Hello, hello. Today's video topic is: "Prasil builds with bricks, and why does that make your construction more expensive?" And I don't know what it's like in your city, but in mine, like, every construction site has a dumpster out front. That's becoming quite common there, a passageway, right? You walk by and don't even notice anymore. But this truck bed, it's quite large, okay? In 2021, Brazil generated approximately 48 million tons of construction and demolition waste. That's roughly 227 kg per inhabitant. So, I don't know where your little foot is doing that. I weigh around 90-something kg. I shouldn't, but, you know, age is catching up with you, you know how it is . So, imagine adding another 227 kg to your weight. This applies to every Brazilian, every year. And my friends, can we call this a mess? Of course . This is purchased material. Think about it, someone went there, paid for that thing, paid, right? Let's say there's a house here in the middle of the construction. The guy paid, he took it to the construction site, and then he paid again to have it sent away to another location. There are even studies that estimate that around 10 to 30% of all the material purchased for a construction project—this here, my friends—ends up in the trash. In fact, in some aspects it's worse. Thin dough, like one of these here for example, can be up to 80%. Paint and brick exceed 25%. So, think about it, man, 80% of it is fine dough, meaning that out of every five bags you buy, four end up as dust and in the trash. So the most obvious question you must have asked is: does Brazil build in this bizarre way? And I'm going to show you a few things, including calculations that make perfect sense for a construction company, okay? But if it happens in your work, it will backfire on you. So it's the same calculation with the sign reversed. But anyway, about that question about bricks, right? Because we build with bricks, we're going to get some answers that, individually, are somewhat incomplete . First things first are going to be cultural, right? People will say, "Ah, Brazilians love bricks, they trust in heavy walls, they think a house has to be solid, right?" So, there's the cultural aspect, and there's also the issue of technological backwardness, right? There's a lack of technology, a lack of knowledge; the sector is backward. And there's a third thing as well, which is that the bank doesn't finance, you know, different systems. There's that one too, you can only do it with masonry because the box doesn't accept anything else. And I'm going to take this one down real quick, okay? Because for many years, this answer here was true. The box, for example, classified Light Steel Frame as an innovative system, as we call it. It was an innovative system; it required a document called Datc. And the Datc is issued through a system called SINAT, which is part of the PBQPH, the Brazilian program for quality and productivity in housing. So, you managed to get a datc, for example, as we're seeing here, but that's a lengthy process, and it's also for a select few . Approval takes 6 to 12 months, depending on the complexity. So, in practice, this blocked the funding, right? And without funding, there will be no market. But something happened: in May 2022, NBR16970 was published, which is the Brazilian standard for Light Steel Frame. So, with the regulation published, the system ceased to be innovative and became conventional now. And then Caixa started financing L-frames under the same conditions that I would have. And Caixa's housing guidelines confirm this, right? There is a version from December 2025 and the system with the BNT standard is conventional and eliminates the need for the old TEC system for buildings with up to five floors. In other words , the barrier fell, and it's been 4 years already. But the steel frame market in Brazil is still pretty much a joke. I'm not making jokes to denigrate steel frame construction, okay? I'm saying that it represents very little, it represents 2% of the Brazilian market, only 2%. He's even grown up, okay? It 's growing well, it grew 60% in 5 years, but growing 60% on top of almost nothing is still almost nothing. Meanwhile , masonry is present in 88% of Brazilian buildings. So, take a look at what we just did here, right? They removed the regulatory barrier, opened up financing, published the rule, and the market reacted slightly. So, when you remove a major problem and the issue still doesn't change, the indicator isn't moving, it means that wasn't really the root cause of the problem, right? So the problem isn't the bank, it isn't the regulation, it isn't a lack of technology, because the technology is there, it 's also standardized, and it's financeable. And then I'll say, man, the real problem is that the numbers don't add up. So, on account of that, I need to show you which account, because just think, what does industrialization mean, right? The word industrialization, it means one thing. Industrialization is a process of exchange. You are exchanging labor for capital. That's the deal here. This is the exchange that is taking place. You're getting an advance payment from the factory, right? You 're creating a detailed and precise design, and that saves time for people on the construction site. Therefore, an