Build a business you can sell page 20
Outperforming your cash-deal competitors page 24
Mike Holmes: page 12
Hearth and soul Warm your clients up with fireplaces page 34
BUILD | GROW | PROFIT
Love him or loathe him?
CONTRACTOR
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More stories, more help, more information for renovation contractors than any other website POPULAR ARTICLES (VIDEO) Our readers write
.ca
Rob, Steve and readers weigh in on the Ontario College of Trades’ compulsory fees and Rob reports briefly on the RenoSummit events recently presented in Vancouver and Calgary.
BUILD (AUDIO) Window R values: What’s the truth? Listen to Koci’s radio report on 680News in Toronto on the unreliability of R values. They may be gospel to consumers, but they don’t reflect actual insulative performance.
CONTRACTOR U Markup versus Margin: Do you know the difference? A 43% markup will give you a 30% gross margin. Failing to know the difference between markup and margin will do serious damage to your bottom line, as Mike Draper reports.
DISTRACTIONS (VIDEO) Tree Protection
CANADIAN
Rob starts noticing different types of tree protection on job sites around the Greater Toronto Area, and shows us how the pros do it. There’s nothing like a orderly, immaculate jobsite to leave a great impression with future prospects.
CONTRACTOR.ca BUILD | GROW | PROFIT
Volume 13, Number 6 January / February 2013 canadiancontractor.ca | Tel: 416 442 5600 | Fax: 416 510 5140 80 Valleybrook Drive, North York, ON, M3B 2S9 Canadian Contractor, established in 2000, is published 6 times a year by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. ISSN 1498-8941 (Print) ISSN 1929-6495 (Online)
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CONTENTS
16
CONTENTS
Business Tips
features RenoSummit 16 16 business tips from our Vancouver and Calgary training seminars
16
Under the table 24 How to compete with your cash-deal competitors Easier, faster, better 30 Maxwell on real-world options for streamlined drywalling
Trucks report 40 Full-sized pickups get smarter
24
Under the table
departments Editorials 10 Koci on being uncivil, Payne on idiocracy
Voices 12 Mike Holmes: Love him or loathe him?
Trucks REPORT 40
Site notes 18 Rona boss quits, Ont. College of Trades, $60-billion reno market
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Jan/Feb 2013
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CONTENTS
FIREPLACES
CONTENTS
34
Warm up your clients
Photo: Larry Arnal Photography
departments Contractor U 20 How a renovation firm in Edmonton sold for nearly $500,000
Bathroom 46
ventilation
Stuff we like 29 Hot new products on the shelves now
The Creative Eye 34 Custom-built fireplaces that warm the senses
Mechanical Room 46 Bathroom ventilation: fact and fiction What did they pay? 50 Guess the cheque written for this roof
50
What did
they pay? www.canadiancontractor.ca
Jan/Feb 2013
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EDITORIALS
Voices
MAN THE BARRICADES By Rob Koci
The list of those who broke the law to improve it is long and distinguished: Jesus, Gandhi, Rosa Parks, Martin Luther King, Nelson Mandela, to name but a few. It’s called civil disobedience. Here’s Henry David Thoreau’s definition from his famous essay, On the Duty of Civil Disobedience: “A public non-violent and conscientious breach of law undertaken with the aim of bringing about a change in laws or government policies.” I prefer a more robust definition: “Civil disobedience is the act of breaking the law, born out of necessity, when said law is full of crap, destroys lives and punishes the innocent while those who defend said law make it clear they won’t listen to anything else.” But let’s stick to Thoreau on why it should happen: “If the agent of injustice to another, then I say, break the law.
Civil disobedience is the act of breaking the law, purposefully.
Rob Koci
“
“
it (the law) is of such a nature that it requires you to be
Associate Publisher rkoci@canadiancontractor.ca
Let your life be a counter-friction to stop the machine.” With the establishment of the Ontario College of Trades, along with the pressure from the Ministry of Labour, a punitive tax regime at all levels of government and the pressure of a well-oiled, consumer friendly, cheap cash economy, legitimate contractors in that province are being put in a position where they have to think seriously of breaking the law to make a very important point. I defend them. Being illegitimate is no fun. Being on the wrong side of the law is no fun. Ask any of the esteemed law-breakers of history or read their stories. But when you become the agents of injustice by obeying the law, something’s got to give. For justice’s sake, sometimes, it’s necessary.
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EDITORIALS
Voices
COLLEGE OF IDIOCRACY By Steve Payne
“
What does Ontario's College of Trades add to our industry?
“
I tried, I really tried, to be “balanced.” When I came aboard as editor of Canadian Contractor in late May, my predecessor (that guy opposite) had been slamming the fledgling Ontario College of Trades in these pages for quite some time. Dozens of categories of skilled tradespeople in the province will have to pay, very soon now, compulsory annual fees to belong to a “College” that will teach no courses and educate no workers. The College is purely a regulatory body. It’s supposed to police the 157 trades that, under the 2008 College of Trades and Apprenticeships Act, it can now control. “Only” a couple dozen of those trades will be hit with “compulsory” $120 fees in 2013 (see page 18), the rest are allowed to join on a “voluntary” basis. But the precedent has been set. Expect a lot more trades to be brought in by the College’s internal processes. It will need the revenue. We’ve interviewed Ron Johnson, the chairman of the board of the College. We’ve had the College’s registrar and CEO, Rob Guthrie, in to meet with contractors at our offices. After listening closely to them, I can’t see one function that this organization will fill, in exchange for tens of millions of dollars of fees collected, that isn’t already being done by the many legal and regulatory systems in place (for good reason) for decades in the shelter industry. They work! You want to build below code? We already have an entire army of building inspectors to look after that. You want to operate under-the-table? That’s patently-obviously punishable by any number of municipal, provincial and federal authorities. You want to operate as an unlicensed electrician or plumber? What, that was legal before? Come on. What does this new bureaucracy add to our industry? Nothing but extra fees and a promise that you can tell customers you belong: To a College of Idiocracy.
Steve Payne Editor
spayne@canadiancontractor.ca
www.canadiancontractor.ca
Jan/Feb 2013
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VOICES
The Mike Holmes Debate: Love him or loathe him?
He says 70 per cent of contractors are ‘bad’ and 10 per cent are ‘ugly.’
A
lot of readers started sending us their opinions on Mike Holmes, online, after we wrote a few pieces about him on our website www.canadiancontractor.ca. In an interview published in the November issue of Reader’s Digest, the “third most trustworthy celebrity in the world” (behind Morgan Freeman and Ron Howard, according to Forbes magazine) dumped – yet again – on his fellow contractors. He said only 20 per cent of them are “good,” 70 per cent of them are “bad” and 10 per cent of them are “ugly.” Here’s what you thought about that. – Steve Payne, Editor
LOVE HIM Great value in Mike Holmes I feel that there is great value in what Mike Holmes has shown homeowners and contractors over the past decade. Everyone has to learn the value of quality work. Unfortunately, too many learn the hard way! I also agree that the superhero idea is a bit much – however, that’s show biz! David Boyle Belyea Bros. Heating & Cooling Toronto “Can’t get enough of him” This is one fan of Mike’s that can’t get enough if him. The shows are great in that he hammers it home all the time: Educate yourself, get a permit so the work can be inspected, check references, and have a contract that spells out what is expected and the terms of payment. I have been in business for over 30 years as a heating and air conditioning contractor and I have never had a problem getting “my price” to do the job properly. Sure, mistakes can be made and some things can be overlooked, but if the job is properly supervised and inspected any mistakes can be corrected before it is too late or too costly. Attention to detail is top of the list. The only thing I would change about Mike’s show is the appearance of some of his tradespeople. My staff have always been in uniforms (supplied by the company) and they 12
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VOICES
better show up to work well-groomed (hair cut and clean-shaven as well as clean smelling) or they won’t be working. I don’t care if it is a commercial construction site or a customer’s home, image is important. Frankly, some of Mikes’ staff would not be allowed in my home. When I see a tradesman that is unshaven or sporting a pony tail, I think to myself, “If he can’t look his best, chances are his work will be the same.” As a contractor, I do wonder how many job bids Mike would win if he was on the same playing field as all others, but kudos to him for what he does. His bottom line is probably more cause for the backstabbers and jealous ones than his criticism of other contractors. I really enjoy his shows and wish he could use his fame to push for certification courses and licensing in being a handyman or a general contractor. Don Bell Signature Air Systems Bolton, Ont.
