As a general reconstruction contractor in the Rio Grande Valley, Texas, I have found-personally experienced Paul Davis Systems and Allstate Insurance Company colluding to rig a repair estimate as an attempt to fool my clients, and neighbors, into believing that General Contractor Overhead and Profit Values are not applied towards roofing costs in a multi-trade scope / reconstruction estimating scenario.
Care for a copy of the documents…?
This kind of insurance “adjusting” and claim “settlement” practice is a large, large stealth like problem in Texas.
Now I’m in Florida assessing-estimating hurricane damages. Interestingly, a Nationwide Insurance claims adjuster has made the same claim… General Contractor Overhead and Profit is not “allowed” [by Nationwide in Florida] to be applied towards roofing costs in an estimate…
It is not a question of “if” it happened, it is a question of the degree and how widespread the anti-trust, collusion and price fixing goes on in Florida.
In Florida it is probably 90% the fault of the brokers since they’re placing thier coastal properties in the E&S market or dealing with reinsurers directly. A sad commentary.
This does not make any sense, why would any contractor bid a job without including Overhead & Profit. Why would a contractor want to do work when they cannot cover their Overhead and make a little Profit. I don’t know about you but I always thought that companies were in business to make a Profit.
If they are going after insurance companies and brokers/agents for making a trading profit, then what about other industries which get discounts for volume buying? that after all is what this is all about.
If they are going after insurance companies and brokers/agents for making a trading profit, then what about other industries which get discounts for volume buying? that after all is what this is all about.
If you receive work from Allstate, and Allstate wants to remove-hide warranted General Contractor overhead and profit in their claimants settlements, in a given region, to keep their loss data artificially low, and you want to remain a preferred vendor, you apparently do what they say…(or pick up the missing OHP in a supplimental check from them…)
Paul Davis Systems and Allstate should be answering to governmental-regulatory authorities sometime soon…
Allstate allow\’s O&P on all jobs. The standard rate in most of Texas is 28 or 29% however, it is ridiculous that a contractor simply putting a roof on a house would expect to be paid a General Contractor\’s O&P of 48 or 49%.
Isn\’t a \”General\” contractor paid the extra O&P to delegate the jobs to other trade contractor\’s??? How many trades are involved in putting a roof on a house??
11-08-2004
As a general reconstruction contractor in the Rio Grande Valley, Texas, I have found-personally experienced Paul Davis Systems and Allstate Insurance Company colluding to rig a repair estimate as an attempt to fool my clients, and neighbors, into believing that General Contractor Overhead and Profit Values are not applied towards roofing costs in a multi-trade scope / reconstruction estimating scenario.
Care for a copy of the documents…?
This kind of insurance “adjusting” and claim “settlement” practice is a large, large stealth like problem in Texas.
Now I’m in Florida assessing-estimating hurricane damages. Interestingly, a Nationwide Insurance claims adjuster has made the same claim… General Contractor Overhead and Profit is not “allowed” [by Nationwide in Florida] to be applied towards roofing costs in an estimate…
(956)-969-4454
It is not a question of “if” it happened, it is a question of the degree and how widespread the anti-trust, collusion and price fixing goes on in Florida.
In Florida it is probably 90% the fault of the brokers since they’re placing thier coastal properties in the E&S market or dealing with reinsurers directly. A sad commentary.
This does not make any sense, why would any contractor bid a job without including Overhead & Profit. Why would a contractor want to do work when they cannot cover their Overhead and make a little Profit. I don’t know about you but I always thought that companies were in business to make a Profit.
If they are going after insurance companies and brokers/agents for making a trading profit, then what about other industries which get discounts for volume buying? that after all is what this is all about.
If they are going after insurance companies and brokers/agents for making a trading profit, then what about other industries which get discounts for volume buying? that after all is what this is all about.
Clif,
If you receive work from Allstate, and Allstate wants to remove-hide warranted General Contractor overhead and profit in their claimants settlements, in a given region, to keep their loss data artificially low, and you want to remain a preferred vendor, you apparently do what they say…(or pick up the missing OHP in a supplimental check from them…)
Paul Davis Systems and Allstate should be answering to governmental-regulatory authorities sometime soon…
Allstate allow\’s O&P on all jobs. The standard rate in most of Texas is 28 or 29% however, it is ridiculous that a contractor simply putting a roof on a house would expect to be paid a General Contractor\’s O&P of 48 or 49%.
Isn\’t a \”General\” contractor paid the extra O&P to delegate the jobs to other trade contractor\’s??? How many trades are involved in putting a roof on a house??