When most homeowners look at roofing, they look at the materials and the initial cost. However, the cost to install a roof is only a portion of the total cost of owning a roof.
The practice of examining the cost of owning a roof over its entire life is called “Life Cycle Cost Analysis”. This is the best way to truly compare the cost and value of any roofing system. It is crucial to determine your life cycle costs before you spend your hard-earned money. This is true whether you are considering a roof repair or replacement. A common mistake many homeowners make is thinking of the money spent on their roof as a one-time expense, failing to consider the life cycle cost or the years of “Service Life”, they receive from their investment.
How long do you expect to own the building? If the answer is indefinitely, then the analysis should be run for at least 20 years. Some people will use 30 years. The standard depreciation for roofing is 39 years.
To determine your annual roofing cost you will need to know the investment amount and the years of “Service Life”, you expect to receive. For example, consider a new roof costing $10,000.00 and will provide 20 years of carefree useful “Service Life”. This roof would cost $500.00 annually.
Now, consider a repair costing $900.00 would extend the “Service Life” of an old roof by two years. The repair would only cost you $450.00 per year.
Following are a few more examples.
|
Description of Work |
Investment Amount |
Years of Useful Service |
Annual cost |
|
Complete Roof Replacement |
$10,000.00 |
20 years |
$500.00 |
|
Same As Above With Improved Materials |
$12,000.00 |
40 years |
$300.00 |
|
Replace Complete Roof Job Awarded To Low Bidder |
$8000.00 |
10 years |
$800.00 |
|
Same As Above Including Repairing Damage To Interior Resulting From Roof Leak |
$8000.00 plus $1500.00 interior repair |
10 years |
$950.00 |
|
Repair Old Roof |
$900.00 |
2 years |
$450.00 |
|
Same As Above |
$900.00 |
6 month |
$1800.00 |
Even though I used these as examples, I have personally observed many similar scenarios first hand. You will want to do your own calculations based on actual numbers. The basis of this report is written considering the cost of keeping a roof over your head, long-term.
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