24/7 rapid response building and contents restoration services

CATASTROPHE RESPONSE PLAN

Our mission is to provide a reliable Catastrophe Event Response that ensures a seamless partnership between us and our clients by ensuring that we work in a predetermined manner in the aftermath of an identified Catastrophe Event.

We seek to take on and professionally manage greater than Business as Usual work flows following an Event and provide a reliable outcome.

In this environment, we strive to be responsive, cost-efficient, transparent, timely, empathetic and to deliver a quality building product - every time.

The Catastrophe Manager

Following the activation of the Catastrophe Plan a Catastrophe Manager will be appointed. The Catastrophe Manager is responsible for managing and reporting on Building, Restoration and Operational Key Performance Indicators (KPIs) to ensure adequate and timely management of the resources of Advanced Buildings. Resources being Building – The Construction Manager, Restorations – The Restorations Manager and Operations – Operations Administrator.

The Catastrophe Manager will be relieved of business as usual (BAU) duties to allow them to focus exclusively on the Catastrophe Event. The details of the Catastrophe manager will be notified and made available to our Business Partners and clients on the day that the plan is invoked.

Building & Restorations Division (B&R)

During the event where the Catastrophe Response Plan is invoked, their responsibility will be to manage these works in a manner that is professional and understanding with all business partners and clients.

They will engage the relevant trades to complete works to the highest level of satisfaction. As well as work with management and operations on reporting and where applicable keep the insured updated every step of the way.

Operations Division

During the event where the Catastrophe Response Plan is invoked, Operations will be the first point of contact for business partners, clients and insured. They will provide the highest level of customer service whilst applying empathy and patience to each emergency job response they receive.

They will endeavour to open jobs in a timely manner and forward to the Constructions arm for allocation and completion. Work with management on reporting and where applicable keep the insured updated every step of the way.

The Advanced Buildings team are equipped to respond quickly and effectively to every Catastrophic Event

OUR MISSION

The Trigger to EnactmentA Catastrophe Event will trigger the enactment of the Advanced Buildings Catastrophe Response Plan in the following circumstances:

1. If any office or region receives more than 100 jobs over three consecutive days, or

2. If one of our clients anticipates that Advanced Buildings, in any office or region, will receive more than 100 jobs over three consecutive days, or

3. At the discretion of the Advanced Buildings Directors

The Catastrophe Response Plan (Cat Plan) must be invoked within 24 hours of the trigger criteria being met. The Advanced Buildings Directors are responsible for confirming the enactment of the Catastrophe Response Plan to Advanced Buildings personnel and to our Business Partner Clients.

Catastrophe Response PlanningCatastrophic Events can result in an extreme increase in workflow. It’s always our policy to avoid taking on workloads beyond our capacity that may detrimentally affect the timeliness or quality of service or product that we supply to our clients. Our professional team continuously review the available resources and our capacity to respond. We keep in regular contact with our clients to ensure that incoming workflows are managed and adequate capacity is maintained throughout the Event.

Should our services reach a level of demand beyond our capacity to deliver a high-quality response, we prioritise clients with whom we work regularly.

Once the Catastrophe Response Plan is enacted, the Directors will appoint a Catastrophe Manager. The Catastrophe Manager is responsible for the planning, execution and reporting of our Catastrophe Response Plan.

A dedicated Catastrophe Manager is selected from our pool of qualified staff, usually from a state other than the one in which the event has occurred. This helps ensure that the Catastrophe Manager is independent of the local state resources.

Where appropriate, the Catastrophe Manager will be relieved of their usual duties, allowing them to focus exclusively on the Catastrophic Event. We will communicate the contact details of the Catastrophe Manager to our clients on the day the plan is invoked.

The Catastrophe Manager will prepare a Service Response Proposal in two parts:

1. Initial Planning Phase – Actions to occur in the first 28 Days

2. Ongoing Phase – Event Response – Actions beyond the first 28 Days

A considered, staged response is central to the successful delivery of the plan. Advanced Buildings’ Directors review and approve every proposal. Our Catastrophe Response Plan will not be enacted until the Service Response Proposal is agreed upon with our clients. Our approach is to progressively ramp-up capacity, appropriate to the nature of the event and our client’s needs.

