Mid-Atlantic Builder July/August 2010 by Maryland Building Industry Association

Mid-Atlantic Remodeler Section 19-22

Marylandâ&#x20AC;&#x2122;s New Hazardous Substance Reporting Law 26

MID-ATLANTIC

Vol. 52 Issue 3 July/August 2010 www.homebuilders.org

Managing Storm Water 2010 General Assembly Session Report

PLUS NEW SECTIONS Market Recovery Series Government Affairs Stats & Facts

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MID-ATLANTIC BUILDER july/august 2010

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july/august 2010 MID-ATLANTIC BUILDER

July/August 2010 Vol. 52 Issue 3

PUBLISHER John Kortecamp

EDITOR Kristin Josephson Hogle, Editor communications@homebuilders.org

ADVERTISING Chris Baughan, Advertising Sales Manager 410-265-7400, ext. 121 chris@homebuilders.org

DESIGN Network Design Group Jen Smith, Art Director Heather Winkel, Graphic Designer

HBAM LEGAL COUNSEL Linowes and Blocher

MID-ATLANTIC BUILDER

Legislative Review

Market Recovery Series

a synopsis of the major issues considered by the legislature. Five Steps to Making Solid Staffing Decisions Make informed decisions when rebuilding your staff to handle your increased business while also controlling ﬁ xed overhead costs.

4 6 8 32 34 36

Publisher’s Message President’s Message Events New Members government affairs stats and Facts

Putting a Stalled Economy Behind You Find out the qualities that can contribute to business success, no matter what’s happening in the economy.

Pages 19-22

Workers’ Comp Misclassification job misclassiﬁ cations can dramatically change your workers comp premiums and you can pay dearly for mistakes.

Remodeler

Maryland’s New Hazardous Substance Reporting Law

the full picture for Maryland’s hazardous substance reporting requirement will come into focus later this year.

Also 28

BRAC Navigating the BRaC market

Featured Recipe Margaritas

Green Building a Quick start to Bronze (or even silver!)

Corners Energy Efﬁ ciency Foundation sMC Education

Departments

MID-ATLANTIC BUILDER july/august 2010

MID-ATLANTIC

Pull-Out Section

A supplement to Mid-Atlantic Builder

Postmaster: Send address changes to Home Builders Association of Maryland, Inc., 7127 Ambassador Road, Suite 150 Baltimore, MD 21244.

CUSTOM PUBLISHING SERVICES PROVIDED BY Network Media Partners, Inc. and Network Design Group, Executive Plaza 1, Suite 900, 11350 McCormick Road, Hunt Valley, MD 21031, 410-584-1900

ECO BOX Mid-Atlantic Builder text and cover pages are printed on SFI certiﬁed Anthem Matte using soy ink.

Call for Entries

2010 HBAM Remodelers Awards of Excellence www.homebuilders.org/page/RCawards/ Deadline July 21

HBAM Remodelers Council Award of Excellence

James Contracting Inc., Brown Job Outdoor Living, 101K - 150K www.homebuilders.org

is a publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 7127 Ambassador Road, Suite 150, Baltimore, MD 21244 410-265-7400, www.homebuilders.org.

JANUARY/FEBRUARY 2010 MID-ATLANTIC BUILDER

Departments

Before & after President’s Message Events and Education New Members

• SFI standards conserve biodiversity and protect soil and water quality, as well as wildlife habitats. • SFI participants also plant more than 650 million trees each year to these thriving forests.

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John H. Myers & Son Now Has A Full Service Lumber Yard & Showroom In Aberdeen, MD! The building industry is tough. So it's no coincidence that many successful builders and remodelers choose John H. Myers & Son as their supplier. Myers provides solutions to the toughest challenges the industry has to offer. • 100+ years combined industry experience • Dedicated sales representation • Complete, correct and just-in-time deliveries • Showroom with current and professional displays • Special order capabilities • Design assistance – kitchens, baths, engineered floors, and roof systems • Take-off capabilities • Installation assistance • And Much More

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2010 HBAM Leadership Photo Credit stuart zolotorow

Executive Committee Eliot Powell President Bob Goodier President Elect

publisher’smessage

Rod Hart First Vice President Matt Wineman Associate Vice President Cynthia McAuliffe Secretary Theresa Leatherbury Treasurer

Extreme Kudos The HBAM offices have been a flurry of activity for the past few weeks. There isn’t an open

conference room to be found and Chris Rachuba is a constant fixture in the middle of the activity. Chris has been serving as the president of HBAM’s charitable foundation, The Maryland Community Builders’ Foundation, for the past two years and he has generously undertaken a project bigger than we could have ever expected. If you haven’t heard by now, the hit television show, Extreme Makeover: Home Edition has selected Baltimore for their next build. Ty Pennington and a crew of hundreds are coming to town to build a home, working 24/7 to complete it in just seven days. This project is the largest home ever built by Extreme Makeover: Home Edition, finishing up at over 10,000 square feet! The Foundation brought Excel Homes, a custom modular builder and HBAM member from Pennsylvania, into the loop to make this happen. At the time of this writing, the home has not yet been completed but let’s just say you will be impressed when you see the recipients of the home and hear the stories of the people coming together to change their lives. I want to give Extreme Kudos to Chris Rachuba of Rachuba Homes for literally dropping everything to pull this project together on behalf of the Foundation. The Maryland Community Builders Foundation, founded in 1999, is the charitable arm of the Home Builders Association of Maryland. It was formed to promote shelter related activities for those less fortunate throughout the Baltimore region.

MID-ATLANTIC BUILDER july/august 2010

Mike Owings Immediate Past President

The Foundation focuses on ‘sticks and bricks’ projects that provide shelter or shelter improvements for needy families in the six counties and city serviced by HBAM. The strategy of the Foundation is to provide shelter-related charitable services in the region by calling upon HBAM members for donations of labor, materials and funds and boy, have we called on our members for this one. Chris has pulled together the products and services of our generous members to get this home built. The architecture, windows, foundation, doors, trim, tile, photography, videography and so many other products and services have been donated by companies willing to pitch in to make this project a success. In addition, HBAM members are donating hundreds of hours to pull off this “extreme” project. There are far too many to mention here, but we will make sure you get your kudos too when we all gather together this fall for the viewing party. Sign up on line at www.baltimoreextrememakeover. com to receive an email when ABC sets a date to air the show and like the Maryland Community Builders Foundation on Facebook to find out more. Thank you all for your involvement.

John Kortecamp HBAM Executive Vice President

Chapter Presidents Eric DeVito Anne Arundel Councy Russ Dickens Howard County Evan Morville Baltimore County Sean Davis Baltimore City Dan Whitehurst Upper Chesapeake Paul Kotsher Carroll County

Council Presidents Guy Caiazzo HBAM Remodelers Ryan Houck Sales and Marketing Council Theresa Leatherbury Land Development Council Bill Zahler Maryland Residential Green Building Council Bob Goodier Certified Master Builder/Remodeler Steven Gilman Builder Mart

HBAM Board of Directors Tom Baum Shawnn Bittorie Steve Breeden Ron Carstens Pat Costello Chickie Grayson Joe Gregory Joe Hikel Jim Hunter Chip Lundy Sandy Marenberg

James Mathias John Meade Dan Murtaugh Rich Pezzullo Steve Rubin Jake Ruppert Kevin Sapp Susan SongyOwens Steve James

Alternate Directors Scott Armiger Erik Dardas Matt Helminiak Jay Hergenroeder Paul Mueller Tim Naughton Andrew J. Poffel Leslie Rosenthal Mary Beth Taylor www.homebuilders.org

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Visit www.homebuilders.org for an Photo Credit Stuart Zolotorow

on-line listing of Mid-Atlantic Builder advertisers with hotlinks. There, you can also view MAB archives and find information on upcoming events and current industry issues.

president’smessage

Are we there yet? So often the refrain of an anxious child on along road trip. It’s the same unanswerable question we have been asking ourselves in this seemingly endless trip out of this recession. The road signs

are confusing; sales are up one month then down the next; unemployment is down across the state but dangerously high in our industry and so on. When looking for signs of improvements in the market we seek our own pet indicators, often to no avail. Consequently, the vast majority of us have learned to hunker down and live with less, hoping the recession will end soon. But, we are an optimistic lot who will emerge from this experience smarter, battle tested and ready to reach new heights. Beyond the confusing economic indicators lie an indisputably strong infrastructure. Remarkable new data from BRAC, NSA and the Cyber Command set the stage for the demand of jobs and housing - the likes of which we could not have imagined. Maryland, with the Chesapeake as its beacon, is the place people are drawn to - not from. None the less, we need to be on our toes. Those who continue to advocate no growth are staking out their positions now. Many of them unfairly hide behind the cloak of legitimate environmentalist.

MID-ATLANTIC BUILDER july/august 2010

And, after the elections this fall, new and bolder legislation will be proposed with the goal of crippling our industry. So, as painful as it may seem at times, seek out and support your pro real estate candidate now. We will be glad we did. So, are we there yet? If “there” is a full recovery, obviously not. However, our people are tough, our infrastructure is strong, builders are in the market for lots and, for now, interest rates are low. We are emerging at a slow but steady rate on the road to a healthy economy and we’re being lead by those who have survived. Sorry - there will be no bathroom stops!

