Month: February 2017

The Biggest Threat Our Construction Companies Are Facing

Guest post by Andre Smith

Towards the end of last year a Chinese PhD student was in Australia to research ways construction companies could optimise the way they worked. In the process of doing so, he discovered the biggest risk the entire industry currently faces.

In the end, it was discovered the biggest risk was the construction companies themselves. The reason for this is because they’ve become dinosaurs unable to keep up with the pace we’re progressing at.

It’s not that they’re not capable of changing, but they are simply set in their old ways and don’t see any problems as things currently stand.

Only this week a Queensland building company went into administration with a number of half built houses.

Better understanding is needed in Residential Building Contracts

Builders quote a price for a building which the customer then pays a deposit on.

Some weeks later when the builder carried out his investigations the price may have increased by more than 30%.

This immediately creates a sense of conflict between the builder and the customer.

Let’s use steel sheds as an example.

The customer expects to see a low price.

There are no definitive rules in regards to site specific engineering, so a customer could ask for it to be placed anywhere.

On the top of a hill and there will be extra costs due to high wind forces.

In a valley and there may be soft ground meaning larger and more expensive foundations.

The Residential Market Is Huge

Thanks to nearly two hundred thousand residential dwellings being built it beats out the non-residential market at a rate of nearly two to one.

Customer are pouring around $66 billion per year into the industry so it needs to be efficient.

Building should be a Partnership

When it comes to construction projects, the companies with decades of experience are experts.

They shouldn’t just be quoting a cheap price…….they should be educating their customers to ensure that their customers have a realistic expectation of price.

If they don’t the customer may be over optimistic then run out of money before the house is completed leaving a half built ‘Ghost House’ . . . . with the builder still being owed a substantial amount of cash.

What Is Eventually Going to Happen

With land prices continuing to increase the pressure to build cheaply will remain but the number of people able to afford to build is likely to drop.
It’s been predicted more than half of current residential builders in Australia won’t be able to survive over the next decade, because they’ll not be able to handle less profits.
Builders that survive will need to be able to educate their customers and better manage expectations.

Why I Didn’t Want A Tesla Battery

I recently posted about my experiences of getting quotes for Solar Power (Obtaining Quotes) and one of the questions I have been asked is “Are you getting a Tesla Battery?”

Here are my reasons why not

Tesla Battery

The total installed cost of a Powerwall 2 battery is being quoted at $10,150.

With 13.5 kilowatt-hours of storage that means a cost of approximately $750 per kw hour that’s quite an effective price.

Background

My solar system is limited by suitable roof space to just over 3.00kw

The estimated power generation is around 4000kw hours  a year with a monthly average in summer of 16kw hours a day.

In winter it is much lower at an average of 6 kw hours per day.

Evaluation

Prior to the solar installation we were using about 7- 8 kw hours/day without using air conditioning. and another 4-5 kw hours with air conditioning.

It would probably be more if we were home all the time but we both have part time jobs.

In Summer we have a lot of excess solar power, but we are only using  2 – 4 kw hours of grid power when the panels aren’t generating so the battery will only save us around 2 -3 kw hours per night.

In winter we won’t have much excess power during the day so I would estimate that we will only be able to put 1 – 2 kw Hours per day into the battery which will get used up every night..

Overall it looks like we would probably average 2kw hours, or less, of power from the battery a day.

With our supplier, Powershop, the benefit of using power from a battery is approximately $0.25 /kw hour (The difference between the ‘Feed in rate’ and the ‘Anytime rate’)

Our saving = Days in the year x Average kw hours saved x Benefit from battery use

= 365 x 2 x $0.25

= $183 per annum (a rate of return of less than 2% on the $10,000 investment)

This is a much worse rate than overall solar installation . . . see Reviewing Solar 

Conclusion

With battery life guaranteed for 10 years you won’t be seeing any real savings, not even if the battery lasts a further 5 years.

If Tesla, or someone else, were to offer a battery system with a quarter of the capacity(say 3kw hours) for a quarter of the price ($2500) I might get excited.

If you have got a lot more panels and a high evening, and night time use, then a Tesla Battery may work for you.

Plastic Chimmneys

In the UK many Councils require new houses to have chimneys, “To match the character of the adjacent houses.’

The problem is almost all urban areas have been smokeless zones for over 40 years, which means no open fires.

Also most new houses have either gas central heating or storage heaters so there is no ‘need’ for chimmneys.

To solve the problem at a low cost manufacturers now make plastic dummy chimneys!

Photograph from Tuke and Bell

For more Unusual House Photos, Wins, and Fails, have a look at: What the………………….?

