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Bid Specifications for Commercial Properties

The top seven components of a written specification, related issues and what property owners need to be prepared for are covered in this multi-part series on why roofing specifications are so important.

Roof systems should last twenty years and its not uncommon to achieve closer to a thirty year return on investment. In markets like the Bay Area, its an unfortunate reality that roof ROIs can be far below fifteen years.

A specification assures the Type of Roof System and Scope of Work is consistent between bidding participants, Roofing Materials meet common standards and invited Contractors are Qualified. Bid specifications also minimize Change Orders through Pre-Bid Reviews and more importantly define Best Practice Roofing Techniques.

Overview
Commercial Roof Systems are generally considered to be low sloped or barrel roofs. Buildings that house business operations are not isolated to a single type of roof system though and may include a hybrid of roof systems – both low and steep sloped styles.

Commercial roofing today is no longer limited to buildings with office or retail space because commercial properties encompass apartments, condominiums, townhouse that are typically designed with sloped roofs which may have low slope equipment wells. And, whether the property is a multi-family dwelling, a warehouse or thirty story business center, property owners all expect to meet certain financial goals.

Property owners’ financial objectives may include the least out of pocket expense, best warranty and for those skilled in the art of investing, the greatest long term value. The latter based on minimizing out of pocket installation expense and year over year maintenance requirements.

Many perceive the Serviceable Life of a roof is linked to the material warranty. Indeed, manufacturers offer varying degrees of warranties – at ever increasing cost. Achieving the maximum serviceable life (ie: ROI) has less to do with warranties and more about the quality of workmanship during installation.

Type of Roof System
On occasion out of town property owners call looking for a roofing contractor. These blanket calls tend to be location specific meaning they are looking for a contractor in the general vicinity of their property. This is problematic for both local and distant property owners who do not understand the buildings’ requirements.

Time and again this “blanket affect” results in property owners who get three quotes, from three or more contractors, for as many different types of roof systems. The only basis to quantify the quotes is how well the sales person did in convincing the caller his/her system is the best. For most at this stage, it’s nearly impossible to qualify the proposed roof system(s) or the contractor.

Whether the caller is owner of a residential or commercial property, the challenge is the same. For example, take the typical homeowner, currently a resident of California who has a wood shake roof installed. The homeowner is likely to request replacement match the currently installed roof system. Unfortunately, the State of California discourages wood shake shingles and many insurance companies no longer cover shake shingle replacements in their policies.

Commercial property owners, operators and managers face a more difficult task because multiple types (three or more) of the roof systems identified in Table I can be installed on a single building. Contractors are more than willing to install the system they are certified for and familiar with. But is their particular system appropriate for your building? Are there critical issues that affect the timing of replacement and how will weather conditions influence the decision process?

PART II
This is Part II of a four part series on why roofing specifications are so important, where we explore the top seven components of a written specification. Previously, we introduced the typical approach to Requests for Proposals, the Type of Roof Systems and misperceptions on material warranties and the serviceable life of a roof system.

Part II takes a logical approach to selecting a warranty providing background and statistics as a guideline. Then we turn our attention to the next step in the process focusing on the Scope of Work and why it’s such an important component of any Request for Proposal.

Roofing Material Warranties
Material warranties seem to be a driving force for many property owners as if the warranty on material will determine the serviceable life or life cycle cost. Properly prepared specifications define minimum quality standards for materials, material handling and workmanship.

As mentioned in Part I, Material Warranty has little effect on the Serviceable Life of a roof system. Few of us know warranties can be voided by contractors in many ways. For instance, the handling of materials prior to any installation may be one of the most frequently cited legal arguments but there are several subtle issues, similar in nature that can affect the warranty.

How well the roof membrane is manufactured during installation should be the focal point of concern. This piece of the process is hidden by the top layer (cap sheet) which usually looks great upon completion. Once the membrane is covered though, it’s difficult to discover imperfections until failures begin to appear.

The only way to guarantee the membrane is installed using best practices is to have an independent project manager on-site. The end benefit is a roof system that will last twenty or more years, realizing tangible ROI and minimum disruptions to the tenants.

Materials are unlikely to fail but what would the manufacturer’s limit of liability be? Most warranties are prorated reducing the payout every year. Buyers can purchase an No Dollar Limit warranty at inflated prices but how will unplanned replacement affect the tenant and who will pay for damages to the building interior.

There are two better approaches to selecting a material warranty. One is reviewing replacement statistics for a particular region. For example, roof systems in Northern California have a replacement cycle between twelve (12) and sixteen (16) years. So, why purchase a forty (40) year warranty on the material if the life cycle of a roof falls short of its anticipated serviceable life of twenty (20) years.

Scope of Work
Presume property managers are familiar with local building codes, the current system and the type of system they want to install, will their Request for Proposal (RFP) from participating roofing professionals actually match a common set of criteria or use the same bill of materials (BOM)?

“All things being equal, when people are unfamiliar with technologies or the process becomes complicated, buyers tend to fall back to evaluating solutions based purely on price.”

In 20 years of being commercial roof system consultants, performing on-site project management, reviewing RFP’s and writing bid specifications, the likely answer is no. Most RFP responses contain so much ambiguity in the language that it places the client at extraordinary levels risk.

Obscurity seems to be the very vehicle by which contractors are given carte blanche to alter materials and make change orders. Without a definitive specification or professional roofing advisor, buyers can not expect post bid installation modifications will be in their best interest. More often, change orders (see below) have a net affect of increasing profits for the contractor while unexpectedly inflating previously established project budgets.

