The bright side to that dilemma is that designers and manufacturers are constantly working to bring down costs—to make green an easier sell and a lighter load for the average client’s pocketbook. Out of that ilk comes K-tect Sustainable Building Systems, an all-around green building gem judging by the bullet list of benefits on the website.

The biggest benefit for homeowners and the environment is that K-tect walls use less material than a conventional wall system and contain no thermal bridges. The walls are built to high efficiency in a factory and delivered to the site, where they can be erected and connected using manpower alone.

Construction costs are reduced in a number of ways, including:

• Air conditioning and heating capacity reduced
• Faster and easier installation—no cranes, forklifts or chainsaws necessary
• Reduced installation and framing labor
• No need for wall insulation contractor
• No on-site construction waste
• Reduction in weather-related delays

And the whole process is fast. According to K-tect, an example 4100-square-foot residence built with 10-, 12-, and 16-foot K-tect Wall Systems went from slab to roof trusses in only 2.5 days—with a four-man crew.

K-tect also boasts that their systems result in fewer callbacks and less warranty work for you, the contractor. “Factory quality control” ensures straight and square walls, as well as no warping, splitting or twisting of studs. The walls are comprised of light gauge metal studs with integrated insulation that purportedly eliminates thermal bridging.

As far as green building goes, K-tect wall systems meet or exceed all building codes, as well as all green building standards. So in the end, a job gets done quicker, easier, requires less manpower and is cheaper for the homeowner and more profitable for the builder.

K-tect Building Systems are GREENGUARD certified for homes, children and schools.

K-tect homes may contribute between 15 and 72 points toward LEED-H certification, depending on the size and design of the home.

Starting on April 22nd of this year, any remodeling project in a space larger than 6 interior square feet or 20 exterior square feet completed in a home or school that was built before 1978 requires that all workers be trained in how to safely handle lead paint.  This will extend to window replacement projects as well.  The cost of not following these regulations is a hefty one, to say the least.  One infraction will cost $32,000.

In order to get certified, all workers must complete a course that costs approximately $500 to $600 per head.  Smaller companies, unfortunately, may not be able to handle the cost of certification for all employees.

As the costs trickle down to homeowners, there is also a possibility that DIY projects will spike, meaning less business for those trained in the field.  Fortunately, however, workers who have been experiencing the ill effects of lead-based paint should find some relief.

For now, contractors across the board will just have to wait and see how it will affect their bottom line.  Hopefully the outcome won’t be as grim as the predictions.

Certified-aging-in-place (CAPS) contracting could be a key to remodeling success in the years to come. As the US population grows older, more homeowners are looking to age in place, which often entails transforming their home into a practical place to live as health issues and mobility begin to play a role in their daily lives.

Such steps include wider, wheelchair-accessible pocket doors, better lighting, reduction of tripping hazards, elevator installation, shower grab bars and tub cuts. Renovations such as these can mean the difference between a later life lived at home or one in a nursing home. That, for many of us, is a powerful incentive, accentuated by the fact that the average home itself is aging and in need of repairs anyway.

The Certified Aging-in-Place Specialist (CAPS) designation can be achieved through a three-day training course offered by the National Association of Home Builders, in conjunction with AARP. Some 3,000 home remodeling and repair contractors have been certified thus far. That’s a relatively small number compared to the fast-growing number of senior citizens in America.

The scope of CAPS remodeling is wide, affecting nearly every aspect of home re-design, from rocker light switches to low-pile carpeting. Even patterned flooring can become a problem for those with poor vision. Understanding the many ways aging-in-place remodeling can benefit the homeowner, as well as how to broach the subject in a respectful way, could be your ticket to an increased work load. Not to mention a work that helps people live out their life in the most comfortable and familiar way they can.

To learn more about becoming a CAPS contractor, see the NAHB website. The included courses teach the technical, business management and customer service skills to succeed in the aging-in-place sector. In the United States and most other developed countries, a growing percentage of the population is reaching seniority, while the younger population is shrinking. Furthermore, most homes in the US are 30 years or older. It’s a tandem that’s creating quite a market for knowledgeable CAPS professionals.

Photo Credit: Chuck Miller

In desert-like conditions, contractors are looking to small remodels to stay afloat. There’s little speculation in the building industry, but there are aging homes, low-cost materials and energy efficiency incentives, which are a ray of light in a trade otherwise rife with downsizing and bankruptcy protection.

