Case Studies
A commercial building was destroyed by fire and demolished with heavy equipment inside during the firefighting process. There was little to no information available from the debris regarding relevant assemblies and finishes. Most information was gathered from Google Earth and a rough renovation floor plan which had been completed several years prior. The building was over 40 years old and had many renovations and additions since the original construction. The debris was full of hazardous materials; thus, all the debris had to be treated, and dealt with, as hazardous waste.
J.S. Held prepared a bid document for debris removal and disposal that was issued to two contractors for pricing. Contractor A was the contractor that responded to the initial emergency, and Contractor B was a contractor that was recommended by the insurer as they had positive working relations in Alberta. Note: this was the first time either the insurer or J.S. Held had worked with the local office in British Columbia for Contractor B.
During the tender process, J.S. Held was contacted by an environmental contractor that had been asked to provide sub-trade pricing for the contractor recommended by the insurer. The environmental contractor stated that he had worked with Contractor B on several occasions and felt that they were not equipped to handle a loss of this size and asked if he could submit a price from his company. J.S. Held discussed this with the insurer, and it was decided that we would not entertain this option.
At the completion of the tender process, Contractor B was recommended as the winning tender and was retained to complete the debris removal and disposal per the bid document. After many delays, the contractor was able to remove most of the debris removed from the site. However, they had uncovered approximately 800 ft2 of asbestos containing vinyl tile. The contractor submitted a change request for the abatement of approximately $48,000.00.
This price was much higher than expected, and we attempted to validate the submitted estimate. J.S. Held also had several meetings with the contractor at which time they were asked to provide two additional estimates which resulted in similar amounts.
After discussions with the insurer, J.S. Held contacted the environmental contractor that had called during the tender process. The environmental contractor stated that they had provided the contractor with a price of approximately $8,500.00 for the work.
J.S. Held brought this information to the attention of the insurer. Based on this information, it was decided to remove Contractor B from the project, and we were asked to prepare a percentage of a completion report with a recommended settlement amount. This amount was accepted by Contractor B, and the environmental company completed the abatement for approximately $14,000.00—a savings to the insurer of approximately $34,000.00.
Stephen Werhun
Senior Consultant
Building Consulting Practice
+1 778 400 5077
[email protected]
> Appraisals
When a dispute is inevitable, J.S. Held prides itself on lending an experienced helping hand for any type of claim, whether it be commercial or personal property. J.S. Held consultants are globally recognized as experts in managing the appraisal process to successful conclusion. We have acted as appraisers and umpires in numerous disputes ranging from homeowners claims to the largest matters in insurance history.
> Property & Infrastructure Damage
J.S. Held provides support on projects ranging from daily residential claims to complex large losses around the world. We bring strength and stability as an independent advisor in determining cause, extent, and duration of damage; repairability; ACV/RCV; delay; period of restoration; and analyzing damages, schedules, and all associated costs.