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Reducing Losses with Equipment Cleaning & Restoration
A learning module for Claims Examiners, Adjusters, Insurance Professionals and Risk Managers
AFTER ELECTRICAL FIRE
AFTER RESTORATION
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Introduction
This learning module was designed to be an introduction and technical training to understand commercial
and industrial equipment loss caused by contamination and corrosion. It also covers equipment damage
assessment, cleaning and restoration. It is intended as a support tool for professionals in the property
insurance and property restoration industries to reduce losses and business interruption.
DISCLAIMER
This learning module was prepared as an account of work sponsored by Newtron Group and includes
content sourced from the DOE Handbook Fire Protection Volume II that was created for the U.S.
Department of Energy, D.C. 20585. Neither Newtron Group nor the United States Government nor any
agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal
liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus,
product, or process disclosed, or represents that its use would not infringe privately owned rights.
Reference herein to any specific commercial product, process, or service by trade name, trademark,
manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or
favoring by the United States Government or any agency thereof. The views and opinions of authors
expressed herein do not necessarily state or reflect those of Newtron Group or the United States
Government or any agency thereof.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
LEARNING MODULE TABLE OF CONTENTS
Part 1
Equipment & Electronics Contamination, Corrosion, and Restoration
Explained in Plain Language
Smoke Contamination
Water Damage & Moisture Concerns
The Decontamination & Restoration Process
Part 2
Before and After with Brief Introduction
Part 3
The Benefits of Equipment Restoration: Loss Reduction & Control
Hard Cost Statistics
Business Interruption Statistics
Part 4
Fire Effects on Electrical & Electronic Equipment
According to DOE Handbook
Part 5
Equipment & Electronics Corrosion Caused by Moisture & Contamination
According to National Electrical Manufacturers Association
Part 6
Equipment Restoration Process - Start to Finish
Part 7
Technical Restoration Procedures
Part 8
Case Studies Based On Real Equipment Loss Claims
Part 9
General Contractor and Sub Trade Relationships
Part 10
About Newtron Group and Available Services
Conclusion
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part One: Equipment & Electronics Contamination, Corrosion, and
Restoration Explained in Plain Language
In a live interview, Danny Fung, President and Senior Technical Consultant at Newtron Group, provided this
explanation of equipment and electronics contamination, corrosion, and restoration. Danny is an Electrical
Engineer with over 30 years of experience, having spent most of his career specializing in equipment damage
analysis and restoration techniques. The following provides a clear understanding of:
• what equipment contamination and corrosion is;
• how it causes equipment failure;
• how to properly clean and restore equipment;
• and how cost effective restoration can be.
Smoke Contamination: Smoke is the end product of combustion. Its composition varies greatly depending on
the material that was consumed by fire.
The black soot that gives smoke its distinctive colour is often carbon. It is produced from the burning of wood,
plastic, petroleum, and other organic products. As carbon conducts electricity, it can cause short circuits in
electrical and electronic equipment. Furthermore, it can cause overheating problems in heat producing
equipment because of carbon’s heat-insulating properties. Carbon does not dissolve in water or solvents, and
must be removed by mechanical means such as wiping, scrubbing and vacuuming.
Sulphate and nitrate are contaminants that are also commonly found in smoke. They are produced from the
burning of rubber, lacquer paint, petroleum based lubricants, and fuel oil; including diesel fuels. Combined with
moisture, sulphate and nitrate it can turn into various forms of sulphurous and nitrous acids. These acids can cause
serious corrosion in metals and electrical contacts, and the corrosive action can accelerate many orders of
magnitude upon the application of electricity.
The most harmful substance often found in smoke is chloride. In a majority of fire losses, chloride is produced by
the combustion of PVC plastic, which is commonly used in electrical wires, as well as plastic sheets, pipes, and
containers. Chloride reacts readily with moisture and turns into various forms of highly corrosive hydrochloric and
hydrochlorous acids. Their signatures in a typical fire scene are the bright orange flash rust found on bare metal
surfaces and the yellowing of enamel finish on appliances.
One particularly troubling situation is when chloride contacts the surface of ordinary stainless steel such as the 304
type, which is one of the most commonly used. Chloride, in the presence of moisture, can set up tiny galvanic cells
on a stainless steel surface in locations where there are microscopic mechanical imperfections that breach into the
micron-thick surface layer, which is a depth of one millionth of a metre. Such galvanic cells can dissolve away the
metal and create cavities below the surface. An even more troubling fact is that the chloride ions that take part in
making the metal disappear actually regenerate themselves as the reaction goes on. Their actions continue
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
indefinitely and make the cavities bigger and bigger. The end result is pitting corrosion that not only tarnishes the
appearance - it can eventually cause structural cracking that leads to equipment failure.
