Mthomeexperts spring2015 issuu

S P R I N G 2 015

MONTANA HOME

Experts A magazine for MBIA Members

carl glimm:

FIGHTING FOR HOUSING BuildPAC:

The Strength of an Industry industry news

+ Fiber’s Future + Innovative Products + Expert Advice + Association Standouts

PLUS National award recipients

Lawler+hughes

Montana Home Experts

1

registered contractor

2

spring 2015

MONTANA HOME

Experts

| SPRING 2015

“ It took a hearty soul to found and homestead this state and that meant being friends with your neighbors to make it happen. That sentiment holds true today. It’s not the last best place just because of the scenery, it’s the people.”

Carl Glimm, Glimm Homes

04 From the President Welcome from MBIA President Jim Zarling as we bring you the third issue of Montana Home Experts magazine.

07 Q&A: General Liability+Workers’ Comp+Bonds

Cara Piccono of Payne West Financial takes the mystery out of these topics that builders in the business world must face every day.

08 Carl Glimm

The owner of Glimm Homes is setting the standard as a builder, family man, and a legislator for the state of Montana.

12 Six Innovative Building Products

18 Structural Claims

14 Montana’s Strong, Well-funded PAC

20 Association Standouts

Check out the latest and greatest products that will make your home stunning, your life simpler, or both!

The reality of doing business today involves complying with new laws passed at the local, state and national level that can significantly impact the price of a new home.

16 Fiber: Future-proofing Your New Homes Nothing is capturing the consumer’s imagination more than fiber, driven by the need for speed.

Beth Kost, Risk Management Specialist, advises on one of a builder’s greatest liabilities, both financially and to one’s reputation.

Our members make us proud.

In this issue we highlight three: Direct Source MT, The Other Guy Wood Floors, and Marks Lumber.

22 National Award Recipients

Our very own Sean Lawler and Mike Hughes make us proud, receiving recognition and awards from the National Association of Homebuilders.

“We are always near the top of the country in fundraising [to BuildPAC].

Our ability to meet and exceed our fundraising goal is never questioned.” eugene graff, 2nd vice president of buildpac

Montana Home Experts

3

WELCOME |

a publication of

1717 11th Ave / Helena, Montana 406.442.4479 www.montanabia.com

on the cover

Carl Glimm, Glimm Homes

Photo by Tiffany Williams Photography

from the president

Welcome to the third issue.

I hope this finds you in high spirits as our economy has finally turned around and is moving forward. I am honored to serve as the President of the Montana Building Industry Association. I am well aware of the trust that has been placed in me to lead our Association forward. I take the job seriously and we are working to help our members meet and overcome the many challenges facing our industry.

All great organizations are built on the hard work, dedication, and the tireless efforts of many. I am very proud to have an executive team that is all of that and more. Together we are building on the accomplishments of my predecessor, with a continued focus on being able to provide you with the best resources, great service, networking capabilities, and professional development opportunities that will enhance your skills as a home building professional.

First of all, I want to recognize Mike Hughes, our past president, for his amazing accomplishments. He recently won the B.E.A.M award at the NAHB International Builder’s Show. The award is given to one builder nationwide for engaging Associate members.

Second of all, I want to congratulate Chip Pigman on receiving the 2014 Builder of the Year award. He is a true inspiration for the members of the building industry. I also would like to congratulate Byron Anderson on receiving the 2014 Associate of the Year award. All of his hard work and dedication to our industry is appreciated.

This session we faced many issues that impacted our industry and the cost of housing. Due to the continued efforts of our state Executive Director, Dustin Stewart, we fought to minimize these challenges to your business. It is truly impressive to see our state office defend the building industry. Each and every one of our state staff members plays a vital role in staying ahead of issues that impact your business.

In closing, a sincere thank you to those individuals who took some of their valuable time to make sure our association remains strong and viable.

Hope to see you all in June in Polson on beautiful Flathead Lake!

design by Thank you,

jim zarling, MBIA President

1131 Poplar St / Helena, Montana www.edgemarketingdesign.com

4

spring 2015

Through the efforts of the Montana Building Industry Association (MBIA) and the Montana State Fund, a select insurance group of MBIA members has been created. The GRIP program is available to all MBIA members and has saved participating members more than $5.5 million over the past twelve years!

FREE SAFETY TRAINING & CERTIFICATIONS Certify your employees for forklift, Powder Actuated Tools, scaffolding and First Aid/CPR. Free monthly 1-hour OSHA compliant safety meetings on a variety of useful topics.

Training is hands-on, very informative and is conducted in nine local association cities.

#1 Worker’s Compensation Program in the State of Montana

FREE ONSITE CONSULTATION TRAINING Site specific training needs and inspection of your work site for hazards and/or any potential OSHA violations.

FREE WRITTEN SAFETY & HEALTH PROGRAMS Written safety and health programs that can be tailored to fit your company.

Sean Lawler W: 406-442-4479 | C: 406-459-3955

Mike Rocchio W: 406-442-4479 | C: 406.459.1308 Montana Home Experts

5

As Montana as mudflaps.

