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Five Ways for Builders to Reduce Waste

Five Ways for Builders to Reduce Waste

Can you guess the volume of construction waste generated annually by construction projects worldwide? What about the U.S. alone?  According to a report from Construction and Demolition Recycling in 2018, the world’s yearly volume of solid waste will nearly double to 2.2 billion tons by the end of 2025. Construction waste makes up more than half of overall waste generated annually. This includes materials such as wood, shingles, asphalt, concrete, and metal.

construction waste from a building

Additionally, construction continues to be costly. In August, construction input prices increased by 0.6 percent from July according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index. Nonresidential construction input prices were up 0.3 percent for September.

Much of this waste can be recycled or reused; however, sometimes after a long day of labor, sustainability, and care for the environment can be overlooked. That said, sustainable building practices are growing in popularity and builders are finding competitive advantages in saving on material costs or cutting costs associated with waste. Below are five strategies to reduce waste on your job site.

  1. Reduce Packaging

Work with manufacturers to minimize packaging around products such as plastic, cardboard, and paper to reduce waste that will end up in your dumpster. Approximately 10-12 percent of a construction project’s waste comes from cardboard.

How to Reduce

  • Purchase materials in bulk instead of individual packages.
  • Use returnable containers and packaging materials.
  • Reuse non-returnable containers. You can hold materials in tubs, barrels, and buckets.
  • Donate non-returnable containers to community organizations if you aren’t using them.

 

  1. Reuse and Recycle

Place recycling bins on the job site, or at the end of the day, sort materials into a reuse pile instead of throwing everything into the dumpster. This not only helps the environment but will help lower transportation and landfill costs.

Recyclable materials:

  • Asphalt
  • Brick
  • Concrete
  • Carpeting
  • Cardboard
  • Drywall
  • Gravel
  • Metal
  • Paper
  • Plastic
  • Roofing
  • Wood
  • Sinks
  • Countertops
  • Baths

You can recycle these materials at a construction and demolition (C&D) recycling facility if one is available in your market, and rates are typically competitive with landfill tipping fees. Lastly, try to sell unused materials back to the supplier.

  1. Deconstruction Instead of Demolition

Deconstruction is the process of selectively disassembling a building piece by piece to preserve materials and eliminate waste. The salvaged materials can be reused and transformed into valuable resources that can be sold to be used on future construction projects. Additionally, donated materials can be used as tax write-offs.

The demolition process is similar to that of deconstruction in its removal of high-value, reusable materials. However, the main difference is there is a lower chance of preserving materials through demolition because the process is focused on speed.

  1. Proper Material Storage

Make sure that your products are stored away from the sun and water. Covering your materials will help prevent having to buy new supplies as a result of tossing rotten ones due to degradation from the elements. Secondly, properly storing your materials will avoid theft and the costs associated with replacement.

  1. Plan Your Materials Ahead of Construction

Planning and proper organization means fewer mistakes and fewer materials being wasted on the job site. You can reduce labor and product costs by properly measuring and ordering the right sizes of materials – this prevents cutting or altering larger-sized products. If you have scraps from cutting materials down, try to reuse them. For example, small pieces of wood can be shredded down into mulch if they’re not stained or painted. A plan that includes the following would help reduce waste disposal:

  • Account for potential waste
  • Supply the job site with recycling, compost, and waste bins
  • Calculate the exact amount of materials and order only what is needed
  • Identify recyclable materials
  • Educate workers on sorting waste as it’s produced

The price of dumping materials is becoming more significant to builders as the costs of materials continue to increase. The less you throw away, and the more you reuse, the less money you spend on construction waste disposal. Consider these five ways to save money and the environment by reducing construction waste on your next build.

Broadmark Realty Capital Inc. (NYSE: BRMK) is an internally managed real estate investment trust (“REIT”) offering short-term, first deed of trust loans secured by real estate to fund the acquisition, renovation, rehabilitation, or development of residential or commercial properties. The company has originated over $2.2 billion in loans since its formation through a rigorous and responsive underwriting process. Have questions? Contact one of our lending experts today.

Which hard money loan is right for your project?

Which hard money loan is right for your project?

Not all projects are the same, and therefore not all projects need the same type of funding. When it comes to financing your real estate project it’s important to find the right loan solution for your needs–and it’s always helpful to know a bit about various loan types when you first talk to your lender.

Land Development Loans

A land development loan is probably the best option for you if you have raw or undeveloped land that needs to be made construction-ready. A land development loan can finance entitlement of the bare land, so sewer, electricity, gas lines, and roads can be added. A land development loan may also fund soft costs, such as hiring architects, engineers or other consultants, and can fund the costs for subdividing land that will be sold as separate lots for commercial or residential use

Construction Loans

Generally, construction loans are short-term loans used for real estate projects such as multi-family housing and commercial and industrial buildings, though you can also use construction loans to buy land or build or renovate existing structures. As you reach milestones for your project, you or the builder can request draw payments for completed work. Once an inspector has verified that the work is done, you would receive a disbursement. To retire the loan, you obtain a final appraisal and inspection on the property and refinance to a more fitting loan, such as a mortgage, or pay off the construction loan.

Bridge Financing Loans

Bridge financing loans are temporary loans, typically ranging from 6 to 12 months, that provide funding until a longer-term source can be arranged. Bridge loans are used in commercial real estate for many reasons, including expanding a product line, buying out a partner, or bridging the gap between when a construction project is completed, and the project is refinanced or sold.

Heavy Rehab / Redevelopment Loans

Redevelopment loans fund major renovations such as tenant improvements, remodels, expansions or redevelopment on an existing building. A redevelopment loan is usually valid for 6 – 18 months. You wouldn’t use a redevelopment loan to purchase land or build new construction.

Acquisition and Development Loans

An acquisition and development loan (A&D) is appropriate if your raw land is ready to be developed, or is already developed but needs improvements to the infrastructure or existing buildings. Most of the time, an A&D loan covers both the purchase of land and cost of improvement needed before the development can be completed.

As you may have noticed, there is some overlap between loan types and many other factors. Therefore, it’s a good idea to work with an experienced lender who knows your market, is willing to take the time to fully explain things, and offers good terms.

Broadmark Realty Capital specializes in hard money loans designed for real estate investors and developers who require quick closings, outside-the-box thinking, and the utmost professional service. All our real estate loans are backed by careful, in-house underwriting, strong knowledge of the local market, fair pricing, and the idea that construction loans are very much a partnership: we are your advocate from day one through the completion of your project. Need a loan? Contact one of our lending experts today!