Similar problems can occur in the case of chemical contaminations such as the release of acid vapours or fumes, or
chlorine gas, and the discharge of chemicals including dry powders from fire extinguishers. It is the water soluble
components in the contaminants that react with moisture to cause corrosion problems.
Water Damage & Moisture Concerns: Water damage to equipment, other than by direct absorption, is often
caused by the same substances that make water conduct electricity - the minerals and other deposits that are in
the water. Tap water carries a certain amount of minerals such as calcium, sodium, and magnesium, originating
from mineral latent rocks buried deep underground in the water table. Rain water typically contains weak carbonic
acid which originates from carbon dioxide dissolving in rain drops as they fall from the sky. It can also contain
more harmful acids from pollutants - such as Sulphur dioxide and nitrous oxides – that are commonly found in
polluted air. When rain water enters the ground, all the acids and pollutants enter with it and react with whatever
minerals they encounter. When it reaches the water table then re-emerges, it contains a lot more than just H2O. In
addition, when that water passes through pumping stations, storage tanks, and pipelines, it picks up different
types of metal along the way. The longer it remains in pipes, pumps, and storage tanks, the more metals it picks
up. By the time water from a broken pipe or a sprinkler reaches equipment, it often carries many surprises.
The most harmful deed water can do to equipment is to introduce acids, minerals, and dirt contamination. In the
presence of water, such contaminants will break down into various ions and start to corrode as soon as they make
contact. An ion is an atom or molecule with a net electric charge due to the loss or gain of one or more electrons. If
the equipment is energized by electricity while it is still wet, the ions released by the minerals will act as conductors
and cause short circuits. More seriously, the corrosion process can accelerate by many orders of magnitude when
an electric current passes through a liquid containing minerals and ions. Catastrophic failures can occur within
minutes or seconds of flipping the switch.
After the water dries, those ions will re-combine into mineral molecules and will stay behind and remain inert. If
they are not removed, they will slowly react with moisture in the air, re-activate, continue to corrode and eventually
cause the equipment to fail.
Moisture exposure is a costly, and often, an overlooked hazard to electronic equipment. This is particularly
problematic in situations where the interior of equipment had been accumulating dust due to air convection or
mechanical cooling by fans. When air becomes very humid, dust particles begin to absorb moisture and collapse
into a wet, dense mass. If the equipment is switched on, this wet, dense mass can conduct electricity and cause
short circuits. If the moisture is allowed to dry, the caking of collapsed dust particles can act as heat insulation that
will not allow the equipment to cool properly, or start to obstruct air flow because of the new denser structures.
This, in turn, may cause overheating and eventually an equipment failure without direct contact with water.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
The Decontamination & Restoration Process: When a piece of equipment, no matter how sophisticated, is
contaminated, the restoration battle is far from lost. The secret is to deal with the situation before corrosion has a
chance to inflict any damage that is significant or permanent.
Since moisture must be present in order for corrosion to take place, the first step is to make sure the equipment
remains powered off and stays dry. Without water or moisture, and without electricity as an accelerant, the
entrapped minerals cannot break down into ions and therefore will stay inert until removed.
The next step is to completely remove the soot, acids, and dirt before they are activated and inflict any damage
further down the road. The most effective method is to disassemble the equipment, scrub and clean all the
affected parts in specially formulated detergents, neutralize the chloride, sulphate or nitrate if necessary, then if
applicable, thoroughly rinse them in distilled or demineralized water, or an organic solvent such as ether. Don’t be
afraid to do this on electronic equipment, as they are essentially composites of non-absorbing materials such as
ceramic, plastic, silicon and metal, thus cleaning them with such liquids will not cause any harm. The rinsing
solutions do not leave behind any residue when they dry, therefore the equipment will be free of contaminants.
The secret is to dry them thoroughly at an elevated temperature with well circulated air for extended periods of
time in order to remove any remaining moisture. Such work should only be handled by trained professionals using
specialized equipment.
The procedures involved in dealing with moisture-exposed equipment are very similar to those employed for
treating smoke and water related contamination. The disassembly of the equipment, thorough cleaning, and
proper drying are the keys. This work should only be handled by trained professionals, using specialized
equipment and chemical solutions.
