The National Green Building Standard is the first residential green building rating system to undergo the full consensus process and receive American National Standards Institute approval. The four threshold levels - Bronze, Silver, Gold, and Emerald - allow builders to achieve entry-level green building, or the highest level of sustainable "green" building incorporating energy savings of 60% or more. Single-family & multi-unit homes, residential remodeling projects, and site developments are all covered in the Standard.
Dual Certification: National Green Building Standard with Builders Challenge
Published in 2005, the NAHB Model Green Home Building Guidelines were written to serve as a voluntary "baseline" so that NAHB members could easily develop local green building programs. Focusing on new single-family homes, the Guidelines offer three levels of green building - Bronze, Silver, and Gold.
Green Home Building Rating Systems - A Sample Comparison
Green Home Building Rating Systems - A Sample Comparison (PDF) evaluates the costs and technical requirements of bringing two sample code-compliant production houses in different climate zones (Dallas & Washington, DC) into compliance at one point in time (January 2008) with three different green building rating systems: NAHB Model Green Home Building Guidelines, the National Green Building Standard version 2, and LEED for Homes.
Download the Land Development Certification to the National Green Building Standard Excel file to start scoring and verifying your green land development or subdivision projects.
The Green Scoring Tool currently does not have the capability to score and store green land development projects. However, you may download a Microsoft Excel file and follow the directions provided to manually score a green land development project. If certification is desired, submit the completed Excel file to an approved verifier.
Developers may have a new or existing development certified as a whole or in phases. Developers may also get a Letter of Approval after a Design Review but before development work is started.
The letter of approval will indicate that the development is eligible to be certified if constructed in accordance with the approved plan.
Step 1
Obtain a copy of the ANSI ICC 700-2008 National Green Building Standard at www.builderbooks.com.
Step 2
Download the Land Development Certification to the National Green Building Standard Excel file. Use the "Scoring & Verification" worksheet to score the development according to the Standard. Refer to the Standard for more detail on each of the practices. Record the points for each practice to be used in the "Points Claimed" column of the worksheet. Add any explanatory notes in the "Developer's Notes" area at the end of each major section.
Step 3
Note the required/expected documentation as listed in the "Documentation Required" column and be sure to have that available for the verifier.
Sign the Design Review Signature page after the Design Review verification has been completed. The Developer will be invoiced for the required fee.
Step 6
If a Letter of Approval is required, submit the report to the NAHB Research Center (via VerificationReport@nahbrc.com).
Step 7
After each phase is completed, hire a local accredited verifier to complete the Field Inspection verification and submit the report to the NAHB Research Center (via VerificationReport@nahbrc.com). The Developer will be invoiced for the required fee.
Step 8
Sign the Field Inspection Signature page after the Field Inspection verification has been completed.
National Green Building Certification assures homeowners and the community that your projects meet the requirements of either the NAHB Model Green Home Building Guidelines or the ICC 700-2008 National Green Building Standard, and truly are green. Builders interested in having their buildings certified should follow the steps outlined below.
Builder Process for Green Building Certification
Step 1:
The builder scores the building to be certified using the online Green Scoring Tool.
Step 2:
Export final Designer's Report from Green Scoring Tool and save locally as an Excel file.
Step 3:
As construction begins, select an accredited verifier. If there is not an accredited verifier listed for your area, contact the National Green Building Hotline - (877) NAHB-GRN - to let the NAHB Research Center know and/or to suggest a potential verifier candidate in your area.
Step 4:
Forward Designer's Report to selected verifier and schedule rough inspection.
Step 5:
Meet with verifier after rough inspection to sign off on the correct version of the verification report which will be sent to NAHB Research Center for review. There are Verification Reports for the Guidelines and the Standard.
Step 6:
Receive invoice for green building certification fee ($200 per building for NAHB members, $500 for non-members, multi-unit building fee +$20/unit).
Step 7:
Complete Program Participation Agreement and return to Research Center with required evidence of insurance. Documentation is included in a builder's application packet, available by calling (877) NAHB GRN or contacting us via e-mail. Only one Agreement is required for each builder regardless of how many buildings are ultimately submitted for certification.
Step 8:
Schedule final inspection with verifier and sign off on final Verification Report including certificate information.
Step 9:
After final report review and receipt of the certification fee, the NAHB Research Center will issue the Certified Green Home certificate.
The chart below details the steps and responsibilities for each involved party in the green building certification process. See a larger version, or download the certification flowchart in PDF format.
As green building grows in popularity, so does the scrutiny of green certifications. Make sure your project has the credibility of an accredited third-party verifier to back it up.
One key element of NAHB's suite of green building tools is National Green Building Certification, which is administered by the NAHB Research Center. The Research Center accredits verifiers and acts as the sole certifying body for the National Green Building Program.
Certification is based on the NAHB Model Green Home Building Guidelines and the ICC 700-2008 National Green Building Standard™. The Standard includes provisions that define green attributes for developments, multi-unit dwellings, remodeling projects, additions and single-family homes.
There are three green certification levels available in the Guidelines – Bronze, Silver, and Gold. The Standard includes an additional level, Emerald. The green levels and certifications address key green construction areas including – Lot & Site Development, Resource Efficiency, Energy Efficiency, Water Efficiency, Indoor Environmental Quality, and Homeowner Education.
Accurate job costing is one of the most critical tasks for managing job-based business like construction companies, professional services firms, and even nonprofits that are awarded grants. Many owners put it off because it seems too complicated or time-consuming. But if you're serious about helping your business grow and prosper, it'll help you:
- Analyze how each of your jobs us doing financially
- Identify problem jobs as early as possible
- Identify jobs that weren't as profitable as expected
- Create better estimates for future jobs
Luckily, QuickBooks is an inexpensive program that can do powerful job costing with the data you're already entering - as long as you set it up and use it correctly.
This is the first of a four-part series about how to use QuickBooks for job costing. Intuit, the creators of QuickBooks, has also asked me to host a free Small Business Town Hall series covering the same topics. This is your chance to get your job costing questions answered live. You can get more information here:
The first step to setting up QuickBooks for job costing is to set your preferences (Edit > Preferences > Company Preferences)
1. Go to Jobs & Estimates and check the box next to "Do you create estimates". You might also want to check the box next to "Do you do progress invoicing".
2. If you use QuickBooks for payroll, and every business doing job costing should, go to Payroll & Employees and check the box next to "Job costing, class and item tracking for paycheck expenses"
3. If you use QuickBooks for payroll, go to Time & Expenses and check the box next to "Do you track time". If you do time & material billing, you should also check "Create invoices from a list of time and expenses".
The second step is to setup your customer:jobs and use them on every transaction.
