RIA Advocacy Helps Deliver New Material Handling Line Item in Xactimate

The Restoration Industry Association (RIA) announced that Verisk is scheduled to introduce a new material handling line item in its Nov. 1, Xactimate price lists for the United States and Canada, following contractor feedback that included a formal request from RIA.

The addition represents practical progress on an issue RIA has raised on behalf of restoration contractors: A lower material price does not necessarily mean a lower total cost to complete the repair.

Lower material prices can come with additional costs

Third-party material pricing and sourcing programs may offer genuine purchasing savings. However, obtaining those savings can require additional work that is not reflected in the material price alone.

A lower-priced supplier may be 20 minutes farther away, adding travel time, vehicle expense and time away from the job. A purchasing requirement may shift responsibility for ordering, pickup and delivery from a subcontractor to the restoration contractor. Staff may need to verify specifications, coordinate availability, receive and unload products or resolve shortages and incorrect orders.

Those responsibilities require people, time and resources. When the purchasing process changes, the estimate should account for the work required—not simply the price of the product.

Flexibility for different jobs and different requirements

The new item will initially appear with a $0 “Each” unit, allowing an estimator to enter a flat dollar amount.

For activities covered by its published definition, this provides flexibility to enter a job-specific amount reflecting applicable material handling requirements. Supporting documentation should explain the additional work and associated costs, without duplicating amounts already included elsewhere in the estimate.

The item is not a preset reimbursement rate, and its published definition will govern its intended use.

“Cheaper materials can offer real savings, but those savings need to be evaluated alongside the work required to obtain them,” said Saima Hedrick, CEO of RIA. “If a contractor must drive farther, manage purchasing or take over material handling previously performed by a subcontractor, that work still has a cost. Our members brought these concerns forward, and RIA acted. We appreciate Verisk’s responsiveness and will continue advocating for estimating practices that reflect the realities of completing a repair.”

Progress, with more work ahead

RIA supports legitimate purchasing efficiencies. Requesting this item does not constitute endorsement of any third-party pricing or procurement program or resolve broader questions about price availability, payment terms, fulfillment responsibilities and additional contractor costs.

RIA will continue gathering contractor input and pursuing practical improvements.

RIA is working for you

RIA’s advocacy serves restoration contractors across the industry—members and nonmembers alike. That work is made possible by members, volunteer leaders and supporters who contribute their experience, time and financial resources. Your participation helps turn contractor concerns into action. Join RIA, get involved or contribute to RIA’s Advocacy and Government Affairs efforts to help advance the next improvement.