Our many years of experience have shown that the success rate for restoring equipment is consistently better than
90% if undertaken quickly. The cost of the work is typically less than 30% of the net replacement value of the
equipment and that’s not counting any secondary cost associated with the loss of use of the equipment or
business interruption.
Danny Fung
Newtron Group President
Electrical Engineer and Senior Technical Consultant
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 2: Before and After with Brief Introduction
BEFORE
AFTER
These before and after photos demonstrate the possibilities available through choosing to clean and
restore commercial and industrial equipment rather than replace it. Any type of equipment, machinery,
electrical panel or electronic can be neutralized, decontaminated, cleaned and restored to pre loss
condition depending on the extent of the damages and corrosion. A time sensitive assessment of the loss
is always done first, immediately after the incident when possible, to determine if the property needs to
be written off and replaced or classified as restorable so recovery can begin.
Important Note* The opportunity for restoration, in many situations, is only a few weeks before
permanent pitting damage can be caused by prolonged contamination exposure.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 3: The Benefits of Equipment Restoration - Loss Reduction & Control
Statistics Review: Hard Costs from Equipment Restoration versus Equipment Replacement
There are two primary benefits of equipment restoration; cost reduction and business interruption
reduction.
The following information presented here is a statistical
review of hard cost financial data collected by Newtron
Group over a period of five years. The chart contains seven
examples selected from a number of similar major
commercial equipment losses. The data shows that in most
cases, equipment restoration saved 70% or more of the
claim amount, versus the cost of replacement. That cost
savings figure does not include the further savings from
reduced business interruption time.
The question therefore becomes “How do we ingrain this thinking into the claims handling process for
every level of insurance professional, from the onset of each claim?” If the potential cost savings are
better understood and the
ability to realize those savings is
ingrained in claims handling,
the claims costs will reflect
those efforts. Newtron Group
has provided the data to
support the fact that
restoration of equipment can
drive direct claims cost savings.
The cost savings are huge
and should be considered
during all applicable claims.
The following graph shows
data derived from actual claims.
The savings demonstrated are
in millions of dollars and again,
these numbers don’t include
business interruption costs.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Statistics Review: Business Interruption Time after Equipment Restoration versus
Equipment Replacement
Time is Costly
When a business is affected by a major loss incident the primary goal is to get the business up and
running, and back to pre-loss condition. Time is money, as they say, and for that reason it is important to
consider business interruption time, which can create an even larger loss than just the initial incident. The
fact is, restoration of equipment, electrical systems and machinery saves a significant amount of time, and
therefore a significant amount of money for all parties involved; insurer, insured and the insureds clients.
Replacement costs are a combination of the price to purchase, deliver, install, test, and train staff on new
equipment. Each stage in the replacement process creates additional business interruption time, adding
delays and hard costs.
Restoration is focused on reducing these delays and hard costs. When items are deemed restorable the
initial undertaking is based on how quickly the restoration can be completed properly while maintaining
the confidence of all parties involved, including the manufacturer at times. The restoration process has
proven time and again
that business
interruption time is
reduced in comparison
to replacement.
The following graph
displays the clear time
difference between
restoring equipment
as opposed to
replacing it. It is based
on seven case studies,
which demonstrate
and substantiate a
case for equipment
restoration over
replacement. These
case studies are
commercial claims
which Newtron Group
has serviced,
successfully reducing business interruption time in all cases.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
The Importance of Business Continuity
Property Insurance professionals who understand the importance of business continuity, know the
option which allows a businesses to be up and running in less time is in the best interest of all parties
involved. Time and money can be cut in half or even less by choosing equipment restoration for
commercial loses, such as those previously presented in actual case studies. There are many factors after
an incident which can increase the amount of time it takes to get a business back up and running,
however replacing equipment that can be restored shouldn’t be one of them.
To reiterate, time is of the essence when commercial and industrial equipment is exposed to fire, smoke,
contaminants or moisture. When too much time has passed after the exposure corrosion does not stop,
and when left untreated corrosion can turn a restorable item into a write off. As a result, time can create
lost opportunities, which is why it is critical to get exposed equipment assessed and treated immediately
after an incident is reported.
Who should you call before time runs out?
It is clear that equipment restoration should be considered after a property loss, therefore it is important
to have a relationship with an experienced and qualified vendor for equipment, electrical systems and
machinery restoration that can be at your service 24/7 anywhere in the country.
