A Fortune 500 Company had plans to replace $5 million in roof systems at one of their western US plant sites. They had been operating on a run-to-failure program model and were prepared for a full replacement.
Given the costs, the client engaged us to help them fully understand their investment options before moving forward with a complete replacement. After performing an initial assessment at their site, we found that only a portion of their roof sections required a complete replacement, while other sections still had useful life opportunities provided a complete roof repair and restoration program was implemented immediately, along with annual roof maintenance. We pivoted to think about what could be done to extend the life of their assets while saving them money. The savings captured were substantial.
As a new partner, we serve as an objective third-party to financially analyze the building assets, ultimately helping this Fortune 500 company to view their buildings as a business investment. As part of our roof life cycle management program, we have established life cycle metrics for their roof assets to create accountability and set goals for savings—all while accounting for regular proactive maintenance during the life of the assets.
While this is still a fairly new partnership, we have already saved them a considerable amount of money in roof repairs and replacement projects alone. As we progress in our relationship with this company, our goals are to:
- Continue to assess and monitor opportunities for savings
- Keep roof systems on track with regular maintenance
- Lower cost of ownership by 15-20%
Savings and Successful Results with Life Cycle Management
The company was planning on a capital roof replacement spend of $6.4 million over 10 years at the one site with no preventative maintenance included – $4.5 million was to be spent to replace most roofs in the first year. Our professionals determined that they actually needed to spend only $1.4 million on immediate roof replacements and $1.7 million in restoration maintenance/life cycle investment in the first year, and then $30k annually on preventative maintenance for the full alternate 10-year plan.
Not only did we help them avoid unnecessary replacements and save more than $3 million over 10 years, but we also helped extend their roof assets for another 10 years.