PHIUS (Passive House Institute US) did not seem like a resource we could utilize — the Passive House world is small, smaller still when you reduce it to a single geographical area like Chicago and its surrounding suburbs. And the thought of interviewing conventional builders, and trying to convince one to take on the detail required in a Passive House level build, seemed overwhelming.
As a result, we decided to go with two guys close to home who have conventional building experience.
The logic underlying the relationship was that they would GC the build, taking care of all the conventional building details, while I took care of all the Passive House details.
Unfortunately, this proved fruitless.
Events revealed they didn’t have the requisite skill set necessary to complete the job, and we have subsequently taken over the project ourselves. It’s taken weeks to get things back on track, hence the delay in posting anything new regarding the progress of the build.
When the build is complete, I’ll return to this matter, offering more details that will hopefully help other consumers who want to build a new house avoid our unfortunate experience.
The really sad thing is there are quality people who make a living as general contractors, but unfortunately it remains a minefield out there for consumers without meaningful connections. If you don’t already know the answer to the question ‘Who should build our new house?’ before you start the process, then it’s truly a case of caveat emptor. And if things should go poorly, you will feel like you’re on a very lonely island.
Our original builder decides to settle, then disappears…
Back in early March, 2016, Brandon Weiss (owner of Evolutionary Home Builders) contacted me via voicemail and email letting us know he was interested in settling our dispute with him. This occurred — we believe not coincidentally — after he learned I had been in contact with his former clients, the Illinois Attorney General’s Consumer Fraud Bureau, and Katrin Klingenberg (founder and Executive Director of Passive House Institute US), in addition to leaving a review of EHB on the Houzz website.
He claimed he was willing to meet all of our terms — the same terms, in fact, that we had offered months ago — a partial refund of $15,000 (of the $30,000 we initially gave him), release of the copyright on our drawings, and releasing us from the contractual demand that we not build with any other contractor on our own lot for two years.
It became clear, after some back and forth, that Brandon was willing to settle, but only if we were prepared to sign a non-disclosure agreement, and only if we met with him in person. He was insistent on this last point. Brandon claimed it was because I had made public our exchanged emails and other documents pertaining to our case. We believe, however, that his intentions were to get us in a room in the hopes of intimidating us into accepting altered terms, or pressuring us to immediately sign an agreement without the benefit of review by our legal counsel.
After our lawyer asked Brandon to provide verbiage, meaning ‘what exactly do you expect us to sign’, prior to our meeting, Brandon disappeared — ceasing to respond at all — which, once again, only confirmed our suspicions regarding his real intentions all along.
Why disappear after we requested something as straightforward as seeing the document prior to our meeting? What’s in the language that’s so objectionable that we can’t see it beforehand? Who would be willing to sign a non-disclosure agreement without having their lawyer look it over first? Why do we have to sign it immediately, without ample time to review it? If normal real estate transactions can occur with only a client’s lawyer present, why not in this case? We feel Brandon has been less than transparent or fair with us, so why would we want to sit down with him ever again?
Our original lawyer gave up on this as a lost cause, so we hired a second lawyer to contact Brandon one more time. Brandon’s response: ‘same terms — and, no, you can’t see the document beforehand’.
Why not meet our terms, which are pretty basic and more than fair, and move on? Why, instead, does he continue to take such a hyper-aggressive stance? Why be so ruthless?
Furthermore, if Brandon is so sure he’s done nothing wrong, why is he so afraid of the paper trail documenting our experience with him and his company? Why the lack of transparency and obsession with secrecy, and insistence on the need for a non-disclosure agreement if Brandon, Patrick, and Eric have nothing to hide?
Even in terms of construction related information, they act as if they’re doing something that has real proprietary significance (hence, the claim of intellectual property regarding the budget numbers), but they’re not. Virtually everything they do — the products chosen, the process of putting them together — is open-sourced on the internet, in books and magazines, and even in free videos on YouTube.
…if Brandon’s original build budget numbers were accurate, then the premium to build to the Passive House standard is at least 25-30%, in which case PHIUS needs to stop telling consumers it is only 10%. If Brandon’s numbers, on the other hand, were less than entirely honest, why defend him?
In addition, if you compare Brandon and EHB’s attitude towards construction related information with another Passive House builder, Hammer and Hand, it’s hard to imagine how the contrast could be any more stark (think North Korea vs. South Korea). In Brandon’s case, he seems to treat virtually everything as intellectual property, while Hammer and Hand is busy giving away information through countless job site videos and their Best Practices Manual. Based on this alone, who would you trust to build your new house? Who would you entrust with your life savings?
