The first and most important step to writing a good estimate is to properly and thoroughly identify the necessary scope of loss. This is not to be confused with the estimate, but is simply an itemization of what needs to be repaired. Some items require little sophistication to identify, such as drywall, paint, or carpet. Knowledge of repair methodology, technology in the mitigation industry, and construction materials is what separates a logical and defendable scope from one that is illogical and indefensible. Spend some time either in trade magazines, including engineering and construction disciplines, or on the Internet looking at products and methods available on the market. Other sources of information are material wholesalers and service providers. Also, make sure the quality level of the components being inventoried is known. It may be necessary, for example, to have carpet sent to a lab to determine the weight, weave, composition and other details so you can use an accurate material price in your estimate. If a unique item needs to be priced, additional research or assistance may be necessary.

Negotiation can be more effective if one process at a time is addressed. When addressing a construction process, negotiating an agreed scope of loss can be accomplished more easily without the pricing attached. This can be done by a joint inspection to review the scope of loss in a text format. Once the scope is agreed upon, apply pricing to the scope. When entering the pricing, look for duplications. For example, when an adjoining wall is involved, it is unnecessary to calculate the linear footage of that wall in both rooms. Doing so doubles the cost of framing the adjoining wall.

Understanding Line Items
Each of the scope lines becomes a line item in the estimate. It is imperative to understand what is included in the work process of the line item selected. If the particular unit processes are dissimilar, the pricing should be different. If there is a significant difference between your estimate and the one you are reviewing, and they are both on a computer platform, request an estimate printed with line item descriptions. If you are deadlocked over pricing and both parties want to come to a resolution, be methodical when approaching the other party to identify the points of disagreement. If scope has been agreed upon and the disagreement is over price, line-by-line review of the estimate can be helpful.

Understanding what is included in the line item price is the first step in deconstructing the source of disagreement through line item detail. Of course, this assumes the price or details were not being edited for dodgy reasons. There should be an explanation for any pricing modifications. Part of the editing process involves placing the process in the proper trade category. This typically is found with items like mask and tape. If this isn’t included in the line item process, a selection between drywall or plaster work vs. painting should be made so a trade breakdown of the estimate includes the price in that trade segment.