EVENTS
Autumn 2011 Continuing Education - Schedule your Professional Development Today! Space is limited, See Full Schedule and More... Page 16
NORTHERN KENTUCKY
Look for Important Info Inside.
www.HomeBuildersNKY.com www.youtube.com/HomeBuildersNKY www.twitter.com/HBANKY www.facebook.com/HBANKY
September 2011 2012 HBA Elections..................... 3 Member Updates......................... 4 Elk Creek Event............................ 6 EPA Lead Training......................... 7 Show Worth the Investment?...... 11 Tour of Remodeled Homes.......... 13 Contracts in a 2011 Economy..... 14 EBuilding Your Brand................. 17 Legal Corner............................... 18 SD1 Award Winners.................... 20 New HBA Marketplace................ 24 Remodeler’s Corner.................... 26 Calendar of Meetings & Events.. 27
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2011 Annual Elk Creek Shooting and Barbeque page 6
3168 CRESCENT AVENUE, ERLANGER, KY 41018 • www.RJINSULATIoN.Com
The mission of the Home Builders Association of Northern Kentucky is to promote and enhance the integrity and visibility of the construction industry and the members of the organization through advocacy, communication, education and political action. Northern Kentucky Builder™ is an official publication of the Home Builders Association of Northern Kentucky, 2751 Circleport Drive, Erlanger, Kentucky 41018. It is published in the interest of the Northern Kentucky building industry and read by home builders, remodelers, general contractors, developers, engineers, bankers, Realtors,® architects, material dealers, subcontractors and manufacturers. All rights reserved. Copying or reproduction without the expressed permission of the Home Builders Association of Northern Kentucky is strictly prohibited. Northern Kentucky Builder™ is designed by Jason Yann Creative Studios phone 859.331.9500 or fax 859.578.3393 email homebuilders@hbanky.com 2011 Board of Directors Bob Schroder, President Bill Butt, Vice President Adam Chaney, Treasurer James Kegley, Secretary Barbara Drees Jones, Board Chair Tony Berling Marty Grosser Dan Martin Chris Wulfeck Jason Yeager Associate Council Representative Mark Hubbard Roberta Tanno Desiree Webster Diana DeVore Land Development Council Representative Joseph Kramer Sales & Marketing Council Representative Jeremy Arrasmith Women’s Community Action Council Representative Cindy Goetz HBA Staff Brian A. Miller, Executive Vice President Janis Beard, Membership Director Jessica Gibbs, Director of Shows & Events Karen Lefebvre, Administrative Coordinator Kirk Pies, Sales & Marketing Director Shelli Slusher, Accounting Coordinator Thomas Napier, Director of Professional Development The Home Builders Association of Northern Kentucky is open to the world, visit our web site for up-to-date information on HBA services and programs, including extensive public referral directory to Registered Builders, Registered Remodelers and Associate Members.
www.HomeBuildersNKY.com
2012 Elections Scheduled for October 3-7 You know fall is just around the corner when it’s time for the HBA Board of Directors and Associate Council Board of Governors elections. Once again, each candidate will have their own You Tube video for your review and vote. The primary contact of each company will receive an e-mail linked to the videos along with a ballot for voting. Only one vote per company can be cast. If you are not the primary contact of your company, but you are the one involved in the HBA, please let that primary contact know that the e-mail will arrive on October 3rd and have them send it to you to vote. Ballots can also be cast at the HBA Office during the week of October 3-7. The Associates Council Board of Governors Nominating Committee has confirmed the following Associates for three open positions for a three year term.
Anita Kosco Viamedia
Bryan Martin Carter Lumber
Patrick Townsend Patrick’s Custom Hardwood Flooring, Inc.
Ginger Walters, Incumbent, Nielson & Sherry, PSC The Builder Nominating Committee has confirmed the following candidates for three open positions on the Board of Directors for a two year term.
Rob Adams S. L. Williams Homes, Inc.
RJ Brunner RJ Homes, LLC
Adam Miller Adam Miller Homes
Tom Spille Spille Builders & Developers
New Members
MISSING IN ACTION
Welcome! We are truly happy to have your support and membership! Addison Trucking Ken Addison 57 E. Harrison North Bend, Ohio 45052 (513) 616-1548 Business: Hauling Sand & Gravel Sponsor: Rob Stone
These companies are missing the action at the Home Builders Association. HBA members enjoy discounts on worker’s compensation, health insurance and disability insurance. All current HBA members are posted on the www.homebuildersnky.com website. Members are eligible to advertise in BUILDER magazine and Who’s Who Membership Directory. If you do business with any of the listed missing members, please encourage them to get back in the action at the HBA! A & K Tile Verizon Wireless DRB Services Whirlpool Corporation Davidson Communications Wissman Brothers Dyke Industries Young Construction G & M Custom Gutters Handyman Connection Interior Design Consulting Kelly James Painting Kiser Construction Welcome Back! Lopez Construction Bob McManus Woodworking We are truly happy to have your support and Naturally Unique membership. The following companies are once Doug Robertson Plumbing again members of HBANKY. Schreiber Decorating Gene Ray Stivers Franzen Electric
Central Ready Mix Marty Petroze 550S. Main Street Monroe, Ohio 45050 (513) 402-5001 Business: Concrete Producer Sponsor: Joe Halpin Stonehouse Building Products Kevin Sorrell 8025 Bluegrass Drive Florence, Kentucky 41042 (859) 980-1040 Business: Countertops
NEW MEMBER PROFILES Frank Davidson Company: Concrete Concepts of the Tri-State Position: Owner Community I live in: Fort Thomas, Kentucky My favorite thing to do when I’m not working is: Spend time with my family My reason for belonging to the HBA of Northern Kentucky: Networking Something unique about my company is: We specialize in decorative concrete resurfacing and restoration. Award winning customer service free of charge.
