ᐅ Price Difference Between Brick and Calcium Silicate Blocks with External Thermal Insulation Composite System (ETICS)

Created on: 2 Jul 2019 23:10
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neutronbx
Hello everyone,

We have received a fixed-price offer for a new single-family house of about 135 sqm (1453 sq ft). We need to decide between 36.5 cm (14.4 inches) bricks with a thermal conductivity (Lambda) of 0.10 and calcium silicate bricks with external thermal insulation composite system (ETICS). The brick option costs over €8,000 more in total. The house is located in a quiet residential area. We are having a hard time deciding. How would you choose?
11ant3 Jul 2019 16:30
I also see this as a defensive offer: the contractor is trying to steer the client toward the wall construction method that is more profitable for the contractor by using the price argument. It should not be forgotten that the contractor does not have any emotional attachment to the wall construction; for them, it is simply a means to an end—to create enclosed spaces. Simply put, their business involves trading bricks and labor hours; if the client’s dreams fit within the spaces between the walls, this only means the client becomes a partner in the business—emotionally, it is irrelevant to the contractor.

Currently, a contractor will generally aim to have both a monolithic wall construction and an external thermal insulation composite system (ETICS) / external wall insulation in their portfolio. If customer demand is distributed about 60:40 between these options, everything runs smoothly, and the contractor can usually offer roughly equal pricing. However, if customer demand is split 90:10, the contractor will obtain less favorable purchasing conditions for the less popular option and pass this lower profit margin on to the client as an additional charge. Significant price differences may therefore also indicate that the contractor has more experience working with the cheaper material (and, overall, experience is usually an advantage when it comes to reducing the likelihood of construction defects).
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neutronbx
3 Jul 2019 20:39
11ant schrieb:

I also see a defensive offer here: the builder is trying to steer the client toward the wall construction that is more favorable to the builder by using the price argument. It should not be forgotten that the builder is emotionally indifferent to the wall construction; for them, it is only a means to an end—to create enclosed spaces. Simply put, their business is dealing in bricks and masonry hours—if the client’s dreams fit into the spaces between the walls, that only brings the client on board as a participant. Emotionally, it means nothing to the builder.

Currently, a builder will always try to have both a monolithic wall construction and an external thermal insulation composite system (ETICS / EIFS) in their portfolio. If customers are distributed roughly 60:40 between the options, everything is fine, and the builder can usually keep prices nearly equal. However, if customers choose one option 90% of the time and the other only 10%, the builder will receive less favorable purchasing conditions for the less frequently chosen option and will pass this loss on to the client as a surcharge. If there are large price differences, I see this also as an indicator that the builder has more experience with the processing of the cheaper building material (and experience is usually an advantage in terms of reducing the likelihood of construction defects).

Thank you for the explanation. Yes, the company normally builds all its houses with calcium silicate bricks. Other types of bricks are also offered, but only upon request. I am just surprised by how large the price difference is...
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guckuck2
3 Jul 2019 20:58
If you don’t live in the southern part of the country, where Poroton is predominantly used, monolithic construction is several thousand more expensive. That is indeed the case. In the north, aerated concrete (also called cellular concrete or autoclaved aerated concrete) is more common.

Whether it really has to be 8,000 euros for a 135 m² (1,450 sq ft) house is, of course, debatable. Take it or leave it.
11ant4 Jul 2019 00:38
neutronbx schrieb:

I am just surprised at how large the price difference is...
See my explanation: 1. the difference is as large as the gap between "customer demand for option X" and "customer demand for option Y"; and 2. the difference in the contractor’s experience with options X and Y will be just as significant.

For you, this practically means:
a) if you don’t mind or prefer the less expensive option, then choose that cheaper variant;
b) if you would rather have the other option, then go with a different builder who has more experience handling it.
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