More from BuilderScrap helping the Small Business Contractor.  We’ve brought you a series on the pitfalls and benchmarks for starting your own business and how to make sure it’s profitable.  This week we are going to talk about poor cost accounting

Got the markup thing down cold? You may still be losing money because your estimates are out of date. The culprit is poor job-cost accounting — or maybe none at all. If you never compare an estimate with the actual cost to build the job, then you’re flying blind and probably making the same pricing mistakes over and over. Once again, labour is the biggest problem area, particularly for company owners who no longer bang nails. The longer they’ve been out of the field, the more they underestimate how long a project will take to build. But even production managers and lead carpenters who are on site all day often omit or underestimate down time — for example, time spent loading, unloading, and moving materials and equipment, or time spent assembling and disassembling staging. They may also underestimate time they themselves spend supervising subs. And almost every estimator forgets the golden rule: Work expands to fill available time. The crew that you estimated would need six hours to complete a task are going to be paid for a full eight-hour day, no matter what.  The solution is to require employees to fill out a time sheet every day, noting not only the number of hours they spend on each job, but also what they were doing. Then, when the job is done, compare labour hours and material invoices to your estimate. If there are big discrepancies, find out why before you make the same mistake in the next estimate. Be sure to check who actually performed the work. Sometimes the actual cost is out of whack with the estimate because a more expensive employee did the work. Keep in mind also that when you’re estimating, it’s easy to forget that delays create down time and that not all material orders are complete, undamaged, and 100% correct.

Salient advice.  Although you can serious cut costs by checking the free materials available on the http://builderscrap.com website.

Just a quick snippet of an article from 20 years ago.  The full article details the social responsibility of builders, architects and the clients living/working in the buildings and the possible legislative future.

Remember this was written in 1989. We’ve put these recommendations into practice…. haven’t we?

‘Rubbish collection and disposal have never been more than a minor engineering or aesthetic issue for builders. But the nation’s solid waste crisis and the resulting push for recycling has elevated the subject to a new status, raising questions about the designs and materials you use.

Legislative actions being considered now may affect your project planned for next year, and could result in extra expense or other unexpected hurdles, unless accommodated for. Foresightful developers will have to design buildings that are “recyclingfriendly,” and builders who aren’t already using recycled materials, will have to consider it’

By Jeffrey H. Mills (1989)
Recycling and the law.

The third part of the HowStuffWorks article we have been reading at the BuilderScrap office is all about even more ways to ‘go green’ in the construction industry.

Solar panels
Goi­ng solar is definitely pricey, but you can expect to spend a lot less than just a few decades ago — as much as 90 percent less, by some estimates (and some states offer tax incentives and rebates). Plus, many states now require utility companies to charge homeowners for only the energy they consume beyond their solar production. And some solar panels produce enough electricity to allow users to sell energy back to the utility company. The amount of time it takes to break even depends on a number of factors — like your household’s energy usage, the number of panels needed, the orientation of your home to the sun, and the amount of sun the panels get over time.

Recycled countertops
There are a myriad of choices for countertops for the modern kitchen — from granite to quartz to ceramic tile to laminate — but for those looking to build a green kitchen, recycled countertops offer an alternative to stripping stone from the earth. Countertops using recycled paper, glass and aluminum offer a variety of looks and price levels. Another alternative is a concrete countertop, which can be tinted and is popular for its durability.

Compact fluorescent bulbs
Compact fluorescent bulbs are getting plenty of attention these days as the light bulb of the future. But in fact, they’re not a new idea at all — they’re based on regular fluorescent bulbs, which cut energy costs during the 1970s oil crisis. Compact fluorescents are reshaped to fit most standard lamps, and some are even housed in traditional-looking bulb casings that are designed to counter the bluish tint that many people dislike about fluorescent lights. Compact fluorescents use a quarter of the electricit­y of incandescent bulbs and can last 10,000 hours (versus 800 to 1,000 for regular bulbs), which sounds great — until you get to the hardware store and discover that they can cost $5 to $10 per bulb. Home Energy magazine advises trying out a few fluorescents in prominent places, like the kitchen. If you’re OK with the lighting, you can convert slowly to avoid one big investment, or you can buy in bulk to lower the cost per bulb.

IMPACT OF SUSTAINABLE ENERGY AND CLIMATE CHANGE REGULATION…  A WARNING!

