Roofing Contractors Industry Terminology

ACV (Actual Cash Value)

Insurance valuation that pays replacement cost minus depreciation, often used in property claims.

- The carrier is paying ACV, so the homeowner owes depreciation until work is completed. - Our estimate shows ACV at $18,200 after applying age-related depreciation. - Explain to the client that ACV is less than RCV unless depreciation is recovered.

APP (Atactic Polypropylene)

A plastic modifier used in modified bitumen membranes, typically torch-applied; stiffer and UV-resistant compared to SBS.

- The spec calls for an APP torch-down cap sheet over a smooth base. - APP performs well in hot climates due to better UV resistance. - Verify torch safety procedures before installing APP membranes.

Asphalt Shingle

A steep-slope roofing product made of asphalt-coated fiberglass mats; commonly 3-tab or architectural (laminate).

- We upgraded the bid from 3-tab to architectural shingles for curb appeal. - Follow the manufacturer’s nailing pattern for high-wind asphalt shingle zones. - The client selected a Class 4 impact-rated asphalt shingle for hail resistance.

Backlog

The total value of signed contracts not yet produced or installed; a measure of future revenue.

- Our service division’s backlog is eight weeks due to storm volume. - Converting proposals faster will help build our backlog for Q2. - The board reviews booked backlog monthly to plan staffing.

Ballasted System

A single-ply roof (e.g., EPDM) held in place by stone or paver ballast rather than full adhesion or mechanical fastening.

- The EPDM will be ballasted with river rock at 10–12 psf. - Verify structural capacity for ballasted systems on this deck. - Ballasted assemblies can complicate leak tracing and maintenance.

Bonding Capacity

A contractor’s surety-approved limit for performance and payment bonds, typically expressed as single-job and aggregate caps.

- Our single-job bonding capacity is $5M with a $10M aggregate. - Increasing working capital can raise bonding capacity. - The public bid requires a bond; confirm bonding capacity before bidding.

Built-Up Roofing (BUR)

A multi-ply roof system using layers of bitumen and reinforcing felts, often finished with gravel or a cap sheet.

- The spec calls for a four-ply BUR with flood coat and gravel. - We’re replacing wet BUR sections identified in the moisture survey. - BUR offers redundancy but can be heavier than single-plies.

Change Order

A formal modification to the contract scope, price, or schedule, typically requiring written approval by all parties.

- Submit a change order for the added curbs and deck repairs. - No work on extras until the change order is signed. - Weather delays triggered a time-only change order.

CLTV (Customer Lifetime Value)

The total profit a company expects to earn from a customer over the entire relationship.

- Service agreements increase CLTV by improving retention and cross-sell. - We can afford a higher CAC if CLTV is strong in maintenance. - Segment CLTV by channel (retail, insurance, property management).

Counterflashing

A protective flashing that overlaps base or step flashing, often set into a reglet or mortar joint to shed water.

- Grind a reglet and install new counterflashing on the brick chimney. - The spec calls for stainless steel counterflashing at the parapet. - Replace deteriorated counterflashing to stop the wall leak.

CRM (Customer Relationship Management)

Software and processes for managing leads, opportunities, customers, proposals, and service dispatch.

- Our CRM tracks canvassing leads through appointment and close. - Integrate the CRM with accounting for real-time job status. - Use the CRM pipeline to forecast monthly bookings.

Drip Edge

Metal edging installed at eaves and rakes to direct water away from fascia and protect the roof edge.

- The code requires drip edge at both eaves and rakes. - Install the ice and water shield under the drip edge at eaves. - Replace bent drip edge during the tear-off.

EBITDA

Earnings before interest, taxes, depreciation, and amortization; a proxy for operating performance and cash generation.

- Pricing discipline raised our EBITDA margin by 200 bps. - The buyer valued the firm at 5.5x trailing EBITDA. - Track overhead to protect EBITDA during slow seasons.

EPDM (Ethylene Propylene Diene Monomer)

A synthetic rubber single-ply membrane (often black) with taped seams; widely used on low-slope roofs.

- Mechanically attached EPDM with 6-inch taped seams is specified. - EPDM is preferred here due to chemical exposure from HVAC units. - Prime the seam area before applying EPDM tape.

Estimating Takeoff

The process of quantifying materials, labor, and equipment from plans or measurements to build an estimate.

- Use aerial takeoff for steep-slope squares and waste factors. - The commercial takeoff includes tapered insulation quantities by slope. - We verified field dimensions to reconcile the digital takeoff.

Fall Protection

Systems and practices that prevent or arrest falls, including guardrails, personal fall arrest systems, and hole covers.

- At 6 feet or more, OSHA requires fall protection on construction sites. - Anchor points and lifelines are part of our fall protection plan. - Use warning lines only with a safety monitor where permitted.

