LONG TERM OR SHORT TERM...which is the better plan?

A new standard has been delved out by the U.S. General Services Administration (GSA), ALL new construction and major renovation projects must meet LEED Gold certification. This new regulation has created heated debates on both sides of the issue. The reason? MONEY

It's safe to say that everyone agrees that being more efficient with one's energy consumption is advantageous in the long term, but at what price up front? This simple question is easily answered using a Life Cycle Cost Analysis (LCCA). One simply calculates the up front cost of using the more efficient system, subtracting the cost savings over a specified period of time, and if the number is negative then the more expensive up front cost system actually saves you money.

The problem with the new regulation, is that this LCCA is not being taken into account. This means that there are some projects which would cost less money in the long term by using more conventional, less efficient systems. In order for one to truly appreciate the situation, imagine if you bought a home anticipating only being in that home for 5 years. Would you spend extra money on a roofing shingle because it'll last 30 years rather than 20 years? The answer is no. It doesn't make economical sense. While the effort on this new program should be applauded for it's intentions, good intentions do not equal good methodology. Perhaps in the future our elected officials will take into consideration the whole picture before they jump on the bandwagon of the latest ideas and concepts, performing their due diligence and critically question each and every program before increasing the spending of limited tax dollars.

http://archrecord.construction.com/news/daily/archives/2010/12/101207leed_gold_required.asp

- Design is what you make it.

MONEY, HOUSING, CHILD EDUCATION: WHERE DOES ONE MOVE?

It's no secret that the suburbs within the I-95 belt in the Boston area are extremely expensive (at least in the towns everyone says are the towns you should live in). The bigger question is, does the town and school systems make for a successful education and child, or is it the influence at home that determines the child's success?

Many argue that if you can stretch your financial limits to get into one of the "elite" towns you should do that because you'll not only get superior teachers, but your child and yourself could "rub shoulders with important people". Now call me a simple Midwestern boy, but there is more to being successful than surrounding yourself with people of wealth. Just because you get into one of the so-called "elite" school systems, doesn't mean you are guaranteed a superior education for your child or that they'll go on to a successful career and life. I believe the influence that comes out of one's home plays a more significant role through parental educating and encouragement. Teachers are wonderful and educated people, however I believe the sincere acknowledgment and love shown from a parent is more motivational than anyone in a school system.

Bottom line: do the best you can, provide the best you can, and be proud of what you're able to give back to your family. Not everything is measured in dollars and cents, in many ways those items you can't buy are more valuable than the ones you can.

Here's a great article outlining the trials and tribulations of buying a home in the Boston market when a major consideration revolves around the school systems.
http://www.boston.com/realestate/news/blogs/renow/2010/12/should_you_stre.html

- Design is what you make it.

Talent, Talent, Where hast thou gone?

The construction industry is in flux to say the least. The talent pool should be rich with desperate, hungry workers...so is it? Many companies are finding these times frustrating, not only in finding new business to stay busy, but also in finding reliable valuable employees to help give the company an edge up on the competition. The dilemma seen everywhere is that the most valued, qualified people are still gainfully employed and swaying them to move companies in a time of financial flux is difficult because of the uncertainty of their new job being a permanent solution. The old adage, "last in, first out" is seen as a deterrent on switching positions.

Many employers are finding themselves in a difficult predicament to offer more lucrative, not less, benefit packages and wages in order to acquire the best talent. So while unemployment is high, finding additional employees to allow companies to keep moving forward and increasing revenue is a truly arduous task. Here is a link to a well written article describing what I just prefaced.

http://www.kimmel.com/construction/const_newsletter/Dec10_Newsletter_Web.cfm

- Design is what you make it.

Value is in the Knowledge

Typically I don't write too much strictly about dollars and cents but found this article about Real Estate Taxes with a town by town breakdown. This is very beneficial information for anyone looking at moving and purchasing a home in Massachusetts. The great mortgage gods help you to believe that your monthly payments will be the same for 30 years, while that may be accurate on your mortgage, they tend to help you ignore your real estate taxes because those will go up and that doesn't help them close the deal on your loan. Here's a link with the current tax information which could help you in deciding whether you should go to the town you love or a nearby town with a lower tax base.

http://www.boston.com/news/local/massachusetts/graphics/08_22_10_property_tax/

- Design is what you make it.

Importance of Contracts - Business is Business

Business partnerships are vastly different today than in years past. The old "handshake and a smile" doesn't exist as people more and more go back on their verbal contracts. Verbal contracts are difficult to prove without hard evidence which is why today it's always best to have everything in writing. Every detail needs to be spelled out so you can avoid the pitfalls that occur so often when one party "trusts" the other party to do the right thing. Once money gets involves, many people have difficulty doing what is morally or ethically the correct thing and choose to do what will financially benefit them most.

Case in point: Office dA, renown architecture firm in Boston which sees it's two partners in court battling over the firm, money, and rights to acknowledgment of various projects. The two partners have worked together building this firm to great heights for over 20 years, yet they are seeing some major problems because Nader Tehrani assumed Monica Ponce de Leon would do the right thing when he vested over control of the firm to her by allowing her to have 51% share in order to compete for projects that are only open to "Women Owned Companies".

Well....things haven't worked out quite so peacefully. You can follow the link to find out more. Remember, get EVERYTHING in writing including the small details (the things you might say are trivial).
http://www.boston.com/business/articles/2010/12/01/partners_of_prestigious_hub_architecture_firm_at_odds/

- Design is what you make it.