Choose a vendor that can be called into action anytime to assess the damage accurately and provide a
trouble-free recovery service. It’s definitely an advantage to build a relationship with specialized
restoration teams that understand the specific needs of businesses and clientele rather than simply
relying on a General Contractor. Engaging efficient restoration of equipment, electrical systems and
machinery is much more effective, time-wise, than the costly replacement of such equipment. This niche
service is specialized and absolutely requires an experienced resource that can work in parallel to the GC.
Together they can assist with getting businesses back up and running after an incident.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 4: Effects of Fire and Smoke Corrosivity on Electronics Equipment
BEGIN: Referenced and sourced from the Department of Energy, United States of America, DOE Handbook – Fire Protection – Volume
II - Prepared by Hughes Associates, Inc.
Fires in or around electronics or electrical equipment have become a concern due to the large amount of
control, communications, and data processing tasks performed electronically. Several electrical fires have
resulted in the direct loss of large amounts of capital investment and in the incapacitation of
communication systems and business operations. In addition, process control, shutdown and emergency
functions related to safe operation of manufacturing, industrial, commercial and energy facilities often
relies on electrical and electronic equipment.
The effects of fires on electrical and electronic equipment are significant, causing both short-term and
long-term problems. Short-term effects include short circuits or other electrical malfunction, rendering
equipment inoperable or initiating undesired actions. Long-term potential impact includes corrosion and
reduced reliability of equipment causing sporadic or unpredictable outages.
This section addresses the various mechanisms of damage to electronic equipment as a result of fire.
Several major categories have been defined: heat, smoke corrosivity, and soot deposition. Arcing as a
result of a fire may be caused either by corrosion or water applied through suppression efforts (sprinklers
or fire department). Consequently, arcing is not considered a primary damage mechanism. The three
primary damage mechanisms considered in this section are heat damage, corrosion damage, and soot
deposition. Suppression effects are not considered.
Corrosion Damage
The purpose of this section is to review the basic corrosion mechanisms, identify those that would be
expected from fire products, identify the fire products that cause corrosion, and finally to list the potential
effects of corrosive gas products on electronic components.
Corrosion is the deterioration and destruction of a material due to a reaction with the environment.
Corrosion is commonly associated with metals, but also includes plastics, rubber, ceramics, and other
non-metallic material. Electronic components corrode in normal environments, albeit very slowly. Fire
environments introduce new and higher concentrations of chemicals and moisture that induce corrosion.
Here is more detail on the corrosion of metals with corrosive products found in fire gases.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Corrosion of metals is an electrochemical degradation. This degradation is accelerated when in contact
with acids or bases. The products of corrosion are metal oxides and salts. There are many different forms
of corrosion. The following is a partial listing of types of corrosion that may occur in fire induced
environments.
(Lague and Copson, 1963; Fontana, 1986; Sandmann and Widmer, 1986; Skerry et al., 1988;
aerbois et al., 1985):
(1) Pitting Corrosion. This is a localized form of corrosion that results in holes in the metal surface
(Fontana, 1986; Skeny et al., 1985). The diameter of the holes is usually small and the depth is equal to or
greater than the diameter. Pitting is caused by halide ions, except for fluoride and iodide.
(2) Crevice Corrosion. This type of corrosion is similar to pitting. Crevice corrosion occurs in locations
where there is contact between metals and non­metals that create stagnant pools of the corrosive
materials (HCI and water or other corrosive fire products) (Fontana, 1986).
(3) Uniform Corrosion. This type of corrosion occurs at a uniform rate over the entire surface. This can
occur to metals with an even distribution of corrosive gases on the surface. A simple example of this type
is a rusting barrel.
(4) Two-Metal-Corrosion. When two dissimilar metals are in contact and in the presence of corrosive
agents, a flow of electrons is induced. The result is the less corrosive resistant metal corrodes faster and
the more resistant slower than if they were not in contact.
(5) Stress Corrosion. Stress corrosion occurs when a metal under tensile stress is subject to corrosive
agents. The corrosion is accelerated by stress induced cracking, increased tensile stress, and larger surface
area for corrosive attacks (Fontana, 1986; Sandmann and Widmer, 1986).