It’s not as if Evolutionary Home Builders are Coca-Cola or KFC — there’s no secret recipe or formula for what they do. Even more to the point: What information in their possession is not readily available from any number of other sources? The IP claim is so weak that even if they broke down the construction budget by components and every phase of the build, with a dollar amount assigned to each one, it would still be a case of ‘so what’. No one, even at that point, would know how much of each dollar amount is profit or overhead, so the information is virtually meaningless.
Knowledge is nice to have, to be sure, but it means nothing without proper execution — as any venture capitalist in Silicon Valley will calmly explain before refusing to sign a start-up’s NDA. In other words, if you’re a Passive House builder, for example, put your time and effort into building high quality structures at a fair price that your clients are thrilled with (so your clients will sing your praises), rather than wasting time worrying about protecting information that’s so easily accessible anyway (via the internet, books, magazines, etc.).
Put still another way: If the sum total of what you believe is your intellectual property can be revealed and then successfully copied by others when simply written down on a piece of paper (e.g. budget numbers), then there probably isn’t much to protect to begin with. Isn’t this the implicit message sent by any number of builders, including Hammer and Hand, when they are so open about the details of how they build?
Consequently, it doesn’t seem to matter from which angle you approach the claim of intellectual property — product, process, or even how they price out a build — the claim itself rings hollow. All of which leads to the obvious question: If it’s not intellectual property that they’re trying to protect with a non-disclosure agreement, what is it that they want hidden from view?
The response to our situation by Passive House Institute US (PHIUS) also proved to be a disappointment. We have reached out twice now — originally to Mark Miller, and, most recently, to Katrin Klingenberg — yet, in each instance, our request for help was soundly rebuffed.
For example, after our budget meeting with Brandon and his team in late November, 2015, we contacted Chicago architect Mark Miller in early December, having found his information on the PHIUS website as a Certified Passive House Consultant and a Certified PHIUS Builder. Here is how that exchange went: emails.
What gets interesting is comparing the dates of our initial email exchange with Mr. Miller with Brandon’s email containing the bizarre offer(12-9-15 email) to send us to Belize. It doesn’t take a master detective to deduce what happened during that twenty four hour period between the 9th and 10th of December:
After Mr. Miller contacted Brandon or Patrick on the 9th to find out about our project, and one or both of them portrayed us in a negative light, that very same day Brandon sent us the Belize invitation — no doubt his lame attempt at soothing what he perceived to be our ruffled feathers. It was obvious what had transpired, so it wasn’t all that surprising to get Mr. Miller’s final, patronizing reply the next day on the 10th.
As to Mr. Miller’s points, specifically:
“… may not have been for a well-defined project…”Our project has remained the same going back even before our initial meeting with Brandon: approximately 1600 sq. ft. single-story home, insulated well above code, with high-performance windows and doors, 2-BR, 2-Bath, main kitchen/family room area, a 9′ unfinished full-basement, charred cedar for the exterior siding, and we’ve kept the same flooring selections we originally started with, along with a basic door casing and baseboard trim package.
“… reduce costs to better help meet your budget.” Only after EHB went way over budget. Only after we made it clear we were walking away. No doubt they would have been happy to see us just accept the $500,000 price and move forward with the build.
“… wish list items…” What wish list items? The only thing we added after the preliminary budget was 66 sq. ft. of construction space (original 40′ x 40′ structure changed to 49′ x 34′ structure). We’re going for a pared-down design aesthetic based on our tastes, but also to save money, so there is no crown molding, chair railing, wainscoting, coffered ceilings, an oak-lined office, or master bathroom wrapped in Carrara marble. Clearly this is why the only “solutions” Brandon and his team came up with for cost savings during the November, 2015 budget meeting included dramatic structural changes, not altering or deleting extravagant interior design choices.
“… PH plaque…” Mr. Miller refers to this twice, so I can only assume Brandon or Patrick put this in his head. To hint that our attitude was “Passive House certification or bust” is particularly grating since we asked if pulling back from the standard could produce meaningful savings in our May, 2015 meeting with Brandon and Patrick, to which they responded, “No, this is the way we build.”
“… wish list items…compromise somewhere… shift perspective… PH plaque… brag to your friends/family…”It’s pretty obvious that Brandon or Patrick painted us as wildly unreasonable clients who wanted the world for a steal. I would argue the emails between Brandon and myself draw a very different picture.
In Mr. Miller’s defense, we were not his clients, and he was basing his response to us on what Brandon or Patrick told him. Nevertheless, we were asking for help, and we did offer to show him everything related to our project, but unfortunately he ignored the offer.
We were not expecting her to act as judge or jury, we were genuinely asking for help in the form of guidance:
Why were the numbers of the build budget so different from those outlined in the PSA?