LOATHE HIM He wouldn’t get Holmes to build his doghouse Mike Holmes? I wouldn’t get him to build my doghouse! All smoke and mirrors. He knows everything about nothing. You get what you pay for. As John Ruskin (the 19th century writer on art and architecture) once wrote: “It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done.” I think there is 75 percent good contractors and 25 percent bad clients! Steven Eisner Eisner Murray (Project Management) Toronto Seeing through the facade I think the biggest issue we, as legitimate, professional builders, have with Mike Holmes is that we all know that behind his show is a huge business that is paying for him to use specific products... I have seen numerous instances where he has claimed a product is not adequate [and where] his sponsors are paying for their product to be installed. I have talked to numerous other professional builders who are award-winning, top of their field, and a lot of us see through the facade. I do see that a lot of what he does is correct and there are a lot of unprofessionals out there in our field. What we really don’t like is that (he) has not helped in the area of trust. If anything (it) has made our whole industry look bad. David Ratzlaff HR Pacific Construction Management Golden, B.C.
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VOICES
“Self-glorifying, egotistical maniac” As an interior decorator I am often involved, along with my clients, in the construction process. I used to hang on Mr. Holmes’ every word because he shares a lot of his knowledge with his viewers and you feel a little more educated after having watched one of his shows. However, Mike’s increasingly contractor- bashing, nitpicking, commando-style, “I-know-it-all” approach has me tuning him out! Sadly, whether Mike realizes it or not, he is turning a lot of people off of him as a person and I can’t help but feel that he is burning a lot of bridges along the way. There is no doubt that he knows his stuff, but his once kind and caring persona has morphed into a self-glorifying, egotistical maniac... Oh, by the way, by the way, if you want to really learn something about construction, give Brian Baeumler a try, now that guy can teach! Jackie Nordeman Limelight Interiors, Dunnville, Ont. Doing it right... with unlimited funds I’ve been in business for 17 years and come from a long list of family carpenters dating back centuries (all have apprenticed with master carpenters). It’s time to quit selling bullshit! Put it this way, if Mike is such a great renovator then why did he go broke and why was he working for someone before he was recruited by HGTV? He’s a typical salesman. People who don’t know anything and need to believe something, love him. (They think he’s on TV, he must be good, because he tells you so.) Mike is not even a tradesperson! “Doing it right, with unlimited funds” should be his new slogan. If I charged out all of Mike’s hours on his show , l would never get another job! l think we would all like to hear from Mike’s previous customers (when he was in business before his show happened) as to how his work performance and his final price... Chad Woods Tiverton, Ont. Holmes’ exterior techniques “foolish and amateurish” I stopped watching Mike Holmes, to be candid, because although his interior work looked OK to me, his exterior was full of foolish and amateurish techniques and he simply didn’t know the basics of exterior work. Lawrence Winterburn Gardenstructure.com Elmvale, Ont. “Undermining the honest contractors” Mike Holmes has been a black mark to all good contractors since he started. Every time we go on a call we are painted as bad by Mike and find ourselves having to prove ourselves. Should a small problem come up during construction, the client starts getting freaked out – never mind that we are professionals. Mike has done more to undermine the honest contractors out there than he has done good. I, too, can point out all the mistakes he makes on his show but the worst was that disaster down in 14
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New Orleans. Framing that house, the whole world was laughing at us thinking that was how we frame houses [in Ontario]. And to show where his mind is at, it was over 100 degrees and with great fanfare he hands out his new Mike Holmes 20lb tool belts! I have no use for this guy and the more of us that send e-mail to his sponsors and TV network, maybe the time will come when he will go back to being out of work... so that we can continue to provide the quality of workmanship that most Canadian contractors provide. Fred Patterson Custom1 Contracting Baysville, Ont.
He prefers Mr. Blandings I once worked for a contractor who hit upon a great idea to instill a dose of reality into his clients about the potential “surprises” that inevitably crop up when doing a reno. He would lend them a copy of a movie called Mr. Blandings Builds His Dream House with Cary Grant. This movie was remade (with Tom Hanks, 1986) as The Money Pit but the original is funnier and is as apt today as it was when made back in the 40’s. It’s a must see for all contractors and clients. Peter Forbes, Barrel, Carving & Signage Vancouver, B.C.
Heaping sympathy on “greedy” customers One of the issues that always amazed me about Holmes on Homes was the guilt, greed and consequential stupidity of the customers. Such as the homeowner who picked a contractor driving an 85 VW Rabbit with a 4-foot stepladder bungeecorded to the roof, to do his full renovation of an entire floor for $50,000 cheaper than the bona fide contractor. Then, after the dog-pile mess is left, Holmes is there heaping sympathy on the poor innocent homeowner. People will spend $40-50,000 on a car that sits collecting rust in their front yard for an annual expense cost of $10,000... yet no way will they spend that much on a contractor or tradesmen. Yet with Holmes the public still does not know what a fair, safe and legal job costs…. Most small contractors and self-employed tradesmen loathe his show because of the way he vilifies (them) to the point they are all lumped into one pool of SOBs…while, of course, patting the moron that picked the $50,000 lower price to begin with. Doug Lockhart Lockhart Industries, Heating & Cooling Duncan, B.C. www.canadiancontractor.ca
Jan/Feb 2013
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RENO SUMMIT
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Business Tips from
Canadian Contractor teamed up with Maryland-based renovation coaching firm Remodelers Advantage recently to present RenoSummit seminars to packed classrooms in Vancouver and Calgary. Thanks to our sponsors: LePage, Milwaukee and BuilderTREND.
$
FINANCES Victoria Downing
By David Godkin
1. Understand Gross Margin Profit (GMP) The simple formula for Gross Margin is revenues less costs, divided by revenue. A project that generates $15,000 less $10,000 costs yields $5,000 or a GMP of 33%. A good GMP range is 30-40%. 2. Allow for “labour burden” costs When calculating wages, don’t forget to allow for “labour burden” costs. These include auto expenses of field staff, tool costs, cell phones, warranty allowances, stat holidays, etc. Labour burden can account for 25 to 50% of the dollars you pay in wages. 3. Pay yourself a salary that is a non-negotiable You take a lot of risks; you’re working hard in a complicated business, so pay yourself well. A rule of thumb is a salary made up of 10% of projected revenues plus 10% of your bottom line net profit.
SALES Paul Winans 4. Qualify prospects using PALO When a prospect calls you on the phone, you have to “qualify” them so you don’t waste time with a 16
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RENO SUMMIT
face-to-face meeting that goes nowhere. Remember the acronym PALO. Purpose: What exactly are they looking for? Agenda: What specific questions do they have? Logistics: How long should we talk? Is this the right time or should we reschedule? Outcome: Do we move forward to a face-to-face meeting or should we part ways now? 5. Ask the question: “Have you renovated before?” Someone who has worked with a contractor will understand what’s involved and be less likely than a first-timer to balk at your pricing. 6. Make sure they’re serious Someone who has just sunk all their money into a new house is likely a poor prospect. People who have been “planning this project for 15 years” might be wasting your time and theirs. You’re in the contracting business, not the entertainment business. 7. Do they have a sense of urgency? An expectant couple wants that baby’s room built now. And offering a bride-to-be’s parents a process that ensures a firm price and a firm completion deadline is a real winner. 8. Take notes Ask probing follow up questions, and repeat back what the client has told you. Clients love this because it means you are listening to them. 9. Be upfront if you don’t want to work with them If for whatever reason there’s not a fit between you and the prospective client, say so. Take them seriously, treat them with respect, but if you can’t meet their expectations offer to refer them to a reputable company that can. 10. Always look to establish long-term relationships A sure fire way of determining your company's true success is to ask yourself what percentage of your leads comes from past clients and referrals. If that percentage is very low, chances are your past clients
don’t have happy stories to tell other people. And those are where your future clients come from.