Serving Montana communities for over 25 years Mann Mortgage has several convenient locations.

Contact your local branch today.

www.MannMortgage.com | Corporate NMLS# 2550 6

spring 2015

HElENA 457-5205 helena.mannmortgage.com

BOZEMAN 587-8600 bozeman.mannmortgage.com

WHitEFisH 862-3200 whitefish.mannmortgage.com

KAlispEll 751-6266 kalispell.mannmortgage.com

lEWistOWN 535-6570 lewistown.mannmortgage.com

GrEAt FAlls 452-4252 greatfalls.mannmortgage.com

pOlsON 883-1445 polson.mannmortgage.com

MissOulA 542-0700 missoula.mannmortgage.com

BiGFOrK 837-3930 bigfork.mannmortgage.com

Q&A cara piccono, cic

payne west financial Commercial Insurance Sales Executive

Contractors often don’t use a subcontract agreement with their subcontractors, but simply request a “certificate of insurance.” Make sure you are using and obtaining subcontract agreements with all of your subs. A subcontract agreement protects you and your company.

It is a requirement for additional insured status, and often is an underwriting consideration on your general liability insurance.

Certificates of insurance: A certificate of insurance does not change the terms of the insurance policy nor does it fully protect your company.

Only an additional insured or primary additional insured endorsement can make you an additional insured, extending your subs’ liability coverage to your company for work they performed. Most claims usually

EXPERT OPINION |

I was just awarded my company's largest project ever!

Are there any items I need to consider on my General Liability, Bonding, and Workers’ Compensation policies? –James, Helena

occur after the project has been completed, and the homeowner will look to you for remedies as the general contractor.

Primary additional insured is the recommended endorsement to request on the subs’ certificate.

Your subcontractors’ insurance carrier will represent you on a primary basis.

It’s important to remember that all additional insured and primary additional insured endorsements do require a written agreement. Therefore, you can have a certificate providing primary additional insured status, but you really don’t have that status because there was no written agreement.

Another important item to know is you can purchase a blanket primary additional insured endorsement. When you do this, you will not be charged each time you need a certificate for primary additional insured wording on a certificate.

Classifications for general liability and workers’ compensation: General liability and workers’ compensation premiums are based on employee payroll assigned to classifications of your business operations. Anytime you start a new business operation, or start a larger than normal

PIERCE & ASSOCIATES

Choice

BUILDERS, LLC

Award

project, you need to schedule an appointment with your insurance representative.

The project may include classifications you are presently not covered for, so it’s good to review classifications. If you’ve been awarded a large project, you can ask your insurance representative to increase your payroll exposure by classification with an endorsement.

(Remember some class code rates have a higher or lower premium so track employees’ work closely.) This will allow you to proactively pay for the additional premium while you are working on the project versus waiting for an audit and owing the insurance company a large sum.

Do your employees drive their personal vehicles for the business? If so, we should look at hired and nonowned auto coverage. If you don’t have a business auto policy, this coverage can be added to your general liability policy for a competitive premium.

Why do you need hired and non-owned auto coverage? If your employee is driving their personal vehicle for business and they are in an at-fault accident, the employee’s auto insurance is primary. If you are named in a claim, hired and

non-owned liability coverage will protect you.

It’s important to know this coverage provides only liability coverage. There is no coverage for the physical damage for your employee’s vehicle.

How do you get bonded and what is your bonding capacity? The certified public accountant (CPA) who issues the opinion on the customer’s financial statement is the core to the contractor bond capacity. Bond companies are underwriting the client’s CPA. Financial statements are the principal source of information in the underwriting process, and that information materially makes or breaks the bond credit.

Take the time to make sure you are receiving the best services from your CPA. Know and understand the business sector where you make your money.

Make sure they are the right fit for you and the bond credit you are trying to secure. When the client, CPA, and bond company are aligned, your profits increase.

Other items to watch for! Exclusions for, but not limited to, subsidence of land/earth movement, work of your sub-contractors, multi-family, condominiums, townhouses or tract homes.

• Project Management (from purchase of land, to design, to construction) • Construction Financing • Excavation Service and Site Development • Light Commercial Construction • Remodeling, Residential and Commercial • Named Montana’s Builder of the Year (2007) • Awarded Caterpillar, Inc’s National Safety Award (2009)

LUXURY CONDOMINIUMS AVAILABLE SOON AT AMBROSE COURT

Ask about Our Green Build Program!

Master Builders since 1975

1424 Dodge Ave. • Helena, MT 443-4637 • bill@pierce-builders.com

Master Builders of Quality Homes Since 1975 1424 Dodge Ave. Helena, MT

|

443-4637

|

www.pierce-builders.com

|

bill@pierce-builders.com Montana Home Experts

7

| MOVERS+SHAKERS

Fam I strive to ensure people enjoy their building experience.

Carl Glimm

8

spring 2015

By Alana Listoe Photographs by Tiffany Williams

carl glimm:

Builder. mily man.

Legislator.