exchange, and every exchange, depends on price, and this exchange is worthwhile where labor time is expensive. Now, where the hour is cheap, it's not worth it. Okay, let me put some numbers here that are, let's call them brutal numbers. It looks like a Discovery Channel series, doesn't it? Brutal numbers. Because let's look at this: the average salary of a bricklayer in Brazil is R$ 2,760 per month. These are the average salary figures for a bricklayer. To give you an idea, in the United States, the salary of that same bricklayer is, in dollars, $53,000, but that's obviously per year. That works out to about $5.50 per hour. Then, if you do the conversion in your head, the hole will appear by itself. Now think like someone who builds to sell. In the United States, every hour you save on the construction site is equivalent to paying for a piece of the factory right there. So industrialization pays for itself. Now in Brazil, the time you save is worth very little, so the factory doesn't pay for itself. And there's the other side of the coin too, which is capital, right? To industrialize, you need money upfront. And in Brazil, paying money upfront is expensive with the Selic rate, right, at 14%, which I've already mentioned in other videos. So, when you put those two ends together, you have cheap labor on one side and expensive capital on the other. So the rational answer here is to expend labor and save capital. And saving capital has a special name in Brazil. This term is called masonry. So it's not a delay, it's a correct response to the pricing system. And that's why this problem won't be solved with just a little talk. Nobody's going to change the system through persuasion, right? Especially if the spreadsheet shows the opposite. So, I'm going to bring up a more explicit account number here, but I need to be transparent about the source. I'm getting a source here from a steel frame company, okay? Because almost all of these figures comparing sales to steel frame construction come from companies that sell steel frame construction. So treat it as just an order of magnitude, okay? This isn't a neutral study, is it? I even looked for some independent studies in Brazil, but I couldn't find any. But in any case, the direction is consistent across all sources here. So, this frame has an initial cost that is 15% to 30% higher than Venaria, but the construction time is halved and the total cost of ownership is lower in the long term because of thermal performance and reduced maintenance. So this variation in the budget goes from 15 or 25% to two or three. So, regarding this last point, the budget for sheep farming varies from 15 to 25%. And translate that through your ear. You're hearing it like this: the project will cost 500,000. But what was said, in reality, is something else entirely; it's between 500,000 and 625,000, because of that 15 to 25% variation. So we're saying, look, we're going to discover some things along the way. So you put it all together, right? Steel frame construction may have lower initial costs, but it wins in terms of total cost. And those who make decisions in Brazil think, we always decide based on initial cost, always, because expensive capital, you know, it shortens our horizon there. Think about it: someone who pays 14% interest per year on money can't even begin to imagine the savings that might materialize in just three years. He needs you to close it now. And if you follow this channel, this phrase has already appeared here, right, in other forms, right? The person who decides on the method is not the one who pays for the method. But there's proof that this theory is correct, okay? And on the inside of Brazil, because, for example, if you go to one of the larger "Minha Casa, Minha Vida" (My House, My Life) projects , you won't see bricklayers laying the blocks one by one there. You 'll see aluminum formwork and a molded concrete wall right there on the site. And it's the same there, day after day, day after day. So this is heavy industrialization; it's extremely expensive to set up, but incredibly efficient afterward. And why did this happen on your street? Because there are 300 identical units there, right? And then with 300 repetitions, the capital advanced gets diluted, right? That's why the math works out. Now that I own a house, the math just won't add up. In other words , what I mean is that Brazil is not incapable of industrializing. It industrializes precisely where the scale pays for it, and uses labor where it doesn't pay that much. So ultimately, we're talking about the same equation throughout the entire video, but it's going to be solved in different ways within the same country. And I 've been giving some very interesting information here about the productivity of the Brazilian workforce, because they say that the productivity of labor in our construction industry is only 20% of that achieved in the United States, meaning five Brazilians are needed to do what an American does. But before anyone complains in the comments, calm down, okay? People are already saying, "Brazilians are lazy, and all that stuff ." No, Brazilian bricklayers are good, but productivity doesn't measure effort, right? Productivity, you're measuring other things along with it. You're measuring method, you're