What did Brandon mean by “additional Passive House components were necessary” (because he never told us, even though we repeatedly asked)?
What could we have done differently?
Since the Passive House community is so small, who could we trust, moving forward, to not have a conflict of interest with Brandon? Is there an architect, a general contractor, or Passive House consultant in the Chicago area that they thought we could reach out to?
Instead we got the more polite equivalent of: ‘Shut up. Go away.’
Why is their first impulse to try and put me in my place, to try and squash me? It must be said, the arrogance on display throughout this process has been startling. Is it really so difficult to be nice to other people — especially when they are asking for help?
Regarding Ms. Klingenberg’s response, in particular, what is “[Brandon’s] side of the story”. She doesn’t choose to share it with us. And what exactly justifies any builder taking $30,000 from a client and then giving them nothing in return?
As to her suggestion, “the next steps are outlined in your contract,” does she really believe, quoting the PSA now, that “[forced] arbitration before the Northern Illinois Home Builders Association” is the best setting for us to get a fair hearing? This is like suggesting that if a customer had a dispute with ExxonMobil it would make sense to ask the American Petroleum Institute to act as referee.
And I’m certainly not alone in believing forced arbitrationto be an overly business-friendly, Kafkaesque joke ( Bill / Study Shines Light / Part I / Part II ), with serious consequences for consumers, and even for the overall health of democracy in America (#ripoffclause). In fact, there is a growing movement in the US pushing members of Congress to prohibit forced arbitration clauses altogether. When people with authority (the arbitrator) have the option to take the side of the strong against the weak, regardless of the evidence (after all, it’s the companies who pay for the arbitrator), justice is rarely going to be the result.
It’s also surprising, even reprehensible in my opinion, that PHIUS not only tolerates but apparently supports forced arbitration. As an institution they portray themselves as enlightened and forward-thinking, so how can they allow their certified members to utilize such deeply flawed, even reactionary, language in their contracts with clients?
Where do Ms. Klingenberg’s loyalties lie: with the certified members, or with the homeowners? If the honest answer is with the certified members, then this is useful information for any consumer weighing the costs associated with a certified Passive House build.
If the construction industry is serious about cleaning up its reputation (and make no mistake about it, its current status is horrific — e.g. when we tell anyone that we’re building a new house the typical response is roughly: ‘why would you want to put yourself through that?‘), then getting rid of forced arbitration clauses in contracts would be an excellent place to start.
Which prompts several questions:
Why isn’t PHIUS out front leading on this issue?
If not PHIUS, then who? It’s a certainty that The National Association of Home Builders won’t be leading the charge.
Why doesn’t PHIUS require their certified members to eliminate all forced arbitration clauses from their contracts?
If their answer is: ‘it’s current industry standard’ — well, so is building to code, but they don’t tolerate that. PHIUS holds their members to a higher standard when it comes to the structure, so why give them a pass on how they treat the human beings who have to pay for them and live in them?
Maybe more to the point: Why are they using forced arbitration as an excuse to ignore Brandon’s behavior?
“…as a 2009 Economist editorial put it, ‘You cannot claim that your mission is to ‘educate the leaders who make a difference to the world’ and then wash your hands of your alumni when the difference they make is malign’.”
Isn’t a PSA document like the one used by Brandon and EHB a license to defraud clients?By including language such as a non-refundable deposit, and insisting on forced arbitration before an industry paid-for arbitrator, a client has no meaningful options should a dispute arise.
And if, in fact, Brandon baits potential clients with a reasonable sounding preliminary budget in the PSA (this is what we believe he did to us), taking a hefty down payment at signing, and then switches that budget number significantly, and without cause, when presenting a build budget (again, what we believe he did to us), by definition the client has no effective means of defending themselves. It’s a case of Hobson’s choice –— take what’s offered (a ridiculously exorbitant budget) or get nothing at all (again, what we believe happened to us).
Moreover, when Ms. Klingenberg suggests, “We can try to help with advice during the certification process…”, it sounds like she’s more than happy to take our money for certification, but she otherwise can’t be bothered to address what Brandon and EHB have done to our life savings, the time we have lost, or the needless stress that has been inflicted — even when, in large measure, it was their PHIUS stamp of approval (via certification) that encouraged us to pursue a build with Brandon and EHB in the first place.
Mr. Miller’s and Ms. Klingenberg’s replies exhibit a total indifference to the facts at hand. Apparently they would prefer to close ranks around Brandon and EHB rather than confront what Brandon has done to me and my family — taking $30,000 of our life savings and giving us, quite literally, nothing in return. If their responses are any barometer, then clearly PHIUS believes this to be a fair exchange.
