Insurance clients retain HETI, as an objective "observer," to perform a wide variety of third-party reviews - focusing on the technical quality and appropriateness of work performed by other contractors or consultants…the costs of services provided relative to the project and reasonable and customary industry norms…or the likelihood of success of a proposed environmental solution.
Representative Projects *
Invoice Review, Petroleum Release (Rhode Island) - HETI was retained by an environmental insurance carrier to perform a technical review of invoices, consultants' reports and other documentation, regarding actions taken in response to a gasoline release at a Rhode Island site. HETI's objective was to determine to what extent the remediation costs incurred by the insured - totaling approximately $2.2 million - were justified. HETI's review determined that approximately half of the expenses - such as 18 months of generator rental and other extensive equipment rental charges; a manual versus automated pump-and-treat ground water contamination recovery system; and costs associated with the design, installation and removal of a treatment system which was not the final remediation remedy - were unreasonable or unwarranted. Based on HETI’s work, the insurer offered substantially less settlement money than requested by the insured and subrogated against a subcontractor who was responsible for the release.
Technical Audit/Invoice Review, Dry Cleaner Remediation (Indiana) – A group of four insurance carriers contracted HETI to review proposals, technical approaches, and project invoices by a consultant conducting remedial activities at a former dry cleaner site in Indianapolis. Based on this review and experience with similar sites, HETI determined that initial invoices for field work and report preparation were unreasonably high and did not include backup necessary to verify subcontractor charges. Through HETI’s efforts during the course of the project, the consultant has reduced previous and current charges to reasonable and customary levels for the work performed.
Technical Audit, Remediation Project (New Hampshire) - On behalf of a major insurer, HETI reviewed the work of a consultant who billed $75,000 for remedial work at a property abutting a lake used as a drinking water supply. The consultant had proposed another $50,000 of investigative activity, prompting the company to seek a third-party review. HETI reviewed the site file and performed a limited investigation that showed that other sources were likely responsible for the original release, and that no further work was necessary. HETI then obtained written agreement with this opinion in the form of a formal site closure letter from the State.
Technical Audit/Invoice Review, Insurance Coverage (Vermont) - HETI was hired by an insurance company to review work performed by an insured's consultant. HETI contended that the costs were not customary and reasonable. To resolve the issue, HETI obtained quotes from three qualified, local contractors to implement the scope proposed by the insured's consultant. The low bid was less than 50% of the insured's consultant's bid, and the project was awarded to the new consultant.
* This is a brief description of selected Technical Audit/Invoice Review assignments completed by HETI. For a more complete discussion of our capabilities, please contact us for a copy of our Statement of Qualifications.