If you’re around home building for even a short time, you’ll hear the term R-Value a lot. So what is R-Value, and why is it important? How can you get in trouble if you ONLY focus on R-Value? What is the difference between Nominal and Effective R-Value? We answer these questions below.
Why is R-Value important: You likely know what it is in the senes that it is referring to insulation. You’ve heard the term and understand that insulation keeps us warm in the winter and cold in the summer, but not all R-Value is the same. There is a difference between effective and nominal R-Value and it definitely depends on how it’s installed! R-Value is the ability of insulation material to resist heat (R stands for resistance). It’s calculated by getting the temperature difference per unit of heat flux to sustain one unit of heat flux between the warmer and the colder surface of material, under steady state conditions. So OK, but what does this really mean for you? For most purposes, it’s not really important to understand the calculation of how the R-value was arrived at. What is important is making sure that you understand how the R-value will affect your home or project. The key term to consider here is “steady state conditions”. I don’t know about where you live, but where I live, the conditions are not in a steady state. There is far more going on outside the home than there is inside! For example if you have R-22 batt fibreglass inside your basement and that basement floods and your insulation gets wet, is that insulation going to still be R-22? No, it’s not going to retain its R-value (and you may have issues with mold etc. as well). Or perhaps you have R-50 cellulose blown into your attic and it settles over time. Maybe your roof gets wet. Maybe you have insulation on your exterior with an R-10 value but no air barrier, and the wind is whistling at 50km/hr. All of these are examples of where your R-Value will be affected, because the conditions are not in a steady state. We don’t build in steady state conditions. Installation is also important! If you squished an R-22 batt down too much, you would also affect the R-Value and it would not perform optimally. Make sure that whoever is installing the insulation knows what they’re doing and ensure that they’re installing it properly. The point I’m trying to get to here is that it’s about more than just the R-Value of the insulation. It's crucial to understand your building, the building science, and the conditions you’re building in. Consider this for a moment: If you had -20 degrees Celsius outside and you have a big down jacket on. Imagine the wind is howling and you turn to face the wind and open your jacket zipper and let that wind in. Would it matter how much down insulation I had in my jacket to keep me warm at this point? No, because insulation is not enough, you’d need to make sure you have that jacket zipped up. You also need to focus on other things like airtightness, for example. Your home works as a system. If you only focus on insulation, that can get you into trouble and seriously impact your results. The last thing we’ll get into here is Nominal R-value vs. Effective R-value. Nominal R-value is essentially the estimated R-value of what, say, your wall assembly should be when you consider all the materials. Effective R-value is how well it actually performs! For example, let’s consider the 2X6 wall with R-22 batts in it, and you build the entire wall with the standard stud-insulation-stud-insulation assembly. The nominal R-value of that wall may be R- 22, however the effective R-value would not be. Why is that? If you were to take all of the wood in that wall and push it to one end, and put the insulation on the other side you would see that the wood probably takes up about 20% of that wall construction. 20% of your wall does not have the same R-value as the insulation. Your wall would have an effective R-Value of approx 17.6, you’re not getting the full R-22. This means that the best way to get a higher effective R-value is to do it from the outside of your home, (the “jacket” so to speak). This would cover up the studs (which can bring other complications re: cladding etc. but more on that in another post) and this is the best way to add insulation and comfort to your home. Keep in mind, there are many other factors that effect comfort, efficiency and the health of a home. If you’re a builder/contractor, know that it is your responsibility to make sure your customer gets the best possible product for their budget and priorities. As a homeowner, you want to make sure that you bring the right team on, and that your team is working together to get the best possible products so that you can make sure you get a healthy, comfortable, efficient home for you and your family. While we’re on the topic, check out work with our favourite ROCKWOOL products on the Three Day Cottage series, a Net Zero ready cottage with a nominal R-value of R-30 for the walls and R-64 for the attic! Spreading the word is a big part of the WHY behind what we do at The Conscious Builder.