Dennis Whitford Company: Whitford Contracting Services, Inc. Position: Owner Community I live in: Independence, Kentucky My favorite thing to do when I’m not working is: Coaching and hanging with my wife and kids My reason for belonging to the HBA of Northern Kentucky: Networking Something unique about my company is: I treat every job like it was/is my own property!
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Northern Kentucky BUILDER
National Association of Home Builders
Put your membership to work now. Money-saving discounts that benefit your business, your employees, and your family
www.nahb.org/MA
Northern Kentucky BUILDER
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Elk Creek Sporting Clay
Shoot & BBQ Elk Creek Hunt Club in Owenton, KY Friday, September 23 @ 11 am The Event includes Sporting Clay Shoot, Lunch, Dinner, Wine Tasting and Winery Tour. $500 – Foundation Team Includes One Team of 4 Shooters, Dewey Newport Apprenticeship Scholarship Donation, Special Recognition at Event and Builder Magazine $340 – Classic Team Includes One Team of 4 Shooters $85 – Individual Shooter Includes (1) Shooter, Lunch, Dinner, Wine Tasting and Winery Tour $35 – Individual Non-Shooter (*Sit back, Relax, Network, and Shoot the Breeze!*) Dewey Newport Associates Council Apprenticeship Scholarship Raffle
Raffle includes: $250 Elk Creek Winery Gift Certificate • $10 off any additional purchases at the Winery Wine tasting for 8 with a cheese and cracker tray and glass of wine • Sporting Clay Shoot for 4 people with cart Raffle tickets are $5.00 - Purchase your raffle tickets from any Associates Council Board of Governors member, HBA Office, or at the Elk Creek Outing.
Let’s Go Shoot Some Guns and Drink Some Wine! Wine Tasting Sponsor
Awards Sponsor
Event Sponsored by Beverage Sponsor
Lunch Sponsor
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Dinner Sponsors
Northern Kentucky BUILDER
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Skid Steer Loaders Compact Track Loaders Compact Excavators Compact Wheel Loaders Worksite Pro Attachments Sales and Service Limestone Farm Lawn Worksite has a long standing reputation for surpassing customer expectations. Customer value and satisfaction are our number one priority. Give us a call today and let us see how we can meet your equipment needs. Proud Member Of The Northern Kentucky Home Builders Association
www.skidsteersmackdown.com
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Northern Kentucky BUILDER
First Security Trust Bank is, once again, a proud sponsor of this year’s Tour of Remodeled Homes. Congratulations to all 2011 remodelers on a job well done. And thank you to the HBA of Northern Kentucky for your long-time commitment to highlighting many of our area’s most beautiful homes.
For more information about FSTB’s Mortgage Loans, Home Equity Loans or Personal Banking services, call 859/746-9000 or visit us online at www.fstb.com.
Banking Made Simple
Important Dates To Remember
September 1st Orientation for 1st Year Students September 6th First night of class for 1st Year Students September 7th First night of class for returning students First Quarter ends October 19th
Northern Kentucky BUILDER
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What’s New with Pella
Pella Impervia Dual-Color Option NOW AVAILABLE! Neither wind nor rain nor sleet or snow stops determined mail carriers. Nor do those elements and other climate extremes phase Pella Corporation’s energy-efficient Pella Impervia line, expanding in the Summer of 2011 to include White interior option for all units. Pella Impervia windows and patio doors offer more style and design flexibility for your customers. With the new dual-color option, Pella Impervia products can have a White interior with the choice of White, Tan or Brown exterior. Pella Impervia windows and patio doors arrive pre-finished with a powder-coat paint finish on both interior and exterior. This durable finish stays looking great for years with little care.
“We’re pleased to offer more innovative solutions to builders and homeowners living in areas where a stronger, more durable window is a must,” said Duane Putz, director of sales and marketing for Pella Impervia. “This product is made for hot, cold, wet or windy climates and now it’s available in more styles.” Pella Impervia can withstand the forces of Mother Nature without cracking, shrinking or warping in extreme weather conditions. The sleek-profiled innovative products made from Duracast®, the strongest most durable material in windows and doors, are virtually maintenancefree and well-suited to today’s busy lifestyles and balanced budgets for home and business owners.* Builders, remodelers and homeowners may choose from convenient factory prefinished brown, white or tan color options and now have a White interior!
For more information, please contact your local Pella representative or call 513-936-5240.
