The Economics of Deconstruction

The environmental benefits of deconstruction are obvious, but what about the economics?

9 MIN READ


The value of the company is that it has relationships with recycling firms, which need to pick up materials on short notice. “Our crews can fill a 30-yard container with drywall in less than a day. We need it pulled the next morning, otherwise we’re backing up. Roll-off companies that need 48-hour notice — that does not cut it,” Hughes says.

In the Washington, D.C., Virginia, and Maryland area, the companies charge about $250 to $550 to pick up and deliver containers to recycling plants, but are willing to work with DeConstruction Services because it provides a steady stream of materials. To analyze costs, remodelers should compare the cost of a standard demolition, including landfill fees, with the cost of the deconstruction, including tax credits for the homeowner for any donated products. (See “Economics of Deconstruction,” below.)

For large jobs, Hughes recommends appraisers that provide homeowners with an estimate of the donation value. “The owners can apply their own tax bracket to that to see if it makes sense,” he says. For smaller jobs, his crew does an inventory of the products and prices the donation value at 50% the cost of the item at The Home Depot. DeConstruction Services has a 14-page matrix with prices that it periodically updates.

Shuster says that on smaller jobs, his crew separates material and takes it to recycling centers. He says that this costs 5% to 10% more for the separation and hauling time, but that he saves on the per-pound cost of taking Dumpsters to a landfill, which usually averages $300 each. Big projects require two to three Dumpsters for a total of $900. “It offsets the time to pull windows out carefully or segregate non-painted wood,” he says. This is especially worthwhile for heavy loads such as concrete.

Shuster begins remodeling jobs by checking for interesting or architectural salvage items. “People pay a premium for antique-type items. We work with a salvage company to come to the project before we start to remove those items, and clients get paid for them,” he says. He then looks at good wood, or materials that can be reused, to donate to Habitat for Humanity Re-Stores or equivalent local nonprofits such as Bud’s Warehouse, in Denver, which works with at-risk youth and the homeless to provide job training. Proceeds from sales go to its program.

Shuster has the added support of Boulder County and the city of Boulder, which require a deconstruction plan as part of a construction permit. So, although most customers are supportive of saving materials from landfills, if they are not, Shuster can cite local ordinances.

Starting Point

If remodelers do not have deconstruction contractors in their area, they can start small. “To keep our margins on projects healthful, we have to minimize the time and fuel we put on things,” McVay says. “It’s often best to reach up and grab low-lying fruit.”

Remodelers can start by asking homeowners if they want to use salvageable items elsewhere in the house. For kitchen remodels, Talmadge offers to hang the original cabinets in the garage or basement. He is also creative with old wood, once cutting a piece of mahogany into a surfboard-shaped countertop for his pool house. “Look for an opportunity in old stuff — what can you do with it?,” he says. He owns some rental properties, and often uses materials in those houses.


Talmadge’s house and office are located on 5 acres, so he has space to store reusable materials until there is a large enough load for a nonprofit center to pick up. He keeps the materials from each job separated to track the donation for individual homeowners, and advises clients that it may take up to a year for them to receive a donation receipt.

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