Price List Commentary & New Line Items – August 2019

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Price List Commentary

So, there were only two line items added to the Price List in August. However, the two new line items are not the big story here. Remember, adjustments to existing and well-used line items are often way more impactful than the adoption of a new obscure line item. While we will unpack the two new line items at the end of this Price List Update Summary, let’s explore the 71 updates to existing line items first.

Thirty-two door line items had their components upgraded from 2 ¼ casing to 3 ¼. This was a welcome and warranted change since door casing is typically at least 3 ¼+ nowadays. See Figure 1:

Legacy (2 ¼”) New (4 ¼”)
DOROAK+    

Figure 1

In addition to the thirty-two door line item, nine Carpenter – Finish, Trim/Cabinet line items also had their casing upgraded from 2 ¼” to 3 ¼.

There was a mild update to the additional item info associated with MASBRKS4; MASBRKS6; MASBRKS8 MASBRKS10 – the additional item info that universally defined an 8” course was removed. We are of the opinion that this 8” was probably added erroneously years ago and to further define the course depth in the additional item info is erroneous as the width of the masonry course is defined via the line item description. See Figure 2:

Legacy (w/ 8” Course) New (Sans 8” Course)
MASBRKS10    

Figure 2

The following four line items were updated: 

  1. MASBRKS10 Brick – structural (Giant brick), 10”
    a. Removed text from Included field of (+) definition referencing item is based on an 8" course.
  2. MASBRKS4 – structural (Giant brick), 8”
    a. Removed text from Included field of (+) definition referencing item is based on an 8" course.
  3. MASBRKS6 – structural (Giant brick), 6”
    a. Removed text from Included field of (+) definition referencing item is based on an 8" course.
  4. MASBRKS8 – structural (Giant brick), 4”
    a. Removed text from Included field of (+) definition referencing item is based on an 8" course.

These masonry line items were separated into 4 sister line items defined based on the width of the brick (4”, 6’, 8” & 10”). The line item description seeks to define the width of the masonry brick, and it does not relate to the thickness of the well itself. The thickness of the wall is often defined by stating it is a “single wythe” or “double wythe” wall. What is wythe? “Wythe” is a technical term employed within the masonry trade to describe a continuous vertical section of masonry. A wythe is one unit thick, and can either be independent or interlocked together with another adjoining wythe. A single wythe, double wythe and triple wythe installation is outlined in Figure 3:

Figure 3

Another term that is often conflated with wythe is “Course”. A course (AKA “outer wythe”) is a layer of the same unit running horizontally in a wall. It can also be defined as a continuous row of any masonry units such as bricks, concrete masonry units (CMU), stone, shingles, tiles, etc… If a course is the horizontal arrangement, then a wythe is the vertical section of a wall. My head just exploded trying to explain that in written word. Again, let’s employ the Actionable Insights design team to help illustrate this concept and refer to Figure 3 above. 

Note: A single wythe of brick that is not structural in nature is referred to as a veneer (AKA MASBRK Brick veneer). See Figure 4:

Figure 4

I trust that is more than you wanted to know about masonry – let’s move forward to the exciting world of roof paneling. 

There was a straightforward update to wall/roof panel – ribbed line items now explicitly include fasteners in the additional line item info. There was no material change to the components build-up or price as these line items have always included the fasteners – the Additional Line Item Info has simply been updated to reflect this reality. 

● MTLPNLR> Wall/roof panel – ribbed – up to 1" – 26 gauge
○ Modified text in Included field of (+) definition to include fasteners.
● MTLPNLR>+ Wall/roof panel – ribbed – 26 gauge – 1 1/8" to 1 1/2"
○ Modified text in Included field of (+) definition to include fasteners.
● MTLPNLRC Wall/roof panel – ribbed – 24 gauge – 1 1/8" to 1 1/2"
○ Modified text in Included field of (+) definition to include fasteners.

Now, let’s talk caulk – acrylic caulk to be eXact. Several years ago our resident 2019 Xactimate Ninja, Ben Justesen, brought it to the attention of the Actionable Insights team that the acrylic caulking allotment within the components build-up associated with the trim/base/casing painting line items was seemingly inadequate as it relates to the linear foot yield. The AI team conducted their own independent research and confirmed that the yield associated with acrylic caulk for the painting line items in question warranted some attention. As you might expect, the AI team has been keeping an eye on these line items in an effort to highlight any material changes to the acrylic caulking yield. Well, Insighters, our tracking these line items was not an effort in futility – in August 2019 the Pricing Department halved the yield from 200LNFT to 100LNFT, in effect increasing the allotment for acrylic caulk by 100%. That said, if you’re a contractor, don’t start popping bottles just yet –  the price for most of these painting line items only increased around $0.01LNFT (See Figure 5). However, the price change is not the point – the real takeaway is that these Price List executives continue to do their darndest to maintain a credible and accurate price list that serves as the baseline for our $200Bn/yr industry.