SAVE THE DATE! Finishing Touches are in Progress…
Be on the tour Saturday & Sunday October 1st & 2nd and tour kitchens, outdoor living areas, bathrooms & more from 12 noon – 5 p.m. Tickets On Sale September 18th at local Kroger locations for only $4 or purchase for $5 at Tour entry locations! Check out the Tour editorial in the Fall issue of Cincy Magazine.*Be sure to pick up your Show Guide in select Kroger locations throughout Greater Cincinnati and NKY!
Thank you to our Sponsors
2011
Let us show you how the little changes add up.
www.owenelectric.com 502-484-3471
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Northern Kentucky BUILDER
Is the HBA “Tour of Remodeled Homes Show” worth the investment? When asked to put a value on our participation in the Tour of Remodeled Homes (TORH), I have a hard time coming up with an exact dollar amount. Sure we have received numerous leads and have directly sold projects as a result of the TORH, but we look beyond that when placing a value on the weekend event. As a professional remodeler no other event provides our company with the qualified exposure as the TORH. Unlike a builder, remodelers don’t have a model home to bring customers through to experience their quality and attention to detail. Therefore, the thousands of patrons that have walked through a Cornerstone Craftsmen TORH project over the past 7 years have helped us to invaluably develop our brand of quality craftsmanship. Not every homeowner is ready to “pull the trigger” when they walk through our doors, but over the years we have received value by developing a brand consistency that has driven homeowners in our direction. Probably the most difficult part of the TORH is convincing the homeowner to let us use their home for the weekend. However, most customers love to show off their new living space and when you combine that with the discounts /upgrades associated with TORH involvement, they usually are happy to do it. The rest is easy as the HBA provides unbelievable exposure and coordination of the event. Cornerstone Craftsmen will not miss a TORH and we highly recommend all remodelers participate. The more this show grows, the more we can elevate the profession of Residential Remodeling.
Chris Wulfeck Chris Wulfeck Cornerstone Group
Northern Kentucky BUILDER
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WE FOCUS ON THE INSURANCE AND FINANCIAL NEEDS OF YOUR BUILDING INDUSTRY LLH has been providing insurance and financial services to Kentucky’s building industry for over 50 years. Today, with all the challenges your business faces, it’s a good time to talk with us to create a plan that will put your company’s insurance, benefits and wealth management programs in order.
www.LLHins.com
Endorsed By
toll free (888) 499-6880 find us on
Forward Thinking
Since 1946, VonLehman has been a forward-thinking CPA and advisory firm – grounded in reality but focused on the future. True to our long-standing commitment to building a stronger region, we have unrivaled expertise in construction and real estate development. VonLehman builds partnerships with its clients within the construction sector. We understand the ups and downs of the industry, and assist our clients in building a healthy bottom-line in every scenario, every economy. VonLehman, moving forward with you. VonLehman & Company Inc.
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vlcpa.com
Cincinnati, OH 513.891.5911
Northern Kentucky 859.331.3300
Huge Thank You to Our 2011 Project Entry Sponsors Be on the tour Saturday & Sunday October 1st & 2nd and tour kitchens, outdoor living areas, bathrooms & more from 12 noon – 5 p.m. Tickets On Sale September 18th at local Kroger locations for only $4 or purchase for $5 at Tour entry locations!
Contracts in a 2011 Economy
W
hat’s included in a good contract in today’s recovery economy, in today’s regional Construction environment? With careful negotiation, there could be more profit, fewer expenses and fewer headaches in your next contract. At one time or another, every contractor, whether a general contractor or subcontractor, sits on both sides of a construction contract. The general contractor will have a contract with the owner of the project as well as contracts with his subcontractors. The subcontractor will have a contract with the general contractor on the job as well as possibly with his own subcontractors and suppliers. All contracts are different and should be entered into only after careful forethought and maybe even the involvement of your attorney. The following are just a few tips that may allow you to negotiate your contracts in such a way as to enhance your profits and cash flow, reduce your expenses and keep future headaches down to a minimum.
