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Keeping up with these important new Xactimate line item codes will help your profitability and accuracy. We will aim to let you know when new line items are developed that will affect Xactimate pricing for water damage.
We will not let you know all the line items created each month. Instead, we will specifically target new Xactimate line items for water mitigation. When estimating water restoration in Xactimate, we normally deal with WTR, HMR, CLN, CON, and DMO. We may occasionally dabble a bit in PLM, FEE, TMP, CAB, and a few others. Also, we will focus on how these new line items could affect your bottom line (positive or negative).
Ever-Growing List of Xactimate Line Items
Each month, Xactimate adds new line items to the price lists. This is one way Xactimate tries to keep Xactimate pricing up-to-date. Not only do they add new Xactimate line items, they also make adjustments to existing line items each month. For example, they may adjust line item sketch attributes, labor efficiencies or even modify a line item note description.
These changes may seem minor, but they could provide clarity on a line item that is in question. Line item justification is the bedrock of accurate estimates that can be settled quickly. Knowing what is included or not included in a line item may mean you’ll need to use a different line item or use an additional line item to properly invoice for what was done onsite.
Importance in Staying Up to Date with Line Item Changes
Often, estimators increase their efficiency by finding patterns that can be repeated over and over. They may use macros or other templates that make estimating easier. Unfortunately, by doing this, new Xactimate line items are often missed. It could be months, or in some cases, years before someone may recognize a line item that we should have been using but didn’t even know it was there.
We could blame Xactimate for this and ask why they didn’t let us know it was there! But they did! Each month, Xactimate puts out an email detailing all the new Xactimate line items that are included in that month’s price list.
HMR & WTR HBAGG and HBAGG>
For example, in January, a few line items were added to HMR and WTR. These line items were HBAGG and HBAGG>. This is for plastic glove bags for hazardous material cleanup. That is a good line item for wrapping pipes when dealing with hazardous material. To be honest, I don’t think we will use that line item very much in our company.
WTREXTG
Wait…. This line item has existed for some time. Why is it on this list? While the line item is not new, the note for this line item was revised. They added a line that helps “clarify category 2 water can deteriorate to category 3 depending on various factors”. Now, did we need this added to Xactimate to know this fact? No. Anyone that has taken an IICRC WRT course or has read the s500 definitions would know this. But not all adjusters get this training. So having justification in both the standards and in Xactimate, where an adjuster can easily access the information, can ease negotiations.
What are some factors that would cause the water from a category one or two source to deteriorate? Why are we sectioning off Category 2 from Category 3 when the labor burden should be very similar as the workflows for Cat 2 and 3 projects are the same in the 2021 standard? Those are different questions that we should examine another time.
WTRGRMS
We all know there is no magic way to get rid of mold. Per the s520 2.1.1, source removal is the way to handle mold remediation. “Liquid products should not be used as an alternative to physical removal of mold contamination.” Section 2.1.1 also states, “Stain removers should only be used to address aesthetic and cosmetic discoloration from prior fungal activity after all cleaning (source removal) and antimicrobial procedures are completed.”
This new Xactimate line item was developed to cover the mold stain remover used on mold remediation projects. Is this a fair, justifiable, and profitable line item? Yes! Previously, some contractors were using the WTRGRMB or WRTGRMBIO to account for the stain removal. This was inaccurate and also raised red flags as to why this line item was being used twice (antimicrobial and stain removal). Also there is a material price difference between an antimicrobial and a stain remover. What makes this line item more profitable? Whereas WTRGRM is $.34 /sq ft, WTRGRMS is $.76 /sq ft.
On a mold remediation project that is in a crawlspace (1,000 sq ft), a contractor should remove the insulation. Then perform cleaning of the subfloor in the crawlspace. Then use an antimicrobial. Following that, if necessary, a stain remover can then be used. In the past, a company would have used WTRGRMBIO twice totaling $680. But using the new Xactimate code, the same job would be $1,100! That’s a difference of almost 62%!
WTRBASE>
This new Xactimate line item is for removing multi-member baseboards. Of course, if you are removing and bagging multi-member baseboards, the line item would be WTRBASEB>. This line item will cause some consternation to some contractors. Why?
When handling multi-member trim line items, most would just double up on the variable. That way the baseboard removal was $1.11 and the additional members were also $1.11, equaling $2.22 /lf. This new Xactimate line item is currently $1.56 /lf. While it is less money, the yield may be more accurate doing it this way.
Conclusion
These line items have been added between Dec 2023 and Dec 2024. Xactimate line items for water restoration don’t happen every month. But the ones that come out are crucial. If you have suggestions for line items, you should email pricing@xactware.com. For example, if you feel a fire category should be added, email pricing. You may want to show them that the time it takes you to remediate a Category 2 and Category 3 project is the same as you still need to wear PPE, set up containment, and clean according to the 2021 standard. The more we can use our voices to inform Xactimate of the contractor’s side, the better the tool will be for us.
Nick Sharp
Nick Sharp has worked with Jeremy Reets for nearly 2 decades. He started in carpet cleaning and mitigation before moving to the construction side as a project manager. He then was the senior estimator for Champion Construction for over 8 years. Since its inception in 2015, Nick has been an instructor of our Restoration Estimating & Negotiating course. His most recent venture is as a restoration estimate consultant. Nick is an Xactware Certified Trainer and also has his Levels 1-3 Xactimate Certifications. He’s a bad boy on that sketch but better at finding where you may be losing money!
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