Category Archives: FAST

PPI….HUD…DBA…and Of Course…Labor

Organics Admin
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Organics Admin

COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
Organics Admin
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For some time now many have wondered how the Davis-Bacon Act (DBA ) affects the Property Preservation Industry (PPI). Many think it has no bearing on the PI unless an individual property goes over X-amount of money.
One of those people, IMHO, has misinterpreted the wording of the act. Gene O’Neil, VP of For What It’s Worth, feels that the DBA is only in play if the “bid” is over $2000.00. Mr. O’Neill has been an outspoken voice for Labor in South Florida these past couple years…

Mr. O’Neill was also a key player in assisting a former member of the National Association of Mortgage Field Services, Bret Douglas, in establishing FAST. An organization designed to assist Labor. I caught up with Bret thus past week and talked about “diversification”, before we get to that conversation lets us address the DBA and the precise wording that puts it in play when any if you sign a contract with the Federal Government, or are completing work for a government agency.
The exact wording us as follows…

The Davis-Bacon Act, as amended, requires that each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and …

Notice the word is contract…not bid…many may not know this but there are cases in the courts over this issue. I said it six years ago and I will say it again. Those that actually have payroll records will come out ok. Those without…you have left a tremendous amount of money on the table. I have been screaming…pay yourself at the end of the week…many think I enjoy hearing my annoying ass talk.
The reality is:

I. Without paying yourself you have no way of knowing exactly how much a service costs to complete
II. You are not paying into your SSI fund
III. You are not paying UEID fund and will not be eligible for Unemployment benefits should you suddenly find yourself with no work.
IV. You’re not paying taxes.
V. You LOSE a serious tax deduction.

Now none of that may be all that important until you’re audited. However, when it comes to making a claim against AMS, PK Management, Asons, or any other Order Mill that carried and serviced the HUD contract, do I really need to spell it out??? If you have no payroll records because you don’t have employees because “YOU complete all the work”, well you have nothing to claim.
Here us how this works. If…in this case more like “when” the contract goes over $2000.00 DBA kicks in. Now the argument becomes, is the contract you sign with an order mill worth more than $2,000.00??? This becomes extremely important to you as a business owner paying Labor. Under the DBA Labor should be paid what is called “prevailing wage”,(PW).
Now PW is different for every skilled trade. In addition to the Federal guide lines for PW, most states have their own rules and laws governing PW. For example, the PW rates under the DBA  in California are higher than Nevada because of cost of living differences. Nevada PW laws in compliance with the DBA read in part,

Prevailing Wage Rates include the base rate as well as all applicable fringes.
NRS 338.010(21) “Wages” means:
(a) The basic hourly rate of pay; and
(b) The amount of pension, health and welfare, vacation and holiday pay, the cost of apprenticeship training or other similar programs or other bona fide fringe benefits which are a benefit to the workman.

NRS 338.035 Discharge of part of obligation of contractor or subcontractor engaged on public work to pay wages by making certain contributions in name of workman. The obligation of a contractor engaged on a public work or a subcontractor engaged on a public work to pay wages in accordance with the determination of the Labor Commissioner may be discharged in part by making contributions to a third person pursuant to a fund, plan or program in the name of the workman.
In accordance with AB 172:
The Labor Commissioner shall determine the prevailing wage to be 90 percent of the rate determined pursuant to paragraphs (a), (b) and (c) for:
(1) Any contract for a public work or any other construction, alteration, repair, remodeling or reconstruction of an improvement or property to which a school district or the Nevada System of Higher Education is a party; and
(2) A public work of, or constructed by, a school district or the Nevada System of Higher Education, or any other construction, alteration, repair, remodeling or reconstruction of an improvement or property of or constructed by a school district or the Nevada System of Higher Education.

That tells us what type of work under the DBA  will classified eligible for PW pay scale. But let’s get back to the issue. Your contract. Currently the argument in the ccout is

the contract in it’s entirety, taken as a whole is worth well over $2,000.00.

Of course the other side of the equation is each work order is a single contract, which is what the NAMFS. Offender Members are claiming. The rebuttal?????
It is the contract that was originally bid. In the original bid the order mill (what is called the awardee), should be bidding and allowing for the DBA in the cost if completing the job.

