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LIFE CYCLE COSTING OF ROOFS

Like the tires on your car, a roof is a depreciating item that starts to wear out from the moment it is installed. Thus the question of "How much?" must always be considered in the light of "How long?" Moreover, just as you would never put your family at risk by driving on bald tires, you don't want to put your home at risk by waiting until ceiling stains evidence the need for a new roof.

As we all know, depreciating items should be amortized over their life cycle; the cost per year is the true cost of the product. This reality explains why, at tax time, the government requires businesses to claim a yearly depreciated portion cost, rather than a one-time capital expense cost, on most major purchases.

The following graph compiled by the "Committee for
Firesafe Dwellings" shows the comparative cost per
100 sq. ft. of roofing material on a cost per year basis.
By: Brent Applegate - Past-President: Canadian Association of Home Inspectors,
President: Applegate Ventures Ltd. - Roof Consulting Services,
Technical Manager: Unicrete Roof Tiles.

Perhaps the most important bill former U.S. President Bill Clinton ever signed was the American infrastructure life cycle costing bill. Rather than compare bids on the basis of the best initial price, it decrees that the actual cost per year of a road, bridge or other infrastructure project over its entire estimated lifespan be factored in. This will unquestionably save American taxpayers billions of dollars by allowing the planners to choose the best quality materials, which are almost always the best value when priced on an actual cost per year basis.

Similarly, the spirit of the new Alberta Condominium Property Act is based on the premise that condo owners should pay for their yearly usage of the depreciating condo components -- roofs being a prime example. This new legislation will drive condominium designers and owners to specify more durable products such as concrete roof tiles. These types of products may cost more initially, but are less expensive than cheaper alternatives on a yearly amortized basis.

Many a product costs more initially but in the end, because of quality and long life cycle, is actually far less expensive. The 15-watt florescent light bulb is an interesting case in point. It costs around $20, (26 times more than its incandescent equivalent, a 60-watt bulb costing 75 cents), but lasts ten times longer, 10,000 hours as compared to 1,000. Thus with the 75-cent bulb you pay $7.50 for the same hours of use as the $20 bulb, which seems a good deal even though the 60-watt bulb has to be changed 10 times more often. But wait! Ten thousand hours at 60 watts/hr is 600 KW hours, and at the present rate of 11 cents will cost $66. Meanwhile the 15-watt fluorescent will use only 150 KW hours for a total cost of $16.50. The more expensive bulb will save you $37 (factoring in purchase price and power costs) over its life cycle -- and is thus, in real terms, less than half the price.

This rational is why many condo boards are now choosing maintenance-free exterior products like plastic decking components, vinyl windows and trim, and other non-wood alternatives. Their initial cost is higher, but amortized over the life cycle they end up far more economical. Most concrete products also fit this profile, and fiber cement siding and concrete roof tiles are becoming more commonly used. Concrete roof tiles are reported to now be the roof covering of choice in about 80% of the homes in Southern California and parts of Florida and Arizona.

Life cycle costing should definitely be used when choosing roofing material. In Europe, where the value of permanence is understood, more than 70% of roofs are concrete, clay or slate. Even the least costly of these -- concrete -- has a 100-year life expectancy and generally carries a strong 50-year warranty. Slate and clay tile roofs have been known to last several hundred years.

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