2007 Executive Leadership Conference

[Sentry]

Good morning, & welcome to the 2007 NIR Executive Leadership Conference. I hope that everyone had a safe trip here. Take this opportunity to post some comments about the conference, speakers, accommodations, anything you feel is worthy of conversation.

[Jeff]

Great Conference, valuable information learned all around speakers and guest

[Lee]

This was a good conferenece, good speakers and put together well. Got an email from Art Martin this am, (one of the speakers that was not able to make the trip) his recover from surgery did not go well. He did send an apology to all and offered written copies of his presentation to any members interested.
Question: There has been discussion of doing a one or two day estimating traning seminar in the next 4-8 months. We would like to know the interest level of the members and if they would be willing to invest the time for such an event. Thanks for any feedback.

[Sentry]

I would be interested in attending an estimating seminar, and helping out any way I can.

[Lee]

Thanks Chris. We are trying to see what kind of interest there is among our members. I want to know where that 18% is and how to stop from leaving it lay around. I will keep in touch.

[Julie]

Hi - I actually just got finished with working with Art Martin on a project here in Hendersonville,NC. He is doing much better. Our group has talked about it and would be interested in working on estimating at a seminar etc. Just keep us up-to-date with any details.

[Lee]

Thanks for the interest Julie. We will try and keep all updated as it develops.

[Lee]

Something for thought; we are pursuing gathering information for having some Xactimate training as a part of this proposed estimating seminar. The training would not be through Xatimate. Any thoughts?

[Sentry]

There was a new company at the conference, two guys, real sharp, from out west. I don't have their cards at my fingertips. One of them is an Xactimate trainer of some kind. Maybe they might be interested in sharing.

[Martinwoods]

As I said at the conference, I've been attending for near 18 years. I always leave with several ideas worth pursuing and implimenting. I really liked a lot of what Bill Wagner talked about, measureing perspective employees. We are looking into it very seriously. Mike (the consulatant) had a lot of good thoughts and made me rethink some of what we are doing. I liked what Walter Lee and his group had to say about estimating and gross profits. I really admire what LJ Roth is doing. They are really thinking outside the perverbial box in their business development efforts. That's the kind of orginanality that we all need to compete with all these third party programs and other insurance company silliness.

The numbers of attendees is difficult to keep up each year, not because the information isn't there, it definately is. It's because certain companies come for a few years, get what they need and forget where they got it from. I've stayed on for 3 reasons. One is, I get great information every year that I can't get anywhere else and it helps me run my business better. Secondly, the people I've met through the assocation have been tremendous and extremely helpful and open to sharing ideas. Thirdly, I think we owe it to the newer companies coming up, to help them, as we were helped when we needed it. Maybe we should start an Alumni Assocation, like colleges do and expect our old memebers to stay on in some capcaity, either as speakers, board memebers and contributors.

I want to thank everybody who worked so hard to put the conference together and thank all of you who shared your thoughts and ideas so freely. I can't wait until next

(What, no spell check on this thing?)

[Lee]

Well said Martin!

[High Desert]

I'd be interested in a training seminar.

I'm certified as an Xactimate trainer, but I've only done a lot of one on one training. I haven't taught any "classes", but I'd be more than happy to share my knowledge.

I've been beta testing xactimate 25 for the last few weeks, so I've got a pretty good idea of what is coming down the line as well.

[Lee]

Let's talk further about this. Give me a call on my cell 540-537-3900.

[kevin godfrey]

I want to thank every one. This was my first real trade conference since I started doing Insurance restoration. More information than I could grasp. Many things I will be incorporating into the business.

Someone had mentioned on their xactimate they leave a statement on the front page to the effect that if the estimate it not held to its entirety (customer wants to pick and choose) that it invalidates the estimate. That is a big problem that we at Heritage Restoration deal with the customer wanting to do the easy high profit part of the estimate. Curious about getting a little help on this one if at all possible. Thanks, Kevin

[Sentry]

Kevin,
We put that statement into our contract. Also, the estimate that is attached to & part of the contract (that describes "the work") is a customer no-totals copy, and has no line item prices.

[kevin godfrey]

Thanks, I guess that is going to be my next undertaking. I have been getting away with a basic Authorization to Repair before we start any emergency services and then relying on it for the major restoration repairs. Probably not very smart way of doing things.

