No responsible excavator sets out to damage buried utility lines. But why do some companies damage more lines than others? Why is their cost of doing business higher? UBS employees have years of experience assisting contractors in damage avoidance programs. We would be happy to review your damage reduction program (or set one up for you).
Damage Investigations & Documentation
Often, a contractor is absolutely not responsible for paying a utility damage claim. However, six months or a year down the road, the information used to develop their defense is lost or otherwise unobtainable and they end up paying the utility's claim or facing a law suit. Your business is providing service to your customers, not being a claims adjuster. We can help your company avoid utility damage up front and when a line is accidentally hit, we can assist you in establishing a fair settlement or help you document your defense.
Developing Claims Procedures For Excavators
Goal
This process is developed to establish claims handling procedures for contractors that excavate in the public rights of way. When implemented, these procedures will enable the contractor to properly defend themselves against unjustified utility damage claims and to recover Company losses as a result of "down time" claims.
History
Every company has a primary business and several secondary businesses. A construction company may have road building as their primary business but they know that safety, accounting, public relations, purchasing and marketing greatly effect their bottom line. One of the last secondary businesses to be accepted in the modern construction industry is risk management. Yet, thousands of dollars are lost by paying unwarranted claims by others and the contractor's inability to pursue "down time" claims when utilities have improperly marked or failed to mark buried cables located in the construction path.
In today's environment, Contractors are developing information that enables them to pay or deny utility damage claims when circumstances are clear and the parties agree to the factual situation. Problems arise, however, when there is a factual dispute and the matter is not expeditiously concluded. Often, cases drag on or litigation is pursued and the Contractor can no longer (1) provide witness information or (2) produce copies of pertinent memorandums, paper files or other important information. Compounding the problem is that frequently, additional information is required and due to the passage of time, the facts can no longer be gathered. What started as a good defense has withered to a point where the claim must now be paid or greatly compromised.
The Contractor/UBS Claims Team
Documentation is the backbone of claims processing. Organizations that operate successful plant damage claims operations stress fact finding and documentation on a continual basis. Physical evidence, witness names and other important data can not be produced 6 months to a year after the critical event. Someone must gather and preserve this information immediately if a prosecution or defense is to be successful.
Utility Business Services, Inc. (UBS) will act as the Claims Department of the client contracting company. They will train the "on site" Client personnel regarding the information gathering process and will oversee the process from beginning to end. Information gaps will be closed and a complete file will be maintained. The Client will notify UBS at the outset of a claims related matter.
Project Details
1. UBS will visit the Client offices and evaluate existing claims procedures.
2. A study of existing procedures will be made and recommended solutions will be developed for Client approval.
3. The Client management team and UBS will meet and select the most cost-effective plan to upgrade the Client's capability to manage the claims process.
4. UBS will train the Client's "on site" personnel with emphasis on:
A. Company Claims Procedures.
B. Understanding the importance of their role in the claims process.
C. Developing and maintaining evidence.
D. Witness identification.
E. Principals of documentation.
F. Understanding the One-Call Law.
G. Anatomy of a Utility Damage Claim.
H. Anatomy of a Contractor Down-Time Claim.
5. As events occur, UBS and the Client will handle claims through the procedures developed and as agreed to in #3 (above).
Cost Of Program
1. Options. Client to be invoiced on:
A. an hourly basis at a rate of $85.00 per hour.
B. a "per incident" basis at a rate to be negotiated with the Client.
C. a monthly basis at a rate to be negotiated with the Client.
Note: Contractor Down-Time Claims may be handled on a contingency basis.
Sub-contractor Risk Management Coordination (optional)
1. Verification of appropriate Sub-contractor insurance coverage and maintenance of current certificates of insurance.
2. Verification that Master Contractor is carried as an additional insured.
3. Hand-offs and follow-up to insure proper claims handling by Sub-contractors and/or their insurance companies.
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