Here is a short video we threw together of the Passive House renovation in Harlem. The video mostly discusses the budgeting of the project.
Now that the construction is for the most part done I think that our initial budget of $175/sq.ft is not sustainable. Of course it is great for the client in the long run. But as a company that practices the triple bottom line – people, planet, profit – our budget did not satisfy all three items.
Out of the three I can say without a doubt the planet was benefited by this job. We built a Passive House. We salvaged almost everything to build the house, creating a negative impact on the dump, meaning the house removed more garbage from the dump than it created.
Unfortunately the other two items – people and profit – did not get a fair deal. The workers were not paid enough, the client is not happy and the company did not make enough of a profit. Workers and company need to be taken care of in order for us to continue to make a meaningful impact on the world. Happy clients means more opportunities to build green.
The clients came to us with a very tight budget, $800,000, which is not enough for the scope of the complete gut rehab Passive House. $1,200,000 would have been more realistic.
But being realistic in not what got Eco Brooklyn to where it is now. You don’t start a cutting edge green building company because you are realistic. You start it because you are deeply idealistic and willing to sacrifice everything in the hope that it will make a difference to the world. There are huge risks to this.
So in that spirit we took on the job, our main goal to find a way to build a cutting edge green home on an affordable budget. We accomplished this, so from that point of view it was a great success.
But the clients are not happy and the company was hit hard financially. It may seem odd that the clients are not happy given they gained a $1 million plus house for $800K. We literally saved them hundreds of thousands of dollars all the while helping the environment.
But to achieve that we all had to make sacrifices. The main sacrifice was that as a company we could not afford to hire enough management. The job process was rocky. A green company needs to be even better organized than other companies because we are dealing with new cutting edge technologies with steep learning curves and we salvage materials thus we can’t tightly control the delivery time of materials.
This lack of management meant details were missed and client/contractor interaction was not as common. So even though behind the scenes we felt we were performing miracles to save the client money and add value to their home, the client did not see this.
The client simply felt they were paying what to them felt like a lot of money and we were not delivering as smoothly as they wanted. Because they don’t have a good grasp of what things cost it did not matter how many times we told them they would never be able to get this value elsewhere on their budget.
And when they did look elsewhere for comparison they saw crappy building with nice fixtures – the so called luxury condo that looks like a million dollars for the first couple years and costs a fortune to run. When you compare that to our building that does not look as fancy they felt shortchanged.
Never mind ours costs nothing to run and is built to last a hundred years. Those things are not as sexy as sparkling appliances and brand new moldings.
So we felt we were loosing our battle with the clients. It was very frustrating because we believe deeply that the building we made is decades ahead of any building built in the city today.
Core Values
In hindsight the main conflict was between the company’s and the client’s core values.
The company’s core value is clearly to put the benefit of the planet before anything else, with the understanding that by doing this we are benefiting ourselves as well. And in this case we did it to a fault (we should have done less for the planet and more for ourselves in order to continue strong in the long run).
But going balls out for the environment is both our strength and weakness.
The clients core value was to put their own benefit before anything else. This is not to say they did not care about Eco Brooklyn or the environment. But like most people, at the top of list is their own financial security, their family and their home, and when possible, but only when possible they consider the rest of the world.
I get that. I am a family man.
But I am also a green builder and sometimes things get complicated.
The problem was that we feel looking out for the environment is the best thing we can do for the client in the long run, even if it means less of a perfect construction process in the short run. The client however just wants a home for their family. Getting that done is challenge enough, never mind some idealistic and abstract global thinking.
Because of this we found ourselves at odds. For us if we could help the environment more we would. Even at the expense of short term discomforts and stress imposed by our main mistake – not budgeting for enough management and budgeting too much for the green building items – which arose from our over ambitious attempt to build a home for hundreds of thousands less than normally it would cost.
The client however found this inexcusable. If it is a choice to go some time without water in order to get gray water plumbing installed or skip the gray water and have water for their kids to take a bath they pick the later.
Unfortunately we were doing the building and not them. And we are very hard headed.
We picked to do the gray water, which delayed the job and meant the clients went without water for longer. Inexcusable in their eyes. Simply bad management. In our eyes it was a small sacrifice for something that will benefit the planet for many years to come…..which in turn benefits them.
It wasn’t like we expected the client to sacrifice alone. Eco Brooklyn always sacrificed first. If we found a way to satisfy the client and the environment at the cost of our profit then we made sure we did that first. Our priorities were planet, client then us.
Maybe we are wrong. Maybe that priority serves nobody. But I have this idea that we are connected and the ecology is in a lot worse shape than we are. Since we are ecology that needs to be dealt with first……?
But when the client is spending their hard earned money and the feel like the second fiddle, good will goes out the window fast and they stopped caring for us.
Towards the end of the job when we realized our ecological zeal had put our finances in tight stretches we got no mercy from the clients. In their memory was the lack of water and they made sure to withhold money accordingly. Water is just an example our of many conflicts of core values that arose.
What have I learned from this?
I can’t expect others to sacrifice for my cause. Next time I will only take on clients who can afford $1,200,000 and be done with it. They will get the job they were promised and I will be able to build houses that harm the environment a lot less.
This means that many people will be priced out and not benefit from Eco Brooklyn’s amazing green building.
But I have learned the hard way that when things get tight people hunker down and look out for themselves. It is about survival and humans can be the most brutal creatures on earth when they feel their own is being threatened.
I can’t put myself in that position of dealing with clients like that. Nor can I put the clients in that position. The clients of this house are scared. They feel we managed the job recklessly and this puts them at risk.
When they came to us they entrusted us as professionals to guide them in the building of a green home. They had no idea how much emphasis we put on green and at some point they wondered if we even cared about their home.
So in the future we won’t try the affordable green building thing because we can’t trust the client will be as willing as we are to build green. Instead we will charge. That way it won’t be a choice between having water on time or having a gray water system. We will have a budget to do both on time.
The clients of our current house had a tough time of it. I think with time they will forget the discomforts of the building process. As that fades they will see the value of the house. They might even be grateful towards us. But I doubt it.
Would I do it again? Yes. I think the struggle was worth the gain. It is an amazing house.
It is the first time in the history of building that a Passive House was built with such a high percentage of salvaged materials. It is revolutionary. And we did it not on some plot of land in Oregon but in one of the most expensive places to build on earth. For the price of a crap “luxury condo”!
But like all revolutions it was painful. And I am hurting more than anyone. I made sure I put my money where my mouth was. The clients probably will never understand that. But that is ok. I care about the house that we brought into existence.
When we are all dead that house will still be a wonderful home for families. That is a great gift. It is the least I can do for the planet and my fellow humans.
Here is the video that prompted this post.