VENTURE’S ESTIMATED SCOPE OF WORK

(Revised as of August 2019)

Welcome to www.vcgfl.com/estimates which is owned and operated by Venture Construction Group of Florida, Inc. The below terms and conditions are a material part of Venture’s Estimated Scope of Work and are specifically incorporated therein. It is important to note that Venture’s Estimated Scope of Work is an estimate and reflects Venture’s opinions and pricing concerning the underlying project. By receiving, reviewing and considering Venture’s Estimated Scope of Work you (“User”) agree to be bound by the terms contained herein.

As you review Venture’s Estimated Scope of Work you will likely notice that it consists of eight essential categories. These eight essential categories are briefly described below:

Labor. Subcontracted labor consists of third-party vendors that Venture hires to perform labor on its behalf (in addition to Venture’s own efforts). These crews have specific knowledge and experience concerning their trade. These costs are then passed on to the customer along with a reasonable markup.

Materials. Any material used for construction purposes. These materials are purchased from third-party suppliers and delivered to the project. These costs are then passed on to the customer along with a reasonable markup.

Equipment. Equipment refers to machines specially designed for executing construction tasks. Equipment is often rented from third-party vendors and delivered to the project. These costs are then passed on to the customer along with a reasonable markup.

General Conditions. General Conditions are costs that often include production managers, safety monitors, security monitors, field managers, account managers, field administrative staff, equipment operators, onsite portable offices (plus utilities, supplies and office equipment), temporary water, temporary restroom facilities, temporary power (poles, transformers, energy costs etc.), temporary fencing, temporary scaffolding, temporary on-site container storage and the like. General Conditions may appear as individual line items in Venture’s Estimated Scope of Work or as an estimated percentage of the related line item totals (excluding Overhead and Profit).

Project Specific Conditions. Project Specific Conditions are costs that are unique to the project and are required to successfully complete the project. However, these costs are difficult to quantify or attribute to a specific task. Examples of such categories of costs often include project specific construction contingency costs, project specific professional costs, project specific legal costs, and project specific costs such as equipment depreciation, travel or per diem expenses, building permit costs (and any other local governing authority fees), temporary barricades, security, fuel, lighting, photographs, signage, surveying, project staking, cleanup (daily and final), costs concerning compliance with environmental regulations, small tools, consumable items, and onsite electronic devices. Other factors that are contemplated in Project Specific Conditions often include, but are not limited to, the size of the project, type of work to be performed, inherent risks associated with insurance restoration work (e.g. advancing payment to subcontractors and suppliers while waiting for insurance proceeds), time spent communicating with others on the project (no privity of contract), complexity of the construction services and availability of labor and time of year. Project Specific Conditions may appear as individual line items in Venture’s Estimated Scope of Work or as an estimated percentage of the related line item totals (excluding Overhead and Profit).

Construction Contingency Costs: Contingency used in the context of an existing building or structure and is to serve as a financial place holder for probable conditions that will be encountered in the course of the work but cannot be quantified at the time of the estimate. These unforeseen conditions are generally hidden or obscured from visual observation and as a result cannot be quantified in labor costs, material costs and/or equipment costs to the specific requirements to complete the work. The contingency as a unit of measure is calculated on the experienced unforeseen conditions encountered on similar buildings or structures as well as the building or structure’s age, its pre-loss condition and risk factoring for changes in scope.

Overhead. Overhead consists of costs incurred by a general contractor, that cannot be attributed to individual projects, and include any and all expenses necessary for the general contractor to operate its business successfully. Such costs are those that are not readily chargeable to one particular project and largely consist of the general contractor’s cost of doing business and any fixed expenses that are paid by the general contractor. These general costs are shared proportionally across all projects. Examples of such general costs often include, but are not limited to, office rents or lease expense, office supplies, utilities, phones, office equipment, electronic devices, furniture, taxes, social security taxes, salaries and fringe benefits of office staff (e.g. executives, bookkeepers, administrative staff, etc.), warranties, travel expenses, legal fees (general business matters), marketing, advertising, contracted professionals (e.g. auditors and accountants), club or association dues, charitable donations, owned or leased vehicle expenses, fuel costs for business operation, insurance (e.g. auto, liability, workers compensation, umbrella, unemployment, health insurance etc.), software fees, license fees, and company sponsored education and training.