NEGOTIATING Rob Koci 11. Avoid wanting a project too much And when the going gets tough, remember: you have genuine strengths and offer real value for the terms you want. 12. Don’t get hung up on single issues If you can’t resolve that kitchen or bathroom question, park it and come back to it later. Time has a way of changing people’s minds. 13. Avoid negotiation fatigue Watch for signs that you or the client is tiring. Projects are sometimes lost not because of your proposal, but because discussions simply went on too long.
MARKETING Victoria Downing 14. Once you start marketing, never stop It reminds people you are a still a going concern and over time allows you to cherry pick the kind of projects you want. In lean times, marketing helps you capture and retain more of the market share. 15. Your logo should be consistent It should be instantly recognizable. Make sure it is scalable; finer details on your logo may come across on your outside signage but be lost on your letterhead. 16. Get professional photographs Yes, your nephew took wonderful photos at the family picnic, but do you want him taking snaps for your business? Use a pro, someone with style who won’t leave a mop in a bucket in a shot of the kitchen you just renovated. cc
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SITE NOTES
By Steve Payne RONA’s president resigns Robert Dutton, who over 20 years as president of RONA built the firm into Canada’s largest home improvement retailer, resigned his post on Nov. 9. The company Robert Dutton had announced dismal third-quarter earnings just before Dutton’s resignation, but it was his opposition to a takeover of RONA by North Carolina-based Lowe’s Inc., the world’s second-largest home improvement retailer, that had fuelled rumours about the inevitability of his departure. Lowe’s offered $14.50 a share for RONA in September, at a time when its stock was trading below $10. Dutton, the RONA board and most of its independent dealers (RONA has both corporate and dealer-owned stores) firmly rejected the deal. This annoyed some of RONA’s major shareholder groups, especially when Lowe’s withdrew the bid and RONA’s stock sagged again.
Ontario College of Trades announces its controversial fees The Ontario College of Trades – a contentious new “regulatory body” for the province’s tradespeople that will teach no courses and train no workers – has announced the fees that it will soon begin to collect. Journeypersons and employers of certain “compulsary” trades categories will have to pay $120 in 2013 to the College, apprentices, $60. These fees will be levied on top of any existing licensing dues In the home improvement industry, alreadylicensed members of four trades will be receiving invoices: electricians, plumbers, sheet metal workers and air conditioning/refrigeration mechanics. Carpenters, drywallers, framers, painters and
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most other trades are not yet “mandatory” and will exempt for the time being. But opponents of the College are warning that, in time, the College is almost certainly going to demand funding from more of the 157 trades that it is monitoring, representing 500,000 Ontario workers. Most of the anti-College publicity so far has been driven by the Coalition of Ontario Construction Employers, which represents over 100,000 Ontario tradespeople and employers. In a press release, it says new fees announced last week “by the McGuinty government’s newest bureaucracy amounts to a major tax hit on both tradespeople and consumers.” The Coalition says the fees will drive up a host of consumer service costs, from a haircut to hiring a plumber, electrician and auto mechanic. “There’s no question this new McGuinty government bureaucracy is as secretive, disorganized and undemocratic as ever,” said Sean Reid, Chair of the Coalition. “They’ve been stalling for months now on this multi-million dollar tax grab that slams tradespeople and consumers, and yet they still haven’t bothered to explain what tradespeople will get in return. That’s because there is no benefit. It is money for nothing.”
Outbid on a job? Take heart, there’s $60-billion in reno work out there If you’ve just lost a job you thought you’d win, cheer up. There’s a few more like that out there, if you look. “Renovations are a $60 billion market,” an economist with the Canada Mortgage and Housing Corporation told the Hardlines Conference recently. Ted Tsiakopolous said, however, that that number won’t go up very much over the next year. He explained that customers finance renovations on the perceived value of their homes: and the housing market is flattening out.
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CONTRACTOR U
Can you sell your renovation business? How an Edmonton contractor sold his firm for close to $500,000 – a great deal for both buyer and seller. By Mike Draper
Navid Tirmizi (left) sold his firm, Houseworks Renovations, to Shaun Kerr (right), earlier this year.
D
oes your renovation business provide you with a pension? Probably not, right? So how do you make sure that, one day, you have enough money to retire? Most renovation companies I see make barely enough money to support the contractor today, never mind stockpiling money for retirement. One solution to this problem is, of course, to sell your business one day. If you haven’t set your business up to work without you, you won’t have much to sell. But if you have implemented the right systems, delegated, and built an organization that works without you, you will have a valuable asset that you can sell. At Renovantage, our definition of a successful business is: A commercial, profitable enterprise that works without you. Let’s look at how a successful contractor recently sold his business: not exactly to retire, but to move to another city.
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bout two years ago I was hired by a contractor in Edmonton to help him get his business life back under control. Navid Tirmizi was working six days a week, 12 -14 hours per day. His wife, Victoria, was also involved in the business; their firm, Houseworks Renovations, was their life. However, they both knew that they couldn’t continue operating this way. There were three reasons why. First, the hours were crazy and Navid and Victoria wanted more from their firm then to have to tend to it six days a week. They knew that their business should be providing them with the life that they deserved, not the business driving them to work more. Second, they knew that in order to grow from where they were, they couldn’t spend even more time
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on the business because they were already working too many hours. In fact, they actually needed to reduce their work hours. Third, the Tirmizis wanted to move their family from Edmonton to Calgary, yet couldn’t see how they could do that when the business required that they be local to their clients. With all this in mind, we looked at three potential solutions: One, they could hire a general manager; two, they could commute from Calgary to Edmonton during the week; and, three, they could sell the business.
Photos: Michael Frederiksen
Identifying the problem What we quickly realized was that none of these three options was possible with the way the business was being run. We couldn’t hire a GM because the entire business was in the heads of the owners. Commuting from Calgary to Edmonton would be a nightmare — might as well stay in Edmonton. And, who would buy a business where the business was all about the owner? At that point the problem was obvious. They had built a commercial, profitable enterprise but it didn’t work without them. I believe that 95 per cent of all renovation companies have the exact same problem. Now that we had identified the problem with the company, we knew that for any of the three options to be successful, we had to focus our efforts on building a company that was not so dependent on the owners. We had to build some systems so that the company could start to take care of itself. We had to release the owners from being slaves to the business. People talk about systems all the time. But the effort to put them in place – and the belief that they will really work – is too often lacking. This thinking is the reason most renovation companies never get sold. They are either
passed onto the next generation or simply shut down when the owner has had enough. At least when the business is passed on, there is some value that changes hands. When a business is shut down, it is a real shame. Think about it — a business has been around for 30 years, is well known, and it is simply shut down? Crazy! All because the business never learned to take care of itself and its owner.
Where do you start? So where do you start after you make the decision to wean your company off your own micromanagement and begin to make it run independently? Navid and Victoria have now sold their business for almost $500,000, but they were once like many of you: hitched permanently to the business, seven days a week. As we began to work with the Tirmizis, we found lots and lots of areas of the business that could either be eliminated or made more efficient. Navid was already off the tools and not spending any time swinging a hammer, so we had a good starting platform. He had hired some good crews, most of them as employees, who were very capable of getting the work done. He had spent a lot of time training them. He would also hire specific subtrades such as electricians and plumbers as needed. Where Navid was caught up was that he was doing estimating, sales, project management, site supervising, human resources, design, finances, marketing, and more. It was all just too much. It meant working crazy hours. Considering all of this, we looked at what Navid and Victoria should continue to work on and what they needed to get help with. Navid was very strong at selling and Victoria was very strong at design. These two
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functions had made Houseworks successful. The rest was more about the day-to-day work that needed to be done to deliver the finished product. The first major process we worked on was their selling system. We broke their sales process down into about 20 steps — right from the first phone call from a prospect to the sales-to-production handoff meeting. The goal here was to set a standard for all new
sales opportunities because leads were starting to fall through the cracks and not get followed up on quickly enough. Each sales lead was being handled differently and it was becoming too hard to keep track of each opportunity. (If you would like a copy of a sales process, email me at mike.draper@renovantage.com and I will send you back an example).
Too much time on site The keys to the sale of Houseworks Renovations included its established client base, its brand name, and the fact that the business had been methodically “systemized.” In other words, it was running without the owners needed to micromanage every aspect of its day-to-day operations.
