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Reconstruction Man
124 Posts |
 Posted - 04/13/2004 : 15:26:32
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Kile sez,
"The bulletin is only refering to claims when O&P is legitimately necessary. It does not say that O&P should be added to all loss settlements. Let's keep our facts straight."
(Interesting how three short sentences can overlook so many business / consumer / people issues).
Actually:
The bulletin is plainly and factually referring to ALL construction businesses values built into premiums not being commensurately returned in carriers and adjusters reconstruction estimating / claim settlement practices.
Business OHP (operational overhead and reasonable profit goal) cost factors are economically necessary for single trade construction businesses or general construction businesses to exist.
Those are basic business economic facts we are sure any knowledgable business entreprenuer would agree to Kile.
We are certain no one, properly informed in business economics math, would want to claim otherwise. Remove OHP "oxygen" dollars from a business budget...and the business expires.
Since those business [sustainable] economic facts are true, each type construction business should be able to show their OHP operational values in their estimates. Insurers know this and use construction business estimating programs that have the ability to hide (or show) each single trade and /or G.C. business OHP totals in their estimates presented to a policyholder.
IntegriClaim, Xactimate, NCE / National Renovation & Insurance Repair Estimator, etc. construction business cost "books" know what single or multi-trade [G.C.] constructed estimates should look like. Insurers single trade and/or G.C. 10/10 OHP "allowance" principle has been a premium paid component / claim settlement payment cost component constant owed for a long, long time.
Itemized structural component repair estimates adjusters hand homeowners should reflect values that will support various "loss" repair contractors operational business costs, and [sound] time tested positive, estimating norms.
Also, the theme of the TDI bulletin, regarding premium values and indemnity commesurate claim settlement FACTS, refers to ALL construction businesses (single trade specific (or general) contracting businesses) values being, in effect, in the premium payment. The pre-determined premium value always anticipates a G.C. business model. Adjusters reconstruction estimates / settlement values are to mirror premium reconstruction economic values in their estimates. Single trade loss repair scenarios, or otherwise.
If not, the insured (policyholder) is charged for reconstruction dollars never to be returned when a partial / pro-rata (ACV) or single trade "loss" repair scenario occurs.
Case-in-point, insurers or adjusters who remove (dismiss) roofing component costs, or other operational costs, in claim estimates that are G.C. quantified (ie; 2-3+ trade "loss" repair scenario = G.C. is now allowed as policyholder contractor-of choice) then factor in G.C. 10%/10% OHP are estimating in a competitively false manner and are deceiving the general public as to what constitutes a "good faith" claim settlement.
This is an even more serious carrier / adjuster conduct issue, which the TDI bulletin "facts", and claim settlement RULES, clearly and specifically address, in their bulletin...and which rules are supported by other fair business trade laws and principles.
Now, because of carriers / adjusters practice of removing G.C. OHP in G.C. quantified estimates, (here in South Texas) sound construction business estimating methodology "appraisals" are becoming necessary. The premiums' intrinsically unique business model "range" tolerance does not mean the (materials / labor only) "low bid" contractor pool is premium "legal" competition.
Construction business CPA's, for appraisal and umpiring tasks, will iron out those ["bad faith"] claim estimating methodology
"wrinkles".
Let's review...Construction business economics ignored, premium values ignored, construction / adjusting estimating programs OHP functions turned to zero, pseudo construction business estimating methodologies, avoiding premium commensurate claim settlement estimating...and the reason for TDI bulletin B-0045-98 like facts become quite clear.
Listen to business owners. Listen to the premium. The premium can testify to it's economic allowance factors. Listen (with precision) to TDI.
Specific policy premium value "facts" are already (TDI) straight.
http://www.tdi.state.tx.us/commish/bulletins/b-0045-8.html
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LMLinson
USA
22 Posts |
Posted - 04/13/2004 : 15:47:06
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| Yet another thread somehow converted into an argument as to whether or not O&P should be attached to every claim. Con Man, you are really a piece of work. See the opening statement of this thread and it doesn't have anything to do with O&P. Have you ever been able to beat a dead horse back to life ? |
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Ghostbuster
476 Posts |
Posted - 04/13/2004 : 15:54:56
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| Roy, I recall you once threatened with banishment those whose posts are disruptive and not germane to catastrophe adjusting. Does not Recon Man meet those standards? |
Edited by - Ghostbuster on 04/13/2004 15:56:30 |
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katadj
USA
315 Posts |
Posted - 04/13/2004 : 16:05:12
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Hey Ghost, this is a democracy, (sort of). How about we’uns create a poll and have the members vote on it.
It ain’t that hard, see the next thread.
[Oops!]Sorry all: Create New Poll is locked, no can do, maybe Roy can loosen the lock?[Yeah!] |
Edited by - katadj on 04/13/2004 17:13:14 |
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Ghostbuster
476 Posts |
Posted - 04/13/2004 : 16:11:07
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| Yeah, since this is an election year, let's put it to a vote. |
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KileAnderson
USA
875 Posts |
Posted - 04/13/2004 : 16:30:43
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| OK, I'm saying this to you for the last time, Conman. Single trade O&P is included in the regular pricing for every trade. There is no need to add O&P for a single trade job because it is included in the pricing. When you go to get your oil changed do they add 20% to the price so they can make a profit? No, they don't, and do you know why? It's because profit margin is already in the $24.95 posted price. The same is true for single trade repair prices in our estimating programs. When we write an estimate to replace a roof, or a fence or any single trade item the profit for the business is already included in that pricing. The reason O&P is added as a seperate line item at the end of a multiple trade estimate is because it is necessary for the insured to hire a GC and that O&P figure is his "cut" of the claim. Is any of this too hard for you to comprehend? |
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Reconstruction Man
124 Posts |
Posted - 04/13/2004 : 16:31:52
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"The perils of poor performance"
...that's the topic...
Our reply was quite appropriate to Kile Andersons remark to us...and the topic thread mentioned above.
Even someone from Fla. pick up on it being in line with the fluid path of the thread.
Just reply fella's...it's gonna seem like you reaaaly aren't here to problem solve...
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ALANJ
USA
159 Posts |
Posted - 04/13/2004 : 16:49:26
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| Recon Mans post should make everyone think. All this name calling reminds me of my son and his other 1st grade buddies. If you can not post with out name calling then don't post. The world is watching boys and girls. Let's not make it any worse than it is. |
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The perils of poor performance: Volume 1
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