In the roofing industry, disputes with insurance adjusters over material waste can be a significant challenge. Misunderstandings about waste factors can lead to inadequate compensation, impacting your bottom line. This guide aims to empower roofers by providing essential knowledge on material waste and leveraging authoritative sources like the AICPCU manual to effectively dispute adjusters’ findings.
The Essentials of Construction Costs
Construction projects involve several types of costs that must be accounted for meticulously:
- Materials
- Labor and employer’s burden
- Tools and equipment
- Overhead and profit
- Miscellaneous direct costs (permits and sales taxes)
Identifying and Pricing Materials
Accurately estimating material costs involves two key steps:
- Identifying the materials needed, their quality, and the quantities required for repairs.
- Obtaining current local prices for these materials.
Sources such as the Home Repair and Remodel Cost Guide by Marshall & Swift, L.P., and Walker’s Building Estimator’s Reference Book by Frank R. Walker Company can be invaluable. These resources provide waste factors that apply to various materials used in constructing walls, ceilings, and roofs.
Materials are manufactured in bulk, not made to perfectly fit the details and requirements of a project. Every project will involve some extra material and likely some manipulation of materials to complete the project as designed.
Understanding Waste Factors
Material usage information, often referred to as a “waste factor,” includes two main types of waste:
Cutting and Fitting Waste
This type of waste accounts for materials lost or consumed during the actual fitting process. For instance, when adjusting shingles, depending on the specifics of the project an additional 5 to 15 percent of material should be added for breakage and other waste. Accurate estimations can significantly impact the project’s cost-effectiveness.
Cutting and fitting waste can vary depending on the complexity of the roof’s design and the precision of the initial measurements. For instance, intricate roof designs with multiple angles and valleys typically generate more waste. By meticulously planning and measuring before cutting, roofers can minimize this waste, leading to more efficient material use and cost savings.
Interior Restoration Projects – Milling Waste
Milling waste occurs during the production of milled moldings or cabinets at the lumber mill. This waste factor is often higher than the fitting waste at the job site. When estimating millwork costs, adjusters must account for this additional waste.
Milling waste is an inherent part of the manufacturing process. Understanding this allows roofers to negotiate more effectively with suppliers and adjusters. By recognizing the difference between raw and finished material sizes, you can better anticipate material needs and reduce unnecessary expenses.
Using the AICPCU Manual to Dispute Adjusters’ Findings
Disputes often arise when adjusters argue that starter and hip/ridge shingles are included in the waste calculation. The AICPCU, a highly respected institution providing advanced adjuster training, offers resources to counter these claims. Their manuals, regarded as the adjuster’s bible, can provide credible support for legitimate arguments, ensuring fair compensation for material costs.
Build Stronger with Knowledge
Understanding and correctly estimating material waste can transform your roofing business, leading to better resource management and higher profitability. Equip yourself with the right knowledge and resources, and turn potential disputes into opportunities for demonstrating professionalism and expertise.
Reach out for Clarity
If you have any questions about working with insurance adjusters or need further assistance, don’t hesitate to contact us. We’re here to help you navigate the complexities and ensure your roofing projects are as cost-effective as possible.