Multi Head Split System Air Conditioners May Not Be Best

Reverse cycle split system air conditioners are a popular choice for cooling.

They are also one of the cheapest heating systems to run.

Single Head Split System

These are the most common units, that you will see in most big box electrical stores, consist of a matched outdoor unit and an indoor unit.

Fine if you want the cooling in one room, but it can look a bit messy with lot’s of outdoor units if you have got several rooms to cool

There is however an alternative

Multi Head Split System

Multi Split systems consist of one outdoor unit running multiple indoor units.

In some cases up to 8 indoor units to be run off a single outdoor unit.

The indoor units don’t have to be all the same KW capacity so they can be matched to the room size

The outdoor unit can also be a little smaller than the sum of the indoor units

For instance if you had a 3 bedroom house you may have 2 x 3.0kw indoor units in family rooms and 3 x  2.0kw units in the bedrooms a 10.0kw outdoor unit may be adequate/

If all 5 indoor units are running at maximum, the out door unit will only deliver 11kw of output rather than 12kw.

However the indoor units are rarely all running at full capacity,

Also most people are unlikely to run all 5 units at the same time.

Advantages and Disadvantages of Multi Split system

Advantages

  • Good for people who have limited space
  • Much neater than having several units

Disadvantages

  • If the outdoor unit fails all the indoor units stop and you have no cooling.
  • Usually costs more to buy and install.

Why are Multi Head Systems more expensive?

Although it seems that having less out door units should save on cost there are a few reasons why that isn’t the case.

  • With the majority of systems being single head systems that makes multi head systems a special order.
  • Multihead systems are normally sold by specialist companies rather than the big box stores so there is less competition.
  • Longer pipe runs and cable runs are required rather than the typical back to back installation of the single head systems.
  • In some cases the indoor units might also require drainage pumps rather than a simple gravity drain through the external wall.

The Forced Outdoors – 5 Tips For Avoiding Being Locked Outside Your House

Guest post by Hubert Dwight

There is nothing quite on the level of being locked out of your home.

Depending if you live alone or not, this could mean waiting outside your house for hours on end, waiting for another housemate or family member to come home, or worst of all – calling an expensive locksmith to come and remedy the problem.

So you’re not left out in the cold, we’ve put together 5 tips that you can adhere to to avoid being locked out of your house ever again.

Get a spare key cut

This may seem obvious to most, but the more surefire way to making sure that you don’t get locked out of your house is to get a spare key cut.

Some people keep this key in a pot plant outside your house or under the welcome mat home, but perhaps this might not be good idea as this could be the first place someone would look.

Brian much prefers to use a combination key safe, and keeps the combination in his phone so he doesn’t forget it

However, if you do get locked out of your house and you need to call some locksmiths in Melbourne, having had a spare key already cut will limit the amount of effort and stress you will have to endure after the event.

Keep a key at a trusted person’s house

Once you have got a spare key cut, if you don’t want to keep this key on the premises of your home, a good idea is to keep it at a trusted family or friend’s house.

That way, if you do get locked out of your house for any reason, you can promptly call up this trusted person and get them to deliver the key or you can go and get it from them.

This is a safer option than having a spare key on the grounds of your home.

Have a designated ‘key spot’

One of the best ways to not get locked out of your house is to employ some effective prevention methods!

Make sure you have a designated ‘key spot’, for example on a hook right by the door, or in a dish that is on your bedside table.

Each and every time you come home, be sure to place your house key in this spot, and this will dramatically decrease your chance of losing the key or leaving home without it.

Become an organised person

Becoming an organised person is another great preventative measure that you can engage in to mitigate the chance of you becoming locked outside your house.

Each time, before you leave the house, do a mental check: keys, wallet, phone, diary, and any other belongings you may need to have on you that day.

Once you start these sorts of organised behaviours, it will only seem natural to continue them.

Don’t let one of the most annoying afflictions ever affect you again!

Make sure that each time you leave the house you do a mental check of everything you need for the day ahead.

What’s more, ensure you get a spare key cut, and leave it in a smart and safe place – whether this be on the premises of our home or at trusted family or friend’s residence.

Lastly, it’s always a great idea to have a designated ‘key spot’, as this will mean your key has a home, mitigating the chance of ever losing it.

Ute Loading – Fail

Depending on the model the maximum load for this type of ute is in the range 660kg – 830kg.

Well that looks like a cubic metre of sand and gravel (say 1800kg) and at least 8 x 20kg of cement (160kg) so its no wonder the rear axle gave up!

Next time you plan on doing some concreting either get it delivered or order some premix!

