How do restoration companies charge?

Why there is rarely a flat price

Until a restorer has seen the job, nobody knows how many walls are wet, whether the water was clean, or what is behind the drywall. Two leaks that sound the same on the phone can differ tenfold in cost. So restoration is priced from a scope, not from a menu, and anyone quoting a firm total over the phone has not seen your house.

This guide explains how the price is put together. It gives no figures, because rates vary by company, region and year.

The estimating software

Most restoration companies and insurers in Canada build estimates in the same software, most commonly Xactimate. It holds a regional price list for thousands of tasks, updated regularly: removing a square foot of drywall, running a dehumidifier for a day, installing a linear foot of baseboard.

An estimate is a list of line items, each with a quantity and a unit price. The insurer’s adjuster reviews it against the same price list. That shared reference is why most disagreements are about scope, meaning what needs doing, and not about rates.

What you are charged for

Emergency response

• A call-out or emergency service charge
• Higher labour rates outside normal hours, at weekends and on holidays
• A minimum charge on small jobs

Labour

Technicians and supervisors by the hour for extraction, demolition, cleaning, moving contents and monitoring. Hourly rates differ by role.

Equipment, by the day

Drying equipment is billed per unit, per day:

• Air movers
• Dehumidifiers
• HEPA air scrubbers
• Specialty drying systems for floors and wall cavities

This is where bills grow. Ten machines for four days is forty equipment-days. A proper job uses the amount of equipment the space calls for, takes daily readings, and removes machines as areas dry. The drying log is your evidence that every day billed was needed.

Removal and disposal

By the square foot or linear foot for drywall, flooring, baseboard and insulation, plus bagging, haulage and disposal fees.

Cleaning and treatment

By area or by the hour: soot removal, disinfection after sewage, HEPA vacuuming, odour treatment, and any antimicrobial application.

Containment and protective equipment

Plastic enclosures, negative air machines, respirators and coveralls on mold, sewage and asbestos work.

Contents

Packing, inventory, transport, cleaning and storage, usually by the box, the item, the hour or the month.

Testing and specialists

Asbestos and mold sampling, engineering reports, electricians and plumbers.

Reconstruction

Materials and labour for the rebuild, line by line, plus permits where needed.

Overhead and profit

Where a contractor coordinates several trades, a percentage for overhead and profit is commonly added. Insurers have their own rules about when it applies.

Who pays what on an insured loss

• You pay the deductible, usually directly to the contractor.
• The insurer pays the agreed scope, either to the contractor with your written authorisation or to you.
• You pay for anything outside the covered scope: upgrades, unrelated repairs, or work the insurer declines.
• If you have a mortgage, the lender may be named on larger cheques.

Read the work authorisation. It normally makes you responsible for the bill if the insurer does not pay, which is standard, but you should know it.

Paying without insurance

For a loss that is not covered, or that you choose not to claim, ask for:

• A written scope and estimate before non-emergency work starts
• The daily rate for each type of equipment and the number of units planned
• Hourly rates and the after-hours premium
• A not-to-exceed figure for the emergency phase, where the contractor will give one
• Payment terms

You can reduce the scope sensibly, for example by doing your own rebuild, but do not cut the drying short. That is the part that prevents mold.

Do restoration companies offer payment plans?

Some do, particularly on uninsured work, and some accept credit cards or work with financing providers. It is not universal. Ask before the work begins, and get the terms in writing.

Do restoration companies overcharge?

Most do not, and the shared price lists keep rates in a narrow range. Where bills are inflated, it tends to happen in predictable ways:

• More equipment than the space needs
• Equipment left running after materials are dry
• Demolition beyond what the readings justify
• Line items for work not done
• Emergency rates applied to routine visits

How to protect yourself:

• Ask for the daily moisture readings and the equipment log
• Count the machines yourself and note the dates
• Ask why each wall or floor is being removed
• Request a copy of the estimate, and read it line by line
• Ask your adjuster to explain anything you do not understand
• Be wary of any contractor who offers to “cover” your deductible. The money has to come from somewhere.

Why two quotes can differ

• Different scopes: one dries in place, another removes
• Different judgements about the category of water
• Different amounts of equipment and days
• One includes the rebuild and one does not
• Different allowances for contents

Compare scopes first. The lower price with half the work is not cheaper.

Free inspections and estimates

Many companies inspect and estimate without charge, particularly on insured losses. Emergency attendance is different: once a crew comes out at night and starts work, there is a charge. Ask what is free before they are sent.

What makes any job cost more

• Delay before drying starts
• Contaminated water
• Finished basements and hardwood floors
• Hidden damage in walls and ceilings
• Asbestos in older materials
• Difficult access
• After-hours work

Questions to ask before work starts

1. Will I get a written scope and estimate?
2. What are your equipment daily rates, and how many units do you expect?
3. How will you decide when to remove equipment?
4. What is the after-hours rate?
5. Do you bill my insurer directly?
6. What am I responsible for beyond the deductible?
7. Can I see the daily readings?

More: water damage restoration. See also water damage restoration cost in Ontario.