DIRECTORY OF ADVERTISERS Appliance Dist. Unlimited 1 BGE 13 BGE Outdoor Lighting Inside Front Cover California Closets 39 Eastern Alliance 22 Excel Homes 15 GE Contract Sales 9 HMS Insurance 22 John H Myers & Son, Inc 3 Keller Stonebraker 22 LP Building 5 Marvin Windows Back Cover Mid Atlantic Propane and Gas 8 M&T Bank 38 Northrop Group of Long & Foster 18 Saratoga Insurance 29 Southern Pacific Supply Inside Back Cover Verizon Wireless 7

Eliot Powell 2010 HBAM President

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Events

CALL 410-265-7400 for information on registration for our events or visit www.homebuilders.org.

LIVE GREEN • SAVE GREEN

The Land Development Council Awards of Excellence in Community Development

Celebrity Chef Night

Maryland Green Show

October 14, 2010 Martins West

November 6 & 7 Maryland State Fairgrounds

September 23, 2010 Maryland Historical Society

Chef Night goes to the movies! Join us at Chef Night where you can bid on hundreds of auction items while you enjoy the delicious movie-themed food prepared for you by our HBAM builder, remodeler and developer members. Email carey@homebuilders.org to donate an auction item or show-off your culinary talents.

Make sure you’re part of the 2nd Annual Maryland Green Show. Presented by the Home Builders Association of Maryland, this event promises to bring motivated consumers together with cutting edge green technology, products, design and experts. The exhibition will feature a strong emphasis on consumer education. If you’ve got green, this is the show for you.

The Land Development Council Excellence in Community Development Awards recognize excellence in land development for design and quality and acknowledge outstanding contributions by companies and individuals. If you have a project that you would like to enter into the Awards of Excellence program, please contact Carey Swift at carey@homebuilders.org.

MID-ATLANTIC BUILDER july/august 2010

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july/august 2010 MID-ATLANTIC BUILDER

2010 General Assembly Session Report Legislative issues affecting the building industry

BY Katie Maloney

Executive Summary The Stormwater Management issue took center stage for the development industry this session. Maryland State Builders Association staff and members participated in a stakeholder negotiation that lasted most of the session. The result was a set of emergency regulations that provided local approval authorities a waiver mechanism for projects with preliminary plan approval. In addition, the regulations provide clarification about the treatment design options for redevelopment projects that wonâ&#x20AC;&#x2122;t meet the impervious surface reduction requirements. The emergency regulations were affirmed only days before the session ended, fulfilling a commitment made by leadership to formalize the agreement before the end of session. The industry wonâ&#x20AC;&#x2122;t have a sense of how well the waiver process will work until at least mid-year, as many local jurisdictions have had to redraft their ordinances in light of the regulatory changes. Most jurisdictions should have new laws in place by July 2010. The 2010 General Assembly Session Report provides a synopsis of the major issues considered by the Legislature affecting the building industry, a progress report of all legislation monitored during the session, voting records of Delegates and Senators on selected issues and statistical information showing the number and types of bills followed by the Maryland State Builders Association Legislative Committee. Katie Maloney is the principal with Maloney and Associates and can be reached at 410-263-0070. www.homebuilders.org

July/august 2010 MID-ATLANTIC BUILDER

Land Use Issues

Tax Issues

The industry strongly supported a measure aimed at extending the permit and approvals tolling law passed in 2009. The 2010 legislation extended tolling through 2012 and added specific language outlining the types of approvals to be considered for tolling. Local jurisdictions fought the legislations claiming they could extend their current local laws on an as-needed basis. Although the bill passed the House Committee and ďŹ&#x201A;oor overwhelmingly, it died in the Senate Committee. The bill sponsor and the industry have reached out to local jurisdictions to encourage extensions of local tolling ordinances.

The Comptrollerâ&#x20AC;&#x2122;s office is interested in further expanding their ability to tax real estate transactions, consumer goods and other products sold in Maryland. The Tax Compliance Act of 2010 was introduced to provide statutory authority for the expansion but was not acted on by either chamber. Expect to see this issue reintroduced in 2011.

Environmental Issues

Professional Issues

MSBA took an interest in 2 measures seeking to further regulate the use of residential fertilizer. Fertilizer use on residential lawns is a major source of pollution loading and is easily preventable through proper application and use of phosphorusfree products for established lawns. Although both the fertilizer reporting bill and reduction in the maximum amount of phosphorus allowable bill both died, the industry will work with environmental organizations to introduce legislation in 2011. The legislature introduced a stormwater utility tax bill for the second year. The industry supported the bill with specific amendments that provide a cap and appeal process for commercial property, a not-to-exceed provision for residential property, limitation on the use of the revenue and a requirement that the funds be placed in a dedicated account to be used for retrofit purposes. The bill was not voted on in either chamber but is expected to be introduced again next year.

Legislation requiring new single family dwelling units to be constructed with visitable accessible features including a zero-step entrance was introduced for the 4th time this year. The industry lead opposition to the legislation arguing that the market will drive production of homes with these types of features and often zoning law, smart growth policy and topographic constraints render these components financially infeasible. â&#x2013;

MID-ATLANTIC BUILDER July/august 2010

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market recovery series

Five Steps to Making Solid Staffing Decisions By Roger Fiehn

ow that you have cut your operations to survival levels, it is time to re-invent your business to ensure a rapid return to profitability — and to be better prepared for the next housing slump. Yes, there will be another one.

Nothing will be more important in your future planning than to make informed decisions when rebuilding your staff to handle your increased business while also controlling fixed overhead costs. As the market stabilizes, your future success will depend on recruiting the very best people you can find, placing them in the right positions, helping them grow personally and professionally, monitoring their performance and weeding out any team members who do not consistently produce the desired results. The following are five steps that will help you endure tough staffing decisions and allow you to jump ahead and remain ahead, of your competition as the market reemerges and your revenue increases:

Review Your Team Revisit the position descriptions of your existing team members to make certain they reflect the primary responsibilities and accountabilities of each function. Many of your staff members probably have been multitasking during the downturn, so identify the functions where each one has excelled and determine where they have struggled. Don’t be afraid to ask them which current responsibility they would swap for a new one, if given the choice. Realigning responsibilities based on team member competencies will help increase your company’s performance because an employee generally will do best where he feels most comfortable.

Revisit Benefits Revisit and compare your compensation and benefit plans with those of your competition. Make certain each team member understands the total value of your compensation plan as well as your group insurance programs, vacation and wellness pay, company cafeteria benefit options, access to affinity programs and other programs. If your team members feel they are being compensated appropriately and enjoy a great working environment, they will focus on their assigned tasks rather than search for a better position.

Organizational Charts

The charts will allow you to examine staffing at various levels of revenue and help you identify which positions were critical at any given point. If you have already completed the first step and reviewed your team, you now know where your company’s pressure points may be and, by comparing them against your previous organizational chart, you can make rational decisions on where to add full- or part-time team members.

Recruiting Always begin any recruiting activity by posting any open positions to all existing team members. The best candidates will come to you as a referral from an existing team member who understands your company philosophies, culture, direction and opportunities. Current employees will not knowingly recommend anyone they think will be a bad fit. Next, post the position to your “ambassadors” — anyone who benefits when you have a closing — on your social networks, blogs, groups of potential specialists, your home owners and search engines. Newspaper advertising is generally used only as a last resort.

Be Patient Take time to give your new team member a proper introduction to their position. Be patient, because it generally takes a new team member about 30 days to settle in and understand your company philosophies, idiosyncrasies, policies and procedures. Assign a mentor to your new employee to answer any questions they may have. Show visible appreciation and support by complimenting them when they do something correctly. The first 30 days will tell you whether or not you made the right hiring decision and, if you didn’t, then bite the bullet and terminate them before they disrupt the other team members. n Roger Fiehn, Fellow, MIRM, CMP, MCSP, CSP, is president and CEO of Roger Fiehn & Associates, Inc., a team of sales, marketing and business management strategists assisting builders, developers and suppliers in North America, Latin America and the Caribbean. For more information, call him at 281-481-0831 or visit www.rfiehn.com.

Begin archiving your organizational charts if you haven’t done so already so that you can refer to them when you anticipate adding employees. 14

MID-ATLANTIC BUILDER july/august 2010

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market recovery series

Moving Forward Putting a Stalled Economy Behind You By John Graham

f we’ve learned anything over the past couple of years, it’s simply that nothing is easy. No matter what the product or the industry, doing business —and staying in business —is no picnic. And, that may not change much in the next year or so. In spite of a few hopeful signs, most Americans seem to think that a cold economic winter will be around for a while.

While the state of the economy sets certain parameters, we do ourselves a disservice if we believe that it necessarily determines whether we succeed or fail. John and Peter Greene came back into the ground transportation business just as the recession hit and corporate travel was being grounded. Not surprising, many limo operators were in trouble. Yet, John and Peter Greene’s new company, ETS International, which serves the Greater Boston market, went from zero to 60 in nothing flat and has shown enormous growth in 2009 and has even attracted experienced investors. The reason for such success is simple—incredible focus, in depth experience and a vision of what can happen if you work at it hard enough. There are other qualities that can contribute much to business success, no matter what’s happening in the economy. Here are 11 of them: 1. No one is exempt when it comes to performance. Few CEOs earned more respect than A.G. Lafley of Proctor & Gamble. For years, he was an icon of American business if there ever was one. During his lengthy tenure the company’s revenues doubled, for example. But when the 2009 numbers sagged, he was sacked. It’s the same story with Bank of America’s CEO Ken Lewis who literally built the first truly “national” bank in U.S. history. But when BofA hit the wall, he was history. The recession pushed performance to the top. 2. Unsupported action leads to disaster. During the recession of the early 1980s, Coca-Cola panicked as its 52 percent market share plummeted to 24 percent. In response, the company threw out its 100-year old formula and came up with a taste more like that of its rival, Pepsi-Cola, in an effort to stop its losses. It’s still known as the dumbest decision ever made by a company. After three months, the old formula was back and it’s still known as Classic Coke and Coca-Cola was ready to regain the lead. The failure to think through the implications of decisions can be costly.