Also troubling, if the Passive House concept is ever truly going to be a mainstream idea, rather than perceived as a niche design option for the wealthy, doesn’t PHIUS and its certified members want people like my wife and I — a high school teacher and a stay at home parent — to pursue and even celebrate the Passive House standard? After all, they have a tab at the top of their website soliciting donations for the cause: “Help Make Passive Building Mainstream”.
Moreover, if the premium to build to the Passive House standard is really only 10%, then, considering our own experience, what other conclusion is there but that the fix is in? In other words, if Brandon’s original build budget numbers were accurate, then the premium to build to the Passive House standard is at least 25-30%, in which case PHIUS needs to stop telling consumers it is only 10%. If Brandon’s numbers, on the other hand, were less than entirely honest, why defend him?
Where do Ms. Klingenberg’s loyalties lie: with the certified members, or with the homeowners? If the honest answer is with the certified members, then this is useful information for any consumer weighing the costs associated with a certified Passive House build.
As Martin Parker notes in a Guardian article regarding Business Schools and MBA Programs and their propensity to dismiss critics when things go horribly wrong in the economy, “That’s a tricky position, though, because, as a 2009 Economist editorial put it, ‘You cannot claim that your mission is to ‘educate the leaders who make a difference to the world’ and then wash your hands of your alumni when the difference they make is malign’.”
In addition, and rather pointedly, doesn’t Ms. Klingenberg’s response represent a dramatic failure of leadership? What should a person in a leadership role do when bad news comes their way: Confront it, work through it, and then move on? Ignore it? Or — worst option of all — should they try to bury it?
How can she (or Mr. Miller, for that matter) offer such flippant responses when someone else’s life savings are on the line? Do certified PHIUS members really believe this is an appropriate way to respond?
Furthermore, why are they so quick to take Brandon’s side? In the case of Mr. Miller, without even examining the evidence I was willing to offer. In Ms. Klingenberg’s case, is it because Brandon successfully achieved the Passive House standard on several projects? Doesn’t it matter how he achieved the standard? For example, you would think they might be interested in what Brandon’s previous clients have to say regarding their own experience building with him — e.g. pricing, timeline, job site conditions, the cost to build vs. an actual real estate valuation, etc..Or does none of this matter?
More importantly, why not make customer satisfaction a component of the Passive House requirements? After all, what is the point of meeting all the stringent guidelines for Passive House certification if the result is a homeowner who feels beaten up by a design and build process that forces the conclusion that they have been financially exploited?
Does PHIUS only care about boxes and how they perform, or do they have a genuine interest in the people who live in them? If the answer is both, then why are they not actively evaluating the experience of homeowners along with the performance of the structures? How can a certified Passive House structure that contains an owner who is now cynical about the build process not be considered a failure?
Moreover, as an institution, does PHIUS have policies in place to censure, or otherwise hold to account, its certified members should they behave unethically or even criminally? If such policies exist, have they ever actually been enforced? Or, are we to believe all of their members are morally and ethically perfect?
For a certified PHIUS member who is in good standing, who treats people the right way, it would certainly be irksome to know Brandon and his team get to be listed next to them without even an asterisk to note the difference. Don’t certified members want there to be clear-cut guidelines regarding how architects, builders, and consultants should conduct themselves, and shouldn’t there be serious consequences for those who choose to contravene those guidelines?
“Nonprofit executives and board members also should be willing to ask uncomfortable questions: Not just ‘Is it legal?’ but also ‘Is it fair?’ ‘Is it honest?’ ‘Does it advance societal interests or pose unreasonable risks?’ and ‘How would it feel to defend the decision on the evening news?’ Not only do leaders need to ask those questions of themselves, they also need to invite unwelcome answers from others. To counter self-serving biases and organizational pressures, people in positions of power should actively solicit diverse perspectives and dissenting views. Every leader’s internal moral compass needs to be checked against external reference points.”
— Deborah L. Rhode & Amanda K. Packel
But then expecting even a modicum of objectivity from Mr. Miller, Ms. Klingenberg, or PHIUS was probably expecting too much:
Should the leader of an organization sit on a panel with other judges handing out awards to that organization’s members? It seems like this would be an excellent time to recuse oneself, if only to avoid even a hint of favoritism or undue bias. As a Law School Professor might frame it: ‘It’s not enough to refrain from unethicalbehavior, you need to avoid even the appearance of unethicalbehavior‘.
