Low-slope roofing guarantees

by Katie Daniel | May 2, 2016 11:23 am

by Mike Russo
Understanding and estimating the value of low-slope roofing manufacturers’ guarantees can be confusing. Part of the reason for this is even well-meaning industry sources can contribute to the plethora of inaccurate or misleading information FOUND in the market on the purposes and potential value of roof manufacturers’ guarantees.

For example, when it comes to choosing a roofing product, the National Roofing Contractors Association (NRCA) advises property owners that:

A roofing guarantee’s length should not be the primary criterion in the selection of a roofing product or roof system because the guarantee does not necessarily provide assurance of satisfactory roof system performance.

Poor workmanship on the part of the roofing contractor is the primary reason for roof failures. Fortunately, there are guarantees that provide the property owner with various degrees of protection from these workmanship issues.

The selection of a roof system application should be based on the product’s qualities and suitability for the prospective project. A long-term guarantee may be of little value to a customer if the roof system does not perform satisfactorily and leaks.(For more, visit staticcontent.nrca.net/consumer/warranties.pdf[1]).

The first statement in this quotation is correct, but the second is not always true. There are long-term roof guarantees offering a high level of protection against workmanship roofing problems. Additionally, what happens if the architect or roofing contractor misjudges the product’s “qualities and suitability” for a particular application? Before offering a long-term guarantee, most roofing manufacturers require detailed drawings for new roofing projects. On reroofs of existing buildings, an inspection report is required to ensure the assembly being installed is appropriate.

NRCA points out failures of the actual roofing product or material being guaranteed by the manufacturer are extremely rare. This was certainly not the case 30 years ago, but it is generally true of today’s technologically advanced roofing systems. However, it adds that:

Manufacturer’s guarantees usually only cover the cost of the roofing materials, and they usually do not cover the labor and other costs associated with the removal and replacement of the existing roof.

The key word to note in this last statement is “usually.” For example, certain guarantee programs do cover the cost of labor (and more).

The long-term no dollar limit (NDL) guarantees offered by many roofing manufacturers today have a wide range of benefits to the property owner. Roof guarantees encourage—and almost always require—regular roof maintenance and inspections. According to NRCA, regular roof maintenance and inspections are key elements in extending the life of roofing systems, whether guaranteed or not.

In the roofing industry, guarantees are generally written to protect the manufacturer and they are not necessarily protection for the property owner. Guarantees are also issued as a legal safeguard against workmanship performed by the roofing contractor who does not meet the manufacturer’s published installation specifications.

The cost and quality of today’s roof guarantees vary greatly and can be used as competitive tools by the manufacturers to sell their products. This is not a bad thing, and no manufacturer guarantees its roof will last forever. However, it is important to have some type of guarantee coverage on low-slope roofs, unless the property owner plans to sell the building immediately after roofing. Even under these circumstances, the property owner may still be liable to the new owner of the building based on the contract documents of the sale.

The typical guarantee offered by the roofing contractor lasts from one to two years. If a property owner has just spent $1 million or more on a roofing system to protect a building, how secure will the property owner be with a short-term contractor guarantee—assuming a professional roofing contractor was used and is still in business before the guarantee expires?

While it is true most roofing defects show up under close scrutiny within a year, there is no guarantee the property owner will notice these problems until water begins to leak directly into the building after the contractor’s guarantee expires.

That is why most roofing manufacturers use the services of ‘authorized’ and ‘master’ commercial roofing contractors when certain roof guarantees are offered. Most major manufacturers handle their guarantee programs in a multi-tiered certification process. Only the most highly trained, top-tier ‘master select’ contractors offer property owners the most comprehensive guarantees. These roof contracting companies have been provided with various extensive educational materials developed by in-house technical experts—allowing them to stay current in the latest roof installation techniques. That is why manufacturers authorize them to offer enhanced system guarantees—some of which even includes a program offering a factory inspection of the finished roof.

Reading the fine print
Long-term roofing guarantees may include language limiting the manufacturer’s liability should something go wrong. For example, the guarantee may become void if the building is sold. This means the buyer will not have a roofing guarantee, even on a roof that is fairly new. Most top-of-the-line roof guarantees are transferrable, but can be costly.

One should determine if maintenance is ‘recommended’ or ‘required’ by the guarantee. If it is the latter, the guarantee should state specifically what needs to be done and how often it should be completed. A record of every repair and inspection should be kept to show that required maintenance has been performed. Often, professional roofing contractors will offer the property owner a maintenance program. On large projects, these contracts can take a lot of pressure and liability off the building management team. Manufacturers of high-end roofing products may offer guarantees of up to 35 years or more, depending on product specifications.