The second major area of concern was the amount of time Navid was spending on job sites. Site supervisor is a very critical role in the construction process and it is extremely important in maintaining quality standards. So it was a tough decision for Navid to let someone else manage the quality of the on site work. After all, this is what clients had come to expect from Navid. However, we knew that this role had to change from Navid to someone else. It was the one area that forced Navid to be too much in the day-to-day. So we put an ad for a site supervisor in the paper and online. The hiring process began and soon there were lots of good candidates applying.
Delegating the bookkeeping The next major area to delegate was the bookkeeping. Houseworks had gone through a number of bookkeepers over the years. They had all done a fairly good job of entering information and keeping things up to date. The trouble was that they couldn’t provide enough time to really take over the full bookkeeping needs of the company. We needed to have someone who could help with job costing, accounts payable and receivable, bank reconciliation, etc. We wanted
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to be able to implement a system whereby invoices received by noon on Thursday would be approved and paid on Friday. We wanted to stop Navid having to write cheques every day and then spend precious time meeting with subtrades to give them money. It all had to be systemized so that everyone knew exactly when their invoices needed to be in and when they could expect to be paid. All of this meant we needed a full time bookkeeper — one that could come in on a regular basis and could take responsibility for helping to run the financial part of the business. In March 2012, that person was hired. It was also in March that Navid had his first person interested in buying his business. More on that in a moment. In April 2012, I set up a conference call with Mike McCartney, general manager of Eyecon Contracting in Newmarket, Ontario, so that Navid could explore what a renovation company could be like with a general manager running the business, relieving him of the day-to-day issues. What Navid learned from Mike was that the general manager needed to have the same passion as the owner and be willing to treat the business as though it were his own. Mike also felt that for any good GM there had to be a “carrot” at the end of the journey.
Moving the family The moving of the Tirmizi family from Edmonton to Calgary was decided in July of 2012, when their Edmonton home was sold and a house in Calgary purchased. Navid and Victoria were now committed to selling their business. Reducing the business’s day-to-day demand on Navid’s time was now a priority. This was immediately accomplished by the hiring of a project manager. The PM’s role was to take control of the project schedules for the many jobs that were on the go at the same time. Shaun Kerr approached Navid as having interest in buying the company in July of 2012. With close to $2-million in annual revenues and 19 active and pending projects, Houseworks had real value to a
new owner. The company’s brand name, assets and goodwill had substantial value. Once it was clear that Shaun would be a good fit to continue the longstanding tradition of Houseworks, Navid brought Shaun in to work in the business. It was this move that helped Shaun to truly assess what value he would receive in taking over the company. It also gave Shaun the opportunity to meet with Houseworks’ clients to help ensure them that during the ownership transition their projects would be well looked after. In September 2012, Shaun and Navid reached an agreement for the change in ownership and the transfer of assets that would be included in the deal. Every effort was made to ensure that the transition would be as seamless as possible for employees and clients.
After the transfer At the end of October I traveled to Edmonton to meet with Navid and Shaun to see how the transition was going. Although some loose ends still needed to be tied up, the process had gone very well. The company was operating well with Shaun at the helm. A couple of new employees had been brought in to continue the process of automating parts of the business. Shaun is implementing more technology into the business so that he has even tighter controls over the financial aspect of everything from labour costs to material costs on a job-by-job basis. His goal is to be able to look at the financial strength of his company at any time, by simply going to his computer and running a report. Near the end of my visit to Edmonton, Navid and I were sitting in the Houseworks office watching Shaun and his staff at work. Navid leaned over to me and said, “It feels a bit strange sitting here. It’s all moving forward. It’s all running without my help.” It was then that we all knew that Navid and his family could move to Calgary with complete peace of mind. cc Mike Draper is a business coach for Renovantage (www.renovantage.com) and a frequent contributor to Canadian Contractor.
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SPECIAL REPORT
UNDER the
TABLE With the punitive costs of sales, income, and payroll taxes, workers comp payments and insurance, it seems like there’s an epidemic of contractors working for cash. Can you compete with them? By Kim Laudrum
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well-off homeowner with a decent-sized renovation project wants to hire you. It’s a straightforward job and the price is great. There’s only one problem: he wants a cash deal. And if you say no to that, your competitor is going to snap it up and laugh all the way to the bank. You need the work and your guys need it, too. Tempted, aren’t you? The cash economy is going nuts. The underground economy is worth $36 billion, according to Statistics Canada. And the construction and renovation sector is at the top of the list. A recent H&R Block survey revealed that when Canadian homeowners were asked if they would pay cash for a home renovation project to avoid paying the tax, 55 per cent said yes.
Playing field not level Michael McCartney knows how difficult it can be to quote against underground contractors. “It’s a big issue for any legitimate contractor. We’re not competing on a level playing field,” said McCartney, vice-president, general contracting with EyeCon Contracting Ltd., Newmarket, Ont. McCartney’s business is driven mainly by referrals from insurance companies to repair residential property damage. There are no cash deals there. But EyeCon has also diversified into home renovations and that’s where the fun begins. “When we’re quoting on a project on a residential basis – say a $50,000 to $60,000 basement renovation project – there’s no way I can compete with them [illegitimate contractors],” McCartney said. “Just off the bat, I’m 13 per cent higher." But it’s not just the HST, he explains, it's also workers comp, insurance, licenses, permits and employee benefits. “I would suggest on the low end I’m paying 25 per cent more than my competitor before I even hammer a nail.” McCartney says the general public is so overburdened with taxes that “they will look for any opportunity to save a buck.” On that basement renovation project, the homeowner could save about $7,000 under the table,
he points out. “For most Canadians that’s almost equal to earning $14,000.”
Provincial variations If 13 per cent sales taxes are bad in Ontario, they are even worse in Quebec, where the province’s 9.5 per cent sales tax is applied on top the 5 per cent federal GST, bringing the total “effective” tax rate to nearly 15 per cent. And in this, the most socialist province in Canada, many contractors are also responsible for paying government unions and many other mandatory expenses, notes Jack Crombie, owner of a Castle Building Centre yard in Hudson, Quebec.
WHAT HOMEOWNERS RISK WITH CASH DEALS 1. They have no protection against bad workmanship. Because the illegitimate contractor doesn’t leave a paper trail, there is no written contract – and so no warranty on work. 2. Without a contract, the homeowner assumes all liability for injuries and damage. If a worker – or the neighbour’s kid – is injured on site, it’s the homeowner’s responsibility. If the house burns down during renovation, it’s the homeowner’s entire liability, on their insurance. 3. Registering all building permits and inspections becomes the homeowner’s responsibility. 4. If the home renovation isn’t registered, it isn’t going to be inspected. If it isn’t going to be inspected, it could well affect the quality. 5. How do you know if the business is registered, licensed and the workers bonded? And if it isn’t and they aren’t, how do you know if the contractor is any good?
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SPECIAL REPORT
“[The cash economy] is a huge issue here,” says Crombie, but he notes that the Quebec government is at least trying to help legitimate contractors compete. “Any time there is a tax rebate, for example, the government here requires the homeowner to use a licensed contractor,” he said. “Everyone wants a deal,” said Jeff Bain, a 30-year veteran of the renovation business and owner of JKB Construction in Vancouver. HST in B.C. is currently 13 per cent but it is going to Jeff Bain
WHAT CONTRACTORS RISK WITH CASH DEALS 1. Reputation. Nothing is worth more than your reputation. And the risks to your reputation from something going wrong on a cash deal, are endless. 2. Credit. If you can’t show income on your books, banks won’t easily extend credit to you. Business growth will be stunted. 3. The ability to collect. Without documentation, a contractor has no opportunity to legally enforce payment or place a lien. 4. Good workers. Attracting and retaining good craftsmen and reliable workers can be harder they aren’t covered in case of injury. 5. A nasty audit. Once you get on the Taxman’s radar, you will stay there for years and years. You’ll be permanently red-flagged. 6. Peace of mind. 7. You’ll never be able to sell your business. Because, on paper, it doesn’t actually exist. Or it will look much smaller than it really is.