Yet, as a consumer, I’m expected to believe Ms. Klingenberg examined the evidence I sent her with an open mind, and that she reached an impartial determination as to what transpired between my family and EHB [?]. One wonders, did she even bother to contact any of Brandon’s former clients to ask about their experience building with Brandon and EHB? She didn’t take the time to sit down with us, or even ask us any questions via email, to establish whether we were just irrational cranks or if we had legitimate points to make. Apparently Brandon’s say-so that he had done nothing wrong was good enough for her.
It bears repeating what was at risk here: a family’s life savings. It’s also worth noting that it’s not enough for PHIUS to proclaim progressive values, those values should be reflected in the actions of individual members, as well as the actions and policies of the institution itself. Based on our own experience, we feel PHIUS is just one more institution that consumers and citizens cannot depend on to do the right thing when it matters most. But maybe to them this is all simply a case of: ‘it’s just business’.
It is undeniable that institutions have a nasty habit of closing ranks around their members, even the ones who clearly misbehave. If the member in question turns out to be a bad actor, however, then it is also true that this unquestionably reflects poorly on the institution’s integrity. Consider the recent history of the Chicago police department: Code of Silence / Laquan McDonald’s Shooting / Brutal History
What will Mr. Miller, Ms. Klingenberg, and PHIUS do as individuals and as an institution when this happens again (inevitably — when you consider the whole ‘leopard and his spots’ brand of folk wisdom)? Before protecting Brandon and EHB so forcefully, maybe they should make sure he is telling them the truth.
“If the existing order were a model order, and just and right in every respect, I naturally would have no objections to it. Since, however, it is a mixture of much that is good and much that is evil, unjust, and defective, to be called a friend of the existing order often is to be called a friend of what has outlived its usefulness and is principally evil. Progress is unceasing. Society is constantly changing. Institutions which at first suited the conditions under which they originated may become criminally unjust a half century later.”
— Johann Wolfgang von Goethe
In light of the ever-quickening pace of our modern world, perhaps Goethe’s suggested timetable should be halved, in which case the Passive House concept is ripe for fundamental reform — going well beyond adjustments for climatic differences. History, it should be added, suggests those who currently hold positions of authority in the Passive House movement are unlikely to make the hard choices, or have the stomach to execute a meaningful overhaul.
For more details on how this all got started, check out these posts:
What was supposed to be a straightforward, pleasant experience building a rather compact, eco-friendly Passive House dragged on for a year and a half (roughly September, 2014 to December, 2015) to little effect. After spending $30,000, we have no house, of course, but also no drawings, and not even a partial refund. We gave them $30,000, and they gave us nothing in return.
Presumably, only those contemplating a build with Evolutionary Home Builders (EHB) will punish themselves by slogging through the following documentation, which lays out our unfortunate experience. The information is here to let consumers know what our experience was like. Consider it a cautionary tale.
My wife and I put our house up for sale in spring, 2014, in hopes of moving closer to her work in Palatine, Illinois (she is a school teacher; I am a stay at home dad for our daughter). Faced with a decision on where to live, we decided to build a new home. After reading up on the options available, we concluded we wanted to build as “green” as possible, and building to the Passive House standard seemed like a worthwhile goal. We knew the numbers would be tight, in light of our limited nest egg, but we believed how we built our new home was just as important as what we built.
In doing our research, we came across Brandon Weiss and his project in River Forest — the first certified Passive House in the Chicago area. Based on his reputation (various certifications such as Master Builder and certified Passive House builder, and any number of articles from local media outlets detailing his projects in the area), we chose to move forward with Brandon and what had recently become Evolutionary Home Builders (EHB).
Even before purchasing a lot, we put down, in September, 2014, at Brandon’s request, $30,000 for a Design-Build Professional Services Agreement (PSA). At that time he assured us a Passive House was possible at $200-205/ sq. ft. for a single-story home under 2,000 sq. ft., and with a full 9’ basement included (the total dependent on the quality of finishes and any extras).
The PSA outlined a prospective budget for our 1600 square foot structure, with a total ranging between $375,000-410,000 (this included the initial $30,000). The timeline we were given included 90 days to design and 6-8 months to build. We assumed that this meant there was a good chance we could move into our new home by the end of 2015, or the early part of 2016 if hiccups occurred during the build process.
After some delay, the design phase only began in earnest towards the end of January, 2015. They were working off of drawings I had given Brandon back in June, 2014, during our initial meeting in his new office showing a 40’ x 40’ floor plan created on RoomSketcher, along with hand-drawn exterior elevation ideas. During the design phase their in-house architect, Patrick Danaher, changed it to a 49′ x 34′ structure.
It was not until the end of July, 2015, however, that we received our first official construction drawings. Nevertheless, we were very excited to see actual plans for our future home, and I kept insisting to my wife that no matter how much it felt like our project was an afterthought, EHB are supposed to be the experts in their field, so they will be worth the wait.
