Cost Comparison

What is the cost?

Building with SIPs generally costs about the same as building with wood frame construction, when you factor in the labor savings resulting from shorter construction time and less job-site waste.

Other savings are realized because less expensive heating and cooling systems are required with SIP construction.

The cost to build a SIPs house depends entirely on its design. Generally the installed cost of Premier SIPs is comparable to stick framed construction. But when you look at the benefits of labor savings, and less waste, SIPs offer short-term construction savings as well as long-term benefits for the homeowner in energy savings.

The following is an independent study demonstrating these energy savings: Mark Whitaker, an independent energy consultant in Mesquite, Texas, compares SIPs vs. stick frame building envelopes and projects the utility cost one can expect to pay based on the type of HVAC system, local utility rates and heating and cooling days. Here is an analysis comparing the operating costs of a 1,522-square-foot Dallas home using two different construction envelopes.

SIP Energy Efficient Home Conventionally Constructed Home Home Owners Pocketed Savings
Estimated Operating Costs @ 4% Annual Cost Increase 5 years
10years
15 years
20 years
$2,464
$5,463
$9,111
$13,549
$5,647
$11,552
$17,742
$24,246
$3,183
$6,089
$8,631
$10,697

So how does a home end up costing less to build if SIPs can be slightly higher than traditional stick frame?

  • Pre-insulated! No need to purchase additional insulation
  • Pre-fabricated & precut when delivered to the jobsite: save 20–30% on framing labor
  • Electrical is installed 20–30% faster
  • Jobsite waste reduced from pre-cut panels — saves approximately 30% on waste costs
  • Tighter house means smaller HVAC systems — up to 40% savings
  • Predictable STRAIGHT engineered product is plumb & square every time = faster install for finish work. Doors/windows/millwork: no bowed lumber = straight walls for faster doors/window/millwork install. Floors: level floors and walls = no need to shim!
  • House is dried in faster, subs can start sooner — fewer wasted “crew” days
  • Little to zero duct work required
  • No roof venting required in low slope roofing
  • Better indoor air quality, smaller or no air purification systems required in many climates
  • Buildings & Houses are FINISHED faster! Less interest paid!!
  • Qualify for $2000 federal tax incentive to the builder and an additional $1500 to the homeowner
  • Warranty!! Does your lumber manufacturer offer any warranty? No — SIPs do.