If you have a vision of buying a parcel of land, designing and building your dream home, and moving into it with your family, this article is for you. The article was developed to help your vision become a reality; without falling into the many pitfalls we have seen others fall into.
Buying land can be the single most important decision that will affect the outcome of your vision. It can be more complicated than buying a new home. A parcel of land may look perfect, but it could come with many surprises such as bad soils, no water, severe encroachments, or proximity to suppliers to name a few. So how do you avoid the pitfalls?
Although your builder or Realtor should have an understanding of pitfalls mentioned in this article, it is recommended you speak to competent tax and legal counsel prior to purchasing a parcel of land.
1 . Understand Your Overall Investment (Budget) Your overall investment in the project will include the land, architecture & design, surveys & inspections, engineering, site work, utilities and construction. Prior to purchasing a home site, you should not only consult with your tax and legal professionals, but also with a reputable builder to help you gauge the overall cost of your vision.
2. Location Not location, location, location as we know it. The further your home site is "off the beaten path," the less expensive the land will tend to be. However, the further away the home site is from suppliers, the more expensive the construction cost and materials will tend to be. The more expensive construction costs and materials could eliminate any cost savings received by purchasing your lot "off the beaten path."
This could pose a problem when you try to resell your home. The further your home is "off the beaten path," the less likely you will receive premium pricing.
3. ZONING & MUNICPAL RECORDING It is important to understand the zoning and use of your property. Is it zoned agricultural, residential, residential multi-family, or for business purposes to name a few. Was the subdivision recorded properly with the governing municipal authority? Is the property in a flood zone? Are there environmental regulations?
Recently, many unqualified developers have subdivided larger parcels of land into smaller home sites. Many errors can be found in the municipal recordings, easements and actual zoning of these properties. Again, we recommend hiring tax and legal professionals.
3. SURVEYS & ENCROACHMENTS Have your Broker negotiate for a survey in purchase agreement. If the Seller refuses to pay for the survey, you should. There are several types of surveys, but get one that will include at least the following:
- Correct property description
- Site Topography (On larger parcels, survey the topography around the building envelope)
- Utility location including cable, telephone, electric, well & septic
- Property Corners
- Encroachments
- Easements
- Fencing
- Driveways
- Streets & Roads bordering the property
- Soil Test hole locations
- Proposed Building Envelope
The survey will answer many questions and might raise others. Most importantly, it will help determine if you are receiving what you expect to receive. Also, provide a copy of the survey to your legal counsel and reputable home builder for review.
4. UTILITIES Utilities are locations on the property that you will hook to for your electrical, telephone, cable, gas, water and sewer. Some home sites might require a well, septic and propane tank.
There are many parcels of land that might not offer the convenience of public water and sewer or might not have electrical or phone to the property. If you require a private well, understand your states regulations on drilling a well. In some areas, wells are not permitted and/or the property might not have access to water. The same goes with public sewer systems. If you do not have access to public sewage, you will need to hire a geotechnical engineer to determine if the soil quality will allow for a septic system.
There are several costs to factor into your budget regarding utilities. We recommend speaking with a reputable builder to help you gauge the availability of utilities and the overall cost associated with them.
5. SOILS Depending on where you're building, it is quite possible that you will require a soil test from a geotechnical engineer. A soil test will determine the type of foundation and sub-floor your new home will require. If the soils test comes back that a home will require caissons with a structural sub-floor, you might want to think twice about purchasing the lot. In many instances, soils can have a major impact on the overall cost of the home. Once you receive your soils analysis, we recommend speaking to a reputable builder to help gauge the impact your soils will have on the construction of your home.
6. TOPOGRAPHY Topography is the natural contours of the land. The topography of your home site will determine the height of the foundation walls. Slight variations in topography can impact the overall cost of your home and vision. In general, the steeper the topography, the more expensive construction will be. However, a flat lot might not allow for a walk-out basement that is part of your vision.
7. ACCESS
Once you receive the topography, make sure you have access to your property. If your home site does not have either an easement (shared driveway) for access to your property, a private road that grants access, or a public road, you might not have access to the property.
Also, if the access is not maintained by a public municipality, you might have shared costs for upkeep of the road. You will also want to check if access to your property has adequate drainage. If not, you might require a culvert or additional site work.
8. Water & Mineral Rights Water and Mineral rights are complicated and need to be analyzed by legal counsel. You should know that upwards of 70% of all mineral rights, at least in Colorado, are not transferred with the property. What does this mean? - In laymens terms, you will own all rights to the surface of your property, but not the minerals below it.