After additional delays, we were finally presented with hard budget numbers in late November, 2015. In that meeting, without any warning, we were given the following price to construct: $470,000. This seemed high, I assumed it must include the $30,000 PSA payment, and that I must be misunderstanding something. It was only while driving home, as my wife patiently explained to me that the $470,000 number did not include the $30,000 (therefore the total price would be $500,000), that I realized we could not afford to proceed with the build. Also worth noting: the $470,000 included nothing for contingencies or potential escalation costs.
In addition, during this budget meeting we requested a hard copy of the numbers to take with us. We were told no, we could not have it, that these numbers were only preliminary, and that a hard copy would only be made available to us after signing an official Build Contract (we were presented with various numbers in an Excel spreadsheet format, which proved more confusing than helpful — particularly since Patrick kept scrolling up and down, never allowing us to see the columns of numbers in their entirety).
In our subsequent email exchanges, a phone call with Brandon, and a face-to-face sit-down with Brandon, the claim was made repeatedly that the budget numbers contained intellectual property. Even if true, which seems doubtful, why was our $30,000 insufficient proof of our commitment to build with EHB? How could we make informed decisions without all of the budget numbers in front of us?
Moreover, the numbers presented to us were even worse than they initially appeared because Brandon had removed substantial value by changing a 9’ basement to an 8’ basement, removing a window from the basement (leaving us with only one), and by converting the concrete driveway to an asphalt driveway.
In effect, the $500,000 number should have really been $515-525,000 if the 9’ basement, the second basement window, and the concrete driveway had been left in (these items had previously been in the drawings, and they had always been understood to be included based on email exchanges and conversations in their office). The point is not that we had our hearts set on a concrete driveway, for example, rather it is how Brandon and his team appeared to manipulate the numbers in order to make them look less bad than they really were — it felt like they were trying to be devious.
Overall, then, the budgeting process struck us as fundamentally dishonest. When pressed repeatedly as to why the build budget was so different from the numbers outlined in the PSA, Brandon only offered a vague explanation, noting “additional Passive House components were necessary” — what these were, or why they were necessary, was never explained.
In our final meeting (the face-to-face sit-down), Brandon did finally admit that the energy modeling in the PHPP software showed a significant penalty for a single-story structure with a full basement. Since EHB sell themselves as experts in this field, and they had never done a single-story home before, and they had nearly a year to research potential issues with this type of structure, why were we only now — over a year into the design process — finding out about it?
No one, at any time, suggested we needed to convert our single-story structure into a two-story structure if we intended to hit the budget numbers as laid out in the PSA. There is also no language in the PSA regarding potential budget increases based on how the energy modeling turns out.
Our take away impression: EHB felt we would accept virtually any number given to us since we were so far along in the process and they already had our $30,000. That, in effect, we could not walk away, and that we would just accept the inflated price and move forward with the build.
Keep in mind, if we had proceeded, we would have ended up with a $625,000 2-BR, 2-Bath, 1666 sq. ft. single-story home ($500,000 to build + $125,000 for the lot), with no high-end finishes (not even any ceiling lighting in the family room or the two bedrooms), and before spending anything on landscaping (not to mention an 8’ basement with only one window). I was going to install 5” wide hickory wood flooring and wider trim for the door casings and baseboard, but the extra material cost would have been offset by my free, “sweat equity” labor. These were the only finishes in the house that could be construed as “high-end”.
More importantly, because no equivalent home exists in the Palatine market, our house would have been impossible to ever sell for anything near what we would have paid for it. This, in turn, raises the question: Even if we had accepted the $500,000 price ($625,000 with the lot), how were we ever going to secure financing for the project when the cost was so far above anything resembling market value?
This idea that their budget made the house financially irresponsible to build appeared to be entirely lost on Brandon. This is particularly disturbing given that the very first sentence of his PSA document specifies fiscal prudence as an explicit goal: “The goal of the parties is to build a well-constructed, healthy, super energy efficient and sustainable home at an economical price” [emphasis added].
Based on the PSA (which is all we ever had to go on), the budget we were expecting should have looked something like this:
$325-350,000 (Original 40′ x 40′ layout = 1600 sq. ft.)
$13,500-14,500 (Extra 66 sq. ft. = 1666 sq. ft.)