PART III
This is Part III of a four part series on why roofing specifications are so important. Parts I & II discussed pre-bid considerations owners and property managers need to address before inviting contractors to the party. In the next steps, we identify who should be invited, set operating parameters and prepare buyers with the skills to know when to show bidders the door.

Qualified Roofing Contractors
Property owners are successful investors and operators build great management teams that handle day-to-day operations but how do they go about identifying qualified contractors?

Local managers tend to maintain relationships with roofing company’s if for nothing else than to handle routine maintenance. However, there’s a wide gap between doing routine maintenance and the installation of a commercial roof system. To qualify for a material warranty, most manufacturers require a roofing company and its personnel to be certified and skilled with specific types of installations.

Successful qualification of any roofing contractor is best accomplished in the field. A practical review of the contractors’ skills includes hands on evaluations of prior work - preferably by experienced experts who have themselves been roofing professionals.

The quality of a roof system directly affects the return on investment, annual out-of-pocket cost and the property’s values at future exchange events. Buyers, sellers and triple net tenants all investigate the condition of a roof so choosing the right contractor for installation is a critical step.

Pre-Bid Review
Before any proposals can be submitted, the roofing contractors need to know exactly what the scope of work involves and what will be acceptable tolerances in the Bill of Materials (BOM). Short of having a well defined plan of action, buyers and bidders are driving forward in the dark without headlights.

The pre-bid review offers bidders an opportunity to review the project site, see first hand how busy the roof may be, its condition and what preparations will be necessary. A roof with many HVAC units, ventilation systems and other horizontal protrusions are considered as a “busy roof”.

This very important and necessary step helps prevents contractors from later making changes because they underestimated the man-power requirements or didn’t fully understand the scope of work and how much preparation would be involved.

It also provides an open forum for questions and answers assuring all bidders are on the same page. When winning bidders miscalculate key elements, they are forced to cut corners which compromises standards of excellence and best practices.

Change Orders
In all but new construction, a large portion of every roof is hidden. So, there is cause and room for some changes while the roofing project is in progress. Acceptable Change Orders include things like replacing portions of the deck that have deficiencies and structural issues revealed as roofers peel back the original surface. These are things that simply can not be seen until the project is started.

Beware of contractor attempts to initiate change orders. In most cases, with and without a project manager, proposed modifications solely benefit the contractor. There’s a correlation between the bill of materials, serviceable life and warranty where substitutions can affect the warranty - even if it lowers the price tag.

It’s important for property managers to assure Specification Changes are not introduced during the bid process. It’s not uncommon for contractors who have been invited to bid on System A, to provide two bids – one for System A and another of his choice “System B”. This technique is used to establish a foothold in the bid process.

The contractor may be bidding on a system they are not qualified to install. As a result, they present a low price bid on System A and then attempt to change the specification to System B. Contractors who become sole bidder is problematic and generally not in the clients best interest.

PART IV
This is the final Part of a four part series on why roofing specifications are so important. Earlier we explained the necessary preparations before inviting contractors to submit proposals, the importance of identifying qualified contractors and what precautions should be taken to assure all bidders are presenting apples-to-apples proposals.

Since the process and low bids are synonymous with efficiency, buyers need to make sure proficiency is not compromised by the necessity to cut corners. Its acceptable for businesses to earn a profit but not at the expense of quality that inflates long term cost.

Best Practice Techniques
The roofing industry continues to follow Generally Accepted Roofing Practices (GARP) established through a hybrid of building codes and manufacturer’s guidelines. Since the mid 1970’s, the industry has undergone many changes with the most concerning being a lack of journeyman in the field.

In California for instance, roofing laborers outnumber journeymen by a factor that may be greater than ten-to-one. In fact, most journeymen come from back east where the profession is passed on between generations. The seasonal nature of roofing and employee turnover inhibits a contractors’ ability to maintain a staff that can establish or develop journeymen proficiencies.

Enter “Generally Accepted Roofing Practices”. GARP is nothing close to Best Practices which tend to be defined by real journeymen. The adage goes, “everyone else is doing it this way, so it must be right”. Just because most roofers do it, doesn’t make it acceptable, nor does it establish best practices.

Generally Accepted Roofing Practices is illustrated in Figure I and Figure 2 is a Best Practice solution. The most likely reason roofing contractors choose one over the other is short term concerns about price without consideration for long term maintenance cost. A well written specification takes both under advisement and will demand contractors use best practices.

There is a cost difference between these flashings that can range from $20 to $30 each. We might realize an initial savings of $30 (per flashing) but the cost to maintain each flashing will be over $250 every three years. Or, nearly $2000 each over the serviceable life of the roof.

Professional bid specifications and on-site skilled project managers should not specify or allow these slope roof flashings (figure I) to be installed on a low slope roof. Price differences are truly discerning in the greater scheme of budgeting for a roof system with post installation maintenance requirements validating the proper selection of components.

There are more than two dozen methodologies contractors use in the name of GARP. Components comprise a small sampling, and the most critical issues are hidden from view once installation is complete. To avoid failures, Safeway has a core sample taken once every 5000 square feet during membrane application – long before it’s covered up with gravel.

Property owners and managers need assurances a roof system installation will follow best practices so it outlasts the warranty and results in a higher overall return on investment. This requires a specification to outline the scope of work (et al) in order to get the best price. An on-site project manager helps to reduce the possibility a roof system will prematurely fail.

Combined, the components of a bid specification guarantee property owners are getting the best value, a great installation and the best value that can be translated into the ROI of the overall property investment.

CRS Roof Consultants has been advising their clients on achieving the best possible ROI and how to reduce their annual cost for over twenty years.

CRS Roof Consultants, LLC
1361 S Winchester Blvd, Ste 207
San Jose, CA 95128
(408) 871-9296

 

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