1. How Your Firm Can Qualify
Your first step is to click here to visit the CRCOG website. The Capitol Region Council of Governments (“CRCOG”) has agreed to host the list of eligible contractors for crumbling foundation replacements and to provide that list to the public. You will not be able to participate in the CFSIC program unless your firm agrees to comply with the vetting process created by CRCOG for the sole purpose of providing the public with a helpful list of qualified contractors. CRCOG periodically undertakes a “Request for Qualifications” to help identify contractors with sufficient experience to undertake foundation work. If your firm is not yet on the CRCOG list, you should go to the link above to contact CRCOG.
By law, all home improvement contractors (and associated salespersons) must be registered with the CT Department of Consumer Protection.
2. Bonding Requirements
If you intend to work with homeowners, before you can participate in the CFSIC program you will first have to provide CFSIC with a deposit security bond for a minimum amount of $250,000. The bond must be in the form you will find here and must utilize this prescribed wording.
This bond form has been approved by CFSIC and is now in common use for contractors meeting insurance company credit and underwriting requirements. Contractors should take this form to their agent or broker. No payments can be made from CFSIC to a contractor unless (i) a bond is posted, and (ii) the bond posted adopts this form, inclusive of the schedule.
This bond will have to be underwritten by an insurance carrier admitted in the state of Connecticut and will require that CFSIC is the Obligee. You can provide the bond as a scan to ESIS ProClaim at firstname.lastname@example.org or by posting the original to ESIS at the following mailing address:
Connecticut Foundation Solutions Indemnity Company, Inc.
c/o ESIS ProClaim
82 Hopmeadow Street
Simsbury, CT 06070
If this bond is cancelled by either your firm or the surety at any point, you will forfeit any right to receive further payments from CFSIC, and CFSIC will request that your firm be removed from the CRCOG list of eligible contractors, until it is reinstated by the insurer, or you obtain a replacement bond, using this form, from another insurance carrier.
Do not email or mail the bond to ESIS ProClaim without some kind of transmittal indicating who you are and why you are sending it, and providing all relevant contact information.
The Superintendent reserves the right, at any time, to require an increase in any bond’s penal sum. An increase in the bond’s penal sum will be subject to the volume of work you undertake for CFSIC and the total construction value of that work. If there is a bond increase requirement, the Superintendent will contact you directly at least 30 days before the increase in the bond’s penal sum amount must occur.
3. What the Process Is: Type 1 Claims
- Homeowners with Type 1 (foundation replacement) claims will contact CFSIC, through its claim adjuster ESIS ProClaim, with their applications and supporting materials. Homeowners do not have to include any proposals for foundation work as part of the original application process.
- Upon approval of the homeowner’s claim application, the homeowner will receive written confirmation of approval from ESIS ProClaim and will be assigned a claim number.
- The homeowner will be directed to the CRCOG site for an applicable list of contractor vendors. The homeowner must obtain a minimum (with no maximum) of two contractor proposals as part of the process. This means the homeowner reaching out to you directly, without the intervention of CFSIC, to obtain those proposals.
- The homeowner then must send these proposals to CFSIC (at this point, contractors cannot deal with CFSIC directly as part of the claims process). The CFSIC claim adjustment team will review proposals for: (i) accuracy and clarity with regard to the work CFSIC will pay for; and (ii) whether the proposal, on a linear and square footage basis, does not exceed the allowable claim payment costs.
- The ESIS ProClaim staff will contact the homeowner (again, not the contractor) and indicate if (i) the two or more proposals are acceptable for payment; (ii) if there are any issues disqualifying a bidder; or (iii) if the homeowner has not submitted the requisite minimum number of two proposals.
- It is solely the homeowner’s responsibility to choose the contractor and to enter into the construction contract. CFSIC will not be a party to the winning bidder’s contract.
