PRICE LIST COMMENTARY & NEW LINE ITEMS – May 2019

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Price List Commentary

Boom! 35 new line items, and of those 35 line items, 10 are very interesting to restorers. The remainder were likely introduced to help manage claim cost via the direct repair channels (APP line item items notwithstanding). In aggregate, these 35 new line items will help champion our ability to settle claims swiftly.

Let’s work the WTR line items first. The pricing department has been working for nearly a year to introduce some new line items associated with performing muck-out activities. In that vein, here are 3 new line items that you guys will have some fun with:

•  WTRMUCK- Muck-out/Flood loss cleanup – Light
•  WTRMUCK Muck-out/Flood loss cleanup
•  WTRMUCK Muck-out/Flood loss cleanup – Heavy

As we were examining these muck-out line items we stumbled across something rather odd. All of these muck-out line items are assigned to the LBR (General Labor Trade Code). This is not terribly common throughout the WTR category code. What is far more customary is that WTR line items are assigned to the CLN-R (cleaning and remediation technician) trade code. Now, before all you restorers run off all half-cocked updating the muck-out trade codes to CLN-R (which will return a ~60-80% increase in hourly rates depending on region) it is important to remember that a credentialed, experienced water technician will perform the work more efficiently. Thus, if the user feels it is warranted to update the trade code from LBR to CLN-R, then it would likely be prudent to increase the Direct Yield (in order to represent the increased efficiency traditionally associated with a trained professional performing a familiar activity). This same notion applies to those that feel it is warranted to update the demo activities associated with roofing removal from DMO (General labor) trade codes to RFG (Roofing). It is AI’s position that the Trade Code update may be warranted, but the update should be met with an increase in the Direct Yield to represent the fact that an experienced roofer is going to be widely more productive per hour when compared to unskilled “Labor Ready” right-on-time talent. Perhaps we will have to commission @Seth Harrison to produce a Xact Hack video that will help unpack the nuances of Trade Codes and Yields a bit more…

5 new line items on the plumbing front. These line items are huge and they will impact our Covered Plumbing Activities Insight Sheet rather fantastically.

Here is what we are now working with:

•  PLMCAP            Gas/water line cap/plug – per cap
•  PLMCAPC          Water line copper cap/plug – per cap
•  PLMPLUGT2      Plug for 1.5" to 2.5" pipe – material only
•  PLMPLUGT4      Plug for 3" to 4" pipe – material only
•  PLMPLUGT6      Plug for 6" pipe – material only

Let’s first examine (PLMCAP Gas/water line cap/plug – per cap): This line item is extremely helpful in a mitigation environment when fixtures are disconnected and the angle stop is leaking. This is all too common. Often when we speak we poll the audience, and in generalities we have qualitatively determined that angle stops leak ~40% of the time. Thus, what is a restorer to do? Mitigating secondary losses and consequential damages is always a prudent move. How might that be achieved? Well, one can braise off these compromised angle stops and set some c-caps. Now armed with access to (PLMCAP Gas/water line cap/plug – per cap) restorers can be made whole for the labor and materials required to mitigate the potential of a secondary loss. As we examined this line item we were drawn to the yield. This line item currently assumes a Yield of 9.00. Thus, once supporting events are applied a plumber is likely capable to install 9 c-caps per hour. We compared this Yield to the Yield associated with a sister line item (PLMSTOP Angle stop valve). We were intrigued to find that (PLMSTOP Angle stop valve) affords a Yield 4.5. Thus, a plumber is slated to install C-Caps at a rate that is nearly 100% faster than angle stops. Now, if we are soldering on these plumbing fixtures it is hard to imagine that one activity would require significantly more or less labor than the other. That said, it is likely that the pricing department contemplated the fact that the lion’s share of these C-Caps will be compression fittings (e.g., Sharkbites); thus requiring significantly less labor.

There are a couple points we feel it is prudent to make here:

1. If a mitigation contractor is installing a c-cap via (PLMCAP Gas/water line cap/plug – per cap), then it may be warranted to augment this line item with (PLMSTOP Angle stop valve) with the activity symbol set to “Remove” as the angle stop needs to be removed prior to the installation of the c-cap.

2. The trade code and subsequent yield updates cut both ways:

a. The (PLMCAP Gas/water line cap/plug – per cap) line item is set to the Plumbing trade. Thus it may be warranted to reduce the cost of this line by updating the trade code to CLN-R if a cleaning and remediation technician is the one performing the work. That said, one could argue that this activity would be performed less efficiently when compared to a plumber, thus the yield could be adjusted down (causing the price to rise) ultimately resulting in these two actions canceling each other out to some degree.

b. As is customary, the removal activity associated with (PLMSTOP Angle stop valve) is tied to the general labor trade code. Thus, if a mitigation technician (WTRLABR Cleaning – Remediation Technician – per hour) is performing the work, it may be warranted to update the trade code to CLN-R. However, the same rules apply and the yields would likely warrant an adjustment up to accommodate the additional velocity in which a training remediation technician would perform this function when compared to a general laborer.

c. In summary analysis, you can drive yourself nuts updating trade codes and subsequently qualitatively adjusting yields. There is no such thing as a perfect estimate – it may make sense to leave the line items outlined above unmolested. But one thing is for certain – if you’re going to engage in this level of sophisticated estimating, keep in mind that Yields can and should be moved up to accommodate economies of scale, and trade codes should not be updated willy-nilly whenever it suits the user. It should be done universally – there is only one version of the whole truth.