MID-ATLANTIC BUILDER july/august 2010

3. Perceived value is real value. Even in the most difficult of circumstances, experts often advise against major price-cutting and advocate a value-driven strategy. Hyundai, the auto manufacturer, is amassing new customers with its value, safety and 100,000 mile assurance program. It was the same with Applebee’s restaurants. When their customers dropped down to fast food, business sank. But Applebee’s responded with a value offering “two meals for under $20” that is pulling back lost customers. 4. Urgency is in. Not long ago, someone overheard an employee say, “Well, the customer just needs to understand that….” No matter what we may think, that’s a killer comment, as are these: “We can take care of that tomorrow” or “Do we really need to do that?” Urgency is often the edge that attracts customers. 5. Never listen to those who think they have all the answers. Anyone wanting answers should spend their time listening to talk shows. What they won’t hear, however, is anyone asking questions and it’s questions that uncover problems and help make improvements.

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6. Doubt your perspective. When urged to change General Motor’s corporate deeply inbred culture, its former CE, Fritz Henderson, is reported to have said, “But that’s all I know.” This candid response told the story. He and his management team were prisoners of their own perspective. Under a new CEO from outside GM, they were quickly replaced. To one degree or another, we’re all prisoners. To make meaningful contributions, we need to set ourselves free. 7. Watch out for the subversives. These people are skilled at undermining and derailing action. They’ll do just about anything to avoid getting things done. Using clever delaying tactics, they put on the brakes and they always find an excuse for not getting around to reviewing a project, preparing a proposal or following up. They’re in every organization, from top to bottom and particularly in between. They call meetings, not to get things moving, but to stop anything from happening. The best solution is to help them find a job with a competitor. 8. Encourage customers to pick your company’s “brain.” Every business has proprietary information that must be guarded. At the same time, sharing ideas, insights, experience and helpful information is one of the most effective ways to draw prospective customers into a company’s orbit. White papers, newsletters and timely bulletins are the tools for communicating value to prospects. Yet, companies turn off prospects without knowing it. Today, I received six emails offering reports or information that caught my interest. But when I went to “click here,” the free offer was conditional. In each case, I was required to provide complete contact information, including a telephone number in several cases. The message was clear: the offer was simply bait to get what the company wanted. At the same time, its value was totally diminished. The goal is to impress the customer with what you know, not drive them away by taking advantage of them. There’s no need to hogtie prospects when the power of your information will pull the serious ones to you. 9. Watch out for bandwagon thinking. A marketing consultant tells of a meeting where the sales manager said the company needed to get into the social media or be left in the dust. Although he was making an important point, it’s also “bandwagon thinking. And it’s dangerous because it’s seductive, taking our minds off reality-based issues.

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A few years ago, email “blasts” were the “answer, with companies wasting billions of dollars on endless lists and frenzied distribution—all with little or no results. And before that it was fax “blasts,” which produced equally dismal results. The consultants often do their best to make us feel we’re outof-date if we don’t move instantly—and buy their services. To avoid embarrassment, we sign on. The way to avoid such costly traps is to do your homework— first. 10. Require transparency. Obfuscation is out and transparency is in. Whether it’s a company or a person, privacy is an illusion. There’s no way to hide. If we say it, do it, write it, email it, text it or post it, someone will find it—so never be surprised. Acting otherwise, can be a tragic mistake. This means that transparency is neither a moral nor an ethical issue, it’s the new reality. 12. We’re never maxed out. Although many responded to the recession by learning new skills and taking on more responsibility, most simply caved in and hunkered down, hoping to dodge a bullet. While going through comments about “what the recession taught me,” several ideas stand out: • “Leftovers make really great meals.” • “Security is an illusion.” • “There’s a difference between needing and wanting.” The recession was a “shake up” call, forcing us to realize that maybe we just thought we were giving our all. Doing business is never easy, in spite of what some may say. The tasks ahead may be more demanding than ever and certainty of success may always be a question. Yet, we have the tools to put a troublesome economy behind us, if that’s what we decide to do. n John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He writes for a variety of business publications and speaks on business, marketing and sales issues. Contact him at 617-328-0069 or jgraham@grahamcomm.com.

july/august 2010 MID-ATLANTIC BUILDER

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Mid-AtlAntic

Remodeler A supplement to Mid-Atlantic Builder

Call for Entries

2010 HBAM Remodelers Awards of Excellence www.homebuilders.org/page/RCawards/ Deadline July 21

HBAM Remodelers Council Award of Excellence James Contracting Inc., Brown Job Outdoor Living, 101K - 150K www.homebuilders.org

JANUARY/FEBRUARY 2010 MID-ATLANTIC BUILDER

Mid-Atlantic

Remodeler

A supplement to Mid-Atlantic Builder

2010 HBAM Remodelers Guy Caiazzo President

Board of Directors Nicole Bliss Guy Caiazzo Taylor Classen Cheryl Crowther Arif Durrani Tim Ellis Steve Gilman Danny Kalmus Doug Kelly

Yvonne Lienhard Ryan McGinn Jennifer Nugent Bill Patteson Joe Smith Gregory Wall Bob Weickgenannt Howard Warfield

PAST Presidents Bill Rauser John Martindale Dave Chmura

Michael Owings Donald F. Lynch, Jr.

2010 SPONSORs Members do business with members Presenting Members

before&after James Contracting Inc. Brown Job This family wanted an escape from the hot sun and still enjoy the comforts of their back yard, so a roof over their existing deck was designed and blends in beautifully with their home. They are now able to entertain and enjoy the outdoors on both sunny and rainy days. n

ChesapeakeHome Magazine

KC Company/Pella Windows

Lynch Construction

Why join HBAM Remodelers? Member Benefits

Susquehanna Bank

Saratoga Insurance

T.W. Perry Contact 410-265-7400 about 2010 Sponsorship Opportunities

HBAM Remodelers offers many benefits to its members. Remodelers benefit from a variety of educational, mentoring and networking opportunities. In addition, the HBAM Remodeler’s serves to improve the quality of the industry and its members through these programs. By promoting certification programs to consumers, members of the council are sought after for their strong professional and ethical principles.

News & Information National: Members of the Council receive a free subscription to Professional Remodeler magazine. Each issue focuses on practical business insights from the country’s leading remodelers. Members also receive NAHB Renews, a monthly e-newsletter about national news that affects our industry. Regional: Members of the Council receive a free subscription to ChesapeakeHome Magazine and are offered special advertising opportunities designed to help them reach upscale homeowners. Local: The council is featured in each issue of HomeFront, HBAM’s monthly enewsletter to promote its members, programs and events. Mid-Atlantic Remodeler is included in each issue of Mid-Atlantic Builder magazine.

MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder JULY/AUGUST 2010

Welcome Our New Members Joe Gray Gray Insurance Group Brian Wood ART Wood Builders

For additional information on the HBAM Remodelers Council, contact Kim Dresser at 410-265-7400, ext. 115 or kim@homebuilders.org.

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events and education

HBAM Remodeler’s Council Mix & Mingle First of all, if you didn’t attend the Remodeler’s Council Mix & Mingle you missed a great evening — Relaxing Company, Good Food, Good “Beverages”, and a Great Band with the RC’s “Great Durrani” from Pella Windows at the keyboard .

Awards of Excellence Mark your calendar for the evening of November 18, 2010. It is the gala evening of the Awards of Excellence. It is a simple fun evening -- we get dressed, we eat, we drink and we hand out awards to you for your projects. After a trying work year it is a great opportunity to spend an evening being recognized for the work you have done. Yes, bring your better half and your staff. What better way to say, thank you, to them. You should have received a project registration packet, if not, call Kim Dresser at 410-265-7400, ext. 115, and request a packet. Any size or type project may be submitted. Assembling the submission packet is pretty easy. Why enter? Simple, there is no better advertising than saying you are an Award of Excellence winner to a prospect.

Green & Remodeling The 2009 HBAM Annual Maryland Green Show in Timonium was a success. Efforts are under way for the 2010 show with one major difference, John Kortecamp, HBAM Executive Director, has asked if the Remodeler’s Council would be interested in participating in the show, in fact, turning it into a green and remodeling show. Members of the RC Executive Committee have had two discussions with JK and the Staff to determine our role, exposure and type of commitment required. IT’S A GO FOR REMODELERS. The show will be a regionally advertised consumer show focusing on green products, remodelers and the use of green products and educational seminars. Efforts will be made to keep it remodeling and green, not pots and mops. The show is scheduled for November 6th & 7th (Saturday and Sunday) at the Maryland State Fairgrounds in Timonium.

