Rooftop Matters. 2 0 1 2 Benchmark Report. Executive Summary

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The 2012 Benchmark Report is our initial survey covering results from roof inspections and service calls over a six-month period. Our intention is to update these results annually in order to provide meaningful information to Texas facility owners and managers in their effort to minimize the risk of tenant inconvenience and optimize the return on their real estate investment. In short, we are hopeful the insights in this annual report will help owners better manage the life cycle cost of their roof. The information contained in this report was gathered in our initial survey. The survey covered data from roof inspections and service calls by Texas Fifth Wall Roofing Systems from December 2011 through May 2012 and evaluates the factors of greatest concern for proper roof system management. Results are summarized from inspections covering over 5 million square feet of commercial facilities with builtup roof, modified bitumen, EPDM, metal and single-ply roof types. The average roof age is 11 years. Within these parameters, we have observed and categorized over 3,000 deficiencies. Our analysis begins with a comparison between actual findings and anticipated issues during the same time period. We will compare deficiencies observed during roof inspections to the findings of our service technicians responses and customer leak calls. In future reports, our summaries of roof inspection data will include a visual presentation of our findings, definitions of the most common deficiencies, considerations for addressing the most prevalent issues, and summary commentary. Executive Summary Frankly, we were somewhat surprised by the results of our analysis. With winter lows below 20 degrees, summer highs over 100 degrees and extreme drought conditions, Texas experienced record swings in temperatures during the year 2011. We expected the extreme weather to be a major contributing factor to the roof damage and deterioration we observed. We initially believed that weather conditions would result in a high incidence of ruptured seams, displaced caulking, and other such deficiencies caused by expansion and contraction of the roof system. But the factors that cause the most notable roof deterioration remain consistent with our experience in previous years: Improper installation, improper repairs, and normal roof aging top the list of defects identified in our survey. In reality, most roof systems are performing very well despite the extreme weather conditions we ve experienced over the last year and a half. While caulking deficiencies appear eight percent of the time, the frequency is much lower than expected. Open seams only comprised one percent of the observed deficiencies, and we found no notable occurrence of damage related to expansion and contraction of the roof caused by weather conditions. So if roofing systems are holding up well against the drama of Mother Nature, then what factors are to blame for this year s roof leaks and the deterioration that caused them?

Service Call Results Compared to Inspection Program Observations Here we compare the overall frequency of defects found in inspections to the defects that directly result in water intrusion and subsequent leak repair. It was important to compare the data gathered during service calls to the results of routine inspections because damage and deterioration observed during an inspection can be repaired before it causes a more dire condition such as a leak, resulting in a service call. In other words, it gives us an idea of how much damage is preventable and a measure of the effectiveness of a professional roof inspection program. We found that 43 percent of all leak repairs performed by our service technicians are caused by rooftop neglect. Referencing the Inspection Program findings, the majority of these leaks are caused by improper installation or repair (39%) of roof systems, or rooftop equipment and by rooftop activity (12%) that is, foot traffic and other such activity. The proximity of findings comprised of rooftop neglect suggests inspections are effective for identifying potential leaks leading to water intrusion. The data suggest that there is at least a 77 percent chance that an effective roof system preventative maintenance program could identify these deficiencies before they become a leak. 2

Inspection Program Observations The graph below summarizes the most common roof deficiencies identified by our inspection program. In the sections that follow we will expand on each category with details and recommend considerations for preventing damage. Improper Installation or Repair 39% of All Defects This category's incident rate is directly related to the density of equipment on the roof. Workmanship of other trades including, for example, chemical damage from HVAC technicians, lack of grease guards for restaurant exhausts, inattentive installations and such can significantly increase roof maintenance costs. While it is common for a roofer to be involved with initial tenant finish-outs that involve roof penetrations, a facility manager is less likely to consult a roofer for subsequent rooftop equipment installations or repairs. Hence, improper installations and repairs are the second most frequent deficiencies we observed. 3

What s Included? The most frequently observed deficiency involves shoddy installation of rooftop equipment by other trades. Careless satellite dish installations, non-existent grease traps, and obsolete devices are common occurrences. The second most frequent incidence of defects in this category relates to the transition of rooftop equipment into the facility. Such penetrations, if not performed properly with the right materials, may allow water or air into the building. Roof system manufacturers require the use of specific compatible materials and details to maximize service life and ensure continuation of a valid warranty. While their frequency as a contributing factor is low overall, improper flashing, deficient patches, and overlooking the use of walk pads as typically required are high frequency items in this category. Considerations Have a roofing professional review all equipment installations to ensure penetrations are properly sealed to achieve lasting water and air tightness Employ a roof access control program to track rooftop activity and inspect the roof routinely Require continued use of appropriate roof protection, such as slip sheets, walk pads or grease guards particularly for tenants that operate restaurants or have high maintenance equipment on the roof Use only manufacturer authorized service providers Visit the rooftop occasionally to visually identify problems Roof Aging 35% of All Defects With an average roof age of 11 years, it is reasonable to have a high incident rate of defects. Aging is a normal and expected cause of deficiency and performance loss, and we know that certain deficiencies become more common as roofs reach an advanced age. As the age of the roof increases, so does the likelihood of penetrations, caulking degradation, and damage to the field, among other issues. The majority of deficiencies we observed appear to be preventable issues, but most of the roofs inspected did not follow a scheduled roof inspection program. 4