A CATASTROPHE EVENTAccording to the General Insurance Industry Code of Practice, a catastrophe is most commonly declared after an extreme weather event such as a severe cyclone, bushfire, flood or storm. A Catastrophe Event (The Event) results in a significant increase of new work within a region routinely serviced by Advanced Buildings. Such an event often results in one or more of our clients requesting urgent service.

The Catastrophe ManagerThe Catastrophe Manager is responsible for ensuring the success of the Advanced Buildings Catastrophic Event response. Where extra resources are needed, they have the authority to enlist staff from other regions, by arrangement with the Executive Team.

The Catastrophe Manager will report to the Company Directors and work with the State General Manager to manage and resource the Construction, Restoration and Operations teams. All BAU (business as usual) matters will be managed by the State General Manager, leaving the Catastrophe Manager free to focus on the event response.

During the Event Response phase, the Catastrophe Manager will temporarily relocate to the region in which the Event has occurred.

The Catastrophe Manager is responsible for organising a team to adequately manage the event response. They will delegate responsibility as appropriate and lead the team to deliver the planned reinstatement. The selected team and their roles will vary depending on the Event and the skills needed to do the job effectively.

Depending on the size and location of the Event it may be necessary, at the discretion of the Catastrophe Manager, to appoint a Regional Construction Manager and a Quality Audit Officer to oversee the Event work in the region in which is it located.

The Catastrophe Manager will work closely with the Advanced Buildings Key Account Managers (KAMs). The KAMs will be the key client contact and have responsibility to liaise with their respective accounts on a regular basis so each party understands our capacity and available resources at any given time. The KAMs will feed the client information back to the Catastrophe Manager so our overall Catastrophe Response Plan can be updated and amended with real time information.

Responsibilities And DutiesThe Catastrophe Manager’s core duties are to:

• Manage Key Account Managers to liaise and negotiate with clients as required

• Adequately resource the event team - working in conjunction with Human Resources

• Adequately resource necessary plant and equipment

• Resource and coordinate trade labour and suppliers

• Manage the portfolio of projects to achieve:

- cost-efficient outcomes,

- quality work,

- compliant construction, and

- timely reinstatement solutions

• Establish the local business infrastructure as appropriate and necessary to respond to the event

• Report weekly to the Company Directors and the Executive Management Team in respect to the event response

Directors

Catastrophe Manager State General Manager

Exec Managers/Branch Managers

Construction and Restorationteams

OperationsTeam

INITIAL PLANNING PHASE - FIRST 28 DAYSEvent Establishment The initial responsibilities of the Advanced Buildings Catastrophe Manager are:

Within 24 Hours1. To urgently identify and manage the company’s

available resources, including resources available interstate.

2. To formulate an initial view of the event, including the affected location (s) and, if possible, the likely clustering of claims. To formulate an initial view of the event, including the affected location (s) and, if possible, the likely clustering of claims.

3. To manage communications between Advanced Buildings Key Account Managers and our clients. Ensure they understand that we are preparing our Catastrophe Response Plan and will respond with a structured proposal within 5 days.

4. Key Account Managers should contact the client daily, or as agreed, to discuss and understand their requirements. This information should be fed back to the Catastrophe Event Manager as appropriate.

5. Establish a Job Registration Triage Process.

Job Triage ProcessThe Catastrophe Manager will tailor a Job Triage Process for every new event depending upon the relevant circumstances. This involved:

i. Job registration within 2 hours

ii. Identification and allocation of jobs to the relevant area

iii. Same-day telephone contact with the insured and notation of the event on file

iv. Jobs should be prioritised according to the following categories:

• Make Safe / Urgent

• Major loss

• Quotation/report required (Normal Priority)

v. Allocation of the job to a trade supervisor or estimator who is able to provide the required response and expertise, and notation on the work system.

The Job Triage Process will be scalable, with adequate support/administrative staff provided to ensure the process is completed on the day the job request is received. Where needed, Advanced Buildings will reallocate resources from our interstate business units.

Within 72 Hours- Identify the likely environmental and logistical difficulties of working in the affected area(s).

- Identify the likely exposure of our clients and their service requirements of Advanced Buildings.