If you purchase a property that requires a well, you will want to have legal counsel or a water right professional analyze the rights you have to the water on the property including but not limited to surface water and aquifer water.
9. The Bottom Line There is much more to know and understand prior to purchasing a parcel of land then can be found in this article. These are a just a few of the surprises to look out for. Hire professionals, including, but not limited to a competent Real Estate Broker, a reputable Home Builder, Legal counsel and Tax counsel to help uncover any more surprises.
Saturday, May 3, 2008
Planning For Your Home
In a world of slap-dash home construction, having a custom or semi-custom home built just for you isn’t something most of the population has experience with. And while it’s an exhilarating adventure that will (hopefully) result in the home of your dreams, if it’s your first time, it can also be overwhelming. To make sure you get your dream home, there are some things you should consider before choosing your home design plan, so think about your wish list and try to determine the practicality of your desires. Once that’s taken care of, work with a designer to find or create the custom home plan that’s right for you. Some of the things you should consider – and work through with the other people who will be living in the home – include:
* Whether you want an open floor plan or a more traditional, divided plan
* How many children will – or potentially could – live in the home? Are in-laws quarters necessary? How many bedrooms and bathrooms do you want?
* How often do you entertain? What are the space requirements of the gatherings? In which rooms will the events usually be held?
* Number of stories and the ease with which you can travel the stairways and halls
* Exterior style – in general. Do you prefer modern or Cape Cod-style homes? Tudor or French Country?
* What construction materials do you prefer?
* Are there views you want to avoid or take advantage of?
* Will your landscape include a raised-bed garden? A swimming pool? Built-in barbecue grill?
* How important is the kitchen? Are you a gourmet who needs a large space for gadgets – or is your idea of cooking popping a frozen dinner into the microwave?
* Do your hobbies require special considerations?
* Do you need CAT 5 cable wiring to get the technology you crave? What about a central vacuum system?
As you go through the process, your custom home plan designer or consultant will ask you hundreds of questions (literally), so it’s a good idea to consider these basics before jumping in. They will quickly narrow your field of options and give you – and your designer – solid ground on which to start. Of course, if you don’t quite know where to start, it helps to study model homes. They will give you a feel for square footage, materials, amenities and ideas for the various ways you can lay out the space and the rooms, so you can at least start working with your designer on a home design plan armed with an inkling of what you want. In the end, practice patience. Deciding on a home – or working with a designer on a home plan – to suit your every need takes time. And patience, knowing what you like and the ability to compromise with your family and your budget are vital.
* Whether you want an open floor plan or a more traditional, divided plan
* How many children will – or potentially could – live in the home? Are in-laws quarters necessary? How many bedrooms and bathrooms do you want?
* How often do you entertain? What are the space requirements of the gatherings? In which rooms will the events usually be held?
* Number of stories and the ease with which you can travel the stairways and halls
* Exterior style – in general. Do you prefer modern or Cape Cod-style homes? Tudor or French Country?
* What construction materials do you prefer?
* Are there views you want to avoid or take advantage of?
* Will your landscape include a raised-bed garden? A swimming pool? Built-in barbecue grill?
* How important is the kitchen? Are you a gourmet who needs a large space for gadgets – or is your idea of cooking popping a frozen dinner into the microwave?
* Do your hobbies require special considerations?
* Do you need CAT 5 cable wiring to get the technology you crave? What about a central vacuum system?
As you go through the process, your custom home plan designer or consultant will ask you hundreds of questions (literally), so it’s a good idea to consider these basics before jumping in. They will quickly narrow your field of options and give you – and your designer – solid ground on which to start. Of course, if you don’t quite know where to start, it helps to study model homes. They will give you a feel for square footage, materials, amenities and ideas for the various ways you can lay out the space and the rooms, so you can at least start working with your designer on a home design plan armed with an inkling of what you want. In the end, practice patience. Deciding on a home – or working with a designer on a home plan – to suit your every need takes time. And patience, knowing what you like and the ability to compromise with your family and your budget are vital.
Thursday, March 27, 2008
Construction Supplies
Any construction supplies like nylon slings, lifting hooks or wire ropes play an important role when moving heavy materials at the construction site. Just as important as these materials, handling it is a priority to all to ensure safety.
Qualified employees using such construction supplies or the construction equipments must be trained and permitted by the Occupational Safety and Health Administration, a federal regulatory agency charged with the enforcement of safety and health legislation for the labor force.
The main hazard in any construction projects is an accident -- that is why you’d see signage in almost every area telling, “Safety First.”
Accidents like dropping the load or unintentionally hit someone with the load or any construction supplies is a risk not worth taking. These risks are life-threatening and financially crippling if you find yourself in this kind of situation, which may halt a construction project.