1. Go to the Customer Center and click on the New Customer & Job button.
2. If you are using Contractors edition, you might also want to create a customer called Overhead or Administrative for non-job expenses, so you can use the "Expenses Not Assigned to Jobs" report (only found in the contractors edition) to make sure you didn't accidentally leave off a customer:job. If you are using classes, you might want to consider doing the same thing so you can use the Profit & Loss Unclassified report to make sure you didn't accidentally leave off a class.
The third step is to setup items and use them on every transaction.
1. Go to Lists > Item List, click on the List button, and select New.
2. Add a new service item for every job phase you want to job cost. For subcontractors, this could be as simple as Labor and Materials. For general contractors, it could be quite lenghty: plans, site work, excavation, concrete, masonry, framing, etc. In this case, you might want to add sub-items for Labor and Materials to your items if you want to track those costs separately. This also makes it easier to report only the Labor portion of a subcontractor's invoice on their 1099.
3. If you are a contractor with short-term jobs make sure to set up all your Service Items as two-sided, with both an expense and an income account. This doesn't occur automatically and unfortunately it isn't very intuitive. You need to put a check next to "This service is used in assemblies or is performed by a subcontractor or partner" for the expense box to be added to the setup screen. Contractors often use a cost of goods sold account called something like "job related costs" for job-related expenses.
4. Builders and many professional service firms have projects that span several months or more generally use a work in progress (WIP) or construction in progress (CIP) asset account because job related costs aren't usually expensed until the project is completed. In this case, they should map the expense account to their WIP or CIP asset account.
5. Depending on your circumstances, there are also several Other Charge items you should set up. These don't need to be two-sided:
- If you use WIP or CIP accounts, you should setup two items: (1) Transfer out of WIP - with WIP as the account and note in the description that the amount should be positive, and (2) Transfer into COS - with COS as the account and note in the description that the amount should be negative
- If you accept customer deposits or retainers, you should setup an item mapped to a current liability account. For better tracking, you should consider setting up a separate current liability account just for deposits.
- If you have customer retention or retainage, you should setup an item mapped to an accounts receivable account and a negative for the Amount (for instance, -10% if your retainage is 10%). For better tracking, you should consider setting up a separate accounts receivable account just for retainage.
Ruth Perryman is the president of The QB Specialists. She is a Certified Advanced Quickbooks ProAdvisor and an Intuit Solutions Provider, with over 19 years of industry experience including 5 years as a Chief Financial Officer. She has been working with Quickbooks since 1996, and specializes in QuickBooks Enterprise and POS installations and troubleshooting. She also provides virtual controller and CFO services. Ruth can be reached at 800-707-0940 or ruth@theQBspecialists.com
The information on this page pertains to the American Recovery and Reinvestment Act of 2009.
The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
No one likes to leave money on the table. So, what would you think if you could get a rebate for your loyalty to many of the nation’s leading housing industry suppliers? Well, now you can!
We’re happy to introduce the HBA of SC Member Rebate Program, aimed at increasing your bottom line. For the minimal effort of informing us about the products you use, and telling us when you close on a home, you’ll be putting money back in your pocket. When you participate in the HBA of SC Member Rebate Program, you can count on receiving checks every quarter!As an NAHB benefit, members have access to discounts and savings opportunities offered by many top companies.
When making contact, the companies below request that callers identify themselves as members of the National Association of Home Builders.
Program Details
Benefits of participating The biggest perk? Money. Cold, hard cash. And all for just remaining loyal to many of the country’s leading manufacturers you already use in all of your homes. Lump-sum checks for closed homes are mailed quarterly.
No change needed in your business practices Besides the money, the next-best part of the program is that it relies on very little effort from you and doesn’t change the way you conduct business. Best of all, you do NOT have to change the way you currently buy. We do the paperwork, collect the money and mail you the quarterly checks directly!
How to register Obtaining the benefit for your loyalty couldn’t be easier. Simply complete the: Online Registration Form
Do you have questions about the $8,000 first-time home buyer tax credit? We're here to help! Rob Dietz, director of tax issues for NAHB, provides the answers and information you need to determine if you qualify.
Listen now to get started on your dream of homeownership today!
FAQ on Monetization
1. What exactly does “monetizing” the tax credit mean? The term “monetization” is defined as the act of converting something into money. In the context of the first time home buyer tax credit, monetization means to treat the payment of the credit as if it was cash and allow its use as a payment for certain closing and downpayment expenses.
2. What is a “bridge” loan? A bridge loan is a type of loan that is intended to be outstanding for a very short time period, often only a few days or weeks. Bridge loans are use to provide funds in situations where the borrower is expected to receive funds, such as the payment of this tax credit, within a very short time.
3. What is a state housing finance agency? A state housing finance agency, often referred to as an “HFA,” is an organization that provides funding for a variety of loan and grant activities related to for-sale and rental housing. HFAs are also typically responsible to distribute grant funds from federal agencies, such as the U.S. Department of Housing and Urban Development (HUD).
4. How do I find out if my state housing finance agency is providing this service? The best way to locate information about your state’s HFA is via the Internet. The National Council of State Housing Agencies (NCSHA) maintains a directory of state HFAs at: http://www.ncsha.org/section.cfm/4/39/187
5. What kinds of lenders are doing this? How can I find a list of lenders who are providing these short-term loans? Many state housing finance agencies are either running or sponsoring programs that will use a tax credit for a downpayment. These programs often place a second lien on the home as collateral to secure the eventual repayment of the tax credit funds. Some state HFAs lend directly to home buyers while other HFAs work through networks of state-approved lenders. In addition to state agencies, FHA-approved lenders may be offering to purchase a first time home buyer’s tax credit in conjunction with an FHA-insured mortgage loan. Interested buyers should check with area lenders, home builders, or real estate agents for the names of participating lenders. The Federal Housing Administration (FHA) also has an online tool to find FHA-approved lenders: http://www.fhaoutreach.gov/FHALookup/
6. What types of loans qualify? Any lender could offer a program that would permit a first-time home buyer to apply the tax credit to funds needed for a loan that is obtained in conjunction with a home purchase. At this time, however, only the Federal Housing Administration (FHA) has issued guidance regarding the monetization of the first-time home buyer tax credit in conjunction with FHA-insured mortgage loans.
