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68 even and to be given the opportunity to receive additional work in the future. ese lessons are often learned the hard way. For example, there have been reported instances of local service providers performing work for larger field service providers that later refused to pay for work completed. With so much invested in materials and labor, the smaller companies struggle to regain financial stability. e end result is years spent in litigation, unpaid invoices, loss of vendors, and the list goes on. Ultimately, it's up to the national and regional field service providers to lead the industry in creating new and competitive strategies to effectively manage vendor performance standards. We must redouble our commitment to creating change in field service management through promoting more positive incentive- based approaches. Everyone wins when contractors are positively incentivized and rewarded for completing work within quality, time, and budget requirements. Vendor scorecards and incentives will create a competitive environment in which top vendors are rewarded for their efforts allowing for an increase in market share and potential earnings. Our company plans to launch a new incentive program for vendors in the coming months and hopes that other field service providers will follow. Top vendors will be awarded priority assignments, increased volumes and expedited payments. Vendors will also receive incentives for identifying and communicating additional services needed outside the original scope of work if the work is approved by the client. e key to managing performance and long-term value is adopting an incentive-based approach, rather than a punitive one. Incentivizing vendors pays off with profitable business relationships that benefit both the vendor and the client. e secret to implementing a successful incentive-based model is ensuring that clear expectations are established from the beginning and that scorecards are maintained in order to hold vendors accountable to meeting Service Level Agreement requirements. e vendors with the best work performance receive higher pay and priority assignment on future opportunities. Vendors who fall short of performance requirements receive base pay and must complete training in order to receive additional work assignments in the future. When managed properly, national and regional field service providers can leverage technology and performance analytics to evaluate a sequence of factors that help assess and score each vendor's performance on each specific job. is method is performance-based match-making at its best and is a beneficial process for selecting the best skilled vendor to complete the work in the specific area. Managing large volumes of work requires our company to strategically utilize advanced technology applications and its network of local independent contractors to control the desired outcome. HomeStar has invested a lot of time and resources into developing technology solutions that effectively manage process workflows and timelines for construction, field services, and hazard insurance claims on multifamily, single family and commercial real estate portfolios. One of the technology features utilized is a vendor management tool that gives users the power to manage, rate, assign, track, and contact vendors and clients directly through the application. Having the ability to rate and track vendor progress in real-time through a centralized application is extremely important to the scorecard process. e system dashboards and reports allow the company to access data that can be analyzed to improve processes, pricing, and vendor relations. is means quick access to advanced vendor network maps and quick dispatch to exceed timelines. But there is a bigger picture than just rewarding the small field service vendors for doing good work. While the idea is virtuous in itself, the combination of providing positive incentives to local vendors has a pronounced ripple effect. It helps breathe life into local economies by strengthening small businesses and thereby the local job market. e incentive contributes to community revitalization and helps our industry keep the American Dream alive. The key to implementing a successful incentive-based model is ensuring that clear expectations are established from the beginning and that scorecards are maintained in order to hold vendors accountable to meeting Service Level Agreement requirements. The vendors with the best work performance receive higher pay and priority assignment on future opportunities.

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