When Disaster Strikes – the Road to Recovery: Remediation and Reconstruction

The building has been evacuated and the flames have been extinguished. Now that the urgency of the fire has died down, it is replaced by the depressing picture of a burned-out, smoldering building. Broken glass and yellow police tape strung across the entrance accentuate the long journey ahead of your organization. Where is the road to recovery? How can you quickly and completely recover from a disaster?

Once the flames are out, you cannot assume that you will be allowed access to your facility immediately. There are at least two types of investigations that must take place first. Law enforcement officials will investigate the scene to determine the cause and origin of the fire. Then, insurance companies representing the owner or companies implicated in causing the fire will also investigate the scene. Often, this second investigation is more time-consuming and comprehensive than the law enforcement investigation.

One of the first calls should be to your insurance carrier. The company will assign an adjuster to your project. Your next call should be to a construction management firm experienced in disaster recovery. This company will manage the recovery process with you. Your insurance carrier will pay their professional fee. This will ensure that you are adequately compensated for the loss and that fire recovery issues do not put an excessive burden on the building’s administrative personnel.

The work necessary to return the building to a usable condition can be divided into two phases: Remediation and Reconstruction. The first phase occurs as soon as the owner is permitted back into the building-after the law enforcement investigation is complete, but before the insurance investigation is finished. The reconstruction phase is more time-consuming and will return the damaged portion of the building to a usable condition.

Phase 1: Remediation
The goals during this phase are to eliminate or control hazards; prevent further damage to the building; and make unimpaired areas of the building available for use.

It is critical to expedite this phase. The management team should be prepared to do whatever is necessary to reopen the building. Good communication is essential between the insurance adjuster (who will need to approve all expenditures), the construction manager and the owner. Overtime charges can and should be reimbursed by the insurance carrier.

Eliminate or Control the Hazards
One of the most important facets of remediation is eliminating and controlling the hazards that have been caused by the disaster. This will require licensed, insured contractors who can install temporary measures. Electricians will be needed to “safe off” all exposed wires and conduits, isolate the damaged circuits and restore power where possible. General construction contractors should remove partially burned and unsafe doors, roofs, canopies, ceilings, etc., which could collapse on future reconstruction or investigation crews. All of this work should begin immediately after the law enforcement investigation has ended. The insurance adjuster will be involved with the price negotiations, but the goal should be to make the area safe in the quickest possible manner.

Prevent Further Damage to the Building
The primary source of this possible damage is water. All of the affected roofs should be flood tested to determine if they are damaged. In a fire situation, the primary damage to a roof typically occurs when emergency workers cut holes to vent the building or drop tools on the roof. In addition to the roof, all windows, skylights and doors should be checked. These should be boarded up if necessary. The owner and contractors should assume that all remediation measures put in place will be needed for approximately four to six months. That means that skylights boarded up in July should be built to withstand a snowfall.

Make Unimpaired Areas Available For Use
Finally, it is necessary to return the building to a useable state. When considering the scope of remedial work, all of the destructive forces should be considered. For example, after a fire, the remediation scope should include fire, smoke and/or water damage. It is unacceptable to reoccupy a space that has a strong, persistent smoke odor or a soot residue on the surfaces. Remediation should include a thorough cleaning of spaces adjacent to the fire damaged area. This includes furniture, walls, floors, and ceilings. Also, a duct-cleaning contractor should be hired to clean all affected ductwork, which may extend into far distant locations in the building. It may be necessary to paint some of the charred surfaces with a smoke-sealing primer or install a negative air pressure system in the fire area to prevent smoke fumes from infiltrating back into the reoccupied areas. Ozonation machines have also been used to successfully remove the smoke odor from areas that are to be reoccupied.

Phase 2: Reconstruction
The purpose of this phase is to completely compensate the owner for the loss. This means that the owner should have a building that, at the very minimum, matches the original building or space that was lost. The two steps in the reconstruction phase are planning and implementation.

Step One: Planning
The purpose of the planning step is to establish a scope of work and have it approved by the responsible parties. When deciding the scope of work, remember all of the destructive forces. In the case of a fire, remember smoke and water, too. Often, after a fire, it is necessary to remove a great deal of the insulation in the building. Smoke and soot can move through pipe insulation and be found in an area of the building some distance from where the fire occurred. In one fire, the water from the firefighters damaged a transformer, the floor tile and a wood door and cabinet on the floor below where the fire occurred.

A licensed architect should prepare the scope, drawings and any specifications for the reconstruction work. The insurance adjuster, and ultimately the insurance carrier, will have to approve the scope of work. This should be done as a preliminary step before detailed construction documents are prepared. A professional structural engineer should provide a written opinion on the condition of any structural members that were affected by the fire. This opinion should be obtained for the protection of the owner, even if there does not appear to be major damage to the structural members. The insurance company should pay all professional fees.

In addition to replacing damaged items, the insurance coverage held by the owner may allow for “code upgrades.” For example, in one fire, a wooden entry landing was burned. The previous landing had four steps, but no handicap access. The owner’s coverage allowed the replacement structure to be constructed of concrete instead of wood (in compliance with modern fire codes) and to include a wheelchair ramp (in compliance with the Americans with Disabilities Act). It may be necessary for the completed plans and specifications to be reviewed by a governing agency. The decision-making process surrounding the establishment of a scope of work should take place quickly. Questions such as: “Should this piece of equipment be refurbished or replaced?” must be handled in a decisive manner. The more time that is allowed to elapse before the decision is made, the more the tendency will be to just clean or refurbish the equipment. This will result in the owner getting less than what is deserved from the insurance settlement.

Step Two: Implementation
The selected contractor should be required to sign a contract with the building owner, should provide performance and payment bonds and should provide appropriate insurance. It is prudent to specify working hours, completion deadlines and liquidated damages in the construction documents. These measures will help ensure that the building owner is protected and that the reconstruction is performed in a timely manner.

Since the contractors involved will be providing quick turnaround, they will need swift reimbursement. Often, the process for procuring money from the insurance company can be slow and bureaucratic. It may be advantageous for the insurance carrier to provide an “advance” to the owner that can be used to pay contractors. Frequent meetings between all parties will allow swift action on change orders, scheduling issues and payment approvals. The construction management and architectural firms that are retained for the project should be committed to dedicating sufficient numbers of their staff to the project. A critical path method (CPM) schedule should be maintained. Submittals should be required for all building components needing architect approval.

When the construction has been substantially completed, project closeout should begin. This includes completing punch list items and obtaining warranties and certifications from the contractors. Since the project was likely completed in a rapid manner, special attention should be given to making sure that all prime contractors execute an “affidavit of payment of debts and claims” and all subcontractors execute a “release of liens.” After all of this is complete, the building owner will be asked to sign a final “proof of loss” affidavit.

Conclusion
By following these suggestions, building owners can transform a difficult and bleak situation into a successful project. While building occupants will not blame the facilities department for an unforeseeable tragedy, they will look to the facilities department for answers if the recovery is not swift, not of high quality and does not represent a suitable replacement of what was lost. The professional assistance described in this article is vital to a successful project. A successful recovery allows the facilities manager to enjoy a reputation as a quick-acting, efficient administrator.

Excerpted with permission of Facilities Management Journal, a publication of International Facilities Managers Association (IFMA). The complete article was published in the March/April issue in 2000.