Tim Cordle – How Claims and Invioces are Scrutinized

Air Date: 10-4-2013| Episode: 300


Tim Cordle, MBA – President and CEO of ARISTON, LLC. Ariston, LLC provides consulting services to Insurance Carriers and Counsel in conjunction with large property loss insurance claims, provides litigation support and expert witness testimony for counsel in support of construction defect claims, provides project management and owner’s representation over sight during restoration, reconstruction and renovation...

Full Description:

Tim Cordle, MBA – President and CEO of ARISTON, LLC. Ariston, LLC provides consulting services to Insurance Carriers and Counsel in conjunction with large property loss insurance claims, provides litigation support and expert witness testimony for counsel in support of construction defect claims, provides project management and owner’s representation over sight during restoration, reconstruction and renovation. ARISTON services includes forensic accounting, document review, site information and documentation of insurance claims, cost evaluation and cost to repair preparation, scheduling, statistical and probability theory determination and claim mitigation. Previously Mr. Cordle worked for Munters MCS-Disaster Recovery as the Florida District Manager and as a National Large Loss Project Manager for Belfor Property Restoration. His extensive experience on the front lines of disasters and behind the lines working with insurance companies gives him a unique perspective on how the system works and what contractors need to do to ensure they don’t become a pawn in the disaster restoration chess match.

Z-Man’s Blog:
                                                                          Hired gun
Forensic accounting is the specialty practice of accounting that describes engagements that result from actual or anticipated disputes and litigation. Whether on your income tax return or a large invoice for restoration or remediation service, if you are padding the bill or hiding something, an experienced and motivated auditor will most likely find it. Tim Cordle makes much of his living checking invoices for construction and disaster repair for accuracy. Tim focuses on invoicing line items and categories that his client considers important. Among the many issues he considers are: errors in scope, was the scope completely and properly executed, was the scope adequate to resolve the claim, was the fee reasonable under the circumstances and does the math add up? Contractors on large and complex losses should expect 6, 7 and 8 figure invoices to be closely scrutinized by a knowledgeable auditor or expert before payment is received.

 

Nuggets mined from today’s episode:

• IICRC water damage standard S-500 outlines expectations, performance & documentation. Contractors should expect their work product to be compared to the industry standard.
• Was water intrusion short duration or long term? Long term water intrusion may be the result of a construction defect.
• Does it all add up? Rate sheets, labor classifications of workers, daily sign in sheets. Employee names will be checked against sign in sheets.
• Is the contractor knowingly or unknowingly double dipping.
• Use a control card for each work area. Equipment serial numbers and location on project are important because defective or underperforming equipment may result in prolonged or failed remediation. Serial numbering allows broken equipment to be identified and removed from fleet for service.
• Moisture mapping, moisture readings are important components of an invoice for drying services.
• Equipment rental rates will be compared to the costs of locally available rentals.
• Providing and circulating dry air is the ONLY thing a drying contractor does that creates ANY value. (It does not add value).
• To ensure payment, consultants should mark their work product as DRAFT until paid.Takeaway, Document every project file as though you were going to court.Can the method of work practice demonstrate a superior outcome achieved because of the way things have been done.CZ opines: that the contractor with eyes on the job is in a better position to decide what needs to be done than the consensus of a standards committee.Tim Cordle counters: “It is true that the boots on the ground will be in a better position to access and drive the necessity of veering from S500, clearly S500 is the industry standard for performance. With that said, a contractor must meet those standards to be in a position to defend his invoice to the carrier and through litigation.”

Today’s music: The Good, the Bad and the Ugly Theme by Ennio Morricone

Z-man signing off