Industry news
Bringing It All Back Home 2011/03/01
COSTS AND BENEFITS
There are certain factors that make deconstruction difficult or cost-prohibitive, such as the time involved in hand dismantling as opposed to using heavy equipment. What a trackhoe operator and a dump truck driver can do in a couple of days would take a crew of six deconstructionists a couple of weeks.
With remodeling projects such as interior strip-outs, pop-tops, and add-ons, however, hand dismantling is usually required, because removing a roof or knocking down some walls while leaving others intact is not possible with heavy equipment. In these cases, deconstructionists would systematically unbuild the areas to be removed by cutting, prying, and unfastening reusable components, as opposed to smashing everything with a sledgehammer so that it fits in a trash container. Deconstruction is about leverage, not impact—it’s Archimedes, not Hercules.
THE ECONOMICS OF DECONSTRUCTION The example below is a composite based on actual jobs and is used here to make an economic comparison between deconstruction and demolition. This composite is a single story, 2200 square foot house plus garage, with 3 bedrooms, 2 baths, raised foundation, composite shingles, single-paned windows, carpeting, hardwood floors, and a 12 x 40 wood deck. The costs do not include removal of concrete slabs, sidewalks, foundations, or asphalt, but do include the site being left in a rake clean condition (no debris). In the machine demolition scenario, the owner pays $10,100, but in The ReUse People (TRP) deconstruction scenario, the homeowner receives $4,702 in after tax benefits. In other words, the owner would be financially better off to the tune of $14,802 ($4,702 received in tax benefits vs. paying $10,100 in demolition costs). Now for the disclaimers: Figures vary depending on location, age, and condition of the home and materials, topography, type of siding and interior walls, distance from the closest TRP deconstruction contractor, landfill rates, etc. Still, the economics almost always favor TRP deconstruction over demolition.
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TRP Deconstruction |
Demolition |
Physical lowering of house |
$17,238 |
$6,000 |
Disposal of trash and debris |
$4100 |
$4100 |
Appraisal of salvaged materials |
$3000 |
$0 |
TOTAL COSTS |
$24,338 |
$10,100 |
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Donation value* |
$88,000 |
$0 |
Tax savings* (after-tax value of donated materials) |
$29,040 |
$0 |
TOTAL COSTS |
$24,338 |
$10,100 |
After-tax benefit |
$4702 |
$0 |
Out-of-pocket cost |
$0 |
$10,100 |
*Total materials (lumber, plywood, cabinets, plumbing and electrical fixtures, doors, windows, etc.) would generally appraise for $77,000 to $112,000 in good usable condition. Assuming a tax bracket of 33 percent (federal only—this will be larger in states with an additional income tax), the after-tax cash value, based on a typical appraisal value of $88,000, is $29,040. The after-tax difference between the two methods is $14,802—not counting the “feel good” factor. |
Deconstruction will almost always be more expensive than demolition. In a dollar per square foot analysis, demolition costs range from $4 to $6 per square foot and a full deconstruction costs about twice that.