How We Determine Job Cost
How We Determine Job Cost
How Delta Disaster Services determines job cost is a topic that’s come up a few times recently with various customers. It’s a widely unknown topic. Many insurance professionals are even in the dark as to why restoration companies charge what they do – which can be a problem since insurance agents are often the ones who refer our services. In this post we’ll briefly cover a few common complaints we hear, and how we determine job cost. In a later post we’ll also talk about what constitutes fair pricing in the home restoration industry (as determined by insurance companies).
“They were quick on getting to my home for cleanup, weekend and holiday to boot, but their pricing was outrageous for their work. $8,000.00 for cleanup.”
“There were charges for many hours of work when they were only physically at my home for a short period of time.”
“They ran the fans for a couple days and cut out some drywall. Cleaned up. Not sure how many hours they were physically here, but it wasn’t much. Over $3,000 later they were done with the cleanup phase and gave us a bid of over $4,000 to do the minor drywall repairs etc.”
“They never talked price… They just start doing stuff — I guess they just assumed insurance was going to pay for it.”
Overall Cost and Disclosure of Cost Upfront
In most cases, insurance companies pay for restoration services performed on a home. Delta Disaster Services provides homeowners the service of working directly with their insurance carrier (because we are experts in the matter and can save homeowners many hours of time).
We provide the insurance company with estimates, and they pay the bills on behalf of the homeowner. The only cost to the insured is their deductible. If insurance is involved, homeowners are not responsible for paying our entire estimate. Which is also the reason that disclosure of cost (our estimate) is provided to the insurance carrier as they will be paying the bills (not the homeowner).
“High Cost” in Relation to Relatively Low Labor Hours
How could a restoration project cost $3,000 for the water mitigation, or “cleanup,” portion of the job (as mentioned in the quotes above), when our techs were only on-site for maybe 2hours? Equipment. Air movers, dehumidifiers, specialty drying equipment. Personal protective equipment, as necessary, for our techs. Use of anti-microbial agents. Use of containment and negative air. Paying extra wages to techs for emergency service calls (after-hours pay). We are professionals because we not only dry out an area of your home and clean it up, but we prevent mold growth, we protect inhabitants of the home from contaminants in the water that spread through their living room. And we use high-tech equipment and chemicals to make the home safe again.
Join us for part 2 of this series as we delve into what constitutes fair pricing in the restoration industry. We want people to know that we have their best interests at heart. That’s why we’re taking the time for full disclosure on this important topic!