Fastener Back-Out

A condition where fasteners rise up from the substrate, often causing punctures, tenting, or leaks in membranes.

- We observed fastener back-out along the perimeter sheets. - Thermal cycling and substrate movement led to back-out. - Replace wet insulation and correct back-out with proper fastener length.

Flashing

Materials used to waterproof roof transitions and penetrations (e.g., step, base, counterflashing, curb, pipe boots).

- The leak was caused by failed step flashing at the dormer. - Install new curbs and flashing kits at the RTUs. - Detail the cricket flashing per NRCA guidelines.

FM Global Rating

Factory Mutual’s approval and wind uplift ratings for roof assemblies (e.g., FM 1-60, 1-90), often required by insurers.

- The spec requires an FM 1-90 perimeter and 1-60 field. - Submit FM-approved fastening patterns for review. - FM requirements influenced our choice of cover board and fasteners.

Fully Adhered

An attachment method where the membrane is bonded to the substrate with adhesives over the entire surface.

- We chose a fully adhered TPO to meet the wind zone. - Fully adhered systems reduce billowing compared to mechanical. - Verify adhesive coverage rate and open time in cold weather.

Gable

A roof shape with two sloping planes meeting at a ridge, creating a triangular wall section at each end.

- The gable ends need proper venting and flashing. - We’re replacing rake boards on the gable façade. - A gable roof at 8:12 requires harness use and toe boards.

GMP (Guaranteed Maximum Price)

A contract type that caps the owner’s cost at a maximum; savings may be shared, overruns beyond scope are on the contractor.

- We bid the reroof under a GMP with a 70/30 savings split. - Unforeseen deck rot was handled via a change order under the GMP. - The owner preferred GMP to limit exposure on the occupied facility.

Gross Margin

Revenue minus direct job costs (labor, materials, equipment), often expressed as a percentage of revenue.

- Our target gross margin on service is 55%. - Material price increases compressed gross margin last quarter. - Job costing weekly helps maintain margin discipline.

Hip

The external ridge formed where two sloping roof planes meet; often capped with hip shingles or ridge caps.

- Install matching hip and ridge caps per manufacturer. - Hips and valleys need additional underlayment support. - The hip boards showed rot and require replacement.

Ice and Water Shield

A self-adhered bituminous underlayment installed at eaves, valleys, and penetrations to protect against ice dams and wind-driven rain.

- Code requires ice and water shield two feet inside the warm wall. - Extend the membrane up sidewalls under the step flashing. - We upgraded to full-coverage ice and water shield on low slopes.

Infrared Moisture Scan

A thermal imaging survey that detects wet insulation or trapped moisture by temperature differentials, typically performed at night.

- The IR scan marked wet zones to include in the scope. - We scheduled the infrared scan after sunset for accuracy. - Use the scan to target core cuts for verification.

Lien Waiver

A document relinquishing a party’s right to file a mechanics lien upon receipt of payment; can be conditional/unconditional, partial/final.

- Submit a conditional progress lien waiver with the pay app. - We won’t release final waiver until the check clears. - The GC requires subcontractor lien waivers monthly.

Low-Slope Roof

Roofs with slopes typically ≤ 2:12, commonly using single-ply, modified bitumen, or BUR systems.

- Low-slope areas around the dormers will get TPO. - Low-slope roofs require positive drainage to avoid ponding. - Use walk pads on low-slope service routes.

Lump Sum Bid

A fixed-price bid covering the entire defined scope of work, as opposed to unit price or T&M.

- We submitted a lump sum bid including permits and disposal. - Clarify exclusions in your lump sum proposal to limit risk. - The owner preferred lump sum over cost-plus.

Mechanically Attached

An attachment method where the membrane is fastened with plates and screws, typically along seams or in the field.

- Use enhanced fastening at the perimeter and corners. - Mechanically attached TPO helps in colder installs versus full adhesion. - Verify pull-out tests to confirm fastener patterns.

Modified Bitumen (Mod-Bit)

Asphalt-based membranes enhanced with modifiers like SBS or APP; installed with torch, cold adhesive, or self-adhered.

- The roof is a two-ply SBS modified with a granulated cap. - We’ll use cold adhesive due to the no-torch policy. - Mod-bit offers good puncture resistance for foot traffic areas.

NDL Warranty (No Dollar Limit)

A manufacturer warranty agreeing to repair leaks due to covered defects without a monetary cap, subject to terms and maintenance.

- We registered a 20-year NDL with the manufacturer. - The NDL requires manufacturer inspection and approved details. - Ponding water may be excluded under the NDL terms.

OSHA 29 CFR 1926 Subpart M

U.S. construction standards for fall protection, including trigger heights, systems, training, and enforcement.