Before sunrise on a warm February morning, Representative Carl Glimm sits at his desk in a windowless room in the basement of the Montana Capitol building. He hasn’t had breakfast yet, but he is already in his second meeting of the day. He has about thirty minutes to meet with Dustin Stewart, the Executive Director of the Montana Building Industry Association, to discuss testimony for one of Carl’s bills, which is up for a hearing this afternoon. It is a make-it-or-break-it hearing for homebuilders.

The bill, HB 519, will allow continued subdivision development on exempt wells. The bill is certainly important to Rep. Glimm too, but it will be just one of roughly a dozen items that he will juggle before the day ends. In a 90-day legislative process, all of the steps are “make or break.”

Before lunch, Glimm will spend three hours listening to department heads discuss details about the state budget. The afternoon will consist of two hours on the House Floor, in general session, debating the merits of roughly twenty different legislative proposals. Once the general session adjourns he usually returns to the House Appropriations Committee to hear the details of five or six more bills that require the state to spend money. However, that is a meeting he will not get to attend today. Instead he will join a horde of builders in the House Natural Resources Committee - builders that have traveled from all over the state to support his bill.

Glimm’s older sister has always said he was lucky for knowing from a young age what his future career would

be. Carl is a builder. He builds single-family custom homes one at a time for clients that he gets to know on a personal level.

It is hard to pinpoint exactly when Glimm decided that building homes was the life for him, but he recalls it was around the time he was in third grade when his family built an addition to their home. He remembers always wanting to lend a hand and get in the action.

“I was always bugging the guys that were working there,” he said. “They always threatened to hang me up on a nail by my belt loop.”

It wasn’t long after that Glimm joined the local 4-H Club, which helped him further explore his woodworking interest. In high school, Glimm worked at the Conrad Building Center, which allowed him purchase his first car. In 1997, he earned a Construction Engineering Technology degree from Montana State University and then temporarily left his home state to gain experience working with a commercial builder in Spokane, Washington.

He said those big projects gave him experience in

Montana Home Experts

9

working with a diverse group of people in a variety of municipalities, project scheduling and management, and an understanding of regulations and laws. He learned about a variety of soil types and how that impacts building specifications.

Glimm said while those handful of years gave him valuable and useful foundational knowledge, ultimately, he decided he had a heart for building three or four custom homes a year. He said building houses for individuals is more about the experience than about the bottom line: “I strive to ensure people enjoy their building experience,” Glimm said he loves the relationships he builds with customers and thrives on watching them make choices so they have a finger in the process and add personal touches.

Jay Harris hired Glimm Homes as the builder for his home in the Flathead that features a circular staircase that extends from the basement to the second floor. Glimm Homes was recommended to Harris as a trust-worthy builder in the area.

Harris was impressed with Glimm’s craftsmanship, willingness to make the home unique, and commitment to making it as affordable as possible while staying on budget.

“It was important to us not to have surprises,” Harris said. “We did spend money, but he was always very forthcoming.”

In addition to building trust with his clients, Glimm has been building trust at the Montana Capitol for the past three years, where he spends most of his winters and a few days each month for the rest of the year.

Elected out of House District 6 in 2012, the western side of Flathead County, Carl went right to work after he was sworn in. He was appointed to the powerful House Appropriations Committee, which is responsible for oversight on all of the money spent by the state of Montana.

Now in his second session, he is Chairman of the Joint Appropriations Subcommittee on Natural Resources and Transportation. In this role, Glimm gets to delve into the fine details of the budgets of the Department of Natural Resources and the Department of Environmental Quality.

Being responsible for the state budget is far from easy, but it is something he feels a calling to do. He says he’s always been

| MOVERS+SHAKERS

interested in politics and that his driving force is helping to shape the future of Montana for his two children: Matthew, 12, and Rylee, 8.

“I always think about what they are going to be left with and will they be able to do what I did growing up in Montana,” he said.

“Will they be able to stay here and get jobs? The way I see it, our most valuable export is our kids. How great would it be if we could continue to all live here?”

No one can say that Glimm isn’t doing everything within his means to leave Montana a better place for future generations.

Even though it means time away from his family and many long early morning and late night drives, he happily contributes time and resources to the legislature and many other community organizations.

He serves as a board member at his church and is a volunteer firefighter. He is a Past President of the Flathead Building Association and in June of 2015 he will be sworn in as the President of the Montana Building Industry Association.

In what little free time he has, he enthusiastically spends it hunting, camping, and skiing.

He loves Montana’s mountains and plains.“The country is beautiful and the history is so rich,” Glimm said. “It has so much to offer from one end to the other.”

Glimm said Montana is often referred to as the ‘Last Best Place,’ and it’s often assumed that is because of the landscape, he believes it’s also about the people.

“I don’t think there are too many places around like Montana where folks leave their cars unlocked and are willing to open their door to a stranger,” he said. “It took a hearty soul to found and homestead this state and that meant being friends with your neighbors to make it happen. That sentiment holds true today. It’s not the last best place just because of the scenery, it’s the people.”