The Profits Virtually every construction contract calls for some type of contract retainage. Although ten percent retainage seems to be the most common percentage used, it is possible through negotiation to get that percentage reduced to as low as five percent. Whatever the retainage negotiated into your contract, if you have subcontractors or suppliers working for you on this contract, the amount that you retain from their billings should be at least equal to the amount being retained from your billings. If retainage is to be held throughout the warranty period, negotiate into your contract the ability to substitute other collateral (i.e., a maintenance bond) for your retainage. In addition, you may be able to negotiate some type of interest income to be added to your retainage. Change orders are another facet of most contracts, whether they be for additional units being supplied at a pre-specified price or changes and additions to the original plans. The most important aspect of the change orders that must be in every contract are the procedures that are involved in having change orders approved and subsequently paid for. In the best possible case, all change orders would be negotiated and approved before the work is started. A less attractive possibility would be to make sure the change order is approved prior to the completion of the work involved in the change. The absolute worst case scenario that should always be avoided, is to complete the work required by the change order prior to having the change order priced and approved by the general contractor or the job owner. Unfortunately, this happens all too often and many contractors get short-changed on the final outcome because of a lack of negotiating leverage at this point. A third contract feature that can affect a job’s 14
Northern Kentucky BUILDER
Ted Funk, CPA, CVA, AVB, Shareholder VonLehman
profitability -- especially in today’s economy -- is the ability to re-determine the price of the contract after a specified interval of time has passed. This would be very important in the case where the job involves the use of a commodity (metals, for instance, like copper) which is subject to very volatile price changes or where the contractor’s costs increase due to unreasonable delays totally outside of his control. Your profits will be protected only if you negotiate into your contract the ability to re-determine your contract price based upon rising prices or delays. The Expenses By carefully preparing the bid and negotiating the payment terms, contractors can enable themselves to avoid helping the owner and/or the general contractor finance the project. The pricing of the bid should be prepared so that draws on the contract will be enough as the contract goes along to ensure that the amount drawn always exceeds the amount of costs and retainage incurred to that point. One example of this would be to negotiate into the contract that materials can be billed when delivered to the site rather than when installed on the project. Another popular contract provision that should be avoided is the “pay when paid” provision. If at all possible, you should insist that you be paid within a specified number of days from the submission of your invoice. If not possible, and you are force to accept the “pay when paid” provision, you need to make sure of two things: • Make sure that in your contracts with your subcontractors and suppliers you negotiate a “pay when paid” clause. • Make yourself aware of the laws in your state regarding your rights to receive payment after the general has been paid. Both Ohio and Kentucky have laws protecting the subcontractor in this situation. It is also important to remember here that any liens need to be filed within a certain number of days from completion of your work, regardless of when you expect payment. By protecting yourself in these two areas, you can minimize the amount of bank financing you will need as the project goes along. This, in turn, will reduce your interest expense on the financing. Many contracts also contain penalty provisions for delays. The important points to remember here are two-fold: • Make sure that any penalties will not be incurred if delays are due to circumstances beyond human control, such as weather, wars, riots, and acts of God. • Since you will be held responsible for delays caused by your subcontractors and/or your suppliers, similar type penalty provisions need to be negotiated into those contracts to protect you in that event.
The Headaches When negotiating a cost-plus type contract, it is extremely important to negotiate up front exactly what is defined as “cost.” There are items that are generally recognized as costs to be reimbursed. However, if the contract does not clearly define these costs, there can be serious problems when billings are rendered. Other items that should be negotiated into the contract to avoid future misunderstandings are changed conditions, claims, arbitration and warranties. An example of changed conditions could be the finding of substrata rock or underground water in an excavation contract. In this case, the contract cost will certainly increase and without a “changed conditions” provision in the contract, the contract amount may not be able to be increased to cover those additional costs. Many times, even though the contract seems very clear when it is entered into, disputes arise during the project. For this reason, we recommend that the procedure for filing claims and settling claims be outlined very specifically in the contract. Because claims and disputes resolved through litigation can take a great deal of time and be very expensive, many contracts will contain an arbitration clause. This type of clause calls for an independent person or group of persons to hear the dispute and to make a decision and award that would be legally binding on the parties without the right of appeal. This usually results in faster settlement of claims at less cost, time and inconvenience to both parties. The contractor is generally required by contract to warrant that the work is done free of defects in material and workmanship for a period of one year from completion. While the contractor warrants his own work to be free from defects, he does not warrant against failures that may occur prematurely due to design deficiencies. This area must be very clearly defined in the contract to avoid later disputes. Conclusion Construction contracts can be very complex and detailed. We have covered only a small part of the entire topic. Standard contracts, as well as special contracts, should be written carefully and reviewed by your business advisors. A poorly negotiated contract can often turn a good, profitable job into a disaster, especially in today’s economy. There are many ways to protect yourself from this, but only if negotiated prior to signing the contract. Once a contract is signed, it may be too late! Ted Funk is a CPA and Shareholder at VonLehman’s Fort Mitchell office. To learn more about Ted Funk, see http://www.vlcpa.com/ about/leadership/ted-j-funk. To learn more about VonLehman, see http://www.vlcpa.com
TIME TO
Market ON THE CALENDAR
February 10–12, 2012 at the northern Kentucky convention center
Booth/Prices
Member
Local Non-Member
National and Direct Sales
10’x10’ In-Line
$795
$1,100
$1,250
10’x10’ Corner
$850
$1,250
$1,400
10’x10’ Dream Street End Cap
Dream Street sponsorships available. Call for more details!
10’x20’ End Cap
$1,750
$2,200
$2,350
10’x10’ Lobby
$1,000
$1,400
N/A
15’x30’ Dream Garage
Dream Garage sponsorships available. Call for more details!
Booth Fees Include 20 show tickets for guests * In need of more…? *Call Jessica at 859.331.9500 x14 for more details General Lighting bays, lifts, and dolly equipment - (some fees may apply) Security guard (24 hours a day) Company listing on official show program , website & Facebook exhIBItor need to Know tIps • All booths MUST have a hard or soft backdrop • Floor covering is required • All booths must be manned at all times
plAnnIng puposes onlY, ABoVe Is the 2011 FloorplAn
reserVe Your spAce todAY!