Legacy New
 PNCC    

Figure 5

Lastly, there was a small tweak to some WTR line items that relate to the demoing of floating floor. This was a mild change to the Additional Item Info that will result in a little more all-inclusive line item. The updated language is illustrated below in Figure 6:

Legacy New
WTRFCWL-    

Figure 6

Okay, and moving on to the reason you are all here – the HOT NEW LINE ITEMS! Well, here is the rub – these line items are not really hot, but if you’re a price list geek, they are interesting as they help acutely illustrate a point the Actionable Insights team consistently makes during our speaking engagements. We often find ourselves hysterically prognosticating about the fact there is an inverse relationship between yield and price.

Figure 7

So… what exactly does that mean? Well let’s unpack the two latest additions to the price list:

  • CLNJSTC   Clean floor or roof joist system in confined space
  • CLNJSTC+   Clean floor or roof joist system in confined space – Heavy

Some of you just got excited! Finally, there are line items for cleaning floors or roof joists in confined space… but this is not a revolutionary as it may appear on the surface. These line items have existed for years within the HMR category: 

  • HMRCLNJST   Clean floor or roof joist system
  • HMRCLNJST+   Clean floor or roof joist system – Heavy

As you can see, these line items already existed, but they are not yet accompanied by a confined space modifier. So why the recent addition to the CLN category? As we understand it, there has been some prolonged pressure via the managed repair channel to categorize fire cleaning activities under the CLN category. This is a measure that would help manage claim severity as the HMR trade code labor rate runs ~100% more than the CLN trade code (depending on region). 

The interesting takeaway for us price list geeks is that the price of these line items is very similar, despite being associated with trade codes that are wildly different in price 

Okay, wait a minute Whatley – how can the price be roughly the same if the labor rate is 100% more? The answer? Yield my friends, the answer is yield. The Pricing Department recognizes that a highly trained professional is going to be more productive per hour, and that increase in productivity can be observed via the delta in yields circled below:

HMCLNJST (Legacy) CLNJST (New)
HMR vs CLN    

Figure 8

In short, once the Supporting Events (inefficiency modifiers) have been applied it is assumed that a Hazardous Waste Technician can adequately clean 47.3 SQFT floor/ceiling joist per hour. Alternatively, an untrained cleaning professional working in a confined space environment can adequately clean 21.3 SQFT per hour. The result? The line items end up paying about the same by SQFT due to the relationship between their respective trade codes and yields. Maybe one day we will be able to compare apples-to-apples if the Pricing Department decides to adopt floor/ceiling joist cleaning line items with the confined space descriptor. Stay tuned!

Aug 2019 Price List Changes Report

Major changes and new items added

  • CLN (Cleaning) – Items added for cleaning floor or roof joist systems in a confined space.

New items added for the August 2019 price lists

  1. CLNJSTCClean floor or roof joist system in confined space
  2. CLNJSTC+Clean floor or roof joist system in confined space – Heavy

