Hiring an estimator for your restoration business is one of the most important decisions you will make. Hire the right one and your business is likely to flourish, and you’ll soon be reaping the rewards of your wise choice. Hiring the wrong one could lead you down the road to financial disaster.
Being proficient in Xactimate is important, but relying on it alone doesn’t necessarily mean the estimates created with it will be accurate or profitable. This is where the estimator needs to have in-depth knowledge of the trades, hands-on experience, and be well-versed with the line items Xactimate offers.
Construction Knowledge & Field Experience Trumps Xactimate Knowledge
Keep in mind that Xactimate doesn’t always work in every situation, nor does it have a line item for the thousands of custom or unusual items or materials you may encounter. Hiring a veteran estimator who has a wide range of field experience is important, but keep in mind that doesn’t necessarily mean they must have restoration estimating experience. Overall construction and estimating knowledge is key.
All too often, restoration business owners looking for estimators are inundated with resumes that focus on experience writing estimates for managed repair programs, on small losses, or for insurance carriers that dictate repair methods or scope. Then, when the new hire estimator has to write a sheet on a large, complicated loss that has out-of-the-ordinary elements outside of Xactimate’s line item database, the wheels can quickly fall off. This is where, if you do hire someone with this type of restoration skillset, you need to be committed to training them on how your company creates estimates and scopes, and have a good onboarding plan that doesn’t stop after a few days on the job.
As a restoration consultant, I am hired by contractors, insurance carriers, attorneys, and property owners to consult and/or write estimates on large complicated losses as well as assist with dispute resolution. Just recently, I reviewed an estimate where an “experienced” large loss adjuster wrote an estimate for $125,000 to repair a custom home damaged. I wrote an estimate on the same loss and, after weeks of arguing back and forth, the carrier agreed to pay off of my estimate, which came in at more than $650,000.
The key issues here were not about unit pricing, but a combination of a lack of knowledge of construction and a massive difference in properly evaluating the scope of damage. This wasn’t an isolated event; I experience this situation at varying degrees on every claim on which I am involved.
From time to time, I am asked to speak at training classes or seminars where estimators of all levels of experience enroll to improve their estimating skills and proficiency. My training segment covers, among other things, smoke remediation, restoration methodology, framing, blueprint reading, etc. In most cases, only one or two people per class have any idea how to read plans, scope a total loss, or do a proper material and labor take off. More often than not, inexperienced estimators rely on supplements or their project manager to catch missing items or costs later on. This can lead to doing work for free, signing a job that ends up a loser, or worse yet – the job evolves into a lawsuit.
Here are a few things to consider when hiring a qualified estimator for a restoration company:
An entry-level estimator should have:
- A minimum of five years in the restoration or construction industry at journeyman or foreman level.
- The ability to read blueprints and engineering specs.
- Several years of estimating experience in remodeling, reconstruction, and/or restoration.
- Tech savviness, with the ability to pick up Xactimate if they haven’t used the platform before.
- Passed background checks and drug testing.
- Leadership abilities and a professional demeanor.
- A high school diploma.
- The ability to pass a mock estimating test on a mid-size loss.
If you have an “entry level” candidate with these qualifications, they are ahead of the pack:
- Level 1 certification with Xactimate.
- Passed the National Home Inspector Exam.
- IICRC certification as a technician in water, mold, fire and smoke restoration.
Veteran estimators may require higher salary, commissions, or incentives. Here are a few things that may indicate they have the right experience to come in at a higher level:
- He or she has all the qualifications of an entry-level estimator.
- Proficiency with the use of Matterport cameras, thermal imaging, or other cutting-edge technology.
- Relationships with adjusters, agents, property managers, fire departments, or other potential revenue generators.
- Over 10 years in the restoration industry.
- Experienced as a building inspector, consultant, or appraiser.
- International code council certifications.
- Management or previous ownership experience.
- Ability to train others, project manage, and take a project from start to finish.
- Marketing or business development degree.
- Experienced public speaker.
- Bilingual.
- Experience includes time as an adjuster (this can be a benefit or a detriment, depending on the amount of time spent as an adjuster).
- Ability to write an accurate estimate on a total loss without relying on Xactimate’s evaluation tool.
- Owns and/or has an FAA Remote Pilot Certificate to operate drones.
- Is involved with disaster relief organizations or community service agencies.
Here are some potential red flags to watch out for:
- Criminal background or DUI’s.
- Less than honorable discharge from the military.
- Lawsuit history involving previous employers.
- Delinquent on child support.
- Personality, hygiene, or appearance issues.
- Poor reputation in the industry.
- Health problems.
- Estimator happens to be the spouse or a relative of an existing employee.
- Estimator happens to be the spouse or relative of an adjuster or important client.
- 100% of estimating ability is based on experience as an adjuster without any hands-on construction or restoration experience.
- Minimal longevity at previous companies.
No matter how qualified the candidate is, once you hire someone, your work does not stop there. Make sure you have a good onboarding and training process and/or peer review system in place. This is especially important for entry level estimators, but also important for seasoned pros to help them learn how your company works, expectations, and helps ensure estimates are well written and documented.
Happy hiring!
Sean Scott
Sean Scott has more than four decades of experience in the restoration and construction industry and has published numerous books, papers and articles including Secrets of The Insurance Game and The Red Guide to Recovery – Resource Handbook for Disaster Survivors. If you have any questions, would like to inquire about training or would like to speak to Mr. Scott, feel free to contact him at 858-453-6767 or email [email protected].
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