Contact Jessica Gibbs, Director of Shows & Events
for more information on exhibit space, advertising in the official guide and sponsorship opportunities. 859.331.9500 or email jessicag@hbanky.com
Listen to past exhibitors speak about the show and get up to date info {www.facebook.com/homeshowcase}
Spotlight On Presenters for Autumn
2011 B
eck Safety Consulting was formed in December 2005. Its’ principal focus initially was safety compliance and teaching for clients in the construction, manufacturing, and mining industries. Jim now teaches at the Eastern Kentucky University OSHA Training Institute on a part time basis in addition to outside client instruction. At the OTI Center, Jim instructs the Train the Trainer courses for students, as well as teaching all OSHA numbered classes. Jim also teaches safety courses on an as needed basis for MaysvilleCommunity College. On February 22, 2010 Beck Safety Consulting, LLC became an accredited training provider for the new RRP Lead Rule. Since then, partnerships have been formed with WVU at Parkersburg, WV, plus several other state community colleges in eleven different states where BSC instructors travel to teach the lead courses. Classes consistently receive high marks by attendees. June 2011 marked 41 years of experience in the construction industry in various levels of worker and management, and 28 years teaching in adult environments. Beck Safety will be at HBA Northern Kentucky on October 11th, November 7th, December 14th to present the required Safe Lead Removal Classes. All classes begin at 8:00 am. Check the HBA website under the Continuing Education tab for more information.
Autumn 2011 Continuing Education Schedule your Professional Development Today! Space is limited!
September September 23 Work Zone Safety Training * 11 am - 1 pm September 27 A Discussion of Legal Issues for Builders and Remodelers 10 am - 12 pm September 29 “Moisture and Air Barrier Solutions” by Enviro Dri 12 pm - 2 pm
October October 5
Tim Shepelak Presents “Improving your Business and Life” 11 am - 1 pm
October 12
Art Reed presents “Selling Homes in the Latino Community” 9 - 11 am
October 13
Insulated Concrete Forms for Green Builders & Remodelers 10 am - 12 pm
October 14
Concrete and Masonry Construction Safety* 3 pm - 5 pm
October 18
Electrical Safety* 9 am - 11 am
October 20
Effective Business Writing 1 pm - 3 pm
October 25
“Closing the Deal”, Selling Yourself and your Business 10 am - 12 pm
October 26-27 OSHA Workplace Safety 12 pm - 5 pm on both days October 31
Work Zone Safety Training* 11 am - 1 pm
November November 2
Tim Shepelak Presents “Improving your Business and Life” 11 am - 1 pm
November 9
Accident Investigation for Supervisors* 9 am - 11 am
November 9
Practical CAPS Applications for Builders and Remodelers 2 - 4 pm
November 10 Bookkeeping for the small business professional 1 pm - 3 pm November 14 “Closing the Deal”, Selling Yourself and your Business 2 pm - 4 pm November 15 Part 1 OSHA Workplace Safety November 16 Green Building Trends for 2012 10 am - 12 pm November 17 Part 2 OSHA Safety 9 am - 2 pm November 21 Concrete and Masonry Construction Safety* 3 pm - 5 pm November 22 Beginning Quickbooks 1 pm - 4 pm November 29 Estimation and Takeoff 2 pm - 4 pm November 30 Effective Business Writing 10 am - 12 pm
December December 1
Advanced Estimation and Matrixes for Businesses 1 pm - 3pm
December 6 Green Building and Remodeling Trends for 2012 10 am - 12 pm December 7
Bookkeeping for the Small Business Professional 2 pm - 4 pm
December 12 Electrical Safety* 9 am - 11 am * Indicates Safety Classes that fulfill AGC requirements for 2011 and 2 hours of Safety C.E. required for all Registered Builders and Registered Remodelers.
Call (859) 331-9500 to register for a class or visit www.hbanky.com 16
Northern Kentucky BUILDER
Business • Bonds • Personal • Life • Health
P.O Box 6085 • 8620 U.S. 42 Florence, KY 41022 Office (859) 384-5200 Fax (859) 384-5207 www.ckash.com
Reis Concrete Products, Inc. Ready Mix • Concrete Septic Tanks
9522 Alexandria Pike Alexandria, KY 859-635-4157
Rt. 2 269 AA US 27 Falmouth, KY 859-654-6400
Email: concrete02@fuse.net • Fax: 859-635-REIS
JOIN US AT THE
MEMBER MIX & MINGLE on Thursday, September 15th 5:30 – 8:00 p.m.
