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How a project starts is critical to set it on the right path to producing a positive customer experience and a profitable conclusion. A contract forms the legal agreement between a willing buyer (the customer) and a willing seller (the contractor). The contract is built upon the foundation laid from a clearly defined agreed-upon scope of work. What is and, as importantly, what is not included in that scope of work is outlined in the contractor’s estimate. Let’s discuss three guiding principles for better project outcomes. Element 1 - The Claims StandardThe Claims Standard is a guiding principle for all members of your team, and it crystallizes the responsibilities of all parties in the insurance claims relationship. Restoring the property to resemble pre-loss conditions, with materials of like kind and quality; no more and no less. Your initial site inspection identifies the affected areas related to the source and extent of the damages.
If everyone on your team understands and continues to frame the project in accordance with The Standard, all parties will have a clearer understanding of the parameters for success. I believe that when you properly implement this simple narrative into your process, from the outset, you can help steer the project lifecycle more consistently to a successful outcome (habit). Setting the expectations at this point in the project sets the team up to execute realistic expectations during production.  Element 2- A Simple Estimating FormulaEstimating is the process of establishing the agreed-upon scope and cost for a given project. As contractors, we utilize a simple estimating formula to guide our process: Thorough Data Capture (TDC) + Accurate Data Input (ADI) = A Defensible Estimate (ADE) If you are struggling to produce consistently positive project outcomes, you should review whether your data inputs (estimate) are accurate as well as whether your data capture (documentation) is thorough. You must take accountability for this truth: The quality of the data inputs (composed estimate) is in direct correlation to the quality of the data captured. Everyone on the team should understand the importance of gathering and sharing quality documentation from the worksite. To tie these two elements together, the estimator will do everyone a favor by making the previously mentioned Standard clear at the outset of every claim. Your introduction could be something to the effect of, “My job is to perform thorough data capture of the site conditions so that I can accurately data input to generate an estimate for an agreed-upon scope (most likely through Xactimate) to restore your property to resemble pre-loss conditions.” Many customers choose to upgrade materials or use the damage scenario as a time to finally make those remodeling changes that they have been contemplating for months. Before a restoration contractor can bid the changes to the client, everyone needs to be clear on what is part of the insurance scope so the proper charges are going to the correct parties.  Element 3 - The Restoration TriangleThroughout his career, Pete Consigli, The Global Restoration Watchdog, trained restorers to value the Restoration Triangle. Each party brings something unique to the table that should be heard and referenced as the agreed-upon scope is established:
Pete reminds stakeholders, “If one of these parties is left out of the process of determining and agreeing on the extent of damage, scope of repair, cost of restoration to a pre-loss condition, timelines, and criteria for satisfactory completion, then there will be problems.” A claim should not follow the narrative of a T.V. drama or a strategy for Survivor, whereby two members of the triangle team up to push their narrative through. For example, the contractor and client should not be in cahoots to figure out a way to “maximize the claim” without justification. This is fraud. Neither should the contractor and the carrier be working together to dwindle the scope. This is short-changing (and likely grounds for bad faith).  Developing Your Estimating ProcessBetter project outcomes start with better project initiation. As an owner or manager, if you want accountability within your systems, you need to ensure your processes are clear and consisstenlty followed. As an estimator, you need to acknowledge your role in setting up your team for success. As a team, everyone has to work together if the process is going to improve. We know there are two primary goals,1) produce a happy customer, hopefully resulting in repeat and referral business (the best kind), and 2) a profitable project so that we can invest in people and growth. My soon-to-be-released fourth book, How Not To Such At Estimating, will also be a course delivered through Restoration Technical Institutes' learning platform. The content is designed to help restoration professionals develop Habits for Better Project Outcomes. I will share at least 3 more elements to add to your estimating toolbag. If you are interested in peer-reviewing a chapter or would like to be considered to win one of 12 FREE copies for aspiring intentional estimators, please contact The DYOJO through the book's landing page.