- It will then be the contractor’s responsibility to contact CFSIC and to: (i) provide the minimum surety bond to CFSIC noted above (unless this has already been done); (ii) provide CFSIC a signed Contractor’s Acknowledgment (click here for the form) where all blanks are filled in correctly with respect to the specific project in question, and where the Acknowledgment has been executed by a responsible and duly authorized person representing the contracting firm; (iii) provide CFSIC with a complete and executed copy of the contractor’s agreement with the homeowner; and (iv) provide an invoice to CFSIC for an amount equal to 10% of the total contract price (the price inclusive of all work to be done, whether allowable by CFSIC or not, but in no event where the deposit paid by CFSIC is in an amount greater than $17,500).
- To the extent that a gap exists between the total cost of eligible concrete work and CFSIC’s cap per eligible building for concrete work performed of $175,000 (or cap of $70,000 applying per eligible condo unit), the contractor and the homeowner (or contractor and condo association) must come to an agreement, prior to the work commencing, as to how that gap is to be paid to the contractor by the homeowner or condo association. CFSIC will not pay for any work performed, whether eligible concrete work or not, in excess of CFSIC’s cap of $175,000 per eligible residential building (or cap of $70,000 applying per eligible condo unit).
- Progress payments are governed under Section 5 of the Contractor Acknowledgment. As these become due, the contractor will invoice CFSIC for its specific share of the progress payment, but only for the CFSIC share of the eligible concrete work, and will provide a description and visual evidence of the work to date justifying the progress payment. As part of the evidence supporting the progress payment invoice, the contractor will also be required to supply CFSIC with a copy of the homeowner’s cancelled check for the homeowner’s share of the progress payment for the eligible concrete work before CFSIC will pay its share. (By way of an example: if a progress payment due totals $40,000...of which the homeowner is responsible for $10,000...CFSIC will not make the claim payment for its $30,000 share until and unless the contractor includes, as part of their invoice for the progress payment, evidence by way of the front and back of a cancelled check, that the homeowner has first paid their share of the progress payment.)
The progress payment invoice must solely be for eligible concrete work and cannot include any other work performed. Said another way, if a particular progress payment is due, including non-CFSIC eligible work, the contractor cannot use that invoice in order to receive payment from CFSIC. CFSIC will only honor invoices for eligible concrete work.
4. What the Process Is: Type 2 Claims
Homeowners with Type 2 (foundation reimbursement) claims will need your assistance. They will ask you to go back to your original contract for the work you performed and, using our replacement cost parameters (see Section 5 below, What We’ll Pay For...And How Much We’ll Pay), calculate the cost of the actual concrete work you did for them, making certain that you segregate that cost from the other work you may have performed.
You will help the homeowner by either adding an amendment to your original contract, breaking out the cost of the concrete work according to our replacement cost parameters; or, you’ll break those costs out in a separate letter, which you will provide to the homeowner on your company’s letterhead. We ask for the cooperation of all contractors, so that we can get homeowners in line for reimbursements.
5. What We’ll Pay For...And How Much We’ll Pay
CFSIC neither has the resources nor does the enabling legislation permit us to pay for all possible costs associated with the replacement of a crumbling foundation and all amenities.
The contractor’s proposal for construction work to be performed should separately identify and price the following allowable components of the claim, which CFSIC will potentially pay for:
- excavation, drainage, waterproofing, and backfill
- removal of existing foundation, footings, lally columns, and floors
- removal and eventual reinstallation of all mechanicals and utilities
- the lifting of the eligible residential building and garage (as applicable) and the eventual lowering of the house, chimney, and garage (if applicable) onto the new foundation
- the installation of stone base under footings and compact
- form and pour all footings and walls with #5 rebar (or appropriate)
- rebuild base of chimney
- form and pour pockets left in foundation
- backfill garage with gravel and compact (as applicable)
- form and pour 4-inch (or applicable) concrete floor in basement and garage (if applicable)
- install pre-cast hatchway and install Bilco (or similar) door as appropriate
- remove any existing basement windows and/or sliders and replace with new windows and/or sliders of comparable size, quality, and number
- remove any precast steps, store, and re-install; OR remove any poured concrete steps and replace with precast steps of similar number of steps and dimensions (house wall and basement slab measurements adequately account for any additional incremental expense associated with steps removal and replacement)
- apply parge coat on above-grade foundation and apply Drylok (or other applicable) foundation coating
- grade yard and spread loam as applicable and where disturbed
(This is a basic list of allowable services and materials. If you have any questions about what is allowable, you should contact ESIS ProClaim at email@example.com)
HOWEVER, with respect to slab on grade construction, the following items can be included in what we’ll pay for:
- Remove any and all of the furniture on the first floor; this includes pictures on the wall, window treatments, and ceiling fans. (These should be stored appropriately for further use.)