7. Can this short-term loan be applied to the minimum 3.5% downpayment required by my FHA loan or is it only available above and beyond the initial downpayment required? The FHA rules provide for two cases: one for state housing finance agencies and other government entities (in which the monetized may be used to meet the 3.5% requirement) and another for private, FHA-lenders (in which the monetized credit may not be used to satisfy the 3.5% requirement). Each case is explained in detail below. If an FHA-approved lender or state housing finance agency is purchasing a tax credit and therefore making a short-term loan that is secured only by the repayment of the first-time home buyer tax credit, these funds cannot be applied to a downpayment in lieu of the home buyer’s funds. A home buyer still has to provide the 3.5 percent downpayment from his or her own funds. The money from the short-term loan can be used to pay closing costs and prepaid expenses, such as escrows for taxes, insurance, and community association assessments. These funds could also be used to make a larger downpayment or to “buy down” the interest rate on the mortgage loan. However, many HFAs are offering tax credit loan programs that offer home buyers a short-term loan backed by the anticipated tax credit and secured by a second lien, which in general will be paid off after the homebuyer receives their income tax credit from the IRS. The proceeds of these loans may be used to satisfy the 3.5 percent downpayment requirement for FHA-insured loans. The National Council of State Housing Agencies (NCSHA) maintains a list of such tax credit loans programs at: http://www.ncsha.org/section.cfm/3/34/2920.
8. Who should I contact at my state housing finance agency to urge them to participate in this program if they don’t already do so? What should I say? The best way to locate information about your state’s HFA is via the Internet. The National Council of State Housing Agencies (NCSHA) maintains a directory of state HFAs at: http://www.ncsha.org/section.cfm/4/39/187 Most state HFA web sites include phone numbers and email addresses by which they can be contacted.
9. Is this an interest-free loan or are there fees associated with this type of short-term loan? If a governmental agency, such as a state housing finance agency, or an FHA-approved lender purchase a first-time home buyer tax credit, they are allowed to charge no more than 2.5 percent of amount of the credit.
10. How can I tell if the short-term loan on the tax credit is being offered by a reputable company? If the organization is a unit of state government, it is safe to say that it is reputable. Otherwise, a home buyer may want to check with their local Better Business Bureau or through a state or local government’s department of consumer affairs.
1. What types of projects are eligible for the tax credit?
The new tax credits cover a wide variety of energy-efficient aspects of remodels: windows and doors; insulation; geothermal features; solar panels; water heaters; wind energy systems; roofs; HVAC; fuel cells; and biomass stoves. Energy Star-rated appliances that don’t fall into any of those categories, such as dishwashers and refrigerators, are not eligible.
2. How large are the tax credits?
The credit is 30 percent of the cost — up to $1,500 — for most products. However, for geothermal systems, solar panels, solar-powered water heaters and wind energy systems, the credit is 30 percent with no cap. Fuel cells are capped at $500 per .5 kW of power capacity, but there is no limit on the total credit.
3. How long do the credits last?
The credits for most projects (those capped at $1,500) are only available in 2009 and 2010, but the credits for the products with no lifetime caps (those categories listed in question 2) last until 2016.
4. Are products that were installed before the stimulus package passed eligible for credits?
Yes, as long as they were put into service this year. Any product that met the tax credit standards in place at the time is eligible for the full credit. Be sure to contact any clients you worked for before the stimulus passed to make sure they’re aware of their new windfall.
5. Are installation costs included in figuring the tax credit?
That depends. For most products, installation costs are included to calculate the 30 percent credit, but they are not for windows, doors, insulation and roofs. For those categories, only the cost of materials is eligible for the credit. This means you’ll need to provide a material cost to your clients for those projects if they want to receive the credit.
6. How do I know which products qualify for the tax credits?
One of the most confusing thing about the credits is that not all products — not even all Energy Star products — qualify. There are minimum requirements in each product category. For example, windows must meet a higher standard of a U factor and a Solar Heat Gain Coefficient (SHGC) of less than .30. For a full list of product standards, visit www.energystar.gov/taxcredits.
7. Can the credits be used for vacation homes, new construction or rental properties?
For most product categories, homeowners can only receive the credit for improvements to their primary residence. However, geothermal systems, wind energy systems, solar panels and solar water heaters are eligible when installed in a vacation home or in new construction projects. Fuel cells are eligible when installed in new construction, but only if the home is being built as a primary residence.
Almost all rental properties are not eligible for any credits. The only exception is a vacation home that the owner occupies for part of the year and rents for the rest of the year. In that case, the owner could take a pro-rated portion of the credits for the four product classes mentioned above.
8. Can homeowners receive the credits if the new products are installed in an addition?
Yes. While it initially seemed that additions would not be eligible for the credits because the products would not be an “improvement” to an existing building, the IRS recently confirmed that products used in an addition can be used to claim the full tax credit.
9. How many times can a homeowner take the credit?
For the products that are capped at $1,500 (windows, insulation, etc.), homeowners can get a credit on multiple projects, but they can only claim a total of $1,500 combined in 2009 and 2010. Two unmarried people living in the same household can each take the $1,500.
The products that are eligible for the 30 percent credit with no total cap (solar, geothermal, etc.) can be taken as many times as a homeowner installs eligible products through 2016.
10. What do remodelers need to provide clients so they get the credits?
You should give your clients a detailed receipt, along with what the IRS is calling a “Manufacturer’s Certification Statement.” This should include the name and address of the manufacturer; identification of the type of product; make, model and any other identifiers of the specific product used; and a statement that the product is eligible for the tax credit. The homeowners do not need to file the statement or receipt with their taxes but should have them for their records in case of an audit.
In LEED 2009 there are 100 possible base points plus an additional 6 points for Innovation in Design and 4 points for Regional Priority. Buildings can qualify for four levels of certification:
Certified - 40-49 points
Silver - 50-59 points
Gold - 60-79 points
Platinum - 80 points and above
Points have been distributed as follows. Required "prerequisites" in each category receive no points.
