As soon as the claim is received, notify any subcontractor whose work is suspected to be the cause of the damage. This notification should be made in writing. Ideally, the subcontractor will respond and make the repairs. Sometimes, however, the subcontractor may not respond and will not undertake the repairs. Ultimately, repairs should be made whether or not the subcontractor responds to the notification.

Regardless of who makes the repairs, obtain a signed authorization from the client to do the work, before they are made.

This document should outline where the work is going to be performed, a general description of the work and the time frame within which the work will be performed. This authorization also should list any additional compensation such as a daily expense allowance or relocation expenses. Finally, in conjunction with the work authorization, once the work is completed the client should acknowledge the work was satisfactory and all other compensation agreed to was received. Keep the work authorization with the records regarding the repairs.

While the repairs are underway, whether by a builder or a subcontractor, photographs should be taken to document the step-by-step process of revealing the cause of the damage and the repairs to same. A written log should be kept as the photographs are being taken. After the photographs are developed, the date and description of what the photographs depict should be written on the back of each photo. Documenting the repairs with photographs is a simple way of keeping a clear record of work performed.

Once the repairs are completed, create a file that contains: the notification received from the client; all photographs taken; written logs created when photographs were taken; signed authorization and acknowledgement received from clients; the written notification to the subcontractors; copies of all invoices and contracts signed to have the repairs performed; and copies of all checks to pay for the repairs and any additional compensation to the client. By keeping a complete file regarding the repair, most if not all the documents builders will need to recover costs associated with the repairs will be located in one place.