Here at BuilderScrap we think it’s possible, if not probable, that plant and equipment will need to be replaced even where it is not beyond economic repair, as a result of the new regulations. Service charge provisions in leases will not generally allow a landlord to recover the cost of works which amount to improvement. As with the Asbestos Regulations, it may be possible for the landlord to recover the cost of compliance through service charge provisions or the statutory compliance clauses.

In an FRI lease, the provisions will have an effect upon terminal dilapidation claims where plant and equipment must be replaced rather than repaired. There will be no obligation upon a tenant to fund the cost of replacement of any item that is not in disrepair and therefore serious concentration upon statutory compliance clauses and service charge clauses will be necessary.

The testing of equipment is bound to lead to conflicts over liability for failure in design and construction, leading to claims against Architects, Project Managers and Contractors. Standard warranties will need to be reviewed.

Reputation is all important. Investors have already announced they may boycott companies that fail to meet socially responsible standards in energy efficiency. Directors reporting duties are becoming increasingly focussed towards environmental issues. Companies providing services to the public sector are often already required as part of the tendering process to demonstrate carbon neutral status.

The Property Industry will not be able to ignore this particular bundle of red tape. In time, it will have an effect on the bottom line if it is not addressed seriously and quickly.

Why not try and source materials free of charge on our website http://builderscrap.com

As you know, BuilderScrap supports the reuse of surplus building supplies wherever possible, but we appreciate that sometimes you need to buy new products.  The second part of the Howstuffworks article is all about making greener choices when it comes to procuring construction materials.

Recycled materials
Recycled building materials can be postindustrial (industrial byproducts) or postconsumer (recycled wood, metal, concrete). You can find a recycled version of pretty much any building material.

Recycled fly-ash from industrial furnaces makes concrete high-strength. Concrete can also be pulverized and remixed with cement to make new concrete.
If you’re building a deck, you can use “wood” made from recycled bottles.
Steel is easily melted down and re-formed into new structural shapes.
Sneaker soles can be shredded to make athletic surfaces.
Even buildings that are imploded into a pile of rubble are recycled. Equipment, like large claws and shears, can crush and separate steel and concrete into separate piles for recycling.

Floors
Bamboo and cork floors are becoming popular choices because of their resemblance to traditional hardwood floors. The main problem with traditional hard woods — like pine, maple and oak — is that those forests take decades to regrow. Oak can take up to 120 years to fully mature [source: Treehugger]. But bamboo and cork are fast-growing: Bamboo (which is actually a grass) generally regenerates in about four to six years, and cork plants regrow in about nine years. Both get extra green points because their installation processes don’t require toxic adhesives and produce less air-polluting fumes. They’re also comparable in price to other wood floors, but there are more than a thousand varieties of bamboo and cork, so quality, color and price can vary widely. The Consumer Reports 2008 Buying Guide reported that bamboo and cork floors are susceptible to UV-ray discoloration, and some types require special cleaning products [source: Consumer Reports].

Other green flooring options include manufactured or engineered wood floors. These are actually veneers, made of layers of wood (often recycled) laminated together. They’re typically cheaper and easier to install than traditional hardwood floors, but they also aren’t as durable.

­Tankless water heaters
Tankless water heaters produce heat only when a hot water tap is turned on, so they don’t waste energy in “standby” mode. The water moves directly through the heater as it is needed — it isn’t stored in a tank. Tankless heaters can be electric or gas-powered (gas usually provides a higher water flow) and they come in various sizes. You can get one for the entire house or only for one appliance — the dishwasher, for example. They are more expensive than conventional water heaters, but considering that heating water accounts for 15 percent of the average home’s energy bills, you could recoup that cost sooner than later [source: Alliance to Save Energy].

­­Insulation
Consumer Reports says that heating and cooling costs comprise 45 percent of the average homeowner’s utility bills [source: ­Consumer Reports]. According to the government’s Energy Star site, extra insulation can cut those costs by 15 to 20 percent.
But installation of traditional fiberglass insulation requires a mask and gloves, which brings up a problem: If the fiberglass is so toxic that it can’t be inhaled or touched, why are we sealing ourselves into the house with it? Recycled denim and shredded newsprint are quickly becoming the hottest green alternatives for insulation. Traditional fiberglass insulation has been refined over the years, but recycled materials don’t contain as many chemicals (and they keep trash out of landfills). Recycled material is pricier, but it typically rates better than traditional fiberglass in insulation tests.

­In the next post we’ll find out about more possible green additions to your home.­

Here at the BuilderScrap office, we recently came across this interesting article on the How Stuff Works website about green building and sustainable construction.

