Archive for April, 2010

Making Room in Your Budget for Green

Monday, April 26th, 2010

 
By taking simple steps, like using optimized framing techniques and efficient mechanical duct runs, builders can offset the cost premium for going green.

Green home building and third-party certification have made significant gains in the residential construction industry over the last few years. In some locations, the green segment of the market has thrived while housing sales in general have slumped.

However, achieving green does not come without added costs. Regardless of the green-building rating system used, there are three categories of costs that come with building green: construction costs, verification costs and certification fees. These additional costs may deter builders from considering building a green-certified home. But there are ways to significantly reduce or eliminate additional construction costs — and even reduce typical construction and operational costs — by examining some key areas of the construction process, eliminating any potential labor and materials waste and increasing efficiency on site.

Through the NAHB Research Center’s National Green Building Certification Program, we’ve had an opportunity to hear from a number of builders and industry consultants about how they have gone green and saved money in the process. Here are some baseline considerations.

Know where you stand
How do the homes you build now stack up against the green rating system you plan to follow for certification? You may be closer than you think to achieving an entry-level green certification in your preferred program.

For certification using the NAHB National Green Building Standard, make the free online Green Scoring Tool your first stop. The tool will score your home against the four potential levels of certification (Bronze, Silver, Gold and Emerald) based on the practices you currently use, and will identify additional practices that will improve your project’s environmental performance. Many builders have found themselves within five or 10 points of Bronze, which could be achieved with a very low- or no-cost change in one or two products they were using.

Frame the issue

advertisement If you are currently using stick-built construction to frame your homes, you may want to consider using panels or trusses. These techniques are labor- and resource-efficient, resulting in less on-site waste and potentially lower labor and material costs. As a bonus, fabricated systems often create greater thermal efficiency over stick frames. Wall panelization also results in more precision in the construction process, which can make it easier to implement and control other construction changes, such as a transition from 2×4 to 2×6 construction. Many green rating systems, including the National Green Building Standard, also award points for use of panels and trusses, providing a win-win for your budget and green-certified projects.

If you choose to frame on site, there are several optimum value engineering techniques that can save on material and labor costs, while generating green points at the same time. Look into options such as:

•Ladder blocking — Uses less wood; makes more room for insulation; gets green points
•Two-stud corners — At least one less stud at each corner; allows for more fully insulated corner; gets green points
•Switch from 2×4 @ 16 inches on center to 2×6 @ 24 o.c. — May result in small cost increase initially, but gets a lot of green bang for your buck
Another simple method for cutting costs is to develop a cut list — a set of cutting instructions and guidelines for your field crew that ensures the material you purchased for a particular application is used for the intended purpose. For example, a job might require two 8-foot-long, 2×10-inch headers and the purchasing manager was able to save some money by ordering one 16-foot-long, 2×10-inch piece of lumber that could be cut in half and used without any waste. Without a cut list, the field crew will likely pick up the first 2×10 material they see — maybe two 12-foot-long 2×10s — and cut it to fit the immediate need, which, in this case, would result in 4 feet cut off each piece and thrown away as waste.

Don’t let your ducts run amok
Optimizing duct runs and centrally locating the mechanical room can result in material cost savings and increased energy efficiency. Be sure not to have more ducts or longer duct runs than are needed in any part of the house. In addition, make sure that your HVAC contractor is using Manual J or D calculations to design the most efficient placement of ducts.

Using a central return also reduces material costs and, in combination with transfer grilles in spaces like bedrooms where doors may be frequently closed, is a simple system that can provide adequate circulation and cost savings to both you and your buyer.

Placing all HVAC equipment, including ducts, in conditioned space within the home is also a smart move. In addition to creating significant energy savings and earning green points, this practice may also allow you to spec smaller, less-expensive HVAC equipment and limit or eliminate the need for additional insulation for the duct system.

Bigger is not always better
If you are already building energy-efficient homes or plan to increase the energy efficiency of your plans as you embark on green construction, don’t be surprised if the HVAC equipment you are currently using is larger and more costly than you need. A tighter, more efficient building envelope significantly reduces the HVAC burden for the home, as less conditioned air is leaking out and less unwanted unconditioned air from outside is leaking in.

Water pipes everywhere
When designing the plumbing system, look for efficiencies in both labor and material. Consider employing a stacked approach, where rooms that require plumbing runs are aligned so that less piping is required. In addition, consider PEX piping over more traditional materials. While PEX comes with a slight first-cost premium, it does not require pipe cuts or joints, reducing material and labor costs. Finally, consider centrally locating your water heater to reduce the length of piping runs.

Quality assurance is key
In many respects, a green certification program can also help boost the overall quality of the homes you build, and the residual customer satisfaction. Regardless of the material or design, having an explicit underlying quality assurance plan in place is always going to be a cost-saver. Quality assurance takes a holistic look at practices throughout your business and helps you determine where there are inefficiencies and how you can remedy them.

