Estimating the cost of a new commercial roof
April 14, 2023

Estimating the Cost of a New Commercial Roof

The main goal of this article is going to prepare the potential consumer for the complex nature of each individual roofing job; to prepare the customer to grasp why they simply can’t go to a contractor’s website and find a price – or why they can’t take a 10 minute call with a contractor and receive an accurate ballpark price. This article is meant to bring to light the complex nature of a commercial roofing job and the essential importance of an onsite inspection, while simultaneously allowing the customer to be more at ease and comfortable with the processes and variables that an honest, competent and truly professional roofing contractor needs to go through in order to eventually bring to the table a fair estimate of the scope and cost of the final roofing project.

At the end of this article, you’ll be able to make a fairly accurate judgment – based on your newfound knowledge of the variables and essential inspection processes – of a roofing company’s ability to provide you with an honest and competent cost estimate.

Complexity and Variables When Estimating the Cost of a New Commercial Roof

Let’s paint a picture. You know that you are close to needing a new roof, but are unsure of what it’s going to cost. Maybe your roof is not currently leaking, or just leaking slightly. Whatever the case, you know the need for a new roof is imminent and you need to figure out an estimate and budget it appropriately. Oftentimes, a simple Google search will lead you to roofing contractors giving very broad ranges in cost (i.e. $3 to $14 per square foot).  Here’s why that is so dangerous for you as the consumer or owner of the building: there are just too many variables; and beyond that, there are specific variables which come down to what is best for your specific roof.  Without a competent roofing inspector visiting the building site and judging what is best for your building and its long term value, quick contractor estimates are just throwing numbers into the air that don’t reflect any accuracy or relevance. 

For starters, commercial roofs are usually much more complicated than residential roofs, with multiple layers and a variety of materials used in their construction. This makes it much more difficult to accurately estimate the cost of a roof replacement without actually inspecting the building in person. In addition, there can be underlying issues that are not visible to the naked eye, such as rot or water damage, which can significantly affect the cost of the project. This is why it is so important to have a professional inspection before beginning any work. 

The complexity of a roof replacement is why it’s so difficult to simply state prices per square footage. In fact, making a quick phone call to a roofing contractor and expecting them to give accurate square footage numbers is nearly impossible until an onsite inspection is performed.

commercial roofing contractor harrisburg, pa
Without a thorough roof inspection, documenting everything via photo's and notes, it's nearly impossible to accurately estimate the cost of a new roof.

Complexity of Commercial Roof Installations

Complexity of installation is a major factor that will be taken into account and can’t really be accounted for until the inspection team is able to get on-site. Many times, roofing contractors will tell potential customers over the phone or through email that the job will be straightforward; they’ll simply pull off the old roof and slap the new one on. This simple explanation is disingenuous at best and a huge red flag at worst, as a simple estimate over the phone is essentially impossible. 

There are hundreds of different variables when it comes to the complexity of the job. What materials will be used – this affects labor costs. How much time and effort will it take to mark off certain areas to stay safe on the job? What factors need to be considered for safety on the ground? Are there traffic situations that will need to be dealt with? For larger projects, will a crane need to be moved in?

It simply can’t be stressed enough that because of the complexity and variability of each roofing job, you just won’t be able to get an idea of the cost until a roofing inspection is performed.  While many roofing contractors will be happy to throw ballpark figures at you over the phone, those that do so without insisting upon a physical inspection should be avoided.

Size (Square footage)

When it comes to replacing a commercial building’s roof, the size of the roof obviously matters. After all, the larger the building, the more material and labor will be required to complete the job. As a result, the cost of a new roof replacement is directly related to the size of the building. In fact, although there are many variables to consider, size (square footage) is definitely the number one cost component of a new roof. 

The amount of materials needed will also increase with the size of the roof design, such as a multi-level or steeply pitched roof. That being said, keep in mind that due to economies of scale, the more square footage being worked on, the lower the cost per square foot should become. The charge for a 3,000 square roof vs. a 100,000 square foot roof will be different. 

The cost of labor is also directly related to the size of the building. The larger the building, the more time it will take to complete the job, and the more labor will be required. This includes the time it takes to remove the old roof, prepare the surface for the new roof, and install the new roof. 

Finally, the cost of any additional materials and equipment needed to complete the job will also be higher for a larger building. This includes the cost of scaffolding, ladders, and other equipment needed to safely access the roof.

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The size of the job, due to economies of scale, can effect the final cost per square footage of a commercial roofing job

Types of Materials

Usually, the roofing materials used will make up around 50-60% of the budget, with labor taking the majority of the rest of the cost. While we could list general pricing per square footage of each material, it wouldn’t be an accurate representation of the roofing cost as each building and budget requires their own individual assessment. Like we will continue to reiterate throughout this article, an onsite roofing inspection should be done initially before selection of materials is considered and finalized.