Corrosive gases adversely affect the performance of electronic equipment in several ways. The
following are the most common ways that corrosion causes electronic failure:
(1) Corrosion of leads causing shorting, openings, and current leaks,
(2) Changes in the overall electrical impedance of a circuit board,
(3) Changing of resistors due to decreased area,
(4) Relay, switch, and connector contact resistance changes,
(5) Disintegration of printed circuit board matrix epoxy resins, and
(6) Corrosion of cable insulations.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 5: Equipment & Electronics Corrosion Caused by Moisture &
Contamination
BEGIN: Referenced and sourced from the Guidelines for Handling
Water-damaged Electrical Equipment published by the National Electrical Manufacturers Association.
Electrical equipment exposed to water can be extremely dangerous if reenergized without proper
reconditioning or replacement. Reductions in integrity of electrical insulation due to moisture, debris
lodged in the equipment components, and other factors, can damage electrical equipment by affecting
the ability of the equipment to perform its intended function. Damage to electrical equipment can also
result from flood waters contaminated with chemicals, sewage, oil, and other debris that will affect the
integrity and performance of the equipment. Ocean water and salt spray can be particularly damaging
due to the corrosive and conductive nature of the salt water residue.
After consultation with the manufacturer, some types of electrical equipment may be reconditioned by
properly trained personnel. The ability to recondition the equipment may vary with the nature of the
electrical function, the degree of flooding, the age of the equipment, and the length of time the
equipment was exposed to water. The following items can all be restored after water exposure under
specific conditions:
•
•
•
•
•
•
•
•
Electrical Distribution Equipment
Motor Circuits
Power Equipment
Transformers
Wire, Cable, and Flexible Cords
Wiring Devices, Ground Fault Circuit Interrupters (GFCI), and Surge Protectors
Motors
Electronic Products, Including Signaling, Protection, Communication Systems, and Industrial
Controls
Where such systems are damaged by water, it is recommended that components of these systems be
replaced or restored with the appropriate cleaning, recalibration, and testing. Manufacturers of these
systems should be contacted for information on specific equipment by the restoration firm.
END: Referenced and sourced from the Guidelines for Handling
Water-damaged Electrical Equipment published by the National Electrical Manufacturers Association.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 6: Equipment Restoration Process – Start to Finish
Appropriate management of a claim includes customer service. Knowing what an insured is going to
experience during their claim recovery process is critical to managing customer expectations and
satisfaction. Here are the typical steps of the equipment restoration process that an insured will
experience.
1. An incident occurs and the claimant contacts their insurance company to report their claim or the
risk manager investigates to determine the loss recovery is within their deductible.
2. The insurance company or risk manager dispatches and assigns the appropriate service specialists
for the claim.
3. The equipment restoration firm receives a request to service a new claim assignment.
4. The firm contacts the claimant or site manager to schedule an equipment assessment and or pick up
time.
5. The firm assesses the affected equipment on site or in its lab facility to create a report to recommend
whether the affected equipment should be replaced or can be fully restored to pre-loss condition.
This assessment report provides the insurance company with an estimate of cost and time to
conclusion.
6. Written permission from the insurance company and claimant are received by the firm prior to
restoration.
7. The restoration procedures are executed to restore the equipment to pre-loss condition.
8. Restoration Technicians test the restored equipment to ensure it functions properly and/or
coordinates the appropriate equipment vendors to test and certify the restored equipment.
9. If needed, the firm stores the equipment in its secure facility until the claimant is ready for it to be
delivered to their property.
10. Upon approval by the insurance company and claimant, the equipment is delivered back to the
claimant. The Restoration firm then gets signoff of successful delivery and receipt of the equipment.
11. The firm should provide a 1 year warranty to the claimant for peace of mind upon completion.
12. The equipment restoration firm is then paid by the insurance company or property restoration
contractor directly.
HST or GST billed on the claim is the claimant’s responsibility to pay, unless the claimant’s insurance
policy specifically states differently
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 7: Technical Restoration Procedures
There are a few ways to do equipment decontamination, cleaning and restoration. Some ways are very
technology driven, like using ultrasonic methods, but the most reliable and effective methods are
mechanical in nature. Good old elbow grease in combination with tools and special chemicals.
Newtron Group employs proprietary chemical processes that have been proven effective in neutralizing
contaminants and removing corrosion caused by water and smoke affecting industrial equipment,
computer hardware and electronics. This process involves a combination of procedures called Modified
Dry, Modified Wet and Full Wet. The decision regarding which procedure to use on a particular piece of
equipment is made by the Project Manager and/or the Site Supervisor, based on factors including but not
limited to the circumstances of the loss, the type of equipment, and the condition of the equipment.