Maybe Kermit the frog was wrong: It could be easy being green — at least when it comes to buildings.

“Green building” and “sustainable development” are the hottest terms in construction right now, but what do they mean, exactly? According to the USA Environmental Protection Agency Web site, green building is “the practice of creating healthier and more resource-efficient models of construction, renovation, operation, maintenanc­e and demolition” [source: EPA]. Proponents say that green building is not only environmentally friendly, but also healthier and more cost-efficient. So what is sustainable development? The United Nations Environment Program defines it as development that ensures our use of resources and the environment but doesn’t restrict their use by future generations.

For corporations, schools and hospitals, “green building” can entail anything from using waterless urinals to creating electricity. But homeowners who’d like to go green often don’t have the big bucks that businesses do. There’s a lot to consider, and the costs can make quite a difference in a home’s budget. Homeowners can save cash by installing new energy-efficient light bulbs, but how “green” is it and how much “green” can it save? And who says what’s green and what isn’t?

 In this article, we’ll give you some tips on making your home more environmentally friendly (maybe you can start by recycling your gray water), and we’ll learn about current legislation and how other countries are going green.

Watch out for the next part of this article – all about green building materials - coming soon

BuilderScrap has been talking this week to Flame TV, a company making a program about using builders surplus materials to help people ‘fix their home for free’.  Can youhelp?

FIX YOUR HOUSE FOR FREE

WE NEED YOUR HELP !!!! – “Fix Your House For Free” presented by Tommy Walsh and Liam Collins is an eco design and building project which is going to be aired on Discovery later this year for 10 consecutive weeks and has already garnered lots of publicity. It will head up the autumn schedule on prime time.

 This project is all about eco building – recycling and reclaiming goods – putting materials we throw out to good use by reusing them. We will be sourcing these materials from skips outside homes – with owners consent – and from salvage yards and we will be looking from anything and everything – rubble, tiles, concrete, wood flooring, panelling, cupboards, bricks, windows, metal, bathroom and kitchen units etc.  I have all environment agency licences in place to enable me to take materials from building sites and skips and reuse them.

 This is a zeitgeisty series – some projects we undertake may be helping people who have been affected by the current changes to the property market – so they want to enlarge or convert their house or build an office in the garden. As we are taking on five projects – anything from conservatories, garden offices, loft conversions, extensions etc we will be looking to source a large amount of materials – bricks, timber, glass, doors, windows, floorboards, plasterboard, tiles etc.

 If you feel any of your projects may have surplus materials we could use (sand and cement, bricks and timber we’ll need in abundance!) then please do let us know – we would film Tommy or Liam coming to the site and chatting with your representatives there, which would allow for your branding to get screen time.

If you do think this is something you may be able to help me with please do not hesitate to contact me.

 Hayden King

Producer/Director

FIX YOUR HOUSE FOR FREE

Flame TV

hayden@flametv.co.uk

0207 7136868

Of course, you can always add items to the BuilderScrap website where the producers will be keeping an eye out for suitable building products!

The tenth and final sustainability myth from Lemonick is:

Myth 10: Once you understand the concept, living sustainably is a breeze to figure out.
All too often, a choice that seems sustainable turns out on closer examination to be problematic. Probably the best current example is the rush to produce ethanol for fuel from corn. Corn is a renewable resource—you can harvest it and grow more, roughly indefinitely. So replacing gasoline with corn ethanol seems like a great idea. Until you do a thorough analysis, that is, and see how energy-intensive the cultivation and harvesting of corn and its conversion into ethanol really are.

One might get a bit more energy out of the ethanol than was sunk into making it, which could still make ethanol more sustainable than gasoline in principle, but that’s not the end of the problem. Diverting corn to make ethanol means less corn is left to feed livestock and people, which drives up the cost of food. That consequence leads to turning formerly fallow land—including, in some cases, rain forest in places such as Brazil—into farmland, which in turn releases lots of carbon dioxide into the atmosphere. Eventually, over many decades, the energy benefit from burning ethanol would make up for that forest loss. But by then, climate change would have progressed so far that it might not help.

You cannot really declare any practice “sustainable” until you have done a complete life-cycle analysis of its environmental costs. Even then, technology and public policy keep evolving, and that evolution can lead to unforeseen and unintended consequences. The admirable goal of living sustainably requires plenty of thought on an ongoing basis.

What do you think?  Let us know here at BuilderScrap