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HBAM Member Benefits When the market tanks, as it does periodically, the first reaction is to cut expenses, right? Yes and No. All too often, memberships and advertising are cut but in fact, you should find ways to INCREASE you visibility. As an HBAM member you have access to a variety of opportunities to expand your advertising and marketing at a fraction of the normal costs; The Maryland Green Show, Builder Mart, Builder News Network, www.homebuilders.org, special credentials and much, much more. The opportunities to reduce operating expenses are the most missed and yet among the most significant money savers. There is a host of HBAM associate member companies and affinity partners which provide HBAM members with discounted services. When packaged you are likely to find out that the savings will cover your membership cost and still reduce your operating expenses. For a detailed list of affinity programs and contact information, visit www.homebuilders.org/page/moneysavings/. I won’t even get into the opportunities to save hard dollars resulting from networking with remodelers, builders and associates. The bottom line is clear. Expand you visibility through advertising and marketing while reducing operating expenses all through HBAM. Remember, members need to buy from members.

Guy Caiazzo

HBAM Remodelers President

Education

September 21, 2010 8:30am-4:30pm Business Management for Building Professionals (formerly Intro to Business Management)* (Required CGA/CGP designation course) taught by Bill Rauser CAPS This course teaches strategies and techniques for building a competitive sustainable remodeling business. September 22, 2010 8:30am-4:30pm Marketing & Communication Straggies for Aging and Accessibility CAPS 1 taught by Bill Rauser, CAPS This course provides a background on the older adult population, communication techniques and common remodeling expenditures and projects. This course provides Builders and Remodelers information and techniques to assist in accessing the agingin-place remodeling market. September 23, 2010 8:30am-4:30pm Design/Build Solutions for Aging & Accessibility-CAPS 2 taught by Bill Rauser, CAPS This course provides information on the codes and standards, common barriers and solutions, as well as product ideas and resources for the aging-inplace remodeling market. (Elective Credit for MCSP) *Holders of the following designations are exempt from this course for CAPS designation: CGR, CGB, CGA, CKD, CBD, ASID, AIA. Other exemptions determined by NAHB on a case-by-case basis.

$300 ea—HBAM members $350 ea—Non HBAM Members All Courses will be held at the HBAM Conference Center 7127 Ambassador Road, Suite 150 Baltimore, MD 21244. JULY/AUGUST 2010 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder

Mid-Atlantic remodeler

president’s message

Mid-Atlantic remodeler 22

MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder JULY/AUGUST 2010

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market recovery series

Workers’ Comp Misclassification: A Small Mistake That Can Cost You Big By Kevin Ring

or years, an oil delivery company in North Carolina paid consistent Workers’ Compensation premiums. Then, suddenly, the premiums went up, though the job functions; number of employees and incidents remained constant. An audit revealed that the classifications of two employees were now classified as truck drivers, even though they were actually maintenance workers.

In Colorado, an outpatient, long-term care provider that transports the elderly to day-centers and provides in-house services, sees its Experience Modification Factor go through the roof. The company discovers that its 512 employees are classified in eight different class codes, several of them at a higher risk level than expected. In fact, none of the employees were classified at the lower “office code,” although 20 percent of the employees were strictly office personnel. What these two companies have in common is “misclassification.” This occurs when the clerical worker at a sawmill, using all 10 fingers to input data into a computer, is “classified” at the same job risk level as her co-worker at the buzzsaw who could lose a finger at any moment. And with over 600 possible job classifications and more being added all the time, it’s an all too common problem among employers.

MID-ATLANTIC BUILDER july/august 2010

In 2007, the Workers’ Compensation Insurance Rating Bureau (WCIRB), a government entity that oversees job classifications in California, undertook a study to determine if there were classification errors among 219 large companies. These companies represented $26.4 billion in combined payroll and their premiums were large enough to impact 10 percent of the Workers’ Compensation ratings. The final results were a wakeup call not just for California employers, but companies throughout the country. Of the 219 companies audited, 46 had payroll errors. All because of misclassifications and all of them could have possibly been avoided. The National Council on Compensation Insurance (NCCI), which acts as the insurance industry’s ratings bureau, determines most job classifications. Their “bible” is the Scopes Manual, which gives specific ratings and descriptions of all types of jobs, from miners (among the highest) to office workers (among the lowest). These ratings, based on an estimated level of risk, are the jumping off point when determining how much Workers’ Compensation premiums a company will pay for each job classification. www.homebuilders.org

While businesses change constantly, the change often does not trigger a review of job codes. This was the case of a sawmill in North Carolina, a company with high-risk exposure and high premiums because of the work they do. When the decision was made to close the mill and have the wood cut overseas so they could turn their business into a wholesale operation, it didn’t occur to the company to change its classifications. I’m willing to bet that the insurance agent never once walked through the facility to see that the operation had fundamentally changed and to discover why the company continued to pay Workers’ Compensation premiums based on a higher manufacturing rate and not the lower service rate. Once the errant classification was discovered and changed, the company saved more than $400,000 in premiums. So the million-dollar question, or in the case of that Colorado long-term care provider, the “quarter-million-dollar” question since that is what they saved in premiums after getting their workers correctly classified, is how businesses can make sure they are being accurately classified for the work they are doing? Here are some simple steps you can take: Ask your insurance agent how jobs are being classified. But don’t be surprised if he doesn’t understand it himself. One of the biggest challenges is getting the insurance companies to understand the ratings and how they are applied. Don’t assume the job classifications are correct just because they haven’t changed. Once they are set, it is unusual for the ratings

bureau to revisit them unless there is a dispute. Read your policy. It only takes 5-10 minutes, but that error you find could result in substantial savings. For instance, an outdoor sign company in Wisconsin had $80,000 in payroll tied up in an $8 class code, never realizing for years they could split the payroll over two codes. Once they discovered this, they were able to split the payroll into an $8 code and a $3 code, saving over $12,000 per year in premiums. Don’t let the insurance agent copy from an old policy from year to year.

Things change; your business changes. As the employer, you are the steward of your business. You should know everyone’s job. Don’t wait for your premiums to skyrocket to discover something is off kilter. Do your own homework. If the agent is less than accommodating in getting you information on class codes, go to a library and do the research yourself (or get a new agent). Don’t take no for an answer. If you are sure of your facts and feel that some of your workers are improperly classified, be tenacious and demand that your business or plant be re-visited.

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Don’t feel like you’re in the fight all by yourself. By bringing a trained Workers’ Compensation advisor into the situation, someone who knows how to spot the red flags and can offer solutions, you can greatly increase your chances of solving any problems and saving money. This is what Vicki Pullins did. As co-owner of LinguaCare Associates, Inc., a privately-owned practice of speech-language pathologists, she saw her premium shoot up, but felt she was ill equipped to contest the increases. She enlisted the services of a Certified WorkComp Advisor, who did an extensive overview of what the company did, when they did it, where they did it and what the risk was. It was discovered that the company was receiving an extremely high-risk classification for a relatively low risk operation (visiting schools and hospitals to conduct speech therapy). The Advisor further discovered that all 17 employees were classified as doing off-site work when in reality; only two were actually traveling to various locations. The workers were re-classified, saving the company approximately $15,000 annually in Workers’ Compensation premiums. “When we were told it didn’t have to be this way and we had an option to change it, we were delighted,” recalls Ms. Pullins. “It couldn’t have come at a better time. We were coming off a lean year in 2009 and our margins were tight. But that change in our premiums gave us the opportunity to grow in what could have been a problem year for us.” Misclassifications are common and you can pay dearly for the mistakes. However, by knowing what to look for, by being pro-active, not accepting that every classification is correct and by working with experts who know the Workers’ Compensation system inside and out, you can save significant dollars, year after year. n

Kevin Ring is the Director of Educational Programs for the Institute of WorkCompProfessionals, the Asheville, NC-based organization that trains insurance agents to help employers reduce Workers’ Compensation expenses. He can be contacted at 828-274-0959 or kevin@workcompprofessionals.com. You can find more information and register for a free workers’ compensation newsletter at www.workcompprofessionals.com.

july/august 2010 MID-ATLANTIC BUILDER

Maryland’s New Hazardous Substance Reporting Law Don’t let the “New” in the title of this article fool you. Much like Civil War photography, Maryland’s Hazardous Substance Reporting requirement has been exceedingly slow to develop. Originally enacted more than two years ago, the reporting requirement is still not in effect because the Maryland Department of the Environment (MDE) must finalize the regulations for the new law before reporting can actually begin. The new hazardous substance reporting law requires that a “‘responsible person’ that possesses a sample result or other environmental assessment that indicates the release of a hazardous substance into the environment, at or above a threshold … shall report the finding immediately to the MDE” Md Code Ann., Envir. §7-222(d) (2009). In establishing the threshold levels for triggering the reporting requirement, Maryland law now dictates that MDE shall consider three distinct factors: “the quantity of a hazardous substance; the associated risk factors of a hazardous substance; and any other factor determined necessary by MDE”. So what does that mean in plain English? As we know all too well – the devil lies in the details. The reporting obligation is triggered by possession of a sample result showing a release of a hazardous substance. If you have a report but no sample, or if you have a release that has been contained, you do not have a reporting obligation. If a sample result shows a release, there are three circumstances under which reporting is required for a contamination: (1) a sample result exceeds cleanup standards; (2) a hazardous substance is found in certain conditions; or (3) unpermitted disposal of industrial waste has occurred on the site. Sample results can be from surface or subsurface soils, a water supply well, groundwater, or surface water. Additionally, a reporting can be triggered if “free-product” is found in groundwater, “reportable quantity” thresholds under federal law are exceeded, if waste material exists that would be considered hazardous if removed, or underground storage tanks are found containing more than trace residuals of a hazardous substance. There are a few exemptions from the reporting requirement, but they are limited. The proposed regulations do not include any “grandfathering” for sample results obtained prior to October 1, 2009. Therefore, a responsible person who possesses a soil sample from 1980 with results above the thresholds must disclose the sample to MDE (even if he no longer owns the property). The law places the burden on responsible persons who possess sample results. The term “responsible person” is a complicated legal term that has been the subject of much litigation. For most sites, this means the current owner or operator, or the owner or operator at the time of the release. What constitutes www.homebuilders.org

possession is a bit of a gray area as well. In most cases, possession is established when a responsible person has actual physical possession of a report showing a qualifying sample result. The issue becomes muddy, however, when a responsible person does not have physical possession of the result, but may have “constructive” possession. Take, for example, a prospective purchaser who instructs his attorney to hold all due diligence samplings, some of which would trigger reporting if possessed by a responsible person. Later, after becoming owner of the property (and thus a responsible person), does the owner have “possession” of the sample results? Although the owner technically does not have physical possession of the results, he nonetheless has the authority to direct his attorney to turn those results over to him and thus may be seen to have constructive possession of those results and that triggers the obligation to report.