Sustainable Sites 26 Possible Points
Prerequisite 1: Construction Activity Pollution Prevention
Credit 1: Site Selection
Credit 2: Development Density and Community Connectivity
Credit 3: Brownfield Redevelopment
Credit 4.1: Alternative Transportation—Public Transportation Access
Credit 4.2: Alternative Transportation—Bicycle Storage and Changing Rooms
Credit 4.3: Alternative Transportation—Low-Emitting and Fuel-Efficient Vehicles
Credit 4.4: Alternative Transportation—Parking Capacity
Credit 5.1: Site Development—Protect or Restore Habitat
Credit 5.2: Site Development—Maximize Open Space
Credit 6.1: Stormwater Design—Quantity Control
Credit 6.2: Stormwater Design—Quality Control
Credit 7.1: Heat Island Effect—Nonroof
Credit 7.2: Heat Island Effect—Roof
Credit 8: Light Pollution Reduction
Water Efficiency 10 Possible Points
Prerequisite 1: Water Use Reduction
Credit 1: Water Efficient Landscaping
Credit 2: Innovative Wastewater Technologies
Credit 3: Water Use Reduction
Energy and Atmosphere 35 Possible Points
Prerequisite 1: Fundamental Commissioning of Building Energy Systems
Prerequisite 2: Minimum Energy Performance
Prerequisite 3: Fundamental Refrigerant Management
Credit 1: Optimize Energy Performance
Credit 2: On-site Renewable Energy
Credit 3: Enhanced Commissioning
Credit 4: Enhanced Refrigerant Management
Credit 5: Measurement and Verification
Credit 6: Green Power
Materials and Resources 14 Possible Points
Prerequisite 1: Storage and Collection of Recyclables
Credit 1.1: Building Reuse—Maintain Existing Walls, Floors and Roof
Credit 1.2: Building Reuse—Maintain Existing Interior Nonstructural Elements
Credit 2: Construction Waste Management
Credit 3: Materials Reuse
Credit 4: Recycled Content
Credit 5: Regional Materials
Credit 6: Rapidly Renewable Materials
Credit 7: Certified Wood
Indoor Environmental Quality 15 Possible Points
Prerequisite 1: Minimum Indoor Air Quality Performance
Prerequisite 2: Environmental Tobacco Smoke (ETS) Control
Credit 1: Outdoor Air Delivery Monitoring
Credit 2: Increased Ventilation
Credit 3.1: Construction Indoor Air Quality Management Plan—During Construction
Credit 3.2: Construction Indoor Air Quality Management Plan—Before Occupancy
Credit 4.1: Low-Emitting Materials—Adhesives and Sealants
Credit 4.2: Low-Emitting Materials—Paints and Coatings
Credit 4.3: Low-Emitting Materials—Flooring Systems
Credit 4.4: Low-Emitting Materials—Composite Wood and Agrifiber Products
Credit 5: Indoor Chemical and Pollutant Source Control
Credit 6.1: Controllability of Systems—Lighting
Credit 6.2: Controllability of Systems—Thermal Comfort
Credit 7.1: Thermal Comfort—Design
Credit 7.2: Thermal Comfort—Verification
Credit 8.1: Daylight and Views—Daylight
Credit 8.2: Daylight and Views—Views
Innovation in Design 6 Possible Points (ID Credit 1.1-1.4 has 4 points, and ID Credit 2 has 1 point)
Cost-effective, flexible and sensible. Make your homes more resource and energy efficient with NAHB Green.
Through the National Green Building Program, the National Association of Home Builders is helping its members move the practice of green building into the mainstream. Energy efficiency, water and resource conservation, sustainable or recycled products, and indoor air quality are increasingly incorporated into the everyday process of home building.
Green is still good. The latest government motivation is toward green roof installations.
Among the benefits of the Clean Energy Stimulus and Investment Assurance Act of 2009 (S.320) introduced by Sen. Maria E. Cantwell (D-Wash.) is to provide financial incentives for homeowners or commercial building owners which chose to install green roofs on their buildings.
A green (or sod) roof features of vegetation-usually drought-tolerant plants, or shrubs-that is planted in a growth medium. The roof generally involves a multilayer system of waterproof and root-repellent membranes, a drainage system, filter cloth, and lightweight soil.
Green roofs have been around for thousands of years.One of the first notable appearances of green roofs occurred in the Hanging Gardens of Babylon around 500 BC.The site is considered one of the Seven Wonders of the World.
The thrust of the Clean Energy Stimulus and Investment Assurance Act of 2009 is to create green-collar jobs and revitalize the economy through clean energy investments.
Section 506 of the bill, offers property owners a 30 percent tax credit for qualified green roof expenses. The tax credit applies to both new and retrofit projects, but it requires that at least 50 percent of the roof area be covered with vegetation.
“This is a watershed moment for the green roof industry,” observes Steven W. Peck, founder and president of Green Roofs for Healthy Cities, which worked with the American Society of Landscape Architects to help Sen. Cantwell’s office draft the section of the bill that is focused on the green roof incentive. “This bill will deliver an enormous number of green collar jobs, not just today, but also in five years from now, while also saving energy, improving stormwater management, cooling cities, cleansing the air, and
beautifying our rooftops.”
Builder magazine reports that, Green Roofs for Healthy Cities has launched a new, multi-disciplinary Green Roof Professional (GRP) program–much like U.S. Green Building Council’s LEED Professional Accreditation-and will administer the first exam at its annual conference this June in Atlanta. Under the program, an individual can become GRP-accredited to provide green roof design, products, and installation services to meet the new demands that potentially could be generated from this bill.
American landscape architects and a Canadian nonprofit green roof industry association says that the United States could see a surge in green roof installations if a provision in a recently introduced Senate stimulus bill becomes law.
72% of electricity consumption 39% of energy use 38% of all carbon dioxide (CO2) emissions 40% of raw materials use 30% of waste output (136 million tons annually) 14% of potable water consumption
According to a report presented by NAHB and McGraw-Hill 40% of builders believe green is a market differentiators. (Green Builder, January 2009)
NAHB and McGraw-Hill predict residential green building will double to $40-$70 Billion by 2012. This will account for 12-20% of the entire market.
The green building products market is projected to be worth $30-$40 billion annually by 2010 (Green Building Alliance 2006).
Between 40% and 50% of the homes built in 2010 are expected to be green (NAHB, March 2007).
NAHB reports approximately 115,000 homes were certified and inspected to local green building codes in 2008. This was an 18.6% increase from 97,000 homes in May 2007 (Residential Design & Build, October 2008).
As of April 2009, the NAHB has registered more than 2,700 Certified Green Professionals, a designation issued by the group’s University of Housing (EcoHome Magazine, April 2009).
Forty percent of those homebuilders surveyedby McGraw-Hill said that the down market has made it easier to market green homes, and 16% said that the housing slump has made it much easier.
To learn more about green building, 90% of builders are most often using print sources, followed by home building Web sites; home building product manufacturers; and NAHB trade shows, conferences and workshops (Nbnnews.com, June 2008).
NAHB Consumer preferences Upfront costs consumers are willing to pay to save on utility costs. (NAHB 2007 Consumer Preference Survey)
51% - $5,000-$10,999 32% - Less than $5,000 16% - $11,000 or more
With so many stats pointing toward continued growth, Green should be a mainstay in corporate values and, therefore, the marketing mix. Smart marketing that incorporates the FTC’s Guides for the Use of Environmental Marketing Claims, in addition to other industry best practices is the surest way to tap into that growth.
5 Simple Steps to Certification National Green Building Certification There are just a few key steps a builder, remodeler, or developer needs to follow to prepare a project for National Green Building Certification. For more information, visit www.NAHBGreen.org/Certification.
1. Create a Designer’s Report A new home, remodeling project, or development must first be scored using the online Green Scoring Tool available at www.NAHBGreen.org/ScoringTool. The tool walks a registered user step-by-step through all the decision points necessary to create a green project that’s ready for certification. Once a project is scored, the tool will create a downloadable Designer’s Report that can be sent to an accredited verifier.
