Get Paid, Not Played: How Contractors Can Manage Client Expectations

In the construction and restoration industry, clear communication is the foundation of getting paid for your work. A recent episode of The DYOJO Podcast, titled "Get Paid, Not Played: Managing Client Expectations as a Contractor," dives into a real-world case study that highlights the dangers of misaligned expectations and unclear agreements. The episode unpacks a troubling scenario where a contractor’s attempt to secure payment went awry, offering valuable lessons for contractors on how to protect their earnings and maintain trust with clients.

The case study involves a homeowner who filed a hail damage claim after being alerted to the issue by a contractor. The contractor suggested the damage might be covered by insurance, which proved true when the claim was approved. However, tensions arose when the homeowner requested a straightforward estimate for roof replacement. The contractor refused to provide one unless the homeowner shared their insurance scope of work, insisting they deserved the insurance payout since they had flagged the damage. The homeowner, wary of this approach, stood firm, stating the insurance payout was their business. After pushback, the contractor released the homeowner from an outdated pre-work contract but then submitted a surprise $1,200 invoice for unapproved "temporary repairs" and demanded the insurance payment. The homeowner’s insurance adjuster had to intervene, shutting down the contractor’s demands. The homeowner had only paid $375 via Cash App to a technician for a minor fix, which raised red flags about the contractor’s practices.
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This scenario underscores a common frustration for contractors: investing time, resources, and expertise into assessments and documentation, only for the client to choose a cheaper competitor. As the podcast host explains, contractors often use tools like DocuSketch, detailed photo labels, and Xactimate estimates to create comprehensive claims that secure insurance payouts. When clients take this work and hire someone else, it feels like a betrayal. To mitigate this, some contractors use pre-work authorizations or letters of intent, outlining that their services—such as travel, documentation, and estimating—come with a cost if the client opts out. However, as this case shows, such agreements must be clear, current, and mutually understood to avoid disputes.

The episode emphasizes the importance of a clear contract that defines responsibilities and expectations for both parties. A contract should outline what the contractor will do (e.g., assess damage, provide an estimate), what the client is responsible for (e.g., payment terms), and the agreed-upon scope and cost. Without this clarity, misunderstandings can escalate, as seen when the contractor sent a technician for a small repair, paid directly via Cash App, which the homeowner perceived as disorganized or unprofessional. The podcast suggests that contractors should communicate their process upfront, detailing potential outcomes—approval, denial, or partial coverage—and how each will be handled. This transparency builds trust and reduces the risk of surprise invoices or disputes.

Another key takeaway is the need for a code of ethics in the industry. The host references the Restoration Industry Association’s Code of Ethics and advocates for a standard of restoring properties to pre-loss conditions using materials of like kind and quality. This principle, dubbed "letting the structure speak," guides contractors, adjusters, and clients toward a shared goal: repairing damage based on its source and extent. By aligning all parties around this standard, contractors can avoid gray areas—like unapproved repairs or inflated invoices—that erode trust.

The episode also highlights the contractor’s perspective: the frustration of feeling taken advantage of by clients who benefit from their expertise but don’t commit to the job. To address this, contractors should screen clients carefully and set expectations early, positioning themselves as trusted partners. The host suggests using scenarios like this as training opportunities to refine communication strategies and ensure alignment with clients who value their expertise.
Ultimately, getting paid as a contractor requires proactive communication, clear contracts, and ethical practices. By setting the tone early, documenting agreements, and adhering to industry standards, contractors can avoid the pitfalls of surprise invoices and unpaid work, ensuring they get paid—not played.