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Discussion Starter · #1 ·
First timer here...

I am an established gc looking to start working with xact25 for restoration purposes through insurance carrier programs...etc.
Currently I am operating in the area of 27-37% profit with my subs...etc. after the job is done. In other words we are ending up with more profit thatn we estimated/budgeted for.
I have heard the horror stories about xact drywall and paint pricing. My concern is using this software and having these margins slide due to insurance companies pricing...etc.
Can someone shed some light on this for me? I would like to be able to maintain in the 27-27% area if possible.
 

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Welcome to the forum. Where are you located?

As for your question, xact. is simply an estimating program. Unless you are entering into a contractual agreement where you are agreeing to do the work on a unit cost basis, you will still want to estimate it the old fashioned way. Do the take off, price the materials, estimate the time, price the labor, factor in your overhead and then factor in your margin.
 

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Discussion Starter · #3 ·
I'm located in DC/MD.
I hear what you are saying, but the insurance companies tend to want line items based on xact pricing with very few variances... no additional labor line items, no additional min charges on top of drywall square foot charges...etc. This is where my concern is regarding margin.
I can take the prices in xact and see how they stack up to previous estimates, but that is about as educated as my guess can get.
 

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I'm located in DC/MD.
I hear what you are saying, but the insurance companies tend to want line items based on xact pricing with very few variances... no additional labor line items, no additional min charges on top of drywall square foot charges...etc. This is where my concern is regarding margin.
I can take the prices in xact and see how they stack up to previous estimates, but that is about as educated as my guess can get.
My suggestion; estimate it both ways and compare. Make a business decision based on an acceptable margin considering long term returns of a new account.

Keep in mind that you need to be dialed in and be able to justify any changes that they see you have made and above all be fair and honest.
 

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Hello, Piton:

Just checking to see how you are doing with Xactimate. Yes, Xactimate is just that.........an estimating tool, where pricing is based on a combination of current market research and previously accepted unit pricing.

Drywall is one of several line items where unit pricing is low. Unit pricing can be adjusted. The insurance carriers and adjusters will try and tell you different. As long as the unit pricing works to their benefit, the carriers swear by the pricing. When it doesn't work to their benefit, they want to lower the pricing or find a method which lowers to pricing..........bunch of BS for those who don't know how to deal with insurance claims.

I have said this on many post: Insurance restoration is a specialized field, where you not only need to know how to deal with water, fire and mold losses, but you also need to know the principles of drying a structure and what to look for. If you don't use Xactimate properly you can cost yourself a lot of money in missing line items.

Having worked the last 16 years as a restorer and adjuster, please let me know if I can help. You can also email me an estimate and ask for my advice.
 
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