If we’re going to really build a healthy future, we’re going to need a whole lot more builders on board with the vision of building for the long term vs. the short. If we want this for everyone, we’re going to need healthy, thriving people with healthy businesses building better homes and buildings of all kinds. We’re going to need high standards and good habits to make lasting, positive change. I have learned a lot in 2 decades in the industry and over a decade building healthy, comfortable, efficient homes (sometimes the hard way!) There is always more to learn, but I want share what I’ve learned to help accelerate your growth and the growth of your business. That’s where The Conscious Builder Academy comes in. We are getting questions from all over the world. More people every day are looking into sustainable building standards and considering building better. We are busy putting our most valuable knowledge and lessons in one place, to help you build and thrive, sustainably. I’m so excited to start sharing that I’ve got a gift for you, it’s a free short course on our new school www.consciousbuilderacademy.com called “THE TOP 5 THINGS I WISH I KNEW: When starting a construction business”. If you’re starting any business, this one could save you time, headaches, and a lot of money. It would have for me! The link's in the bio, go check it out. Let me know what kind of materials you’d like to see us cover in the future! We’ve already got our next course coming soon (go to the academy to see what it’s about!) TL;DR Free stuff! Love the planet! Join us! "To make sure that everybody in the world has a healthy, comfortable and efficient home to live in."
You already know we build beautiful, healthy, efficient, comfortable custom homes. So how does that help those who can’t afford to build, or even buy? How does one company make change? Our strategy is threefold: First, We build homes that people want. Homes that set a higher standard for the entire industry. We use the best and most conscious products we can find, provide top quality workmanship, and choose projects which show that luxury and pleasure go hand in hand with efficiency and health. Building a home that is better for you and the environment is setting higher standards! We (and our clients) vote for this by using these products and practices with the intention that, as they become more common, they will also become more accessible. We want to help those who are building, do it in a way that will set a precedent. (It is also a great pleasure to build sustainable, beautiful things with care.) Second, we help where we can to enrich the communities around us. One of our favourite team building activities is volunteering to help build or improve facilities that help those in need and support their community. Third, we educate. We have learned so much over the decades. We know we can’t build it all and we want to share everything we know, because there is so much work to be done! The world needs more forward thinking, environmentally conscious and ambitious builders who are excited to add momentum to a new path for the industry, and help make energy efficient homes and quality retrofits the norm. Join us. There are a lot of things that need to happen in order to have a project move from an idea to completion. The portion that we take care of as a General Contractor and Custom Home Builder is Project Management and Site Supervision. Yes, we also do a lot of carpentry work in-house but that is separate from what we're talking about here. That work could also be done by a subcontractors but we choose to do some of the important work ourselves in order to control the quality and keep the projects moving along nicely. Included Here is a list of what could be included for the Project Management and Site Supervision of your project:
Not all of the items above are necessarily required for each project but it is what we would take care of when needed. NOT Included Simply put, we are not Designers, Architectural Technologists, Architects or Engineers. We are carpenters and have been trained as such just like the aforementioned in each of their particular categories. We believe a successful project requires a great team to fill in all the requirements and we are filling in the category of Project Management, Site Supervision and Carpentry. We are more than happy to provide input throughout the design process as it relates to constructibility but we will not do design work (nor do you want carpenters to do designer work). Here are some examples of things that would need to be provided by somebody else:
Will we offer input on the items above? Absolutely! But the input is in response to the question "Do you think we should go with option A or option B?" as opposed to "What size vanity should we put in, what colour should it be and which faucet should we choose?" Costing It's important to note that we're happy to get costing for you for options you are considering. All the items listed above that need to be provided by somebody else may require some input from us on costing in order for you to make a decision and we understand that. So when the options need to be narrowed down and cost is one of the factors, tag us in! Get Ahead The more we have designed and planned out ahead of time, the smoother the project will go. Does this mean everything needs to be decided on before construction starts? No. In fact some things may not be able to be decided on until later.