Most roof systems today have built-in protections to help the roof achieve its expected lifespan; however, many of the roofs we observed (especially the older ones) were lacking such protective devices. While a preventative maintenance program is important for roof systems of all ages, it s clear that a robust preventative maintenance program becomes even more important as the roof ages. What s Included? This category includes items that are expected to lose their effectiveness over time but are also most easily maintained, such as caulking and sealants. It includes protective devices typically installed on a roof system such as wood blocking, slip-sheets, and grease traps. Also included are roof membrane seam failures, damaged items such as pipe vents and storm collars and items associated with roof system failures such as damaged gutters or downspouts, and accumulated debris. Considerations Protect high traffic areas with walk pads Inspect from the ground to identify loose or damaged gutters, downspouts, or trim Monitor penetrations and joints to ensure they remain sealed and caulked Consider the roof impact of certain tenant operations; require continued use of appropriate roof protection Monitor aging drainage systems Keep rooftop debris clear and trim overhanging trees Energy Efficiency 14% of All Defects Penetrations are normally made intentionally into roof systems to allow other trades access through the roof into the building interior for equipment, utilities, and other devices. These penetrations, however, are highly susceptible to damage or carelessness, and the uncontrolled air gaps that often result can rack up extra heating and cooling costs, as well as let in water vapor and condensation that damages the roof and building. 5

What s Included? The most frequent defect in this category is unsealed T-Top openings, allowing unobstructed exchange of interior and exterior air. Other penetrations, such as pipe, exhausts, and storm collars, dirty roofs, while not included in the data, were frequently observed anecdotally and will be added to future benchmark reports. Considerations An energy audit can identify improperly sealed penetrations Closely inspect pitch pans and T-Tops for decayed or missing sealants or insulation Periodically clean reflective roofs Pay special attention to caulking and other sealants during seasons with high temperature variations Rooftop Activity 12% of All Defects Unless specifically designed for foot traffic, a high rate of rooftop activity accelerates rooftop deterioration. Excessive roof traffic may cause hidden damage that diminishes the life of insulation, decking and other roof system components. Debris can result in a variety of problems, the most prominent of which include: punctures from sharp objects, windblown items that are potential hazards to the roof or pedestrians below, and blocked drainage that can create devastating backups and roof collapse. 6

What s Included? The most frequent causes of activity-related deficiencies were related to the presence of equipment parts, parts packaging, trash, overhanging trees, and HVAC debris. The resulting damages most frequently included cuts or punctures; damaged flashing, pipe boots, and downspouts; chemical damage from HVAC or other equipment; and disturbed ballast materials. Considerations Protect high traffic areas with walk pads Consider the roof impact of certain tenant operations and require use of appropriate roof protection devices Talk to your roofer to ensure a complete understanding of the roofing manufacturer s requirements for rooftop traffic Consider employing a roof access management program to control rooftop activity Inspect the work of other trades for incidental damage to roof components Keep rooftop debris clear and trim overhanging trees Conclusions After surviving a year of record temperature swings, the roofs we inspected seem relatively unfazed by weather. We conducted our first survey focused on the concept of roof defects, but it appears that most of the damage and potential causes of damage are due to external factors and the expected effects of aging. What should be encouraging to facility owners and managers about our findings is that we do not see a pattern of system failures. Commonly there are caulking issues and an occasional open seam, but by far the majority of the issues have little to do with deficiency in the system function or design. Today s roofing systems are designed to provide many years of service, but like any major investment, good stewardship can go a long way toward maintaining and maximizing their effectiveness. Many defects can go unnoticed over time and turn what could have been an easy repair into a major leak that may be costly to repair and costly to tenant relationships. A program of scheduled observations of rooftop conditions (performed either internally or by a roofing professional) could identify and correct most of the issues included in this report with inexpensive, routine proactive attention and extend the life of a roofing system. 7

About Texas Fifth Wall Roofing Texas Fifth Wall Roofing Systems, Inc. is an award-winning commercial roofing company that is focused on the lifecycle of the roof, providing new construction, re-roofing and maintenance with a common thread of relationships and ongoing superior service. As the largest service provider in the Central Texas region, Fifth Wall s service department offers repair and maintenance services for all types of commercial, industrial and retail properties. In new construction and reroofing installations, Fifth Wall works with single-ply, metal and composite systems. Forward-thinking responsiveness to customer needs and the firm s commitment to integrity over the bottom line have established Fifth Wall as a leader in the roofing industry. Founded in 1973, Fifth Wall is headquartered in Austin, Texas with an office in San Antonio. The company is committed to employing innovative roofing technology and is dedicated to building watertight relationships with its clients, suppliers and employees. Fifth Wall is a 15-time recipient of the Carlisle SynTec Excellence in Single-Ply award, and is one of only two companies west of the Mississippi to have completed more than 1,000 perfect installs. Additionally, Fifth Wall has been recognized by Firestone as Master Contractor, attaining Inner Circle of Quality, which is awarded for long-term installation quality. Fifth Wall is a Roofing Contractor Top 100 company and is the only roofing company in Texas to be recognized by Texas Mutual Insurance for safety performance. For additional information, visit www.fifthwallroofing.com. 8