How are third-party cost reviews typically used on commercial property claims?

Hi all

I am looking for some insight from people who’ve dealt with this more often.

Lately I am seeing carriers bring in third-party cost review firms on commercial property claims (sometimes even after we’ve already gone through revisions/supplements). In a few recent files, the carrier retained a third party to do a “line-by-line” review of our estimate, and then used that review to question pricing, scope, O&P, and even trade sequencing.

In one case, we submitted a supplement with supporting docs (photos, invoices, Xact line notes, etc.). After that, the carrier sent it to the third party and came back with reductions that felt more like claim negotiation than “validation.” It also creates a weird dynamic because the third party isn’t the insurer, but their report basically becomes the insurer’s position.

For those of you on the adjuster/contractor/PA side:

How are these reviews normally intended to be used?

Is it usually pre-settlement validation, or more of a post-hoc justification to cut scope/cost?

Any best practices for responding so it doesn’t turn into endless back-and-forth?

Any red flags you’ve seen (and what’s worked to resolve it)?

Appreciate any perspective, just trying to understand how common this is and the “right” way to handle it.