Two documents, two purposes
Some providers offer both phases; others hand reconstruction to a general contractor. Either way, the agreements are usually separate.
Emergency mitigation agreement
- Signed in the first hours, often on site
- Covers water removal, drying, board-up, tarping, soot stabilization
- Usually billed on time, equipment and materials
- Scope can grow quickly as damage is found
- Should not commit you to reconstruction
Reconstruction contract
- Signed after scope is agreed with the insurer
- Covers rebuilding walls, ceilings, floors, roof and systems
- Usually priced against a written estimate
- May require permits and licensed trades
- Worth comparing bids even if time is tight
Clauses to read closely
| Clause | Mitigation agreement | Reconstruction contract |
|---|---|---|
| Scope | Is it limited to emergency work? | Does it match the agreed estimate line by line? |
| Payment | Does it assign insurance proceeds directly to the provider? | What progress payments are required and when? |
| Changes | How is added scope approved? | How are change orders priced and approved? |
| Cancellation | Can you end it once the emergency is over? | What happens if the project is delayed or cancelled? |
| Schedule | How often are readings and updates provided? | What is the expected duration and what affects it? |
| Disputes | Who resolves billing disagreements? | Is there a dispute resolution clause? |
Questions to ask before signing either one
- Does this document cover only the emergency work, or does it also commit the facility to repairs?
- Does it include an assignment of benefits or direction to pay, and what does that mean for my claim?
- Who pulls permits for reconstruction, and who is the general contractor of record?
- Will the landlord or lender need to approve this contract?
- Can my adjuster review the document before it is signed?
- What are the payment terms if the insurer pays late or disputes part of the bill?
Common questions
Is it a problem if the same provider does both phases?
Not necessarily. One provider can simplify scheduling and accountability. The point is to make the reconstruction decision on its own merits, after the scope is known, rather than committing to it in the first hours.
What is a direction to pay?
A document that tells the insurer to pay a provider directly. It can be convenient, but read what rights it gives the provider over the claim and whether it covers only their own invoice. Ask your agent or attorney if unsure.
General information for Commerce City, not a quote or professional advice. In an emergency, call 911.