Structured wiring has proven to be fruitful for builders. Driven by the mass adoption of high-speed Internet and home networking, structured wiring offers homebuyers an efficient way to import and distribute networking, audio, video and security throughout their homes.
Basic 4-1-1: According to TecHome Builder’s sister publication, Home Electronic Ideas, a structured-wiring system consists of three components: cabling, outlets and a hub. The scope of this system, which includes what technology options are offered and the amount of rooms to receive the distributed services, can be determined at the point of sale. A basic system features a centralized hub that is normally located in a utility room or basement, and protected by an accessible enclosure, along with a wiring package that contains Cat 5 cables that carry voice, data, audio and video and a RG-6 cable that also carries video. Wall plates, which are located wherever the homebuyer desires, complete the system. The wall plates are then connected directly to a television, telephone, audio amplifier or computer through Ethernet and audio and video cables.
Pluses 4-1-1: The best thing about a structured-wiring system is that it is reliable. Unlike a wireless network where homeowners can experience dropouts, interference and hotspots, a structured-wiring system’s access is consistent everywhere a homeowner has an installed outlet. Moreover, it’s affordable.
Installation 4-1-1: As the structured-wiring market has matured, the ease of integrating the products has increased as the category has become more sophisticated. Since the components of a structured-wiring system fall under the definition of low-voltage, new homebuilders can work with security, electrical and custom-electronic professionals to install these products, which are normally installed before the walls go up. Builders should be cautious, however. Many trades look at the category as a high-volume profit center and use haphazard installation techniques to expedite the installation process to save money. With that said, it is imperative that builders seek out qualified installers that are authorized product resellers in order to ensure system reliability.
Cost 4-1-1: As noted earlier, well-equipped systems typically run between $1,200 and $2,000, and when that price is spread over the life of a mortgage it translates into a nominal fee for a homebuyer. There are base offerings a builder can present their clients that cost less money, and this may include a single RG-6 cable for television or Cat 5 cable run to provide Internet access to a home.
Profit 4-1-1: With variable like marketing, system packages, labor and hardware costs, profitability is difficult to quantify. Experts say that most homes utilize approximately 11 drops and a total of 35 linear feet of cabling which, depending on the cost of the cables and wall plates, can help provide a base level for hardware expenses. Generally, the total builder cost is a few hundred dollars, plus labor. Totaling up these costs, and assuming that a builder doesn’t use structured wiring as a loss leader sales incentive, builders can expect margins that are in line with other home option amenities.
Codes: The Electric Industries Association (EIA) and the Telecommunication Industry Association (TIA) have developed the most common certification for the category. The joint efforts of these organizations has produced the EIA/TIA 570-B, "Residential Telecommunications Cabling Standard" and the standard EIA/TIA 568-B "Commercial Building Telecommunications Cabling Standard" to set values for compatibility, performance and reliability.
The NAHB does warn builders that these standards should be used as guidelines, and they should not be confused with any local, state or federal building codes.
More 4-1-1: Additional information on the category and specific products can be found at: