January 7, 1997
To: Custom Seal Inc./Custom Seal Contractors
Subject: Research Project Objectives/Contractor Requirements
Objective of Research Program
Implement Performance Based Information System in Custom Seal's
operations. The research program includes the following components:
- All contractors installing Custom Seal's material will submit
performance information on previous customers. There are three
levels of performance.
- All roofing projects using Custom Seal's material will have
its performance monitored by PBSRG as well as by Custom Seal.
- Using the performance information of performing contractors
and the Custom Seal material to differentiate Custom Seal and
its performing contractors from other roofing manufacturers and
contractors.
Levels of Performance
- Level 1 - High Performance Contractor has installed more
than two jobs, a minimum of 250,00 sq.ft. of Custom Seal Materials,
maintains an average rating of 9.5 or above, minimum 2-day response
time, and has no existing leaks.
- Level 2 - Performing Contractors has installed more than
two jobs, a minimum of 100,00 sq.ft. of Custom Seal Materials,
maintains an average rating of 8.5 to 9.4, minimum 2-day response
time, and has no existing leaks.
- Level 3 - Certified Contractors has installed a minimum
of 50,00 sq.ft. of Custom Seal Materials, maintains an average
rating of 8.0 to 8.4, minimum 2-day response time, and has no
existing leaks.
Based on the type of performance information listed above, the
PBSRG will collect performance information on the contractor's previous
applications. The following information will be collected:
- Customer satisfaction.
- Roof satisfaction.
- Percent of roofs that have leaked
- Percent of roofs that still leak.
Verification of Custom Seal Applicators
Once a contractor installs a Custom Seal roof (at any level of
performance), the roof data and is sent to Custom Seal. Custom Seal
then sends to PBSRG. PBSRG sends out the customer satisfaction surveys
to the owners. Once the owner has responded, the results are composed
into individual contractor performance lines.
If there is an existing roof leak or the customer is dissatisfied,
it is the performing contractor's responsibility to resolve the
problem. However, if the problem is not a material problem. If or
a contractor cannot fix the leak (resolve the problem) the contractor
will no longer be an approved applicator.
The performance of roofs over 2,500 sq. ft. installed by contractors
at all levels of performance will be verified once a year by PBSRG.
The results and a copy of the customer satisfaction survey are listed
in the performance report section.
Custom Seal Warranty and Performance Incentives
Contractors performing at higher levels reduce the risk of premature
failure. Custom Seal's performance program which include Custom
Seal accepting "reduced risk" of performers, educating
facility owners of performance concepts, and the research and development
of new techniques and systems will be based on the performance levels
of the contractors. Contractors performing at Level 1 and 2 will
also have their performance published in PBSRG's annual Performance
Based Roofing book.
Contractor Submittals to Custom Seal
Prospective customers will submit current customer lists to PBSRG.
Dr. Kashiwagi will sign a nondisclosure agreement with the contractor.
The contractor will also submit a description of the "similar"
system to Custom Seal. Custom Seal will approve the "similar"
system. The performance report will then be forwarded to the contractor
and Custom Seal. The contractor will have an opportunity to eliminate
any problems (if any) after the performance report is issued. The
customer lists shall be submitted on diskette. The minimum information
required on the list is as follows:
- Job or customer name
- Job size (square feet).
- Installation date
- Phone number and fax number
The performance report will list the following:
- Number and percentage of roofs that currently leak.
- Number and percentage of roofs that leaked and were fixed.
- Number and percentage of roofs that never leaked.
- Amount of traffic on the roof.
- Customer satisfaction.
- Roof satisfaction.
Custom Seal and PBSRG Research Responsibilities
Custom Seal has agreed to participate in this PBSRG research program.
The concepts of performance are still untried and incomplete. Custom
Seal has agreed to implement the Performance Concepts of Dr. Kashiwagi
for the next two years. After two years, the results of the research
program will be reviewed, and Custom Seal can decide if they want
to permanently use the results of the research program. The research
program will be documented, analyzed, and the results given to Custom
Seal. Dr. Kashiwagi has signed a letter of nondisclosure with Custom
Seal, and the result of the research is proprietary to Custom Seal.
| DEAN T. KASHIWAGI |
STEVE MAYLE |
| Director |
President, Custom Seal Inc. |