2. Hire an Accredited Verifier National Green Building Certification requires visual verification of every point claimed toward certification by an independent, third-party verifier accredited by the NAHB Research Center. All accredited verifiers are listed at www.NAHBGreen.org/Certification/findverifier.aspx. All verification fees are negotiated between the verifier and the builder/remodeler/developer directly.
3. Schedule a Rough Inspection The verifier will notify the NAHB Research Center once a rough inspection has been scheduled, which will officially enter the project into the certification pipeline. The rough inspection must be before drywall but after complete insulation installation. The verifier will send the rough Verification Report, signed by both the builder and the verifier, to the Research Center for review once this inspection is complete.
4. Complete the Application Once notified of a rough inspection, the NAHB Research Center will forward an application package to the builder/remodeler/developer for the first project submitted by that applicant. The package includes an agreement that must be completed and sent back to the Research Center.
5. Schedule a Final Inspection The verifier will notify the NAHB Research Center once the final inspection has been scheduled. When this inspection is complete, the verifier will send a final signed Verification Report to the Research Center for review. Barring any discrepancies with the information provided by the verifier, the Research Center will complete the review and issue a certificate to the builder within one business day.
The NAHB Green Scoring Tool is useful to skilled professionals as well as novices, providing information about the why and how of green building at every step.
Consumers can develop ideas to discuss with their builders or remodelers. Builders or remodelers can develop green home designs to discuss with their trades or customers, and if they are intending to get the homes certified, they can develop their designs to hand off to their verifiers. The tool allows you to explore as much or as little of the supplementary information that you need or want at any step. The tool also provides continual feedback, informing you at every step where you stand and what you need to do to make your home green.
Seal heating and cooling ductwork. Duct leakage can be substantial--as much as 20% to 30%. Use water based mastic only.
Buy EPA Energy Star labeled energy-efficient equipment. When buying or replacing office equipment, compare energy requirements of various models.
Repaint building exterior with light colors. More sunlight will be reflected away from the building, thus lowering air-conditioning expenses. This is especially true for your roof.
Replace old appliances with more efficient models. Replacing an old dishwasher, refrigerator, washing machine, or furnace -- with a new, energy-efficient model can really save energy and money. Look for the Energy Star label.
Home Energy Audit. A home energy audit can identify ways to save up to hundreds of dollars a year on home heating and air conditioning.
Increase attic insulation to R-30. Insulation helps keep heat out in the summer and the cold out in the winter.
Insulate floors over unheated spaces to R-19. Insulation provides a thermal boundary, reducing energy use and increasing comfort.
Insulate and seal ducts in attics, crawl spaces, garages and other unheated areas.
Install Energy Star windows. These windows cost ~$0.50 /sq.ft. more than standard windows, save energy and increase comfort
Install a solar water heater. A solar water heater can provide 50% to 80% of your hot water needs.
Donna Gilmore NAHB CGP NAHB Accreditted Verifier Sigler Construction Inc. Email: donnagilmoresc@yahoo.com Phone: 843-681-7457
Leaking ducts can reduce your heating and cooling system's energy efficiency byby 10 to 30 percent. Imagine, one third of your heating-bill money may be going to waste.
In most homes built before 2008 on Hilton Head Island, SC the HVAC duct work is located in the unconditioned attic space. If the supply ducts are leaking, heated or cooled air is forced out unsealed joints and lost. In addition, unconditioned air can also be drawn into return ducts through unsealed joints. In the summer, hot attic air can be drawn in, increasing the load on the air conditioner. Ducts located in the unconditioned attic space presents a number of additional problems for homeowners; it tends to be difficult to inspect the HVAC duct work for leaks and tears, the extra cost that leaky ducts add, they also reduce the quality of your indoor air. The leaks pull dust, mold, carbon monoxide, methane and allergens into the hvac system.
What are the health consequences of poor indoor air quality? The most common symptoms are irritation of the eyes, nose, throat, headaches, fatigue and dizziness. Usually, these symptoms go away when the person is no longer exposed to the irritants.
But it is also possible to develop long-term chronic conditions and diseases like asthma, hypersensitivity pneumonitis and humidifier fever. Other health effects won't even be noticeable till years after the exposure: Respiratory disease, heart disease and cancer. It is extremely important to keep your indoor air quality healthy.
Solutions offered by Sigler Construction:
1. The best way to solve your leaky duct problem is with a UL 181 water-based mastic duct sealant and mesh tape. The water-based mastic has a few fumes, but it is considered a low VOC product. In any case, the slight fumes from the mastic are mostly harmless, especially when compared to the alternative. Simply apply the mastic around the joints of your duct system. Then place the mesh tape over the mastic seal. Regular duct tape won't work on ducts. Make sure to get mesh tape specifically designed to work with the mastic. Once your ducts are sealed, they will efficiently deliver cool or heated, unpolluted air.
2. Developed by Sherwin-Williams, E-Barrier™ Reflective Coating helps reduce utility bills for homes and commercial buildings.
When applied to any attic roof decking or to previously painted commercial decking, the microscopic metal particles in E-Barrier Reflective Coating help maximize energy efficiency.
In summer, E-Barrier™ reflects radiant energy from the sun
In winter, E-Barrier™ prevents radiant energy from leaving the building
Reduces heating an cooling costs by as much as 30% percent right away
Low emissivity (virtually no odor)
Breathable coating, won't trap moisture or destroy your roof decking
Save Hundreds with E-Barrier™ instead of costly blown-in insulation that only deteriorates within a few years
E-Barrier Reflective Coating is a low emissive (virtually no odor) coating for application to the underside interior surface of roof decks
E-Barrier Reflective Coating helps keep the interior of structures warmer in winter and cooler in summer by reducing the loss of radiant heat in the winter and reducing the penetration of heat into a building in the summer.
E-Barrier Reflective Coating contains specialized materials which reflects radiant heat back towards its source. in the winter, about 65% of a buildings heat that would normally escape through the roof surface is reflected back into the building, reducing the loss of heat. In summer, about 63% of radiant energy from the sun is reflected back reducing the pick up of heat (idle hot air) in the building.
*E-Barrier is certified by the EPA as a top leader in insulating products and as a Green Seal Certified Product.
3. Installing spray foam insulation in your attic rafters provides a cool, sealed attic space for your air conditioning system & air ducts to work much more efficiently. They run more efficiently & last longer with lower maintenance costs because they will now be operating in a semi-conditioned space instead of a blistering 140 degree environment. This also gives you a comfortable storage space instead of a suffocating nightmare.
Why Is Duct Leakage Important?
Leaks in forced air duct systems are now recognized as a major source of energy waste in both new and existing houses. Studies indicate that duct leakage can account for as much as 25% of total house energy loss, and in many cases has a greater impact on energy use than air infiltration through the building shell. Just as important, duct leakage can prevent heating and cooling systems from doing their job properly, resulting in hot or cold rooms, and humidity problems. Worse yet, duct leaks can create air quality problems by pulling pollutants and irritants directly into the house.