Okay, so let’s assume that the copper supply line in question is not a good fit for a compression fitting (e.g., sharkbite), thus (PLMCAP Gas/water line cap/plug – per cap) won’t cut it. We need a line item for a more traditional copper c-cap that is soldered on. Well, we are in luck! The Pricing Department just introduced (PLMCAPC Water line copper cap/plug – per cap). Now when we compare the Yield associated with this line item to its sister line item (PLMSTOP Angle stop valve), we find that they more-or-less reconcile with one another.

•  (PLMCAPC Water line copper cap/plug – per cap) = Yield: 5.438
•  (PLMSTOP Angle stop valve) = Yield: 4.500

Thus, the labor afforded to install a traditional copper c-cap exceeds that of the labor afforded for an angle stop installation. Thus, the labor is likely sufficient and it is neither reasonable nor necessary to augment this line item with (PLMSTOP Angle stop valve) with the activity set to remove. This is why it is prudent to examine the component build-up of your line items. Unless one has mastery over the components and the interplay between yields and supporting events, it is clear that mastery of the program cannot be credibly claimed.

Test Plugs are finally here!

•  PLMPLUGT2 Plug for 1.5" to 2.5" pipe – material only
•  PLMPLUGT4 Plug for 3" to 4" pipe – material only
•  PLMPLUGT6 Plug for 6" pipe – material only

If we see one more job site with a rag stuffed in a toilet flange assembly, we are going to lose it. Your rag is not doing anything to manage noxious odors or mitigate the potential for a secondary sewage loss. In 2018, there was a new addition to the price list that some users conflated with these compression style test plugs. That line item was (PLMPLUG Toilet/sink/drain plug – disposable – up to 4”). If you thoughtfully review this line item, is is clear that it was not introduced to accommodate a compression fitting as it includes an allotment for ABS Cement. So PLMPLUG may be used in a repair capacity from time-to-time but what is more impactful is that test plugs will be more commonly deployed and subsequently invoiced for. This levels up the standard of care for restorers while managing overarching severity for Carriers. It is our position that these plumbing related line items provide value to both sides of the claim simultaneously and that is something Actionable Insights can get behind.

Lets jump over the repair side of the house. There are two new line items for cutting down and fitting doors:

• DORCUTDOR Cut down interior door – slab only
• DORCUTDORJ Cut down interior door and jamb

Now it is worth mentioning that the price list has incorporated this exterior door line item (DORXRETROC Additional Charge to cut down an exterior door) for years, so the inclusion of the interior door line items was likely inevitable. In our estimation, these line items relate closely to (DORPLN Plane and refit door). Best we can tell, if the door requires adjustments to the sides, top or hardware, then DORPLN may be warranted. To the extent that only the bottom of the door needs to be cut to accommodate new flooring, then these new “Cut down” line items will likely be a good fit (see what we did there).

Price lists for Xactimate version 27 will no longer be published after April 2019.

Price List Update Summary

New items added for the May 2019 price lists

1. APPNAPCT Cooktop – electric – per specs from ind. material source
2. APPNAPCTG Cooktop – gas – per specs from independent material source
3. APPNAPDW Dishwasher – per specs from independent material source
4. DORCUTDOR Cut down interior door – slab only
5. DORCUTDORJ Cut down interior door and jamb
6. PLMCAP Gas/water line cap/plug – per cap
7. PLMCAPC Water line copper cap/plug – per cap
8. PLMPLUGT2 Plug for 1.5" to 2.5" pipe – material only
9. PLMPLUGT4 Plug for 3" to 4" pipe – material only
10. PLMPLUGT6 Plug for 6" pipe – material only
11. WTRFCTSN Tear out non-salvageable tile floor, no bagging – Cat 3
12. WTRFCTSNA Tear out non-salv. tile floor, no bagging – Cat 3- aft hrs
13. WTRFCVSN Tear out non-salv vinyl, no bagging – Category 3 water
14. WTRFCVSNA Tear out non-salv vinyl, no bagging – Cat 3 water-after hrs
15. WTRFCVTSN Tear out non-salv. vinyl tile, no bagging – Cat 3
16. WTRFCVTSNA Tear out non-salv. vinyl tile, no bag – Cat 3 – aft. hrs
17. WTRFCVUSN Tear out vinyl & underlay, no bagging – Cat 3 water
18. WTRFCVUSNA Tear out vinyl & underlay, no bag – Cat 3 – after hours
19. WTRFCWLSN Tear out non-salv floating floor, no bagging – Category 3
20. WTRFCWLSNA Tear out non-salv floating floor, no bag – Cat 3- aft hrs
21. WTRFCWSN Tear out non-salv wood floor, no bagging – Category 3
22. WTRFCWSNA Tear out non-salv wood floor, no bag – Cat 3 – aft. hrs
23. WTRMUCKCS Muck-out/Flood loss cleanup – confined space
24. WTRMUCKCS- Muck-out/Flood loss cleanup – confined space – Light
25. WTRMUCKCS+ Muck-out/Flood loss cleanup – confined space – Heavy
26. WTRPLASN Tear out wet plaster, no bagging – Category 3 water
27. WTRPLASNA Tear out wet plaster, no bagging – Cat 3 – after hours
28. WTRPLYTSN Tear out toe kick, no bagging – Category 3
29. WTRPLYTSNA Tear out toe kick, no bagging – Cat 3 – aft hrs
30. WTRPNLSN Tear out wet paneling, no bagging – Cat 3
31. WTRPNLSNA Tear out wet paneling, no bagging – Cat 3 – after hours
32. WTRSFSLSN Tear out subflr, sleepers, no bagging – Category 3
33. WTRSFSLSNA Tear out subflr, sleepers, no bagging – Cat 3 – aft hrs
34. WTRULAYSN Tear out non-salv underlayment, no bagging – Category 3
35. WTRULAYSNA Tear out non-salv underlayment, no bagging – Cat 3 – a/hrs

