Energy- and cost-efficient building design: A look behind the numbers
When designing a residential or commercial building, many factors work in tandem with one another to determine total cost, energy-efficiency and final profit margins for building developers. Whether in the planning phase of a new large-scale construction project or simply renovating a small portion of a home, the latest advancements in technology, such as Ekotrope, make it possible to create the best building at the best cost, eliminating the common mistake of leaving money on the table.With Ekotrope, which can optimize everything from an entire building to simple individual component comparisons, developers can increase profit margins by twenty percent, while meeting code compliance and maximizing energy-efficiency – all at the touch of a button. Such profit gain is near impossible to calculate manually, meaning it’s time for the building community to reconsider the use of spreadsheets, notepads, and other outdated, profit-sucking processes.How exactly are developers leaving money on the table – and how can they get it back? Consider this:
1. Despite a temporary fall in prices since mid-April, a TD Economics report predicts lumber prices will ultimately rise 40 percent by the end of the year, creating a steady increase in the cost of building materials.
2. On average, labor and materials account for 60 percent of the total price on building projects, but by finding the right combination of building materials – from walls and windows, to insulation – and utilizing the right technology, developers can save up to ten percent of construction costs.
3. Greener homes are more appealing to buyers. The Appraisal Institute has released a Residential Green and Energy Efficient addendum to its appraisal forms, meaning energy-saving homes will be appraised at a higher value than ever before. Using Ekotrope’s algorithm, which was developed by MIT professor, Ed Crawley and industry experts, it takes into consideration a home’s HERS Index score and use of Energy Star materials, homeowners can gain a significant amount more in appraisal value.
4. Developers are setting their margin expectations to as low as eight percent of total building price, but by utilizing best-practice technologies, such as Ekotrope, developers can enlarge revenue by 20 percent and increase energy-efficiency up to 40 percent So if you’re a developer, get back the money you’re leaving behind. For more information and a quick tutorial on Ekotrope, please contact us for a free demo today.