Some roofing manufacturers claim that more than two-thirds of the new-roof problems experienced by property owners are the result of poor installation. Therefore, many manufacturers do not cover workmanship. Similarly, some manufacturer’s guarantees pay for the replacement materials, but not the labor to install them.

One should see if the roofing contractor offers a separate guarantee to cover errors in workmanship. It is important to select the roofer carefully, as the guarantee on workmanship is good only as long as the contractor stays in business. One should hire a roofer with a long track record who will be around and fix future problems, and ensure the contractor is licensed from the Registrar of Contractors or similar department in the state.

Filing hard copies and/or electronic receipts for materials, the contractor’s invoice, and the contracts or original estimates offsite is good practice in case of flood or fire damage. This paperwork will be necessary if one has to file a claim against the guarantee.

Types and lengths of low-slope roof guarantees
‘Standard guarantees’ are legally referred to as ‘limited material guarantees.’ These guarantees limit manufacturer liabilities because they only cover the cost of the roofing membrane itself. The terms typically run 10 to 12 years and are prorated after the first service year. These documents have many exclusions and are not transferable if the building is sold.

The following are some exclusions listed directly from a sampling of real-world, ‘standard’ low-slope roofing guarantees:

1. Maximum liability is the original cost of the roof system—10 percent for each subsequent year, or eight percent annually for 12-year guarantees.
2. Membrane color fading is not covered under standard guarantees. This can be a serious issue on highly visible roofs.
3. A standard materials-only guarantee on a 500-square (i.e. 4645-m² [50,000-sf]), 1.1-mm (45-mil) thermoplastic polyolefin (TPO) membrane is worth about $652 after 10 years. Roof replacement is about $53,000.
4. The standard limited warranty does not offer coverage of the flashings, seams, adhesives, sealants, coatings, or workmanship.
5. As stated above, lack of maintenance, vandalism, use of non-certified contractors for repairs, and other events may void the roof guarantee.

The next guarantee up-the-ladder in terms of quality and cost is the ‘integrated roof system guarantee.’ This guarantee also covers roofing material defects, but there are some important differences between it and the standard roof guarantee.

For example, the integrated roof system guarantee covers not only the roofing membrane itself, but also all roof accessories, including insulation. Guarantee lengths are available for up to 20 years, are not prorated, and cover 100 percent of original material and labor costs. The guarantee is also transferable to the next owner, but a regular maintenance program offered by a manufacturer-certified contractor is required.

Like the previous guarantee, the next program on the hierarchy covers materials and workmanship defects on the complete roofing system. Again, this guarantee is non-prorated and covers 100 percent of original material and labor costs. The cost of labor to install the replacement roof is also included, allowing this guarantee to feature additional requirements—including a factory inspection. Regular roof maintenance is again required, and the guarantee is transferable. Coverage rates may be limited to $100 per square (i.e. 9.3 m² [100 sf]) for asphaltic membranes and $300 per square for thermoplastic (i.e. thermoplastic polyolefin [TPO] and polyvinyl chloride [PVC]) systems.

This top-of-the-line roof system guarantee includes all the benefits of the guarantees previously listed, but the term of the guarantee is extended to 35 years or even more.

For example, if the original replacement contract of $45,000 TPO roofing project swells to a 35-year replacement cost of more than $126,000, all material defects and/or installation errors are covered at their full replacement cost 35 years later.

Obviously, these costly guarantees do not make sense for the majority of roofing projects. However, on a newly constructed building with a lifecycle of at least 100 years, this guarantee offers tremendous value to property owners planning to occupy the building indefinitely. One should remember this guarantee is fully transferable—creating an even greater value for the property owner if a future sale is in the offing.

Low-slope roofing system guarantees do not have to be confusing if the system manufacturer has organized its guarantee offerings into a comprehensive series of ‘good, better, best, and very-best’ programs.

“Contractors and manufacturers sometimes do not put enough thought into the promises they make about their products,” concludes Catherine E. Wilson, an attorney with Goldman Sloan Nash and Haber LLP in Toronto, Ontario. “Therefore, specifiers or their legal representatives should carefully study the guarantees that affect their customers most.”

Michael Russo is the former editor of Roofing/Siding/Insulation magazine and has reported on the roofing industry for 35 years. He is a regular contributor to Roofing Contractor, Western Roofing, Professional Roofing, Multi-housing News, and various other construction-related publications. Russo can be reached at mrusso1983@zoominternet.net[2].

Source URL: https://www.constructionspecifier.com/low-slope-roofing-guarantees/

---