Common Pricing Structures in Restoration Contracting and How The Right One Can Increase Profit For Your Business.

Restoration work is a critical service that helps bring homes and businesses affected by water, fire, and other disasters to their pre-loss condition. However, there are different ways to determine the cost of restoration work depending on the nature of the project, the client’s needs, and the contractor’s own goals and priorities. 

Careful consideration of these factors and selecting the most appropriate pricing structure can help restoration contractors improve their overhead and profit to build a successful and sustainable business. Here’s a brief overview of the different pricing structures used in restoration work.

Xactimate Pricing

Xactimate pricing is a software system used by insurance companies and contractors to estimate the cost of repairing or replacing property that has been damaged. It operates by using a database of pricing information to create an estimate based on the specific details of the damage.

Xactimate takes into account various factors such as the type and extent of damage, the materials required for repair or replacement, and the labor involved in completing the job. It then provides an estimated cost for the work based on average rates for labor and materials. 

However, there is often a difference between Xactimate pricing and actual cost for restoration contractors because Xactimate uses averages and those averages are heavily influenced by the amount of pricing data insurance companies regularly upload. That’s why it’s important to review the price of line items and adjust accordingly, or upload custom pricing every time you create an invoice. 

“Knowing how you can affect the pricing in your area by uploading your data correctly is one of the first steps you have to take to ensure you’re getting paid a fair price for the work you perform,” said Josh Ehmke, Co-founder and Owner of One Claim Solution.

Since Xactimate is managed and owned by the Insurance Services Office, contractors consistently uploading their data is the only way to influence the pricing to evolve. However, this practice has become a hot topic, especially for contractors who don’t bill Xactimate rates and therefore don’t use the software. While it’s true that contractors who don’t use Xactimate won’t be reflected in the software’s algorithm, it’s still crucial that contractors who are using Xactimate upload their custom pricing whenever creating an invoice. 

“The only way to influence pricing to evolve is to get enough custom pricing in there from a volume perspective,” said Jeremy Traasdahl, Co-founder of One Claim Solution. “Although one contractor may not have much impact, if every contractor uploaded custom pricing every time, it would make a difference.” 

Custom Xactimate Pricing

Speaking of custom pricing, some situations may call for a more customized pricing structure than what is straight out of Xactimate. Custom Xactimate pricing refers to the process of creating a personalized estimate using the Xactimate software as a basis. It involves modifying the standard Xactimate pricing data to reflect the specific costs and pricing for a particular region or situation.

Custom Xactimate pricing is typically used when the standard Xactimate pricing does not accurately reflect the local market conditions or the specific requirements of a job. For instance, suppose a homeowner has a custom-built kitchen with high-end appliances, cabinets, and countertops. In that case, a restoration contractor may need to use custom Xactimate pricing to accurately estimate the cost of repairing or replacing these features. The custom pricing would take into account the specific brand, model, and style of the appliances, cabinets, and countertops to ensure the estimate reflects the actual cost of restoring the kitchen to its pre-loss condition.

Additional Pricing Methods

Contractors may use different methods to price their services, even without the use of Xactimate or other software pricing tools. Here are some common pricing methods that contractors might use:

  1. Time and Materials: This pricing method involves charging the client based on the time and materials required to complete the job. The contractor may provide an hourly rate for labor, and then add the cost of materials used in the project. This method allows for flexibility as the actual cost can vary depending on the specific job.
  2. Cost-Plus: In this pricing method, the contractor adds a markup percentage to the cost of the project. This markup percentage is often negotiable between the contractor and client and covers the contractor’s overhead expenses and profit margin.
  3. Fixed Price: The contractor provides a fixed price for the entire project, regardless of how much time or materials are required. This pricing method offers a clear and predictable cost for the client, but may require more detailed planning and cost estimation from the contractor.
  4. Value-Based Pricing: This method involves pricing the services based on the perceived value to the client, rather than the actual cost. For example, if the contractor is providing a service that saves the client a significant amount of money or time, they may price the service higher based on the perceived value to the client.

Regardless of the pricing method used, it’s important for the contractor to ensure their pricing is fair and reasonable based on the market rates and the specifics of the job. Clear communication with the client about pricing and any potential additional costs or fees is also essential for building trust and avoiding misunderstandings.

Increase Overhead & Profit For Your Restoration Business

Choosing the right pricing strategy for your restoration business can have a significant impact on the operational costs and revenue generation of your restoration company in numerous ways including:

  1. Increased Revenue: The right pricing structure will account for the actual cost of labor and materials, and will also have a comprehensive scope of commonly missed line items – like thermal imaging and supervisor hours. Using a pricing structure that accounts for these factors increases revenue and profitability because it allows the restoration contractor to charge the right amount for their services based on the actual cost of providing them and the profit the contractor wants on a job.
  2. Cost Reduction: By bundling services together at a discounted rate, customers may purchase additional services they may not have considered otherwise.
  3. More Accurate Costing: By evaluating and implementing the right pricing structure, a restoration contractor can gain a better understanding of the actual cost of providing their services. This can help them make more informed decisions regarding pricing and service offerings, which can ultimately lead to increased profits.
  4. Improved Efficiency: By implementing pricing structures that incentivize restoration teams to perform at their highest level, such as performance-based pricing, a restoration contractor can improve efficiency and reduce waste. This can ultimately lead to increased profitability by reducing overhead costs.

At One Claim Solution, we believe that contractors deserve fair compensation for their work, which is why we focus on helping them achieve the best possible return on their invoices. That’s why we start by looking at a restoration contractor’s invoices and pricing structure and provide coaching on custom pricing and comprehensive scope. If an insurance adjuster pushes back on the invoice, we have the legal expertise to cite case law that supports the pricing structure and commonly disputed line items. We pride ourselves on successfully advocating for restoration contractors on these fronts so they’re paid what they’re owed.