A recent article in The Tennessean tells the story of Capitol Homes. The construction company was booming with everybody else for much of the last decade, building 850 homes in eight years, including a high-profile showcase on ABC’s Extreme Makeover: Home Edition. Now, things have changed. Owner David Luecke filed for bankruptcy protection and downsized his business to become a home remodeler. Where once Capitol Homes was banging out new home after new home, they are now refinishing basements.

I can relate to some extent. In 2007, when the boom started to wane, I was working with a friend and contractor in Grants Pass, Oregon, a town that soared and fell with the housing boom and bust as much as any town in America. In the span of a few months, his work portfolio changed from 90% new construction to 90% home remodeling, and the mentality of making big bucks turned to that of survival. It started with additions but soon came to include fencing, decks and other small projects. Occasionally, and thankfully, he fit in a new home here and there.

The point is that in times of tight belts and thin wallets, a remodel can be the difference between company malady and company maintenance. And while that may seem a dire choice given the successes of a few years ago, remodeling offers a unique opportunity that can carry a contractor until the housing market stabilizes. Remodeling is your potential lifeboat for a few simple reasons.

Cost of Materials is Low

There is a need for homeowners to remodel, and despite fears about money, a sharp drop in material costs is enough to overcome them. The cost of framing lumber has dropped 30% in the last four years to $254 per 1,000 feet. Granite countertops are now only 15% more expensive than Formica. Moving from building $1 million homes to less than $10,000 remodels is a big step down, there’s no denying that, but without fallen material costs, there might be no work at all.

Energy Efficiency

Another reason also stems from money. But this time, it’s about spending money now to save money (and the environment) later. Government incentives to encourage energy upgrades offer money back in the short-term, and heating, cooling and electricity over the long run are improving ROIs for homeowners and providing jobs for contractors.

Education is playing a key role in energy efficient remodeling. Homeowners are more aware of the environmental and financial consequences of their remodel. They know more and want to know even more yet about material life cycles, clean energy, passive solar design, recycled products and eco-friendly remodeling options. As a contractor vying for survival in the remodeling market, knowledge of green building can be a huge asset. New construction, when it recovers, will certainly come out of its slump with a greener tint, but for now it’s with remodels – basements, bathrooms, kitchens, windows and insulation – that contractors are maintaining some water flow in an otherwise dried-up desert.

As a contractor, obtaining some level of green certification could make all the difference in a recession-weary building industry. Demand is way up for green building; spurred by government incentives, efficient materials and appliances, as well as increased awareness of long-term savings and environmental impact.

Understanding those factors and all the products and practices that go along with green building is key to winning today’s clients’ trust and signature. Proving that you have such knowledge and expertise only makes lead generation and confirmation that much easier. There are several ways to become a green certified contractor; some are nationally recognized, some vary by state or region.

Following are a few examples of how you can become a green certified professional:

LEED certification

The U.S. Green Building Council’s LEED program has become the number one standard for modern, green home design. Typically, LEED is referred to as a ratings system for sustainable buildings. At the same time, the USGBC also offers accreditation for contractors.

There are three levels of certification: LEED Green Associate, LEED AP and LEED Fellow. For a fee, and with some proof of previous work on a LEED project, you can take an exam, pass it, and become a registered green professional recognized by the most reputable green building organization in the country. For more info, see the USGBC website.

Green Advantage (GA)

Green Advantage provides training and certification for aspiring green building professionals. They do so on three levels: commercial, residential, and commercial-residential. Tests cover six topics, including basic understanding of green building, site and land use, water, energy and atmosphere, materials and indoor environmental quality. The exam costs $175 and includes three years-worth of certification. Learn more about Green Advantage.

National Association of Home Builders

NAHB Green is a program that focuses on green building education, resources and, of course, certification for green professionals. Their CGP program, offered through the NAHB’s University of Housing, requires 24 hours of approved training and education every three years. Courses are offered at NAHB national events and CGP designation is only available to individuals.

Build It Green

Build It Green is an example of a statewide certification program – in this case, California. Build It Green offers training, workshops and certification for contractors in the state. Training varies from the basics of green building to green remodeling and retrofitting. Build It Green also has its own LEED-like ratings systems for homes in California.

Training and certification through Build It Green costs $400 for members and $450 for non-members. Certification is good for two years before re-certification (at just $50) is required.

