29 November 2013
[Name]
e-mail: [policyholder]
[Address]
cc: [QS]
Dear [Policyholders]
COMMON TEMPLATE - REPAIR AND REBUILD TRADE SUMMARY
I refer to our recent telephone discussion/meeting/email exchange.
You advise that you have already instructed, or will shortly instruct, a quantity surveyor to
estimate the reinstatement cost for your house and other insured property. To ensure an
accurate comparison can be made you should encourage your quantity surveyor to use the
attached template which has been developed by Arrow International in conjunction with a
group of independent quantity surveyors to allow a common approach to presentation and
calculation of estimates.
The key point to highlight is that the wording, and numbering, is adopted directly from NZS
4202: 1995, Standard Method of Measurement of Building Works. The Standard provides
an industry recognised set of definitions and measurements and the listed items under
Headings and Definitions is taken from, with some slight amendment to account for modern
building methods, the contents page of the NZS 4202. A trade summary approach was
preferred by the group of quantity surveyors gathered, as being more accurate than an
elemental estimate. There is, however, some flexibility according to the circumstances of
the subject house, whether repair or rebuild, over the degree of detail that needs to be
included in the build-up of each item.
The template has been endorsed by the High Court for application in cases listed under the
Earthquake List and has been circulated through the New Zealand Law Society and to
quantity surveyors practicing in Christchurch.
We do encourage its adoption for the purposes of your disputed claim to avoid unnecessary
and complex debate over the components of each element for costing. Arrow International
will prepare its cost estimation, using the same template, which can be exchanged once your
estimate is available.
It is important to point out that information that will be exchanged between Arrow
International and your quantity surveyor, and involving you and Southern Response, is
personal to you and your property. It should not be used for any other purposes.
Specifically, if a particular rate or percentage allowance is adopted on behalf of Southern
Response for your house, that figure or method of measurement can not be used as a
precedent or reference for other claims with other homeowners involving different houses. It
is important that your information is treated confidentially.
We look forward to hearing from you once your cost estimation is available so that we can
move to further discussions.
CRJ-368209-139-34-V1
2
If you have any questions about the template or wish to further discuss the negotiation
process from this point, please telephone [insert: name contact detail].
Thank you.
Yours sincerely
Southern Response Earthquake Services Limited
CRJ-368209-139-34-V1