The best way to identify construction hazards is to keep your eyes open, be alert, and know the capacity of your construction equipments and supplies. You should always be aware of the operating machineries, the supplies and the load. As much as possible, do not overload, make a distance, and make others distant on the way of the moving machine and its load.
In most construction projects, if the construction vehicles or equipments are beyond overlook, there is someone aiding you from afar by using construction hand signals to traffic the flow of the vehicles and the equipments.
As a safety procedure for your construction supplies: monitor and conduct inspection dates. You can time it frequently (daily, weekly, or monthly) or annually; you might also have to step up inspections for equipments or materials nearing its lifespan.
If defects are found, report it immediately for repair (if minor) or replacements. You cannot just look at it and declare that it is ‘fine.’ If you do, you’re violating the law and putting a lot of people and some very expensive equipments or loads at a big risk
Equipment such as powered industrial trucks, cranes, hoists and derricks are used to aid in the movement of materials especially large, bulky or heavy loads. These types of equipment use slings.
In a September 2007 news release by the Occupational Safety and Health Administration in Washington, the released document Guidance On Safe Sling Use entails the safe selection and use of slings. The types of slings mentioned in the report are alloy steel, chain slings, wire rope slings, metal mesh slings, natural and synthetic fiber rope slings, synthetic web slings and synthetic round slings.
Though they're designed to handle heavy loads, slings really are precision equipment. Every part, every fiber, has to be in top condition and used with skill and care or the whole construction project operation can fail – with potentially hazardous results.
If you are involved with any tasks that relate to or with slings, or if you are from Massachusetts looking for high-quality construction supplies, you may visit this slings supplier website for more information.
Qualified employees using such construction supplies or the construction equipments must be trained and permitted by the Occupational Safety and Health Administration, a federal regulatory agency charged with the enforcement of safety and health legislation for the labor force.
The main hazard in any construction projects is an accident -- that is why you’d see signage in almost every area telling, “Safety First.”
Accidents like dropping the load or unintentionally hit someone with the load or any construction supplies is a risk not worth taking. These risks are life-threatening and financially crippling if you find yourself in this kind of situation, which may halt a construction project.
The best way to identify construction hazards is to keep your eyes open, be alert, and know the capacity of your construction equipments and supplies. You should always be aware of the operating machineries, the supplies and the load. As much as possible, do not overload, make a distance, and make others distant on the way of the moving machine and its load.
In most construction projects, if the construction vehicles or equipments are beyond overlook, there is someone aiding you from afar by using construction hand signals to traffic the flow of the vehicles and the equipments.
As a safety procedure for your construction supplies: monitor and conduct inspection dates. You can time it frequently (daily, weekly, or monthly) or annually; you might also have to step up inspections for equipments or materials nearing its lifespan.
If defects are found, report it immediately for repair (if minor) or replacements. You cannot just look at it and declare that it is ‘fine.’ If you do, you’re violating the law and putting a lot of people and some very expensive equipments or loads at a big risk
Equipment such as powered industrial trucks, cranes, hoists and derricks are used to aid in the movement of materials especially large, bulky or heavy loads. These types of equipment use slings.
In a September 2007 news release by the Occupational Safety and Health Administration in Washington, the released document Guidance On Safe Sling Use entails the safe selection and use of slings. The types of slings mentioned in the report are alloy steel, chain slings, wire rope slings, metal mesh slings, natural and synthetic fiber rope slings, synthetic web slings and synthetic round slings.
Though they're designed to handle heavy loads, slings really are precision equipment. Every part, every fiber, has to be in top condition and used with skill and care or the whole construction project operation can fail – with potentially hazardous results.
If you are involved with any tasks that relate to or with slings, or if you are from Massachusetts looking for high-quality construction supplies, you may visit this slings supplier website for more information.
Guideline for Home Building
So you want to build your own home. Have you considered everything you need to in order to undertake this challenge? If you feel you are ready to start home building then read the following eight tips to see if you really are or not. These tips will really help you consider everything that must be considered before you begin building your own home.
Tip #1 Organization
You must be organized in order to build your own home and you need to have everything laid out in a step by step way to help you along the way. Takeoff software will help you stay organized so this is a good investment early on.
Tip #2 Construction Crew
You won’t be hammering every single nail and installing every single faucet by yourself, or at least most won’t be. So, a construction crew is important. Know who to choose to be on your construction team in order to make your home building project a fun and enjoyable one not to mention one that is successful!
Tip #3 Finances
You need to know how much the home will cost so you know what you can afford in regards to style, framework, style, and the like. Use construction estimating software to help you in this area if you are not good at estimating.