The term “responsible person” is a complicated legal term that has been the subject of much litigation. To report a release, MDE provides a six page form that requires detailed and technical information on the property and will likely require the help of a consultant to complete. The proposed regulations do not specify how or when MDE shall respond to filed reports, but the form is available on MDE’s web site at www.mde.state.md.us/. The proposed regulations require responsible persons to file a report upon the earlier of: (1) 48 hours after discovery that the criteria requiring reporting have been met, or (2) October 1 if the sample result was obtained before that date. It is unclear how the delayed adoption of the regulations will affect the October 1st date. MDE’s publication of the proposed regulations last fall triggered significant concern and comment from the regulated community. Consequently, MDE opted to pull the regulations back for reconsideration. MDE has indicated that they will hold a stakeholder meeting later this spring or early summer to review the revised regulations, with final publication sometime this summer. The bottom line: it appears that the full picture for Maryland’s hazardous substance reporting requirement will finally come into focus later this year. The question is: what exactly will the picture look like? Stay tuned… n

july/august 2010 MID-ATLANTIC BUILDER

BRAC – It’s All About the Tail Wagging the Dog

(the contractor tail that is)

If you attended the recent Home Builders Association of Maryland “2010 BRAC Housing Conference” on May 21, 2010 at Martins West, you likely left impressed with broad depth and experience of the presenters, overwhelmed by the amount of information available and potentially a little frustrated by limited direct access to the thousands of potential buyers we keep hearing are coming to the market. The goal of this article and the updates to follow is to attempt to break down this information and give you a little guidance to get your piece of the BRAC market we keep hearing so much about.

What is BRAC? According to the Chesapeake Science & Security Corridor (CSSC) (www.MarylandReady.com) “BRAC is an acronym for Base Realignment and Closure. It is the process the DoD (Department of Defense) has previously used to reorganize its installation infrastructure to more efficiently and effectively support its forces, increase operational readiness and facilitate new ways of doing business. DoD anticipates that BRAC 2005 will build upon processes used in previous BRAC efforts.” That’s the military’s explanation; but simply put it’s a whole lot of job transfers and future job growth to the Baltimore/Washington area for whom we hope to build offices, houses and retail. The questions we keep hearing from our members is how many, how soon and how do I get to them?

What About the Jobs? The majority of jobs; direct government, military and embedded contractor jobs are expected to occur in Fort Meade (11,800 plus jobs), Aberdeen Proving Ground (8,800 jobs), Naval Medical Center (Walter Reed 2,400 jobs), Andrews Air force Base (3,000 jobs) and Fort Detrick (1,400 jobs). The majority of these positions are expected to be in place in the latter half of 2010 with a Congressional mandated date of September 2011. So where are the 60,000 jobs they keep telling us are coming? It is important to understand the jobs fall under a variety of definitions and timing critical to the core missions. According to the Office of Military Affairs at the Maryland Department of Business & Economic Development, the Direct jobs (about 15,300) are actual Department of Defense positions plus contractually obligated embedded. The Indirect jobs (about 8,000 which are non-embedded contractors) are defense contractors. Additional Indirect jobs (about 15,000) are jobs associated with the installation but not the core mission. Induced jobs (about 7,200) are community jobs associated with increased spending power and 28

MID-ATLANTIC BUILDER JULY/AUGUST 2010

population. In addition there are projections made from consultant reports that indicate contractor tail jobs that range from an additional 0.5: 1 to a 2:1 per direct job ratio multiplier. Kent Menser, Executive Director of the Howard County, Maryland Base realignment and Closure Office and Deputy Coordinator of the Fort Meade Regional Growth Management Committee, warned not to expect a tsunami of house hunters but more like a slow steady trickle and to expect the results to occur long past the September 2011 mandated deadline as contractors and service providers continue to relocate and expand. Executive Director Anna Custer of Live Baltimore Home Center (www.LiveBaltimore.com) is chasing potential new residents hard, bringing Berger Cookies, Brewers Art beer and Zeke’s Coffee to a relocation event in Fort Monmouth, New Jersey. What a great marketing idea!

How Do We Reach These Potential Customers? It’s not easy. Take some time to review the reports on the web sites we have recommended as well as the Economic Development Offices for Baltimore, Howard, Harford, Carroll and Anne Arundel Counties. There are some excellent projections as well as resources for community outreach. CSSC even has a daily email blast you can register for that provides valuable and timely information. Understand that these prospects look for homes the same way all our customers do; they search the web, browse real estate and relocation guides, work with Realtors and most importantly ask those that have already moved here about their experience. We will continue to track this important source of new business for you and watch for additional information on Maryland BRAC in the next edition of Mid-Atlantic Builder Magazine. ■ Brenda L. Desjardins, MIRM is a seasoned veteran in the residential building industry with more than three decades of experience in new homes. She leads New Home Marketing Service and New Home Development Strategies based in Annapolis, MD with a satellite office in Sussex County, DE. Recently she has become obsessed with understanding how to reach that BRAC new home buyer. She can be reached at 410-990-1050 or bldesjardins@comcast.net

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green building GETTING TO GREEN—THE NATIONAL GREEN BUILDING STANDARD

A Quick Start to Bronze (or even Silver!) By H. Alan Mooney, P.E.

There is no one answer and, certainly, no right answer to any performance rating. Getting there is a combination of your good construction standards and an understanding of how your decisions affect efficiency and sustainability.

s you know, your association, the Home Builders Association of Maryland, has developed the Maryland Residential Green Building Council (MRGBC) to highlight the commitment of individual HBAM builder members to Green Building and the National Green Building Standard (NGBS). In my recent articles I have been discussing what is needed to become a member of the MRGBC, establish yourself as a Green Builder and get your first NGBS rated home. In addition, in cooperation with HBAM we have developed two seminars on Green Building; Green Building 101 and Green Building 201. These were presented in January 2010 and again in May 2010. Here is a summary of that program: The Maryland Green Building Council is teaching the National Green Building Standard (NGBS) in a 2-Day education course. The first day, Green Building 101, is your basic introduction to the NGBS and other residential certification programs. You will learn about each of the chapters in the NGBS and what it takes to achieve the different certification levels. We will also review two real homes in Maryland certified by the NGBS and show the different aspects of the house that were used to reach the certification. Green Building 201, goes into greater depth of each Chapter in the NGBS and uses the online green home scoring tool to review two sample houses, one certified Bronze and one certified Gold. We spend time discussing each chapter in the standard and use both houses as examples so you can return with the knowledge and experience to plan your next green home, development or renovation.” After the January session of this course, as we spent time working our way through the NGBS scoring tool on the NAHB website, we decided to create a file for HBAM in the scoring tool and create three “quick start” projects to give you an example of how to get to your first NGBS certified project.

MID-ATLANTIC BUILDER july/august 2010

As I have said before in this series of articles, the homes you are building now will probably get you very close to a Bronze rating. As you look at the Quick Start examples we have created, I think you will see that. The basis of many of the decisions we made is from our January seminars where the participants told us about what they are doing now. To get to the following “quick start” examples: • Go to www.nahbgreen.org. • Click ‘Score My Project.’ • The User ID is “mrgbc,” and the password is “maryland” • Click ‘Go to National Green Building Standard Scoring.’ There, you will see three projects with a link to the Project Scoring Analysis for each one. The examples and results are as follows. Project: MRGBC Bronze Criteria: This project was populated with input from HBAM. The result is a cumulative representation of construction practices already being used. The emphasis was on:

• Deliberate Site work • Design Considerations • Efficient Material Usage • Energy Star Appliances • Water Efficiency Measures • Indoor Air Quality Scoring results: See Figure 1. Project: MRGBC Bronze Plus Criteria: With a specific building project in

mind, this represents a project on a city infill lot. The homeowner is savvy and knowledgeable in green construction practices, but practical in approach and expense. Named Bronze Plus for the strong bronze rating and 5 point shortfall to claim a Silver score. The emphasis included:

• Minimal Lot Impact • Design Considerations • Efficient Material Usage • Energy Star Appliances www.homebuilders.org

Chapter 5: lot Design, Preparation and Development

Chapter 6: Resource efﬁ ciency

Chapter 7: energy efﬁ ciency

Chapter 8: Water efﬁ ciency

Chapter 9: Indoor environmental Quality Chapter 10: operation, Maintenance and Building owner education

Mandatory Status

Point Shortfall

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MRGBC SIlVeR Mandatory Status

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MRGBC BRonZe PlUS Mandatory Status

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Figure 1. scoring results for quick start samples

• Water Efficiency Measures • Indoor Air Quality • Recycled/Reclaimed Materials • Limited Third Party Inspections • Prefinished Materials • Trussed ﬂoor and roof framing Scoring results: See Figure 1. Project: MRGBC Silver Criteria: Using the Bronze Plus model as a base,

this project added more complex features through a more intense prescriptive path to achieve a Silver score. emphasis was on the following:

• Minimal Lot Impact • Design Considerations • Efficient Material Usage • Energy Star Appliances • Water Efficiency Measures • Indoor Air Quality • Recycled/Reclaimed Materials • Limited Third Party Inspections • Prefinished Materials • Trussed Floor and Roof Framing • Site work considerations • Efficiency Measures for HVAC • Higher Thermal Insulation A Gold score can also be achieved through a prescriptive path. Select the performance path to achieve an Emerald score. Scoring results: See Figure 1.

