The complaint has been investigated and
resolved to the customer's satisfactionResolved Cyprexx Services — Mishandling of company power
resolved to the customer's satisfaction
Thank you for taking the time to read through my message today. I write you out of complete disbelief and overwhelming disappointment with the way that Cyprexx seems to be handling my business and myself. When I first contacted Cyprexx about performing property preservation services I jumped on the new opportunity to work with your top tier company. I have been nothing short of let down from day one. Upon submitting bids to Cyprexx for services i which I was asked to place bids I have been met with a 50-55% slash in almost every bid I place on a property as well as being told numerous times from representatives that I, "may be paying my employees too much" and that "I may want to lower the amount of money that I'm paying my workers to ensure that my bids are lower". To state the wages I should be paying my employees is not the business of any single employee within the Cyprexx Corporation and to be told that I do not manage my employees payroll well enough was a bit of a shock. All of the properties that have been maintained for your company are being done by 2 workers, yes 2 men. I have 2 men working 12 hour days almost 6 days a week to deal with the properties where I'm already losing 50-55% of my initial bid. From their cozy computer chair in their AC filled building the work may not always be seen through the pictures and emails as it is in the 100 degree, extremely humid, Alabama days but trust me, there is no amount of money that could make up for the road blocks and speed bumps that I have met along my very short venture with your company, Cyprexx.
During my initial conversations with representatives about my involvement with the company I was told that upon completing services I was guaranteed a check for the amount negotiated within 30 days. The 2 checks that I have received on the over $7500+ owed were both well over the 30 day mark and often seemed to be short of the amount that was negotiated. I continue sending my employees to continue their work as assigned through Cyprexx hoping that it is all a miscalculation that will work itself out. Low and behold it doesn't seem to be a miscalculation. I was told that 9% of my approved invoices are being taken from my by Cyprexx and that I needed to locate the information in my vendor packet to ensure that I had read what I agreed to about this 9% and after I "reach an unspecified dollar amount" that I would be required to purchase Workman's Comp. So I did take a look at my vendor packet that I had notarized and I found a few very interesting lines pertaining to the 9% being held by Cyprexx from my invoices. See Below.
First is an email with a rep regarding the 9% admin fee, second is the excerpt from the Vendor Agreement Packet stating the guidelines of the 9% admin fee, which I DO NOT fall within and last is the State of Alabama law regarding a company to purchase workman's comp. Collectively I'm not sure how the illegal nature of this 9% admin fee can be overlooked from your companies view point or your attorneys.
RE: Notice of Cancellation - BRI44713
From [protected]@cyprexx.comhide details
Mon, Jul 14, 2014 7:25 am
We do take 9% out of your invoices, but it does not provide you with workers compensation insurance. Please refer to the Vendor Agreement that you signed and had notarized for an explanation of the deduction.
| Cyprexx Services, LLC
Vendor Support Coordinator
Direct Phone: [protected] | Toll Free: [protected] Ext. 4188 | Fax: [protected]
[protected]@cyprexx.com | www.cyprexx.com
Sent: Sunday, July 13, 2014 10:52 PM
Subject: Re: Notice of Cancellation - BRI44713
I will get with my agent. Don't know anything about a cancellation.
Speaking of insurance, if you take 9% of our pay for workman comp, my accountant needs a binder on this to keep for our record. If we need to claim anything we will need it.
In a message dated 7/11/2014 11:23:57 A.M. Central Daylight Time, [protected]@cyprexx.com writes:
Please be advised that a Notice of Insurance Cancellation has been received from ALFA Insurance, stating your General Liability Coverage was cancelled effective 6/27/2014. Pursuant to the Vendor Agreement, failure to keep all insurance policies current will result in termination of the Agreement and the relationship between us.
Please forward a current Certificate of Insurance for the General Liability Coverage by 7/18/2014 to prevent deactivation of your Account. If you are not renewing this policy or would prefer not to continue our business relationship please let me know by return email.
Should you have any questions please feel free to contact me at the number provided below.
| Cyprexx Services, LLC
Vendor Support Coordinator
Direct Phone: [protected] | Toll Free: [protected] Ext. 4188 | Fax: [protected]
[protected]@cyprexx.com | www.cyprexx.com -----------
-------Cyprexx Vendor Agreement
"4. Vendor Required To Maintain Valid Worker's Compensation Policies.
Vendor warrants that it obtained a current, enforceable workers' compensation insurance policy
valid in all places in which Vendor, Vendor's independent contractors ("Vendor's Contractors")
and Vendor's employees conduct services and will conduct services for Cyprexx (Collectively
"Workers' Compensation Policies").
Vendor warrants that the Workers' Compensation Policies relieve Cyprexx from any obligation
related to workers' compensation claims by Vendor, Vendor's employees, and Vendor's
Contractors or any other obligation or liability that may be imposed on Cyprexx in relation to
workers' compensation laws or similar matters.
Vendor is required to submit to Cyprexx a copy of its current Worker's Compensation Policies
under the following conditions: (1) Immediately following executing this agreement; (2) If there
are any changes to Vendor's Workers' Compensation Insurance Policies and (3) If Cyprexx
requests a copy of Vendor's Workers' Compensation Insurance Policies. 3
5. Consequences When Vendor Fails To Maintain Valid Worker's Compensation
If Vendor is not able to present a valid workers' compensation insurance certificate, Cyprexx will
charge an administrative fee equal to nine percent (9%) of amounts otherwise payable to Vendor
from Cyprexx under this agreement.
If Vendor's workers' compensation insurance ceases to be effective at any time, Cyprexx will
discontinue using Vendor as an independent contractor for future Work Orders unless and until
such insurance becomes effective again. Cyprexx also can charge the Vendor a nine percent
(9%) administrative fee on Work Orders handled while vendor's insurance is no longer effective.
