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ROI of a BEC
Disaster Planning
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August 2010 Newsletter
 
Greetings!
The following is the August edition of the Sullivan Engineering newsletter. This newsletter is being provided as a courtesy based on our professional relationship.

As always, your feedback and suggestions regarding this newsletter or requests for future topics are appreciated. Please feel free to email us at newsletter@sullivanengineeringllc.com

**NEW FEATURE: In an attempt to maintain our goal of providing a helpful resource for industry professionals (not just a marketing tool) we will occasionally have guest authors from individuals in parallel industries that can provide information that we feel may be useful to our readers. Please note that we will not provide your contact information to these guest authors; however feel free to contact them directly if you have any questions or concerns. This month's guest author is Denise Dotoli of TLC Restoration a leading disaster cleanup, remediation and restoration firm.
Quote of the Month

"The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it."    - Michaelangelo

ROI of a BEC (Why hire a building envelope consultant?)

In efforts to "reduce costs"; more and more building owners seem to be asking "Why hire a building envelope consultant?", they are viewing this service as an "added expense". In an effort to answer that question I have examined this topic thoroughly and will attempt to explain the ROI of using a Building Envelope Consultant (BEC).
Cost of BEC vs. Construction
Building envelope consultants are specially trained independent professional's hired by the Owner (typically), to act as an expert adviser relative to all aspects of the building envelope. Qualified  consultants combine vast experience with active membership in industry organizations and participation in continuing education seminars to maintain a level of expertise not feasible to those not solely focused on this area of practice on a daily basis. As a result they are up to date on the pros and cons of new materials and technologies that enter the market as well as those that are phased out. Since consultants are independent from manufacturers and contractors they are able to provide unbiased advice on material and repair options. 

By performing a building envelope survey and discussing with the Owner the needs and long term plans for the building the BEC will assist in planning capital expenditures, forecasting and prioritizing future maintenance and identifying potentially unsafe conditions. During the pre-design phase; the BEC will provide the Owner with several options and make recommendations based on the needs assessment mentioned above. Cost of BEC vs. Construction

During the bidding process a level playing field is established by having specifications and drawings developed in advance and reducing ambiguities in the bid process. A list of qualified, recommended contractors can also be provided by the BEC based on prior similar projects. Additionally the BEC takes on the burden of ensuring that the design will be in conformance with local building codes, manufacturer's requirements, appropriate insurance carrier guidelines and best industry practices.

During the construction phase of the contract, having a BEC on board for construction administration helps to ensure that the work performed is done so as required by the contract documents. After all the finished product is only as good as the workmanship of the installer. Unlike interior construction; observation of ongoing building envelope restoration by the Owners is often not practical, nor recommended, and in many cases not allowed due to safety concerns. As a result, it is crucial that a building envelope consultant act as the eyes and ears for the Owner.

After construction is complete the BEC will ensure that all appropriate warranties are executed and will provide a long term maintenance plan for the building envelope; this helps ensure that the Owner gets the most bang for their buck out of the finished product.

Through proper planning, design and construction administration, the BEC can often double the expected life of a restoration or reroof effort. Therefore as shown in the cost and value charts the value provided by a qualified Building Envelope Consultant can dwarf the initial "added expense"  and provide a substantial Return on Investment.
 
Disaster Contingency Planning ...Is this really something I need to think about?
 
How many times have you heard the story that the fire was around the corner, or the flood was the next town over?
 
Does your current disaster or contingency plan include "its not going to happen to me"? We often think that it's NOT going to happen to us; however, in today's world we all should be prepared in our personal and business life for any type of disaster.
 
The plan to recover from a disaster doesn't have to be as big as the new health care reform bill but should address the coordination of corporate and municipal emergency resources.  For exampleTLC Restoration...whom do you call when???  Some insurance carriers will require that a "Disaster Planning and Contingency Plan" be in place.  If you're insurance carrier offers a plan tool at no cost.....take advantage of it.  Do you know that insurance carriers may offer discounts on your annual premium if you have a disaster and contingency plan in place?
 
Whenever you have any type of peril that causes your business or your personal life to come to a screeching halt; ice, snow, wind, rain, fire and flood to name a few, its imperative that everyone in your organization or household know how the plan works inside and out!
 
For example, TLC Restoration Inc. had the privilege to work with a client during a recent loss. Luckily this business owner prepared one aspect of his disaster and contingency plan without even realizing it. Over the years, his family business with 30+ employees grew by leaps and bounds. He, his wife, and two sons subsequently purchased buildings on the block of the current business, as they became available, to keep up with the demand for his superior work. 
 
In July of 2010, he experienced a fire in the main building where the office and framework were being performed.  Business came to a STOP, turning new customers away. He knew that he had space available in his other buildings but was concerned that his insurance carrier was not going to pay to restart his business at the other sites.
 
As a team, in a conference room, the Insurance Agent, Business Owners, TLC Project Manager, and myself accomplished the first phase of the contingency plan; determining the critical needs to get their business back in operation. This included immediately confirming coverage of the business owner's insurance policy and communicating to the carrier the intent of the next phases of the business contingency plan. Next we prioritized the remaining phases: recreating office space and a greeting area for customers (including electrical, HVAC and plumbing upgrades), setting up designated areas for the necessary equipment at the new sites, obtaining approval for a temporary certificate of occupancy from the town, cleaning salvageable tools and equipment and relocating them to the new site.
 
The intent was to have the business back up and running in seven days, due to this aggressive schedule everyone's roles were clearly spelled out. The business was fully operational and at full capacity at the new sites in just three days
 
Unfortunately, not every business owner has a plan in place, two out of three businesses never return to business after an event like this. Don't let that happen to you. TLC Restoration Inc. works with all types of businesses, property owners and managers to perform a risk assessment and create a disaster contingency plan. We are on call 24/7 to handle the disasters that get in their way. Remember having a plan in place is a major component to continued success.
 
 
About the author of this article. 
Denise Dotoli
Marketing/Risk Management
TLC Restoration, Inc & Aquadry North Systems
www.tlcrestoration.com
denised@tlcrestoration.com
973-216-2691 Cost of BEC vs. Construction

Denise holds a License in Property Casualty Life and Health, in the state of NJ.  Denise has worked in the Corporate and Not for Profit arenas in Risk Management, for over 20 years. She combines her experience in insurance with her skills in disaster response to provide a full service to her clients and when necessary working with insured's and the carriers to help enhance the speed and process of a claim.



 
If you have any questions regarding this newsletter or any other topics that we have discussed please feel free to contact us at 973-706-8584 or via email at bsullivan@sullivanengineeringllc.com
 
Sincerely,
Brian Sullivan
Principal
SULLIVAN ENGINEERING, LLC
600 Valley Road, Suite 207
Wayne, NJ 07470
P: 973-706-8584
F:  973-860-0712
M: 973-997-5654
bsullivan@sullivanengineeringllc.com
www.sullivanengineeringllc.com