Whether one accepts the premise of global warming or not, the market trend towards going green in construction is undeniable. A simple internet search on the issue will return hundreds of hits. For this reason, developers, home builders, and contractors now look for ways to build green in an effort to attract what has become a significant portion of the market.
As has always been the case, American entrepreneurship is leading to break through technologies that make going green more attainable. However, being on the cutting edge can be expensive. Some of the costs associated with it are easily identified, while others lurk in the background. As a result, some planning should be undertaken before including green developments as part of your business model.
Newly created technology often must be purchased at a premium because of the cost associated with developing it. Providing such technology obviously becomes more difficult in the construction of more moderately priced homes because it adds to the project cost. Unanswered questions and unforeseen results also increase risk, and as a result potential cost. Higher insurance premiums to cover problems with these technologies can be hidden to the unsuspecting builder. And what if insurance cannot be purchased for this new type of work? The builder and its subcontractors are left to carry the risk of those problems.
A simple illustration makes the point. Consider that asbestos insulation was once a cutting edge technology. Although an imperfect analogy because it became generally inexpensive, it was once touted as an extremely useful building material because it was easy to install and flame retardant. The once unknown connection between its use and significant health problems has exposed companies that built homes with this material, despite having no knowledge of the health risks at the time the home was built, to potentially expensive litigation costs regarding its use. The cost of defending these suits alone becomes prohibitive if there is no insurance coverage.
The point is a simple one. Going green is a wonderful concept, but there are still many unresolved issues. While we can identify some costs now, others are more difficult to quantify. Going green will cost you green - how much green is dependent on planning appropriately and constructing a long term approach to the concept.