And as the Bard would say…There in lies the rub.
I have long stated if you want me to assist you in fulfilling your contractual obligations I need to be part of the negotiation process. While Mr. O’Neill has been vocal for Labor, unlike Mr. Douglas who has diversified and stopped assisting NAMFS financially, Mr. O’Neil continues to support the organization. And although he is a rational voice for labor in the PPI, I have to disagree with him on what he claims… this is a bid issue. It is far from a bid issue, as the wording states it’s a contract issue. Hope you keep good employment records. If you don’t already pay yourself, start. If you need assistance understanding how that works get a hold of me, it’s a pretty easy fix for your company. For more Information on the subject.

Can a company diversify in the PPI and make it selling the same services???

Well to answer that question a couple industry veterans. I caught up with both Bret Douglas if Ironclad Preservation and Matt Steffen.

Bret Douglas...Founder Ironclad Preservation Inc.
Bret Douglas…Founder Ironclad Preservation Inc.

Bret Douglas;
How are this g shaping up for Team Ironclad now that you no longer depend on PPI work as the majority of incoming revenues?
Bret: We are extremely happy that Team Ironclad took the liberty to diversify. If we had not started that process we would not have survived this year.

Sales and volumes in preservation work have plummeted. The inventory has all but dried up.
How grim were things?
Bret: We as a team were faced with losing our compound due to a two year construction delay. We finally have settled that issue and are pleased to be moving into a new much larger facility by Jan first. Our new address will have two warehouses side by side,7500 main and 3000 for the equipment. Almost 11,000 sqft for our three enterprises
You diversified into three departments?
Bret: We have split our firm into three sections.
Team ironclad is comprised of preservation, landscape management and FAST association.
Essentially providing PPI. Services to the public, so when will we hear about a new FAST event?
Bret: We are shooting for a February or March fast event as with the move we are unable to pull off a fall event
When I spoke with Matt, of course the conversation included a couple questions about the HIPR service NAMFS offender members were demanding be completed with unqualified personal and in an extremely dangerous manner. Many of you may remember Matt sent the service specs into OSHA, being this was for HUD, naturally OSHA asked if someone was crazy???
Matt was one of the first in the industry to diversify and seek private sector clients.
So how have things been since you diversified??
Matt: We diversified upon necessity. Their are virtually NO foreclosures here in Montana. 64 in the entire state last month to be exact. That said, we do provide the same services to the private sector
When you heard the news from Foreclosurepedia, what were your thoughts?
Matt: When Paul told me the news I was glad it finally came to light and people will now be held accountable.
Oh come on now there has to be a tiny little part of you jumping up and down…
Yes I’m ecstatic!!!
I know that last sentence is said in jest. Matt as myself Paul Williams and all the others that refused to complete this dangerous and in many places illegal practice of back-feeding electricity into a home, well truth is folks, those that refused got a black mark but we all acted in the best interests of our employees and our companies.
No amount of money is worth sacrificing your employees health nor your companies integrity.

Until Next Time…
Happy Gardening

Freddie, Fannie, Fees & the Emplactors

Organics Admin
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Organics Admin

COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
Organics Admin
Follow Me!!
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With the recent reduction in fees paid out for completed services on foreclosed assets belonging to Freddie Mac (FMC) and Fannie Mae (FM), especially after Freddie Mac announces that they MADE…profited….2.9 BILLION I would be remiss not to discuss the Independent Contractor (IC) and Emplactor issue in the Property Preservation Industry (PPI).
As many of you know that have followed my writings and those of the Lunatic in The Mountain’s writings, for many years now we have been saying g that there are no IC’s in the PPI. Six years ago I coined the term Emplactor. While Oxford hasn’t acknowledged the word Emplactor, it never the less is a fitting term for a misclassified employee as an IC.
Currently this issue has started to become serious to those agencies that depend on the employer tax contributions. Especially since our elected officials have become so irresponsible with the spending of our tax dollars. I often wonder what would happen to our government if every working stiff went into work and changed their W-4 to 20 dependents so no taxes would be taken out of their checks for the federal and state governments??? Of course employers would still have social security and unemployment insurance division liabilities. I highly doubt they would object to the lower contributions.