FORGE LUMBER 39 Montgomery Road • Erlanger, Kentucky Forge Lumber looks forward to everyone visiting our Erlanger facility. In addition to meeting new (and old) members of HBA, you will be able to see our display rooms of windows, doors, decking and many other products; our sister company Sims Lohman’s display of fine granite tops and cabinetry. Experience a behind the scene tour of our large mill in full operation, hanging door units, manufacturing stairs, and creating many other millwork items. Come early to enjoy the facility, our guests, food and drink! Reservations required by Tuesday, September 13. Call (859) 331-9500 or e-mail karenl@hbanky.com
Business Builders: Building Your Own Brand
A
s you chart your company’s path out from the economic challenges of the past few years, it might be a great time to reassess one of business’ fundamental building blocks: your brand identity. It is arguably one of your company’s most precious assets in the on-going battle for success. When properly defined and promoted, your brand can help create a point of difference from among your competitors. This is especially valuable for businesses operating within a crowded industry, such as the one in which builders compete. A well-defined identity will help you not only stand out among the crowd, but will also provide you with a better platform from which to build customer relationships and sales. Consider the following few strategies for updating or building your brand for future success: Do a Little Research The best place to start is by getting a better understanding of how your business is perceived by others. Although you might believe you have a pretty clear idea of where you stand within the marketplace, a lot of value can be gained by soliciting an outsider’s perspective. Approach those who are most familiar with your business, including customers, suppliers, and even employees. Ask them what they feel are the unique aspects of your company, encouraging them to share both the good and the bad. For customers the most obvious question to ask: Why did you pick us over everyone else? Through these conversations you’ll be better able to gauge if other people’s perceptions are in sync with what you believe your brand and value proposition to be. Be prepared for an outcome that may be different than expected! The objective is to ultimately gain a better sense of what customers truly need, so that you can better align your service and products to more effectively satisfy them. Identify Your Point of Difference Use the knowledge gained through your research to help construct a short and concise description of your business, attempting to the best of your ability to capture on paper the true essence of your brand. Highlight those elements that not only make you stand apart from your competitors, but also are points of difference that are meaningful to your existing and prospective customers. This certainly doesn’t begin and end with the finished construction. You’ll need to consider all of the interactions you have with the customer throughout the entire process, including post-construction. Once you’ve identified these areas of difference, you’ll be able to accent the more fully…leading to a more positive and memorable experience by your customer. Be Consistent in All Things Candidates for political office are often advised by their campaign managers to “stay on point” in order to best represent who they are and what they have to say. In the same fashion you too must continuously strive to be consistent and focused in all things related to your brand. Remember that everything you do and say as a business person needs to uphold the brand, whether it’s dealing with local vendors and employees, speaking with press or community representatives, or approaching existing or new customers. View each of these as opportunities that can reinforce your brand’s point of difference, allowing you to bring to life the brand in a meaningful way to those who you seek to influence the most. Be forever on the lookout for new avenues through which to express your brand’s identity, above and beyond any advertising and marketing activities. Your brand’s presence should be consistently portrayed across all touch points of your business, from the employees you hire and the way they present themselves, to the look of your office and support vehicles. Everything should have a common thread running through it, born from and expressive of your brand. Take advantage of every opportunity to express what your brand is all about, be consistent in how you portray it, and you’ll build a stronger brand and a more vibrant business. Northern Kentucky BUILDER
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LEGAL CORNER
Kentucky’s “Fairness in Construction Act” Helpful, or Hurtful? Written by Joe Cleves, Dressman, Benzinger & LaVelle
K
entucky’s “Fairness in Construction Act,” signed into law in 2007, is intended to benefit construction contractors performing work in Kentucky. The Act renders void several contractor-adverse construction contract clauses and includes provisions that will help contractors collect fair and timely payment for services rendered. The Act is designed to help level the playing field between contractors and owners in three notable ways: First, certain contract clauses are now considered to be void and unenforceable as against Kentucky public policy. Specifically, Kentucky courts will no longer recognize clauses in contracts for construction that waive a contractor’s right to litigate a claim, except for those clauses which substitute litigation with binding arbitration. Kentucky also no longer recognizes clauses in construction contracts that waive a contractor’s right to file a lien against a project with the limited exception of partial waivers included in progress payment applications. Furthermore, “no damage for delay” clauses, which limit a contractor’s entitlement to either money damages or additional time for delays caused by the owner, are no longer enforceable either. Secondly, the Act requires owners to promptly pay contractors for services rendered. Under the Act, all balances due to a contractor, except retainage, must be paid within 30 business days after receipt of a “timely, properly completed, undisputed request for payment.” Failure to make payment under the Act renders the owner liable for 12% statutory interest beginning on the 31st day after the request for payment is received. However, The Fairness in Construction Act also requires contractors to provide the owner with a certified letter on the 25th business day stating the balance due and the date that interest will begin to accrue. Additionally, like owners, contractors must pay their subcontractors within fifteen business days of receipt of payment from the owner or be liable for 12% interest on the withheld balances. Finally, the Act further benefits contractors by limiting the amount of retainage that can rightfully be withheld. If contract work is less than 50% complete, no more than 10% of the contract value can be retained. If the work is 50% complete (or greater), then no more than 5% of the contract value can be retained. When the construction project has been “Substantially Completed,” the balance of the contract must be released in full, less 200% of work that, per the owners estimation, remains incomplete. The Act describes “Substantial Completion” as occurring after: (a) necessary approval by public authorities has been given; (b) the owner received all required warranties and documentation; and (c) the owner may occupy the project and use it for its intended purpose. The Fairness in Construction Act also provides that reasonable attorneys’ fees for bad faith violations of the Act are recoverable. Certainly, the Kentucky Fairness in Construction Act was designed to help contractors negotiate a more “fair” deal with project owners. However, it actually may do more to insert tension and confusion into a construction project’s negotiation and building processes than it does to help level the parties’ bargaining positions. The disadvantages of the Act become especially apparent when an owner wishes to complete a project using Integrated Project Delivery (“IPD”): an emerging contractual regime where owners, designers/engineers, and contractors work together as a team to deliver a construction project quickly and at a low cost. Under the Fairness in Construction Act, the owner of a project would be unable to facilitate the cooperative culture required of an IPD team if waivers of the right to sue fellow team members are void as against Kentucky public policy. It is clear that The Fairness in Construction Act works to prohibit construction professionals from contractually waiving their rights to sue each other – a waiver that is necessary in order to truly embrace a collaborative framework. Instead, the Kentucky legislature should embrace and encourage such waivers so long as they are well thought-out and not the product of fraud, duress, or overreaching. When it comes to the construction industry, instead of encouraging lawsuits, Kentucky should encourage collaboration, teamwork, and dispute resolution that occurs outside of the courthouse. 18
Northern Kentucky BUILDER
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Kentucky Federal Savings & Loan
Arlinghaus Builders, LLC
Kentucky FluidAir, Inc.
