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Started By
Message
Construction Estimators: Need a little help figuring Builders Risk
Posted on 12/30/16 at 9:40 am
Posted on 12/30/16 at 9:40 am
I'm trying to set up an estimate template for commercial construction projects, how do you estimate cost for builders risk insurance? Or do you just contact your insurance provider for every estimate?
I already have formula for sales tax, labor burden, general liability, and permit set up. My last piece of the puzzle is builders risk insurance.
Any advice or a point in the right direction would be greatly appreciated.
I already have formula for sales tax, labor burden, general liability, and permit set up. My last piece of the puzzle is builders risk insurance.
Any advice or a point in the right direction would be greatly appreciated.
12
Posted on 12/30/16 at 9:42 am to Emteein
Going to have to be more specific on the types of projects. It varies based on the building.
Posted on 12/30/16 at 9:44 am to Emteein
quote:
just contact your insurance provider for every estimate?
how the hell does your insurance guy know the replacement cost of something you are building?
Posted on 12/30/16 at 9:48 am to Emteein
quote:
I already have formula for sales tax, labor burden, general liability, and permit set up. My last piece of the puzzle is builders risk insurance.
Me thinks you have a few more pieces of the puzzle, Kimosabe.
Posted on 12/30/16 at 9:53 am to Emteein
Make friends with someone in the biz and he/she should be able to give you a round about figure for the rates on a few companies assuming most of the project tend to be similar in nature.
Posted on 12/30/16 at 10:32 am to Emteein
The cost always changes based on many variables...cost of contract, building type, location, materials, roof systems, etc...
For pricing, we usually exclude builder's risk because in my line of work the owner usually carries this insurance. We may have a deductible by back policy or are forced to carry it. Regardless, We get a quote.
If you really want to estimate this yourself, then our old rule of thumb use to be 16 cents per $100 of construction cost. So on a million dollar project you should carry $1,600 as an estimate.
Hope that helps.
For pricing, we usually exclude builder's risk because in my line of work the owner usually carries this insurance. We may have a deductible by back policy or are forced to carry it. Regardless, We get a quote.
If you really want to estimate this yourself, then our old rule of thumb use to be 16 cents per $100 of construction cost. So on a million dollar project you should carry $1,600 as an estimate.
Hope that helps.
Posted on 12/30/16 at 10:38 am to Emteein
Walk down the hall to your CFO and let him figure it out.
Posted on 12/30/16 at 10:42 am to Emteein
i just came up with a 31 cent rate for east baton rouge parish, non combustible commercial new construction.
construction cost x .0031= premium
you're welcome. could be lowered or raised with a higher deductible and other things.
subject to $375 minimum
construction cost x .0031= premium
you're welcome. could be lowered or raised with a higher deductible and other things.
subject to $375 minimum
This post was edited on 12/30/16 at 10:50 am
Posted on 12/30/16 at 12:04 pm to Emteein
Are you using Excel? I'd be interested in seeing your template if you are willing to share.
Posted on 12/30/16 at 1:01 pm to Emteein
Just have the owner provide it.
Posted on 12/30/16 at 1:04 pm to Emteein
quote:
My last piece of the puzzle is builders risk insurance.
Do you always work in the same geographic area?
Does the owner require flood coverage?
Your agent should be able to put together a reporting form if you will always have the same basic needs and the job values dont vary wildly.
for example $2,000,000 per occurrence and $4,000,000 aggregate.
Nobody can give you a rate without knowing location information and max values at risk.
Posted on 12/30/16 at 2:17 pm to Emteein
BR is typically a percentage of the overall cost of construction, depending on the type of construction. Your insurance carrier can give you these rates to set as a master formula in your cover sheet. My estimates have a separate tab for builders risk that automatically calculates the cost. It is up to the end user to enable this cell if the owner is not carrying this insurance and wants the builder to do so.
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