While LEED is currently the industry standard in green building ratings (and often the status required for many states’ green building tax credits), expect more states or statewide organizations to develop their own standards. Florida is one example.

LEED-certified buildings already represent six percent of the commercial building industry and over 40 percent of new buildings have applied for certification. Expect green building in the residential sector to see similar growth in the near future. The USGBC now has a ratings system for single-family homes, and resulting data should be forthcoming next year.

Even more important will be the push at the federal level to incentivize home efficiency upgrades. Tax credits, low interest loans and other factors will fuel the sustainable housing fire in the coming years.

For a remodeling contractor in a very competitive market, that could mean a shift in direction, a change in the questions you hear from homeowners, and perhaps even some new education (USGBC offers classes, webinars and LEED certification for aspiring green builders). A vital key to success in cementing leads and getting contracts signed will be knowledge of green building practices, materials, and trends.

Even now, when times are tight and wallets tighter, off-hand knowledge of the pricing and price differences between conventional products and newer eco-friendly rivals could make all the difference for you, the contractor. And perhaps even more unusual for many remodelers will be the need to understand the policy and politics that drive green building. Homeowners themselves are more educated these days and are likely to at least have a general understanding or awareness of federal tax incentives – can you explain the intricacies to them?

The easiest way to look at the benefits of becoming a “green” remodeling contractor (and soon) is simply to put it in conventional terms. Historically, the calling cards of a quality contractor have been experience, knowledge, communication, and of course, quality work. In the inevitable green age of home building and design, those four characteristics will take on slightly new definitions. All the old qualities must be present, but with the added green aura. And the sooner you’re educated about working with green materials, the further ahead of the pack you’ll be when the majority see the light.

For those new to the QR survey, it’s meant to gauge customer satisfaction on a large scale and identify those specific traits & practices of the remodelers who garner the highest satisfaction ratings. The survey accomplishes this by asking how satisfied, in general, remodeling customers were and then breaking it down to more specific topics, such as professionalism, availability, scheduling, etc.

By the way, most remodeling contractors get a passing rating from their customers; about a 6.5 out of 10. It’s not great, but its not bad either. The key is identifying what set the high scores apart from the low scores.

Availability and Communication

The two go hand-in-hand. A contractor who is on the job most of the time will be available for questions and answers, thus increasing communication levels. And it was communication that seemed to dominate the remodeling survey. The largest disparity between overall satisfaction ratings came in these categories.

Photo Credit: Qualified Remodeler

Customers who found their contractor there, on the job, when they needed him gave considerably higher ratings than those who listed that their contractor was often absent from the job or hard to get hold of.

While other factors are important, the consistency of numbers regarding communication were telling. With dominant regularity, those contractors scoring high in attentiveness, communicative ability, and presence on the job scored high overall, and were more likely to be hired again or referred to a customer’s friend.

See the full summary of the survey at Qualified Remodeler.

Photo Credit: Blogging Jupino

The housing market has somewhat leveled off in 2009, even posting a few months of modest increases. Yet any prediction of a significant rise seems hardly in the cards at this point.  Although positive change may come up in those cards eventually. Certainly it will be some time before we can see if new tax credits for home buyers and energy efficient upgrades, among other things, have some influence on the numbers. But as of yet, the industry still moves ahead cautiously.

The remodeling industry, however, tends to garner a more uplifting forecast, although a full recovery to the highs of the past decade have essentially been thrown off the table. Still, The Remodeling Market in Transition, a new report by the Joint Center for Housing Studies (JCHS) of Harvard University, foresees opportunity in the remodeling market; following a significant “correction” in the industry.

The Harvard study points to several reasons why they expect a bright future for remodeling. Among them:

• Energy efficiency will be reason number one why homeowners choose to remodel and upgrade their home’s infrastructure. In addition to tax incentives, more homeowners are noting the long term savings involved in energy efficient upgrades.
• Foreclosed homes may become an unexpected ally to remodelers. As the housing market slowly recovers, these foreclosed homes will provide opportunities for remodeling as banks and new owners renovate and repair.
• Renting is on the rise as homeownership declines. The number of renters is up 3 million and, considering the large number of under-maintained rental properties, that could open up a sizable and long overlooked sector of the remodeling industry.

Photo Credit: Bloomberg.com

So even though remodeling and housing are inextricably linked in a fundamental way, it would appear that as the market recovers, remodelers will get the first opportunities to get back to work. But if there is a lesson in these and other predictions, it is that contractors who understand energy efficient upgrades will have a noted advantage over the competition.