Tip #4 Budget
If you will be applying for a mortgage or construction loan you will need to have a very detailed budget. Your construction estimating software will come into play here as well and help you create an estimate and stick to it.
Tip #5 Style
There are a lot of choices to make when it comes to the style of your home. This includes the foundation and everything else. So, be prepared to choose the styles you like best.
Tip #6 The Perfect Plan
A perfect house plan is important if you are building your own home. You will want to know where you want to go and a guide to get you there. Your house plan will work wonders.
Tip #7 Home Structure
If you have a lot of experience building homes then you are probably well aware of home structure and the internal and external elements. If you are not be sure to do your research ahead of time to avoid all potential problems. It is guaranteed you will run into problems if you are not prepared.
Tip #8 Use Quality Materials
You want to use quality building materials in your home so make sure you are aware of where you can find them. DO a little research to find the best quality materials and the best prices.
Tip #1 Organization
You must be organized in order to build your own home and you need to have everything laid out in a step by step way to help you along the way. Takeoff software will help you stay organized so this is a good investment early on.
Tip #2 Construction Crew
You won’t be hammering every single nail and installing every single faucet by yourself, or at least most won’t be. So, a construction crew is important. Know who to choose to be on your construction team in order to make your home building project a fun and enjoyable one not to mention one that is successful!
Tip #3 Finances
You need to know how much the home will cost so you know what you can afford in regards to style, framework, style, and the like. Use construction estimating software to help you in this area if you are not good at estimating.
Tip #4 Budget
If you will be applying for a mortgage or construction loan you will need to have a very detailed budget. Your construction estimating software will come into play here as well and help you create an estimate and stick to it.
Tip #5 Style
There are a lot of choices to make when it comes to the style of your home. This includes the foundation and everything else. So, be prepared to choose the styles you like best.
Tip #6 The Perfect Plan
A perfect house plan is important if you are building your own home. You will want to know where you want to go and a guide to get you there. Your house plan will work wonders.
Tip #7 Home Structure
If you have a lot of experience building homes then you are probably well aware of home structure and the internal and external elements. If you are not be sure to do your research ahead of time to avoid all potential problems. It is guaranteed you will run into problems if you are not prepared.
Tip #8 Use Quality Materials
You want to use quality building materials in your home so make sure you are aware of where you can find them. DO a little research to find the best quality materials and the best prices.
Wednesday, March 12, 2008
Environmental And Green Products Supplies For Homes
With the popularity of "green" products on the rise and the trend not looking to slow down anytime soon, construction products and building techniques that are friendly to the environment are seeing a rapid rise in sales. Let's look at some of the green trends in construction:
From The Ground Up
Green practices can be incorporated from the very beginning of the building process. From the concrete. masonry, beams, doors, windows, mechanical and electrical systems, moisture and heat protection, finishes, appliances, pretty much for any aspect of building, there are green options and choices that can be made.
Flooring
There are many green types of flooring now available. Wood flooring made from wood that has been taken from old or disused buildings has gained more popularity, since this is a smart way to recycle. For new flooring products, green builders can now choose from green choices like cork, rubber and bamboo. New linoleum products are also now available that can be recycled and are less toxic than their predecessors.
Carpet
Carpets are now available that are recyclable, use little or no toxic materials in manufacturing and are also lower in cost. Carpet tiles are a very green choice and are extremely easy to install and replace.
Goals Of Green Building
The main goal of green building is not just to be more friendly to the environment, but also be a healthier place to live for the home's occupants. In every aspect of a green home, non toxic or less toxic materials are employed. Green homes will also blend in better with their surroundings and use much less energy and water.
Advantages
There are many advantages to building and living in a green home. While there may be a bit more upfront cost, over the life of the home, the savings on energy costs alone would more than make up for any upfront costs. More cost savings will arise from energy efficiency, water efficiency, landscaping efficiency and materials efficiency. Also, for very sensitive homeowners, a green home will have used much less toxic or chemical based materials, making a green home much safer and healthier for the owner.
Green Remodeling Trends
Not only is green home construction a hot area, green remodeling has also come to the forefront. Existing homeowners can now incorporate green building practices and materials when they are remodeling their homes. For example, in a typical kitchen remodel, the appliances are all replaced. In the case of a green home remodel, the appliances would all be replaced with energy star efficient appliances. Thus saving energy and money at the same time. In the case of a bathroom remodel, simply replacing a toilet with a newer model toilet will save several gallons of water for each flush, which adds up to a significant water savings over time.
Whether you choose to use green practices to build or remodel for cost savings or environmental reasons, it's certain that green building is a trend that will only continue to grow.
