Every year, public school corporations in Indiana spend around $35 to $45 million to remediate the defective waterproofing integrity of their facilities. This startling number is needlessly wasted; there is a better way. By implementing roof asset management strategies, school corporations and taxpayers can see an approximate 15% to 20% reduction for these purchases while greatly improving the quality of the final product.

The Defective Price-Based Model

The problem begins with Public Work(s) RFPs, which affects the school corporation’s selection. Contractors know that the “low bid” wins, so they strategize to submit the lowest price. Schools then are basing their decision on price instead of performance and quality.

This model assumes that the school corporation will receive the same final product, regardless of who they hire for the job. If they consider all workers as equal, they are allowing contractors with little experience to compete with trained craftsmen.

The price-based model results in schools hiring low-performing, unqualified contractors, which ends in unsatisfied customers who overpaid for shoddy work. This culture fosters poor performance, late projects, blown budgets, and a lack of accountability.

Changing the Process

In order to change the results, the process must change. That begins by bringing accountability into the system and implementing a process based on value principles and logic instead of solely on price.

Believe it or not, it is possible to increase value while reducing costs by incorporating the following principles:

  • Use fact-based information modeling to measure performance, thus making the contractor accountable for better performance
  • Use performance modeling, along with price, to select the best value not the cheapest price (high performance with an affordable price)
  • Transfer the risk accountability from the school corporation to the contractors, thus forcing the them to manage the project and the quality from cradle to grave
  • Use requirements that reflect the owner’s definition of quality and intent in lieu of “boilerplate specifications.”

When performance and quality are continuously measured, performance information and reputation motivate contractors to raise their level of quality and workmanship. After all, no contractor wants to be designated as non-responsive, non-responsible, and unable to bid on future projects.

The New Way

It’s not surprising that it’s hard for owners to believe that there is a process available that attracts qualified contractors that do quality work. The human urge for wanting something from nothing has transformed school roofing projects into a high-risk event that requires massive budgets and management efforts. There is a better way, one where the best quality is available for the lowest cost. This new way of purchasing roofing projects is available through Moisture Management’s RoofSMART procurement program.

For an overview of the RoofSMART program and our roofing metrics database for school corporations and how it can provide increased value, lower cost, and better accountability, contact Moisture Management today.