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If you run a restoration company doing more than $2M a year, you’ve had the conversation. A friend in the business tells you their Contractor Connection volume just doubled. Your phone hasn’t rung in three days. You wonder if you should finally sign the paperwork.

Before you do, sit with the math. TPA programs are not free leads — they are the most expensive leads in restoration, paid with margin instead of marketing dollars. The question isn’t whether TPAs are good or bad. The question is whether your business model can survive what they cost.

Here is an honest look at the four programs restoration owners actually compare in 2026: Contractor Connection, Alacrity (now Altimeter Solutions Group on the managed repair side), Code Blue, and the smaller program work most operators don’t talk about openly.

How TPA Economics Actually Work

Industry-reported referral fees on TPA work generally fall in a 5% to 20% range, with most managed-repair networks landing somewhere around 8% of the invoice. That fee comes off the top before you pay materials, labor, equipment, or overhead.

The hidden cost is bigger than the fee. TPA work typically settles on extended payment terms — often 30 to 90 days — while your crews need to be paid weekly and your subs every other week. You finance the carrier’s cash conversion cycle out of your operating account. On a $5M operation running 25% gross margin, sitting on $300K of receivables longer than your direct-bill book costs you real money in line-of-credit interest, opportunity cost on equipment purchases, and the slow erosion of payroll-week stress.

Industry consultants who work with restoration operators routinely advise keeping no single referral source above roughly 20% of revenue, and ideally under 10%. Once a TPA crosses that threshold, you are no longer a contractor — you are a subcontractor with a logo.

Contractor Connection

The largest network in the space and the one most operators encounter first. Owned by Crawford & Company, it positions itself with a “pay as you grow” structure: an application fee up front, then fees tied to the work you actually receive. Carrier relationships are deep, with most of the major property insurers routing some volume through Crawford’s managed-repair channel.

Entry requirements published on Contractor Connection’s potential-contractor portal are not soft: a minimum of one year of financial statements demonstrating stability, $1M general liability, $1M auto, workers’ comp, all required state and local licensing, a clean credit background, criminal background checks on field employees, current estimating-software and digital documentation capability, twelve quality references, and a commercial or industrial-zoned facility. No home-based operations.

Bottom line: Best fit for operators who already have crews, capacity, and the working capital to ride 60-to-90-day pay cycles. Worst fit for a $1M operator trying to use the program as growth capital — the volume will outrun your cash before margin catches up.

Alacrity Solutions / Altimeter Solutions Group

Alacrity announced the strategic sale of its Managed Repair Division, which now operates as an independent company under the Altimeter Solutions Group name with its existing leadership and team. Alacrity itself continues to run a broad TPA services book — claims handling, field adjusting, network solutions — but the contractor network specifically sits under the spun-off entity now.

Entry requirements emphasize the same screening contractors see across the major networks: criminal background checks, current licensure and certifications, demonstrated financial stability, and proof of insurance. Their ACCESS program layers in affinity discounts, supplier programs, and growth resources for network members — useful at the margin if you’re already in, less of a reason to join.

Bottom line: The leadership-continuity story on Altimeter is the thing to watch over the next twelve months. Spin-offs from larger TPA parents often go one of two ways: leaner and contractor-friendlier, or starved of resources and slower to pay. Talk to three current network contractors before signing — specifically about cycle time on payment since the transition.

Code Blue

An independent TPA serving casualty and property insurance carriers with end-to-end outsourcing. Smaller than Contractor Connection by volume, but contractors who run Code Blue work generally describe a more direct relationship with claim handlers and fewer layers of escalation. The trade-off is that Code Blue volume is lumpier — when a carrier surge hits, you get the work; when carriers route elsewhere, your queue thins.

Requirements track industry standard: financial stability, customer service track record, business insurance, equipment, training, standardized estimating software. No home-based operations. Background checks and certification documentation required for field staff.

Bottom line: Reasonable second or third program for an operator already in Contractor Connection who needs incremental volume without doubling down on a single source. Not a first-program choice unless your local market has a Code Blue–heavy carrier mix.

What “Worth It” Actually Looks Like

Run the math on your own P&L before you sign anything. A direct-bill water-mit job at a healthy restoration shop targets gross margin in the 35% range after labor and materials. The same job under a TPA at an 8% referral fee, with the typical scope-and-pricing concessions and the 60-to-90-day pay cycle, often lands closer to 18-22% gross margin once you’ve fully loaded the cost of carrying the receivable.

That gap is not a reason to refuse program work. It is a reason to know exactly what it’s paying for. Program work pays for crew utilization in slow weeks. It pays for keeping equipment off the shelf. It pays for the operational discipline of running standardized scopes and tight documentation. What it does not pay for is replacing your direct-to-consumer marketing — because the second you let your local lead engine atrophy, you’re locked in at whatever margin the network decides to give you next year.

The Exit Question

Operators who successfully unwind from heavy TPA dependency rarely do it all at once. The pattern that works: cap program volume at a hard percentage (10-20% of revenue), reinvest the margin gap from non-program work into local SEO, LSA campaigns, and adjuster relationships, and use the program work as a deliberate utilization buffer rather than a primary revenue stream.

Operators who get stuck in the trap share the same profile: 60%+ of revenue from one or two networks, no direct marketing investment, no adjuster-direct relationships in their territory, and a fleet and crew count sized to the program’s volume rather than their own sales engine. When the program cuts your assignments — and it will, at some point, for reasons that have nothing to do with your performance — you have no Plan B.

Bottom Line

TPA programs are a tool, not a strategy. Contractor Connection is the most established and the highest-volume option for operators with the capital structure to absorb extended payment cycles. Altimeter (formerly Alacrity Managed Repair) is in transition and worth diligence before joining. Code Blue makes sense as a secondary source, not a primary one. Whatever you sign, build the business to survive without it — because every restoration operator who has run a TPA-heavy book for more than five years will tell you the same thing: the program does not love you back.

Frequently Asked Questions

What percentage do TPAs typically charge restoration contractors?

Referral fees in restoration TPA programs generally fall between 5% and 20% of the invoice, with most managed-repair networks landing near 8%. The fee comes off the top before you pay labor, materials, or overhead.

How long do TPA programs take to pay restoration contractors?

Payment cycles on TPA work commonly run 30 to 90 days, which means you finance the carrier’s cash conversion cycle out of your operating account. Plan working capital accordingly before signing any program agreement.

Should I rely on a single TPA for most of my revenue?

No. Industry consultants advise keeping any single referral source under 20% of revenue, ideally under 10%. Above that threshold, you lose pricing power and become structurally dependent on a relationship you don’t control.

Is Contractor Connection or Alacrity better for new contractors?

Contractor Connection has deeper carrier relationships and higher volume, making it the more common first program. Alacrity’s contractor network sits under the spun-off Altimeter Solutions Group as of the recent transition, which adds diligence risk for new entrants — talk to current network contractors about payment timing before joining.