This is from an e-newsletter that I received from Ron Jones at the Green Builder. I asked his permission to re-print it here:
Ask any home buyer or homeowner how many leaks in their roof or spewing plumbing joints would be acceptable. What about gas leaks or faulty electrical circuits? How many doors or windows are allowed to be left out? How large a hole can the builder or remodeler leave in the ceiling, wall, or floor and still call the job complete and satisfactory?
Now, ask that same consumer how much of the energy and water that they pay good money to bring into their homes they are willing to waste every month because of poor design, obsolete products, shoddy workmanship, mediocre materials, and inefficient mechanical systems. (Never mind the fact that their lifestyle and habits will have just as large an impact on these resources—if not more—than the sum of the building quality.)
Most of the studies I have seen estimate that as much as 30% to 40% of the energy brought into American buildings, including residences, for space heating, air-conditioning, ventilation, water heating, and operating appliances is never put to its intended use. It is simply wasted. As for water, these waste estimates range from 15% to 35%, and even higher in some parts of the country.
Does anyone reading this newsletter believe the cost of traditionally produced energy is going to go down? Does anyone on a public water system anywhere in the country think they pay the true cost of sourcing, treating, and delivering a gallon of safe, potable water to the tap? Does anyone know of a city council, a county commission, or other government body that has the political will to charge the electorate the real cost of anything, fearing that people mostly vote their pocketbooks, when they can instead externalize portions of these costs and cloak them by a variety of means?
I am always amazed when I hear builders and remodelers say that their customers are not willing to pay extra for higher quality or performance or that they are only willing to spend more if an acceptable payback can be assured. Sorry, that simply does not fly with me. If this were true then there would only be one model of each product, the cheapest version possible. And somebody please tell me what the ROI is on a brand-new big-screen HD television. Sure, price matters but people don’t make purchasing decisions on price alone.
No, my experience across the 25 years that I delivered homes to my customers was that they invariably chose to buy the best product, component, or system that they could afford. Sure, there were trade-offs. It was regularly necessary to balance the level of performance or price point with the overall budget until an acceptable bottom line was reached. And often they looked to me for my advice on what parts of the project they should prioritize, not only for the sake of resale value, but to help them understand where they could economize with the least impact on their quality of life.
Today, homeowners and home buyers are beginning to look at the long-term ramifications of their selections. They are realizing that operational costs, replacement rates, maintenance expenses, reliability and durability—not just the initial purchase price—are all keys to their ability to afford any dwelling over the long haul.
They are also carefully factoring insurance costs, property taxes, and the soft costs associated with their chosen type of financing vehicle (especially in the case of adjustable rate mortgages) with a keener awareness that keeping the lights on, the appliances running, the water heater fired up and the living space comfortably conditioned all come at a price, month after month, and must be transparent in the calculation.
Industry groups and individual building professionals have got to abandon their outdated circle the wagons mentality when it comes to attempting to forestall regulations requiring higher levels of performance and put an end to the monotonous messaging of denial and fear that only tell part of the affordability story. Trade associations, like NAHB, are not speaking for all of their members when they lobby lawmakers to limit increases in performance regulations to no more than token increments.
Many builders, remodelers, and contractors are already delivering performance that well exceeds the embarrassingly low minimum requirements held forever sacred by the foot draggers. It is time that the achievers are represented and rewarded rather than continuing to protect and defend those who make up the lowest common denominator.
Any building professional who believes it is possible to succeed going forward on the basis of price alone, or that higher building performance will remain voluntary, is in for a rude awakening. At the end of the day, a level playing field, an understanding that the market paradigm has definitely shifted, and a genuine determination to deliver the best performance and highest quality product possible are the keys to successful building, satisfied customers, and a brighter future for everyone.
By Ron Jones, The Gatekeeper @ www.thegreenbuilder.com
