The Commercial Roof System for a Warehouse, Mall or Research & Development building can cost anywhere from $300K to $3M. At these rates, the ROI for a new roof is a critical investment metric measured by the roof system life-cycle and stated in terms of Annual Performance Cost (APC).
A lower APC indicates better performing assets but roofing industry life-cycle averages suggest investors achieve on average less than 70% roof system ROI performance. Return reductions are greater when industry averages are compared to that of well maintained roof assets achieving 125% of the expected life-cycle.
Roof leaks are indications of failures that translate into reduced ROI and overall roof system investment value. The cost to repair roof systems and subsequent building interiors (at $110/sq ft for general office space) increase the APC while reducing the investors ROI.
The negative impact on roof system investments is characterized by loosely defined performance requirements at the point of purchase. And, once these expensive assets have been installed, accountability breaks down due to dynamics that range from property management to tenants.
According to a February 2010 Research Report by Freedonia Group, the US Roofing Industry is expected to expand by 2.4% through 2014 reaching nearly $18B in value. And, a July 2010 report suggest material cost will rise by 4.5% over the same time period.
Premature roof system failures, poor asset tracking and life-cycle forecasting continue to plague investors. Roof systems worldwide fail on average in about 17 years whereas local regions like California experience shorter life-cycles closer to 14 years for a commercial roof. Worldwide, that’s a 15% to 32% loss on 20/25 year assets respectively.
In the US alone, investors loose $2.6B to $5.6B annually due to undefined roof system specifications, inefficiencies in obtaining contractor bids and following generally accepted roofing practices. "Once a roof system has been installed, its important to monitor its condition and perform preventative maintenance"
Extended Warranties usually require bid specifications and annual inspections but not every roof is sold with a warranty. Rooftop assets have a high degree of exposure to harsh elements and should be surveyed at key milestones over their life-cycles. Scott Pritchett, Senior VP at Woodmont Real Estate Services cautions, "Not just any specification or inspection will do. Roofing specifications and maintenance assessment reports are best prepared by independent consultants who have neither a stake in the cost, or contractors performing your roof maintenance."
An independent roof consultant is better positioned to hold contractors accountable. Consultants provide the necessary roofing skills, knowledge and background on solutions purchased and installed once in 20 years for most. Even twenty times in a life-time doesn’t make an in-house expert as industry wide, contractors have a reputation for smoking mirrors.
Nationally, independent roof consultants number less than a thousand but Robert Laubach, President of Environmental Roofing & Waterproofing said, "Roofing Consultants solve an important problem for roofing contractors by clearly defining what the customer wants and expects out of the end product." Indeed, the majority of complaints registered with State Contractor Agencies appear to be related to the buyers' expectations.
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About CRS Roof Consultants
CRS Roof Consultants, the nations leading Independent Roof Consulting Firm. Established in 1986, its headquarters remain in the heart of Silicon Valley (San Jose, California) where it services national clients. As an authority on Commercial Roof System Investments, CRS Roof Consultants publishes information and technical papers that outline and educate readers on best roofing practices for property owners, investors, asset managers and property managers in the commercial real estate industry.
For more information about CRS Roof Consultants, the Roof Inspection White Paper or to obtain a free copy, visit: http://www.CRSRoofConsultants.com