This favoured restoration process often requires partial or full disassembly of the device being worked on.
For the Modified Wet and Full Wet procedures, selected groups of specialized chemicals that are
designed not to harm or have any adverse long term effects on the equipment, and are environmentally
safe, are utilized. The process follows all Electrostatic Discharge procedures and technicians are equipped
with all the necessary ESD protective equipment.
One of the following procedures, or a combination of the three, is adhered to whenever a
restoration project is undertaken:
1. Modified Dry Procedure
The Modified Dry process is utilized when equipment has very light contamination or when an item
cannot be safely exposed to wet processes due to sensitive components such as optical circuits, relays,
and wicking components.
2. Modified Wet Procedure
Items that have light to medium contamination and can be exposed to wet processes are ideal
candidates for the Modified Wet Procedure.
3. Full Wet Procedure
The Full Wet process is used for equipment that has medium to high levels of contamination and can be
fully exposed to wet processes. Interestingly, the same Full Wet process is also utilized by circuit board
manufacturers in the final stages of production to remove excess solder, flux, and other particulates.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 8: Case Studies Based On Past Equipment Loss Claims
This section is dedicated to sharing real life case studies of equipment loss recovery and reduction.
Case Study 1) Explosion, Fire Damages and Smoke Contamination of a Jet Engine Repair Facility –
Restoration Project ($30 Million Loss Exposure)
This client has operations in Winnipeg, Manitoba that had two plants exposed to smoke contamination,
equaling approximately 200,000 sq/ft where they preform aircraft engine and motor repairs for the
military and major airlines.
There are several types of equipment and machinery in their facility, including but not limited to CNC
machines and grinders, drill presses, office equipment (copiers), microscopes and metal hardness testers.
There were approximately 200 different items that were exposed to corrosive smoke and moisture
caused by a heater inside a tank that started a fire. As well, acid and various chemicals leaked on the floor
in certain areas, contributing to the elements that cause corrosive contamination.
Business interruption was extremely concerning for the insured as their clients did not have jet engines
laying around in abundance. They had to keep to their delivery schedules and worked closely with the
Newtron team to create schedules that would allow for the most efficient critical path to recovery.
THE CHALLENGE
The entire plant was shut down initially due to soot / carbon that settled on components and electrical
boards causing shorting electrical signals. The Running machines were also affected with soot and
chlorides inside, which needed heavier cleaning.
The sheer size of the plant and volume of items affected required dozens of technicians to keep up with
the recovery goal timeline. This was combined with the strict policies enforced by the local electrical
authority, which made it a challenging claim to complete and be backed by warranty.
THE CRITICAL PATH
The critical path was based on dividing the plants into zones based on priority and extent of corrosive exposure,
with over 30 technicians scheduled for an average of 10 hours per day, seven days a week.
For the purple and energy zones the Power Authority and McCain electrical came in to examine our initial work.
After their review they decided that the machines could be run without having to change any parts. We had the
purple zone back up and running with a 99.9% operational recovery within one month of our arrival.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
The green zone was also cleaned, restored and reviewed within another month with a 99% recovery. Only overload
systems needed to be replaced but machines could be used until they were changed.
In the yellow zone, all breakers had to be changed before using the machines. Water, due to sprinklers, affected
some of the electrical systems of the machinery. After the cleaning was done, heating and drying was required to
fully dry out the machines from any residual moisture. All of the restored machinery worked properly,
approximately 95% of all items, as warranties were claimed on some of the machines.
In the red zone, which had the worst contamination and fire damages, most of the equipment, including
laser welders and various machinery, was moved to another warehouse to be cleaned and restored while
the yellow zone was being serviced. It took about 2 weeks, including big machinery and smaller
equipment. 90% of the items tested by McCain were working.
The local Electrical Authourity would normally demand all electrical components and wiring be replaced,
but after a review of initial work done by Newtron Group they agreed to allow almost everything to be
restored as opposed to being replaced. This allowed our team to dramatically reduce business
interruption time and costs.