I found this on the Crap Concreting facebook page which you see plenty of reasons why it doesn’t pay to take the cheapest price.

 

For more Unusual House Photos, Wins, and Fails, have a look at: What the………………….?

 

Review of Solar Cost / Benefits

In our new house we hadn’t got solar so I thought I would review  the financial advantages of installing a system.

I found a useful calculator on Solar Quotes a great site with lots of useful information.

Working through the Solar Quotes Solar Power Calculator I came up with the following for a 2kw system.

Calculator Input

2kw system in Victoria

Expected use – 50% of output

Calculator Output

Installation Cost $3900

Power generated 2628 kilowatt hours

Saving in first year  $340

That’s around an 8.5% rate of return , better than I could get at the bank,

If we use more than 50% of the power  the rate of return will be even better.

Is it worth upgrading?

An extra 1kw system would cost around $550 extra and generate an extra 1314 kilowatt hours

If the whole of the extra panels output went just to feed in tariff at $0.06/kw hour the figures it would save me $78,84.

That’s a 14% rate of return.

Our System

We decided to go with a 3.3 kw system with 13 Panels.

Eight panels facing North, and five panels facing west to maximise late afternoon and evening performance when we get in from work.

Expected saving from our $4,450 system = $340 + $78.84 = say $418 (a 9.4% rate of return)

Why Solar Makes More Sense for Retirees

Currently both my wife and I are semi retired and only working part time.

We currently have a considerable amount of money in Superannuation and other savings

In January 2017 as a result of government changes to pensions the amount payable to us when we reach pension age will be reduced by $3/fortnight ($78 per year) for every $1,000 of assets we have over  $375,000.

Money spent on the house is excluded from the asset test.

Financial Situation in Retirement

So for us

By investing our $4,450  in solar rather than leaving it in the bank we have lost $133.50 interest (best bank deposit rates currently are around 3%)

We stand to gain $347.1 in extra pension payments ($78 x 4.45)

Net income gain = $347.10 – $133,50 = say $213.

Add to a the power savings identified above gives

Overall Annual Return    = $213 + $418

= $631 (14% rate of return) . . . . and unlike money in the bank these benefits will keep up with inflation!

Why I Won’t Be Getting A Sink Waste Disposal Unit


You sometimes see Sink Waste Disposal Units (or Garbage disposal units )in top end kitchens but I won’t be getting one for a heap of reasons:

  • Initial Cost, several hundred dollars plus installation
  • Ongoing power cost, the unit in this picture uses about 0.5kwatts
  • Maintenance and replacement. I have even heard of them shaking the under sink plumbing apart.
  • High water use to wash the debris away.
  • Disposing of fats, and hard solids like bones, which makes sewer blockages more likely.
  • Taking easily compostable materials from the home and passing them to a sewer where they will be contaminated and become a difficult to treat waste at the sewerage treatment plant.

I sometimes see manufacturers claim they are an eco friendly solution. . . . but they are anything but!

It is not just my opinion they are banned in many places including Switzerland and many areas of the United States.

Why not just use the regular garbage bin for smaller amounts and a Skip Bin for larger amounts

How Using Skip Bin for Waste Disposal Can Help

A skip bin refers to a large open-topped waste container that is designed to load on a special type of lorry.

A skip is replaced or removed by an empty skip rather than emptied into a bin lorry.

It is then tipped at a transfer station or a landfill site.

A skip bin hire in Brookvale can help you clear your waste in your property, to ensure safe and convenient waste disposal.

When carrying out a home renovation such as a new kitchen, a skip bin provides a safe and clean way to store waste during the project.

Depending on the project and amount of work you’re undertaking, choosing the best skip bin for an unwanted waste removal job is a good idea.

Check out these other benefits of using skip bin:

  • Garden Waste Clearance: It commonly uses mini skip bins for garden clearing purposes from disposing of dead leaves, grass cuttings, twigs, small branches, and fence palings to other wastes found in your garden. Bulk bins are your best option for bigger gardens. Therefore, hiring a skip is highly recommended to get rid of unwanted garden waste.
  • Disposing of White Goods: Eliminate white goods, such as electronic appliances, using a skip bin. Because it’s not advisable to dispose of white goods with household rubbish, hiring a skip bin allows easy disposing of white goods.
  • Spring Cleaning: The perfect time to declutter your home is during spring. Rubbish can be difficult to manage, so it’s essential to hire reliable skip bins. All you have to do is to put waste items into the skip bin, and the rest will be taken care of by professionals. Skip bins come in various sizes, from mini-skip bins to medium-sized bins. Choose one based on your waste removal requirements.

 

Exit mobile version