The type of building, the budget available, the local climate, and the intended use of the building all play a role in determining the best roofing and appropriate material for the job. Your contractor should walk you through and help you understand the different types of roofing materials available and why they are suitable for specific applications. For an in-depth look at roofing materials, we recommend our previous article, What is the Best Commercial Roofing Material?

Labor

Labor is one of the most significant factors that can affect the cost of a commercial roof replacement, and understanding how labor can affect the cost can help businesses make informed decisions about their roof replacement projects. The type of labor required for a commercial roof replacement will depend on the type of roofing materials and the complexity of the roof replacement project. And again, labor is a moving target just like the other variables. 

Replacing a flat roof will typically require fewer labor hours than a complex commercial roof with multiple pitches and valleys. Flat roofs can often be replaced in a shorter time frame, while complex roofs can require much longer periods of time. The amount of labor will also be affected by the size of the roof, with larger roofs requiring more labor hours to complete. Labor is also a function of the type of materials being used. There is more labor involved in installing a PVC roof than an EPDM roof, for example. The hourly rate of the labor force is another important factor that can affect the cost of a commercial roof replacement. The labor rate for a roof replacement project will depend on the type of labor that is required, the qualifications of the workers, and the location of the project. Labor rates can be higher in some locations.

As we stated previously, labor is also the largest factor in the roofing installation. The labor costs associated with a new roof are usually around 30-40% of the project’s budget, with the rest going mainly toward materials. Not only is labor the largest byline within the project cost, it’s also the most difficult to estimate. From the complexity of the roof to the materials, to the driving times labor needs to reach the project to the season (labor during the summer is more productive than in the winter months); labor is simply not a straightforward factor.

top rated commercial roofing in Harrisburg, pa
Generally speaking, labor is the most significant factors that contribute to the cost of a new commercial roof replacement

How do Commercial Roof Warranties Affect the Price?

Generally speaking, warranties don’t really affect the price of a commercial roof replacement job. Manufacturers warranties are pretty standard across the board within the roofing industry. The only instance of when a warranty may cost more is when a customer chooses what’s referred to as a ‘total coverage warranty’ – and different companies have different names for this. Total coverage warranties are essentially an upgrade that includes a labor warranty that matches the material warranty; and this type of warranty is provided by the materials manufacturer and not by the roofing contractor. Suffice it to say, a ‘total coverage warranty’ is not cheap. Most customers refrain from buying this additional warranty coverage. 

Standard warranties included with a commercial roofing project include the materials warranty from the manufacturer and the labor warranty from the installer. So from a variable standpoint, just remember that the warranty won’t affect the price of the roofing job.

For more detailed information on warranties, we highly recommend you read our previous blog, A Guide to Commercial Roofing Warranties, before you move forward with a commercial roofing replacement or coating job. 

Local Building Codes and Permits

Local codes and permits certainly are a variable that can affect the price of a roofing job but not as much as one may think. Any roofing work that is being done should immediately and automatically reflect the local building codes and for the most part, local building codes are pretty uniform across the country as they follow the same national codebook. 

Where this variable could come into play is your local municipality’s interpretation of the code. Additionally,  depending on the location, certain permits may need to be pulled. For example, larger cities like San Francisco or New York City, may have more stringent codes and unique permits that could potentially add to the cost of a roofing project. In any event, your local roofing contractor should be very much aware of unique codes or permits within your given locale.

Closing Thoughts

The fact of the matter is that we live in an instant gratification society. When we need something for our home, we go to Amazon or Best Buy to check and compare prices. We’re conditioned to price-compare on the web and walk away with a near instant understanding of what something will cost. 

Unfortunately, commercial roofs are the exact opposite nature of this process and the intricate mosaic of variable after variable for each individual commercial building is positively unique. This is such a truism in the commercial roofing industry that when it comes to comparing roofing contractors, you can now perceive how any commercial contractor that provides a quote over email or a phone conversation, without physically inspecting the roof, is most likely not the best contractor for the job – because he is necessary treating your roof as a monolith without the unique considerations your roof demands. Each roofing job is different and has its own unique set of challenges. This is because, again, every factor in a roofing job affects the other variables! The size affects the complexity. The size can affect the material type. The complexity of the job can also affect the material. And the labor is affected by each of the aforementioned factors. 

With all of this being said, this is why it’s crucial to get an inspection; and most roofing companies should be willing to give you that estimate free of charge. For more information on the inspection process, you can read our previous article entitled Why Commercial Roofing Inspections are so Important

Remember, the estimate cannot come until after the inspection. Therefore, the overarching goal of this article was to really help you, the consumer understand that it is essential to get an expert on your roof and view your roof as an individual roof. Afterward, a quality contractor will design a plan along with multiple options that will best suit your roof and your budgeting requirements.

If you are looking for commercial roofing services in Harrisburg, PA, and are looking to get a professional roofing estimate done, don’t hesitate to contact J Smucker Contracting where every client is unique. We look forward to guiding you through any questions and providing you with the best possible roofing experience possible!