THE RESULTS
Here are some of the results due to our work on the loss:
•
The plant was 96% up and running after 3 months of Newtron Group starting their services
•
The loss was reduced by approximately 90% with a total equipment recovery cost of $3 million
versus the replacement cost of $30 million
•
Business interruption was reduced by approximately 73% to 14 weeks from a projected 52 weeks
•
The local Electrical Authourity made an unprecedented acceptance to allow all equipment and
electric systems to be used upon our restoration services, except for the breakers with open
contacts during the fire as well as over voltage devices (fuses)
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Case Study 2) Fire and Water Contamination to Produce Processing Facility – Restoration Project
($15 Million Loss Exposure)
The client is a world leader in processing fresh and frozen vegetables with a property loss in Tecumseh,
Ontario. On July 24th, 2014 our team was called in to inspect the produce processing facility to find
smoldering debris from the warehouse that burnt down. Processing had stopped completely due to
physical damages and contamination from smoke and moisture. Several contractors were engaged to
help restore the property while Newtron Group focused on getting the blast freezers and production line
equipment ready for food grade certified operation.
THE CHALLENGE
The timeline to get the insured back into operation was the biggest challenge. It was very critical that the
facility was able to process the crop that had recently been harvested and purchased from the local
farmers. It needed to be processed before it spoiled to prevent losing the year’s crop. If the crop didn’t
get processed then the insured would have no product to package for the season, which includes the
winter months, and would lose on the cost of the crop.
The project had many challenges due to the very narrow timeline and coordinating all the different
contractors and vendors to ensure deadlines were met. The challenges increased when, due to no fault of
Newtron Group, the Ministry of Labour (MOL) shutdown the site for 3 days. The scope also kept
increasing as well, but the timeline stayed the same. It was a very stressful situation for all parties
involved.
THE CRITICAL PATH
The critical path that Newtron Group developed started July 25th, upon authorization to begin cleaning
and restoring the electrical systems, equipment and machinery. The timeline was to complete restoration
by August 31st with a crew of 17 technicians.
As the scope increased our team of technicians grew to approximately 40 techs per day to meet the
timeline set out by the insured.
The equipment restoration was planned to happen as the building was being restored by the other
contractors with a five week timeline and a common operational launch date.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
THE RESULTS
•
The frozen and fresh produce packaging lines including both canning and fresh cut technologies,
blast freezers and auto palletizing lines were all restored on time
•
The loss was reduced by approximately 85% with a total equipment recovery cost of $2.2 million
versus the replacement cost of $15 million
•
Business interruption time was reduced by approximately 90% to 5 weeks from a projected 50
weeks
The insured commented that Newtron Group was the only vendor to finish on time and was very happy
with our service
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Case Study 3) Fire Damages and Smoke Contamination to an HDTV Live Broadcasting Trailer –
Restoration Project ($8 Million Loss Exposure)
For over 25 years, this client has been on the leading edge of multi-platform video production. On
January 6th Newtron Group was called in to inspect a mobile video unit that was exposed to smoke which
passed through the ventilation system from the burning tires of the transport truck hauling it. The initial
inspection was done at the insureds facility in Calgary.
The HDTV Live Broadcasting trailer contained audio/video amplifiers, switches, camera controllers,
routers and thousands of cables that were all exposed to corrosive smoke. The trailer was transported to
Newtron Group’s facility in Brampton, Ontario to do a more in-depth inspection with the insured’s
engineers and our own team.
The unit was determined to be restorable and we were assigned all the equipment and wiring. We were
teamed up with ServiceMaster to handle the odor elimination from the non-technical and fabric interior.
THE CHALLENGE
It was a very cold Canadian winter and there were thousands of cables that had to be identified to ensure
correct re-installation. If the mobile unit was left until it could be serviced outside the corrosion would
have caused too much damage.
THE CRITICAL PATH
The critical path that Newtron Group developed was very simple; start the restoration immediately, with
ServiceMaster, by using our indoor facility with enough technicians to accomplish a full restoration within
two months. The milestones included, labelling and documenting thousands of cables, various monitors,
amps, switches and routers. Then disassembling the equipment and cables to clean, neutralize and
decontaminate. After which everything had to be reassembled to be tested and recommissioned by the
insured.
THE RESULTS
•
The entire project ran smoothly and the client was extremely happy
•
The loss was reduced by approximately 93% with a total equipment recovery cost of $550
thousand versus the replacement cost of $8 million
•
Business interruption was reduced by approximately 55% - taking only 12 weeks instead of the
projected 26 weeks
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Case Study 4) Fire Damages and Smoke Contamination to a Chrome Plating Shop – Restoration
Project ($1.4 Million Loss Exposure)
The client is a Chrome Plating Shop in Mississauga, Ontario that had an electrical fire that exposed $1.4
million of machinery, equipment and electrical panels to high levels of smoke contamination. Newtron
Group was called into assess the condition of the machinery and determined it was able to clean and
restore the effected equipment to pre-loss condition.