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revert to a separate PST and GST on April 1, 2013. Exactly how that new tax structure will work is not yet known, but many B.C. homeowners are delaying projects until the announcement, hoping to reduce costs by as much as 5 per cent. In Alberta, where there is no provincial sales tax on labour – just 5 per cent GST – home renovators report customers rarely ask to pay cash. “Not too many people have asked us about operating under the table,” say husband and wife team Navid Tirmizi and Victoria Tirmizi, who until recently were joint owners of Houseworks, a home renovation firm in Edmonton with seven employees. “They want quality work. They are trusting us with what is probably their most important investment." Victoria and Navid Tirmizi “And, frankly,” adds Victoria, “it’s a question of integrity; ours and the homeowners. The homeowner should be thinking, ‘If this contractor is quick to screw the government, why would he give a second thought about screwing me?’ And alternatively, a legitimate contractor should be thinking, ‘If this homeowner is willing to screw the government, how do I know they aren’t thinking about screwing me?’”
Rarely gets asked “I haven’t been asked about cash in a long, long time,” says David Litwiller, president of Litwiller Renovations and Custom Homes in Calgary. “Maybe it’s the aura I give off – ‘just don’t even go there.’ ” Or maybe a lot of Litwillers’ prospective customers know that he teaches an increasingly wellknown annual seminar in Calgary on the many reasons that homeowners are much better off avoiding cash renovation deals. David Litwiller When asked how his firm competes with those operating under the table, Litwiller says flatly, “We don’t, other than offering stability and 20-year warranties and an address where you can contact us.” But
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SPECIAL REPORT
he does acknowledge how difficult it can be to compete in the underground economy. Litwiller estimates the cash operator gives the customer a 5 per cent discount for cash. But, he points out, the illegitimate contractor saves well over 50 per cent on: income tax (30 per cent and more); bookkeeping (1 to 2 per cent); insurance (2 to 4 per cent); WSIB (10 to 15 per cent); and overheads (10 to 12 per cent) “How do you compete with that when the customer is only concerned about screwing the feds out of their 5 per cent?” Litwiller said. “Fortunately, I haven’t seen [cash deals] for years, but some of the renovators who do smaller jobs are affected by it.” As with most renovators Canadian Contractor talked to for this story, Litwiller says the issue doesn’t affect projects over $100,000.
Back in Ontario “[The underground economy] is a rampant issue in small jobs, say a $3,000 reno or home repair. And it’s definitely worse since the introduction of the HST, ” says Mike Draper, a contractor coach with Renovantage Inc. in Newmarket, Ont. Draper advises his contractor clients to
WHAT CAN A RENOVATOR DO TO COMPETE WITH THE UNDERGROUND ECONOMY? 1. Educate the consumer on the risks and liabilities they expose themselves to when dealing under the table 2. Market your company’s benefits: you run a professional firm that is licensed, bonded, insured, and provides a warranty on good, quality working processes and craftsmanship. 3. Let the homeowner know that you will be taking care of all the headaches: building permits and inspection processes, for example 4. Ask for referrals 5. Build a relationship with the client
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“do your best to educate the consumer” as to how much more they have to lose if they take a cash deal. “People [homeowners] really don’t know how liable they are,” BC’s Jeff Bain said. “There’s a lot of work going on without permits. If the city finds out, they can make the homeowner dismantle the whole thing.” Who wants the potential hassle of paying three times – once to screw it up, another time to demolish it, and a third to accomplish what should have been done in the first place? Bain suggests, “the city should do it’s part to enforce permits,” as a possible solution to the problem. It would also help, he adds, if the city could streamline the permit process, which many contractors and homeowners find too cumbersome. “And if the homeowner does go under the table, let’s make it so they pay the 13 per cent tax the contractor should have paid. Who needs to go to the mailbox and find a letter from Canada Revenue Agency demanding an audit?” said Michael McCartney of EyeCon Construction. But making the homeowner responsible for submitting the sales tax on renovations isn’t likely to happen any time soon. “The government doesn’t want to bite the hand that feeds them,” says Litwiller. “I’d like to see the government bring back the Renovation Tax Credit,” he says. “My understanding is that the government made money on that.” It did. Because homeowners had to use licensed contractors to receive a rebate, the government had an easier time collecting the HST that might otherwise have gone unreported. It also provided much-needed protection for consumers, and as a bonus, stimulated the economy during a recession. All of the contractors contacted for this article said a renewal of the federal government’s Renovation Tax Credit would be welcome. But most of them said the $10,000 project size maximum was too low. Another obvious solution, says Victoria Tirmizi, is to do what Alberta has done – lower the tax. Yeah, good luck with that. cc Kim Laudrum is a freelance writer based in Toronto and a regular contributor to Canadian Contractor. Kim can be reached at klaudrum@rogers.com.
STUFF WE LIKE / Products
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1. STANLEY
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3. IRWIN
Stanley has introduced a new lineup of stud sensors that feature comfortable design for both Pros and DIYers. The entire range of these products features AC Detection which detects live wires up to 2 inches below surface material. stanleytools.com
Black & Decker introduces its Matrix Multi-Tool, an innovative new system built around a single base power unit and multiple changeable attachments. The innovative system drills, saws and sands without compromising performance. blackanddecker.com
The IRWIN Marples high impact chisels feature a fully-forged steel core for unbeatable strength and durability. Also feature an extra-large strike cap that withstands repetitive hammer strikes and that can be hit from multiple angles. irwin.com
4. DYNAMIC PAINT PRODUCTS Introducing the first and only 360-degree twistable silicone paint nozzles. They are designed to get into hard-to-reach areas such as around small corners, behind toilets, underneath sinks and much more. getpainting.ca
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EASIER, FASTER, BETTER. Real world options for streamlining drywall By Steve Maxwell
Boarding, mudding, taping, skimming… sweating, cursing, groaning. Whatever you call it, it’s tough work.
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hances are pretty good that drywalling isn’t the main reason you became a contractor. As necessary as it is, drywalling is also something that more than a few builders dread. And why not? Heavy, dusty and demanding, drywalling is one part of the building process that’s ripe for improvement. And while there’s been no revolutionary change in the way interior walls are typically covered these days, there are a handful of significant evolutionary improvements in the drywalling process. Taken together these make the work easier, the results better and the whole deal more profitable.
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Is there any way to make drywall installation less of a grind? Well, yes. Here are few ways to hang that stuff better.
DRYWALL
Less drywall dust Everyone hates drywall dust, and the fact that it floats around in the air so easily only makes matters worse. Yes, most builders are pretty particular about the working properties of the drywall compound they’ve come to like, but CGC’s dust control drywall compound is worth a try even if it’s not your regular mud. It’s a bit lighter than standard compounds, but the main benefit is the way dust behaves while sanding. Most of it falls straight to the floor, without floating in the air. These are the claims, and I know from my own personal experience that they’re true. Troweling, drying times and sanding are pretty much the same as regular compound, the only difference is that you don’t look like you’ve fallen into a barrel of flour when the walls are finally smooth. You may be so in love with your old, favourite drywall mud that greatly reduced dustiness doesn’t interest you, but I doubt it.
On-the-spot drywall delivery If Captain Kirk and the crew of the USS Enterprise were sent on a mission to drywall buildings on a far-away planet, someone would flip open a communicator and Scotty would beam the gypsum board directly into the rooms they were working on. The Home Depot’s Drywall Direct delivery program is nearly this good. Call any time before 2 pm and your order of drywall will magically appear anywhere you want in any building within a two-hour time frame the next day. Basement, second floor, multi-storey, it doesn’t matter. The drywall transporter technology involved isn’t quite as fancy as in Star Trek (it’s a couple of guys with strong backs), but it is a hands-off process as far as you and your crew are concerned. Minimum order size to avoid delivery charges is $650, but this tally includes mud, tape, corner beads, insulation and pretty much all the drywalling products mentioned here. The Home Depot’s Drywall Direct program is available from more than 100 stores across Canada, covering most major markets. It’s just one more example of how the building process is becoming more modular. The most successful contractors have learned the lesson that their job is really about coordination, not necessarily direct, hands-on production. Farming out the schlepping of drywall is pretty much a no-brainer.