On that day, Glimm’s focus and hard work paid off. Shortly after the marathon hearing on HB 519, the Committee voted 11 – 7 to pass the bill on to the full House of Representatives for further consideration. The vote might be just one small step in the process, but with each of these small steps, Glimm is successfully making Montana a better place.

Experience You Can BUILD ON

Commercial & Residential Land Purchase Construction Loans Lines of Credit Equipment & Building Loans

© 2014 Stockman Bank

10

spring 2015

| Member FDIC

WWW.STOCKMANBANK.COM

Custom Timber Framing | Marks Lumber Circle Sawn Flooring Timbers Rough Lumber Planed Lumber Log Products Mantels and Bartops Elkhorn Landscape Products

Money Saving Tips On Tax Credits and Depreciation Deductions

Tongue and Groove Products Treated Products Decking Custom Sawing Stocking Dealer

• Colored, Natural and Cedar Mulches • Bark Nuggets: Small, Medium and Large • Soil Amendments, Composts

• Perma Chink Wood & Log Finishes • Bona Floor Finishes • Leatherneck Flat Track Hardware Tax, Financial Advisory, and Consulting Services

Wood and Log Sidings— Over 40 Styles

442.1040  azworld.com Billings ■ Bozeman ■ Butte ■ Great Falls ■ Havre ■ Helena ■ Missoula

30 Lump Gulch Rd, Clancy | (406) 933-5794 www.markslumber.us | Delivery Available

City Motor CoMpany is a proud supporter of the

Montana Building industry assoCiation! ,

-

% 2

2 3

% 1 ) 6

'

6

8

CheVy silVerado 1500

MBIA MeMBers Are elIgIBle for An AddItIonAl $500/$1000 reBAte!*

mYlinK

lasting comfort

smart comfort

4g ltE Wi-fi

SERVING CENTRAL MONTANA’S AUTOMOTIVE NEEDS FOR OVER 60 YEARS 3900 10TH AVENUE SOUTH • GREAT FALLS, MT • 406-761-4900 • 800-761-4998 | www.CityMotor.com *Private offer amount varies by model. $500 offer for retail deliveries and up to $1,000 offer for fleet deliveries. Not compatible with other private offers. Not valid on prior purchases. Compatible with many current incentives. Incentives are subject to change without notice. FAN number required. See dealer for complete details. Available through 1/2/15.

Montana Home Experts

11

| TRENDING

Innovative building products

Check out the latest and greatest products that will make your home stunning, your life simpler, or both!

1

no

KITCHEN Bosch Benchmark Series Built-in Wall Oven Sometimes new thinking is horizontal. Whatever your kitchen design, Bosch wall ovens offer optimum design flexibility. Bosch wall ovens balance form and function. They integrate seamlessly into your kitchen, installing flush for a sleek European look or proud for a more traditional look.

2

no

SHOWER Redi Trench by Tile Redi Redi Trench award-winning shower bases are the bath industry’s most exciting marriage of design and function! Nowhere else will you find a one-piece, tileable shower pan with an integrated linear trench drain and choice of either tileable linear grate or designer linear grate tops.

12

spring 2015

INSIDE Haiku 52 with SenseME by Smart Ass Fans Haiku with SenseME technology monitors temperature and adjusts fan speed to keep you comfortable automatically. Featuring a built-in motion sensor and a variety of control modes, Haiku with SenseME also works with the Nest Learning Thermostat to help you save up to 30 percent on home air conditioning costs.

3

no

4

no

OUTSIDE The Aquor House Hydrant Forget the hassles of ordinary taps – Aquor makes access to your water as simple as it should be. Connect garden hoses in seconds with a simple twist, even under full water pressure.

Never worry about leaks or freezes again.

5

6

no

no

SnapRays Guidelight

by SnapPower

One•Touch Electric Stairway

by Marwin

The SnapRays Guidelight is a plug-and-play replacement for the standard plug-in night lights and hardwired guide lights found on the market today. It installs within seconds and requires no wires or batteries.

SnapRays is designed to look like a standard outlet cover by day and has three LED lights that provide ambient lighting at night.

At last, a 21st century technology designed for a more efficient home storage solution and improved home value. One•Touch is a fully electronically controlled electric attic stairway. At the press of a button, its advanced circuit board allows the electronic unlatching of the panel, then allows the controlled extension of the multiple stair sections safely and securely to the floor.

13

| THE POLITICAL SIDE

strong, well-funded PAC gives montana builders a voice in politics

By Alana Listoe

The reality of doing business today involves complying with new laws passed at the local, state and national level that can significantly impact the price of a new home. Though most builders despise politics, their livelihood often places them squarely in the political crosshairs, leaving little choice but to be heavily involved in campaigns and elections.

Fortunately, this is something that Montana builders do well, perhaps better than their counterparts in any other state in the nation.

Over the past two years, Montana builders have raised over $75,000 for NAHB’s BuildPAC and MBIA’s Montanans For Affordable Housing.

But the truth is that it takes more than two years of strong fundraising to have your voice heard in politics today. It takes years of building relationships with candidates and elected officials at all levels of government.

This is something that Montana BuildPac Chairman John Harding excels at doing.