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As I believe you will see from these examples, achieving a Bronze performance rating is not difficult. You may be doing that now! Also, Silver is possible with just a bit more focus on some specific areas. These are a few “quick start” suggestions. As you spend time with the scoring tool, you will discover that there are hundreds of ways of achieving bronze, silver and even gold ratings. Only when you pursue emerald are your options much more limited. There is no one answer and, certainly, no right answer to any performance rating. Getting there is a combination of your good construction standards and an understanding of how your decisions affect efficiency and sustainability. I hope these “quick start” examples help you achieve your first NGBS rated home! ■ Criterium Engineers has specialized in residential construction for more than 50 years, with more than 60 offices in more than 30 states. We have evaluated more than 750,000 buildings. H. alan Mooney, P.E, President of Criterium Engineers, is a licensed, Professional Engineer in 8 states, with more than 35 years experience and has been the author and presenter for various NaHB programs, mostly on construction quality. For more information, please visit www.criteriumengineers.com and www.criterium-quality.com. july/august 2010 MID-ATLANTIC BUILDER

HBAM Welcomes New Members Associates

Aerosol Monitoring & Analysis Todd Woerner 1331 Ashton Road Hanover, MD 21076 Phone: 410-684-3327 www.amatraining.com Professional Services - Environmental Services American Paving Fabrics Kevin McGrath 6910 Oâ&#x20AC;&#x2122;Conner Road Hanover, MD 21076 Phone: 410-379-2209 www.americanpavingfabrics.com Subcontractor - Paving Sponsor: Jay Hergenroeder, Gray & Son, Inc. Anchor Title Company, LLC M. Charlotte Powel 10715 Charter Drive Suite 100 Columbia, MD 21044-2871 Phone: 410-730-4545 Professional Services - Titles & Settlement Sponsor: Steve Breeden, Security Development Group Annapolis Lighting Kevin Newton 71 Forest Plaza Annapolis, MD 21401 Phone: 410-224-2565 www.annapolislighting.com Supplier - Lighting & Fixtures Sponsor: Jerry Foster, Emerald Homes, Inc. Atlantic Forest Products Chris McCarthy 240 West Dickman Street Baltimore, MD 21230 Phone: 410-752-8092 www.atlanticforest.com Supplier - Lumber & Millwork AVG, LLC George Rathlev 164 Conduit Street Annapolis, MD 21401 Phone: 410-507-3223 Sponsor: Eliot Powell, Whitehall Development, LLC Professional Services - Consulting & Customer Svc.

Builders FirstSource Greg Schumacher 3302 Ballenger Creek Pike Frederick, MD 21703 Phone: 301-874-2442 www.buildersfirstsource.com Supplier - Trusses

Creative Vinyl Products Bob Lehman 11101 Pulaski Highway White Marsh, MD 21162 Phone: 410-335-4095 www.creativevinylproducts.net Supplier - Stairs & Railings

Capital Mortgage Finance Corp. Mark Miller 22 W Padonia Road Ste C336 Lutherville, MD 21093 Phone: 410-560-2900 Professional Services - Banking & Mortgage Sponsor: Cynthia McAuliffe, Grayson Homes, LLC

Cummins Power Systems LLC Frank Assaro 1907 Park 100 Drive Glen Burnie, MD 21061 Phone: 410-590-8700 Supplier - Generators

Caron Industries Claude Caron 45 4e Rue C.P. 100 Montmagny, QC G5V 3V3 CANADA Phone: 418-248-0255 www.caronindustries.com Supplier - Cabinets & Countertops CB Flooring, LLC Gayle Seker 9515 Gerwig Lane - Suite 130 Columbia, MD 21046 Phone: 410-381-5400 www.cbflooring.com Subcontractor - Flooring Sponsor: Patrick Costello, Forty West Builders, Inc. Century Engineering, Inc. R. Troy Slevin 10710 Gilroy Road Hunt Valley, MD 21031 Phone: 443-589-2400 www.centuryeng.com Professional Services - Engineering & Technical Sponsor: Carmen Gilmore, Grayson Homes, LLC Classy Cozy Creations Diana VanStone 11619 Princess Lane Ellicott City, MD 21042 Phone: 410-531-9364 www.classycozycreations.com Supplier - Closets & Shelving Sponsor: Leslie Rosenthal, Bob Lucido Team LLC Remax Advantage Realty

Boise Cascade Jeremy Snyder 7700 Rolling Mill Road, Suite 6 Baltimore, MD 21212 Phone: 410-288-8400 www.bc.com Supplier - Lumber & Millwork

MID-ATLANTIC BUILDER july/august 2010

Ernest Maier, Inc. Colin Lennon 4700 Annapolis Rd. Bladensburg, MD 20710 Phone: 301-927-8300 www.emcblock.com Supplier - Masonry & Concrete Galey Kotsher Real Estate Paul Kotsher 904 Wind River Lane Gaithersburg, MD 20878 Phone: 301-556-4102 Professional Services - Real Estate Global Hybrid Roofing Solutions/ Innovative Building Solutions Steven Carroll 1111 Butterworth Ct Stevensville, MD 21666 Phone: 410-643-6161 www.buildingsolution.net Supplier - Roofing & Gutters Gutter Helmet Systems Julie Sullivan-Shetter 1121 Benfield Blvd Suite S Millersville, MD 21108 Phone: 410-987-8573 www.gutterhelmetsystems.com Supplier - Roofing & Gutters James Hardie David Larson 26300 La Alameda Mission Viejo, CA 92691 Phone: 410-231-8367 Supplier - Siding The Joyce Agency Inc. Ed McCaughey 8442 Alban Road Springfield, VA 22150 Phone: 703-866-3111 www.thejoyceagency.com Supplier - Plumbing Products & Fixtures Sponsor: William Zahler, Zahler Construction & Development LLC

LaFarge Kelly Ewing 300 East Joppa Road Suite 200 Towson, MD 21286 Phone: 410-847-3300 Supplier - Masonry & Concrete Sponsor: Jay Hergenroeder, Gray & Son, Inc. MAF & Associates, LLC Matthew Forgen 526 Hoods Mill Road Woodbine, MD 21797 Phone: 443-864-8589 Professional Services Engineering & Technical Sponsor: Matthew Wineman, Rosenberg, Martin, Greenberg, LLP Mailbox Man of MD, Inc. Ken DuLaney P.O. Box 465 Westminster, MD 21158 Phone: 410-635-6963 www.mailboxmanofmd.com Supplier - Mailboxes & Outside Identifying Signs Sponsor: Steve James, James Keelty & Company, Inc. MartinoBlum Michael Blum 2101 Belair Road, Suite D Fallston, MD 21047 Phone: 410-893-1700 www.martinoblum.com Professional Services - Photography Sponsor: Donald Lynch Jr., CGR, CAPS, Lynch Construction, Inc. Maryland Newsletters Jim Troy PO Box 1358 Olney, MD 20830 Phone: 301-924-1994 www.marylandnewsletters.com Professional Services Publishing & Printing Sponsor: Russell Dickens, Elm Street Development, Inc. Maxalea, Inc. Michael McWilliams 900 Oak Hill Road Baltimore, MD 21239 Phone: 410-377-7500 www.maxalea.com Subcontractor - Landscaping & Lawn Care

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Millennium Marketing Solutions Janice Tippett 10900 Pump House Road Annapolis Junction, MD 20701 Phone: 301-725-8000 www.mm4solutions.com Professional Services Advertising & Marketing Sponsor: Ryan Houck, Forty West Builders, Inc.

Rutter Project Management Jeremy Rutter P.O. Box 126 Lisbon, MD 21765 Phone: 410-982-2882 www.rutterpm.com Professional Services Consulting & Customer Svc. Sponsor: Robert Goodier, Goodier Builders, Inc.

Morgan E. Russell Inc. Casey Stonestreet 100 Prospect Drive Huntingtown, MD 20639 Phone: 410-257-2940 www.morganerussell.com Subcontractor - Excavating, Grading & Utilities

Shannon Comer Architects, Inc. Shannon Comer 10404 Stevenson Road Stevenson, MD 21153 Phone: 410-484-7010 Professional Services Architecture & Drafting Sponsor: Thomas Carski, Shelter Builders Communities, Inc.