[Lee]

Kevin, here's what we run into. We prepare a repair estimate and send it to the adjuster; once the scope and total are settled then we go to the customer to walk through the scope of repairs and the total. Its at this time that we find out the adjuster has sent a copy of our estimate to the insureds along with a check. (As said in an earlier post, we only give the customer a "no-totals" copy). So then we learn that the customer has already gone through the estimate and decided which parts they want to do and which parts they want us to do. It never fails, they want to do all the easy higher profit items and leave the grunt and trash work for us. On smaller projects (around $3,000-$5,000) we don't allow scope changes; but,we do offer to write a new estimate but we won't just delete the line item and the associated monies. Larger projects are somewhat different; we are willing to allow customers to make some alterations to the scope. However, if they are seeking to cutout parts of a project that affect the profit potential or can affect the scheduling and coordination of tasks or even affect the successful outcome of a restoration project then we will not negotiate the scope or pricing with them.
Couple other thoughts: We will generally get a copy of our estimate ("no-totals") to our customer early and then inform the adjuster that we have already done so and ask that they not forward a copy of the pricing breakdown to them. We outright ask adjusters not to forward our estimates to customers and have explained the problems we run into. Some are willing to agree but most really don't care or don't see a problem and send a copy.
One thing we have considered doing is attaching a clause to estimates sent to adjusters that states that the estimate is intended only for the party it is sent to and that the estimate cannot be copied, reproduced or given to others without the senders permission. It sounds good, but I don't know whether it would fly or not, and if they send it anyway; what would we do to them. Like I said, we've only considered it. One final thing would be to send only a "no-totals" copy to the adjuster. Truth be known, they aren't really entitled to a complete pricing breakdown anyway, but again; don't know that this would fly either.
All this being said, I know what you're up against and don't feel too bad, most everyone else is too. I'm w/Martin; I can't believe that there's no spellcheck. Anyway, hope this helps.

[kevin godfrey]

Thanks for the input Lee.
One thing we have done that seems different from anything I have heard yet (I am sure there is a reason) is that we get contract to do all restoratoin services before we start any work or do any written scopes. Seems to be a good time to do it during emergency restoration stage. If they have a problem with this contract and it is a large loss we fall back on a lesser contract to do emergency services and hope we can get our foot in the door. We don't hold people to the stronger contract or push the issue if they don't want us. Usually it is mutual and we are avoiding a headach. This stronger contract does give us some leverage with the policy holder and the insurance adjuster in negotiating the price and scope. I rarely do estimates on jobs without contract, though I have charged for them a few times when it seems appropiate.

[Sentry]

Smart move, Kevin. We won't do a job much over $5,000.00 without a contract in place. We also use subcontractor agreements on all subs, on all jobs.
One idea to fight the "cherry picking" of estimates would be to use a homeowner indemnification & hold harmless if you do not do all the work. Require the propertyowner to indemnify you in case there is liability resulting from his or his people's work (or lack of). This can protect you from the "shotgun" approach to lawsuits that attorneys use.

[Sentry]

.....and we charge for estimates if we know we are not likely to do the work as well. Usually 1.5% of the estimate amount, or a $500.00 minimum if it is smaller. If an adjuster needs an estimate, however, we would not charge him.

[High Desert]

I put this footer on all of our estimates that are sent to adjusters:

" This document is for internal preliminary estimating purposes only. Individual line item values may or may not reflect actual real world costs. This is a confidential document. This document has been provided to the adjuster for competitive bid analysis purposes only. DO NOT forward this document to any other party."

It doesn't stop all of the adjusters from sending out our estimates to the customers, but it does give me something to show the customer before I explain to them why it is not acceptable to "cherry pick" the fat out of the estimate.

It usually works. It has even helped us in court when a customer argued that we were only entitled to 10 & 10.

[kevin godfrey]

I can tell there has been a little thought into that statement. Probably fine tuned over a period of time. With minimal wording a lot is said. Another thing I like is that it does not appear that it would offend adjusters. Thank you for the input.

[BillingConsultants]

Estimating Training is critical to anyone in the insurance restoration industry. We all know that this is our lifeline in this industry when it comes to profits and margins, not to mention good project management and budgets.

Time and Material Billing is another subject that most overlook when it comes to training or having some speak on this subject at their conference.

I would be happy to talk to anyone about setting up a training seminar and speak at any conference. I have 25 years of experience in the Insurance Restoration Industry. I am the author and developer of Contractor Billing Solutions a Time and Material Program designed for the Insurance Restoration Industry. Our Program is being used by some of the largest Restoration Companies in the industry and is accepted by many Insurance companies, Adjusters, Consultants and several national retail and Multifamily Companies.

If you are interested please contact me at Webmaster@timematerialsoftware.com and please visit our website at http://www.contractorbillingsolutions.com

Thank you and look forward to any comments