Here are just a few of the problems resulting from duct leakage:
Leaks in the supply ductwork cause expensive conditioned air to be dumped into the attic, crawlspace or garage instead of into the house.
Return leaks pull outside air (hot in summer, cold in winter) into the duct system reducing both efficiency and capacity. In humid climates, moist air being drawn into return leaks can overwhelm the dehumidification capacity of air conditioning systems causing homes to feel clammy even when the air conditioner is running.
Heat pumps are particularly susceptible to comfort complaints from duct leakage, especially during the heating season. Duct leaks can cause the air coming from heat pumps to feel luke-warm or even cold during the winter. In addition, leaky ductwork has been found to greatly increase the use of electric strip heaters in heat pumps during the heating season.
Leaks in return ductwork draw air into the house from crawlspaces, garages and attics bringing with it dust, mold spores, insulation fibers and other contaminants.
Household depressurization from duct leaks and imbalanced duct systems can cause spillage of combustion products (from furnaces, water heaters and fireplaces) into the house.
Measuring Duct Leakage
A duct leakage performance test involves pressurizing the duct system with a calibrated fan and simultaneously measuring the air flow through the fan and its effect on the pressure within the duct system. The tighter the duct system, the less air you need from the fan to create a change in duct system pressure. Testing procedures can be set up to measure only duct leaks which are connected to the outside, or to measure total duct leakage (i.e. leaks connected to the outside and inside of the house). Duct leakage measurements are used to diagnose and demonstrate leakage problems, estimate efficiency losses from duct leakage, and certify the quality of duct system installation.
Two different types of performance testing systems are used to measure duct leakage; a Duct Blaster® and a Blower Door.
Duct Blaster®
A Duct Blaster is used to directly pressure test the duct system for air leaks, much the same way a plumber pressure tests water pipes for leaks.
The Duct Blaster fan is first connected to the duct system at the air handler cabinet, or a return grille. After temporarily sealing all remaining registers and grills, the Duct Blaster fan is turned on to force air through all holes and cracks in the ductwork.
The fan speed is increased until a standard test pressure is achieved in the duct system. A precise leakage measurement is then made using an airflow and pressure gauge connected to the Duct Blaster system.
Estimates of efficiency losses from duct leakage can then be made from the leakage measurements.
A theatrical fog machine can be used along with the Duct Blaster to inject a non-toxic fog into the duct system to visually demonstrate the location and extent of leakage in the ductwork.
Blower Door
The Blower Door is a whole house testing system which indirectly measures duct leakage by pressurizing the entire house to a standard testing pressure.
By comparing the whole house test before and after all registers are temporarily sealed, the Blower Door provides you with an estimate of duct leakage to the outside.
With the Blower Door running, duct leaks can be pinpointed using a hand-held smoke puffer, or a leak detection tool called a pressure pan.
In addition to diagnosing duct leakage problems, the Blower Door can identify building envelope improvements that will reduce energy use and increase comfort.
Blower Door airtightness measurements can also be used in HVAC equipment design and sizing decisions, and to help estimate the need for mechanical ventilation.
Written By: Donna Gilmore NAHB CGP NAHB Accredited Verifier
With all the Rain that we have been having these days building a rain barrel or buying one already made is an excellent way to both save water and reduce you PSD water bill.
Residential water use increases 40 to 50% during summer months due to outdoor water use. Stormwater runoff is the leading type of residential non-point source pollution.
A rain barrel collects and stores rainwater from rooftops to use later for lawn and garden watering. Water collected in a rain barrel would normally pour off your roof directly or flow through roof gutter downspouts and become stormwater runoff. Depending on your yard, this runoff can travel onto paved surfaces and eventually into a storm drain.
Rain barrels conserve water and help lower costs (a rain barrel can save approximately 1,300 gallons of water during peak summer months).Rain barrels reduce water pollution by reducing stormwater runoff, which can contain pollutants like sediment, oil, grease, bacteria and nutrients.Rain barrels are inexpensive and easy to build and install.
A rain barrel can be used to save water for plants during dry periods. Rain barrels can also be arranged to slowly release the collected rain fall to areas that can soak up the water, reducing stormwater runoff and increasing groundwater recharge 54 gallon, green plastic rain barrel with screened cover and outlet hose. Also comes with overflow hose and linking kit to connect a set of two. Operation and Maintenance Rain barrels should be drained and removed for the winter months to prevent ice damage. It is recommended that you remove the existing downspout and elbow intact and store for reinstallation in the late fall. You can then add another downspout section that will need to be custom cut to an appropriate height above your rain barrel. Two, connected downspout elbows (forming an S shape) or hinged extension should sit about two inches above the rain barrel inlet hole. Fine mesh screen should be used to cover any openings in the rain barrel to prevent mosquitoes and to trap debris. Rain barrels can be installed upon blocks or wooden crate to provide height for gravity flow purposes. I purchased 2 rain barrels at Home Depot for $79 (On Sale). We installed them in a couple hours and they allow us to keep our garden watered without using our sprinkler system. For our vegetable garden I installed a timer and a dripper hose. Rain barrels are a great way to reduce stormwater runoff and to save water for a dry spell. If you have gutters on your house, you may be able to collect 55 gallons of water during a ½ inch rain by directing a downspout to a rain barrel or cistern.
Manufactures' Description:
* Rotational molded, holds 58 gallons * Highly decorative, nestable barrel * Includes diverter kit and spigot * Threaded spigot connects to garden hoses * MFG Brand Name : Fiskars * MFG Model # : 5998 * MFG Part # : 59987935
"Every gardener knows that the key to a successful growing season is water, water, and more water. But with droughts and shortages hitting parts of the U.S. and Canada, keeping flowers flourishing and the veggie patch productive can be a costly proposition. The Fiskars Rainwater Harvesting System can help you salvage this valuable resource, so you can use it to provide much needed moisture for your yard, garden, and even indoor plants. Designed to easily integrate into your home’s existing downspouts, the Harvesting System diverts rainwater from gutters into a covered barrel, where the extra water is stored until you need it to perk up your tomatoes or refresh your rose bushes. Add a Rainwater Harvesting System to your home and keep your plants healthy and hydrated through any water restrictions or drought. Even more important, feel good knowing that you’re conserving a critical natural resource that you and your garden so greatly depend on."