How do you think our thieving lying elected officials could operated without cash flow?? How long can you business function? Who would loan our government money to function??? You see folks our government just like the Offender Members Of THE NATIONAL ASSOCIATION OF MANAGEMENT FOR STEALING UNDER THE IRCHISTRATION AND DIRECTION OF ERIC MILLER need cash

Bret Douglas of Ironclad and Eric Miller, Executive Director of NAMFS...Possible Labor Representarive on the BOD of NAMFS???
Bret Douglas of Ironclad and Eric Miller, Executive Director of NAMFS…Possible Labor Representarive on the BOD of NAMFS???

flow to operate. Without cash flow on a daily basis you can not operate. Just ask all the members if labor that were bankrupt buy Shari Nott, Heather Berghorst, Amanda and Adam Buczek how important cash flow is.
Currently there are several lawsuits across the country not only in the PPI but in various related industries. Since the PPI is part of the real estate industry it may behoove everyone in the PPI to pay attention to what Real Estate Agents are claiming in the recently released White Paper by the National Association of Realtors (NAR), as the similarities of Realtors issue sure echo those of the PPI.
Before we get I to the snipIf any of you think this issue. ..Eric Miller and your merry band of Offender Members is whom this paragraph is directed to, since they are too greedy and stupid to remedy the issue on their own…it will not. Not as long as Mr. Williams and myself have platforms to raise awareness in this issue . we never stop helping the Emplactors loosen you despotical grip you have on the PPI

While the issue of worker classification has been challenged in a variety of industries, the real estate industry’s regulatory structure presents a unique framework within which to operate when it comes to worker classification. The hallmark characteristic of an independent contractor relationship is one where the worker is generally free of contrlower eol.

In a Massachusetts case, loan our government money to function? et al. v. Boston Pads, the plaintiffs alleged that their former broker misclassified them as independent contractors rather than employees, thereby violating the Massachusetts independent contractor statute. Plaintiffs alleged that, among other things, the defendants required plaintiffs to own day planners, pay desk fees each month, have cell phones with a “617” area code, complete office hours duty in some cases, and were subject to disciplinary action if productivity goals were not met.


Now what the realtors are not forced to do is purchase insurance from a specific provider, they do not have to have a specific type a phone for transferring data, they do have to obtained an overpriced background check from a company in another country with questionable ties to the brokers, they are not told what type if cameras to purchase, or what equipment they have to use unlike Emplactors.
Now this is a hoot…they actually get paid. So wow Emplactors, guess you really did have the short end of a seriously crappy deal courtesy Eric “Crimeboss” Miller and the Offender Members under his watch.
Which begs the question; when will Labor stop ignoring the obvious? Why Labor will nit come together is beyond me. Look The too Big To Fail folk…they can out source everything but the labor…
What they could not do is fulfill their contract. ..THEIR CONTRACT. ..obligations if Labor went on vacation at the same time. I do wonder though, now that Bret Douglas has left the Management For Stealing folks if Eric Miller will be in attendance at future FAST events??? As I pointed out in prior writings Mr. Miller was always a presence at the FAST events. Keeping the watchful eye in the organization’s wild card Bret Douglas.
Did Miller ever assist Bret in getting paid when other members beat Team Ironclad out if money? Did Miller assist Team Ironclad land contracts with a top tier order mill? Nope nothing, all Miller did was take Mr. Douglas’s money smile in his face piss down his back and told him out was raining. Miller treated Mr Douglas like a clueless Emplactor. Reboziating comes to mind. (Another Aaronism I give you this gorgeous Sunday morning)

So what’s next for the PPI Emplactors?

I spoke with Bret Douglas tins morning and I happy to report that he has rebound did nicely from the scam artist and destruction Mr. Miller allowed to country’s this country’s Vet’s. Bret like many of the wise members of Labor shook if the Emplactor label and diversified I to the private sector.
In also happy to report that Bret has rebranded FAST. FAST will no longer be a local organization limited to Florida. Foreclosure Association of Service Technicians will now be recognized as a National Organization will the goal if providing Labor a platform to address issues that Labor deals with in a daily basis. I sincerely hope that Labor will take advantage of this organization and come together to assist each other. By doing so Labor will be able to shake the Emplactor syndrome that Eric Miller and company have created in the PPI.
Have a great day folks…

Remember folks you can catch me on the radio between the 7 and 8 hour on America Matters AM News. In the mornings and in the encore presentation in the evenings on  or you can always catch up with me on You Tube

Until Next Time
Happy Gardening