I recently was discussing the lack of training and scope of works that are produced with other senior building consultants and engineers. I produced a presentation last year. The presentation went for 3 hours and was well received. I thought some members may receive some value from the presentation.

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Welcome to a brief presentation of the matrix of the insurance industry 2019
The industry has evolved through many changes in the past 25 years and further
changes will eventuate as the industry is confronted by global warming,
Today we will focus on understanding the estimator and supervisors roles.
The role of these positions are demanding, especially during CAT events.
I trust this breif presentation will inform and increase your potential.

2. Our objectives today: -
1. The supervisors and estimators process and how they affect and make the difference,
2. Templates, Estimator tools and reference guides,
3. Major Event & CAT strategy and preparation,
4. Major Loss & CAT Scope of works,
5. The commercial insurer,
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3. The supervisors and estimators process and how they affect the claim and make the difference:-
1. BAU:
● Daily procedure’s,
● Diversions,
● Scope of works and definitions,
● Costing,
● Pricing reference guides,
● Supervisors and estimators quick reference guides,
● Winning a greater percentage,
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4. Contracts and
excess issued
THE PERFECT WORLD
Supervisor –
programing
the job
Trade Trade Trade Trade
Accepted
Sign off
Admin invoice
to insurer
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5. 5

6. All deviations come at a cost
Name these costs in real terms 6

7. The Scope of Work (SOW) is a formal document that describes the work activities, deliverables, timelines
and milestones, pricing, quality requirements and governance terms and conditions
Special emphasis should be given to the statement of work, wording to avoid or make impossible two
different interpretations of the same SOW.
A well thought out SOW should avoid,
● Arguable or ambiguous phrasing,
● Must identify the project deliverable and its objectives.
The SOW must describe in detail the:-
● Expected performance of the contractor,
● Clear,
● Complete,
● Logical ,
● Concise,
● Objectives / Purpose Statement,
● Scope of Works,
● Schedule,
● Price,
● Key Assumptions,
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8. Challenges faced in Creating a precise SOW - Major loss
The key challenges that you may face while preparing the SOW:
Complex in Nature – Every contract is unique in nature and therefore the SOWs
performance to them will have to be written accordingly.
This involves a complete
● Understanding of the project requirements,
● The type of work involved,
● Duration,
● Other criteria so that an efficient contract can be established.
May times the failure to give attention to detail and draw up a quick scope of work document just to
complete formalities and have the project started.
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9. Risks Involved
The SOW is the backbone of the project depending on which the project is carried out smoothly.
There are many risks involved such as:-
● Financial implications,
● Penalties,
● Legal risks,
● Violation of the agreement,
● Risk to organization’s reputation that will spring up because of a poorly written scope of works.
A precise scope of work enables your orginisation to get the maximum out of a contract, helps you
establish good customer relations and earns better respect in todays market place.
It enhances your credibility and reflects your professional approach towards conducting business.
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10. Let us now view a typical Scope of Works.
Let us now view a typical Scope of Works carried out by an unnamed insurance builder
OPEN PLAN LOUNGE/DINING & HALLWAY 10500mm x 4500mm
1. Remove and replace 70mm colonial style skirting boards allowing to re-grout back into floor tiles Approx.
30Lm ready for painting by others inclusive of removal and replacement of 1 off 2040mm x 820mm x 35mm
flush face hollow core door and 1 off 2040mm x 720mm x 35mm flush face hollow core door allowing to reuse
existing hardware
2. Prepare seal and paint new skirting boards, new doors and all walls approx. 91m
The scope document is very brief in any form of detail.
Breaking this Scope down:
and replace 70mm colonial style skirting boards allowing to re-grout back into floor tiles Approx. 30Lm
ready for painting by others inclusive of removal and replacement of 1 off 2040mm x 820mm x 35mm
flush face hollow core door and 1 off 2040mm x 720mm x 35mm flush face hollow core door allowing to
reuse existing hardware
Prepare seal and paint new skirting boards, new doors and all walls approx. 91m
The scope document is very brief in any form of detail. Breaking this down:
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11. The missing detail:
Item 1:
● Item 1 has 3 items in the same sentence and no detail.
● There is no nominated contractor to perform the works as in the carpenter, or any of the other trades, so this can be
interpreted by the sub-contractor carrying out the works, that they can send any one to perform the works.
● There is no PC allowance for any plaster works that may be affected by the skirting removal with regard to paper
tearing at the skirting level.
● There is no nominated methodology of the works to be performed.
● The quote states painting all walls, there is no procedure, to how they will be painted – one coat – two?
● No definition of the materials being used i.e.: painting, what brand of doors to be supplied etc.
● No locations – living room – kitchen etc.
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12. 12
A more detailed scope of works