Green design, green materials, green building practices. These are the likely future of remodeling and the housing industry by and large. Indeed, it looks like a green future for remodelers.

In the chaos and hysteria that followed the bubble-burst last fall, there was a good deal of panic and a lot of shoulda-woulda-coulda talk. Well there’s no preventing what has already happened. We can, however, begin to do something about, as well as make absolutely sure that we learn from past mistakes. The building industry has a proven cyclical nature; a nature that many builders failed to recognize during the lucrative boom that preceded the equally destructive fall.

In order to help builders avoid another crash, or at least find a way to weather the next drop (assuming an impending rise), Builder Online has compiled a list of lessons for builders to take away from the current recession. Designed to illustrate some rare recession successes and prepare for a smarter boom the next time around, the six lessons are summarized below:

1. Build Smarter. Think energy efficiency, renewable energy, and smaller, lower maintenance homes. These will be key attributes of the recession-era home for the eco-conscious consumer and a government likewise determined.
2. Limit Land Holdings. Some builders were buying up every site in sight during the boom, many of whom have been left holding their hats. On the next go round builders should be thinking twice about purchasing land before its true value is known.
3. Find New Cash Streams. Banks have folded their arms and zipped their books shut in the wake of mass failures. Therefore credit is rather hard to come by these days, so some builders have been searching outside the banking arena, even overseas, or signing deals to finish projects acquired by lenders via foreclosures.
4. Respond Quicker to Market Conditions. The general excuse for recession-weary builders is that they were caught completely by surprise when the housing bubble went bust. Some builders recognized the coming storm early and began downsizing. Others are reacting with inventive programs such as mortgage protection and new marketing schemes, or reenlisting the age old tactic of keeping in close contact with former clients.
5. Value Workers and Trades. Layoffs have been rampant, and those employees remain with builders have had to take on a wider number of tasks and learn new skills in the process. Hence the value of cross-training employees, as well as appreciating subcontractors and suppliers to a much higher extent.
6. Diversify. Some builders get stuck in the stigma of single-family, new home construction during a time when new homes aren’t being built. Those builders who have diversified into multi-family and commercial building, including remodeling, are generally doing better during these hard times.

For the complete article, including more detailed explanations for each of the above lessons, check out 6 Lessons for Builders from the Housing Bust.

Many homeowners who received remodeling bids a year ago are finding that the same project today would cost thousands less.

Take for example Michael Perkocha and Tina Stott from Oakland, who just purchased a bungalow for $630,000. Last year they were getting quotes in the $250,000 range and decided to postpone remodeling because they couldn’t afford it. This January they got quotes ranging from $102,000 to $170,000 and ended up going with a contractor whose bid was $129,000. That’s a $121,000 savings!

Such deep discounts allowed them to upgrade their flooring from laminate to oak and upgrade their countertops from Formica to granite. They’re also able to add crown moldings and energy efficient windows.

Besides saving a huge chunk of money, the work is almost complete at three months, opposed to the six months they had figured on, and they’re under budget. These are huge marketing points for contractors: big savings, ahead of schedule, and under budget.

At the beginning of the year, Jack Schocker decided it was time to remodel his vacation condo in Sarasota Florida. He got estimates for replacing a couple cabinets in the kitchen that were damaged by water from the condo next door. After talking with one of the contractors he realized that for less than $30,000, he could completely redo the kitchen and remodel two bathrooms. He and his wife were going to redo everything anyway in a few years down the road. So, even though they hadn’t planned on a total redo so soon, with prices so low they decided to take advantage of the times and do the big remodel.

The word is getting around and making homeowners think, labor costs are down by 10 to 20 percent, prices for materials like lumber, steel, and copper are down, contractors are readily available, and the job gets done faster…hmm, maybe remodeling now would be a smart investment.

Homeowners who are remodeling this year are able to spend less, get a higher level of quality, and enjoy their new remodel much more quickly, and this is what contractors need to get across to homeowners. If you’re bidding a small job like Jack Schoker’s replacement cabinets in Sarasota, it pays off to mention that you can completely redo their kitchen at XYZ dollars.

Resource:

http://www.nytimes.com/2009/04/23/garden/23renovation.html?pagewanted=3&_r=4&emc=eta1