Advise & Consult, Inc. | September 21, 2015
As construction estimate expert witnesses, many of the cases that we are involved in don’t necessarily revolve around the construction defect or property damage itself, but what the cost of the repairs will be. If anyone has ever gotten multiple estimates for any type of work, you know how likely you are to get a wide range of estimates – and the more estimates you get the wider the range could be.
A tool that we at Advise & Consult, Inc. use is Xactimate, an insurance industry leading software used by 22 of the top 25 insurance carriers, that is used by companies who write more than 80% of homeowner property claims estimates in U.S. Xactimate is a software program that is used to calculate accurate estimates for construction and/or renovation projects.
The makers of the Xactimate software compile price lists that reflect market prices for materials and labor in a particular geographical area. These price lists are based upon surveys of vendors, contractors and suppliers in each geographical area. To ensure that its pricing information remains current, Xactimate regularly updates its price lists. At the time of Hurricane Isabel, Xactimate updated its price lists quarterly. Xactimate now updates its price lists on a monthly basis.
Within each price list, Xactimate uses a coding system to identify specific types of labor and/or materials. Once an estimator decides what type of work must be done on a project, he/she can break that work out into very specific line items and, using the codes in the price list, identify very detailed “per unit” pricing information for each such line item.
Ultimately, the estimator needs only to input appropriate measurements or quantities for a specific line item, choose the appropriate code for that line item, and Xactimate will calculate the total cost for that line item of the project.
When working on an estimate in Xactimate, one creates what is known as an “ESX” file. This is a computer file (similar to an “XLS” file that one creates when using Microsoft Excel). The ESX file tracks the information that an estimator plugs in to the estimate (such as quantities, measurements, etc.); the price list being used; and other information related to an estimate. Using the electronic ESX file, one also can determine where an estimator deviated from the price list and track other changes that the estimator made to an estimate.
When an estimator completes an estimate using Xactimate, he/she can print out a final estimate from the ESX file.
Each Xactimate price list is given an alphanumeric identifier. When a user creates an estimate in Xactimate, the estimate automatically includes the alphanumeric identifier for the price list upon which the estimate is based. Thus, the price list identifier will appear on the estimate unless the user intentionally deletes that information from the final estimate.
While Xactimate does its best to provide as highly accurate information as possible, there are ways to manipulate the out coming report, if one wants to be deceptive, or honestly makes a mistake. This will then create a construction estimate dispute, which is one of the construction related areas that we excel in.
Eugene Peterson, owner and head expert witness at Advise & Consult, Inc., has used Xactimate from its inception and worked closely with its creator, James B. Loveland. He is one of the foremost expert witnesses in the country that provides independent expert witness testimony in insurance dispute and construction defect estimate cases and specifically those involving reports created with Xactimate. His expertise has led him to all four corners of the United States working on insurance disputes and finding discrepancies in reports and helping to find solutions in estimate disputes or providing a quality construction estimate that avoids a dispute in the first place.