Cordless drywall screw driving
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hen it comes to power tools, a bad start makes for a bad reputation that often lives longer than the reality. Cordless drywall screw guns are a case in point. The idea sounds great, but early models let contractors down. Short run times, expensive batteries that died quickly, and rapid battery self-discharge rates in storage were the main reasons why the first wave of cordless screw guns didn’t pan out. But just because things were bad years ago, doesn’t mean you’re forever tethered to a cord while driving drywall screws today. Lithium-ion batteries are the main reason why. They’ve breathed new life into all cordless tools, but the
boost in run time is especially valuable when it comes to driving drywall screws. Makita’s 18V LXT line of cordless has earned a well-deserved reputation for battle-tough performance, and their BFS450Z drywall screw gun lives up to this tradition. It’s one of the few readily available models in Canada, and is a regularly stocked item at The Home Depot.
DRYWALL
Fiberglass mat drywall Microbes eat organic materials, and drywall paper is one of their favourite foods. Just add water (or even a little too much humidity) and a moldy picnic begins. There are two reasons this matters: First, people are hyper-sensitive about mold growth these days. And second, fixing mold in your projects after the fact costs a lot. It might even cost you your business. Regular drywall is fine for regular spaces, but fiberglass drywall is king when it comes to resisting mold growth. In fact, some types are even weatherproof enough to install before buildings are dried in, for as long as 12 months of full weather exposure. This might not be much of an advantage for standard, residential work, but schedules for light commercial projects involving steel frames can be tightened up considerably when drywall goes on before the roof. DensArmor Plus is one of the most widely available brands of fiberglass mat drywall in Canada, and it pretty well eliminates any problems with mold in high-moisture areas.
Don’t forget the tape Reducing the liability you’re exposed to if things go wrong is a big part of staying alive as a contractor, and sometimes this boils down to little things. Drywall tape is a case in point. While mold resistant drywall is nothing new for bathrooms and other high-moisture applications, what’s the point in using it if the tape turns black and ugly? That’s almost as nasty a callback as if the whole wall was growing things. Regular paper tape is just as much a food source for microbes as the paper on conventional drywall, and that’s why it makes sense to tape with something different in highmoisture areas. Fibatape Mold X-10 scored a perfect 10 in the ASTM D3273 testing. That’s a rigorous four-week process where materials are sealed in a chamber with 95% relative humidity at a temperature of more than 30ºC. Your clients probably won’t take continuous, month-long, steamy showers, so moldy drywall tape is one thing you can check off your worry list if you use the right stuff.
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Easier insulation
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Installing insulation is a close cousin to drywalling, and as long as stud frames remain common in the homebuilding business, batt insulation will be an ongoing part of your professional life, too. But some batts are significantly more pleasant to install, and significantly easier to install well. I’ve never met anyone who’s installed Roxul mineral wool batts and didn’t like them a whole lot more than conventional insulation batts. They’re virtually itch-free to work with, they put almost no fibres into the air, and they’re a whole lot easier to cut precisely. Their high density fibre structure is the reason why. Although you can cut Roxul with a utility knife, a serrated bread knife is the tool of choice for trimming. These batts are stiff enough that they cut exceptionally well with a sawing action, and you can easily be very accurate, too. In fact, you’ll have no trouble sawing 1/4” off the end of a batt, while still leaving square corners. Roxul batts resist water saturation surprisingly well, and their Safe ‘n‘ Sound product provides better than average sound resistance between walls and floors. And make no mistake, sound transmission is a big deal for your clients. In fact, a noisy building will tarnish your reputation for as long as people remember you as the person who built it. Quiet is synonymous with quality in most people’s minds. Insulation is bulky, but it’s also part of The Home Depot’s Drywall Direct program. Might as well get Scotty to beam it down along with the board. cc Steve Maxwell is the tools editor of Canadian Contractor
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THE CREATIVE EYE
to warm up your clients CLASSICALLY CANADIAN On a crackling cold midwinter night on Balsam Lake’s Indian Point, design-build contractors Jane Andrew and Michael Fobert (www.traditionalstyles.ca) get to bask in the blaze of a fireplace-framed great room they (of course) designed themselves. For all the exotic wood species in the world, is there anything more perfectly Canadian than the amber glow of aged white pine? The couple moved their business to this beautiful spot in the Kawartha Lakes, northeast of Toronto, six years ago. They wanted a break from the Big Smoke. Now, Michael says happily, they spend almost as much time back in the city as they always did, because their customer base there just keeps on calling.
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THE CREATIVE EYE
Photos: Larry Arnal Photography
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THE CREATIVE EYE
LET’S TALK IT OVER Sitting by the fire enhances communication. It doesn’t just seem like this, it’s actually been proven by psychologists in rigorous, scientific studies. Human beings get along with each other better, open up more and relax more easily, by the fireside. Even just saying the word “fireside” helps people to get a mental image of honesty, decency, integrity. When Franklin Roosevelt had to address Americans about bleak issues, on the radio, during the early years of The Great Depression (and later, WW2), he called these speeches his “Fireside Chats.” Brilliant.
Photos: Larry Arnal Photography
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THE CREATIVE EYE
Studio H Design
The Venetian Group
Traditional Styles
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THE CREATIVE EYE
BLAZING A NEW TRAIL So central are fireplaces to many Canadians, it’s generally harder to sell a home without a hearth – ask any real estate agent. And yet, with building envelopes become ever more tightly sealed, traditional, open, wood-burning fireplaces can, under some conditions, degrade indoor air quality. The rise of the new, energyefficient, gas fireplace units is blazing a new trail for renovators and their clients, although as shown here, the rustic, traditional look is a bit harder to attain with fireplaces designed for fossil fuel flames.
Photos: Larry Arnal Photography
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THE CREATIVE EYE
Studio H Design
XTC Interior Design
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TRUCKS
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TRUCKS
Full-size pickups
get smarter By Bill Roebuck
T
he full-size pickup truck business is extremely competitive, so frequent mid-cycle updates are common, as are major engineering improvements with each new model cycle. For 2013, the Ram Heavy Duty line is likely to raise the most eyebrows regarding its changes and improvements, with Ford’s F series next, although for different reasons. Meanwhile, General Motors, Nissan and Toyota offer more subtle changes for the latest model year.
Ford The Ford F-150 has seen its focus on driver convenience and connectivity technologies increased for 2013 with standard features such as SYNC with MyFord Touch, navigation with SiriusXM Travel Link, rain-sensing windshield wipers and high-intensity discharge headlamps. Design-wise, all new 150s received a refreshed front-end styling. The new model year also sees the introduction of a new luxury pickup, the F-150 Limited. “The F-150 Limited signifies the highest levels of design refinement, luxury and technology that we’ve ever offered in a … pickup truck,” says Ford group vice-president for product development, Raj Nair. “The F-150 Limited reflects a growing trend – more and more customers today have high expectations for luxury and convenience, yet their needs call for a truly capable truck.” Ford says that more than 30 per cent of F-150 sales are from these high-end trims. The Limited is available exclusively with a SuperCrew four-door cab configuration. Power comes from Ford’s 3.5-litre Ti-VCT EcoBoost engine, which uses regular fuel to produce 365 hp at 5,000 rpm and 420 lb.-ft. of torque at 2,500 rpm. Up to 90 per cent of the peak torque is available from 1,700 rpm to 5,000 rpm. Several other engines are available in the F-150 lineup. Ford claims its standard 3.7-litre V6 engine has the highest towing capacity among competitive models and can tow a 6,700-lb. trailer. Both the 3.5-litre EcoBoost V6 and 6.2-litre V8 are rated to tow up to 11,300 lb. In all, Ford offers 10 versions of the F-150, from the base XL to the fully-loaded Limited, as well as 15 versions of the Super Duty F-250, F-350 and F-450 models. The Super Duty models now offer a Platinum trim for 2013. It’s Ford’s “most premium model ever,” says Brian Rathsburg, Super Duty marketing manager. It includes flashy design elements inside and out, more connectivity technologies, improved seats, a remote start system, power-telescoping mirrors and power-adjustable pedals. www.canadiancontractor.ca
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General Motors GM’s two full-size pickup nameplates, the Chevrolet Silverado and the GMC Sierra, offer slightly different trim designs and options, but are basically identical from a mechanical point of view. A key focus with these models for 2013 has been the fuel system. Both the Chevrolet Silverado and GMC Sierra 2500 HD extended cab pickup trucks are now available as bi-fuel models. These vehicles include a specially designed compressed natural gas (CNG) capable Vortec 6.0-litre V8 engine that seamlessly transitions between CNG and gasoline fuel systems. The fuel system is installed by a GM tier-one supplier and the completed vehicle is delivered directly to the customer. The trucks offer a range of more than 1,000 kilometres. They are available in standard and long box versions, with either two- or four-wheel drive. For 2013, the Silverado/Sierra HD models also get the option of a Duramax 6.6-litre V8 turbodiesel with 397 hp and 765 lb.-ft. of torque on 3500HD Chassis Cabs and pickup box-delete versions. This fall, the 2013 Chevrolet Silverado 3500HD was crowned Canada’s Truck King for 2013 in a head-to-head comparison with the Ford F-350 and Ram Heavy Duty 3500. For 2013, in addition to some new exterior colours, the whole Silverado/Sierra lineup gets powertrain grade braking with all six-speed automatic transmissions. This feature reduced brake rotor temperatures 100°C on downhill grade tests by downshifting transmission gears, thereby reducing brake applications. GM also offers the industry’s only hybrid full-size trucks in the Silverado/Sierra 1500 Hybrids, which offers fuel efficiency of 10.1 L/100 km city and 8.4 L/100 km highway. The maximum towing capacity is 6,100 lb. Silverado/Sierra 1500 models are available in three cab styles – regular, extended and crew cab – as well as three cargo box lengths: 5 ft 8 in., 6 ft 6 in. and 8 ft. They can be configured for a maximum trailer weight rating of 10,700 lb.
