The detailed damage assessment forms the basis for the damage cost estimate, and includes either repair or replacement of the damaged facility or equipment.
A preliminary cost estimate is provided for the insurer to be taken into account in the setting of their reserve. The final cost estimate is a refinement of the preliminary cost estimate as information becomes available such that at any time an updated expected repair cost would be available prior to the final issuance of the cost estimate.
The cost estimate includes all costs expected to be necessary to bring the damaged facility or equipment back to the “as was” condition prior to the incident, including all direct and indirect costs. Factors taken into account in the cost estimate development include:
- Restoration / Repair “in kind” or to “as was” condition pre-incident
- Upgrades needed due to obsolescence
- Maintenance, non-mandatory upgrades and modifications to the facility
- Equipment relocation
- Replacement facility relocation
- Required Code Upgrades
- ACV (Actual Cash Value) calculations for items not being replaced
- Process equipment not in use at the time of the incident
- Process material location and condition
- Testing and Inspection (damage assessment and construction)
- Extra Costs for “work-arounds” to maintain production
- Plant Commissioning
- Plant Start-up
- Other as identified by the insurer / adjuster
Corporate Engineering Solutions has the technical expertise and the cost estimating experience to address all of these potential scenarios, utilizing standard estimating methods and procedures and providing significant backup for all included costs.