13. 2. Templates, Estimator tools and reference guides,
Templates of Jobs CompletedScope of works template - Drop down boxes.docx
The below examples rely on separate work shops to develop and implement,
Overall stored data view,
Reference guide
Building Codes,
Reference guideBuilding CodesBuildingStandards6-4-10.pdf
Supervisors quick reference guides,
Reference guideEstimating toolsEstimating quick guide spread sheet.xlsx
Pricing guides,
Reference guideEstimating toolsPricing
Templates: Having a stored template for each job – Escape of liquid – Bathrooms - Fire
You can use them over and over again – just change the values
Templates of Jobs Completed
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14. The importance of Creating and saving templates storage data for future use.
Most scopes when referring to a particular claim, all have a common data input:
Examples:
Escape of liquid,
Storm – Hail,
Fire,
Break and enter,
Malicious damage,
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15. 3. Major CAT and Major Loss Event strategy and preparation:-
● What is the difference between a Cat and major loss,
● Pre event planning and training,
● Capacity and response,
● Reconnaissance,
● Detailed assessment,
● Templates,
● Quotation and repair process,
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16. What is the difference between a Cat and major loss
A CAT is the term used for the size of the event, this refers to all services deployed to prepare and
deploy many days before the CAT – think Earthquake – Cyclone
That require all services utilised for months during the event.
A Major Loss event is the term for smaller sized events, this refers to a few suburbs being affected and
the need for emergency services in a controlled way. Think the Blacktown hail storms. With few
emergency service being required after a week.
Looking at the CAT’s that have affected Australia in the order of cost to the insurer
But first a look at the northern hemisphere.
As companies expand, you may find your self being deployed to other areas besides Australia.
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17. Major Loss and Catastrophe Events by Loss
Looking at two of these CATs
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18. Cyclone Tracy
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19. Newcastle Earthquake
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20. 1999 Sydney hail storm caused hail the size of grapefruit, damaged
200,000 homes and destroyed 60,000 cars
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21. January 2013, Bundaberg experienced its worst flooding in recorded history as a result of Cyclone Oswald.
Floodwaters from the Burnett River peaked at 9.53 meters. Over 4000 properties and 600 businesses had been
affected by floodwaters, which moved in excess of 70 km/h
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22. 22

23. Reconnaissance:-
Conducting and surveying the damaged areas,
This includes but is not limited to:
● The construction of the buildings,
● The year they were built,
● How they were built,
● The construction materials,
● Maintenance issues,
● Inherent defects,
The collected information forms the backbone of the repair process and a detailed assessment
handbook,
Reference guideCompany event proceduresAssessment report.pdf
Reference guideCompany event proceduresCAT Response Analysis Matrix.xlsx
Reference guideCompany event proceduresQueensland Capacity Plan - Supervisors.xlsx
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24. Detailed assessment
● Understanding the repair process (flood)
Reference guideFloodfema_initialrestorationfloodbldg.pdf
● Site awareness procedures,
Reference guideEvent repair sheetsQuick guide for flood inspections.docx
● Itemised a cost structure for the specific event,
Reference guideEvent repair sheetsProforma of Builders Schedule of Rates - Issue 1.docx
● Reference guides,
Reference guideEvent repair sheetsrepair-roof-after-cyclones.doc
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Templates examples:
● Hamilton Island – photos – scope on page 41,
Hamilton IslandJob- Hamilton Island-SOW-01-PM.docx

25. E). The insurers expectations:
● Knowing what is required by the insurer,
● The insurers PDS and what it means to you,
● Typical claims under $10,000,
● Commercial major loss claims and how to navigate through them,
● Engaging engineers,
● Building consultants,
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26. Item 5
Breakdown the 4 areas of a claim:
Commercial claim actually have a long life span, due to the many stake holders involved.
Policy document – disclaimers (page 25),
Référence guideCHU Documents102540-Commercial-Strata-PDS-WEB-11_15.pdf
1. Strata – Most minor claims relate to escape of liquid, burst aged building water pipes, storm water, sewer
pipes and waterproofing membrane failure (bathrooms – external),
Reference guideCHU DocumentsAshfield sewer defect.docx
1. Impact damage – retaining walls – fences – impact to the building,
Reference guideCHU DocumentsDee Why fence impact damage.docx
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27. Major loss – hail – commercial buildings – the key point here is when there is a major loss, other
departments will also be engaged on the domestic front – additional resources will also be required on the
commercial space.
Eexample: The 2014 CBD Brisbane hail storm – every high rise was affected to some degree – most required
roof replacement. Most of the building were between 10 to 14 story’s ,
Photos - documents used in the presentation2014 hail - Commercial Brisbane CBD.docx
This will require
● Training on commercial buildings – structures,
● Structured reports,
● Complex scope of works,
● Engaging with engineers, civil, structural,
● Architects,
● Brokers,
● Strata managers,
● The insurers claims management team,
● Unit owner,
● Traffic management,
● Crane knowledge,
● Commercial grade SWMS, 27

28. Brisbane 2014 CBD hail storm,
Photos - documents used in the presentation2014 hail - Commercial
Brisbane CBD.docx
Please feel free to contact, if you require further expansion on the
above presentation.
Peter McNamara
0407 478 368
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