$20-25,000 (Water and sewer issue, and 2 retaining walls)
$30,000 (Design-Build PSA)
$408,500-449,500 (TOTAL COST)
We’re not the unreasonable client who wants to add additional square footage, and additional high-end finishes, and then balks when the cost goes up. Note, too, that the numbers to build range from just over $203/ sq. ft. – $218.75/ sq. ft., so we were willing, even at the time of signing the PSA, to end up at nearly $220/ sq. ft. instead of the $205 Brandon initially quoted. Nevertheless, their budget came in at an astounding $249/ sq. ft. As a result, their budget leaves at least $70-90,000+ unexplained (again, at least $70,000 because of the missing 9’ basement, second window in the basement, and concrete driveway).
At that point, in December, 2015, we reached out to several of Brandon’s prior clients to see what their experience had been like (admittedly, we should have done this before handing over our $30,000). It was revealing, and quite depressing. Not one of them would feel comfortable recommending Brandon and EHB to family or friends without serious reservations. Most of his former clients flat out said they would not recommend Brandon or EHB under any circumstances. In fact, in our discussions, several common themes developed that were congruent with our own experience:
1. Poor communication skills:Via email, or in person, they (meaning Brandon, Patrick, and Eric) leave questions unanswered, and they fail to listen — therefore requests have to be repeated over and over, or else they are implemented incorrectly.
2. Budget numbers cannot be trusted:We heard repeatedly, from separate clients, that whatever you are told add at least 25% to get an accurate idea of real costs (whether in the PSA or the harder numbers of an actual Build Budget). It is important to emphasize, this is prior to any change orders on the part of clients. In other words, as it was explained to us, during the build process Brandon would come to the clients and repeatedly tell them what they had ordered was discontinued, or the item was out of stock, and the alternative was going to be more expensive. As the clients pointed out, in the middle of the build process, what choice do you have but to pay? In addition, we were told by clients, independently of one another, that Brandon and EHB had — rather perversely — done us a favor by manipulating the numbers prior to our build commencing, rather than after, since it allows us to walk away before losing significantly more money (which had been their own experience with EHB).
3. The design capabilities of EHB are mediocre at best:Every client we spoke with urged us to seek outside design help, both in the form of an architect and for any interior design work.
4. Don’t be fooled by the hype:Brandon is very good at marketing his projects, and he has enjoyed a great deal of free advertising by having his homes covered in local media outlets, and on the internet more broadly. So why have his clients, when given the opportunity, not spoken out about their negative experiences? We believe that, even after being put through a gut-wrenching build process, few clients will have the nerve to criticize Brandon and his team when a journalist calls to talk about what a unique home they have just built, and how great it must be to live in. Understandably, homeowners in this situation are already looking for reasons to justify what they have gone through — both emotionally and financially. The message we received from his clients: there is a wide gulf between surface (how EHB present themselves) and substance (what the design-build process is really like).
5. EHB builds a solid wall assembly:Every client was happy with the quality of their structure, but they were equally unhappy with how this was achieved — for reasons outlined above. Our conclusion: EHB is a conventional builder who can put up a better wall assembly. In every other respect, however, EHB fulfills the stereotype of the average homebuilder: over promises, under delivers, is sloppy with budget numbers, and plays fast and loose with their clients’ life savings.
I should also note, after the initial email and phone call letting EHB know we could not move forward, Brandon, during our final sit-down, explained how he was able to reduce the budget to $403,000 by getting donated materials from manufacturers, and by seeking lower numbers from their subcontractors. In other words, they were prepared to charge us $500,000, but now they could build the same house for nearly $100,000 less with no drop off in quality — either in materials or craftsmanship [?] . Furthermore, based on what their previous clients had told us, we had every reason to believe the $403,000 would climb back up to $500,000 as they clawed the money back with inevitable “unforeseen” expenses throughout the build process.
Since deciding not to move forward with Brandon and EHB, we have been told (1)there will be no partial refund of our $30,000, and that we cannot use the drawings (our lawyer has explained to us why this latter claim is unfounded). The PSA even claims we cannot build on our own lot with another builder for two years. Moreover, because of a forced arbitrationclause in the PSA, we have few legal options (#ripoffclause).
We were not looking for a full refund, we understand some real work has been done, but we do feel a partial refund of $15,000 is in order since we are not moving forward because of the actions of EHB — in other words, due to no fault of our own. The fact remains, if the budget numbers had been accurate and fair, we would have proceeded to build with EHB.
We also understand that the construction process is always imperfect, that compromises will always have to be made. Yet if the evidence available is examined, we believe the only conclusion is that Brandon and his company have demonstrated a willingness to violate their clients’ trust, and that they have engaged in behavior that, at the very least, is unethical.
Nevertheless, there is no reason why you should take our word for any of this. In fact, learn from our mistake and — prior to signing or doing anything — please reach out to their former clients as listed on their website and in the many articles published about their projects. In addition, I have the PSA that my wife and I signed, a year and a half of email exchanges between myself and Brandon (here’s a sampling), along with the construction drawings, in order to substantiate my claims.