Nissan Nissan is basically staying the course with its Titan full-size pickup for 2013, adding a few more standard features to its existing trim lines. The most significant change is a new tailgate design that incorporates an aerodynamic rear spoiler with an integrated rear-view camera. The camera is standard on SV, PRO-4 and SL trims. Mechanically, the Titan has remained unchanged since 2011. It comes in four models – S, SV, PRO-4X and SL; two cab
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TRUCKS
styles – King Cab and Crew Cab; three bed lengths – 5 ft. 6 in. and 7 ft. for the Crew Cab, and 6 ft. 6 in. for the King Cab; as well as 4x2 and 4x4 configurations. The 4x4 models have an advanced shift-on-the-fly system with 2WD/4HI/4LO modes. The engine is a 5.6-litre DOHC V8 rated at 317 hp and 385 lb.-ft. of torque, mated to a standard five-speed automatic that includes tow/haul modes. The towing capacity is up to 9,500 lb. for the King Cab and 9,400 lb. for the Crew Cab. The PRO-4X trim gets a refreshed appearance this year, with revised graphics, satin chrome grille, dark wheel finish, and a dark finish on the lower radiator skid plate. The interior is embellished with white stitching accents, a new logo design and Titan embroidery for cloth seats (leather seats maintain PRO-4X embroidery). Aside from a few more design upgrades and seven new exterior colours, on the practical side, the Titan sees a 120-volt outlet in the truck bed as standard on SV, PRO-4X and SL models, along with a centre console 120-volt outlet, and rear reading lamps on the Crew Cab models.
Ram What do an underwater kiss, ears on a dog and Ram trucks have in common? They are all now featured under the Longest World Records category in the Guinness Book of World Records. The Ram specifically is listed as Canada’s longest-lasting line of pickups. For the 2013 model year, the first retail Ram 2500 Compressed Natural Gas pickup trucks began rolling off Chrysler’s assembly line at the end of October, as the formerly fleet-only vehicle is now available to retail customers. The company says the Ram 2500 CNG is the only OEM-built compressed natural gas-powered pickup truck in North America (GM’s similar CNG offering is installed at a third-party facility). The CNG model uses compressed natural gas as its primary fuel source, but automatically switches to gasoline when the CNG tanks are emptied. For 2013, the new Ram 1500 offers improved fuel efficiency, new technology and new features, including an eight-speed TorqueFlite 8 transmission, stop-start engine, and active aerodynamics -- including grille shutters and air suspension. There were many other changes made to the Ram’s mechanicals, from a newly designed frame to new engines and transmissions. Its new interior features a Uconnect connectivity system. There is even bigger news in the heavy-duty lineup. Ram 2500 and 3500 Heavy Duty trucks also have seen the addition of many new features, including an all-new interior, Uconnect, Powernet, new frames and a new suspension. New frames built with high-strength 50 KSI steel, including eight separate cross-members, hydroformed main rails and fully boxed rear rails, improve strength and mass efficiency. Wider front frame rails enable front suspension springs to be positioned slightly outboard for more positive roll stiffness. Centre frame rail sections are roll-formed, a means for maintaining consistent strength in less complex longitudinal sections. In the rear portion of the new frame, the structure includes fully boxed rear rails and a factory-installed rear axle cross
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member with provisions for fifth wheel and gooseneck hitches. The 2013 Ram Heavy Duty models also get a new front and rear suspension system that improves overall roll stiffness. A number of body improvements have been made to enhance overall noise, vibration and harshness. The Ram 3500 features a factory-installed trailer tow connector in the truck bed, included with the optional fifth wheel or gooseneck tow prep package. New structural support is designed into the body to handle the payload increase and improve durability and performance. For operators that need to tie into the electrical system, a new vehicle system interface module (VSIM) is capable of communicating between aftermarket modules and various factory control modules. The VSIM upfitter interface module features a total of 72 inputs and outputs, including lighting controls, door position, and throttle and transmission position. The module acts as a secure gateway to the vehicles’ electrical system. The Powernet electrical architecture system allows data networks to be equipped with as many as 40 individual modules, all designed to improve vehicle performance and enhance the comfort and safety of the driver and passengers. Production of the heavy duty models begins in the first quarter of 2013.
Toyota Several of the 11 models in Toyota’s Tundra full-size pickup line – three 4x2s and eight 4x4s – received enhanced option packages for 2013, including a backup camera with its display integrated into the rear-view mirror. The Tundra is available with a choice of two drive trains, two engine sizes, three cab styles and three cargo bed lengths. Two Tundra models are available with 4.6-litre iForce V8 engines developing 310 peak hp and 327 lb.-ft. of torque. The others have a 5.7-litre iForce V8 that delivers up to 381 hp and 401 lb.-ft. of torque. Dual variable valve timing with intelligence, sequential multiport electronic fuel injection, electronic throttle control with intelligence and other engine management systems ensure maximum power and efficiency, says Toyota. All Tundra models feature a six-speed Super ECT automatic transmission with overdrive, sequential shift mode, tow/haul settings, lock-up torque converter, transmission cooler and automatic transmission fluid warmer. They also include an auto-limited-slip rear differential. Models with 4x4 drivetrains are equipped with one-touch four-wheeldrive and are equipped with underbody plates to protect the engine and transfer case from off-road hazards. Double wishbone front suspensions are enhanced with stabilizer bars, while rear suspensions feature heavyduty multi-leaf springs and bias-mounted gas shock absorbers. Each Tundra has eight airbags and are also equipped with the six active safety technologies of the company’s Star Safety System: Antilock Brake System, Brake Assist, Electronic Brake Force Distribution, Vehicle Stability Control, Active Traction Control and Smart Stop Technology. Standard-equipment comfort, convenience and utility features include an audio system with CD player and auxiliary input jack; air conditioning; cruise control; a 12-volt accessory power outlet; rear step bumper; removable, locking tailgate with easy lift and lower operation; a tow package with heavy-duty tow hitch receiver and pre-wiring for a trailer brake controller. cc Freelance writer Bill Roebuck is a voting member of the Automobile Journalists Association of Canada (AJAC).
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Image courtesy of Soler & Palau.