Profit. Profit is the money left after all other costs have been paid including, but not limited to, Labor, Materials, Equipment, General Conditions, Project Specific Conditions and Overhead. Ultimately, Profit is the benefit of the general contractor’s bargain with its customer and largely the reason why a general contractor will accept the significant risks associated with such construction projects. The Profit realized is then used to grow the organization and maintain its viability in the marketplace which, in turn, allows the general contractor to remain a reliable partner to its customers into the future. While there is no industry standard for Profit, most general contractors would agree that a profit margin between 10% and 20% would be a reasonable range to consider. Furthermore, most property insurance companies have considered this same range as reasonable.

Venture’s Estimated Scope of Work was likely created using the “Xactimate” software which is the preferred tool of most (if not all) property insurance companies. Venture’s use of the Xactimate software shall be deemed a mere accommodation. Xactimate has numerous benefits; however, it has significant deficiencies as well (e.g. unclear line items, missing line items, inapplicable line items, pricing deficiencies, poor job descriptions, etc.). In order to compensate for these deficiencies, Venture is often forced to move away from the default settings within the Xactimate software in favor of “real world” numbers and information. Venture uses its best efforts to highlight these changes; however, there are instances when such changes are not clear. In any event, any person reviewing Venture’s Estimated Scope of Work specifically agrees that the numbers and information contained in Venture’s Estimated Scope of Work are ultimately Venture’s and not Xactimate’s.

Venture’s Estimated Scope of Work further contains Venture’s pricing to replace or repair the listed items. Venture contends that its pricing is competitive in this geographic region and reasonable. It is important to note that Venture’s pricing is subject to change as new information becomes available.

Venture’s Estimated Scope of Work has been prepared in good faith and significant effort has been made to present a true and accurate description of the items that need to be repaired or replaced. In the event a mistake is discovered then the person finding the mistake agrees to notify Venture immediately in writing of such mistake. Venture will then, in turn, correct the mistake within a reasonable period of time. By receiving, reviewing and considering Venture’s Estimated Scope of Work, User agrees that any discovered mistakes shall be construed as a mistake made in good faith only and no other interpretation shall be set forth without first giving Venture a reasonable period of time to correct the mistake. User further waives and forever discharges Venture and its customer from any and all allegations concerning Florida Statute 817.234 or any other related common law claims. In the event such allegations are set forth by User against Venture and/or its customer then User shall pay Venture and its customer for any and all costs incurred in defense of such allegations including, but not limited to, attorney fees and expert witness fees (regardless of the outcome of the matter).

User agrees that Venture’s Estimated Scope of Work shall be deemed confidential and proprietary. Venture’s Estimated Scope of Work shall be used for its intended purpose only and for no other purpose. Furthermore, Venture will not provide any proprietary information concerning its secret formulas, processes, methods, marketing plans, salary structure, customers, vendors, subcontractors, suppliers, pricing, contracts or details of its computer systems. Venture will not produce any other information that may give its competitors an advantage in the marketplace. Venture will only produce such information pursuant to a fully executed “White Waiver Agreement” in which all concerned parties will agree to keep such information confidential and only used for a specific agreed upon purpose. Venture will not consent to any examinations under oath as Venture is not an “insured”, “agent” or “representative” of the underlying policyholder but rather a party to an arm’s-length transaction. However, subject to the aforementioned “White Waiver Agreement”, Venture welcomes any persons or entities seeking more information concerning Venture’s Estimated Scope of Work to schedule an appointment with Venture and visit its corporate offices for a detailed conversation and/or presentation.