Build Your Rain Barrel:
* Tools * Supplies * Instructions
TOOLS: * Electric Drill * Drill bit ½-inch to 1-inch * Drill bit 3/16-inch * Drill bit 1/8-inch * Jigsaw * Marking pen * Phillips screw driver * Pocket knife * Work-bench * Extension cord * Safety glasses
SUPPLIES: Plastic drum (55 gal. is best). Barrels that have carried food products are recommended. Some cleaning product barrels are OK after rinsing. Do NOT use petroleum or toxic chemical barrels. The following are all PVC fittings:
* Two-inch male adapter * Two-inch male slip x 3/4-inch female threaded adapter * 3/4-inch male threaded x 3/4-inch female threaded elbow (3/4 inch street el) * Four inch long 3/4-inch threaded nipple The following can be either metal or plastic: * 3/4-inch female sillcock or hose bibb * PVC cement * Teflon™ tape or Teflon™ pipe joint compound * Silicone sealant * Three stainless steel sheet metal screws #10 x 3/4 inch * Stainless steel mesh with plastic rim kitchen strainer (4 to 6 inch diameter)
INSTRUCTIONS: 1.Turn the barrel so that the end with no openings is facing up. 2.Fit the strainer on the end which is facing up so that it lays flat. 3.Mark around the perimeter of the strainer, remove strainer and draw another line about ½ inch inside the perimeter line. 4.Drill a pilot hole using the large bit just inside the inner drawn circle. 5.Using the saber saw follow the inner circle line until the circle is removed. Remove the circle if it has fallen into the barrel. This is a good time to make sure the barrel is clean inside. 6.Drill pilot holes in the strainer flanges and handle using the 3/16-inch bit. Place the strainer on the barrel and mark the hole locations on the barrel. 7.Drill pilot holes in the barrel using the 1/8-inch bit. 8.Partially screw into the strainer the #10 screws. Check to make sure the strainer holes match the barrel holes. 9.Apply silicone sealant to the strainer rim and place the strainer into position. Tighten screws until just snug. (Pat yourself on the back, you have just completed the first part of the barrel). 10.Place the barrel on its side. Unscrew one of the plastic filler plugs in the other end of the barrel. 11.Apply PVC cement to the two-inch male adapter sleeve and place the two-inch male x 3/4-inch female threaded adapter inside and press together for a few seconds. 12.Insert street el into the 3/4-inch hole of the adapter. Use teflon tape or sealant on all threaded parts. 13.Insert 4 inch nipple into street el. 14.Screw assembly into barrel. Four-inch nipple will work as a wrench to tighten first two fittings. 15.Connect water faucet to 4-inch nipple. Hand-tighten to proper position. 16.Place barrel on level, sturdy base. Direct downspout over the strainer. (Hooray, you now have a functioning rain barrel).
Diagram of Rain Barrel Leave 4" or larger air gap between down spout and strainer (if screening water). Mount rain barrel as high as practical to use gravity to increase pressure.
If your small business is stressed meeting expenses during these economic times, the U.S. Small Business Administration has a new loan program designed just for you.
SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan.
ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first.
Since June 15, lenders across the country have provided millions of dollars in capital to small businesses through the America’s Recovery Capital (ARC) loan program. Created under the Recovery Act, the temporary ARC program offers interest-free loans to viable small businesses, which carry a 100 percent guaranty from the SBA to the lender and require no fees paid to SBA. Loan proceeds are provided over a six-month period and repayment of the ARC loan principal is deferred for 12 months after the last disbursement of the proceeds. Repayment can extend up to five years.
The ARC loan program is open to any SBA-approved lender. Non-SBA lenders can easily become SBA participants by working with their nearest SBA district office. Businesses interested in applying for an ARC loan should first contact their current lender.
Small businesses hoping to take advantage of the SBA’s America’s Recovery Capital Loan Program (”ARC”) should be proactive in securing their place in the program, which only allows for about 10,000 loans nationwide, or an average of 200 per state. The SBA anticipates a high demand for these loans, so businesses looking to apply should make sure they have all of their paperwork and supporting documentation ready by the June 15th launch of the program.
Business owners should first verify that their bank participates in the ARC program. For a list of banks that make SBA loans, click here. Each bank will set its own procedures and timeline for issuing loans. It is likely that applicants will need to provide financial statements (and/or tax returns) for the past two years - showing the business was profitable before the economic downturn and can become profitable again. In general, the business must have been profitable in at least one of the last 3 years to be eligible for the ARC program.
Applicants will also need to provide information about the loans that they intend to pay with ARC funds. Each lender will be limited to 50 loans per week. If a bank makes less than 50 loans, they can carry the unused allocation over to other weeks, but lenders will be capped at a maximum of 1,000 loans through the program’s duration. The ARC loan program is scheduled to run through Sept. 30, 2010, or until its funding runs out, whichever comes first. Loan proceeds are provided over a six-month period and repayment of the ARC loan principal is deferred for 12 months after the last disbursement of the proceeds. Repayment can extend up to five years.
Larger Companies Build Business With Larger Projects, More Sophisticated Marketing
Largest companies rely on whole house remodels and custom new construction for a significant portion of their business
Remodeling is an industry dominated by small companies. Depending what source you listen to, there are somewhere between 500,000 and 1 million “remodelers” in the country, but the vast majority have revenues below $500,000 a year and no employees. So what separates the large companies from the small?
These are the products that will change our view of home building over the next few years
June 1, 2008 Professional Builder
Note: Links to the 100 Best New Product Categories for 2008 can be found below.
If you work for a builder today, you are focused on controlling or cutting costs. The person who is probably feeling the most pressure, though, is the purchasing manager. Slashing nickels, dimes and even pennies from building product purchases is essential. At the beginning of the recent downturn, some builders turned to their suppliers and asked for a 10 percent reduction of cost right off the top.
Now we're to the point where the product manufacturers and distributors have nothing left to give. They're facing increased commodity pricing and reduced demand, which is a supply versus demand economic model nightmare. Add in soaring energy costs, and we've got quite a puzzle to solve.
Nonetheless, in the midst of these desperate times, manufacturers are still innovating, making new products that builders and their purchasing managers can potentially use to find those nickels, dimes and pennies of savings.
For the second year, Professional Builder editors have identified the 100 Best New Products that were introduced in the last year. These are the products that will change our view of home building over the next few years.
To make the cut, products met all or most of the following criteria:
The product represents advancement in technology. This is a common area in today's technology-driven world, but real technological advancement — not just enhancement — is rare. When it comes along, that manufacturer will force its competitors to make changes or flounder.
The manufacturer makes a significant improvement to an existing product. Some of the most notable advancements in building products are built on a platform of an existing product, not the creation of a whole new product.
The manufacturer introduces a whole new line. Every editor at Professional Builder receives dozens of e-mails, phone calls and posted mail daily about changes to products and services. Usually, the public relations firms contacting us are trying to create buzz around the most mundane events — a new color for a product that hasn't changed in years; securing distribution in some backwater area where only 7 homes are built annually; or Cousin Doug's promotion to regional sales manager. To determine the 100 Best, we weed through all that distracting information to root out what is truly new and innovative. Introducing a product line is new. Introducing a new stain to an old product line isn't.
