industry! Legislative overreach is always an issue and concern. The association retained a Lobbyist Firm 5 years ago to represent our industry and trade at the legislature.
Conference in St. George in the spring provided excellent information. You can view any of the training seminars by going on our YouTube channel: https://www.youtube.com/playlist?list=PLNeFGO0aQf0jCieuMvLxIUfPqyLI9Snrd
CE Classes for license renewal both live in classroom and online classes. We have the best classes in the industry at a discount for members of the UPHCA.
Working on additional benefits for member companies including an ‘Qualified’ Program for the industry.
Outreach to high school students to consider our trade.
Other networking activities.
Out of State Recruitment Program – look at our website under the tab “Moving to Utah”.
The UPHCA Apprenticeship Academy received approval in November 2022 to start an online school to provide more flexibility for students and employers.
Look at our new website, much more functional and provides great information: uphca.net
We have developed our ‘blog’ and a new Pipeline Podcasts https://uphca.net/about-uphca/blog/.
The UPHCA is the only independent Voice of the Plumbing & Mechanical Industry in the State of Utah.

Sign Up Free