Harding has been MBIA’s Political Action Chairman since 2003. Under his leadership Montana has become a national leader in raising money and

14

spring 2015

defending builders from new anti-building laws.

In the recent two-year election cycle, Montana outraised states such as California, Oregon and New York. Though Montana builders make up less than one percent of NAHB’s Membership, the state ranks third in total dollars raised.

Harding describes BuildPAC as a grassroots effort and one that is more about getting to know the candidates than it is raising money. Perhaps because he prioritizes relationships and spending time with elected officials, he has become an expert at raising money.

Harding spent the first five years of his life in Phillipsburg, Montana, before moving to Great Falls where he’s resided ever since. He started S & H Aluminum Products 30 years ago furnishing and installing all types of metal wall panels and roofing, often called ‘architectural metal’ in the industry. They contract with clients across the state.

More than half of those years since S & H opened, Harding has been involved with MBIA. One of his first roles with the association was to serve as the BuildPAC Trustee, which he still

does with the same energy he started with.

“It’s a hard job but I enjoy doing it,” Harding said.

Harding’s leadership in BuildPac has also opened doors for a new generation of involvement. Bozeman builder Eugene Graf has been selected as the 2nd Vice President of BuildPac, and will oversee fundraising nationwide in 2017.

He says Harding is an excellent champion for BuildPAC. “We are always near the top of the country in fundraising (to BuildPAC). Our ability to meet and exceed our fundraising goal is never questioned,” said Graf while crediting Harding’s work.

Harding is quick to point out that’s only possible through the support of Montana’s many contributors.

“People have to open their pocketbooks,” he said. “It wouldn’t happen without them, and they deserve more credit than I do.”

Those contributions help ensure pro-building candidates have a fighting chance at the ballot box. A fact that has become abundantly clear in recent years as Montana has been in the national spotlight for close elections that go a long way towards determining political control of the country.

For generations, participating in PAC efforts has been important to the Graf family and he holds the utmost respect for someone as dedicated to the

cause as Harding.

“It’s why we have jobs and I believe if you aren’t doing something for your industry, you can’t complain,” the fourthgeneration Montana builder said.“I grew up knowing that getting involved and paying attention at that level will only help my business.”

He said political action committees find candidates from both political affiliations who back housing: “It takes member relationships with elected officials to get laws passed that are helpful to our industry.”

Graf said that Montanans have better access to elected officials than most other states and those relationships run deep.“We are a really good example of how other states should be,” he said.

Harding has been the consistent and steady advocate as the BuildPAC Trustee. It’s his commitment and hard work that makes it palatable for Montana builders to contribute.

That money, he said, ensures builders are taken seriously, regardless of which party is in control. There is nothing more rewarding than helping families achieve the American dream, and it’s largely because of the PAC that builders get to share their stories. Harding believes it's ‘tried and true American dollars at work’ and puts his own twist on a well-known American saying.“It's baseball, hotdogs, apple pie and housing,” he concluded.

“It’s baseball, hotdogs, apple pie and housing.” john harding / montana buildpac chairman

Garage Doors • Central Vacuums • Retractable Awnings

Distinctive Doors for Your Distinctive Home Showroom: 1313 Birch, Helena / 443.3131 / www.doorsystemsofmt.com

Calling 811 is the law Planning on doing any excavation or demolition? NorthWestern Energy reminds you to call 811 two days before starting your next construction project. Making the free,

NW ENERGY

easy call to your job site can prevent injury, service outages, and possible damage to underground utility lines and property. Visit NorthWesternEnergy.com for more information.

Before you dig, know what’s below.

NorthWesternEnergy.com Montana Home Experts

15

| TECHNOLOGY

Fiber: Future-proofing your new Homes by kimberly hessell / centurylink kimberlyhassell@centurylink.com Contact for more information on fiber or inside wiring

In order to get a sense of what consumers want, all you need to do is take a look at the headlines.

Nothing is capturing the consumer’s imagination more than fiber, driven by the need for speed.

The message is hard to ignore, from the FCC wanting it in all 50 states by 2015 to a recent Forbes article titled “Faster, Sooner: Why the U.S. needs ‘Gigabit Communities.’ ”

16

spring 2015

FTTP (Ethernet) Wiring Standards Diagram Customer Premises Unit + 1” PVC conduit (NO 90° BENDS) + No Smurf + Pull wire required + Provided and installed by Builder from ONT location to UPS location for ONT power cable (e)

+ CAT5E Data + CAT5E Voice + Coax Cable Videos + Provided and installed by Builder + Connected on the ONT side (f) (g) (h)

C

ONT (FTTP NID) + Minimum Point of Entry (MPOE) + Provided and installed by CenturyLink + To be located within 20 feet of AC power MGN (a)

20” max Environmentally-controlled indoor area + Closet, pantry, etc.

45’ max

A

Power company ground rod or MGN wire

D 5’

12" below finished grade

Non-GFCI 110-volt outlet + Provided and installed by Builder (d) (j)

MGN bond

ty

per

Pro

e Lin

+ Provided and installed by CenturyLink (a) + The ONT shall be grounded to an MGN with an AWG #6 bare solid copper wire for distances up to and including 20 feet using the appropriate bond connector. + For distances beyond 20 feet, drive an 8 foot 5/8 inch diameter rod.

