Sergon Quantity Surveyors agreed to complete an additional service for Insurers known as a ‘Verify Quote Cost’ (VQC). Quantity Surveyors contacted the Builder and obtained the quotation in a detailed trade format and then analysed the Builder’s resubmitted quotation to compare quoted costs against known industry standards and Sergon’s DCE.
This helped Quantity Surveyors to identify any price discrepancies and check calculations. Our Quantity Surveyors soon discovered that in their opinion the Builder’s quotation included multiple calculation errors. Additionally they demonstrated that the Builder had doubled up on the costs of some items, quoted different values on Prime Cost items and had on occasion, inflated some rates in excess of Industry Standard Pricing.
Sergon Quantity Surveyors submitted an easy to read report of their findings to Insurers. The report demonstrated that the Builder’s initial quotation was neither accurate nor did it represent value for money. More importantly, the report demonstrated that reinstatement was able to be completed by the panel Builder at a much lower price than quoted, while still allowing the builder to make a reasonable profit from the construction job.
Armed with the Sergon Quantity Surveyors VQC report, Insurers challenged the builder on the price. The builder readily agreed to a significant reduction of their quoted costs and submitted a revised quotation. On this occasion, the Insured ultimately requested a cash settlement so Insurers proposed using the revised builder’s quotation as the basis for a cash settlement calculation. The Insured agreed that the quotation was reasonable for the Scope, and agreed to settlement as proposed.
The final claim settlement value represented a saving to Insurers at in excess of $100,000.