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The usefulness of Parameters in Large Loss Restoration


     By M.G.D. Claim Services Inc. Commercial Large Loss Consultants/Adjusters

PhoneCall Marc Dubois at (321) 591-6115


As persons who utilize the services of restoration firms for either expensive and complex projects it is beneficial to view the process through an informed prism. I have alluded to several factors that should be taken into consideration before during and after the project is underway. A process audit will confirm the validity of the methods, equipment and labor utilized to complete the project however as they say an ounce of prevention is better than a pound of cure.
1) A diagram with a specific nomenclature accompanied by a well defined repair process allows your vendors to bid on a job where you control the situation. This negates opinions on methodology and repair parameters. This also ensures uniformity of estimate format as everyone is talking the same language.

2) Determining and documenting the right measurements of a structure ensure you are paying for whatís there. Itís amazing how six inches here and there add up to thousands of dollars.

3) It is common today for the restoration firmís estimator to hand off the job to a project manager. As everyone shares in the jobs profits the more hands in the pot the higher the costs. This also necessitates frequent change orders because of the discrepancies found in executing the job.

4) Be sure that the contractor who signed up to do the work is actually doing it. Beware of contractors who actually hire lower priced talent to do the job. Require all invoices pertaining to the sub trades.

5) Some delays are inevitable, however on projects where business income loss is a factor a penalty for non timely completion should be a part of the contract.

6) Some major restoration firms require their management price jobs with a minimum 50% gross profit and a net of 18%. This is over the inherent margins built in to the labor rates, equipment rentals and the O&P.

7) Building drying through desiccant or refrigerant dehumidification should be governed by psychometrics, the science of drying. Based on the relative humidity and temperature and volume of air it is reasonably easy to determine drying times and the necessary equipment to achieve a desired result. This eliminates the need for the placement of excessive equipment in any given area.

8) A Critical Path Management protocol should be provided by a contractor or restoration firm on projects over 100k. The CPM details the recovery process, provides timeframes, equipment, material and labor usage anticipated and the costs attached. If a contractor canít tell you how, when and how much before starting you might want to review your choice.

9) Drying charts detailing relative humidity, temperature and moisture content should be produced on a daily basis for all affected areas to rationalize and justify dehumidification efforts and charges. If you canít ascertain how wet it was how do you know how dry it needs to be.

10) Be sure that the employee being charged out at a specific labor classification possesses the necessary I.I.C.R.C. or A.S.C.A.R. qualifications to merit receiving the concordant rate. This is especially true during Cat situations where casual labor usage is high.

11) Verify supervisor to laborer ratios as well as equipment to space usage for discrepancies. Most software estimating programs summarize categories but do not provide ratio analysis.

ABOUT THE AUTHOR: Marc Dubois
Marc Dubois is a an Executive General Adjuster with 37 years multi line adjusting and management experience with an emphasis on large commercial property loss.

Copyright M.G.D. Claim Services Inc.

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While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.
For specific technical or legal advice on the information provided and related topics, please contact the author.

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