Contractor Advantage COMPLIMENTARY
C A N A D A’ S
January/February 2011
M A G A Z I N E
F O R
P R O F E S S I O N A L
C O N T R A C T O R S
Kitchen Communications PLUS: ACCOUNTING TIPS GREEN MATERIAL ADVANCEMENTS LUMBER TRENDS 2011 MILLWORK COUNTERTOPS
®
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The Hardest Working Team in the Building Industry ®
™ Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow
™ © 2008, VANOC.
January/February 2011 Vol. 17 No. 1
Contents ®
Castle Building Centres Group Ltd., with building supply outlets in every province, is Canada’s leading supplier of lumber and building materials to professional contractors, builders and renovators. Publications Mail Agreement #40006677 Return undeliverable Canadian Addresses to: 100 Milverton Drive, Suite 400 Mississauga, Ont. L5R 4H1
Editorial Director Castle Building Centres Group Ltd. Diane Jones Managing Editor Paul Barker Art Director Mark Ryan Contributors Nestor E. Arellano Mark Beckham David Chilton Lawrence Cummer Danita Johnson Hughes Joshua Kerbet Paul Rhodes John G. Smith Martin Vanderschouw Advertising Enquiries Vendors whose products are carried in Castle Building Centres stores have the opportunity to advertise in
Features Accounting for success / 20
If you get a little slack with your accounting, it might be a good thing to remember this: Canada Revenue Agency has bankrupted many businesses due to taxes owed.
Kitchen communications / 28 Paying close attention to a homeowner’s needs before the job begins could ultimately put more cash into your pocket.
Green shoots / 34
With the growing interest in greener products, we highlight 10 choices that could help to secure more of the business that will help your business grow.
Wood works / 40
Canada’s lumber industry may be struggling, but there is still plenty of good news for the fans of wood construction projects.
The skinny on trim / 46
M A G A Z I N E
F O R
P R O F E S S I O N A L
The low down on countertop care / 50
A gleaming countertop can be your calling card, therefore help your customers keep it in top shape.
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C O N T R A C T O R S
For more information or to reserve space in the next issue, contact: Diane Jones Advertising Manager, Phone: 905-564-3307 Fax: 905-564-6592 E-mail: djones@castle.ca Published and designed exclusively for Castle Building Centres Group Ltd. by Business Information Group Material Contact: Jessica Jubb 416-510-5194 Copyright 2010
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Millwork trends, like fashion styles, have ups and downs that contractors must follow.
Contractor Advantage C A N A D A’ S
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Departments NEWS WATCH / 5
VOC free paint + PPG insights + Vicwest acquisition + GreenBuild 2011
NEW PRODUCTS / 9
New and improved products
ONLINE MARKETING / 13
Stumped by internet marketing?
BUSINESS STRATEGIES / 14 SMART MONEY / 16
RRSP tips for 2010 tax year
ECONOMICS 101 / 18 LEARNING CURVE / 19 GREEN FRIENDLY / 26 CASTLECARE / 54
Good leadership takes courage
A project management primer Entrepreneurial advisers Tips and advice for the contractor professional
How to assemble a winning team CONTRACTOR ADVANTAGE
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WE DIDN’T CHOOSE BROWN, IT JUST CAME NATURALLY.
Knauf EcoBatt® Insulation doesn’t look like any insulation you’ve ever seen, but that’s because its natural brown color represents a level of sustainability we’ve never before achieved. The color comes from ECOSE® Technology, a revolutionary more sustainable binder born from five years of intensive research. Based on rapidly renewable bio-based materials rather than non-renewable petroleumbased chemicals, ECOSE Technology reduces binder embodied energy by up to 70%, and does not contain phenol, formaldehyde, acrylics or artificial colors used to make traditional fiberglass insulation. New EcoBatt Insulation boasts exceptional quality and handling characteristics that keep your installers happy and more productive—quick to recover, gutsy, yet easy to cut. EcoBatt Insulation with ECOSE Technology, the next generation of sustainable insulation…naturally from Knauf.
For more information call (800) 825-4434 ext. 8300 or visit us online at www.knaufinsulation.us
News Watch
Laurentide Paints Now VOC Free Laurentide Paint has announced it will use colourants free of volatile organic compounds (VOCs) in all corporate product lines. The company is calling the move a huge leap forward in favour of the environment, and a first for the Canadian paint industry. The move to all VOC-free colourants stems from a partnership between Laurentide Inc. and multi-national specialty chemical manufacturer Clariant. “We are particularly proud to be the first in Canada to offer a single, VOC-free colouring system for all of our product lines,” says André Buisson, president and chief operating officer of Laurentide. “Our efforts will most certainly contribute handsomely to raising environmental standards within our industry.” The company announced a new universal colouring system, which has been implemented in all 300 of its point of sale locations in Quebec and Atlantic Canada. The new colouring system will provide consumers with access to 1,050 shades,
which make up Laurentide’s Simple Colour chart. Now, even the darkest of available colours are VOC-free and the new colourants, which are compatible with all types of paint, will be used in all latex and alkyd paints across the full breadth of the company’s paint spectrum, the firm said. According to Laurentide, the new VOC-free, eco-friendly colourants also formulate more high-performance paint. In tests, paints using the new colourants have demonstrated greater technical efficacy, enhanced wear and washability, and can be applied more easily and uniformly. They also reduce the odour from latex paint, improving air quality during application.
Laurentide has been reducing VOC content in its products for some time. Last year it revisited the composition of VT2, MT2 and Titanium brand paints. Other brands, such as Laurentide and Series, are compliant with Canadian standards respecting VOCs, and the company says “will also benefit from this latest innovation.”
roof panels. Vicwest has an insulated metal panel (IMP) facility in Hamilton, Ont., which the company uses the same technology and can share best practices. Vicwest president and CEO Colin Osborne says the deal will help springboard the company’s expansion into the world’s largest building products market. “All Weather serves customers in some
25 states; however, its home market of California alone offers us tremendous opportunities,” Osborne says. “By working with All Weather’s skilled co-founders, who will remain with the business to lead its development, we intend to significantly grow and enhance the performance of our IMP business assets in both Canada and the United States.”
Vicwest to Acquire Majority Interest in All Weather Insulated Panels Vicwest Income Fund has acquired a majority interest in All Weather Insulated Panels, a manufacturer of insulated metal panels for industrial, commercial and cold storage uses. The acquisition is part of a growth strategy that the company says will provide a number of benefits including establishing a manufacturing presence in the U.S.; technology transfer; product and intellectual property improvements; and procurement synergies. All Weather Insulated Panels has a manufacturing plant in Vacaville, Calif. that manufactures a line of wall and
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News Watch Canada Green Building Council To Host Greenbuild 2011 The Canada Green Building Council (CaGBC) will be the host committee for Greenbuild 2011, the U.S. Green Building Council’s conference and expo, in Toronto. The conference, to be held Oct. 4-7, is three days of educational programming, workshops, exhibitions and networking events designed to provide opportunities for building professionals to learn about the latest ecofriendly innovations, explore new products and exchange ideas.
PHOTOS: PAUL BARKER
Sold out for the 11th consecutive year, Construct Canada, the annual show, which took place at the Metro Toronto Convention Centre in early December, also featured four associated events: Construct Canada, PM Expo, Homebuilder & Renovator Expo, Concrete Canada and PM Expo. With over 1,050 exhibits, 200 new and green products and 250 presentations, visitors viewed the latest in building, design and construction products, services and technologies. Among the exhibitors were Scott Debenham (left) and Eric Belley with Building Products of Canada Corp. (photo top left), and Anthony Hock (below) a territory manager with CertainTeed. Next year’s edition will run from Nov. 30-Dec. 2.
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News Watch “The CaGBC and USGBC have been longtime allies in the important work of building economic, environmental and social sustainability into the very fabric of our communities,” says Kimberly Lewis, vice president of conferences and events for the USGBC. “Greenbuild 2011 will be the first time we hold Greenbuild outside the U.S., but it has been a truly international show for years, with attendees from more than 75 countries joining us in 2009.” As host committee, CaGBC will work with its chapter executives and local partners to deliver off-site training, regional education and green building tours. As well, CaGBC will coordinate the recruitment and management of the conference’s 1,000 youth volunteers. Due to CaGBC involvement, Canadian green building practices will be highlighted through tours of local LEED certified buildings. “CaGBC has a strong network of corporate members, partner organizations, and industry associations who will work together to ensure a successful Greenbuild event,” says Ron Lemaire, vice president of market development for CaGBC. “Many Canadians attend Greenbuild each year and with the show coming to Canada it will be possible for many more Canadians to benefit from this tremendous resource.” Further information can be found at www.cagbc.org.
Housing Starts Took Drop in October: CMHC The seasonally adjusted annual rate of housing starts dropped to 168,900 units in October from 185,000 units in September, according to Canada Mortgage and Housing Corporation (CMHC). Consistent with earlier CMHC forecasts, the moderation in housing starts in October represented a shift from high levels earlier in the year. This represents a decrease in single urban starts in all regions except Atlantic Canada, as well as single-detached and multiple starts, said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. The seasonally adjusted annual rate of urban starts decreased by 12.3% to 142,400 units in October. Urban multiple starts moderated by 15% to 84,700 units, while single urban starts moved lower by 8% to 57,700 units. Regionally, October saw seasonally adjusted annual rate of urban starts decrease by 24.5% in Ontario, 16.9% in the Prairies, 9.1% in B.C. and 2.6% in Quebec. Meanwhile, urban starts increased by 32.9% in Atlantic Canada. CMHC predicts starts will gradually become more closely aligned with demographic demand in 2011, which is currently estimated at about 175,000 units per year.
PPG Pittsburgh Paints Releases Home Décor Colour Forecast Colour is back in a big way, according to PPG Pittsburgh Paints’ colour forecast for home décor in 2011-2012. Homeowners will gravitate toward deep, bold and bright colours to invigorate the greys and beiges of past years. They will make highly-charged personal choices such as lipstick reds and azure blues, setting the stage for a vibrant 2011 and 2012. “We are rediscovering the joy and beauty and optimism that we need to overcome adversity, and colour choices for homes will reflect that,” says Dee Schlotter, Brand Manager, The Voice of Colour, PPG Pittsburgh Paints. Schlotter explains that trends are never about one colour in isolation, but about combinations of colours striking new harmonies. The four new “Wow Colour Now” palettes in PPG Pittsburgh Paints’ The Voice of Colour program for 2011-2012 are: INstinct: The soul of this trend is warm and authentic. Fusing the raw and primitive with a technical aesthetic, INstinct is a mature style that appeals to a citizen of the world, a mix of ethnic exoticism and modern sophistication. Glamour: With a focus on the “amour,” Glamour is mysterious, sensual, rich and complex. Glistening metallics and intricate motifs connect this trend with the past. Glamour’s take on pattern is bold and sharp, with plays on negative space that surprise and delight. It is audacious and challenging, the look slightly theatrical:
Sleeping Beauty with a bite, Paris classic with an edge. Glamour’s black is moody and deep, the red, strong and sexy. Rich neutrals are inspired by materials with a past such as limestone, bronze and black marble. New Bohemia: With a sense of whimsy and an appreciation of craft, this rustic trend updates vintage for a new generation. Rooms become personal scrapbooks that integrate quirky secondhand objects with memory pieces. UPcycle: UPcycle appeals to the optimist who values craftsmanship and rejects waste, who values things with a history. It embodies simple living, keeping only what is functional and personal. The palette is warm and welcoming, settling on wood tones and the quiet hues of undyed yarns, untreated metals and toneon-tone ceramics. Bright blue colour blocks inject the dose of “up” into this trend, lighting up pale wood tones. To learn more about the colour palettes, visit www.voiceofcolor.com. CONTRACTOR ADVANTAGE
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CELEBRATING
Choose the reliability of JELD-WENÂŽ Windows and Doors for real life design options to complement your home. Our wide array of styles and products are backed by superior customer service and industry-leading warranties, meaning your home will have products that stand up to your standards at the test of time.
Visit your local JELD-WEN Dealer to learn more about our products and services. www.jeld-wen.ca
Š2010 JELD-WEN of Canada, Ltd. Reliability for real life is a trademark of JELD-WEN, inc., Oregon, USA. All other trademarks are the property of their respective owners.
New Products
Building Blocks
Innovative Products for Today’s Renovators
OWENS CORNING LAUNCHES ECOTOUCH™ PINK™ FIBERGLAS® INSULATION WITH PUREFIBER™ TECHNOLOGY Owens Corning Canada LP has announced the launch of its EcoTouch™ PINK™ FIBERGLAS® insulation with PureFiber™ Technology. EcoTouch™ insulation establishes the new benchmark for insulation performance by fusing the industry-leading thermal and acoustical performance characteristics of Owens Corning PINK™ FIBERGLAS® insulation with PureFiber™ technology. The company says the result is a new class of high-performance, formaldehyde-free residential and commercial insulation made, with natural**** ingredients. In addition, the new offerings are third party GREENGUARD Indoor Air Quality CertifiedSM, meeting the most stringent certification standards. “We know that our customers are increasingly interested in sustainable building solutions and that our new EcoTouch™ PINK™ insulation products will help Canadians make their homes more energy-efficient,” said Ric McFadden, Vice President of Building Materials at Owens Corning Canada. “This newest innovation reflects our relentless pursuit of environmentally sustainable and efficient ways to insulate Canadian homes.” The launch of EcoTouch™ PINK™ FIBERGLAS® Insulation with PureFiber™ Technology marks the end of a 70-year-old Owens Corning binder platform. The features of the new EcoTouch™ PINK™ insulation products will provide Canadians with more opportunities to protect the environment, the company says.
THESE FEATURES INCLUDE:
• Manufactured with over 70%*** recycled content, the highest recycled content for fiberglass insulation in Canada, EcoTouch™ PINK™ insulation products will help Canadians participate in glass recycling efforts, keeping waste out of landfills and turning it into usable products. • EcoTouch™ PINK™ insulation products are made with PureFiber™ Technology, with natural**** materials and are a formaldehyde-free formulation. • Every pound of glass fibre insulation annually saves 12 times more energy than was originally used to produce it. Homeowners installing up to 15” of EcoTouch™ PINK™ FIBERGLAS® batt Insulation to meet the recommended standard of R-50 can save up to a half a ton** of greenhouse gases every year. ADDITIONAL BENEFITS OF USING ECOTOUCH™ PINK™ FIBERGLAS® INSULATION WITH PUREFIBER™ TECHNOLOGY ALSO INCLUDE:
• Guaranteed thermal performance for the life of one’s home • Significant money savings* on heating and cooling bills • Softness with fast, easy handling and installation and less dust than all other fiberglass insulation products. To learn more about Owens Corning, visit www.owenscorning.ca
* PLEASE NOTE THAT SAVINGS VARY. ** BASED ON AN AVERAGE ATTIC SIZE OF 1700 SF WITH EXISTING R19 INSULATION, AVERAGED OVER SEVEN CITIES IN CANADA. *** OVER 70%* RECYCLED CONTENT, BASED ON THE AVERAGE RECYCLED GLASS CONTENT IN ALL OWENS CORNING FIBERGLASS BATTS, ROLLS AND UNBONDEDLOOSEFILL INSULATION MANUFACTURED IN CANADA. **** MADE WITH A MINIMUM OF 96% BY WEIGHT NATURAL MATERIALS CONSISTING OF MINERALS AND PLANT-BASED COMPOUNDS. THE COLOUR PINK IS A REGISTERED TRADEMARK OF OWENS CORNING ©2010 OWENS CORNING. ALL RIGHTS RESERVED.
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New Products
BLACK & DECKER INTRODUCES COMPACT LITHIUM ION DRILL/DRIVER Available in 12V MAX*, Black & Decker’s newest drill/ driver features Lithium Ion Battery technology and can hold a charge up to 500 days between projects, a result of the company’s Smart Charge technology. Lithium power offers users lighter-weight tools with longer lasting battery power, ultimately saving time and money. Black & Decker extends the benefits with Smart Charge, a battery platform that provides five times the battery life of previous NiCd models. The new drill/driver is light and compact, making it easier and more comfortable to use. Additional drill/driver features include a LED work light that illuminates a project area, 11 position clutch that helps prevent stripping of screws, and ergonomic handle design. Included with the drill is one battery, charger and screwdriver bit.
NEW PADLOCKS DELIVER HIGH LEVELS OF SECURITY Developed by Master Lock, the Magnum series of padlocks represents the “next generation of tough,” since the company’s formation almost 90 years ago. Magnum locks, constructed with dual ball bearings, reinforced body protection and an octagonal boron-carbide shackle, have superior pry resistance and are nearly impossible to cut. The company provides security and weather protection for a variety of uses including garages, sheds, tool boxes, gates, and residential or self-storage lockers. Surrounded by weather resistant protective components, the stainless and solid steel locks feature covered keyways for superior weather resistance, reinforced body bumpers for protection and distinctive design language to differentiate the Magnum family of locks.
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New Products
CERTAINTEED FLEXIBLE CORNER BEAD COVERS ALL THE ANGLES CertainTeed Flexible Corner Bead drywall can create durable corner details that are true and easy to finish and can be used to tackle any interior or exterior corner angle. Available now in 2.75” by 100‘ rolls, it features a polymer core with a built-in flexible hinge that conforms to all inside and outside corners. As it easily adjusts to all angles, tray ceilings, bay windows and even archways, this can be quickly finished with crisp straight lines as the need for pre-measuring and precreasing is eliminated, which saves valuable installation time, CertainTeed says. The company adds that the benefits extend beyond ease of installation and edge control. Since it is abuse-resistant, corners will not easily bruise, crack or chip and can stand up to the toughest conditions.
In the next issue of
Contractor Advantage • Business Software • PT Lumber • Fence Design • Green Basements • Bathroom Renovations • Closets and Cabinets
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Online Marketing
Stumped By Internet Marketing?
Many contractors have yet to set up shop on the Internet, which is a good thing as they have not picked up poor online marketing habits. BY JOSHUA KERBEL
When most people think about Internet marketing, they think of a flashy website, cutting edge technology and gaggle of new buzzwords, but guess what, it is not about that at all. At its most basic level, marketing boils down to a system, just like how there is a systematic approach for building a house, there is a systematic approach to bringing in new customers. Learn From Others’ Mistakes: I have been told by some industry insiders that many contractors have yet to set up shop on the Internet, which is a good thing as they have not picked up any poor online marketing habits. Before you put your hard earned money in building or improving an existing website, here is a chance to learn from the mistakes of companies that have already spent millions of dollars learning how to market online. A Website Alone Is Not The Solution To Your Problems: The chances are that by now you have received a call or two by someone trying to sell your business a website. Unfortunately, a website alone is not going to help your business any more than a hammer will. A website, much like a hammer, needs to be used as part of a system. Just like your need for a hammer is only part of the process of repairing a roof, a website is just a part of your online marketing process. Marketing comes down to building a system to promote your services and bring in new business. Marketing System Basics: At the most basic level, a marketing system includes methods to promote your services, acquire
qualified prospects, convert prospects to customers and retain customers that will use your services again. Now, look at your website or one of your vendors /competitors if you do not have your own and see how it accomplishes the following four goals. What you will notice, is that even the best designed website cannot accomplish these goals by itself.
four steps while still remaining profitable. This can actually boil down to a mathematical system whereby you know that for every one dollar you spend on marketing, you generate a particular amount of profit, say two dollars. This is what Internet marketing comes down to, essentially how much profit you generate for every dollar you spend on marketing.
Just like how there is a systematic approach for building a house, there is a systematic approach to bringing in new customers. A well thought out marketing system has four components: 1. Promotion: How are customers going to find you online? Some may buy ads on a popular website for people looking for new home builders that when clicked, will take people to your website. 2. Acquisition: How are you going to use your promotional methods and website to filter out qualified prospects from the rest of the herd? 3. Conversion: Building enough trust with the prospect so they buy your services. 4. Retention: Now that someone has purchased from you, how do you keep them as an ongoing customer? It is all about finding a way to attract customers, gauge their interest and develop a way to initiate communication with them. Your goal is to determine how much money you have to spend at each of the
Josh Kerbel is Managing Director of Sales Funnel, a digital marketing agency that specializes in lead generation and prospect management systems. To get a copy of the free white paper, 8 Steps to Internet Marketing Success, please send an email to report.ca@thejoshkerbelproject.com.
In most cases, your site itself only plays a part in the second and third steps and even then, it does not do it alone. There are other pieces of Internet technology that play a big part. The situation you are trying to avoid is investing in a website that is nothing more than a billboard along the information highway that simply screams “BUY ME NOW”. This sort of promotion is useless to all but the largest, most established companies. What you need is a way to allow prospects and customers to USE your website as a business tool. Do this properly and your website will be PART of a business generating magnet. Mess it up, and you are just another billboard along the side of the road. Take Away Point: Do not build a website with expectation that it is somehow just going to start throwing off new leads, it needs to be part of an integrated online marketing system. Also understand that generating sales online leads cost money; however, done properly, it costs your company much less money than other marketing channels do. When you invest in online marketing be sure to account for all four steps of a proper marketing system, not just a pretty website.
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Business Strategies
Good Leadership Takes Courage
To have strong courage through your leadership challenges, you must develop the attitude, skill and ability to use it. BY DANITA JOHNSON HUGHES.
Sometimes leadership requires making hard decisions and choosing a path that goes against the norm. Leadership takes courage. It has been said that the lack of courage, in management and in life, is perhaps the most critical factor in determining whether you will succeed or fail as a leader. Organizations today need leaders who are unencumbered by fear. They need courageous leaders who can guide them through troubled times and help them turnaround in spite of the challenges. In today’s economic climate, there are masses of people seeking a turnaround. Lives have been ruined by financial cir-
cumstances that have created challenges that many struggle to overcome. Layoffs, downsizing, mortgage foreclosures, declining RRSP plans, among others, have all contributed to a general malaise in the workplace and in the personal lives of many. Many managers are afraid to add to the emotional burdens of a workforce that is already seeing unprecedented hardship. They may even be experiencing many of the same difficulties themselves. As a result, the courage to pursue a turnaround, both personally and organizationally, is declining. Quite simply, many people are afraid of what the future might bring. Unfortunately fear can be paralyzing. It
can hold you back and keep you from realizing your optimum potential. The fear of change, of loss, of being wrong, or of being embarrassed, are examples of emotional barriers that can rob you of opportunities for happiness and success. These emotional barriers often get in the way of opportunities for positive change. Your ability to move through these barriers and to muster the courage to move beyond your fears is the hallmark of an effective leader. Courage is not something that just happens. Courage is a lot like a muscle. To have strong courage through your leadership challenges, you must develop the attitude, skill and ability to use it.
There may have been times when you courageously made what you thought was the best decision, only to find later that you were dead wrong. You are human.
Danita Johnson Hughes, Ph.D. is a healthcare industry executive, public speaker and author of the forthcoming “Turnaround.” Through her work she inspires people to dream big and understand the role of personal responsibility in personal and professional success. For more information visit www.danitajohnsonhughes.com or contact her at danitahughes@edgewatersystems.org. 14
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Here are five attitudes that can help you develop your courage muscle: Know yourself. It is difficult to have courage when you are unclear of your guiding values and principles. What do you stand for? Being attuned to who you are is like the foundation of a house. It holds you firm when the demands of leadership challenge you. Do what is right, not what feels good. Often, courage means making uncomfortable choices. A difficult decision will not always feel good in the moment, but if you are connected with your principles then you will know the right course of action. Always remember to maintain an ethical posture in these moments.
Business Strategies
When life is spinning out of control, your attitude is the one thing you can control. Be courageous, take the reins and go after the results you desire. Be flexible and open to change. If you find yourself saying, “We have always done it this way,” then you may really be responding to fear of change. Fear is the opposite of courage. Have the courage to corrupt the norm if it means a better outcome. Accept criticism. Naysayers abound, especially when faced with a leadership challenge. Listen to the critics; they may have a valid perspective on the situation, but always return to what is right, both from an ethics and principles standpoint, and then choose. Be willing to admit mistakes. There may have been times when you courageously made what you thought was the best decision, only to find later that you were dead wrong. You are human. Mistakes are part of the territory. Be willing to admit when you are wrong. Those wrong turns are learning opportunities to be savored! Embrace them and choose to do differently next time. Fear and uncertainty make it difficult for some to see beyond their immediate circumstances. When you walk into the grocery store, do you see more grumbling faces than smiles? On the way to work, do you notice the white-knuckle grip of commuters so wound up in stress that they use their vehicles to exert power, even if it is just to be first at a stop light ? They want to at least be ahead of someone. Maybe you understand how they feel. You have probably lived through up-times and down-times yourself. Even
so, as a leader, it is your responsibility to lead your organization to success in spite of the difficulties that many employees may be experiencing personally. You can do this efficiently and effectively without losing appreciation for individual circumstances. It is simply a by-product of your attitude. Instead of seeing what is lacking in a situation, seek out the opportunities. Rather than dwell on what is wrong, affirm what is right. Recognize that success is about what you can achieve collectively. These are the perspectives that can help you through even the most challenging times. When you are neck deep in a difficult situation, it is hard to quell your negative desires and thoughts. It may take years of conscious effort and “mind training” to choose differently. Sometimes you will fail, but most times, you will succeed in maintaining an attitude that makes a situation better, not worse. You can create your own attitude for success. It takes practice and consistent effort, but it is definitely possible and it starts with something very simple: Change what you feed your mind. When you wake up in the morning, what is the first thing you feed your mind? Is it the morning news? Is it the worry of what the day will bring? Most people start their day with dreadful news, whether it comes from the media or internal thoughts. Choose differently.
Tomorrow when you wake up try this: Think of five things you appreciate and quietly say, “Thank you for…” Starting with a perspective of gratitude for what you already have (even though it may not be perfect) trains your mind to see the good in your life. Next, think of your number one goal and decide on two to three actions, big or small, that you will take to move you forward on that goal. Finally, spend 20 minutes reading something inspirational or motivating. Avoid the morning news or tabloid papers. Find a book, blog, or another resource that is positive and instructional. Success and happiness are choices based on your attitude. A positive attitude frees the mind to be creative and to seek out and realize new opportunities. When life is spinning out of control, your attitude is the one thing you can control. Be courageous, take the reins and go after the results you desire. By doing this, you will be well on your way to creating a successful turnaround.
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Smart Money
RRSP Tips For 2010 Tax Year
The objective is always to minimize personal and corporate income tax, and there are several ways to do that. BY PAUL RHODES
The maximum RRSP contribution amount for 2010 is equal to your unused contribution room carried forward from 2009 plus the lower of: 18% of earned income of 2009 (less 2009 pension adjustments), and $22,000. Earned income includes salaries, rental property, alimony, maintenance and income from unincorporated businesses and is reduced by losses from the same sources. This limit ignores the adjustments that are necessary from membership in a Registered Pension Plan. The objective for an owner-manager is always to minimize the combined personal and corporate income tax burden. That process should include the following as part of your income tax planning for the 2010 tax year: You may contribute any amount up to your unused 2010 RRSP contribution limit. The amount contributed is a deduction from your 2010 income provided it is made on or before March 1, 2011. The contribution can be made either to your own or your spouse’s RRSP. You can determine your RRSP deduction limit for 2010 by referring to your 2009 Notice of Assessment, which you received from the Canada Revenue Agency, or by visiting www.cra.gc.ca. Your accountant might have provided you with this information as part of your 2009 income tax return. An over-contribution to your RRSP by up to $2,000 is allowed. While this amount will not be deducted from income in 2010 it will benefit from tax free growth from the date the contribution is made and you
may be able to claim a deduction for the over-contribution in a future year. If you over-contribute to your RRSP by more than $2,000 (after February 26, 1995), the excess is subject to a penalty of 1% a month for each month it remains in the plan. Contributions that have not yet been deducted from income may be withdrawn from an RRSP or from a successor Registered Retirement Income Fund (RRIF), within a certain time limit, without tax implications.
If you have contributed to your RRSP early in the year or are making regular RRSP contributions consider applying to the CRA for a waiver letter to reduce income tax withholdings from your salary. Tax avoidance provisions apply when the over-contributions can be shown to have been made without any intent of being deductible. Any unused RRSP deduction room can be carried forward indefinitely and used in a future year; however, if you miss the March 1, 2011 contribution deadline it is still advantageous to contribute on April 1, 2011, because the contribution will begin to earn tax free income earlier. Ideally contributions should be made on January 2 each year and the contribution deducted in the same calendar year.
Paul Rhodes is a partner at Soberman LLP. His professional experience includes providing assurance and advisory counsel to a number of clients in construction, manufacturing, real estate and internal audit engagements. Paul is a member of the Toronto Construction Association. 16
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Administration fees paid outside of your RRSP are not tax deductible; however, you might want to pay these fees outside of your RRSP to maximize the growth of the tax deferred income within the RRSP. If you have contributed to your RRSP early in the year or are making regular RRSP contributions, consider applying to the CRA for a waiver letter to reduce income tax withholdings from your salary. Waiver applications are made on form T1213 which can be obtained from www.cra.gc.ca.
CONTRACTOR ADVANTAGE
Alternatively, bonus payments can be made directly to your RRSP without income tax deductions being made. Canada Pension Plan (CPP) and Employment Insurance (EI) should still be withheld, if applicable. In this case, you must provide the company with a signed statement directing the company to make the payment to your RRSP and the payment must be made directly to your financial institution. Your accountant should be able to provide you with a suitable statement for this purpose. If you withdraw funds from your RRSP, tax is withheld by the financial institution: 10% if the withdrawal is less than $5,000; 20% if the withdrawal is greater than $5,000 and less than $15,000; and 30% for amounts greater than $15,000. Consider several smaller withdrawals rather than one large lump-sum payment to reduce the tax withheld at the time of
Smart Money
Contributions that have not yet been deducted from income may be withdrawn from an RRSP or from a successor Registered Retirement Income Fund (RRIF), within a certain time limit, without tax implications. the withdrawal. Note that the reduction in withholdings is only a tax deferral, because the withdrawn amounts must be reported on your tax return in the year of withdrawal where they will be subject to income tax. Provided you have unused contribution room, you may contribute to your own RRSP until the end of the year in which you turn 71 and to a spousal plan until the end of the year in which your spouse turns 71. If you turn 71 in 2010 and have earned income in that year, consider an extra contri-
bution to your RRSP in December just prior to the conversion of the RRSP to a RRIF or annuity. The extra contribution will be deductible from income in the following year. By Dec. 31 of the year in which you turn 71 you must convert your RRSP to a RRIF by either purchasing an annuity, transferring the funds or by withdrawing a taxable lump sum payment. If you do not take action by Dec. 31 the full market value of your RRSP will be added to your 2010 taxable income. For an owner-manager, your goal should
be to ensure that both your family and the company’s tax position make sense. Given the benefits of tax free growth within an RRSP and the deferral of income tax until funds are withdrawn from the subsequent RRIF or annuity, they should form a part of any tax planning exercise. This article has been prepared for general information. Specific professional advice should be obtained prior to the implementation of any suggestion contained.
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Economics 101
A Project Management Primer
Using the same methodology for every project will result in having three out of four ending in failure. BY MARTIN VANDERSCHOUW
When it comes to business there are just a few inescapable truths, and one is found in the nature of work done by any organization. In any, no matter what the business, only two types of activities are done: projects (or new initiatives) and operations. Everything falls into one of those two categories. To succeed, an organization must do both very well, and both therefore need to have strong leadership, discipline and visibility at the most senior level. For each activity type there are many different ways to get work done. Unfortunately, not every methodology aligns with every organization or a particular effort. Often the quickest and easiest organizational gains can be found by examining the methodology, or methodologies, used by an organization in the execution of projects. The most common of these is a waterfall model where activities are done in a four or five phase sequence: analysis, design, development, testing, and deployment. This highly linear approach to project execution is the oldest and has its origins in the engineering world. The first major test should be an open willingness to ask some simple questions: 1. D o you know how often your initiatives are late and/or over budget? 2. Do you know what your average schedule and/or cost over or underrun is? 3. How often do you end up with fantastic technical solutions in search of a business problem?
4. Do you often find things are right on track until the last minute when suddenly they are not? 5. Do your people often complain about the amount of process or paperwork they must complete? The answers to these questions often indicate a process or methodology problem. The easy approach is to keep doing things the same way, but that is also the
A common mistake is to not begin tracking until the idea reaches the execution stage. When this happens you have no idea how much time or money is being spent to plan your initiatives, and that is dangerous. definition of insanity. There has to be a better way, and fortunately there is. The better way begins with a few simple assumptions. As long as these assumptions hold true you can achieve dramatic improvements in short order. 1. Your initiatives are not clones where one is largely identical to the next. If they are largely identical use a waterfall methodology and focus on operations management. 2. Your people are trainable and capable of making basic business decisions. 3. You sometimes face diverse customer needs and timelines. 4. It is impossible to know all the requirements at the beginning of the effort.
Martin VanDerSchouw currently serves as president and CEO of Looking Glass Development, LLC and is the author of the book “Flavor of the Month. For more information visit www.lookingglassdev.com.
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5. Change, sometimes even significant change, is a normal part of the process. If these assumptions are true, then the process that follows will add great value. The first step in the process is idea generation. This is the step where someone in the organization says it would be a good idea to do something. All that is needed here is a simple method to capture the idea. This can be as simple as a half sheet of
CONTRACTOR ADVANTAGE
paper or a simple single page Web screen. Remember, no one really knows anything yet, so keep it simple with not more than five or six questions. Once the idea is in the system, someone needs to prioritize it against all the other ideas in the queue. It is best if the senior leadership team prioritizes the initiative against the strategy. A common mistake is to not begin tracking until the idea reaches the execution stage. When this happens you have no idea how much time or money is being spent to plan your initiatives, and that is dangerous. The next step is to hold a kick-off meeting. Keep this simple as well. It should be about an hour and never longer than 90 minutes. The less comfortable the team is with the project, and the less well understood the requirements, the more an iterative process is required. Implementing a multi-methodology process can be confusing, but if one out of three efforts will fail because of misaligned methodologies, can you really afford not to change?
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Entrepreneurial Advisers
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In unpredictable economic times, operating a business can be one of the best ways to tie financial security and success directly to creativity and work ethic. That is the crux of The Affluent Entrepreneur: 20 Proven Principles for Achieving Prosperity. Author Patrick Snow presents readers with techniques to take charge of their financial futures and, in turn, their overall well-being. The Affluent Entrepreneur is designed to help both new and veteran entrepreneurs with direction, help aspiring entrepreneurs identify and turn their marketable passions into a successful business, and provide counsel for existing entrepreneurs needing
guidance to take their businesses to the next level. Snow presents proven principles for quick success through a variety of topics including: identifying and differentiating products and services; gaining necessary family support; leveraging technology and the Internet; creating walk-away income; and selling off successful businesses and starting over. The author is a professional speaker and Internet entrepreneur with more than 20 years of study in the field of personal growth and development. Dubbed “The Dean of Destiny,” he launched his company The Snow Group in 2000 with a mission for helping people turn career distress into personal success. Snow has given more than 1,200 motivational presentations in Canada, the U.S. and Mexico.
BOOK THE SMARTA WAY TO DO BUSINESS John Wiley & Sons, Inc.
A unique guide to entrepreneurship, The Smarta Way To Do Business: By Entrepreneurs, For Entrepreneurs combines the insights of more than 70 leading entrepreneurs into one package for start-ups and established business owners. Designed to act as a definitive business guide, the book gives sound practical instruction, step-by-step tips and advice for each step of the business journey. Authors Shaa Wasmund and Matt Thomas have assembled an all star team of contributors that cover every element from start-ups and growth, planning and research, the first
12 months of operational challenges, strategies for survival, and ultimate expansion and exit. The book is a spinoff of the Web site www.smarta.com, which provides advice on an assortment of business topics. It offers up real-world examples from entrepreneurs who have been there, done it, and are doing it now, according to Canadian publisher John Wiley & Sons, Inc. Many features in the book address how business works in today’s online world. The Smarta Way To Do Business is aimed at start-up entrepreneurs, as well as existing small business owners looking to take business to the next level by exploring how social media and emerging technologies can increase sales. Both books are currently available from www.amazon.ca and www.chapters.indigo.ca.
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Feature
Accounting for
Success
If you get a little slack with your accounting, it might be a good thing to remember this: Canada Revenue Agency has bankrupt many businesses due to taxes owed. BY LAWRENCE CUMMER
A
contractor works hard building and renovating and it is no surprise that the accounting side of the business can sometimes fall by the wayside. When you consider that having a sound accounting strategy can improve the bottom line of the business and overall profitability that is not a particularly wise move. In a sea of accounting options, good counsel can act as a beacon for contractors who need to concern themselves with taxation and revenue reporting. Experts suggest there are pennies to be pinched and dollars to be earned by following some important tips.
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Start with good project management: Good accounting starts with having adequate cost controls in place for projects. Poor project management represents an area of inefficiency that a lot of contractors face, says Bradley Waese, partner at SF Partnership LLP and member of the Toronto GTA Building Industry and Land Development Association (BILD). “Some contractors run their business from the seat of their pants and they use old formulas for costing that might not apply anymore,” he says. “They might believe they are making money, but that is just because they have cash in the bank.”
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Waese says that contractors with poor job costing practices, who have not re-established material and expense costs, risk either continuously losing money on jobs by quoting too low or losing jobs outright by over-quoting. Good costing is extremely complex for any but the largest firms, says Martin Secker of Secker, Ross and Perry Chartered Accountants. Secker, who has been serving contractors and construction clients for over 40 years, notes that without professional help many contractors struggle to factor in all elements of each job: materials, payroll (including their own), equipment and
Feature
business overhead. In the end, they too often short change themselves. “It is not easy, but it needs to be done,” Secker says of good project costing. “I realize some young firms, eager for business, will grab anything that moves, but the last thing you want to do is lose money. If it is breaking even, that is OK; but when you start to lose money that is the beginning of the end.”
To be incorporated or not to be: One of the major decisions facing a contractor is when, and whether or not, to incorporate their business and unfortunately there is no hard and fast rule, since each business is unique.
Michael Kee, senior manager at SB Partners LLP, says incorporating is not a decision to be taken lightly, as it does increase costs. “There is not one simple rule for when to incorporate,” he says. “Because of this, seeking professional advice is key.” Size of the business is one consideration. Contractors might find little value incorporating if the profit the business brings only equals the contractor’s needed personal income. “I would not hurry to incorporate, unless the business makes more money than you need to spend in personal income,” Secker says. For example, he notes if the business brings in $50,000 a year and the
owner needs $50,000 a year to support their lifestyle, there is no tax advantage to incorporating and adding administration costs. If that same business made $100,000 per year, he notes that by incorporating the remaining $50,000 would be taxed at a lower corporate earnings rate. There are other considerations. Incorporation can act as a protection against losing private assets in the case of liability. Experts recommend always first discussing incorporation with your accountant and lawyer. “Incorporating your business is usually a sound decision due to the litigious nature of the business,” Waese says. “Thoughts should be given to creditor proofing, and
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Feature securitizing of shareholder loans should be looked into in the short run, as they are relatively inexpensive to do.” Experts say consideration should be given to moving any major asset (real estate or other investments) from the operating company to avoid risk of a creditor being able to attach to such assets. For mature businesses, Waese says sophisticated business structures such as trusts and other estate planning mechanisms, should be reviewed. Sometimes overlooked, incorporating can also allow contractors to appear larger and more established. “You might end up in the same tax position whether incorporated or not, but some customers might take you more seriously,” Kee says.
Not what you know, but who you know: You would not go to a general practitioner for healthcare when you need a specialist. Accountants and firms with at least a few clients in the real estate and construction industry will better understand the nuances of a contractor’s business. In fact, they can even help a contractor better gauge if their margins and cost structures are on-track or not, since they can have an ear to the ground. Industry expertise should be one of the biggest factors when seeking professional accounting help, says Johnny Di Maria, a partner at the Montreal office of the accounting company RSM Richter Chamberland. “They will know the intricacies of the industry, but it also happens that when you know an industry, you develop a network of bankers, financiers and possible future partners.” This financial network can be particularly important, given that Secker says his most important piece of accounting advice to contractors is to “find a really understanding banker.” Given traditional industry volatility, financiers are familiar with the expected flow of cash. Secker adds that, “bankers do not like surprises. If the contractor is experiencing an unexpected downturn in business, he should inform his banker at once and sit down with him to resolve the cash flow problem.” Industry associations can also be a good target for building a professional network of financial experts. Many industry-savvy
“You might end up in the same tax position whether incorporated or not, but some customers might take you more seriously.” accountants are members of local trade associations, and those associations can also become sources of insights. For example, in 2010, the Vancouver Regional Construction Association (VRCA) formed the Construction Finance Network. Consisting of senior level financial operations professionals of local construction companies, the network is designed to foster relationships,
discuss industry issues and provide information to benefit member companies. Its committee holds an open door policy and can be attended by anyone, according to the VRCA. “There are many professional groups and associations to join,” Waese notes. “Learning from your peers is probably the best if you do not have that accounting experience within you.”
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Feature Organized and on time: Getting organized and registering all necessary filings is a shortfall for some contractors, Kee says. “The best time to get organized is at the beginning,” he says, but adds it is never too late. “Know what your expenses are, how you are going to incur them, and how are you going to track them. “A lot of contractors get six months in and they do not know if they are actually profitable or not, because they are not organized to the point where they can identify which costs are related to which jobs.” In addition, Kee notes it is critical to avoid penalties by registering for necessary taxes (GST or, in Ontario and B.C., HST), but also with necessary workers’ compensation boards, such as the Workplace Safety & Insurance Board (WSIB) in Ontario. “WSIB is an area where contractors often make mistakes,” Waese says. “WSIB is always looking at contractors. All employees must be covered. Ensure the subtrades you use are registered for WSIB or you may find that you will have to cover them as well.” Executives and owners need not be covered by WSIB and often private insurance gives better coverage at cheaper prices, according to Waese. New harmonized sales taxes (HST) in Ontario and B.C. create a new job for contractors, experts say. There is a huge temptation to avoid making tax installments on time and to try to use HST or GST as a means of financing, but this would be a mistake. “If you need to be registered for payroll and you are not, or if you need to be registered for HST and you are not; if you are not doing these things, when they come back, they come back badly,” Kee says. “There are a lot of interest and penalties to be incurred if filing incorrectly.” Interest owed to the Canada Revenue Agency (CRA) is not tax-deductible, while other business loans might be, making using such taxes as short term financing very expensive. As well, especially in provinces where the HST has come into effect, it can become easy to fall behind and find oneself unable to catch up.
“The best time to get organized is at the beginning.” Wease notes that the Canada Revenue Agency has bankrupt many businesses due to taxes owed. An excellent practice is setting up a separate account for taxes and CPP payments, says Secker. While many contractors do not do this, he says it will help avoid the temptation to dip into funds owed the government. Di Maria reminds contractors they should have options in place for revenue recognition that can affect their final taxation and should discuss them with their accountants. For example, whether revenue is recognized throughout the job or upon completion might delay tax on that revenue. “Ultimately you are going to end up in the same spot (financially), but if you stop at a moment in time your financial results will look different.”
Proper handling of hold backs is also important. Waese notes that many contractors pay GST or HST on hold backs before they need to. Hold back amounts become due on the day in which the hold back period expires. Here is another area where project management becomes crucial. Unless contractors pay attention to the status and completion of projects they can actually lose out on a final hold back payment entirely, Di Maria says. “Sometimes you get tied up in job after job, and you do not actually finish that first job. Even though it is 98% complete, you are not going to get that 10% hold back. If you do not manage your time properly, you are not even going to get paid.”
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Green Friendly:
Tips And Advice For The LEED Canada NC 2009 The Canada Green Building Council or CaGBC has announced that registration for LEED Canada for New Construction and Major Renovations (NC) 2009 and LEED Canada Core and Shell Development (CS) 2009 opened June 21, 2010. These new rating systems offer many advantages, including: • Re-weighted credits: the number of points that may be earned for each credit has been re-evaluated using a more scientific approach, resulting in greater emphasis on preventing climate change. • Familiarity: the majority of credits have not substantially changed.
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• Faster certification: the audit round of the certification process has been eliminated, and streamlined compliance pathways are available for some credits. Projects registering as of June 21, 2010 will be registered under the 2009 versions, while projects registered prior to this date may switch to the new rating system. “The built environment has a profound impact on our natural environment, economy, health, and productivity,” the council says. “Break-throughs in building science, technology and operations are now available to designers, builders, operators and owners who want to build green and maximize both economic and environmental performance. “The green building movement offers an unprecedented opportunity to respond to the most important challenges of our time, including global climate change, dependence on non sustainable and expensive sources of energy, and threats to human health. The work of innovative building professionals is a fundamental driving force in the green building movement.”
Contractor Professional NC 2009 Q&A How can I learn more about the new rating systems? The New Construction Technical Review workshop has been updated to LEED Canada NC 2009. See the CaGBC website (Education section) for further details. In addition, the CaGBC will be offering a webinar to present an overview of the differences between the previous versions and the new 2009 versions. Will I be able to switch a previously registered project to LEED Canada NC 2009 or LEED Canada CS 2009 after these versions are launched? Yes, projects registered under the current versions of the rating systems will be able to switch to the new versions. Applicants are encouraged to contact CaGBC Customer Service if they wish to be switched to the 2009 versions, but are cautioned that once the project is upgraded to version 2009, the project may not be converted back to the previous version.
Will I be able to use LEED Canada 2009 pathways for a previously registered project without fully upgrading to new products? Yes, projects registered under the current versions of the rating systems will be able to use some pathways from LEED Canada NC 2009 and LEED Canada CS 2009 without fully upgrading to the new rating systems. A table of allowed substitutions is provided on the CaGBC’s website. Not all new pathways will be acceptable for previously registered projects due to the change in individual credit weightings. However, the CaGBC recognizes that some applicants will want to use the alternative credit pathways provided in the 2009 product line but are unable to fully upgrade due to the stage of completion of the project. This methodology provides flexibility to LEED Canada users. Source: CaGBC
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Cover Story
Kitchen Communications Paying close attention to a homeowner’s needs before the job begins could ultimately put more cash into your pocket. BY LAWRENCE CUMMER
G
ood communications skills are necessary for contractors looking to increase the number of kitchen renovation projects and build their business. Many homeowners, content with improving their homes instead of moving their families, are investing in their kitchens. In order to do the best job possible, contractors must pay close attention not just to what they say they want, but also on how they intend to use their kitchens and live their lives.
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These early discussions will help to construct a beautiful, functional space that homeowners and their guests will talk about. The so-called word of mouth effect could end up generating more work. Many older kitchens are poorly laid out with wasted corners and storage and counter space that is inefficient for current needs. Changes in kitchen function play a big role in many kitchen jobs. Be sure to ask probing questions to get to the root of exactly why it is being renovated. Does the homeowner need more stor-
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age space? Better traffic flow? A brightly-lit breakfast station? Ask the homeowner about their daily routines in order to help best suggest designs that meet their objectives. Today, experts say that many families are looking for dual- or multi-purpose kitchens that separate cooking and preparation areas; others need the convenience found from adding more appliances. “We have found that homeowners usually have a pretty good idea of what they want out of their kitchen, such as a nice
Cover Story
“Longevity is a huge concern, because the trend lately is to say, ‘We are going to stay where we are and put our money into the house.” dinner experience, expert cooking, entertaining or just a showpiece,” says Rich Ramaglia, owner of Ramaglia Contracting. “As a contractor, it is important to work with the client from concept to the finished product in order to build the kitchen of their dreams.” Ron Dyck, owner of Hawthorne Kitchens, agrees. “If you are trying to force the customer into something they really do not like, it is going to be an uphill battle,” he says. “Most people have been thinking about their kitchen for many years. You have to open the dialogue and listen to them first, then start discussing what works and what does not.”
Today’s trends: Homeowners are looking for kitchens that will pass the test of time, notes Stephanie Brown, sales manager for kitchens and baths at Can-Save, distributor of building materials, doors and kitchen and bath products. “Longevity is a huge concern, because the trend lately is to say, ‘We are going to stay where we are and put our money into the house.’ When you are making an investment the size of a kitchen renovation, you want to make sure that in 10 years you are not going to wake up and regret it.” Simpler styles that have longevity, such as shaker-style doors, are in vogue as well as doing interesting things with them for creative effect. As an example, stacking cabinets high and flipping some on their sides (so they open upwards rather than sideways) are currently popular. CONTRACTOR ADVANTAGE
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Cover Story
John Lamb, sales manager at EuroRite Cabinets Ltd., says that he has also been seeing a trend toward a simpler look. “Minimalistic and angular is in,” he says. “In fact, styles we thought five or six years ago were exclusively for apartments have become accepted in single-family homes.” Still, even with more plain, durable and functional-oriented cabinetry and countertops gaining interest, a great focus is going to the details. The wow factor can be in the details, from added cabinetry trim, to fresh knobs and handles, to matching appliances. “I think women have always understood the importance of accessorizing,” Lamb says. “It changes the whole character of everything. Accessories are a very easy and relatively cheap way of differentiating the room. “I mean, if you put brass knobs on the doors you look like you are from the 1970s; if you put brushed metal ones on you look like you are right up-to-date.” Lamb notes that another popular trend is to create visual themes throughout the home. Where, in the past, kitchens and bathrooms would have decidedly different looks, homeowners are now trying to
“ Most people have been thinking about their kitchen for many years. You have to open the dialogue and listen to them first, then start discussing what works and what does not.” match one style throughout kitchens, bathrooms and even laundry rooms. The trend to renovate instead of relocate has also led towards a greater number of full kitchen re-designs, rather than just surface-level replacements, Brown says, as homeowners try to get every inch out of their existing kitchens or enlarge them. This is more good news for kitchen renovators.
Brighten, recapture space: Alex Chong, president of Alex Chong Building and Renovations, notes that recapturing lost space is essential to most kitchen renovations. “The kitchen is the heart of the home for many families,” he says. “Homeowners spend most of their family time there and as contractors we need to help them to utilize the space as much as we can.”
Careful consideration around design must take place at the start of every kitchen project and where possible more cabinet space is always a plus as is better lighting. In this area, Chong has a simple rule: “Bright kitchens make you happy; it is important to get the lighting done correctly in order to fully appreciate the kitchen.” The placement of a sink can also make a big difference. Chong, for example, recommends locating the kitchen sink underneath the kitchen window whenever possible, while Dyck suggests sometimes relocating it in the corner to create a working counter with natural light. This is particularly effective in smaller kitchens. “That is something I have done a lot of over the last two years, and it has people thinking in a different direction,” Dyck says. “Generally speaking, a window is within about two feet of the corner, so if you
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Cover Story Experts suggest that approximately 80% of the
money spent on kitchen renovations is made back in an increase of the resale value of a home.
put a sink in the corner, you are still standing at the window when you are at the sink. Basically, it is utilizing one corner, which is a hard thing to do in most kitchens.” Pendent lighting over islands can light up the entire kitchen area, notes Chong, and skylights (or sky tunnels) can offer a green solution that will simultaneously save homeowners money on future energy bills, while providing warm natural lighting. In terms of functionality, consider adding more electrical outlets to counters, some with ground fault circuit interrupters (GFCI), Chong says.
Green kitchens: Homeowners are seeking more energyefficient appliances, windows and lighting, but being green does not stop there. Cabinetry companies are increasingly being asked for and seeking out ways to source greener materials and use more environmentally safe production processes. “I get asked the green question a lot,” Brown says. “Someone once even asked me if they could have a kitchen built without any glue being used.” Brown says that Can-Save pays a lot of attention to the manufacturing process that goes on behind the scenes, and notes that most particle board and MDF used in cabinets distributed in Canada are CARB Phase II certified. The most recent emission limits set by the standard take effect in January 2011, and caps emissions from particleboard at 0.09 parts per million and from fibreboard at 0.11 parts per million. Brown says the initiative for greener kitchen products is being driven by consumers, and also manufacturers, distribu-
tors and builders themselves are all working to do what is right for the environment. “It feels like a very natural process where the suppliers, the MDF manufacturers, are all offering more green products, so it is easier for me, the manufacturer, and the homeowner to make good choices. “Would I be seeking out green product if I had to? Yes, but I have not had to,” she says, adding that manufacturers are quite ahead of the curve on issues of environmental compliance. Lamb says, as a manufacturer, EuroRite is also continually looking for ways to more cost-effectively make greener products, since price still remains a factor in making green choices.
ing the backsplash to ceramic tile or stone. With more budget available, consider opening the kitchen up. Open concept kitchens maximize space, Ramaglia says and points out that custom cabinets, granite countertops, bar tops, heated floors, crown moulding and pot-lights are also good option when the budget exists. Remember that for many homeowners it is not exclusively about budget, since a kitchen improvement is a sound investment. Experts suggest that approximately 80% of the money spent on kitchen renovations is made back in an increase of the resale value of a home. Keep in mind that full kitchen renovation will inconvenience homeowners for three to four weeks, even longer if it is extensive. As always, communicate and work to create as little interruption as possible.
Building to budget: Ramaglia stresses how important it is to be budget conscious and get a very clear idea of how much the homeowner wants to spend. Still, a few things can spruce up a kitchen even on a reduced budget. Ramaglia says low-budget kitchen renovations can do well by adding under-lighting to existing kitchen cabinets, tiled back splashes, tiled or hardwood floors, wall mouldings and new paint. To do a great job with a sub$10,000 budget, Chong suggests keeping existing cabinets, but updating them with new paint or stain and new hardware, plus new flooring and under-lighting and potlighting on a dimmer switch. A new countertop and sink, or ceiling and wall painting can create a fresh, flashy look, and he suggests changCONTRACTOR ADVANTAGE
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GREEN SHOOTS With the growing interest in greener products, these 10 choices could help to secure more of the business that will help your business grow. BY JOHN G. SMITH
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simple visit to your local Castle Building Centre store will show the growing interest in green products. Environmental claims can now be found on the labels for everything from flooring material to cleaners and paints. Appliances are being 34
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compared right down to the kilowatt-hour of electricity that is needed to keep them running. Consider these 10 choices which can support a greener planet, and capture the attention of environmentally conscious clients.
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1. HEAT WATER EFFICIENTLY: Most Canadian households draw their hot water from a traditional storage tank water heater. As the heated water is pulled out of the top of the tank, cold water enters the bottom, and the heat comes from a source such as electricity or a burner fueled by gas or oil. The choices do not need to end there. According to Natural Resources Canada, upgraded designs can perform 40% more efficiently than a conventional model, thanks to extra insulation, an improved heat exchanger, or heat traps which retain hot water in the tank. Gas-fired tank heaters can include electronic ignition instead of a continuous pilot light, a powered exhaust, or better controls of the flue baffle and flue dampers to reduce the loss of heat through the flue vent. Condensing heat exchangers will improve the efficiency as well. A final step in the form of some well-placed pipe insulation will offer yet another improvement. The insulation should be installed around the first metre of the cold water pipe where it comes into the tank, and then around the first two metres of the hot water copper pipes. In the case of a gasfired heater, begin wrapping the pipe 15 cm away from the exhaust vents that can be found at the top of the tank. Then again, some options do not require tanks at all. Tankless designs can be installed close to where the water is actually used, and heat the water on demand with the help of an electric element or gas burner.
2. REACH FOR THE ENERGY STARS: EnerGuide labels, found on everything from refrigerators to clothes washers, offer information that can be used to compare the performance of one appliance to the next, but the Energy Star designation identifies the options that meet or exceed the highest levels of energy efficiency. In Ontario or Saskatchewan, builders can even apply the Energy Star standards to an entire home. Energy Star for New
3. LOOK INTO THE WINDOW CLAIMS:
As important as the appearance of a window can be, the choice of one product over the next will play a key role in controlling indoor temperatures and influencing energy needs along the way. A window that only incorporates two pieces of glass and a spacer will deliver a mere insulating factor of R 2.0. When argon gas is added in the space, the rating climbs to R 4.0. The energy-saving options extend well beyond that. Manufacturers have also introduced a number of options to enhance the overall performance of their windows. A non-metallic warm edge spacer, for example, will conduct less heat or cold than its aluminum counterpart, while sheets of Low-E film can further improve the window’s insulating value. Just keep in mind that a window’s Energy Star ratings will be associated with a specific region. A model sold for the Toronto market can earn the designation with an R 3.2, but those sold in the northern reaches of Ontario will need to offer R 4.0. CONTRACTOR ADVANTAGE
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5. CHOOSE PAINTS THAT HELP YOU BREATHE EASY:
Volatile Organic Compounds (VOCs) have been steadily reduced in everything from adhesives to paints, and that is good news for the environment. The VOCs are a primary ingredient in ground-level ozone, which contributes to smog, and air pollution increases the risk of lung cancer and heart disease. The choice of paints with a low level of VOCs can actually help to earn Leadership in Energy and Environmental Design (LEED) credits. A recognized flat paint will need to be limited to 50 g/L of these compounds, while coatings that have a sheen will be limited to 150 g/L. Painters just need to understand that environmentally friendly coatings may require some changes in work habits. The move to eliminate solvents, for example, has extended curing times. Latex paints can also require more preparation. The use of a conversion primer will make a big difference when covering a surface that had been coated in a traditional oil paint.
Homes identifies structures that are about 25% more energy efficient than those built to meet the provincial Building Code. Homes that earn the designation typically include Energy Star furnaces, heat pumps, thermostats and fireplaces, as well as Energy Star windows and doors that promise to cut a homeowner’s energy costs by more than 10%.
4. CONSIDER CONCRETE: Utility costs are on the rise everywhere, and those who plan building projects are looking for new ways to improve the insulating value of their designs. This could help make the case for Insulated Concrete Forms (ICF). The easily constructed systems typically include interlocking panels, while the cavities in between are filled with rebar and concrete. The end results can make a big difference when compared to a wood-framed structure. For example, PlastiFab’s Advantage ICF System has an R-23.5 insulating value, which is 40% higher than the R-16.8 that would typically be realized in a building made with 2x6 wooden studs and R-20 fiberglass insulation.
6. DIG INTO THE DRYWALL CLAIMS: One sheet of drywall may look like the next, but the labels tell a different story. Those who are looking to choose an environmentally friendly product may want to compare the amount of recycled content used to make drywall. The thought process should even extend to the location where the product is made. These heavy sheets need to be shipped from a factory, to a store or a building site.
7. CHOOSE SUSTAINABLE FLOORING OPTIONS: The focus on greener building products has led to a longer list of flooring options, using materials as diverse as strawboard, wheatboard and bamboo. The “greener” claims will often relate to how quickly a supply of the material can be renewed. Bamboo, for example, will regenerate in just five years and can be replenished 20 times faster than a hardwood tree. Cork flooring is created from a bark that will grow in just a decade. The choices extend to resilient flooring as well. Marmoleum, for example, is a natural linoleum product made with linseed oil, wood, flour, rosin, jute and limestone. Once a specific material is chosen, a closer look at the labels can offer other environmentally friendly benefits. A supply of hardwood flooring could build on a substrate made with a blend of wheat or grass. CONTRACTOR ADVANTAGE
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8. CONTROL THE LIGHTS: There is no question that some light bulbs are more efficient than others. Traditional T12 fluorescent tubes, which get their name because they measure 12/10� around, are being replaced by smaller T8 bulbs or even T5 bulbs. Different LED designs are emerging as popular choices for task lights of their own. The energy efficiency of lighting is not limited to the choice between bulbs. The addition of controls such as the digital sensors which detect daylight or a lack of movement will help to ensure that lights are turned off when they are not needed. When installing a recessed fixture, consider a lamp with an elliptical reflector (eR) or bulged reflector (BR), which will better shape the beam and allow for a light with a lower wattage.
9. GO WITH A LOWER FLOW:
The choi of everything from toilets to faucet aerators will make a huge difference in the amount of water consumed by a household. The decision to install a 6 L Ultra Low Volume toilet will use 66% less water than a traditional toilet that needs 18 L per flush. Changes like that will be particularly important to homes that have a private well and septic system, since it will reduce the strain on the tile drain field. A low-flow showerhead can also use 70% less water than its standard counterpart. When looking at these, an option with a non-aerating spray will reduce the heat losses, so those who are taking a shower will not feel that they have to crank up the water temperature. Showerhead flow restrictors can also reduce the amount of water that is consumed.
10. BE CLEAN AND GREEN: Many aggressive solvents have been replaced by citrus-based cleaners which are friendlier to the planet. Contractors simply need to be aware that the products will perform in a different way. Biodegrading formulas, for example, might need to sit on a surface for a longer period of time before they are washed away. Every option will require some extra research and planning, but with the growing interest in greener products, these choices could help to secure more of the business that will help your business grow.
