The Economy and Labor Rates, Spring 2011
You would think that the market downturn is producing deals of a lifetime for products and labor. When in fact, materials spiked late 2010 before dropping to mid year levels and since then have remained more or less steady. In regards to labor, we’re actually seeing costs trend back upwards. You’d think that supply & demand would dictate that less projects would create bidding wars which in turn would result in super low costs – and this was definitely the case a year or two ago. However, we’ve observed that cut-rate subcontractors & tradesmen, those that were willing to work for drastically reduced rates and in many cases, work at a loss, have simply disappeared from the market. This appears to have left a vacuum which has been quickly filled by well managed companies providing higher quality craftsmanship. So not only are labor rates a bit higher as a result of the higher level abilities, they’re also increased because the competition is less intense. On one hand we’re happy to see the pool of subcontractors at a collectively higher level of quality and capability, but on the other, we realize that the days of rock bottom pricing for superior work has passed.
Wildfire Mitigation and New Homes
Video below features Kevin Costenaro and one of our projects in Foothills above Golden.
A recent rash of wildfires have hit the foothills of Colorado, most notably the Indian Gulch Fire just outside of Golden, have reminded everyone of the importance of advance planning for potential wildfires. There are simple, common sense steps that we take during the construction of our homes in the various Foothills communities. The first is obtaining a Defensible Space permit from the local authorities, which simply states that we will follow certain minimum guidelines. Secondly, we bring in a licensed forestry expert – one generally pre-approved by the local Zoning Department – who helps us identify the different risk zones around the home. This person will also identify and mark which trees we must remove before completion of the home. We take things a step further by completely removing all combustible vegetation from around the home, which essentially forms a dirt perimeter of upwards of 25′. Over time, native grasses and other vegetation will return to this area but during construction we remove anything that begins growing. A couple other common sense things we do:
* Build with fire-resistant materials. We like to incorporate metal or tile roofs. Stucco & stone are common in our homes but any masonry facade would suffice. Hardiboard material for soffits and fascias are another good practice as this material is manufactured with cement and is truly fire resistant.
* Provide adequate access and turn-around space for large vehicles, particularly fire engines. We establish the driveway and access prior to constructing the home. We keep our address posted at all times, again, so fire crews can quickly identify our property in case of emergency.
* Keep all excess material – especially lumber – away from the home. We also manage the delivery of material to coincide with the pace of our crews so that at any given point, there is minimal lumber around the site.
* Keep all debris and trash away from the home. We set our rolloff dumpsters upwind and at least 50′ from the home under construction and immediately place any lumber cut-offs, trash and debris in it.
* We establish an old fashioned telephone line at each jobsite as cell coverage is spotty at best. This helps us to quickly report any danger to the proper authorities.
* Fire extinguishers are located throughout our jobsites.
For further information please contact us at 303-278-9292.
Xcel cuts Solar Panel subsidy
Interesting article from yesterday’s Denver Post
Could this signal the decline of the currently-robust solar PV industry? The current subsidies offer great value for property owners and we have enjoyed installing PV systems on many of our projects in recent years. We fear that without the subsidy, most folks will not be willing to cover the additional costs and in turn, demand for these systems will decline. Further, many of the smaller utility co-ops tend to follow Xcel’s lead in many areas including the subsidization of alternative energy systems and it’s not a stretch to assume they’ll follow suit.
Let’s all hope for the best and keep our fingers crossed that demand for alternative energy systems continues well in to the future.
For any questions on solar PV, solar thermal, wind power or geothermal please don’t hesitate to call us to discuss.
We can be reached at 303-570-9737
Another Fantastic Project Completed
We have just completed a wonderful home for another fantastic family. Overlooking Garden of the Gods State Park this home was designed by Palmer-Rajput Architects in the Classical Style of architecture not commonly found in Colorado. With marble flooring throughout it’s nearly 14,000 square feet, Corinthian capped columns, gold leafed ceiling domes, Swarovski crystal chandelier, glazed walls and hand carved marble fireplace surrounds, this home epitomizes luxury living.
Aside from luxury appointments, this project also includes a couple energy efficient details. Winter heat and summer cooling are provided exclusively by a closed loop geothermal system incorporating over a dozen 400′ deep drilled wells. This system also provides constant, on-demand hot water. Additionally, we installed solar photovoltaic panels on the roof to help offset the home’s electric demand. It’s a neat thing to actually see an electric meter spin backwards!
Our clients helped make this dream home come to life with tasteful selections and a fun-loving, positive approach to every aspect of the design and construction. We wish our new friends years of comfort and enjoyment in their new home!
Homestead Road progressing nicely
The fairly mild winter so far has allowed us to proceed through construction stage a bit faster than anticipated. Our only major challenge thus far has been the discovery of pockets of solid granite where our foundation was to be set, necessitating the need for explosives to remove which is always fun to watch. As of this writing, framing is complete and plumbers are working hard to install the radiant floor heating system today.
This home is being constructed for an out-of-town client who intends to make this their permanent residence once construction is completed later this year. With client currently living out of state, we cannot have regular on-site meetings to discuss items that typically arise during construction, and instead are relying on email, video, photos, sketches and internet to accurately communicate. We have past experience with building for clients living outside of Colorado – including one who lived in Europe- and believe simple communication is the number one key to success.
Hiring The Right Builder
No other product you purchase allows you to view its assembly in the manner a new home does. The process can take upwards of a year or more and the folks overseeing the assembly must be capable, competent, responsive and professional. Unfortunately we quite often see folks base their hiring decisions entirely on cost, often with disastrous results. In general, most builders charge roughly the same price – at least within a couple percent that is – which in the big picture is not a make-it or break-it expense.
We recommend first and foremost:
1. That your personality and that of your potential builder jive…you will be working together very, very closely over the course of a year or more, and nothing is worse than dealing with someone day in and day out whose company you do not enjoy.
2. Aside from personality, be sure to check up on your potential builder – call a couple past clients; check with the BBB and Secretary of State; ask tough questions about the financial health of the builder and his/her company; ask for copies of insurance policies; visit a current project under construction and check it out for tidiness.
3. Think about the ability to service any repair issues or warranties after you’ve moved in to your home – a builder’s ability to cover repairs can only happen if they are still in business & operating after your home is complete.
4. Ask about contract format – do they operate on a cost plus basis or on a fixed fee?
5. Are their subcontractor & vendor costs disclosed?
For more comprehensive information on hiring the right builder, please do not hesitate to contact us today to help answer your questions, and as always, you can expect a zero-pressure approach from us! We’re happy to answer questions with no obligations whatsoever