Price List Commentary & New Line Items – November 2018

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Price List Update Commentary

We are pumped about the November release!

There were five new line items introduced in November and let’s start with number five. TMPWH Temporary Water Heater – (Bid Item). This line item is a huge advancement in restoration contractors ability to function efficiently in a claims environment when a water heater is in play. Water heater failures are one of the most common types of water losses. Provided these water heaters are located in a non-living space like the garage they don’t often cause enough damage to warrant a policyholder relocating to another property for the duration of the mitigation/repair. Thus, the severity of these water heater related losses are increased due to ALE (additional living expense) as the Policyholders don’t have access to hot water. We realize that some ambitious contractors have developed a bias towards temporary installing traditional heating systems in the middle of the garage (or alike) but we think that represents an outsized risk to the contractor and carrier. Rerouting the HVAC and plumbing supply lines is risky business, we can attest to this because we happen to know a restoration contractor that started a fire in a garage in an attempt to deliver hot water on a temporary basis. In short, there is no good way to temp set a traditional water heater, especially when one considers seismic concessions.

So what is one to do? 35-gallon electric water heaters to the rescue. We cover the merits of this approach in detail throughout or Temporary Water Heater Insight Sheet. This has become the customary approach in So-Cal, we suspect the rest of the nation is gradually adopting this approach. We are interested to see how the marketplace responds to this bis item, will we invoice monthly; daily; flat rate; by the hour or some mix of all of the above.

In other price list news, stakeholders for those that do silicon restoration roofing systems are probably pumped up about the November additions.

Historically, once a commercial flat roof reached the end of its service life, building owners were faced with two options:

Tear it off and replace it (especially common in a claim environment due to pre-loss condition concessions)

Re-cover it (suboptimal for a number of reasons)

Now building owners have a third option:

High solids silicon coating (not just as a protectorant, but as an actual roof system)

The opportunity was created ~25 years ago with the emergence of roofing systems with single-ply white sheets that incorporated closed cell style insulation. Many of these roofs are now at the end of their service lives and are now candidates to be coated. In order to qualify as a candidate for coating, the roof needs to display adequate positive drainage, with saddles and the core samples need to come out relatively dry. The core samples are traditionally taken near the drain systems, these are the lowest areas and are more susceptible to elevated moisture readings. These cores need to be dry, otherwise, the moisture will find its way through the membrane and ultimately compromise the coating system.

There are two key factors that are required to ensure adequate adhesion of the final elastomeric and mitigate the impact of any bond breakers or bleed blocking:

Cleaning:  These roofs are first pressure washed with biodegradable detergents. Thus, CLNPWAH Clean with pressure/chemical spray may be warranted. Some projects may also require industrial floor scrubbers as a second step. Should that be the case, CLNF Clean floor, strip & wax will likely address that additional cost.

Priming: Two-part water-based epoxy primers are often deployed to create a surface profile that enhances adhesion.

Once the roofer is positive about the condition of the primer and the bond breakers have been significantly eliminated, it is now time for coating.

The first step for the coating is the detailed coating and fabric around all the penetrations as required by the manufacturer in order to satisfy their warranty requirements.

Then an inspection of the entire system is conducted prior to doing the application of the final coating.

The final coat is often a silicon-based product and once it is applied at a specific rate it will cure out into a monolithic sheet and the millage will be evaluated to ensure it is within the manufactures specifications.

Speaking in generalities, a coating system is about half the cost of full removal and replacement. In addition to the cost savings, this is an environmentally sound solution as we don’t need to fill our landfills with these old roof systems.

There are some interesting politics around the adoption of these coating line items. Would these coating systems satisfy the intent of pre-loss condition? It is hard to say, and depending on the situation perhaps this may emerge as a noble middle ground. We are interested to hear your thoughts.

Lastly, the Pricing Department adopted Scissor folding gate line item. According to the additional item info, this line item accommodates trackless, steel construction, may be single or double type scissor/accordion folding gate door. This was a solid addition should this obscure scenario arise.

Price List Update Summary

November 2018 Price List Changes Summary

New items added for the November 2018 price lists

1.    DORSPSCR  Scissor folding gate door – steel

2.    RFGSRC       Silicone roof coating – Rib roof

3.    RFGSRCF     Silicone roof coating – Flat roof

4.    RFGSRCP     Silicone roof primer

5.    TMPWH       Temporary water heater – (Bid Item)

Price list items modified for the November 2018 price lists

1.    FCCAV          Added default calculation (F).

2.    FCCAV-          Added default calculation (F).

3.    FCCAV–         Added default calculation (F).

4.    FCCAV+         Added default calculation (F).

5.    FCCAV++       Added default calculation (F).

6.    FCCAVB         Added default calculation (F).

7.    FCCCP*          Added default calculation (F).

8.    FCCGD*          Added default calculation (F).

9.    FCCI/O*           Added default calculation (F).

10.    FCCNFCP      Added default calculation (F).

11.    FCCNFCPGD  Added default calculation (F).

12.    FCCWOOL*    Added default calculation (F).

13.    FCVAV         Added default calculation (F).

14.    FCVAV-         Added default calculation (F).

15.    FCVAV–         Added default calculation (F).

16.    FCVAV+        Added default calculation (F).

17.    FCVAV++       Added default calculation (F).

18.    FCVNFCP      Added default calculation (F).

19.    RFGERC      Modified labor and material component yields in (+) assembly.

20.    RFGERCF     Modified labor and material component yields in (+) assembly.

21.    RFGERCP     Modified material yield in (+) assembly.

Material components added for the November 2018 price lists

1.    RFGSRC      Silicone roof coating

2.    RFGSRCP    Silicone roof coat primer

3.    DORSPSCR  Scissor folding gate door – steel (including hardware)

Green items added for the November 2018 price lists

1.    DORSPSCR  Scissor folding gate door – steel

2.    RFGSRC      Silicone roof coating – Rib roof

3.    RFGSRCF    Silicone roof coating – Flat roof

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

1.    Item(s) for additional types of ornamental iron gates.

2.    Item(s) for temporary tarping with sandbags.

* Signifies changes to multiple items with similar selectors.