It is worrisome that builders like Brandon fail to appreciate how their actions not only harm their own reputations, but how they put the very concept of Passive House, or even the notion of green building itself, at risk. If Passive House becomes synonymous with corrupt business practices, as a way for builders to pad their profits without offering substantial value, then the progress of the green building movement may find itself impeded, if not entirely halted. This would be unfortunate in light of the ever growing body of evidence that shows the negative impact our current code-built structures have on global warming.
Based on our experience, and the experience of Brandon’s former clients (as it was told to us), we would encourage anyone interested in pursuing Passive House certification, or green building generally, to look elsewhere besides EHB. Look for a quality builder with a great reputation for service and attention to detail who is willing to take on the challenge of constructing a better wall assembly. Much of the information regarding this type of building program is open-sourced and therefore readily available in books, magazines, and on the internet (e.g. PHIUS, Green Building Advisor, and Fine Homebuilding magazine — to name just a few great resources).
If you have questions about any of this, or if I can help in any way, please feel free to contact me at my email address:email@example.com
“We agreed to look at their lot options to help them know the pros and cons of each lot.”When Brandon and Eric Barton were out looking with us at the lot we would eventually purchase, I drew their attention to the visible fall in grade present (roughly 3′- 4′ in some areas, moving high to low from south to north), wondering if a retaining wall would be necessary. They both responded that it would not be an issue. Yet we were told late in the design process that not one but two retaining walls are necessary because of the significant grade change, and that they will cost a couple thousand dollars. How is this helping us?
“We tell our clients … design and construction can take anywhere from 12-18 months.”We were never told any such thing. Again, we were told 90 days to design, 6-8 months to build. In fact, they brag about how quickly and efficiently they complete the build phase, so this is nonsense, particularly for a smaller house, like ours, that is just under 1700 sq. ft. (outside dimensions).
“… two large savings opportunities.”The “opportunities” we were offered included changing cathedral ceilings to flat ceilings throughout ($5,000), and moving the garage to the south end of the lot ($3,200), which would have entailed direct access to the interior, even though from the very start I had expressed how important it was that the garage not have direct access to the house(2). So they over-charged us, we believe, by $70,000-90,000+ and their solution was to reduce costs by $8,200, which also happened to further reduce the value of the house.
“Anita answered… ‘no reason to panic'”. It was me, not my wife, who said this. And as I explain above, I did not yet fully appreciate the significance of the numbers, due in large part to the convoluted way in which they were presented. Anita, on the other hand, rarely spoke during the meeting, having mentally latched on to the $470,000 number, assuming, unlike me, that the $470,000 did not include the $30,000 PSA payment, and terrified that even at $500,000 — without a 9′ basement and no high-end finishes — that I would still want to proceed with the build.
“…they did not want to look at the specs…” In our final sit-down with Brandon, it is true, we did not see the benefit of looking at the specs, and for two reasons: First, he had already claimed there was intellectual property rights involved with the budget numbers, so we did not want to be accused of stealing at a later date. Secondly, at that point, we didn’t trust anything he had to say. As far as we were concerned, he had engaged in bait-and-switch sales tactics, yet he expresses astonishment that we didn’t want to look at his numbers.
“…we have continued to work on the project for them.” Doing what, exactly?
“In our past experience… if a client needs to adjust price… there is a value engineering process to refine things.” How could price not be an issue for us when Brandon so badly overshot the budget laid out in the PSA? In addition, from our very first meeting with Brandon we were very open and transparent with him about what we had in savings, and how important it was that I do sweat equity work to help contain costs. The goal from the very beginning was to control costs — e.g. in terms of interior design choices — so that we could more easily hit the $375-410,000 budget number, and then, at that point, reduce the price even further with my sweat equity work. The notion that we should “value engineer” down from a bloated price of $500,000 is ridiculous. If Brandon was acting in good faith, why not warn us prior to the budget meeting that costs were way over, and then during the meeting walk us through those costs, component by component, to show us where all the money was going?
“…we have met the obligations of our agreement.” If you’ve gotten this far, I’ll let the reader evaluate this bold claim.
(2)It’s still a relatively recent idea, with a slowly growing awareness of the risks, but the research seems compelling: if you can’t avoid having an attached garage (in our case), at least avoid direct access to the garage from the house. And if that’s not possible, then start and back out, and turn off your car upon returning, as quickly as possible. It’s also worthwhile to keep chemical fertilizers, pesticides, any product containing solvents, and lawn equipment that uses gasoline and oil in a separate outdoor shed — again, if it’s at all possible.