RAMCON Roofing

Econcomic Effects of a Roof Leak

There is one dilemma we’ve all had to face at one time or another: when is roof replacement a better option than continued roof maintenance? Of course, the ideal answer to this question is never. But it is rare that a roof’s service life equals the service life of the rest of the building.

The more obvious answer to the question is that roof replacement is a better option when the roof’s watertight integrity- its primary function- is compromised. In other words, when leaks become intolerable, it is time to replace the roof. So then begs the questions, when do leaks become intolerable? Is leak tolerance the best or most cost-effective reason to make a huge capital investment? A central element in the roof-replacement decision for us is determining when leaks become bad enough to mandate replacement.

The Economics of Leaks
At RAMCON, we find that a financial model can help us determine when roof maintenance has reached the point of diminishing returns, in which case we essentially end up throwing good money after bad. As we at RAMCON preach preventive maintenance (PM) for roof systems, at some point PM really does become useless. It is difficult to justify the capital expense of replacing a roof, especially when that money could go toward new pavement, a new paint scheme or landscape design. But roof leaks also can hurt the bottom line. Consider these real-world examples:

Interior Damage. Roof leaks that damage ceiling tiles, carpet, furniture, and computers are common, but the damage can be much more severe. For example, one school lost its gymnasium floor due to damage from roof leaks. The school had to cancel or move athletic events and replace the floor, at a cost in excess of $500,000.

Operations Downtime. A large roof leak for one building owner in Tampa shut down operations for a day, costing the company an estimated $700,000 in revenue. We warned him for years.

Damaged Products. A retail store recently lost more than $40,000 worth of products due to one rook leak in Sarasota, on a roof that was ‘pushed back’ a year for replacement.

Lost Buisness. Roof leaks forced one hotel to close its top floor- its priciest rooms- for three weeks, causing significant lost revenue.

We must incorporate all of these factors into any lifecycle cost analysis in trying to justify a roof replacement.
Granted, for any of you whohas not gone through the cost justification process, projected costs are only predictions. But to neglect figuring in these costs is misleading and provides a false sense of security. At RAMCON, we can help you decide whether or not a roof can be fixed economically, or if you are throwing good money after bad and inviting disaster. Give us a call at (877) 726-2661.