New personal property items added for the May 2019 price lists

1. SPGRPBP- Pickleball paddle – Standard grade
2. SPGRPBP Pickleball paddle
3. SPGRPBP+ Pickleball paddle – High grade

Price list items modified for the May 2019 price lists

1. APPRF14- Modified description to reference “Standard" grade.
2. APPRF18- Modified description to reference “Standard" grade.
3. APPRF18++ Modified labor yield in (+) assembly.
4. APPRF22- Modified description to reference “Standard" grade.
5. APPRFB18- Modified description to reference “Standard" grade.
6. APPRFB22- Modified description to reference “Standard" grade.
7. APPRFB25- Modified description to reference “Standard" grade.
8. APPRFS18 Modified labor yield in (+) assembly.
9. APPRFS18- Modified labor yield in (+) assembly.
10. APPRFS18+ Modified labor yield in (+) assembly.
11. APPRFS18++ Modified labor yield in (+) assembly.
12. APPRGDL4- Modified labor yield in (+) assembly.
13. APPRGDL4 Modified labor yield in (+) assembly.
14. APPRGDL4+ Modified labor yield in (+) assembly.
15. APPRGDL6- Modified labor yield in (+) assembly.
16. APPRGDL6 Modified labor yield in (+) assembly.
17. APPRGDL6+ Modified labor yield in (+) assembly.
18. APPRGDOG4- Modified labor yield in (+) assembly.
19. APPRGDOG4 Modified labor yield in (+) assembly.
20. APPRGDOG4+ Modified labor yield in (+) assembly.
21. APPRGDOG6- Modified labor yield in (+) assembly.
22. APPRGDOG6 Modified labor yield in (+) assembly.
23. APPRGDOG6+ Modified labor yield in (+) assembly.
24. DRYPATCHJ Added text to Notes field of (+) definition to clarify this item is not intended to be used with DRY PATCH item for the same repair.
25. EXCBFH Modified “offsite" to “off-site" in Excluded field of (+) definition to match similar items.
26. EXCEXCH Modified “offsite" to “off-site" in Excluded field of (+) definition to match similar items.
27. WTREXTWP Modified “offsite" to “off-site" in Notes field of (+) definition to match similar items.
28. WTREXTWPA Modified “offsite" to “off-site" in Notes field of (+) definition to match similar items.
29. WTREXTWPTM Modified “offsite" to “off-site" in Notes field of (+) definition to match similar items.
30. WTRFCVUVSA Removed a space from the description.
31. WTRMUCK* Modified “offsite" to “off-site" in Excluded field of (+) definition to match similar items.

Material components added for the May 2019 price lists

1. APPNAPCT Cooktop – electric – per specs from ind. material source
2. APPNAPCTG Cooktop – gas – per specs from ind. material source
3. APPNAPDW Dishwasher – per specs from independent material source
4. PLMCAP Gas/water line cap/plug
5. PLMCAPC Water line copper cap/plug
6. PLMPLUGT2 Mechanical test plug for 1.5" to 2.5" pipe
7. PLMPLUGT4 Mechanical test plug for 3" to 4" pipe
8. PLMPLUGT6 Mechanical test plug for 5" to 6" pipe

Green items added for the May 2019 price lists

1. APPNAPCT Cooktop – electric – per specs from ind. material source
2. APPNAPCTG Cooktop – gas – per specs from independent material source
3. APPNAPDW Dishwasher – per specs from independent material source

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

1. Item(s) for commercial air curtains.
2. Review of carpet installation step charges.
* Signifies changes to multiple items with similar selectors.