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Lisa Lavender, Restoration Technical Institute (RTI) reached out to me about developing a course around the principles in my first book, Be Intentional: Estimating. While this book centers around the mindset and habits for insurance claims estimating success, the course will dig deeper into the technical aspects. The working title for the book and the course is How To Not Suck At Estimating: Habits For Better Project Outcomes. Module/chapters will include Developing The Agreed Upon Scope, The Claims Standard, A Good Sketch Is A Good Start, Don't Play The Blame Game, and more Episode 80 of the The DYOJO Podcast will center around four common estimating approaches including, using drywall repairs as an example:
Our discussion includes appearances by these guests:
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THURSDAYS ARE FOR The DYOJO Podcast We aim to entertain while we inform (INFOtainment), helping you shorten your DANG learning curve. New episodes of The DYOJO Podcast are released on Thursdays via video through YouTube and/or audio is distributed through platforms such as Apple, Spotify, Google, etc. Learn more by visiting our website  Obligations For Insurance Claims Investigations According to the state of Washington Administrative Code (WAC) 284-30-370: Standards for prompt investigation of a claim. Every insurer must complete its investigation of a claim within thirty days after notification of claim, unless the investigation cannot reasonably be completed within that time. All persons involved in the investigation of a claim must provide reasonable assistance to the insurer in order to facilitate compliance with this provision. In the second part of our conversation with Roger Howson (Seattle, WA) and many others, we discuss the insurance claim appraisal process. Episode 78 of The DYOJO Podcast will touch on topics, including
While many contractors dabble in policy interpretation, often because they think they are doing the right thing for the client, they may be crossing into the territory of public adjusting without a license. Roger discusses how, "If it walks like a duck and talks like a duck, it better be licensed like a duck." Andy McCabe shares a story where he had to answer some tough questions with an Oregon insurance investigator. Our guests will include:
THANK YOU TO OUR SPONSORS:
THURSDAYS ARE FOR The DYOJO Podcast New episodes of The DYOJO Podcast are released on Thursdays 9am PST via video through YouTube and/or audio is distributed through platforms such as Apple, Spotify, Google, etc. Learn more by visiting our website - www.thedyojo.com/podcast  Contractors and customers feel the squeeze when the insurance carrier plays pricing games with the estimating and collection process of insurance claims restoration. We discuss New Construction Pricelists being applied to restoration scenarios with contractors in Minnesota, California, and Washington. We discuss the issue, rebuttals, and resources including the Restoration Pricing Position Paper from the Advocacy and Government Affairs Committee (AGA) of the Restoration Industry Association (RIA), “New construction price settings in certain pricing programs increase labor productivity which reduces prices in a way that may not be appropriate for restoration. Indirect tasks that must occur to accomplish direct repairs – known as “Supporting Events” – may need to be appropriately adjusted due to the extent of the damage in a restoration project. This discussion educates the listener on the underlying factors which lead to these manipulations and provides the contractor with some well-thought-out rebuttals. While there are no cheat codes that will eliminate the squid games, restorers will find it refreshing to know that resources are being created and advanced regain and maintain sustainable claims practices. The DYOJO Podcast, Episode 77 includes these guests and appearances:
Sponsors of The DYOJO Podcast: * Restoration Industry Association (RIA) - Restoration Industry Association (RIA) Join your fellow intentional restorers at the RIA 2022 International Restoration Convention and Industry Expo, April 11-13 at the Peppermill Casino in Reno, NV. Let them know The DYOJO sent you. * Restoration Technical Institute (RTI) provides world-class training. Designed for those who serve the Restoration, Cleaning and Industries related to the Built Environment. * Office Services by Brandi, LLC provides unparalleled personalized bookkeeping services to a broad range of clients in many states. Brandi will help tackle the never-ending list to be done in the restoration industry by handling the R&M billings, collections and many other key areas to take the burden off the owners. THURSDAYS are for The DYOJO Podcast New episodes of The DYOJO Podcast are released on Thursdays 9am PST via video through YouTube and/or audio is distributed through platforms such as Apple, Spotify, Google, etc. Learn more by visiting our website - www.thedyojo.com/podcast We resume our series, The Xactimate Sessions. We are discussing the mindset and habits that have helped your peers in the insurance claims industry to elevate their scoping, estimating, and project management game. File 006 introduces the audience to Joyce Gabriel, a talented general manager for a full-service restoration company based in Tacoma, WA. Listeners will remember when Joyce joined us for podcast episode 52 to discuss some of the powerful tools she has learned for connecting with and interacting with your team. Joyce rejoins the podcast and helps us explore the mindset and habits for effectively training your employees to understand and utilize the Xactimate estimating software.  Xactimate Podcast DiscussionThe Xactimate Sessions from The DYOJO Podcast File 006: Training Others In Xactimate Season 3, Episode 75 Guest: Joyce Gabriel, General Manager (Tacoma, WA) Our discussion includes appearances by these guests:
Sponsors of The DYOJO Podcast
The DYOJO Podcast New episodes of The DYOJO Podcast are released on Thursdays 9am PST via video through YouTube and/or audio is distributed through platforms such as Apple, Spotify, Google, etc. Learn more by visiting our website - YouTube.com/thedyojo Technology is creating opportunities for insurers and contractors to consolidate resources for all parties to a claim. While many claims professionals are familiar with the concept of 360-degree scan and/or photographing technologies, I meet many who do not know how to utilize these resources. My goal with this article is to share how 360 scanning can help expedite claims collaboration. Expedite claims collaboration with technologyIn property damage claims, thorough data capture is essential. We know that a picture speaks a thousand words, so what is the value of a 360 capture that can be reviewed by anyone with access? All claims professionals are familiar with the awful feeling when they don’t have the one picture that they need to support a claim-related item. With the tools I mentioned, you can take a screenshot of any area in question that was not previously captured. If an adjuster and a contractor are negotiating a claim, they can both access the scanning resource and discuss claims items with the benefit of a three-dimensional room-by-room review. Additional Resources from The DYOJO
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AuthorJon Isaacson, The Intentional Restorer, is a 19 year veteran of the property restoration industry and a business coach through his organization The DYOJO. Archives
May 2022
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