- Draw-up a Service Response Proposal for discussion with our clients. This proposal should include:

a. The area(s) that Advanced Buildings can service.

b. The number of estimators available within each 7-day period from enactment for the first 28- day period. These numbers should be reviewed weekly and reported monthly thereafter.

c. The estimated daily and weekly Capacity for Make Safe Requests (RATE OF MAKE SAFE REQUEST) and the estimated Capacity for Make Safe jobs (TOTAL MAKE SAFE CAPACITY).

d. The estimated Capacity for Quote Requests per day/week (RATE OF MAKE SAFE REQUEST) and the estimated Capacity for Make Safe jobs (TOTAL QUOTE REQUEST CAPACITY).

e. The available Specialist/Major Loss capacity by area (MAJOR LOSS CAPACITY).

f. In the event that estimated requests are likely to exceed Advanced Buildings capacity, to provide recommendations on which clients can be serviced. During a Catastrophe Event, it is Advanced Buildings policy to prioritise service capacity to those clients that we work with during BAU conditions.

9. The Initial Service Response Proposal should be submitted to Advanced Buildings’ Directors for approval within 72 Hours after enactment. The Directors will provide direction on the Service Response Proposal with 24 Hours of receipt.

Within 7 Days10. After an Event occurs, the Advanced Buildings Catastrophe Manager and other relevant staff will attend the region to survey the extent of damage and assess logistical issues within 7 days. This first-hand inspection will help our understanding of the Event and assist in the formulation of our plan.

11. Advanced Buildings will submit our Initial Service Response Proposal to our clients within the first 28-day period following enactment. (1. INITIAL PHASE - EVENT RESPONSE). Our Initial Service Response Proposal will be subject to available resourcing in the affected region. This includes the availability of fresh water, food, accommodation, electricity and transport access.

Within 28 Days12. Advanced Buildings will submit our Ongoing Service Response Proposals specific to each of our Key Business Partners, relevant to ongoing Event operations (2. ONGOING PHASE - EVENT RESPONSE).

13. To enable us to achieve a more cost-effective and timely reinstatement process, we need insurers to help us with our cashflow by providing direction to Loss Adjusters regarding prompt payment recommendations. Our KAMs will provide clients with weekly debtor listings showing amounts outstanding so that insurers have a greater understanding of the impact on our cash flow.

ONGOING SERVICE RESPONSE PROPOSAL

These metrics affect our ability to appropriately resource projects and maintain a sustainable and reliable level of service.

The Proposal will allow for a ramping-up period depending on available resources.

The effective management of our capacity to respond throughout the event is paramount to the success of the response effort. As the Event progresses, the Proposal may require revision by the Catastrophe Manager in conjunction with the Company Directors and the Executive Team.

FinanceWithin 21 days from enactment, the Catastrophe Manager will work with the Finance Manager to prepare a Cash Flow Report. This determines the cash requirements to fund the event response. The Cash Flow Report must then be submitted to the Advanced Buildings Directors.

The Advanced Buildings Directors will then negotiate suitable payment terms with our clients. This ensures that adequate funding is available to service the Event.

Event CostsWe’ll also negotiate an appropriate regional Location Allowance and recoverable Event Costs to ensure that the project costing is commercially viable.

Market RatesMarket Rates typically change during the course of an Event. Initially, trade capacity is substantially inadequate to meet service demand. Trade pricing increases accordingly. The lack of capacity and increase in trade rates sought in the market then has the effect of attracting additional trade capacity into the region. As supply of trade capacity increases and the demand for trades settles from the initial high rates, trade pricing can reduce. This market adjustment needs to be actively managed by Advanced Buildings.

Advanced Buildings seeks to partner with trade contractors and to negotiate rates that represent longer-term, commercially sustainable pricing. These rates should account for the cost of trades relocating, the increased demand and the longer-term volume of work that is available.

Trade rate negotiation should be measured by agreeing on a BAU trade price and then applying a factor that accounts for the impact of the Event. The applied factor will be specific to the event, the location and the available individual trade supply capacities. The trade rate calculation for an event is:

Typically, the trade rate will be adjusted two or three times during the Event to reflect changes in market conditions.

This planning document includes details on the following:

CapacityCapacity is defined as: the estimated total number of claims likely to be received by the business partner clients for whom we are working.

The estimated number of claims that Advanced Buildings can attend is broken down to:

» The rate of job requests per week

» The maximum total number of claims that can be serviced

Event Trade Rates BAU Rate =Event price factor

(incl Location and supply side factors)

x

EVENT PERFORMANCE MANAGEMENT

These indicators include (but are not limited to):

Operations Number of unallocated jobs

Number of Make Safes received

Number of Make Safes completed and invoiced.