measuring tools, you 're measuring organization. And often it's the organizers who aren't the best. And there are even worse figures. The CNI, for example, shows that productivity in the Brazilian construction industry has fallen by 20.4% in 30 years. In other words, it didn't improve, it went down. So it's not that the world moved on and we stayed still, it's that we moved backward. So, in 30 years, man, Brazil ended up producing less for construction workers than it did before. And there's a number that explains a good part of this, because in 2021 only 25% of jobs in construction were formal. And in the manufacturing industry, that number was 66%. And here's a number that explains this well: in 2021, only 25% of jobs, specifically construction jobs, were formal. In the manufacturing industry, for example, it is 66%. And think about it this way, look, a sector with three out of four workers in the informal sector, if it doesn't train them, it won't be retained either, it won't accumulate a method. And that's where the cycle closes, right? It becomes vicious, because cheap, informal work—what does that mean? That no one will invest in methodology. And then, without a methodology, productivity drops, and low productivity keeps labor cheap as well. So it's a trap, and it's been spinning on its own there for 30 years. And so we're going back to our nice old truck bed here, because think about it, when you don't industrialize, you don't need a precise design, because the adjustments will happen on-site, right there in the facelift, with the bricklayer figuring it out on the spot, right? I'm bringing this kid here doing freestyle so you can see what this freestyle is all about. It's freestyle, it's freestyle. Me bringing up memes from 18 years ago, right? And so, this might even sound nice, you know. There can be flexibility, there's a way, there's adaptation, a Brazilian way of doing things. But this adjustment to the construction has a physical cost, right? And it's called breaking what's already been done. So you build the wall, then you discover the water meter is wrong, then you tear it down and replaster, then you find out there's a missing electrical outlet, then you tear it down again , then you lay the flooring, then you change the door, then you tear it down again, then, I don't know , your uncle comes along, the dog comes along, the parrot comes along to give ideas, then you tear it down again . So, each of these broken pieces ends up adding kilos to the truck bed. Oh, the bag here was the one the parrot gave its opinion on. This is the one your mother-in-law gave her opinion on. This one here, I don't know, the neighbor went in there and gave her opinion too. And for every kilogram in the truck bed, you had to buy it twice , right? You had to bring it here to put it there and then take it away. And that's why the takeaway from this video is this, man. The debris on the sidewalk is the result of the project never being completed. So it's not the mess, it's the physical form, right, solidified, like the marshmallow ghost from Ghostbusters. Ali is a physical manifestation of a decision that no one made on paper. And look at the outcome of this in the construction industry . Only 21% of this waste is recycled, even though 98% of it would be recyclable. And it's worth understanding, man, why this chain is so difficult to reverse? which has a historical answer here. The first cement factories in Brazil were established here in the mid- 1920s, right? Then in 1940, BNT published NB1, which is the standard for calculating and executing reinforced concrete structures . In other words, the country standardized concrete before standardizing almost everything else that existed. Think of the 1940 BNT standard for concrete. And we're talking about L Steel Frame, which emerged in 2022, almost 100 years later. So what happened? Then came the war, right? Brazil also joined the Allied bloc in World War II. Brazil received American technology and also built the national steel company, CSN. This pulled in steel, it pulled in cement, it pulled in energy all at once, all this way. So, concrete and cement, they became a national project for the country, and then there's industry, there are standards, there's money generated based on that as well. So, 80 years later, what happens? We have an entire chain that's calibrated for this method. And then the supplier, the corner store, the bank, the appraiser, the foreman, the bricklayer, everyone's prepared for that. So, changing things in the consulting system isn't about changing materials, it's about changing an entire chain, and it 's about changing it all at once and in a single, isolated process. That's why those who try to break the mold quickly discover that you'll pay a price in the process. You won't find trained labor nearby, and often you won't find replacement parts in the warehouse either. The bank appraiser, you know, has to look askance too. But there's a whole burden involved in maintaining this process. One of the major contributors, including environmentally, is cement production, for example, which accounts for about 7% of global carbon dioxide emissions . I've seen data that shows it's 8%. And the construction sector as a whole accounts for about 40%. I've seen data that says