Ground the protector/terminal to the rod using AWG #6 bare solid copper wire and bond the rod to the MGN also using AWG #6 bare solid copper wire.

Righ

t of W ay

The Internet of Things. You may have heard the term, but did you know that there are now more connected devices than people on earth? Or, that by 2020 you’ll own 50 internet connected devices? Most with apps. We rely on these ‘smart’ devices every single day, and our reliance is growing. Almost every device you purchase today can be connected.

These devices are mobile phones, tablets, TVs, security systems, thermostats, fridges, lighting, and now we’re even wearing them— watches, exercise and biometrics, medical bracelets, etc.

You may be asking why is this important for my development. Why now? As it turns out, that’s the perfect question to ask and very timely. Today, Internet bandwidth is doubling every two years, with the Internet of Things driving sustained and exponential bandwidth growth well into the foreseeable future. If other local developers are deploying cable and providing a 50Mbps broadband service to their customers, you could offer the same service and be competitive in the marketplace. However, if you offered a broadband network capable of delivering 100Mbps service, you would be in

Smart Panel + Provided, installed and connected to by Builder + Provides distribution to interior rooms (f) AC Power Meter

B

Fiber drop cable provided and installed to ONT by CenturyLink Conduit Placed by Developer/Builder

Centu Facil ryLink ities

Uninterruptible Power Supply (UPS) + Provided and installed by CenturyLink + Must be located within 100 wire feet of ONT for Single and Multi-Family Units (c) (j)

a market position where you could leverage that bandwidth as a broadband advantage.

With fiber, you have the opportunity to take a market leadership position and deliver a far superior broadband offering to your customers. With the ability to deliver a 100Mbps service today and 1G in the near future, fiber allows you to take a clear market leadership position today. A very desirable position to be in—one that most of your competitors are not offering today, so you can not only leverage this competitive advantage, you can monetize it.

Today, consumers are willing to pay a premium for speed and convenience, which leads to increased customer satisfaction.

When you compare fiber to other broadband offerings, fiber enjoys a nearly 20 percent advantage across the board, from service uptime to download speeds and, in the case of video, streaming quality.

Customers associate this convenience and satisfaction with value, which leads to a willingness to pay more for a fiber-powered home broadband connection and will lead to longer renter occupancy and shorter time on the market between occupancy.

Based on a study performed by RVA LLC, this value translates into: > A monetary increase of 2.1% on home sales. > A consumer expectation of a discount on the selling price if your competition has fiber and you don’t.

In order for your fiber-fed home to be able to get 100Mbps or 1Gbps speeds, it must have the correct inside wiring, which is Home Run wiring with two cat5e cables and RG6. Above is a diagram of the wiring.

What you can gain as an advantage today, you’ll be providing tomorrow as a baseline requirements with no premium over the competition. However, if you find yourself in a situation where five years from now you didn’t deploy fiber, consumers might expect a $10k— $15k ‘discount’ for the same house that today will gain you a premium sale. So, no matter how you view it, deploying fiber and providing the correct inside wiring today ensures: > You are future proofing your new homes and buildings. > A good and profitable ROI.

NOTICES: Local CenturyLink engineering requirement supersede illustrated design detailed. For specific installation requirements and application details check with the Local CenturyLink engineering team.

May 2014 | CenturyLink CORPORATION RESTRICTED PROPRIETARY INFORMATION The information contained herein is for use by authorized employees of the Parties hereto only and is not for general distribution within or outside their respective companies.

Montana Home Experts

17

| EXPERT ADVICE

Structural claims: smile you know

what to expect when the unexpected happens.

When you’ve got 10 years of structural warranty protection standing behind you, confidence takes precedence.

one of a builder’s greatest liabilities, financially and to a hard-earned reputation by beth kost / 2-10 Home Buyers warranty

What is your liability?

Montana Statute of Repose is 10 years. However, if the defect is discovered in the tenth year, the claimant has an additional year to bringing a claim. See MT C.A. §27-2-208 (2012).

What does that look like?

80% of structural claims are caused by movement of the foundation. The remaining 20% are caused by framing-related deficiencies. Thus the foundation should be the Builder’s primary area of focus. Foundation claims are caused by movement of soils that support the foundation. There are two types of soils that cause this movement…“Active Soils” and “Fill Material.”

What is risk management?

According to the NAHB, “An Express Warranty that is backed by insurance can offer the Builder excellent liability protection.”

2-10 HBW offers a HUD approved, expressly written warranty that does not exclude soil movement, unlike other warranty programs.

Starting at day of closing for a full 10 years of Structural Coverage for you and your buyers.

What else?

Beth Kost, Risk Management Specialist 763.202.3638 | bkost@2-10.com

warranty.2-10.com/expresswarranty

> Geotechnical Investigations can substantially reduce the risk of structural claims, and Foundation, Framing and Final inspections done by the city, county or an approved 2-10 inspector. > Active Soils should be identified and considered in the foundation design. > Fill Material should be compacted and tested per engineering specifications.

