Establishing Budget Parameters

Kevin Ernster, RRC

The driving force behind the majority of roofing projects is the budget. In previous issues of Perspectives we have discussed various design parameters that affect the installation and selection of a roof system. These have included roof access, roof traffic, energy requirements and site restrictions, all which have a major impact on the budgeting process.

In general, there are normally two ways budgets are established:

• The first method is when an owner knows that a roof needs to be replaced, and assigns a cost for replacement in the yearly budget using the "best guess" approach. This cost us usually based on the cost of the last roof, or is estimated by a roofing contractor. This type of budgeting may be fairly accurate if the roof that is being budgeted for is the same as one that the owned has been recently involved with. Typically, budgeting in this manner does not involve an in-depth assessment of the project.
• The second method is the development of the budget after all the parameters of the project have been identified and considered. This process requires advance planning and a complete assessment of all roofing requirements. The assessment provides a level of assurance that the budget will be reflective of the requirements of the project, and the project will be sufficiently funded when construction begins.

The first step is developing a budget by this second method, is to determine the goal of the roofing project. The most obvious goal is to get the most roof possible for your money. If your goal is short term, and the long-term performance of a roof system is not important, then your budget will be considerably different then if the system is required to provide 30 years of performance. This single factor will affect the other parameters and their importance in the roofing process. We have seen the cost of a roof vary 200 to 300 percent based on this decision, and its impact on the other parameters. We have also seen budgets developed for 30-year systems that were based on costs associated for 5-year systems.

When developing a budget, always consider outside limitations that will affect the cost of the final product. Limitations may include the following:

• Will the work be accomplished during normal working hours?
• Will fumes and noise pose restrictions on the project?
• Will the staging area be neat the project site?
• Will there be other construction projects that will affect the work?
• Will there be security restrictions on roofing personnel?
• Will there be safety requirements beyond the legal requirements posed on the roofing contractor?

In many instances, it's believed that materials the ultimate cost of a project. This is probably true if the project is for a large, single-level warehouse. However, the majority of roofing projects are labor intensive and material type only reflects marginal differences in final cost. It's more important that the budget be sufficiently funded to provide for the appropriate scope of work, than a particular material.

To establish an accurate budget, a good evaluation of your roofing requirements needs to be completed. Determine project parameters, goals, and the necessary scope of work to meet those goals, and your budget will accurately reflect the cost of construction.