Comparing Commercial Roofing Estimates

Replacing a commercial roof is a major financial investment for any property or facility. In most cases, a commercial reroof will cost well over $100,000 with costs larger facilities potentially exceeding $1,000,000. As a result, commercial property managers must be diligent in selecting the right commercial roofing contractor. The wrong choice can result in missed project timelines, change orders, and significant budget overruns among other issues.

Since many commercial roof replacements will require multiple bids, property managers must know how to compare commercial roofing estimates. While it is easy to look at the final price, this is not the best approach. Yes, price is incredibly important factor, but there are numerous areas of a commercial roofing estimate that impact price.

Here are important things property managers should evaluate to properly compare commercial roofing estimates.

Commercial Roof Replacement Material

Not all commercial roofing materials are made the same. While there are obvious differences between materials, such as TPO, EPDM, Built-Up-Roofing, metal, and asphalt shingles, there are also differences between the same materials. For example, TPO roofing commonly comes in three thicknesses:

45 mil – Builder Grade approximately 0.45 inches thick

60 mil – Middle Grade approximately 0.60 inches thick

80 mil – Premium Grade approximately 0.80 inches thick

Just because two roof replacement estimates say they will use a premium or high quality TPO roofing product, it does not mean the products are the same. While this example is specific to TPO roofing, the same concept applies to other commercial roofing materials. As a result, property managers must review the technical details of the specified roofing material when comparing two or three commercial roofing estimates.

Additional Material Costs

It is not unusual for two estimates, using the exact same material, to have different total material costs. How does this happen? There are two main reasons. First, one estimate could include freight to get the commercial roofing material to the jobsite, while the other does not.

The second factor is storage of materials. Very large projects that can take weeks or even months require storage of materials on location. Is the contractor or the property manager responsible for storing the material? The higher roofing estimate might include secure storage of the roofing material, to prevent theft, in a shipping container or storage pod.

Manufacturer Product Warranties

Accurately comparing commercial roofing estimates requires property managers to look closely at manufacturer backed warranties of the products being specified. This is because longer warranty coverage often drives material prices higher. There are numerous commercial roofing systems available, all offering different warranties and coverages. A 20 year warranty from GAF, Owens Corning, Johns Manville, and CertainTeed is not necessarily the same thing. Property managers must understand what the warranty entails and how it impacts the overall price.

There are also warranty discrepancies from products by the same manufacturer. For example, GAF offers different warranties on material defects for different products. Their EverGuard TPO 80 mil membrane comes with a 25 year material warranty. Meanwhile, Their Everguard Extreme TPO 80 mil membrane comes with a 35 year warranty. While the product with the longer warranty certainly costs more, perhaps it is worth the additional investment.

Even if the warranty is explicitly stated on the estimate, double check it against the manufacturer’s website.

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Craftsmanship Warranties

It is a common practice for commercial roofers to talk about warranties lasting 20, 30, or even 50 years. While these are great marketing points, they are often specific to the roofing material, not the roofing contractor. As a result, property managers must inquire about craftsmanship warranties when comparing commercial roofing estimates.

Craftsmanship warranties, unlike product warranties, cover the actual installation of the roofing system. If there is a defect or issue resulting from the installation of the roofing system, the craftsmanship warranty covers the labor cost of the repair. This is why craftsmanship warranties are also referred to as labor warranties. A commercial roofing contractor offering a 5 or 10 year craftsmanship warranty might charge a higher price than a roofer offering a 3 year craftsmanship warranty.

Insurance Coverage

Roofing contractors carrying less commercial insurance coverage pay lower annual premiums. This is a reduction in overhead that lets them charge less to replace a commercial roof and still make money. While this sounds great in theory, it is not the case. Property managers comparing commercial roofing estimates must know exactly how much insurance coverage is included.

Commercial property managers should require that all submitted estimates include the roofing contractor’s certificate of insurance (COI). The estimate should include a project specific COI. In turn, property managers must compare the coverages each roofing contractor carries. There should be coverage for worker’s compensation, personal injury, property damage, and business interruptions. As a general rule of thumb, property managers should look for $5,000,000 in coverage.

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Safety Record

While commercial roofing estimates don’t always include a contractor’s safety record, property managers are more than justified in requesting safety records before spending $1,000,000 on a new roof. OSHA requires large commercial records to disclose their safety records on an annual basis. Property managers using safety records to compare commercial roofing bids should always request a commercial roofers Total Recordable Incident Rate.

Total Recordable Incident Rate, or TRIR for short, measures the number of OSHA reportable safety incidents per year based on 100 full time employees. A low TRIR indicates a strong safety record. The average TRIR across the roofing industry is 4.4 incidents per year. This metric lets property managers accurately compare the safety records of commercial roofers against one another and the industry average.

Commercial Roof Removal Costs

Depending on the type of project, there are can be significant costs to remove and dispose of the existing commercial roofing system. Property managers comparing commercial roofing estimates must understand what they are paying for when it comes to removal and disposal of the existing roof.

Cost factors can include fees to rent dumpsters and charges to dump debris at local landfills. Finally, property managers should see what type of job cleanup is included in each estimate. Even if both estimates include “job cleanup” one might cover just the roof, while the other covers the surrounding areas of the property including parking lots, sidewalks, and landscaped areas.