The product increases competition. This criterion is my personal favorite. What we're after are products that have instantly become so popular that every competitor out there is moving to get something to market that competes with it. That product is serving the market's needs in ways others aren't.
This year's 100 Best New Products represent the finest achievements of the building product and service industry. Here are links to the pages online:
* Construction Equipment and Tools * Windows * Structural, Insulation and Housewrap * Software * Paints, Caulks and Sealants * Millwork and Molding * Mechanical and Electrical * Interiors * Doors * Exteriors
Proposed Legislation Would Boost Remodeling Activity With More Tax Credits HIRE Act of 2009 offers credits for meeting environmental standards
News Release July 13, 2009 HousingZone
Congressman Henry Johnson (D-GA) and Nathan Deal (R-GA) are sponsoring legislation, the Home Improvements Revitalize the Economy (HIRE) Act of 2009, to provide tax credits to stimulate the purchase of kitchen cabinets and other remodeling and home furnishing improvements.
“Not only would this help stimulate the manufacturing market for home furnishings and buildings products, it would save retail jobs, generate billions in revenue and increase home values at the time when we really need a boost,” according to Johnson. “By creating this tax deduction, we will offer incentives for consumers who would otherwise forego spending in 2009 and 2010. We will encourage environmentally sound practices by doubling the benefits for the purchase of building products and home furnishings that meet nationally recognized environmental standards.”
Under the proposed HIRE Act, individual consumers and joint filers would receive respective $2,000 and $4,000 tax credits for purchasing items that meet recognized environmental standards (LEED, NAHB, Green Globes, SFI/FSC and ESP). Retailers, contractors and building product resellers can receive up to $10,000 for covered purchases.
A coalition that includes 14 associations representing kitchen cabinets (Kitchen Cabinet Manufacturers Association) home furnishings, flooring, paint and coatings, carpet and rug, and other interests have joined forces to support passage of the legislation.
“This bill would help everyone in our industry – manufacturing, retail, design and suppliers. The costs would be more than offset by increased economic activity and saved jobs. The incentives cease after three years. This definitely is a pump-priming effort of limited duration and near immediate payback,” according to KCMA Executive Vice President Dick Titus.
A copy of the HIRE Act can be viewed on the KCMA Web Site – www.kcma.org. Supporters are encouraged to contact their congressmen and ask that they co-sponsor the bill.
Stimulus construction funds have little impact to date on companies' ability to hire new employees, analysis finds.
News Release August 5, 2009 HousingZone
The stimulus plan appears to be having little influence on construction companies' ability to expand payrolls to date according to a new industry analysis of the impact of the federal program's construction spending released today by the Associated General Contractors of America. The "disappointingly" slow pace of construction spending outside of the transportation sector is one of the main reasons for the relatively small impact on new hiring, the group noted.
"While the construction portion of the stimulus is having an impact, it is far from delivering its full promise and potential," said Stephen E. Sandherr, the chief executive officer of the contractors association. "With construction unemployment at almost double the national rate, it is disappointing to see so many stimulus programs getting off to such a slow start."
Sandherr said that five months into a federal stimulus program that has approximately $135 billion dedicated for construction projects, there is little difference in hiring and purchasing patterns between companies doing stimulus-funded work and companies that aren't.
For example, he noted that while 36 percent of construction companies with stimulus-funded work report plan to hire new employees, an almost identical percentage of firms without stimulus-funded work also plan to make new hires this year or next. He added that while 36 percent of construction firms with stimulus-funded work plan to purchase new equipment and supplies, a higher rate - 43 percent - of construction firms without stimulus-funded work report plans to purchase new equipment over the same time frame.
One reason the stimulus is having a limited impact on construction hiring and purchasing patterns, Sandherr said, is that outside of the transportation arena, little of the stimulus' authorized construction dollars have resulted in actual construction work. He noted that while the Army Corps of Engineers is responsible for $4.6 billion in stimulus construction funds, the agency has only obligated $715 million and paid out $84 million.
Meanwhile, the General Services Administration has only obligated $656 million and paid out $12 million of its $5.9 billion in stimulus construction funds. And only half of one percent of the $6 billion in stimulus funds available for the U.S. Environmental Protection Agency's state clean water and drinking water programs has been put to use at this point.
He said the slow investment rate for construction funds was significant to hiring and purchasing patterns because some of the hardest hit segments of the construction industry are outside of the transportation area.
Sandherr said the stimulus was doing a much better job at this point in helping construction companies save existing jobs. He noted that 60 percent of construction firms with stimulus-funded work report have saved or retained jobs because of the stimulus.
And he noted that construction firms with stimulus-funded work do plan to make larger equipment purchases than their colleagues without stimulus funded work. Among companies planning equipment purchases, forty-two percent of firms with stimulus work say they will spend over $500,000, while only 18 percent of firms without stimulus work will invest more than half a million dollars in new equipment and supplies.
"The stimulus is clearly working," Sandherr said. "It just isn't working fast enough for many construction workers in many communities."
Sandherr said there was still time for the Administration to make sure the multi-year stimulus program delivers on its promise. He said the association was urging federal agencies to address critical shortages of contracting officials within key federal and state agencies overseeing stimulus construction dollars.
He added that the Administration needs to fully and finally clarify reporting and Buy American requirements included in the stimulus, noting many federal and state agencies are having difficulty interpreting the new mandates. And he urged everyone involved with the stimulus to set proper expectations for what the stimulus will, and will not, be able to do for the economy.
"Unsustainably high expectations can bring down good policy and great programs," Sandherr said. "The stimulus will keep our industry alive, but it will not turn around a trillion dollar construction industry overnight."
The stimulus analysis released today was based in part of a survey almost 1,000 construction firms nationwide conducted by the Associated General Contractors of America over the past three weeks. The survey results were combined with the association's analysis of federal and state agency stimulus activities, and a review of employment data from the Bureau of Labor Statistics.
View the survey results and the association's stimulus impact analysis. The recorded conference call is also available.
The National Green Building Standard is the first residential green building rating system to undergo the full consensus process and receive American National Standards Institute approval. The four threshold levels - Bronze, Silver, Gold, and Emerald - allow builders to achieve entry-level green building, or the highest level of sustainable "green" building incorporating energy savings of 60% or more. Single-family & multi-unit homes, residential remodeling projects, and site developments are all covered in the Standard.
New single-family homes certified to the Standard may qualify to be concurrently certified the Builders Challenge. Learn more about the Builders Challenge and how your green home may qualify.
Published in 2005, the NAHB Model Green Home Building Guidelines were written to serve as a voluntary "baseline" so that NAHB members could easily develop local green building programs. Focusing on new single-family homes, the Guidelines offer three levels of green building - Bronze, Silver, and Gold.
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