Precision Drywall Services LLC. James Bruggeworth 4121 Plank Road, Suite 151 Fredericksburg, VA 22407 Phone: 540-710-9109 Subcontractor - Insulation & Drywall Sponsor: William Zahler, Zahler Construction & Development LLC ProCoat Applications, Inc. Nancy Vaughn 315 Brick Church Road Davidsonville, MD 21035 Phone: 410-798-9060 Subcontractor - Insulation & Drywall Quality Stone Veneer, Inc. Falan Ditzler 50 Refton Road Refton, PA 17568 Phone: 717-806-2201 www.qualitystoneveneer.com Supplier - Stone, Marble & Granite REDC Builder Division John Hanenfeld 1310 Bridgeville Highway Seaford, DE 19973 Phone: 302-745-9669 Professional Services - Real Estate Sponsor: Patricia Scherer, Pat Scherer & Associates Regional Siding Systems LLC Matt Brown PO Box 21512 Baltimore, MD 21282 Phone: 410-415-6835 www.regionalsidingsystems.com Subcontractor - Siding Sponsor: Patrick Costello, Forty West Builders, Inc.

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T & A Contractors, Inc. John Sekely 4512 Sandy Spring Rd Burtonsville, MD 20866 Phone: 301-924-2111 www.sundecksbytanda.com Remodeler Timberlake Cabinetry LuAnn Boyd 430 Jack Enders Blvd. Berryville, VA 22611 Phone: 540-974-6233 www.timberlake.com Supplier - Cabinets & Countertops Sponsor: Joe Gregory, Bob Ward Companies Velux America Inc. Michael Schwartz PO Box 5001 Greenwood, SC 29648 Phone: 864-941-5360 www.veluxusa.com Supplier - Sunrooms/Greenhouse, Skylights & Screens The Washington Savings Bank Jeff Donohue 4201 Mitchellville Road Bowie, MD 20716 Phone: 240-544-2038 Professional Services Banking & Mortgage Sponsor: Eric DeVito, Ribera Development, LLC Winegrad, Hess, Friedman & Levitt, LLC Rachel Hess 400 Redland Court, Suite 212 Owings Mills, MD 21117 Phone: 410-581-0600 Professional Services - Legal

Zurowski - W. Neil Neil Zurowski 11 Colonial Oaks Court Phoenix, MD 21131 Phone: 410-790-9914 Professional Services - Banking & Mortgage Sponsor: Russell Dickens, Elm Street Development, Inc.

Tim Bishop Timothy Bishop 4800 Wards Chapel Road Owings Mills, MD 21119 Phone: 410-922-1770 Developer Sponsor: Steve Rubin, Harkins Builders, Inc.

Builders

Craftmark Homes/Craftstar Homes Court Treuth 6820 Elm Street, Suite 200 McLean, VA 22101 Phone: 703-734-9855 www.CraftmarkHomes.com Builder; Builder - Production Sponsor: Russell Dickens, Elm Street Development, Inc.

Zahler Construction & Development LLC William Zahler 2405 Ken Oak Road Baltimore, MD 21209 Phone: 443-845-3810 www.zahlerconstruction.com Builder; Builder - Custom Sponsor: William Zahler, Zahler Construction & Development LLC

Remodelers

Dan Ryan Builders Rod Hart 60 Thomas Johnson Drive Frederick, MD 21702 Phone: 240-420-6061 www.danryanbuilders.com Builder; Builder - Production Sponsor: Robert Goodier, Goodier Builders, Inc.

Catonsville Contractors, Inc. Gary Henry 2302 Frederick Road Catonsville, MD 21228 Phone: 410-788-1222 www.catonsvillecontractors.com Remodeler Thompson Creek Window Company Rick Wuest 1775 Brightseat Road Landover, MD 20785 Phone: 301-560-1407 www.thompsoncreek.com Remodeler

J.L. Edmunds Builder Jim Edmunds 4507 Meadowcliif Road Glen Arm, MD 21057 Phone: 410-817-6800 www.jledmunds.com Builder; Builder - Custom Sponsor: Robert Meyer, R & R Components, Inc. Maryland Building System, LLC Bob Alexander PO Box 9684 Baldwin, MD 21013 Phone: 410-592-9567 www.marylandbuildingsystem.com Builder; Builder - Custom McHenry Real Estate Services Michael McCann 1437 Benjamin Street Baltimore, MD 21230 Phone: 443-250-3656 www.themchenrycompanies.com Developer Sponsor: Rod Hart, Dan Ryan Builders T + M Builders, Inc. Alicia Schwartzbeck 4606 Iris Court Monrovia, MD 21770 Phone: 301-831-9155 www.tandmbuilders.net Builder; Builder - Custom

july/august 2010 MID-ATLANTIC BUILDER

governmentaffairs Washington Update As Washington prepares for the 2010 midterm congressional elections, NAHB is engaging Congress on numerous issues. Two of the most urgent concerns are the need to address the severe shortage of acquisition, development and construction (AD&C) financing for small building firms and the extension of key tax credits and housing programs. On June 17, the House passed legislation that would provide $30 billion in capital to community banks to expand small business lending. An NAHBsupported amendment approved just before the bill was passed would provide builders the same access as other small businesses to loans from a $30 billion program created by H.R. 5297, the Small Business Lending Fund Act of 2010. NAHB was deeply engaged throughout the legislative process to ensure that this crucial language was included in the bill, and NAHB Chairman Bob Jones issued a press statement applauding the efforts of Reps. Brad Miller (D-N.C.), Joe Baca (D-Calif.) and Majority Leader Steny Hoyer (D-Md.) in accomplishing this goal and calling for prompt Senate action on the bill. While this one measure will not end the construction lending crisis, it is an important step in NAHB’s legislative push to address the AD&C credit crunch. Going forward, the association will be urging the Senate to move quickly to adopt the bill. NAHB will also be working to build support in the House for stand-alone legislation (H.R. 5409) sponsored by Reps. Miller and Baca, along with Carolyn Maloney (D-N.Y.), that would create a $15 billion loan guarantee program for residential AD&C lending under the Treasury Department.

Because of the importance of this issue to the home building industry, NAHB has designated co-sponsorship of this bill as a top priority for the 111th Congress. Please contact your Representative and ask them to become a co-sponsor of H.R. 5409, the Residential Construction Lending Act. Meanwhile, NAHB continues to follow important “tax extenders” legislation in the Senate, as Senate leaders struggle to find 60 votes to pass this important measure. H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, contains numerous provisions supported by NAHB, including an “exchange” provision for the Low Income Housing Tax Credit program allowing state housing finance agencies to trade in a portion of their tax credit allocation for grant dollars to support local affordable housing. Other NAHB-supported provisions include extensions of the New Energy Efficient Home Tax Credit (45L Credit) and the National Flood Insurance Program and a three-month extension of the June 30 settlement deadline for the home buyer tax credit. While NAHB strongly supports the provisions described above, NAHB opposes the way it is paid for with a change to the taxation of carried interest. NAHB will continue to work with legislators to strengthen this bill.

2010 Maryland Gubernatorial Election Update — Be Relevant, Get Registered, VOTE! The 2010 Gubernatorial Primary is September 14, and the General Election is November 2. Now is the time to prepare yourself, your family and your coworkers to vote. Don’t wait until Labor Day.

Early Voting—For the first time ever, Maryland has early voting 6 days before Election Day. To find an early voting location near you, visit the Maryland State Board of Elections website at www.elections.state.md.us. For the primary election, early voting centers will be open starting Friday September 3, 2010 through Thursday, September 9, 2010, except for Sunday, September 5th when early voting centers are closed. For the general election, early voting centers will be open starting Friday October 22, 2010 through Thursday, October 28, 2010, except for Sunday, October 24th when early voting centers are closed. Early voting centers will be open from 10 am until 8 pm each day of early voting. Absentee Voting—If you know you are going to be away for the Primary or General election, you can vote by absentee ballot. To request an absentee ballot, visit the Maryland State Board of Elections website at www.elections.state.md.us. Your request for an absentee ballot application must be received (not just mailed) by the deadline: For the primary election, the deadline is Tuesday, September 7, 2010. For the general election, the deadline is Tuesday, October 26, 2010. n For more information, please contact: Michael Harrison - 410-265-7400, ext. 109 Howard, Baltimore and Carroll Counties michael@homebuilders.org Jeff Tosi - 410-265-7400, ext. 101 Anne Arundel, Harford and Cecil Counties and Baltimore City jeff@homebuilders.org

Verify your Voter Registration Status, Legislative District, and Polling Location—Make sure

you are registered to vote and everyone in your office is registered to vote. Also, make sure you know where your polling place is BEFORE Election Day. Visit www.mdelections.org to verify your voter registration status and check your polling location.

MID-ATLANTIC BUILDER july/august 2010

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LIVE GREEN • SAVE GREEN

November 6 & 7, 2010 In our second year, the Maryland Green Show, presented by the Home Builders Association of Maryland, brings motivated consumers together with cutting edge green technology, products, design and experts. The exhibition will feature a strong emphasis on consumer education with a seminar room featuring over twenty sessions, a demonstration stage, plus over 10,000 square feet of exhibits. Don’t miss your chance to exhibit in Maryland’s premiere green home and living show. Contact HBAM at 410-265-7400 or visit www.marylandgreenhome.org.