- Remove all kitchen cabinetry and countertops, and remove dishwasher and sink. (These should be stored appropriately for further use.)
- Cut access hole in the first-floor exterior wall for equipment to enter and exit the structure. This includes the removal of siding, plywood, framing, window(s), insulation, sheetrock, etc., and rebuild this wall.
- Remove existing kitchen appliances, and store them appropriately.
- Remove bathroom vanity, toilet, shower stall and/or tub, and store appropriately.
- Remove all mechanicals (heating and air conditioning, water heater, well pump, water meter, washer/dryer, etc.) and store appropriately.
- Demo the first floor. This includes the removal of sheetrock, trim, cabinets, countertops, fixtures, radiators, etc.
- Remove flooring on top of existing slab.
- Remove load bearing interior wall and temporarily support the second floor above.
- Brace exterior walls prior to lifting the structure (as may be required).
- Reframe any and all interior walls/partitions that were removed.
- Install appropriate insulation below replaced slab.
- Insulate exterior walls where insulation was removed.
- Sheetrock, tape, and compound interior and exterior walls.
- Reinstall existing removed kitchen cabinets, countertops, and dishwasher.
- Reinstall kitchen sink and faucet.
- Reinstall existing kitchen appliances upon completion.
- Reinstall and hook up baseboard radiators.
- Reinstall electrical outlets, lights, switches, cover plates, etc.
The contractor’s proposal provided to the homeowner and accepted by the homeowner should:
- price the entire project with all services and all amenities as may be requested by the homeowner; but
- within the body of the proposal, isolate the above-listed allowable work and all costs as a separate section within the total proposal.
CFSIC will pay for work performed as listed above at the following maximum replacement cost parameter rates:
- $12 per square foot of garage floor slab (as may be applicable to the claim)
- $27 per square foot of basement floor slab (as may be applicable to the claim; with the understanding that $29 per square foot applies where the foundation is slab on grade)
- $657 per linear foot of garage foundation walls
- $719 per linear foot of house foundation walls (with the understanding that $1,012 per linear foot applies where the foundation is slab on grade)
Again, all of the work noted above is encompassed in the maximum rates shown. CFSIC will not pay for any other expenses in any other way.
6. What We Won't Pay For
What follows is a list of examples of those items that will not be paid for by CFSIC. Please remember that ESIS ProClaim must see the entire proposal for all work to be performed...but where, inside that proposal, the applicable foundation work and related work that CFSIC will pay for is separately identified and priced.
- replacement of drywall and/or other finishing wall features, including re-framing;
- removal/replacement of porches or decks;
- removal/replacement of gutters;
- removal/replacement of landscaping features such as driveways, walkways, paths, shrubs, lawns, trees, gardens, or other plantings or garden structures;
- any work done to outbuildings, sheds, or barns;
- swimming pools, whether in-ground or above-ground, or any ponds or water features;
- moving or relocation expense;
- temporary housing expense;
- meals, transportation, mileage, and incidentals;
- loss of wages or income or revenue associated with any work or any business, whether such business is home-based or not;
- any liability incurred by the homeowner or any other person on a direct, indirect, or consequential basis.
HOWEVER, with respect to slab on grade construction, refer to Section 5 above for those items/activities that are allowable.
7. How You Get Paid
Contractors will be paid first by receiving a deposit on the work performed, and subsequently through progress payments, both types of payments to be made as outlined in the contractor’s proposal, but at all times governed by CFSIC’s claims management guidelines.
