Policy holders that have experienced an insurance claim seek their work to be performed by a reputable contractor. Once the contract (or work authorization) has been signed, the estimator heads to the job site to scope the loss. While many estimators are very good at what they do, there are always areas where the scope could me more defined or additional scope items added. Someone needs to review over the estimate to ensure that adequate scoping has taken place. When a project manager receives the estimate to start on the repairs, they expect to have the funds necessary to complete the project. Restoration estimating is an art and should be reviewed on a regular basis. Estimators can become numb to the estimate itself and would benefit by sending the estimate to a reviewer/auditor.
Not only would the estimator benefit by increasing the potential revenue for the loss, the policy holder also benefits. Increasing the potential revenue for the job allows the project manager to allocate adequate resources to the job, enhancing the ability to perform a better repair for the client. Many restoration organizations are only making 35% on their reconstruction margins. Unfortunately, this is not enough as most restoration organizations run a 35% overhead. It’s imperative that a restoration company hire a consultant that’s experienced obtaining 50% margins on the reconstruction side of the business.
Restoration business clients expect the contractor to perform the repair as if the problem never occurred in the first place. Give your organization the opportunity to generate more revenue and profitability. This will not only help the organization to be able to afford the best in the industry, but also allows for your organization to grow in the long run. Restoration owners that have utilized us to review their estimators’ scope have told us that they received 10% and beyond more than they ever have.
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