| Perspectives A Quarterly Information Source from Benchmark, Inc. Volume 50 May 2004 |
Warranties - You paid for them, use themby Curtis Liscum, RRC Warranties seem to be a standard part of roofing life. Almost all public and most private sector roofing projects have requirements for some kind of a manufacturer's labor and material warranty. These warranties are issued at the completion of a project, filed away and in many cases, never seen again. Too many times when evaluating an existing roof, we find that an owner either doesn't know they have a warranty, or they fail to capitalize on the warranty benefits. Warranties have always been a controversial subject within the roofing industry. Many believe that obtaining a warranty is not a good business decision and significantly limits an owner's right. This premise is based on the fact that the manufacturers write the warranties and they are considered to be exclusionary documents, limiting a manufacturer's liability. Most comprehensive roofing manufacturer warranties provide labor and materials to repair leaks with the following general exclusions: The cost of a standard 10-year no-dollar limit (NDL) labor and material warranty ranges from $0.05 to $0.07 per square foot. A long-term warranty (20-years) can be as high as $0.10 to $0.20 per square foot. On an average size roofing project (10,000 sf) this equates to an out of pocket warranty cost from $500 - $2,000. If owners never use a warranty's leak repair service, these funds end up in the manufacturer's warranty reserve fund. The average cost of a leak repair ranges in the $500 - $1,000 range. So you can see that the repair of only a few leaks can recoup the cost of most warranties. Warranties do not cover repairs to leaks caused by abuse or mistreatment of the roof. In addition, warranties do not cover the repair of defects that do not leak, regardless of how severe they might be. Warranties cover the repair of labor or material deficiencies to manufacturer supplied materials that cause leaks. Manufacturer supplied materials may include the roof membrane and flashing, but generally do not include insulation or sheet metal items. Warranties generally require that the owner notify the roofing manufacturer in writing within 30 days of an observed leak. Failure to do so may nullify the manufacturer's obligation to perform repairs. Many times during our evaluation of a roof we find that our clients are not using their warranties. These contracts have some value and can provide relief from leaks. Owners need to be aware of these documents, as they paid money for them, and in times of reduced budgets they can provide covered roof repairs for little or minimal out of pocket expense. |