If you want to learn more about how to get paid faster and more efficiently, subscribe to our newsletter for exclusive insights and tips.

Connor Trahan

Account Executive

Hi there! I’m Connor, the Account Executive for One Claim. My goal is to guide our contractors through the sales process, ensuring you’re equipped with all the information you need to make your decision and hit the ground running once aboard. We view ourselves as an extension of your business and I strive to make the process an enlightening and consultative one.
My career has primarily been focused in software sales over a few different industries but the last few years were spent helping general contractors solve similar problems to what we’re doing here at OCS! Outside of work, I love spending time with my family, cooking and boating during the summer months.

Nicole Liesenfelt

Director, Human Resources

Hello! I’m Nicole, and I’m here to champion for our employees, recruit for new talent, and impact culture at One Claim Solution. I find satisfaction in supporting a memorable employee experience and bring innovation, problem solving, and strategic view to the process. Nothing is more important than our people, and a healthy culture is my top priority! I have had the pleasure of building my career in various sectors, specializing in small to medium size firms focused on high-growth. My experience is centered around driving and implementing change, leading high-performing teams, and driving process improvements. I am excited to make an impact at One Claim. Outside of work, my family and I enjoy getting outdoors as much as possible to explore beautiful Colorado!

Elizabeth McGlone

Demand Generation Manager

Great to meet you! I’m Elizabeth, and I’m the one behind all the emails and advertisements you’ve been seeing. As the Demand Generation Manager at One Claim Solution, my mission is to connect with contractors like you who need our services. I’m passionate about having an impact on others and I bring a wealth of experience in demand generation and marketing strategy to create moments of delight, curiosity, and education for you.

Prior to One Claim Solution, I had the privilege of building marketing departments from the ground up at companies in a variety of industries, including IT consulting, first protection, and healthcare. Personally, I love being outdoors, playing Dungeons and Dragons and board games, singing, and traveling.

Alisha Yartzoff

Director of Contractor Success

Welcome! I’m Alisha, and I’m here to champion your success as the Director of Contractor Success at One Claim. With a passion for helping contractors thrive, I bring a wealth of experience in onboarding, customer service, and account management to ensure your journey with us is nothing short of exceptional.

Prior to joining One Claim, I had the privilege of scaling SMB and Enterprise Customer Success teams at fast-growing SaaS startups. With over six years of experience at companies like Mavenlink, Teamwork, and ServiceTitan, I honed my expertise in building high-performing teams and fostering proactive, consultative relationships. This background has equipped me with a deep understanding of the challenges faced by businesses like yours, and I’m dedicated to helping you overcome them.

Eric Terry


Hi there, my name is Eric! I am the Chief Technology Officer here at OCS, spearheading our technical strategy. I have a background in computer science, graduating cum laude from BYU-Idaho with a Bachelor’s degree in Computer Information Technology.

Before coming to One Claim, I served as the Director of Engineering at Slingshot Technology, Inc., a company later acquired by WorkWave in 2021. My professional journey has spanned both emerging startups and established corporations, with a steadfast focus on cultivating high-trust, low bureaucracy teams and innovating technology using agile methodologies.

In my free time, you can find me flying drones, enjoying the outdoors, and spending time with my family.

Cam Smith


Hello, my name is Cam, I’m the COO of One Claim Solution! I come from a management consulting background (Bain & Company) and hold an MBA from the University of Michigan. I have worked at a wide variety of organizations, from Fortune 500 to small-cap, in an equally wide variety of industries. I have over 15 years of experience in operations and strategic growth, and I have spent much of my career focused on developing high-performing tech-enabled service organizations through early stage and high growth phases.

Outside of work, my wife Brittny and I have four kids, ages 13 to 6. As residents of Mesa, Arizona, we love to ski and explore the national parks of the southwest!

Dan Doud


Hello, my name is Dan, and I am the CEO of One Claim Solution. I am super excited by everything we are doing at OCS to be the market leading insurance billing specialist that advocates on behalf of our restoration contractors. 

My professional experiences are predominantly corporate in nature. My career started at General Electric in finance and accounting. Immediately prior to joining OCS, I spent time as an investor at Bondcliff Partners and management consultant with Bain & Company. I also hold an MBA from the Kellogg School of Management at Northwestern University and got my BS in finance and accounting from Northeastern University.

Outside of the office, I enjoy spending time with my wife, two young children, and our family dog, Whiskey. We live in Charleston, SC and take advantage of the beautiful weather by spending as much time as possible outside at the beach or adventuring around town

Josh Ehmke

Co-Founder and General Counsel

Hi, I’m Josh! In 2016, I co-founded One Claim Solution with my partner Jeremy Traasdahl, and I serve as General Counsel of One Claim Solution. Working in the restoration industry, Jeremy and I saw contractors struggling to get paid quickly and fairly and we knew there was a need for change. We founded One Claim Solution to be this change and it’s been my privilege to see our company grow and to advocate for our clients as general counsel.

Outside of my passion for helping the restoration industry, I enjoy spending time outdoors, fly-fishing, hunting, skiing, and coaching my kids’ baseball teams. I’ve been married to my amazing wife for 20 years and we have a beautiful family of 5 children.

Jeremy Traasdahl


Hey, I’m Jeremy! In 2016, I co-founded One Claim Solution with my partner Josh Ehmke. Working in the restoration industry, Josh and I saw contractors struggling to get paid quickly and fairly and we knew there was a need for change. We founded One Claim Solution to be this change and it’s been my privilege to lead our amazing team.

Prior to One Claim Solution, I started my career as an inside sales rep for Avnet, then moved to Pepsico as a district sales manager. Outside of work, I love spending time with my wife and four children, two boys and two girls!