it's 37, I've seen data that says it's 38, 39, but it's somewhere around there . But the design here in Brazil is different. The cement industry accounts for 2.3% of emissions. So, you see? 7% of the world total and here 2.3%. Why? Because we make much better cement. No, because our energy matrix is ​​clean, right? So she changes the account a lot. So, I'm not going to come up to you and say that Brazilian bricks are melting glaciers, am I? That would be dishonest of me. But what I'm saying here is something else entirely, something more concrete for you. Think of it this way: wasted material is carbon, it's money being thrown down the drain. So you end up paying two bills at once, and the second one is going to be the one that really hurts your wallet, right? And remembering that masonry has its advantages, we can't ignore that, can we ? Think about it, masonry work is repairable for anyone, anywhere in Brazil. There's a pipe burst inside the wall in Rondônia, there's a guy who can fix it for you. So this has real value, right? Nobody puts that in the spreadsheet. Another thing is that she accepts change. You decided to open a gap there two years later. It can be done. Now, the industrialized system is more rigid, right? Because it is precisely the rigidity that provides precision. There's another issue as well, which is about the mass. It's a heavy wall; it has thermal inertia. And in climates with significant day-night variations, this really helps. So it's not just some construction worker's superstition, okay? There's applied physics involved here. Another thing that's also important is spare parts, right? Block, cement, sand. It's over there in the corner warehouse. You can do it there today, right? Go quickly and get it. So, considering all of this, poultry farming isn't stupidity; it's a technology adapted to a country with an abundant workforce, right? It's cheaper too; they say it's getting quite expensive, but it 's still cheap. It's also a fragmented supply chain, and some customers change their minds every day, right? So what I'm criticizing here, folks, isn't the brick, okay? It's like making bricks without a design, which is what turns a reasonable technology into a garbage-making machine, right? I even made a video about houses in the United States, right? We know that a large part of it is wood, Japan is too, Nordic countries as well. And it's not a poor person's house in one of those places, obviously, right? Here in Brazil, wood carries a greater stigma, doesn't it? Wooden houses have become synonymous with the name there, haven't they? From temporary housing, shacks, for those who haven't yet managed to build a proper brick-and-mortar home. But it 's curious because Brazil has one of the largest planted timber industries in the world. There's no shortage of material for that. I've also made a video about wood for the channel, and it turned out really great . But notice what that stigma does, right? It's not just a random opinion; it ultimately becomes a price factor as well. It will sometimes result in a lower valuation of the property at the bank. It could become difficult to resell, and it could also become a topic of conversation among your family at Sunday lunch. Therefore, some technical decisions end up being made there out of fear of resale value. And it 's also an economic decision, right? It's just disguised as a matter of taste. But everything I've said explains the market. So my question to you is: are you the market? Maybe you are, but I think the market wouldn't be very interested in watching my videos, to be quite honest, because, well, real estate developers have scale, they have large construction sites, they buy in volume, they have a fixed team that repeats the same apartment 100 times, and most importantly, they'll dilute a lot of mistakes. And when you make a mistake in one unit out of 100, the cost will be spread across 100 units. But now think about your project, just one house , a small team, that one with a full workspace . Each wall that's rebuilt comes entirely out of your pocket, with no one to split the cost with. In other words, the cheap labor that makes masonry work rational for her isn't cheap for you, and you don't buy the time wholesale like a large construction company does. So, look at the budget variation, right? Those 15 to 25% figures for a construction company are just statistical noise among 300 units. Now, for you, there's a difference between finishing the house and stopping at the roof slab, right? So here, man, is an important point from the video, okay? Those who lack the scale to mitigate errors need the right plan to avoid making mistakes. So here, design is a substitute for scale, and needless to say, the CAL, the Council of Architecture and Urbanism of Brazil, has research showing that 82% of homes in the country are built without architects or engineers. I had already seen data of 85%, perhaps it has evolved. So what I'm trying to say is that most of the country's construction projects are handled by those least able to absorb the risk, without the only tool that reduces error: the designer. And if you're going to build, these are decisions that will affect your progress, okay? And none of them require changing the construction system there. So I want to give