From The Ground Up
Green practices can be incorporated from the very beginning of the building process. From the concrete. masonry, beams, doors, windows, mechanical and electrical systems, moisture and heat protection, finishes, appliances, pretty much for any aspect of building, there are green options and choices that can be made.
Flooring
There are many green types of flooring now available. Wood flooring made from wood that has been taken from old or disused buildings has gained more popularity, since this is a smart way to recycle. For new flooring products, green builders can now choose from green choices like cork, rubber and bamboo. New linoleum products are also now available that can be recycled and are less toxic than their predecessors.
Carpet
Carpets are now available that are recyclable, use little or no toxic materials in manufacturing and are also lower in cost. Carpet tiles are a very green choice and are extremely easy to install and replace.
Goals Of Green Building
The main goal of green building is not just to be more friendly to the environment, but also be a healthier place to live for the home's occupants. In every aspect of a green home, non toxic or less toxic materials are employed. Green homes will also blend in better with their surroundings and use much less energy and water.
Advantages
There are many advantages to building and living in a green home. While there may be a bit more upfront cost, over the life of the home, the savings on energy costs alone would more than make up for any upfront costs. More cost savings will arise from energy efficiency, water efficiency, landscaping efficiency and materials efficiency. Also, for very sensitive homeowners, a green home will have used much less toxic or chemical based materials, making a green home much safer and healthier for the owner.
Green Remodeling Trends
Not only is green home construction a hot area, green remodeling has also come to the forefront. Existing homeowners can now incorporate green building practices and materials when they are remodeling their homes. For example, in a typical kitchen remodel, the appliances are all replaced. In the case of a green home remodel, the appliances would all be replaced with energy star efficient appliances. Thus saving energy and money at the same time. In the case of a bathroom remodel, simply replacing a toilet with a newer model toilet will save several gallons of water for each flush, which adds up to a significant water savings over time.
Whether you choose to use green practices to build or remodel for cost savings or environmental reasons, it's certain that green building is a trend that will only continue to grow.
Influence Of Plastic Products In Home Construction And Supplies
In recent years, the real estate and infrastructure boom in China has stimulated a rapid development in the plastic doors and windows sector. The sector has now become an important pillar in China's plastics industry and significantly lifted its market share. But at the same time, the sector is also facing issues such as varied quality, lack of uniform industry standards and vicious competition.
Plastics industry overview
China's plastics industry has experienced rapid growth in recent years. According to China Plastics Processing Industry Association, during the "10th Five-Year Plan" period (2000-2005), total domestic supply of plastic construction pipes and plastic doors and windows to the Chinese market amounted to 1 million tonnes per year, achieving 45% and 20% market shares respectively. Due to their superior energy saving feature, plastic construction materials have now become the second largest pillar in China's plastics industry, with annual growth rate exceeding 15%. In North-eastern provinces and Inner Mongolia, 40% of the new buildings have installed plastic doors and windows, while the installation rates in Qingdao City and Dalian City are above 80%.
Positive factors for the sector
The following factors have contributed the rapid development of China's plastic doors and windows sector in recent years. First of all, the newly announced Catalogue Guidance for Foreign Investment Industries last year encourages foreign investments in plastic construction materials projects, such steel replacement and timber replacement materials. This has brought about an excellent opportunity for the plastic doors and windows sector, hence fast developments.
Also, the continued real estate boom and infrastructure investment surge have provided a huge demand market for plastic doors and windows. China currently has building construction projects of approximately 2.1 billion square metres per year, equivalent to the sum of European and American volume. There are about 500 million square metres doors and windows construction pipeline per year in China, four times of the European annual volume.
Third, according to the "11th Five-Year Plan" (2006-2010), in the next five years, China has to achieve construction energy saving target of 101 million tonne coal-equivalent. Therefore, total energy saving construction will exceed 2.16 billion square metres, including new construction and existing building renovation of 1.6 billion and 560 million square metres respectively. The energy saving materials and technologies market for these projects could amount to several thousand billion dollars, providing huge potential for energy saving and environmentally friendly plastic construction materials.
Issues in the plastic doors and windows sector
Firstly, the Chinese government has adjusted its foreign trade policy since 2006, and changed from encouraging exporting of plastic products to limiting their exports. From September 2006 to July 2007, China reduced its export rebates for plastic products from 13% to 5%. And in July 2007 the Ministry of Commerce and China Customs officially included plastic products into the export-restricted category of processing trade products. Since then, many plastics companies have significantly reduced their export volume, while importing of plastic products continues to rise.
Secondly, in recent years, international crude oil prices has been climbing and pushing up raw materials prices, causing a big blow to the plastic processing industry. On one hand, companies have to absorb cost pressure from upstream suppliers. On the other hand, the market for major plastic products are highly competitive, so it will be hard for plastic producers to pass on costs, hence searching for new profit growth points.
China's plastic doors and windows sector is big, but compared to other countries, their market shares are still relatively low in their home market. Their production output level is still low, while energy consumption is high. China's per unit energy consumption of residential constructions is currently 3 times of developed countries', while doors and windows energy consumption and air leakage of doors and windows are 1.5-2.2 times and 3-6 times of developed countries' respectively.
And home buyers' doors and windows consumption is still insufficient in China. Chinese home buyers normally focus on construction quality of the property, but pay much less attention to doors and windows. This is because most people don't have enough knowledge about doors and windows. And many people also consider doors and windows as supplementary products to the property, hence indifference to their quality. For an apartment valued at 10,000 yuan per square metre, the equivalent expenditure on doors and windows in developed countries would be 1,000 yuan, while it is only 300 yuan in China.
There is also a lack of uniform plastic industry standards in China. Currently China has not yet had a housing price-related doors and windows standard. The 5 major performance criteria for doors and windows, namely wind-pressure proof, air leakage, rain leakage, thermal insulation and sound insulation, are normally tested on individual samples, while the pass rates after being installed on properties are usually low. This is because most home buyers don't have the capability and means to test the 5 criteria on finished properties, and there are little regulatory restraints on the products. Therefore, many developers and builders may play tricks on doors and windows in order to save costs.
Finally, price competition within the sector is severe. As China listed plastic doors and windows as one of the key construction materials to develop, their production and applications have gained rapid growth in the last 10 years. But the development surge also created a supply surplus situation. At present, China's annual demand for plastic doors and windows is about 1.5 million tonnes, but their annual output already reached 3 million tonnes, resulting in vicious price-cutting competition. There are rampant product substituting and jerry-building practices in the industry, negatively impacting the reputation of plastic doors and windows. And the price wars have also lead to widespread losses among China's plastic doors and windows producers.
In conclusion, under the continuing real estate and infrastructure boom, there will be a huge demand market for plastic doors and windows in China. And the government's energy saving policy could also provide substantial investment value to this sector. But the sector is also affected by short to medium term issues, which need to be practically resolved, in order to improve producers' long term sustainability.
Plastics industry overview
China's plastics industry has experienced rapid growth in recent years. According to China Plastics Processing Industry Association, during the "10th Five-Year Plan" period (2000-2005), total domestic supply of plastic construction pipes and plastic doors and windows to the Chinese market amounted to 1 million tonnes per year, achieving 45% and 20% market shares respectively. Due to their superior energy saving feature, plastic construction materials have now become the second largest pillar in China's plastics industry, with annual growth rate exceeding 15%. In North-eastern provinces and Inner Mongolia, 40% of the new buildings have installed plastic doors and windows, while the installation rates in Qingdao City and Dalian City are above 80%.
Positive factors for the sector
The following factors have contributed the rapid development of China's plastic doors and windows sector in recent years. First of all, the newly announced Catalogue Guidance for Foreign Investment Industries last year encourages foreign investments in plastic construction materials projects, such steel replacement and timber replacement materials. This has brought about an excellent opportunity for the plastic doors and windows sector, hence fast developments.
Also, the continued real estate boom and infrastructure investment surge have provided a huge demand market for plastic doors and windows. China currently has building construction projects of approximately 2.1 billion square metres per year, equivalent to the sum of European and American volume. There are about 500 million square metres doors and windows construction pipeline per year in China, four times of the European annual volume.
Third, according to the "11th Five-Year Plan" (2006-2010), in the next five years, China has to achieve construction energy saving target of 101 million tonne coal-equivalent. Therefore, total energy saving construction will exceed 2.16 billion square metres, including new construction and existing building renovation of 1.6 billion and 560 million square metres respectively. The energy saving materials and technologies market for these projects could amount to several thousand billion dollars, providing huge potential for energy saving and environmentally friendly plastic construction materials.
Issues in the plastic doors and windows sector
Firstly, the Chinese government has adjusted its foreign trade policy since 2006, and changed from encouraging exporting of plastic products to limiting their exports. From September 2006 to July 2007, China reduced its export rebates for plastic products from 13% to 5%. And in July 2007 the Ministry of Commerce and China Customs officially included plastic products into the export-restricted category of processing trade products. Since then, many plastics companies have significantly reduced their export volume, while importing of plastic products continues to rise.