Ash Insurance, C.K.
Krebs Construction, Inc.
Barnes, Denning & Co., Ltd
L & N Federal Credit Union
Bluegrass Diesel Specialists, Inc.
Logan Lavelle Hunt Insurance Agency
Bray Trucking, Inc.
Lonkard Construction
Cutter Construction, Inc.
M & W Excavation Co., Inc.
Dapper Company
Moellering Industries
Drees Company
Morris Heating & Cooling, LLC
Dudley Construction Co. Inc.
Pella Windows & Doors
Ernst Concrete
Quinn Electric
Erpenbeck Consulting Engineers, Inc.
Rechtin Heating & Air Cond. Co., Tom
Fischer Homes
Reis Concrete Products, Inc.
Florence Nursery & Landscaping
Thelen Associates, Inc.
Florida Tile, Inc.
Tri-City Insurance Service Inc.
Forge Lumber, LLC
Viking Supply, Inc.
Freedom Building Products, Inc.
VonLehman & Company Inc.
Fulcher-Rankin Insurance
Wiseway Supply
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HBA Partner Announcement
The HBA is proud to announce our new partnership with Cru Cutters Lawn Care to maintain the grounds and landscaping here at the main office!!! A huge thank you goes out to Chris Cook at Cru Cutters for taking this job on.
Northern Kentucky BUILDER
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12
SD1 Award Winners Developer Excellence Award-Chuck Heilman, Sanitation District 1 Board President presents the 2011 Developer Excellence Award to Dillon Houk of Ryan Homes. The award, presented at the July Land Development Council Luncheon, is given each year to a developer who has shown outstanding Storm Water Management. Other developer nominees included Drees Company and Paul Hemmer Companies.
Contractor Excellence Award-Chuck Heilman, SD1 Board President presents the 2011 Contractor Excellence Award to Ron DiFuria, Dudley Construction. The award was presented at the July Land Development Council Luncheon for outstanding Storm Water Management by Dudley Construction. Other Contractor nominees included GM Pipeline and Paul Michels and Sons.
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Erlanger 2930 Crescent Springs Rd. Erlanger, KY 41018 P: (859) 341-9111
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Caulks Decorative Concrete Supplies Decorative Concrete Stamps Masonry Supplies
Lexington 970 New Circle Rd. Lexington, KY 40511 P: (859) 254-9111
Dayton 800 East 1st St. Dayton, OH 45402 P: (937) 866-9111
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Target local consumers actively seeking homes. Enquirer Media delivers the most audiences and advertising solutions to help your business grow. With The Enquirer, Cincinnati.Com, and HomeFinder.com, we reach more than a million people - 83% of our market - each week.1 Reach your best customers - more than 144,000 local home buyers - with Enquirer Media.2 Our portfolio of media vehicles empowers you to reach 86% of local home buyers 4.5 times a week.3 Continuously evolving and developing strategic partnerships to make our advertisers successful, we are excited to grow our portfolio of solutions by now partnering with Yahoo!.
With this partnership, Enquirer Media and Yahoo! increase your visibility by ensuring your listings are seen by the most qualified buyers on the highly trafficked Yahoo! network. Your message is strategically placed in front of consumers who are actively looking for real estate news and information, including other home buying sites, real estate agencies and more – increasing your opportunities to connect with home buyers and sellers online.
Find out how we can make media work for you. Visit EnquirerMedia.com/Yahoo or contact your enquirer media Account Executive today. You can also contact Stephanie Cooper at 513.768.8196 or scooper@enquirer.com.
sources: 1-3 scarborough market study, 2008; yahoo! Proprietary and Confidential. Š2010 All Rights Reserved
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New HBA Marketplace Vendor / Supplier Deals and Coupons for the Month
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859.331.9500
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REMODELER’S CORNER show guide distribution. The tickets will be discounted to $4 for purchase at area Kroger stores. We are very excited that Cincy Magazine will be promoting the tour and publishing the TORH show guide. It looks to be another exciting TORH with so many entries this year. If you have any questions about the TORH, please call the HBA office. See you on Tour!
REMODELER’S COUNCIL WHAT’S HAPPENING??
By Darlene Bossert, CKD, Stone Statements, Inc.