- Our fall plan complies with OSHA Subpart M’s 6-foot rule. - Toolbox talks cover Subpart M requirements weekly. - Guardrails, PFAS, and hole covers are specified by Subpart M.

Parapet

A low wall along the edge of a roof that requires proper coping, flashing, and counterflashing to prevent leaks.

- Replace the metal coping along the parapet. - Install tapered edge to direct water away from the parapet. - The parapet stucco needs repair before new flashing.

Pitch (Roof Slope)

The steepness of a roof, typically expressed as rise over 12 inches of run (e.g., 4:12).

- A 12:12 pitch requires additional safety measures and staging. - Low pitch areas may need self-adhered underlayment. - Calculate waste factors based on pitch and cut-up complexity.

Ponding Water

Water that remains on a roof surface beyond 48 hours after rainfall; can degrade membranes and invalidate warranties.

- Tapered insulation is needed to eliminate ponding at the low spots. - The manufacturer flagged ponding as a maintenance issue. - Add drains to resolve chronic ponding around the curbs.

PVC Roofing (Polyvinyl Chloride)

A thermoplastic single-ply membrane with heat-welded seams, known for chemical and grease resistance.

- The restaurant specified PVC due to grease exhaust. - Weld a PVC t-piece at the pipe cluster for strength. - Use compatible walkway pads on PVC roofs.

RCV (Replacement Cost Value)

Insurance valuation that pays the full cost to replace like kind and quality without depreciation (subject to policy terms).

- The claim pays RCV once the work is completed and invoiced. - Our supplement increased the RCV by adding code upgrades. - The homeowner will recover depreciation to reach RCV.

RFI (Request for Information)

A formal question submitted to clarify drawings, specs, or site conditions; used to resolve ambiguities before proceeding.

- Submit an RFI on the drainage detail at the scuppers. - The RFI response confirmed the cover board thickness. - We issued RFIs early to avoid mobilization delays.

RFP (Request for Proposal)

A document from an owner or GC inviting detailed proposals, often including scope, schedule, evaluation criteria, and contract terms.

- The university issued an RFP for campus reroofs. - Our RFP response included phasing and safety plans. - Clarify alternates and unit pricing per the RFP requirements.

Ridge Vent

A continuous ventilation product installed along the roof ridge to exhaust warm, moist air from the attic.

- Add ridge vent and balance with soffit intake. - Cut a slot at the ridge before installing the vent. - The ridge vent must be compatible with high-profile shingles.

Square (Roofing Unit)

A unit of measure equal to 100 square feet of roof area; used for estimating and ordering.

- The roof measures 32 squares plus 12% waste. - We ordered three extra squares for ridge and hips. - Price the job at $410 per square installed.

Step Flashing

Individual L-shaped flashing pieces installed with each shingle course along sidewalls to shed water onto the roof surface.

- Replace the step flashing at the dormer during the reroof. - Step flashing must be interlaced with each shingle course. - Add kick-out flashing at the bottom of the step flashing run.

Tapered Insulation

Insulation boards cut to slope, used to create positive drainage toward drains and scuppers on low-slope roofs.

- The tapered plan shows 1/4-inch per foot slope to drains. - Include sumps at drains within the tapered layout. - Tapered adds cost but eliminates chronic ponding.

Tear-Off

The removal of existing roofing materials down to the deck prior to installing a new system.

- Full tear-off is required due to multiple layers. - Coordinate extra dumpsters for the tear-off phase. - Tear-off revealed rotten decking that needs replacement.

TPO (Thermoplastic Polyolefin)

A white thermoplastic single-ply membrane with heat-welded seams, valued for reflectivity and energy efficiency.

- We’re installing 60-mil TPO fully adhered. - Calibrate the welder to achieve proper TPO seam peel strength. - TPO was chosen to meet the cool roof requirement.

Underlayment

A secondary water-shedding layer installed between the roof deck and the primary covering (felt or synthetic).

- We’re using synthetic underlayment for better tear resistance. - Apply self-adhered underlayment in valleys and at eaves. - Ensure underlayment laps match the pitch requirements.

Valley

The internal angle formed where two roof planes meet; a common water channel requiring proper flashing.

- Install ice and water shield in all valleys. - The spec calls for an open metal valley, not woven shingles. - Valley metal must extend beyond the cutline for coverage.

WIP (Work-in-Progress) Reporting

Job-by-job accounting that tracks contract value, costs, percent complete, earned revenue, and over/underbillings.

- The WIP shows Job 104 is underbilled by $72,000. - Accurate forecasting feeds reliable WIP reporting. - We review WIP monthly to manage cash and backlog health.

Xactimate

A line-item estimating software commonly used in insurance restoration to scope and price claims using standardized pricing databases.

- Our supplement was built in Xactimate with photo documentation. - Use Xactimate macros for steep charges and code upgrades. - The adjuster requested the Xactimate ESX file for review.