The purpose of this administrative fee is to compensate Cyprexx for the increased risks of doing
business with a Vendor that does not maintain workers' compensation insurance. Vendor hereby
agrees that if Vendor is subject to this administrative fee, such fee will be borne solely by Vendor as
an overhead expense and Vendor's employees' compensation will not be reduced or otherwise
affected by such administrative fee. "------
You see from above that a 9% admin fee will be charged "If Vendor is not able to present a valid workers' compensation insurance certificate, Cyprexx will charge an administrative fee equal to nine percent (9%) of amounts otherwise payable to Vendor
from Cyprexx under this agreement." This is rather interesting to me and seems to be fraudulent, which is why my attorney and accountant have been contacted. As I have attempted to explain to every single individual that I have spoken with at Cyprexx, I live in the State of Alabama where workman's comp isn't required if you employ less that 4 employees and I can't be force to pay for not having workman's comp and I definitely can not be required to purchase workman's comp based on the amount of income I receive from Cyprexx. I will be meeting with my attorney and accountant to ensure, through the process of liens on ALL properties where my employees have performed ANY services, that I obtain the 9% that is rightfully owed to me through the process of negotiating bids in a state where workman's comp isn't required based on my companies number of employees. See Below.
------ State of Alabama Workman's Comp
"Insurance Requirement Information
The manner or method by which you choose to insure your workers' compensation liability is your decision. Should you have any questions contact the Workers' Compensation Division at [protected] or [protected].
If you have more than four (4) employees, full-time or part-time and including officers of a corporation, the Alabama Workers' Compensation Law requires you to have workers' compensation insurance coverage. Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2, 000 (according to the most recent federal census) are not required to provide coverage but can elect to be covered by the provisions of the Alabama Workers' Compensation Law."-----
Employers With Less Than Five (5) Employees"----
This leads me to another issues that I have with the 9% being taken out of my invoices. I negotiated many times with Cyprexx reps on the cost to perform Lawn and Cleaning Maintenance on properties after the initial services performed as well as many properties for a one time maintenance cut. I'm not quite sure how it is legal for a company to "negotiate" or tell you, "this is all that we will pay for this service" then turn around and take 9% out of that amount legally. What exactly does this 9% admin fee cover for you the company, Cyprexx, you have no ties whatsoever to my companies workman's comp yet if I don't have workman's comp you all of a sudden must deduct a 9% admin fee that doesn't go towards my workman's comp or my company account at all. So Cyprexx is legally allowed to deduct 9% from of all service providers that just disappears into thin air or someone's pocket, probably the latter, once it is deducted from the negotiated prices of their service providers. I am the owner of the business which means if it is required I must pay for those costs yet Cyprexx has some type of "Admin Fee" for a company that is performing services in a state where no workman's comp is required and yet no one can understand the double negative occurring in this situation.
I attempted to negotiate prices with Cyprexx in which I was able to perform the services that they needed done and cover all of my expenses that come with running a business of this kind yet again I was combated with the 50-55% slash in my offers and told that Cyprexx would ONLY pay a specific amount. Little did I know that upon offering an amount to perform the maintenance services Cyprexx would also be cutting those amounts by 9%. As I stated with all of those representatives, each and every time I send my employees to a property for $32 and $25 sales clean, based on the drive to each property, cost of fuel and pay for 2 employees, I am losing nearly $50 a property. Now I'm hoping that you are beginning to see what I have come to find as disgust with the business tactics that your company is using against those that are willing to provide superb services for a very small fraction of the cost. I am writing in hopes that I can find someone who will see the legality of these issues. If no understanding can be reached and the money that is owed to be isn't paid without me having to go through the legal processes I will have no issues cutting ties with your company as well as ensuring that no one within my network of services providers do any work for your company until someone up the chain of command is willing to stand up for those of us actually working in the heat and humidity and taking care of your properties and ensuring that they are being properly maintained full amount of money negotiated.
I pride myself for having worked in the customer service industry for many years with a J.D. Power and Associates recipient and I know for a fact that companies such as that don't exist without completely transparent communication from top to bottom. This is something that I hate to inform you of but Cyprexx by far has some of the most terrible communication issues I have ever dealt with whether it be from the provider or the customer side. From submitting bids to issues such as the ones I am writing you with today it seems that no issue is ever cleared up. All it takes is a little decisive power and leadership to ensure that the company and the customers, in this case US vendors, are both happy and want to be partnering in their exchange of goods and services. I am asking for someone, anyone to be THAT leader within Cyprexx when dealing with US vendors. I have had properties taken from me because my rep didn't see a bid that I submitted long before their deadline for submitting. I get calls almost every single morning where I have to stop what I'm doing because a rep for a property decided to call me and harass me about uploading photos, submitting checklist or get information concerning properties when I had already taken care of or provided the information but the rep refused to look or listen to voicemails before calling me. COMMUNICATION IS KEY!!! The ability that your company has to be overwhelmingly profitable and transparent when working with outside vendors is beyond the scope of what I feel the leaders of the company have in sight for it. Don't get me wrong I am not writing to bash or be little your company or the leaders within but to hopefully spark a little initiative in someone to go above and beyond in their job and ensure that the main focus of all Cyprexx employees is being a company that gives a damn about those that YOU hire as vendors to provide THEIR services.
This is not the first email that I have written voicing my concerns and it will not be the last, given the astronomically illegal practices that are taking place with my business agreement with Cyprexx as well as the complete disgust for the guidelines in which reps are allowed to perform their jobs when dealing with vendors.
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