Price List Commentary & New Line Items – August 2018
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Price List Update Commentary
NEW LINE ITEM ALERT!!!
August was a typical month of price list updates. Although there were only 10 new line items added this month, we think that a couple of these new line items will have a significant positive impact on swift and noble claims settlement.
Let’s first explore (DRYMASKSF> Floor protection – plastic and tape – 10 mil):
Over the last couple of years, the marketplace has come around to the understanding that the masking activities associated with drywall/plaster are separate and distinct when compared to paint masking. In that vein, we are encouraged to see that there are new drywall/plaster floor protection items being introduced. Let’s explore the intent of the pricing department. Here are the 3 main drywall related line items:
The intent of how these line items can be quickly inferred when one considers the default variable that populates in the calculation field.
To be clear:
- DRYMASKLF = Perimeter ceiling
- DRYMASKSF = Walls & Ceilings
- DRYMASKSF> = Floor
It should be self-evident that these three line items are NOT mutually exclusive, they are intended to work together to contemplate the covering/protecting of various building components (varying labor and material component buildups).
Common scenarios and warranted applications:
DRYMASKLF = (PC)
- (a) Applied when crown molding is involved
- (b) The ceiling is not being textured, yet the top portion of the walls are being textured
- (c) Around windows, door openings
DRYMASKSF = (WC)
- (a) Applied when cabinets or similar building features need to be covered
- (b) The ceiling is being textured and the adjacent walls are not (not a terribly common scenario)
- (c) Applied in an ad-hoc containment capacity as it relates to missing wall type scenarios
PDRYMASKSF> = (F)
- (a) The floor is being protected because the ceiling is being textured
- (b) The walls are being textured and the ceiling will be left unmolested; this scenario may warrant a partial floor calculation (e.g., F*0.5)
Now, let’s talk yield!
APPRGG+++ Range – freestanding – gas – Deluxe grade was added this month.
The addition of this deluxe grade gas range prompted us to explore if installation labor yields are dynamic/different throughout the freestanding gas range line item series.
After pulling up all the related line items, and reviewing the yields it quickly became clear that all the yields and associated installation values were all the same, regardless of the appliance grade. This same characteristic can also be observed as it relates to the sink installation line items illustrated below.
In short, high-grade (and above) sinks are typically regarded as undermount sinks. Undermount sinks require twice the labor to install the sink when compared to an overmount sink. And before you say it, (CABCTGMS Add on for undermount sink cutout & polish) line item includes finish carpentry labor only (no plumbing labor) It exists to provide relief for the additional labor required to artfully cut out and polish the undermount sink opening, nothing to do with the sink/p-trap etc. In summary analysis, high-end appliances and plumbing fixtures typically require more labor to install. Users should be aware that the labor associated with these higher-end line items may warrant some evaluation and potential adjustments. The most sophisticated expression of how to address these potential shortcomings include updating the direct yield associated with the line items in question via the custom price list portal.
Currently, the assembly info associated with this new line item (APPRGG+++ Range – freestanding – gas – Deluxe grade) reflects 0.703 (see above) as the yield. The assumptions associated with APPRGG+++ work in the following way:
- “Direct Yield” of 0.900 (i.e., it is assumed that a plumber can install one deluxe grade range in ~66 minutes)
- “Yield” of 0.703 (i.e., once the supporting events are applied, the “Yield” is reduced by 22% to accommodate the following (Image). So with these inefficiencies applied, it now takes a plumber ~78 minutes to install the same range – see the supporting events below.
Having a holistic understanding of the line item component build-up can really help contractors and claims professionals quickly settle micro claim disputes.
Note: If the user chooses to deviate from the Xactimate plain vanilla yield, it is Actionable Insights position that these updates should be made with an eye toward supreme transparency. In practice, it is recommended that users detail their reasoning, support and methodology associated with the yield update in the F9 note(s).
Price List Update Summary
New items added for the August 2018 price lists
1. APPRGG+++ Range – freestanding – gas – Deluxe grade
2. CABCUB+++ Custom cabinets – base units – Deluxe grade
3. CABCUFH+++ Custom cabinets – full height units – Deluxe grade
4. CABCUV+++ Custom cabinets – vanity units – Deluxe grade
5. CABCUW24D Custom cabinets – wall units- up to 24" tall- Deluxe grade
6. CABCUW30D Custom cabinets – wall units – 30" tall – Deluxe grade
7. CABCUW36D Custom cabinets – wall units – 36" tall – Deluxe grade
8. CABCUW42D Custom cabinets – wall units – 42" tall – Deluxe grade
9. DRYMASKSF> Floor protection – plastic and tape – 10 mil
10. PLAMASKSF> Floor protection – plastic and tape – 10 mil
Items modified for the August 2018 price lists
1. FCWNFCPSN* Added text to Included field of (-) definition to clarify removal of foam underlayment is included.
2. RFGSTNBB* Added text to Excluded field of (+) definition to clarify assumptions for hip/ridge nailer boards are not included.
3. RFGSTNBC1 Added text to Excluded field of (+) definition to clarify assumptions for hip/ridge nailer boards are not included.
Green items added for the August 2018 price lists
1. APPRGG+++ Range – freestanding – gas – Deluxe grade
Future changes and additions to look for in upcoming price list publications
1. Item for detaching a water heater by a mitigation company (when another company is resetting).
2. Item(s) for temporary tarping with sandbags.
3. Item(s) for deluxe grade appliances.
* Signifies changes to multiple items with similar selectors.