It is the contractor’s responsibility to invoice CFSIC. CFSIC will not diary or otherwise flag payments to be made.
If the homeowner accepts your proposal, the homeowner will alert CFSIC by email, with a copy to you, that your proposal has been accepted. You will then go on the CFSIC website and complete the Contractor Acknowledgment and send it to ESIS ProClaim, making certain that you obtain the CFSIC claim number from the homeowner. (To review this acknowledgment, click here. This is a Word document you will be able to fill out when appropriate with the details of each foundation project you are awarded).
The Contractor Acknowledgment form is final. It cannot be amended, modified, or negotiated. You will not be able to participate in the CFSIC program unless you agree to use the Contractor Acknowledgment.
Contractors will need to complete a Contractor Acknowledgment for each project you undertake.
Once you sign the Contractor Acknowledgment for the project, you should return it to ESIS ProClaim with a copy of the signed construction agreement with the homeowner and enclosing or attaching an invoice for 10% of the total contract work. CFSIC will then provide you with a deposit of 10% of the total construction contract cost, subject to a maximum deposit paid of $17,500, provided that ESIS ProClaim has already received your surety bond.
By way of example: if the total construction amount of the contract between the contractor and the homeowner is $200,000, and within that contract the eligible concrete work totals $150,000, a contractor would be able to invoice CFSIC for a deposit of $17,500. (10% of the total contract work is $20,000...but CFSIC’s maximum deposit cannot exceed $17,500.)
9. What You'll Have to Agree To
In order to participate in the CFSIC program, and on a job-by-job basis, the contractor will have to complete and sign a Contractor Acknowledgment for each project undertaken.
The Contractor Acknowledgment should be returned to ESIS ProClaim by email at: firstname.lastname@example.org
The email transmittal, sending the Contractor Acknowledgment and where the contract for the job in question has been attached to the Contractor Acknowledgment, must be specific as to the name of the homeowner, the homeowner’s address, and it must include the claim number (the contractor will get that from the homeowner).
Contractors with questions or concerns should contact ESIS ProClaim by email at email@example.com. You may also call them at (844) 763-1207.
10. To view calculation worksheets and a sample proposal template
Here’s what we’ve done to help you:
- If you are proposing foundation replacement work, we've provided you with a Type 1 proposal template as a Word document. (You don’t have to use our proposal template, but if you do it will make your job easier.)
- We’ve also provided you with a Type 1 proposal calculation worksheet for allowable concrete costs, which, if you use, will make your job easier and make it easier for the homeowner to understand. (This is an Excel spreadsheet that, if used, becomes an attachment to the Type 1 templated proposal we have provided, or to your own proposal.)
- Lastly, we’ve provided you with a Type 2 calculation worksheet for allowable concrete costs. This worksheet can be used, for example, as an amendment to your original contract, helping the homeowner isolate the costs of the concrete work you performed in the past. Alternatively, you can use this worksheet as an attachment to a letter on your letterhead, which you provide the homeowner to isolate these costs. (This is an Excel spreadsheet that, if used, becomes a supplement to the original contract under which you already replaced a foundation and where a homeowner is asking for your assistance.) View a Type 2 calculation worksheet here.
Before you use these CFSIC templated documents:
- You are not required to use these templated documents in whole or in part. We are providing them solely to facilitate the separation of allowable from non-allowable claim costs. You can continue to use any proposal form you believe is valid, provided that you recognize that allowable costs must be at all times separated from non-allowable costs inside the body of your proposal.
- You should understand and recognize that CFSIC cannot be responsible for your use of these templates, in whole or in part, with respect to any liability or legal obligation to a homeowner. You should seek the advice of counsel before engaging in any contract for services.
- Your calculation of any possible or probable claim amount to be paid by CFSIC, whether you use these templates or use any other form of contract you provide a homeowner, will not obligate CFSIC to make a payment for any claim amount you suggest or calculate. CFSIC reserves the right to adjust and pay a claim according to the original application, all attachments to the application, and the terms and conditions of its underwriting and claims management guidelines.