The Maryland Residential Green Building Council is the state’s first residential green building program to certify local builders, remodelers and developers using the ANSI certified National Green Residential Building Standard. As the premier provider of information and resources related to green buildings, the MRGBC serves as a central hub for consumers going “green”. The MRGBC educates decision makers on the latest green building principals, trends and technologies, advocates before local elected officials for increased incentives for green buildings, and promotes “green” products through extensive marketing, sales training and special events for consumers such as the Maryland Green Show, the state’s largest showcase of environmentallyfriendly builders and products. Join the council today by visiting www.GreenHomeBuilder.org.

stats&facts

Housing Intelligence Market Trends By Brooke Burns, Hanley Wood Market Intelligence bburns@hanleywood.com, 202-729-3678

Did April showers increase or decrease home sales and bringing May flowers?

It was not as rainy as we had hoped it would be in the literal sense as well as figuratively. However, we do see signs of recovery and activity is staying steady, slightly increasing and heading in the right direction!

Activity has increased in the residential home building industry. The tax credit was said to expire in April 2010, so some may look at these numbers with some skepticism, however there are additional elements to this story that point to the industryâ&#x20AC;&#x2122;s successful attempt to begin recovery. There were 259 reported new home closings for the month of April 2010. Looking back to April 2009 there were only a total of 200 new home closings. For existing homes there were 2,261 reported closings in April 2010 compared to only 2,227 in April 2009. The median new home price in April was $319,000 down almost $30,000 from 2009; while the median existing home price was $236,709 up almost $10,000 from 2009. However, looking more closely at the product type selling, the new home average square footage dropped by almost 500 sq ft indicating that this was most likely the cause in price decrease. While it appeared that prices decreased, the price per square footage increased $10.00 year over year. With these statistics it appears that increased sales, although lowered price points and smaller homes may be just what this market needs. The builders in the market place that have realized this and have successfully introduced these products are positioned right for todayâ&#x20AC;&#x2122;s buyers. Additional positive news: Lower mortgage rates and a slight decline in new home prices pushed new home affordability to a new record-high which will make it more competitive with existing homes in the future. The new home affordability ratio is now only a little more than four percentage points higher than the existing home affordability ratio. This is the smallest gap in affordability between the two since August 2008. It is also a positive sign that new home inventory also improved last month despite slower sales activity. The number of new homes for sale is now sitting at an all-time low which will help stabilize new home prices going forward. Figures are for the Baltimore/Towson, MD are for April 2009 and April 2010.

MID-ATLANTIC BUILDER july/august 2010

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Existing vs. New Home Sale Prices

By the Numbers

259

$226,100

Existing Home Sales Media Price (2009)

There were 259 reported new home closings for the month of April 2010.

2,261

For existing homes there were 2,261 reported closings in April 2010.

$348,011

New Home Sales Media Price (2009)

â&#x20AC;&#x201C; Price Per Square Foot Averages 200

+4%

$236,709

Existing Home Sales Media Price (2010)

$319,000

New Home Sales Media Price (2010)

Living Square Feet Averages

New Sale

New Sale 2500

150 2000

100

$10.00 The price per square footage increased $10.00 year over year.

3000

Existing

The new home affordability ratio is now only a little more than four percentage points higher than the existing home affordability ratio.

500 The new home average square footage dropped by almost 500 sq ft from 2009 to 2010.

Existing

1500

1000 50 500

0 2009

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2010

2009

2010

july/august 2010 MID-ATLANTIC BUILDER

featuredrecipe Chef Night Winning Recipe from Goodier Builders, Inc

Margaritas 1 1 1 1 3/4 1/4

cup fresh squeezed grapefruit juice cup fresh squeezed orange juice cup fresh squeezed lime juice cup Sauza Commerativo Tequila cup Cointreau Chambord

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Take a look www.homebuilders.org

Redesigned to meet the needs of builders, remodelers, subcontractors, suppliers and home owners. Easy to navigate, both consumers and industry professionals can instantly gain access to membership lists, statistical information, government affairs updates, event calendars and more.

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You’ll be able to register for events online, update your membership information, pay dues and more.

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MID-ATLANTIC BUILDER JULY/AUGUST 2010

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energyefficiency Get ahead of the curve with the BGE’s ENERGY STAR® for New Homes Program The U.S. Environmental Protection Agency (EPA) has announced more rigorous guidelines for new homes to earn the ENERGY STAR label. These guidelines, which will make qualified new homes at least 20 percent more efficient than homes built to the 2009 IECC, will be required for homes permitted after January 1, 2011. They are referred to as ENERGY STAR for New Homes Version 3 and key elements include: A Complete Thermal Enclosure System:

Comprehensive air sealing, properly insulated assemblies and high-performance windows will enhance comfort, improve durability and reduce utility bills. Quality Installed Complete Heating and Cooling Systems: High-efficiency heating

and cooling systems engineered to deliver more comfort, moisture control and quiet

operation in additional to being equipped with fresh-air ventilation to improve air quality. A Complete Water Management System:

Because ENERGY STAR homes offer a tightly-sealed and insulated building envelope, a comprehensive package of flashing, moisture barriers and heavyduty membrane details is critical to help keep water from entering the house. Efficient Lighting and Appliances: ENERGY STAR qualified lighting, appliances and fans help to further reduce monthly utility bills and provide high-quality performance. Third-Party Verification: An independent Home Energy Rater is required to conduct a comprehensive series of detailed inspections and use specialized diagnostic equipment to test system performance.

As a part of the BGE Pilot Study on the Version 3 guidelines, three builders (Bob Ward Homes, Columbia Builders and Jenkins Builders) are already successfully building to these more stringent requirements. Their leadership has provided BGE with valuable information on real world requirements. This knowledge is being leveraged to provide all participants in the BGE ENERGY STAR for New Homes Program with strategic guidance and technical training. Program participants also benefit from financial incentives of up to $1,525 per home. n To learn more about the program please visit www.BGESmartEnergy.com.

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july/august 2010 MID-ATLANTIC BUILDER

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Light House Shelter Charity Fund Raiser a Resounding Success On Wednesday, June 9, the HBAM Anne Arundel Chapter put politics aside in an election year, to team up with the Maryland Community Builders Foundation to throw a wonderful event to benefit the Light House homeless shelter in Annapolis. Mike Baldwin, President and founder of Baldwin Homes, Inc., opened up the model home of his newest green community – The Preserve at Severn Run. The event took the place of the annual HBAM Anne Arundel Chapter PAC fund raiser in an effort to raise funds for the Light House to complete its new LEED certified facility in downtown Annapolis.

LEED certified projects blend environmental, economic and occupant-oriented performance. They cost less to operate and maintain; they maximize energy- and water-efficiency; and they are healthier and safer for all occupants.

MID-ATLANTIC BUILDER july/august 2010

The Light House Shelter’s new home – 10 Hudson Street, which is approximately 70% complete, is being constructed as a LEED certified facility. LEED certified projects blend environmental, economic and occupant-oriented performance. They cost less to operate and maintain; they maximize energy and water-efficiency; and they are healthier and safer for all occupants. To say that the new 24,000 sq. ft. facility will be a significant upgrade over the current 5,000 sq. ft. building dilutes the true meaning of this effort. The new facility will provide emergency shelter (beds) to people for up to 90 days; transitional housing for five families; a resource and support center that offers education, job training and life-skill services; and a chronically homeless day center that gives long-term homeless individuals basic human services during daylight hours. About eighty people attended the event. Many, many thanks to the Gold and Silver sponsors who generously contributed needed dollars to make this event such a success! Gold Sponsors: Baldwin Homes, Inc.; Bay Engineering Inc.; Bernie Schultz Reality; Linowes and Bloucher LLP; and Severn Savings Bank. Silver Sponsors: Childs Landscape Contractors, Inc.; Ferguson Bath and Kitchen Gallery; Hyatt & Weber, P.A.; Kitchen and Bath Creations; Superior Walls by Weaver Precast. n

An HBAM Sales and Marketing Council educational offering Certified New Homes Sales Professional (CSP)

Master the critical path to successful selling from greeting to closing. Gain a broad understanding of the home building business. Learn home construction, financial, and legal aspects of new home sales. Counts for a maximum of 10 elective credits towards the MIRM and CSP designations. Date: October 26, 27, 28, 2010 (3-day course required) Location: HBAM 7127 Ambassador Road, Suite 150, Baltimore, MD 21244 Time: 8:30 AM to 5:00 PM Cost: Members: $275.00 Non-Members: $325.00

Continental Breakfast & Lunch Included! n

Save the date! Sales Camp September 29, 2010 Hilton Pikesville Watch for details!

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Two Quality Components One Superior Product

Lifetime Warranty on Siding!

25 Year Warranty on Factory Coating!

SPECTRUM SIDING was designedd with ith th the goall offisuperior f performance, stunning aesthetics, and environmental consciousness. • • • • • • •

2 primer coats and 2 finish coats Unbeatable combination of warranties High durability with low maintenance Brilliant curb appeal Environmentally responsible 8 standard colors Ability to match any color preference

Arctic White

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july/august 2010 MID-ATLANTIC BUILDER

To build this collection, we went to the best suggestion box of all. Your job site.

The New Marvin Ultimate Casement Window Meet the Ultimate Casement Collection, a revolutionary new line that combines the craftsmanship and innovation you’ve come to expect from Marvin. Inspired by your suggestions, we developed larger sizes and matched them with the industry’s most innovative hardware for unrivaled performance. All that combined with easy installation and a wash mode that allows homeowners to clean their windows from inside makes this new collection truly ultimate. Visit marvincasement.com or call 1-888-553-9988 for a free Ultimate Casement Collection brochure.

MID-ATLANTIC BUILDER july/august 2010