Quote of the Day: “Hope sees the invisible, feels the intangible and achieves the impossible.” Anonymous
Tour of Remodeled Homes: As of July 8, there were15 entries for the TORH. When you receive this magazine, the deadline will have passed for entries and we may have even more. The locations of the projects are: 1 – Bellevue, 1 – Villa Hills, 1 – Burlington, 1 – Cincinnati, OH, 1 – Crestview Hills, 1 – Mason, OH, 1 – Edgewood, 1 – Montgomery , OH, 4 – Ft. Thomas, 2 – Wyoming, OH, 1 – Lakeside Park We will be charging $5 admission for the TORH again this year and we are happy to announce that we are partnering with Kroger for ticket sales and
Northern Kentucky Building Permits SINGLE FAMILY
JUNE ‘11
#
MODULAR HOMES
#
MULTI FAMILY
#
CONDOS
#
COMMERCIAL
#
COMMERCIAL REMODELING
#
RESIDENTIAL REMODELING
8
$1,151,136
1
$534,816
42
$2,918,063
77
$1,068,766
15
$950,000
13
$17,251,600
33
$610,470
26
$2,323,950
37
$726,779
BOONE
22
$3,058,199
CAMPBELL
10
$1,889,666
KENTON
16
$2,388,253
GRANT
2
$440,000
2
$212,628
4
$40,900
2
$265,000
1
$46,000
8
$305,200
52
$8,041,118
2
$70,000
8
$753,341
23
$2,101,136
2
$727,333
84
$22,752,241
159
$2,752,115
SINGLE FAMILY
#
MODULAR HOMES
#
MULTI FAMILY
#
CONDOS
#
COMMERCIAL
#
COMMERCIAL REMODELING
#
RESIDENTIAL REMODELING
1
$240,000
26
$8,739,962
51
$743,697
2
$70,000 8
$753,341
1
$192,517
CARROLLTON GALLATIN MASON OWEN TOTAL
JUNE ‘10
BOONE
37
$5,352,169
CAMPBELL
6
$1,456,250
10
$232,336
19
$381,380
KENTON
13
$1,774,184
23
$2,779,286
30
$711,540
GRANT
3
$701,000
5
$94,000
1
$187,697
1
$18,000
CARROLLTON GALLATIN MASON
4
$230,000
4
$230,000
1
$199,500
6
$106,000
OWEN TOTAL
60
$9,471,300
JAN-JUNE '10
440
$62,838,296
1
$59,000
16
$3,968,794
92
JAN-JUNE '11
326
$46,515,657
5
$251,000
96
$7,253,341
92
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Northern Kentucky BUILDER
1
$240,000
60
$11,951,084
112
$2,054,617
$7,625,280
16
$16,045,750
390
$62,085,558
472
$9,369,811
$8,868,957
10
$24,597,333
445
$88,078,303
619
$10,865,778
BUSINESS MEETINGS AT A GLANCE / call 331-9500 for reservations or to confirm dates
1
2
3
Remodelers’ Issues Committee Meeting, 12:00 - 1:00 pm, HBA
4
5
6
7
10
13
14
SMC Board of Governors, Noon, HBA
15
Membership/Retention Committee, 11:30 am, HBA
Executive Comm. Meeting, 1:30 pm – 3:30 pm
16
17
Board of Directors Meeting, 3:30 pm – 5:00 pm, HBA
september
12
9
Associates Council Board of Governors, Noon, HBA
LABOR DAY OFFICE CLOSED
11
8
SMC Board of Governors, Noon, HBA
Member Mix & Mingle, 5:30 PM - 8:00 PM, HBA
18
19
20
21 LDC Board of Governors,
23
22
LDC Council Roundtable, 12:00 - 1:30 pm, HBA
2nd Annual Elk Creek Sporting Clay Shoot, BBQ and Wine Tasting, 11:00 AM - 6:00 PM, Elk Creek Vineyard - Owenton
New Member Orientation, 12:00 PM - 1:00 PM, HBA
Safety Training Course, 11:00 AM - 1:00 PM, HBA
11:00am - 12:00 pm
Ambassador Club, Noon, HBA
26
25
27
28
State & Local Government Committee, 12:00 - 1:00 pm, HBA
sunday
2
tuesday 4
wednesday 5 Associates Council Board of Governors, Noon, HBA
9
10
11
12
SMC Board of Governors, Noon, HBA
17
18
24
25 State & Local Government Committee, 12:00 - 1:00 pm, HBA
30
friday
saturday
6
7
8
13
14
15
TORH Wrap-up Meeting, Remodelers Issues Committee, 12:00 - 1:00 pm, First Security Trust Bank Florence
Safety Training Course, 3:00 PM - 5:00 PM, HBA
20
21
LDC Board of Governors, 11:00am - 12:00 pm
22
SMC Board of Governors, Noon, HBA
LDC Council Roundtable, Joint Meeting of NKY HBA LDC and Cincinnati HBA OVDC, 12:00 - 1:30 pm, HBA
26 Ambassador Club, Noon, HBA
thursday
Membership/Retention Committee, 11:30 am, HBA
19 Safety Training Course, 9:00 AM - 11:00 AM, HBA
23
1
october
16
30
Membership Blitz, 8:00 AM - 4:00 PM, HBA
monday 3
29
24
28
27
29
Executive Comm. Meeting, 1:30 pm – 3:30 pm Board of Directors Meeting, 3:30 pm – 5:00 pm, HBA
31 Safety Training Course, 11:00 AM - 1:00 PM, HBA
Northern Kentucky BUILDER
27
2751 Circleport Drive Erlanger, Kentucky 41018
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