you some ideas of what you can do in practice, okay? Because if you're going to build, there are decisions that move the needle there, and none of them affect the construction system, okay? One of the issues is the detailed design. So , it's not just architectural design, okay? The detailed design specifies the location of each pipe, each conduit , and each electrical point; it's what will prevent you from having to break things. Number two, compatibility. So what I'm talking about here is architecture, structure, plumbing, electrical, everything designed together, competing on paper instead of competing on the wall. And a compatibility meeting costs less than rebuilding a wall, okay? Number three, plan your floor and wall layout before buying materials, because this transforms a purchase of 10% more as a precaution into the calculated number. This is also essential. Another thing is modular masonry, because if you're going with blocks, you design the wall in multiples of the block size. And that alone cuts and breaks up debris, and it won't cost you an extra R$1 in materials . One more thing, ask for a quote with a breakdown of the components, not a fixed price, okay? If the builder gives you a round number and no items, what they've given you is a very wild summer guess that looks like a spreadsheet, okay? So, this is fundamental. Number six, keep the variation. Think about it this way, okay? If your masonry budget ranges from 15 to 25%, plan accordingly from the start, okay? And those who don't reserve will have the work halted right there. So, that's fundamental as well. Number seven, if you're considering steel frame or wood frame, then I'll put SF and WF. You have to ask questions, okay? You have a trained team that's there, within a reasonable radius of your construction site, right? The bank finances it, right? After 2022 the answer is usually yes, but give it a second look. Beauty? So Brazil doesn't build bricks out of stupidity, it doesn't build them out of backwardness, nor out of preference, okay? He builds because in a country with cheap labor and expensive capital, spending labor and saving capital is the right answer. So, masonry is the technology that this whole equation produces. And the price of all that was in that picture of the dumpster you saw, right? Up to 30% of material is becoming waste, and productivity has fallen by 20% in 30 years. The budget varies by 1/4 upwards there. And that cost doesn't just disappear, does it? He only gets paid by those who weren't at the decision-making table there. And often, in a construction project, you're the one who isn't at the decision-making table . And I have some good news here. You don't need to change countries or switch construction systems to escape the worst part of this equation. What you really need is planning, a project. And it's precisely here that a good portion of the works are lost, right? It's not due to a lack of money, it's due to a decision made at the wrong time, with missing information in the middle of the construction site, and the bricklayer waiting for an answer. And that's why we have two options for you. One of them is the correct case. It is a planning system for those who are going to build, buy, or renovate. And then there's a spreadsheet that completes the whole process; you fill it out, you discover everything you need, you look at money issues, financing, etc. Your best decision, whether it's to buy, renovate, build from scratch, or even just wait, is also a good one. And there is only one objective here. If you are going into a meeting with an architect, engineer, or builder, it's ideal to know what questions to ask. In fact, the modules that matter most in this video are about where to save money, because we need to know how to separate things, what will truly reduce the cost of the project and what will push costs, and costs that can be very high later on. And that's the difference between saving money on paper and saving money on the dumpster later. It 's even ready for launch, okay? There's a link in the description. And there's a second option for those who also want to build, which is to carry out projects with us. Qu Green has been using this logic from the beginning. We create high-performance architectural projects , focusing on performance, thermal comfort, and sustainability. Most of our work is behind-the- scenes consulting for architects, construction companies, and developers as well. But we open a limited number of slots to apply this methodology directly to projects from the concept delivery stage. But I need to be very clear about one thing, okay? This is a contracted and paid design service . It's not a barter, it's not a partnership, it's not a division of an undertaking. You fill out the form in the description, our team reviews it and gets back to you to discuss the scope and investment as well. So you have two options. If you want to decide for yourself, you have the right case, right? to decide methodically. And if you want the project designed with this logic from the start, talk to us. Both links are in the description. And I hope I've contributed to you in some way here. If you enjoyed the video, give it a thumbs up, don't forget to subscribe to the channel, and I'll see you in the next video. A big hug.