As Hurricane Katrina prepared to strike late September 2005, many companies had already reviewed their disaster contingency plans and felt somewhat confident about what they would do if Katrina were to damage one of their buildings. Yet, as evidenced by the news coverage, no one can precisely prepare for what a disaster will bring. The companies that were most successful in responding in the wake of Hurricane Katrina were those that used their contingency plans as a model, yet adapted to best handle the needs of their buildings. While companies must be ready to adapt, there are still basic steps they can take in order to be prepared for a disaster.

As a restoration services provider, Southpro Restoration Services has been providing disaster restoration for over 20 years. The damage left by Hurricane Katrina is by far the most extensive disaster we have seen yet. Throughout our restoration efforts, we were surprised that many companieshad not adequately planned for a disaster of this magnitude. Their contingency plans covering data preservation and recovery were complete, but they were still unprepared for the restoration of their buildings. Companies that were best prepared followed some basic principles during their contingency planning: evaluating their insurance coverage, operating effective communications plans, designating on-site desicion makers, working with vendors ahead of time and understanding time and material contracts.

So, how does a building manager make his or her contingency plan worthwhile?

Companies must decide what their main priorities are in the event of a disaster. Most likely, their first concern will be the safety of the people working in the building. Then, the company should have disussions with all possible disaster recovery players about how to best achieve that priority. By establishing thought processes consistent with company priorities, the employees will be empowered to focus on the main priorities without becoming stuck with commands from a contingency plan.

One of the biggest problems companies encounter during restoration efforst is that they are underinsured. Some companies were unaware of the type of coverage they needed in order for insurance to cover their claims; others did not have enough coverage at all. Many companies believe that the Federal Emergency Management Association (FEMA) will help cover damages, but this is not nessecarily true. Additionally, in order to work with FEMA on a claim, the company is required to provide huge amounts of paperwork and information. This information, if known, takes time to prepare and even longer to process. In order to be able to quickly restore your property, be sure that you have good flood coverage and total coverage for the building. We saw too many cases of companies who thought they had the right coverage but found out too late they did not.

A major part of a company's contingency plan should be the communication plan, both for internal employees and for tenants. Companies need to have the line of communication set up and publicized before a disaster hits. Internally, property management should let everyone know their responsibilities in the event of a disaster. Additionally, employees should have backup responsibilities in the event that one employee is unable to perform. There should be a point of contact outside the city (or disaster zone) that everyone checks in with every 24 to 48 hours. Having employees check in will not only provide a means to gather information about the status of personnel, but it will also provide a way to delegate job responsibilities after the disaster hits.

Property management could also assist in setting up communication for tenants. Companies must internally set up means of communication for employees in the event of a disaster, but property management can assist as well. Tenant employees can contact the designated point of contact for immediate information, or check the property management's website for more details. Tenants will greatly appreciate the assistance in trying to locate and communicate with their employees. Many companies hit by Katrina still have not found or heard from all their employees, and the result can be detrimental to the business.

Property management should make sure that there are good desicion makers available at the property or immediately reachable by phone. We restored a hospital in which the board of directors had to make some important decisions, yet many for the directors were unreachable. By the time a quorum was reached to make certain decisions, the property had sat idle for days, and the cost of restoration greatly increased. Companies should designate one or two delegates who will be available to make important decisions immediately.

Before a disaster strikes, companies should have plans in place with their designated vendors. All vendors should be pre-qualified so that the restoration process is not delayed due to paperwork. Additionally, companies must realize that in the event of a major disaster, many local vendors will not be available. Thus, having backup vendors who are not in the area will allow a company to get the services it needs in an efficient manner.

Specifically, when working with a restoration services provider, companies should ask some important questions such as:

1. What does your mitigation process look like?
2. When do you tear out sheet rock instead of trying to dry it?
3. What do you do to prevent mold growth?
4. What type guarantee do you provide?
5. What type and how much equipment do you have?
6. What is your response time?

When deciding on your vendors, companies should select vendors who have their client's best interests at heart.

If a disaster strikes, and there is not a pre-qualified vendor to do the required work, companies should negotiate a time and materials contract with a vendor. A time and materials contract means that big ticket items such as equipment, labor and fuel are already priced and agreed to. Companies should avoid asking for hard bids for projects that need immediate attention. These take time and money and are often inaccurate because it is difficult to prepare a proper scope in a disaster situation. Instead of waiting for hard bids to arrive, a company needs to be responding to their property as quickly as possible.

When a disaster hits, companies must be prepared to operate as an extremely basic level. Electricity, phone lines, cell towers, roads, fueling stations and grocery stores might all be down and inaccessible. In these types of situations, companies must consider their main priorities --  saftey and status of their people. Only once these priorities are met can employees start focusing on the restoration efforts ahead.

Hurricane Katrina was one of the worst hurricanes the United States has ever seen. Restoration efforts will cost billions of dollars and take many years to complete.  While no company can precisely prepare for what a disaster might bring, it can recover more quickly by incorporating these basic principles into their contingency plans. The companies that will recover quickest are those who understand and agree on their building's priorities, and follow through on those priorities once disaster has struck.

With over 12 years of restoration experience, Mike Erhardt brings expertise with all types of restoration projects to Southpro Restoration. As general manager of Southpro's catastrophe division, Erhardt oversees all aspects of sales and operations. In the aftermath of Hurricane Katrina, Erhardt managed the restoration of over one million square feet of commercial property throughout the Gulf Coast, focusing on hospitals and school districts.