THE MECHANICAL ROOM
bathroom VENTILATION Fact and fiction Bathroom fans are not the most high-profile piece of equipment in a home. But if they are improperly sized, incorrectly installed or badly designed, they can create problems with indoor air quality and even the structural integrity of a house. By Glenn Curtis
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I
s that bathroom fan really doing what it was designed to do? Research performed by the CMHC (Canada Mortgage and Housing Corporation) has found that many homes have bathroom exhaust fans that are noisy, move very little air and are not energy efficient. Many homeowners are not even aware that their current bathroom fans may be contributing to damage in their homes. Bathroom exhaust fans are an important part of a home’s ventilation system. They eliminate
THE MECHANICAL ROOM
odours, improve indoor air quality, and remove moisture and humidity that can lead to structural damage or mildew and mould growth. Unless a bathroom is properly ventilated, the moisture from a shower has no place to go and can penetrate into drywall, attic insulation and structural joists. If a mirror is steamed after a shower, or there is a build-up of condensation on bathroom walls, it may be time to service or upgrade the bathroom fan. CHMC’s research shows that many bathroom fans across Canada should be replaced or serviced due to inadequate airflow, inability to overcome static pressure, high leakage rates and generally poor condition. Inadequate airflow was cited as the most common problem, with improper fan selection being among the causes. There are several factors to be considered when selecting a new or replacement bathroom fan: airflow rate, sound levels, energy efficiency, and aesthetics and fan control.
Airflow rate Of the factors listed above, the airflow rate is the most important. The Home Ventilating Institute (HVI) has provided guidelines for the proper ventilation of a bathroom. For bathrooms under 100 square feet, the basic rule is to exhaust a minimum of one cfm (cubic foot per minute) for every square foot of bathroom area. So an 8’ x 10’ bathroom, 80 square feet, would have a minimum airflow requirement of 80 cfm. For bathrooms over 100 square feet, the calculations are based not on square footage, but on the number and type of fixtures in the bathroom. An allowance of 50 cfm should be made for each standard toilet, bathtub and shower. Allow 100 cfm for whirlpools and hot tubs. For example, a bathroom with a hot tub, shower stall and toilet would require a minimum of 200 cfm (100 + 50 + 50). Once the required airflow in cfm has been determined, it is necessary to establish the amount of static pressure (SP), or resistance to airflow, in the
exhaust duct system. This has a significant influence on the amount of airflow the fan will deliver. Many bathroom exhaust systems have a static pressure of 0.3” to 0.5”, which must be taken into consideration when selecting a bathroom fan. When static pressure increases in an exhaust system, the amount of airflow, or cfm, decreases. Most bathroom fans sold today are marketed with cfm levels based on open-air conditions, or 0” SP. A fan rated for 100 cfm at 0” SP may not provide the necessary airflow for a bathroom when it is installed, because of high system resistance. It has been determined that some bathroom fans with an initial rating of 90 cfm at 0” SP provide no airflow at all when installed in a typical bathroom exhaust system having 0.5” of static pressure. To avoid this problem, it is important to know manufacturers’ published airflow rates at varying static pressures to allow for proper fan selection. Air make up is an important factor to consider when sizing a bathroom fan. Fans will only remove air from an area at the rate that the air can be replenished, regardless of the correct sizing or rated air flow. In many cases, the space between the bottom of the door and the floor is adequate, but in some cases an additional air make-up source must be installed to allow the fan to operate at peak performance, such as an additional grille installed in the bathroom door.
Sound level The second issue is the sound level of the bathroom fan. Various studies have shown that many people do not turn on their bathroom fans because they are too noisy. If the fans do not operate, they serve no useful purpose. When considering fan sound levels, it is important to check for the HVI rating. If a bathroom fan does not carry an HVI rating, there is a very good chance that the fan will be noisy. Recently there have been several proposed changes to local codes indicating that a bathroom fan installed should not
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THE MECHANICAL ROOM
have a sound rating higher than 1.5 sones (a sone is a scientific unit of perceived loudness). A quiet alternative to traditional bathroom fans is the remote mounted in-line ventilation fan. These fans are mounted in the attic, thereby removing the motor and fan assembly from within the bathroom itself, and provide quiet and effective exhaust ventilation to deal with most airflow requirements. By removing the fan assembly from the bathroom space and mounting it remotely, the possibility of the ultimate in quiet operation, virtually 0 sones, can be achieved (depending on how far away the fan is mounted).
Energy efficiency With energy savings being on everyone’s mind, choosing an Energy Star fan is, without question, the best choice. More than half of the fans operating in Canada today are not energy efficient models; in fact, some fans in operation today are using more than 180 watts of power. A retrofit of the bathroom fan can lead to savings in the electrical bill and increased performance of the bathroom fan.
Aesthetics Once a fan has been found that is quiet, energy efficient and delivers the required airflow, it is important to look at the esthetics of the fan, or how the fan will fit into the décor of the bathroom. This is strictly a personal choice. Two different styles of bathroom fans are worth considering: traditional ceiling mounted fans and remote mounted in-line fans. Traditional ceiling mounted fans are most commonly seen in bathrooms today. This type of fan has a fan and motor assembly mounted in the ceiling, housed in a box with a fixed air intake grille covering the mechanics of the fan. Although many of the newer designs have improved sound levels and airflow rates, they still have the motor and fan assembly mounted in the bathroom area, tend to be noisy, and are not designed to overcome the higher static pressures found in many exhaust systems.
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Remote mounted in-line ventilation fans provide a much quieter operation, and are designed to overcome higher static pressures typically found in bathroom exhaust systems. In-line bathroom fans are normally mounted in the attic space, removing the mechanical aspects of the fan from the bathroom. The only visible portion of the exhaust system in the bathroom is an attractive exhaust grille. This provides a more esthetically pleasing look to the bathroom, with the ability to adjust airflow as required. Another feature of remote mounted fans is that the air intake grille can be mounted directly over a shower or hot tub. In addition, the ability exists for one fan to exhaust air through multiple grilles. Remote mounted fans can provide up to 80% of initial fan rating, even with 0.5” of static pressure present in an exhaust system. This may result in the reduction in the size of fan required to meet airflow requirements.
Fan control The last point to consider when upgrading a bathroom ventilation system is how to control the fan. This is an important aspect of the ventilation process, and is something that should be strongly considered. CMHC and HVI both suggest that a bathroom fan run for a minimum of 20 minutes after a shower, to allow for the removal of excess humidity and moisture. Many bathroom installations have the fan controlled by the same switch as the light, resulting in the fan being turned off as soon as the occupant leaves the room. It is recommended that a separate switch control the fan or, better yet, a timer that allows the fan to run for a pre-determined amount of time after showering. There are many aspects to properly selecting the correct bathroom exhaust fan. Much of the information available today can be confusing. Whatever choice is made, it is important that the selection is based on fact, and not fiction. cc Glenn Curtis is the National Sales Manager at Soler & Palau and a member of HRAI’s IAQ Sector Council.
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WHAT DID THEY PAY?
Win me! The IRWIN 2550 box beam level. It’s accurate, rugged framed, and with a continuous edge for scribing complete and accurate lines anywhere. It includes Irwin’s Plumb Site feature, which provides dual viewing from awkward angles. Embedded earth magnets allow for hands-free use.
Email us with the cost of the job below & win a level. email spayne@canadiancontractor.ca
What did they pay? This rural home, near Uxbridge, Ont. was recently re-roofed with Tamko MetalWorks AstonWood steel shingles – covering a “25 year” asphalt shingle roof that, after only six years (!), was already beginning to curl.
METAL SHINGLE ROOF
Materials and labour: House and garage
See if you can estimate the cheque the owner paid for this new steel roof. (Please exclude taxes so that readers from different provinces can compete on a level playing field.) Actually, there are two roofs, as shown: the main house at 1,650 sq. ft., and then the adjacent 1 1/2 car garage at 250 sq. ft. Please note: (1) The existing asphalt roof is staying in place, so there are no disposal charges. (2) The two skylights exist. (3) The original venting is adequate. (4) The manufacturer (Tamko) recommends that the existing roof be covered with an underlayment (“No. 30 asphalt saturated organic felt”) and that snow guards (as shown, if you look closely at the middle photo) be installed. So, what do you think this roofing job cost the owner of the home? Email us your best estimate, and if you are one of the three closest to the cost, you will win the Irwin level set shown above.
Last month’s winners
1. Roger Birch 2. Enzo Enamoratti 3. Scott Duncan
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EMAIL YOUR ESTIMATE TO: spayne@canadiancontractor.ca Everyone that responds will get a subscription to our weekly e-newsletter, even if you don’t win the very cool Irwin level.
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