Number of quote requests received

Number of quotes submitted

Total aggregated value of quoted works

Number of jobs Approved/Awaiting Contract

Number of Active Jobs

Number and value of jobs Completed/Not Invoiced

Estimated number of Make Safe requests in the next 7 days

Estimated number of Quote Requests in the next 7 days

Number of estimators available for the next 7-day period

Number of supervisors available for the next 7-day period

Capacity Status – ability to continue to service work at estimated levels whilst meeting our required performance criteria

FinanceCashflow report

Aged Creditors report

Aged Debtors report

QualityA successful Event response depends on the delivery of high-quality building reinstatement works. The Catastrophe Manager has responsibility for the management of construction quality.

Depending on the size and nature of the project, the Catastrophe Manager may consider the appointment of a Quality Audit Office to assist in the control of Advanced Buildings quality processes. They will assist in the control of Advanced Buildings quality processes.

Quality control processes will include the measurement and documentation of:

1. Identification of code compliance issues.

2. The involvement of Certifiers and design consultants where necessary.

3. The preparation by the Trade Supervisor of a schedule of required certificates and warranties at the commencement of a project.

4. The preparation of ITP hold point schedules per job at the commencement of the project.

5. Sign-of by the site supervisor that all necessary prescribed forms and ITP inspections have been completed.

6. The recording of all required paperwork to the Advanced Buildings work management system (Filemaker).

7. Continuous audit of the quality process, including site inspections and paperwork compliance.

SummaryThe Catastrophe Manager will report regularly to the Directors on the following metrics. The reports will include a narrative summary on:

» Any Event issues

» High-level portfolio status

» Quality issues

» Financial position

To ensure the proper control of workflows, we allocate extra administrative resources for each Event. This allows us to better manage labour and equipment resources, allows for adequate capacity for the registration of jobs and for all involved parties to be contacted on the day of the request.

The Catastrophe Manager is responsible for the measurement and reporting of the Catastrophe Response Key Performance Indicators.

The Catastrophe Manager, in conjunction with the Key Account Manager, will prepare a weekly summary report. The report will include:

• Number of Make Safes received

• Number of Make Safes completed and invoiced

• Number of quote requests received

• Number of quotes submitted

• Number of jobs Approved/Awaiting Contract

• Number of Active Jobs

• Confirmation that Advanced Buildings has adequate capacity to continue to service estimated workloads and meet required KPIs into the foreseeable future

• Outstanding invoices due for payment

At times, the progress of a reinstatement project can be threatened by a shortage of labour and equipment or by a logistical challenge. The Catastrophe Manager will notify our clients promptly should it become evident that our capacity to service new workflows may be affected. This is the opportunity to discuss any necessary workflow rescheduling that may be required.

Our ongoing commitment

Advanced Buildings is committed to delivering a high level of customer satisfaction.

We will honour warranty and defects claims in keeping with our industry service agreements and statutory licence requirements.

We will progressively complete our Event response while maintaining the capacity to attend any call-back requests when needed.

CLIENT REPORTING

RESPOND RESTORE RESTART

ABN: NSW - 99 146 262 704; VIC - 51 613 047 242; QLD - 88 151 926 180; RESTORATIONS NSW - 73 615 067 108

We get lives back on track since 1998

Call us to find out how we can help you with your building

reinstatement, restoration or cleaning project.

1300 87 86 87

NEW SOUTH WALES

SYDNEY HEAD OFFICELevel 1, 117 Queen StreetNORTH STRATHFIELD NSW 2137

SYDNEY RESTORATION FACILITYUnit 7 / 167 Magowar RoadGIRRAWEEN NSW 2145

HUNTER REGIONUnit 5 / 8 Teamster CloseTUGGERAH BUSINESS PARK NSW 2259

QUEENSLAND

BRISBANE OFFICEUnit 10 / 1 Business DriveNARANGBA QLD 4509 After Hours, Emergency Works -1300 300 049

GOLD COAST OFFICEUnit 2 / 7 Indy CourtCARRARA QLD 4211

VICTORIA

MELBOURNE OFFICE57 Balfour AvenueSunshine North VIC 3020

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