Secondly, in recent years, international crude oil prices has been climbing and pushing up raw materials prices, causing a big blow to the plastic processing industry. On one hand, companies have to absorb cost pressure from upstream suppliers. On the other hand, the market for major plastic products are highly competitive, so it will be hard for plastic producers to pass on costs, hence searching for new profit growth points.
China's plastic doors and windows sector is big, but compared to other countries, their market shares are still relatively low in their home market. Their production output level is still low, while energy consumption is high. China's per unit energy consumption of residential constructions is currently 3 times of developed countries', while doors and windows energy consumption and air leakage of doors and windows are 1.5-2.2 times and 3-6 times of developed countries' respectively.
And home buyers' doors and windows consumption is still insufficient in China. Chinese home buyers normally focus on construction quality of the property, but pay much less attention to doors and windows. This is because most people don't have enough knowledge about doors and windows. And many people also consider doors and windows as supplementary products to the property, hence indifference to their quality. For an apartment valued at 10,000 yuan per square metre, the equivalent expenditure on doors and windows in developed countries would be 1,000 yuan, while it is only 300 yuan in China.
There is also a lack of uniform plastic industry standards in China. Currently China has not yet had a housing price-related doors and windows standard. The 5 major performance criteria for doors and windows, namely wind-pressure proof, air leakage, rain leakage, thermal insulation and sound insulation, are normally tested on individual samples, while the pass rates after being installed on properties are usually low. This is because most home buyers don't have the capability and means to test the 5 criteria on finished properties, and there are little regulatory restraints on the products. Therefore, many developers and builders may play tricks on doors and windows in order to save costs.
Finally, price competition within the sector is severe. As China listed plastic doors and windows as one of the key construction materials to develop, their production and applications have gained rapid growth in the last 10 years. But the development surge also created a supply surplus situation. At present, China's annual demand for plastic doors and windows is about 1.5 million tonnes, but their annual output already reached 3 million tonnes, resulting in vicious price-cutting competition. There are rampant product substituting and jerry-building practices in the industry, negatively impacting the reputation of plastic doors and windows. And the price wars have also lead to widespread losses among China's plastic doors and windows producers.
In conclusion, under the continuing real estate and infrastructure boom, there will be a huge demand market for plastic doors and windows in China. And the government's energy saving policy could also provide substantial investment value to this sector. But the sector is also affected by short to medium term issues, which need to be practically resolved, in order to improve producers' long term sustainability.
Friday, February 22, 2008
Support Facility to Construction Services
Many people are curious of the construction industries. This seems to be a very lucrative field to do business considering the growing demands among people to build houses or improve their present households. However, starting a new business is not that easy, especially if you do not know much about how things operate and go about. Thus, it pays to get to know the construction industry more. This way, you can be ensured of doing the right option in every step of the way.
Planning is the number one key to win it over in the world of construction industries. Truly, there is always a demand for the services of people to construct houses and buildings. However, there are also costs and responsibilities entailed. It is important to make sure that you know how to handle properly all the elements.
It is important to know the amount of investment that you will need to support a construction business. The construction industries are very peculiar about resources, materials and tools they use in doing the business. The outcome of the whole effort depend heavily on various factors that you have to secure properly. The construction industry cannot afford to make haphazard outputs or else torts and damages will proliferate.
The construction industries are also productive when the people in charge know their timing well. First of all, most of the construction supplies have varying rates depending on the time of the year and the demand of the people. Thus, knowing the right timing on securing the construction supplies is a crucial element in succeeding in this industry.
There is another consideration that can be addressed by timing. This is when there is high demand from the market. The construction industries find itself having more purposes when a calamity strikes a locality. This devastating event is something that we do not want to happen. However, it is at this time that the service of the construction industries is highly demanded. It is through the aid of this industry that households are rebuilt. Thus, those people who want to take a shot at this field of business can grab the opportunity during these instances.
Hiring the Right People
A peculiar thing about the construction industry is that each company is composed of a big group of people. This is something where one has to invest on to get the right people with the right skill and experience. This is not an ordinary online business that can be done by one person with just a computer. Businesses in the construction industry rely heavily on a pool of people who can contribute to the endeavor.
Building residential homes, offices, hospitals and schools is no minor venture. Thus, construction industries do their best to plan properly the blueprint of the project in paper and to hire the right people to execute the whole thing. Construction industries are always requiring skilled professionals who can help in every stage of the project. This is why you must not be surprised when some construction projects can be very costly. The details of constructing a simple house require meticulous attention to details.
Considering the points given above, it is evident that joining the construction industries is a very decision that you have to prepare for. It may sound challenging but it is a possible venture. Just be sure to take account of every detail to ensure quality work and success in this field.