THE CHALLENGE
The insured had several projects in production for their clients and they were at risk of losing the
contracts if they could not deliver on time. They were forced to outsource some of their work to a
competitor for the most urgent deliverables and had to start production themselves within a few days of
the fire. If they had to wait for replacements they would have been forced out of business.
THE CRITICAL PATH
Newtron Group’s lead technical project manager was able to work with the insured to create an
alternating work schedule between the recovery team and the facilities production team. The restoration
team worked seven nights a week with shifts from 6pm until 5am and the production team worked
during regular business hours on weekdays.
The equipment was serviced while the property restoration vendor cleaned and repaired the building. As
each piece of equipment and chrome plating machinery was decontaminated and reissued for service it
was put into immediate production. This allowed the insured to be operating within two days and the
entire loss was recovered within two weeks.
THE RESULTS
•
•
•
The insured’s business was saved and everyone walked away very happy
The loss was reduced by 83% with a total equipment recovery cost of $250,000 versus the
replacement cost of $1.4 million
Business interruption was reduced by approximately 95% to 2 weeks from a projected 40+ weeks
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
BEFORE
AFTER
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 9) General Contractor and Sub Trade Relationships
Newtron Group is happy to work with General
Contractors as a sub trade, whether engaged directly by
the insurance company, insured or general contractor.
We work together in harmony to ensure the fastest
recovery time possible. While the GC is restoring the
building, Newtron Group is restoring the equipment and
systems.
The trade relationship is very important to maintain a
professional environment to ensure the work flow is
smooth and to help reduce the loss.
Newtron Group has been reducing losses nationwide for the insurance industry for over 20 years.
Upon completion of our work we confidently issue a one year warranty on our workmanship.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Part 10) About Newtron Group and Available Services
We wrote the book!
For a more in-depth understanding of equipment cleaning and
restoration, including information about corrosion and
contamination effects on equipment and bare metal, review our
book
“The Equipment Restoration Handbook”.
Newtron Group has fine-tuned the equipment cleaning and
restoration process for 20 years. Now it’s focused on ensuring as
many people across Canada who would be served by our services
are educated about the niche.
Visit http://equipmentrestorationhandbook.com for a mobile
friendly website version of the book or request an eBook PDF
download at http://newtrongroup.com/handbook
NEWTRON GROUP HEADQUARTERS
To continue the highest level of quality workmanship and results our leadership team keeps investing in the
business. We are now proud to say we are located in a new 50,000 sq/ft facility in Brampton Ontario.
Our facility contains the corporate offices
and the latest equipment, electronic and
technology cleaning and restoration
systems for the high volume service of
property claims in Ontario. The indoor
service bays allow us to clean very large
equipment all year round. It also houses
our team of experienced equipment
technicians who can be deployed
Nationwide to assist with commercial
and industrial property claims valued at
$25,000 and up to any size.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Equipment Cleaning, Restoration and Technical Consulting Services
When a major loss occurs we are the ideal company to call when any commercial, industrial or residential
equipment, machinery, electrical systems, and electronics require assessment for potential restoration
versus replacement. The following list is a quick
overview of the solutions and services that Newtron
Group offers.
Equipment Services
•
•
•
•
•
•
•
•
•
Assessment & Evaluation Reports
Technical Consulting
Neutralization, Cleaning and Restoration
Decontamination
National Urgent Response (24/7/365)
Origin & Cause Analysis
Equipment & System Damage Assessments
Technical Project Management & Monitoring
Technical Auditing
This is a partial list of the industries we serve:
COMMERCIAL | INDUSTRIAL | MANUFACTURING | TECH | GOVERNMENT | AEROSPACE | MEDICAL | DENTAL
| FOOD PROCESSING | INSTITUTIONAL | RESIDENTIAL
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]
Conclusion
Thank you for taking the time to learn about equipment cleaning and restoration to help reduce costs
and business interruption on future claims.
For more information or details please feel free to contact Newtron Group and a qualified representative
will be happy to assist you.
This concludes this e-learning module.
Newtron Group
8 Indell Lane, Brampton, Ontario, L6T 3Y3, Canada
1-905-458-1400 (International)
1-800-238-3734 (In Canada)
www.newtrongroup.com
@NewtronGroup
[email protected]