Price list items modified for the August 2019 price lists

  1. DORAVModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  2. DORAV-Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  3. DORAV+Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  4. DORBIRCHModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  5. DORBIRCH+Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  6. DORBIRCHDHModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  7. DORCOLModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  8. DORCOL+Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  9. DORCOL8Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  10. DORCOL8+Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  11. DORCOLDModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  12. DORCOLD8Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  13. DORFRXMModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  14. DORFRXM2*Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  15. DORFRXM8Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  16. DORLVR*Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  17. DORMAHModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  18. DORMAH+Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  19. DORMAH++Modified material component in (+) assembly from FNCCH to FNCCH>.
  20. DORMAHDModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  21. DOROAKModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  22. DOROAK+Modified material component in (+) assembly from FNCCH to FNCCH>.
  23. DOROAK++Modified material component in (+) assembly from FNCCH to FNCCH>.
  24. DOROAKDModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  25. DORWFX*Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  26. DORXModified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  27. DORX-Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  28. DORX–Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  29. DORX+Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  30. DORX2Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  31. DORX8Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  32. DORX8+Modified material component in (+) assembly and Quality field of (+) definition to reflect 3 1/4" casing.
  33. FNCATTICModified material component in (+) assembly from FNCC to FNCC>.
  34. FNCDOPModified material component in (+) assembly from FNCC to FNCC>.
  35. FNCDOP+Modified material component in (+) assembly from FNCC to FNCC>.
  36. FNCDOP<*Modified material component in (+) assembly from FNCC to FNCC>.
  37. FNCDOP>*Modified material component in (+) assembly from FNCC to FNCC>.
  38. FNCDOPH*Modified material component in (+) assembly from FNCCH to FNCCH>.
  39. FNCOHJModified material component in (+) assembly from FNCC to FNCC>.
  40. FNCSTOLModified material component in (+) assembly from FNCC to FNCC>.
  41. FNCWOP*Modified material component in (+) assembly and Included field of (+) definition to reflect 3 1/4" casing.
  42. MASBRKS10Removed text from Included field of (+) definition referencing item is based on an 8" course.
  43. MASBRKS4Removed text from Included field of (+) definition referencing item is based on an 8" course.
  44. MASBRKS6Removed text from Included field of (+) definition referencing item is based on an 8" course.
  45. MASBRKS8Removed text from Included field of (+) definition referencing item is based on an 8" course.
  46. MTLPNLR>Modified text in Included field of (+) definition to include fasteners.
  47. MTLPNLR>+Modified text in Included field of (+) definition to include fasteners.
  48. MTLPNLRCModified text in Included field of (+) definition to include fasteners.
  49. PNTCModified material component yield for PNTCALK in (+) assembly.
  50. PNTC>*Modified material component yield for PNTCALK in (+) assembly.
  51. PNTC1SPModified material component yield for PNTCALK in (+) assembly.
  52. PNTC2*Modified material component yield for PNTCALK in (+) assembly.
  53. PNTCHR*Modified material component yield for PNTCALK in (+) assembly.
  54. PNTCMModified material component yield for PNTCALK in (+) assembly.
  55. PNTCM2*Modified material component yield for PNTCALK in (+) assembly.
  56. PNTCNRModified material component yield for PNTCALK in (+) assembly.
  57. PNTCNRSPModified material component yield for PNTCALK in (+) assembly.
  58. PNTCWNModified material component yield for PNTCALK in (+) assembly.
  59. PNTCWN>*Modified material component yield for PNTCALK in (+) assembly.
  60. PNTCWN1SPModified material component yield for PNTCALK in (+) assembly.
  61. PNTCWN2*Modified material component yield for PNTCALK in (+) assembly.
  62. PNTMLDGModified material component yield for PNTCALK in (+) assembly.
  63. PNTMLDG2Modified material component yield for PNTCALK in (+) assembly.
  64. PNTSTOLModified material component yield for PNTCALK in (+) assembly.
  65. PNTSTOL1Modified material component yield for PNTCALK in (+) assembly.
  66. STRDIS*Modified material component in (+) assembly from FNCC to FNCC>.
  67. WTRFCWLModified text in Note field of (-) definition to clarify item is for tearing out floating floor systems such as laminate and vinyl planking.
  68. WTRFCWLAModified text in Note field of (-) definition to clarify item is for tearing out floating floor systems such as laminate and vinyl planking.
  69. WTRFCWLSModified text in Note field of (-) definition to clarify item is for tearing out floating floor systems such as laminate and vinyl planking.
  70. WTRFCWLSAModified text in Note field of (-) definition to clarify item is for tearing out floating floor systems such as laminate and vinyl planking.
  71. WTRFCWLSN*Modified text in Included field of (-) definition to clarify item is for tearing out floating floor systems such as laminate and vinyl planking.

Material components modified for the August 2019 price lists

  1. MASBRKS10        Modified description to reference 9 5/8" x 3 5/8" brick.
  2. MASBRKS4          Modified description to reference 3 5/8" x 3 5/8" brick.

Micellaneous changes to the August 2019 price lists

  • Updated some worker wage rates in California and Washington, D.C. as warranted.
  • In sales tax jurisdiction for Kentucky, modified Job Type name from “Cleaning Remediation" to “Cleaning / Repair" to clarify for users.
  • Changes to Mississippi sales tax standard jurisdictions (e.g. “7%", “7.25%"): Due to recent conversations with the Mississippi Department of Revenue, Xactimate has added an additional Job Type (“Total/DMO Svc. Tax") to the standard sales tax jurisdictions (e.g. “7%" etc.) to give the user the ability to include a total tax on the demolition activities of taxable services. For estimates written with a “standard" type jurisdiction (e.g. “7%" etc.), users can tax the demolition activities of taxable services by selecting the “Total/DMO Svc. Tax" Job Type for the service line items they want to apply a total tax to the demolition portion as well. This can be done within each individual line item in the estimate. Selecting the “Total/DMO Svc. Tax" Job Type will apply a Total Tax to that item for all activities.
    Users still have the option to tax the total of the estimate by choosing the “Total Tax" jurisdictions (e.g. “7% Total Tax" etc.), if the estimate includes only services they know would be taxable for their specific job/contract/service.

Future changes and additions to look for in upcoming price list publications

  1. Item(s) for installing ductwork in a confined space.
  2. Item(s) for commercial air curtains.

* Signifies changes to multiple items with similar selectors.