You’re Billing for Fire Remediation Projects Incorrectly… and It’s All Xactimate’s Fault!!!

What category do you use when billing for cleaning and remediating fire projects with
Xactimate? There are a few options. Some use the Xactimate category DMO or CLN. Others use
WTR and HMR. Is there a correct category for these fire projects when using Xactimate line
items? It depends on who you ask.
The challenge is when a contractor uses HMR line items and the adjuster requests them to
revise the line items to DMO, what justification is there for either position? Are there line items
for demoing entire rooms in DMO? Yes. Are the materials being removed hazardous materials?
Possibly so. Are those hazardous materials wet? Maybe. So, how can this be resolved?
Step 1. Justify Your Fire Remediation Xactimate Line Items
An important key to estimating is not allowing line items to determine what the right job is.
Instead, just do the right job and bill accordingly. For example, the most important step in any
restoration project is the safety of the residents and employees on site. According to OSHA
regulations, “The employer shall assess the workplace to determine if hazards are present, or
are likely to be present, which necessitate the use of personal protective equipment (PPE).”
This hazard analysis must be performed by a qualified or competent person. When dealing with
fire remediation, bringing in an Indoor Environmental Professional to determine what hazards
are present is the best option. They don’t necessarily need to write a protocol. But how can you
know what steps to take to clean the building and contents (and what to bill) if you don’t even
know what potential contaminants are on site.
For tips on handling pushback from an adjuster for requesting an IEP, come to our Estimating
and Negotiating course
Step 2. Perform the Work
If the IEP finds evidence of hazardous materials (which on a fire project is certainly possible),
then you know what precautions need to be taken, what PPE shall be worn and how to handle
the removal of materials. If no evidence is found of hazardous contamination, then handle the
project accordingly.
Documentation throughout the remediation process will be important. Taking pictures of the
necessary PPE, respirators, cleaning process, etc. will provide further justification for your
invoice.
The billing portion is just a history of what you did. So, figure out what to do, why it needs to be
done, and then document what you did.
Step 3. Use Xactimate Line Items to Create Invoice

Many would say this step is the issue. Xactimate line items aren’t sufficient. They aren’t specific
to what we are trying to accomplish. As a matter of fact, the entire program is trash…. In my
experience, issues with the first two steps tend to show up on step 3. Then either the estimator
or the estimating software is blamed. Want proof?
If you handle a fire project and use HRM line items, at this point, you should expect to explain
the category selection. When an adjuster or third-party requests justification, what is your
response? What justification can you provide? Not just quotes from OSHA or my IICRC
instructor said… but facts about your specific project? That justification has next to nothing to
do with your estimator (unless you gave them justification and they didn’t provide it in the
billing package). Not providing justification also has nothing to do with Xactimate’s definition of
what HMR is. Providing proof that you followed protocols and actually followed the OSHA
standards has nothing to do with the Xactimate line items either. Instead, what is done in steps
1 and 2 can either make or break your negotiations.
But how do you decide what Xactimate line item category to use?

Step 4. Do Your Part to Make a Change
Xactimate has looked at creating a fire category in the past. They also said they would look at
this issue in the future. The reason they haven’t made this change was because “Fire, smoke,
soot damage, residues, coverages, etc. can vary a lot depending on the extent and/or type of
fire damage which may or may not reflect a particular line item’s assumptions.” They also
mentioned that you should “determine what is appropriate for the specific job and adjust the
modifications.” That would mean based on the specific job, using HMR line items or adjusting
labor trades to HMRT, could be appropriate.
If you don’t know how to adjust labor trades in Xactimate, come to our Estimating and
Negotiating class.
The other part of making a change is trying to adjust things permanently. How can you do that?
Let Xactimate know, with facts, why a fire category should exist. Or why the HMR description,
could add regulated items like asbestos, mold, lead and carcinogenic particles of incomplete
combustion. 10 years ago, how many companies were testing for asbestos on projects they
were performing demo on? A change has started once the facts were established. Our industry
needs to establish a standard practice of testing fire projects. The history has been there for
many years! But the more we test, the more evidence we build, the more billing practices will
adjust.
If we change the standard of care on fire projects, it will cause a change to the billing practices.
How? After evidence is gained, it can be presented to adjusters if there’s pushback. We can also
send this information to Xactimate. Consider emailing pricing@verisk.com. Xactimate stated,
they don’t hear this is an issue very often. So they haven’t made a change. Well, if you think it’s

an issue. Let them know it. The more people that tell them its an issue, the higher the chances
this will get addressed. Do you want a change for the industry when it comes to executing and
billing for fire remediation? We owe it to the wider community of restoration contractors. We
owe it to our employees and their families. We can make this change together!