Large Loss Coordination
Often overlooked (after a loss has occurred) is who coordinates the site? This is usually a more critical decision than who does the restoration work.
Without competent supervision, restoration contractors and the inevitable construction problems that arise during a project can quickly cause the loss to get out of control. Most restoration projects are site managed by the restoration contractor. Letting the contractor have a "free rein" to make decisions may seem harmless, until you consider the consequences.
When a restoration contractor is placed in a bid situation, this usually means stripping away restoration details that could be considered frivolous but are still part of the quality of construction that the insured had before the loss occurred. Saving money on the project costs is now the contractor's priority.
Restoration project site management requires extensive and diverse restoration experience. After assessing the conditions, scoping the damage, and estimating the cost of the restoration correctly, the site manager should be able to have the project completed in an efficient and timely manner, staying within budget.
Although a competent restoration contractor can handle the daily site management, who do you think he's going to protect? The coordinator provides a site management service to protect the integrity of the loss and the restoration cost. By the time a contractor has made the decisions to make changes in the scope of the damage to the property, getting it back on track can be very expensive. If you don't challenge these decisions, you imply acceptance. Trying to get the contractor to correct the deficiencies after they have completed a phase and covered things up is nearly impossible. Preventing this is the role of the coordinator.
Outside influences such as government bodies can directly impact how the restoration process is going to take place. If the insured is not confident that the contractor can effectively manage this, then a large loss coordinator has the experience to negotiate terms to a successful solution. Integral Consultants has many years of experience keeping a project on course. We as a manager can speak the language, and effectively communicate directions and concerns, to the contractor.
To know when to stop a project before costs and problems get out of control is often the most cost effective decision to make. Knowing when to make that call can save money, legal costs and a restoration nightmare! Change orders in the rebuilding process should be issued by the coordinator and not at the request of the contractor. It should always be the adjuster’s or the insured's decision to make changes, not the contractor's!
A Loss Consultant will scope the damage, assess the conditions of the risk, estimate the cost of repair, provide a schedule of the work to be performed, provide all necessary loss reports and revisions, qualify the contractor, attend all site meetings with engineers, inspectors, etc., provide site supervision, quality control inspections, etc. and provide weekly status reports, until the completion certificate is signed and the deficiencies are corrected to the satisfaction of the insured.
An independent broker's obligation to his insured is to assist him if he is having any difficulty or concerns expediting his claim, especially if he is not pleased with the insurance repair contractor appointed by the insurers or the general handling or settlement of his claim. If the broker and insurer is the same (commonly called a direct writer), or the broker is a managing general agent, then the insured cannot be duly represented fairly and an independent party such as a coordinator can step in to resolve the situation.
Claims adjuster and the claims examiners do have very heavy workloads; therefore it would not be unreasonable for a file to be ignored or to fall between the cracks. Even turning these duties over to an approved restoration contractor can have negative results if the restoration contractor does not recognize that the extent of the claim needs more attention than just simply putting back what was originally there before the loss occurred.