For example, we don't need to know your paint colours at the time of framing but we will need to know where you plan on mounting things to the wall so that we can include backing where required. You will also want to know where you are going to place furniture so that the designer can complete the electrical plan for the electrician before we insulate and drywall. As you can see, there are a lot of things to think about and many team members required. This is not a one-man operation. We have multiple people involved with each project from our company alone and we pull on the experience and knowledge of our subcontractors as required. More often than not, we are asked to price a project with little to no details. We may get a question like "How much will it cost to build a 2,500 square foot bungalow?" or "How much to renovate my kitchen?" If we're lucky, the best plans we'll get are plans that say Issued For Pricing which have very little detail to actually get accurate pricing. It's impossible to give an accurate price without a full set of drawings and complete set of details and selections. In renovations it's even more difficult as we often don't know what we're going to uncover until we get into the project. So why set this expectation? Why risk setting yourself up for disappointment? As a homeowner, we understand that price is important and that it is difficult to commit to a contractor without seeing a price. On the same hand, if one contractor is quoting $250,000 for a project and another is quoting $300,000, this is likely a mistake somewhere and going for the cheaper option is likely not going to pan out in the end (nor does it guarantee that the project will actually be cheaper). This post is meant to open your mind to a new way of thinking about your project. It's not meant to convince you to work one way or another, it's simply information that you can use so that you can make a conscious decision about what is best for you. Two Types of Contracts In our years of construction, we have used a variation of contracts but they have all worked into two different categories:
The Cost of Business Before we get into the differences between the two contracts, it's important to understand that there is a cost to doing business. That means that it costs money in order to be in business. For example, if you work in an office, there's a cost to keeping that office running as well as keeping you as an employee. On top of paying your salary, the business also needs to pay for your benefits, the lease and/or maintenance of the building, the utilities, the computers, the desks, the chairs, the cleaning, insurance, taxes, loans, interest, vehicles, software, hardware, supplies, subscriptions and so forth. That means that your "cost" (meaning the cost to the company) may be $35/hour but the company also needs to recoup all the other costs that are associated with keeping you paid. As a contractor it is the same. There is a cost to being a contractor in business. There are things required in order to stay in business and continue to deliver outstanding quality and service. (Yes, there are a lot of contractors who do not understand this but that is why a lot of them go out of business. And that's not good for the industry or for the homeowner.) Now, whether those costs of business are hidden in the Fixed Price Contract or out in the open of a Cost-Plus Contract is up to you to decide what makes you feel more comfortable. The Differences Here are some differences between the two different types of contracts. Whether or not they are pros or cons are up to you to decide. Transparency: Cost-Plus is financially transparent for the project because all financials for that project are shared with the homeowner whereas a Fixed-Price Contract does not require the contractor to share any financials. As an example, if a toilet costs the contractor $400 and the fees in Cost-Plus Contract work out to total a 30% markup, then you know that toilet will be $400 + 30% which equals $520 (plus applicable taxes). In a Fixed Price Contract there is no requirement to share the cost of the toilet so the contractor could charge you $700 (plus applicable taxes) if he chooses to. Ultimately that 30% needs to be worked into the price somewhere. Whether it's hidden or out in the open is the difference. Product Warranties: As part of our contracts, we offer a 3-year workmanship warranty (New Homes have a 7-year Tarion warranty). Outside of the workmanship warranty, there are also products that will have warranties. With Cost-Plus you will have a copy of every receipt and invoice for everything for your project. With a Fixed Price you will not receive any of those receipts or invoices. Any product issues you have will need to go through the contractor as they will have the original receipt. Financials: Cost-Plus may seem as though the financial risk is on the homeowner, however, if the Fixed Price Contract does not include everything or anything is unclear, there is the risk of Change Orders for an undetermined amount. If the contract is tight and the work is very clear, a Fixed Price Contract could be the best option. If there are a lot of uncertainties or things are not detailed extremely accurately, the Cost-Plus Contract may be the best option. Schedule: It may seem like a Fixed Price Contract has the most incentive for the contractor to stay on schedule in order to hit milestones and receive payments, however, there is no benefit to a contractor taking longer for a Cost-Plus Contract either. It's always beneficial for any contractor to get in, do the work as quickly as possible and move on to the next project. Whether it's a Fixed Price or Cost-Plus, there is usually a fee for the project management and taking longer on a project is not necessarily going to increase this fee which means lost money to the contractor in either case. Which Contract Does TCB Use? For the last couple of years we have only used the Cost-Plus Contract. Does this mean we would not do a Fixed Price Contract? No. We would be happy to do a Fixed Price Contract however we would need a lot more details than what we usually get at the beginning of a project. That being said, we understand that homeowners need to see a price. It's hard to understand how a 2,500 square foot home will cost $900,000 until the price is broken into categories. Knowing this, when we are contacted at the early stages, we can put together a rough estimate which shows where costs could go depending on the final design, details and selections. This, to us, is the starting point. From here decisions need to be made in order to address as many of the project priorities as possible. Which Contract Is Best For You? That's up for you to decide. No matter which route you go, you want to make sure you feel comfortable working with your contractor. Whether it's a Fixed Price or a Cost-Plus Contract, there are going to be unexpected costs due to changes and/or site conditions. It's a reality of renovating and building custom homes. It requires a lot of work and the lines of communication need to be open between everybody involved when these things happen.
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