Planning is the number one key to win it over in the world of construction industries. Truly, there is always a demand for the services of people to construct houses and buildings. However, there are also costs and responsibilities entailed. It is important to make sure that you know how to handle properly all the elements.
It is important to know the amount of investment that you will need to support a construction business. The construction industries are very peculiar about resources, materials and tools they use in doing the business. The outcome of the whole effort depend heavily on various factors that you have to secure properly. The construction industry cannot afford to make haphazard outputs or else torts and damages will proliferate.
The construction industries are also productive when the people in charge know their timing well. First of all, most of the construction supplies have varying rates depending on the time of the year and the demand of the people. Thus, knowing the right timing on securing the construction supplies is a crucial element in succeeding in this industry.
There is another consideration that can be addressed by timing. This is when there is high demand from the market. The construction industries find itself having more purposes when a calamity strikes a locality. This devastating event is something that we do not want to happen. However, it is at this time that the service of the construction industries is highly demanded. It is through the aid of this industry that households are rebuilt. Thus, those people who want to take a shot at this field of business can grab the opportunity during these instances.
Hiring the Right People
A peculiar thing about the construction industry is that each company is composed of a big group of people. This is something where one has to invest on to get the right people with the right skill and experience. This is not an ordinary online business that can be done by one person with just a computer. Businesses in the construction industry rely heavily on a pool of people who can contribute to the endeavor.
Building residential homes, offices, hospitals and schools is no minor venture. Thus, construction industries do their best to plan properly the blueprint of the project in paper and to hire the right people to execute the whole thing. Construction industries are always requiring skilled professionals who can help in every stage of the project. This is why you must not be surprised when some construction projects can be very costly. The details of constructing a simple house require meticulous attention to details.
Considering the points given above, it is evident that joining the construction industries is a very decision that you have to prepare for. It may sound challenging but it is a possible venture. Just be sure to take account of every detail to ensure quality work and success in this field.
The Best Heavy Construction Equipments
If you own a small business, or have a large property you need to care for, you may be in need of some heavy equipment, but you don’t necessarily have the budget to buy brand new stuff. This problem is easily solved, however, if you can find quality used construction equipment. For the most part, you shouldn’t have trouble finding any, but you do want to be careful when you buy. Just like buying a car, you should give used construction equipment a good once over before you make your final purchase.
Some companies only use their equipment for a short time, and then buy newer models. If you aren’t picky about extras and new features, you can find used construction equipment that is in good shape and functional. Sometimes a business may go under, and they need to get rid of their stuff, or you may find great used construction equipment at an auction. You may have to do a little research to find out where auctions and sales are being held in your area, but you should be able to find something nearby.
When looking over used construction equipment, it is a good idea to have a mechanic with you. Even better, have someone who can fix construction equipment. That way, you know they understand how these things work, and will be able to tell you if the used construction equipment you are looking at is worth the asking price, or if there is a major defect that you should be concerned with. You want to make sure the engine is in good working order, that the frame is straight and un-compromised, and that all moving parts are working well and without defect.
You can look online for used construction equipment, but remember, you may have to pay a lot to get that equipment to your home or business. You can’t slip a bulldozer in a box and ship it via the post office, so in most cases, you will have to go get it yourself. This may mean hiring someone with a truck and trailer to pick it up for you. If you think you have found a good deal, remember to add the cost of getting the used construction equipment shipped or picked up to the total cost. With large items like these, you might be better off looking locally to avoid huge moving and transport costs.
Some companies only use their equipment for a short time, and then buy newer models. If you aren’t picky about extras and new features, you can find used construction equipment that is in good shape and functional. Sometimes a business may go under, and they need to get rid of their stuff, or you may find great used construction equipment at an auction. You may have to do a little research to find out where auctions and sales are being held in your area, but you should be able to find something nearby.
When looking over used construction equipment, it is a good idea to have a mechanic with you. Even better, have someone who can fix construction equipment. That way, you know they understand how these things work, and will be able to tell you if the used construction equipment you are looking at is worth the asking price, or if there is a major defect that you should be concerned with. You want to make sure the engine is in good working order, that the frame is straight and un-compromised, and that all moving parts are working well and without defect.
You can look online for used construction equipment, but remember, you may have to pay a lot to get that equipment to your home or business. You can’t slip a bulldozer in a box and ship it via the post office, so in most cases, you will have to go get it yourself. This may mean hiring someone with a truck and trailer to pick it up for you. If you think you have found a good deal, remember to add the cost of getting the used construction equipment shipped or picked up to the total cost. With large items like these, you might be better off looking locally to avoid huge moving and transport costs.
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