Don’t lose sleep worrying about structural claim liability. Ensure that your homebuyers are the best source of referrals. Limit liability, protect reputation, and experience peace of mind by using 2-10 HBW and constructing to essential code standards specific to your site.

Proud to be endorsed by the Montana Building Industry Association CUSTOM MOLDING & MILLWORK • LUMbeR PROfeSSIONaL bUILDING MaTeRIaLS since 1946

18

spring 2015

9.875x3.625.indd 1

6/10/13 10:47 AM

WINDOWS • DOORS • eXTeRIOR fINISHeS

A local, family-owned business since 1994 Brian, Debbie & Keven Patzer – Partners

Ductless, high efficiency air conditioning

Forced air heating and air conditioning

Over 90 geothermal units installed since 2005

1751 E Lyndale, Helena 406-449 4567 www.intermountainheating.com

yo u r website , doesn t sit on a desk anymore.

It goes on endless adventures via phones, tablets, laptops. And now with Google giving ranking preference to mobile-friendly websites, if your users manage to find you and have to pinch and zoom to view content, you might even lose them forever. Sound like time for a responsive website? We’re ready.

996.1361 + HelenA

You deserve to work with an expert you can trust.

Experience and perspective count when it comes to managing your overall risk enterprise.

You deserve a trusted, consultative team who will actively listen to and understand your concerns, and create customized game plans based on our collect resources.

From helping you and your employees to your clients, The Leavitt Group provides specific solutions that allow you to go above the line and compete at what you do best. You benefit from having a partner who will seek to truly understand your business and then collaboratively develop a plan to reduce both direct and indirect costs through carriers that have previously been unavailable. You would be placed with best in class companies for employee benefits, workers compensation, and liability.

We would appreciate the opportunity to discuss our exclusive ideas and alternative solutions with you.

Our “Best in Class” practices and solutions, along with our local ownership structure and national relationships, can be a game changer for you and your business.

Contact your Leavitt Team today to find the solutions you owe to yourself, your business, and your clients to see.

406.324.7486

Leavitt Great West Insurance Services 3390 Colton Drive | Helena, MT 59602 www.leavitt.com/greatwest Montana Home Experts

19

Montana Building Industry Association

| MBIA MEMBERS

INNOVATORS

ASSOCIATION STANDOUTS

TRAILBLAZERS

VISIONARIES

Direct Source MT LOCATION

Missoula, Montana

WEBSITE

www.directsourcemt.com

PHONE

(406) 728-8099

Direct Source MT Inc. is a local Missoula family-owned custom cabinet, countertop and design company. Rich Sargent started Direct Source MT in 2008 when he sought out a more direct and convenient approach to obtain the best cabinet products for Missoula-area consumers. With the

construction downturn at the time, Sargent saw an opportunity to expand his new business with design services to assist builders and their customers with custom kitchen and design needs.

Direct Source MT sets itself apart from the competition as the leading dealer of Huntwood Custom Cabinets in Montana.

The Huntwood name is synonymous with the most superior quality in cabinetry in the West. Every Huntwood cabinet is built to order and built to last with standard use of the highest quality materials and components that many manufacturers

offer only as upgrades.

The state-of-the art facility in Liberty Lake, WA is the most advanced cabinet manufacturing plant in the world. The award-winning 12-step finishing process includes four cycles of oven baking that creates the toughest and longest lasting finish in the industry, backed up with a Lifetime Warranty.

With the best product, Sargent soon teamed with the best designers. Direct Source MT’s dedicated and gifted designers collectively have over 100 years of design, building, and customer service.

The Other Guys Wood Floors LOCATION

Great Falls, Montana

WEBSITE

www.theotherguyswoodfloors.com

PHONE

(406) 590-7565

The Other Guys Wood Floors is a Montana family-owned business specializing in installation, sanding, refinishing, and 20

spring 2015

restoration. They believe that lasting beauty is never out of style but can be resurfaced. They started the company 20 years ago with the mission to create beautiful wood flooring throughout Montana. They provide expert installations of all types of unfinished, pre-finished, or engineered wood floors.

Wood flooring can add the warmth to make a house a home. Hardwood flooring

is a favorite choice of home buyers. It is also an environmentally friendly option that is a perfect fit for those wanting a green built home. Their floors can add personal design options that traditional floor coverings do not offer. Home owners enjoy the ease of maintenance of the floors, and they believe that wood floors provide a lifetime of happiness and beauty for home owners.

our members make us proud Marks Lumber LOCATION

Clancy, Montana

WEBSITE

www.markslumber.us

PHONE

(406) 933-5794

Marks Lumber is your specialty lumber and landscape resource located in Clancy.

The Marks family has been involved in the timber products business for over 75 years. Steve and his wife, Laura, are proud to carry on the family legacy from Steve’s father and grandfather.

