Supplements on a Commercial Insurance Job?

We do a lot of residential insurance jobs where we are able to file supplements for things like access issues, ice and water shield, etc. They typically pay Xactimate rates.

We are working on a commercial job now where it appears that the price is being set firm as a “per square” price that includes everything and they will not be accepting any supplements. Insurance has based their estimate off the low bidder. Works out to be $275/SQ everything included.

My question is, is this typical on commercial jobs like townhome communities? The insurance company is not a widely known company like State Farm or Allstate.

Thanks in advance for your input!

Ask them for a line Item breakdown, They hate that.
The main thing here is that the building owner does NOT have to take the lowest bidders price. Nowhere in the insurance policy does it state that. The Homeowner or Building owner has a choice of who the contractor is NOT the insurance company. Don’t let them pull that crap. Fax them your Xactimate price and a copy of a signed proposal then do battle.

Have exparianced some insurance providers who play hardball and don’t want to pay the big insurance money. They say things like, “Well we can get it done for a lot cheaper”.

In most cases if you can see were they are short on items you can hammer down on these items to bump there price up.

Some will adjust some will not budge one penny, signed contract or not.

Also, I would consider a supplement money owed after the work is done for things unseen prior to start. Getting to an agreed upon price prior to start would be considered negotiation. IMO

One example of a supplement would be a charge for installing decking over spaced decking.

My buddy is on a fire job. There are quite a few supplements as he couldn’t bid everything before things got ripped apart.