Restoration contractors face a different set of business dynamics than the traditional new home builder or remodeler. Unlike the builder and remodeler, restoration companies deal with a third party in their contract negotiations and performance. The new home builder uses the market to determine the value of their product, whereas the restoration contractor is forced to perform services based on pricing models set by insurance underwriters.
Acts of God provide the source of need for restoration contractors in this leg of the construction industry. Typically the homeowner hires a contractor once the damage is created (by storm, winds, hail, fire, etc.) to restore the home back to its original condition. The insurance company funds the project. The contractor should be extremely experienced in construction because no two homes are built in a particular pattern.