What began as a small sawmill operation, cutting mainly railroad ties, has grown into a multi-faceted timber products manufacturing and retail facility providing a wide range of building products. The operation consists of a full-scale circle-sawn mill, band re-saw, planer, dry kiln, bark plant, and a custom

portable grinding operation.

Lumber products include their signature circle sawn flooring which creates a beautiful, durable and maintainable living space. Marks Lumber's circle sawn flooring is cut directly from their circle sawn sawmill and then kiln dried to eight to ten percent.

Timbers and beams are cut from handpicked logs to get the best timber for your job. Timbers are then kiln dried and used for trusses, corbels, posts, bridge stringers, decking and many other applications.

Marks Lumber also has a skilled timber framer on staff to design, cut, and assemble your trusses or timber structures. Their natural, rustic wood siding, made from a select-grade, kiln-dried material, adds a unique and rustic look to your building. They have many patterns, thicknesses, and saw textures available to you.

Their tongue and groove products can add

great accents to the interior or exterior of your home. They stock pine, blue pine and douglas fir. The full-dimension rough cut stock is kiln dried and graded and is great for trim, fencing, blocking, bridge or trailer decking, and more.

Logs consumed at Marks Lumber are harvested in Montana in a manner that creates healthier forests and fulfills the landowners’ objectives. They believe in utilizing the whole log by marketing certified playground material (engineered wood fiber), sawdust, firewood, hog fuel, and shavings.

Their line of Elkhorn Landscape Products includes colored and natural mulch, bark nuggets, and soil conditioners, which are made from sawmill residuals, cull logs, and other virgin by-products.

Marks Lumbers strives to provide superior customer satisfaction through experience, integrity, and quality.

CoMpetitive rates.

Professional service.

For all your home buying and banking needs.

NMLS #613382

Administrative Hassles become a thing of the past.

Our professional services include, but, are not limited to: • Human Resources • Online Marketing • Information Technology

L en d in g in Mon ta n a for ov er 120 y ears

• Payroll • Bookkeeping • Benefit Offering

800.454.2446 | www.avitusgroup.com

www.fcbank.net

real esTaTe loan office 28 n Last Chance gulch Helena, 406-449-9800 fUll service BrancH 2897 prospect avenue Helena, 406-449-9300

Montana Home Experts

21

| THE BACK PAGE

spring 2015 spotlight

NAHB award recipients

MBIA’s Sean Lawler Wins National Safety Award

Helena’s Mike Hughes Presented BEAM Award

The National Association of Home Builders (NAHB) awarded Sean Lawler, Safety Director for the Montana Building Industry Association GRIP program, the 2014 SAFE Award during the 2015 International Builders Show in Las Vegas.

The NAHB/Builders Mutual Insurance Company Safety Award for Excellence (SAFE) recognizes individuals for the excellent safety programs that make them leaders in the residential construction industry.

Mike Hughes of Mike Hughes Builders in Helena, was presented the Builders Engaging Associate Members (BEAM) award. The BEAM award is given to a builder member who values doing business with Associates: trade partners, suppliers and service providers who are also members of the NAHB federation.

Lawler has been the Safety Director since 2010. He provides professional occupational safety and health services to a diverse customer base. His work requires coordinating with multiple disciplines and providing technical support to MBIA members across Montana. Currently the program assists 315 companies providing safety training to more than 1600 builders and associate members across Montana.

Lawler demonstrates a superior commitment to safe work practices.

Safety on the jobsite is a top priority. It is great to see building industry professionals, government officials, and high school and college students making a difference in advancing safe work practices and creating strong safety programs.

Over 70 percent of Hughes’ subcontractors are in the Association, and he has even developed a system to increase interest among his fellow builders in doing business with associates.

Hughes led a 2008 membership drive that recruited 260 new members to the Helena Building Industry Association, doubling its size. Six of his former employees own their own businesses and because of his recruiting efforts, they are now

active associate members.

Mike is the most ardent supporter of HBIA and MBIA. Mike led the charge against mandatory fire sprinklers in the state legislature. He rallied over 120 of his subcontractors, employees, and fellow members to attend a legislative hearing. His leadership was instrumental in preventing mandatory sprinklers in new homes. Mike developed a “Builder Scorecard” as a way to help MBIA builder members quickly and easily recognize which of their subcontractors and suppliers were associate members.

“ I support the businesses that support the industry. This association protects and supports home ownership and economic opportunity.” mike hughes

22

spring 2015

As your life unfolds, change is waiting around every corner.

That’s why it’s comforting to know, for nearly 75 years, Blue Cross and Blue Shield of Montana has been with you

Through it All

every step of the way. So when life calls, and you need us most, we’re here for you… through it all.

A division of Health Care Service Corporation, a Mutual Legal Reserve Company, an Independent Licensee of Blue Cross and Blue Shield Association.

Montana Home Experts LEARN MORE OR ENROLL TODAY at BCBSMT.COM I 855.765.1222

23

FIRST INTERSTATE BANK

It’s more than just

new construction.

It’s your dream. One you’ve been working on for quite some time.

Construction loan financing— it’s you and together.

24 firstinterstate.com spring 2015