Consider the cost of a callback. How much does it really cost your company to call a tradesperson back to a jobsite to repair or replace something? Couldn’t you or your superintendent be doing something that would generate revenue, rather than attending to callbacks? And what about getting a red tag from a building inspector? Doesn’t that waste valuable time and money for your company? Wouldn’t it save you precious resources to eliminate callbacks and red tags altogether by making sure things are done right the first time, every time?

While there are numerous ways to increase the quality assurance quotient on your jobsites, one prime area to focus on is the scheduling of trades and creating job-ready conditions for each crew that comes to the site. If the work of each trade crew is not done correctly and in the right order, it results in numerous dry runs and re-dos — all of which correlate to real costs. Sit down with your trade crew supervisors to determine what needs to be done, and with what precision/tolerance, before their crew can completely do its job. Then be sure to write what constitutes a complete job, ready to turn over to the next crew, in the scope of work you create for each trade group. These simple steps can shave days off the production schedule.

Home buyer credits expire in two weeks

Tuesday, April 20th, 2010

Apr. 15–Statesville Realtors are expecting to stay fairly busy for the next two weeks compiling home sales contracts to meet the deadline for the Federal Homebuyers tax credits.

At midnight on April 30, buyers interested in the receiving the first-time homebuyers tax credit and the repeat homebuyers tax credit will have to have a home under contract and close on that home by June 30.

Nearly 56,000 North Carolina taxpayers have collected $400 million in first-time homebuyer credits, according to a press release from the Internal Revenue Service. The first-time homebuyer tax credit gives eligible recipients up to $8,000, and repeat homebuyers are eligible for $6,500.

Nationally, nearly 1.8 million Americans filed returns to collect $12.6 billion in tax credits for homes that they purchased in 2008 and 2009 through mid-February.

Realtors said the tax credits have helped boost home sales. The contract deadline falls in the spring home shopping season, when a lot of homes are traditionally put under contract anyway.

“You’ve still got plenty of time,” said Exit Realty Broker-in-Charge Kim Privette. “As long as your contract is signed, you are good.”

Exit Realty, like other agencies around Statesville, is seeing an increase in contracts and upcoming closings.

ReMax Properties Plus Broker Barry Sechrist said his firm will be busy in the next couple of weeks. Sechrist said he’s written up two contracts already this week.

“We are definitely seeing some people taking advantage of the tax credit,” said Coldwell Banker United Realtor Broker-in-Charge Edwin Hunter.

Hunter said sales are up 24 to 25 percent right now.

Privette said some properties that were on the market for a year or more are getting two or more offers.

Not all of the buyers in the real estate market are eligible to receive the tax credit, she said.

“I don’t think this tax credit is stimulating the market as much as they hope,” Privette said. “People are scared to buy houses if they are not sure if they have a job or not.”

Hunter said part of the problem is people need the money immediately for down payments.

“It’s definitely helped some people,” Hunter said. “It’s helped the economy.”

Hunter said the influx of supply on the market has driven the price of houses downward.

“The number of foreclosures coming onto the market, the lenders are wanting out of their inventory and they are marking down the houses considerably,” he said. “That’s not encouraging me to put my house on the market. I’m not only facing my normal competition, but I’m also facing the competition of foreclosure.”

Hunter said if he tried to sell his house today, it would go for a couple thousand dollars less than it would have a few years ago.

By Bethany Fuller, Statesville Record and Landmark, N.C.

To see more of the Statesville Record & Landmark or to subscribe to the newspaper, go to http://www.statesville.com.

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March Housing Starts 20 Percent Above 2009 Figures

Sunday, April 18th, 2010

Privately-owned housing starts in March were at a seasonally adjusted annual rate of 626,000, 1.6 percent above the revised February estimate of 616,000 and is 20.2 percent above the March 2009 rate of 521,000, according to data just released from the U.S. Census Bureau and the Department of Housing and Urban Development. 

Single-family housing starts in March were at a rate of 531,000; this is 0.9 percent below the revised February figure of 536,000.  The March rate for units in buildings with five units or more was 88,000.

Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 685,000.  This is 7.5 percent above the revised February rate of 637,000 and is 34.1 percent above the March 2009 estimate of 511,000.

Single-family authorizations in March were at a rate of 543,000; this is 5.6 percent above the revised February figure of 514,000.  Authorizations of units in buildings with five units or more were at a rate of 120,000 in March.

Privately-owned housing completions in March were at a seasonally adjusted annual rate of 656,000.  This is 3.1 percent below the revised February estimate of 677,000 and is 21.2 percent below the March 2009 rate of 833,000.

Single-family housing completions in March were at a rate of 486,000; this is 5.9 percent above the revised February rate of 459,000.  The March rate for units in buildings with five units or more was 161,000.

above the revised February estimate

above the revised February estimate

Matt Phair, HousingZone Contributing Editor

http://www.housingzone.com/article/CA6726515.html?nid=&rid

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