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WOOD WORKS
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Canada’s lumber industry may be struggling, but there is still plenty of good news for the fans of wood construction projects BY JOHN G. SMITH
B
ritish Columbia’s interest in wood-framed construction appears to be on the rise in every sense of the word. Last year’s changes to the B.C. Building Code increased the maximum height of wood structures by two storeys, introducing the opportunity for six-storey designs, and developers have been quick to respond. The change was “absolutely huge,” suggests Mary Tracey, executive director of the Canadian Wood Council’s Wood Works! B.C. initiative. She can already count 69 of the taller wood-framed projects that are being considered, designed or under construction in Canada’s western province. Projects that were once shelved because of cost concerns have also been given a second life. “With wood, the cost savings are so significant,” Tracey explains, noting how the material and labour can be as much as 30% to 35% cheaper when compared to projects made with steel or concrete. It is certainly welcome news for a lumber industry that has struggled in the face of everything from insect attacks (the mountain pine beetle) to trade wars (the softwood lumber dispute) and an imploding housing market in the U.S. 40
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Feature Consider it another win from the Vancouver 2010 Winter Olympics, which became a showpiece for wood projects in more ways than one. The Richmond Skating Oval was able to prove that beetle-infested wood was still strong enough for construction if it was harvested quickly enough. The solid walls of Austria House offered a showcase for engineered wood products. Wood Works! B.C. was even able to cite a number of Olympic projects when making the case for taller heights, Tracey notes. As the potential applications for wood continue to expand, the construction industry is enjoying another benefit in the form of affordable products. Canada’s mills have been struggling in the midst of a weaker housing market, and that has reduced prices, explains Rick Brouckxon, LP Building Products’ national sales manager for engineered wood products. It is simply a matter of supply and demand. Canadian producers have long relied on the U.S. market, and that business has largely collapsed. Production levels at some facilities are now less than one-third of their traditional levels, he adds. “They have good selection and prices are as low as they are going to get,” Brouckxon says, noting how many mills are not even covering the costs to produce the products. “The industry is still there and still producing top-quality products. There is just no profitability at the moment.” He notes that some industry watchers expect that it will be 2015 before the U.S. market recovers. The economic reality is leading Canadian mills to focus more of their attention elsewhere. “Some have said that in a couple of years we are going to see a world wood demand increase,” Brouckxon says. Even though suppliers have found new business opportunities in Asia, it is difficult to compare the business opportunities that exist today. Most of the Canadian wood bound for China is a “utility grade” that will be remanufactured into products like pallets and packaging. “Wood has not historically been used as a residential construction material on a large scale in China,” observes Brock Mulligan, a spokesman for the Alberta Forest Products Association.
“ Every inch of a log is optimized now. Nothing goes to waste,” Tracey says. “To survive these hard times, the mills had to be efficient.” In response, the Dream Home Canada initiative is building demonstration projects in China to help promote the idea. Canada Wood China and the Sichuan Qingchuan government, for example, have signed a Memorandum of Cooperation to develop the Vancouver Village Sustainable Housing Project, showcasing Canadian wood frame construction techniques. Despite the challenges back in Canada, the lumber industry’s news is not all a matter of doom and gloom. “There is definite-
ly reason for optimism,” Mulligan adds. Even though the Canadian marketplace is much smaller than it was five years ago, it has been on the path to recovery in the past two years. In that context, prices were steady in the final months of 2010. For their part, suppliers are expected to emerge stronger than ever thanks to the ongoing productivity improvements, which have helped them weather the economic downturn. “Every inch of a log is optimized now.
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Nothing goes to waste,” Tracey says. “To survive these hard times, the mills had to be efficient.” The changes themselves have come in the form of refined production software and cutting techniques that can claim a larger share of a tree, while traditional waste is transformed into bio-fuel to run the mills themselves. “There has been a lot of innovation in terms of production,” says Brouckxon . “It is a dark time right now, but there is a light at the end of the tunnel. When things do come back, our industry is going to be in good shape to move forward.” This is not the only way that innovation is making a difference. While sawn lumber is widely used by many builders, engineered wood offerings are offering more benefits than ever before, and they promise to play an even larger role as evolving Building Codes open up more opportunities. Cross Laminated Timber (CLT), for example, is going to be “huge” in Canada’s construction industry, Tracey says, adding that the technology has been used in Europe for more than a decade. “That will be a very, very significant change to the whole landscape in the sense it would use a lot of wood.” The solid panels can be used to make taller walls, and the end result is an air tight, well-insulated structure that resists fire. At least three companies are exploring opportunities to produce the products in Canada, Mulligan says. One producer is
“ I joists, LVL (Laminated Veneer Lumber) and more recently LSL (Laminated Strand Lumber) are getting more attention from various folks because they can be used for beams and headers and studs.” making it in B.C., and another is starting up in Quebec. In fact, Engineered Wood Products of every sort are becoming more popular. “I joists, LVL (Laminated Veneer Lum-
ber) and more recently LSL (Laminated Strand Lumber) are getting more attention from various folks because they can be used for beams and headers and studs,” Brouckxon says.
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“ An LSL product can do it as well and at a lower cost.” The LSL is even replacing LVL in some applications where beams have been overdesigned. “An LSL product can do it as well and at a lower cost,” he says, referring to savings of 10% to 15%. Contractors would simply need to run the design through a beam program to ensure the needs will be met. “A lot of builders are not aware of the product,” Brouckxon adds. This could offer a clear competitive advantage to contractors who decide to use it. Since LSL is straighter, stronger and more consistent than traditional lumber, it is also ideal for projects such as garage door headers. LP Building Products’ SolidStart offerings, for example, are up to 3.5” thick. There is no need to build up beams and headers. It also resists the twisting and shrinking which would otherwise present a problem around sliding glass doors and specialty windows. Since it is straight and flat, it is an ideal option when framing tall walls, and reduces the need for shimming and scribing. Unlike traditional lumber, it will not split when notched for stair stringers.
It is not the only way science is playing a role in the lumber that you can buy. Officials in B.C. have found that they can save some of the lodgepole pine under attack by pine beetles. These destructive pests have been living in the comfort that comes with several consecutive mild winters and dry summers. Once the beetle’s eggs hatch, the larvae begins its attack on the phloem area below the bark, starving the tree of its nutrients. As if that was not enough, the beetles also carry a fungus that leads to dehydration, limiting a tree’s natural defence against a beetle attack, and staining the wood blue or grey. The good news is that the wood is still structurally sound if it is harvested quickly enough, and this was proven in how it was used to build the Richmond Skating Oval. There will likely be more wood-based construction projects to come. The Cana-
dian Wood Council is actively educating architects and the design community about the environmental benefits of the material. Besides the fact that wood is a renewable building resource, every pound of it will also capture a half pound of the carbon which would otherwise be released into the atmosphere. “When you build out of wood, you are building a structure that is acting as a carbon sink,” Brouckxon explains, referring to the environmental benefits that are drawing the attention of a growing number of architects. An average 2,400 sq. ft. wood frame house “sequesters” more than 28,500 kg of carbon. To put that into perspective, someone would need to drive an average North American car for 20,000 km per year over seven years to produce the same amount of carbon. It is just another example of the way that wood works.
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THE SKINNY
ON TRIM Millwork trends, like fashion styles, have ups and downs that contractors must follow.
BY DAVID CHILTON 46
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T
om Balcarras is a licensed carpenter, an instructor in the Renovations Department at George Brown College in Toronto. If anyone should be on top of what is new or different in millwork or trim (these two words are used synonymously here, as in the industry) it would be him. His reply to the question of what is new in trim is not as complicated as one might expect. “I truly believe that it is just like fashion design,” Balcarras says. “You know, wide ties, narrow ties; double-breasted suits, single-breasted suits; I think millwork styles come and go. There is only so much you can do with design. I think you will find designs will be based on what is popular at any given time.”
At the moment, says Balcarras, clean, simple lines are in demand, a style that is generally referred to as European. Customer preference for the sleek look is something Ian Rowe at Royal Woodworking in Bradford, Ont. has noticed about millwork. Rowe, the company’s sales manager, says for the last four or five years, straight lines have become increasingly popular among his clients, while ornate Victorian and colonial styles have started to lose their appeal. One might think that this fresher sort of millwork would be found mostly in those new homes in the moderate to medium price ranges; however, Rowe says “contemporary” product is being used in larger houses. Somewhat similarly, it is also the trim of choice at the moment for the new condo purchaser, he
continues. “It is definitely a market that has gone contemporary and is a little bit ahead of the curve. I do not know if that is where the designers put the most work, but we are seeing movement that way.” Changing too is the lumber that is being used. Ten or fifteen years ago Rowe says oak was the wood of choice for upgraded trim; these days the tendency is to stay with paintgrade product. That shift, he thinks, is also the reason for a corresponding move away from smaller trim to larger. “You will often see a lighter colour painted trim on top of a fairly dark hardwood floor,” he says. The popularity of lumber these days is a theme that Robert Macdonell, general manager at Artek, an architectural woodwork firm in Vancouver, has picked up on. “There are a lot of people who want to make an impact in their interiors with wood,” Macdonell says. Of course, as Balcarras points out, thanks to Computerized Numerical Control advances there are few if any limits in the trim sector these days. For one thing, CNC means faster and cheaper production, he says, because there is so little hands-on work necessary when it is used. Beyond industrial production, Balcarras explains that computers have also made inroads into other areas of the industry. He says some suppliers now have the software to provide customers with colour printout versions of what their cabinetry will look like once it is finished even if it starts as unadorned squares and rectangles. There are many millwork tips and tricks that turn those generic boxes in a kitchen or elsewhere into cabinetry that has the look but not at the price of custom built products. For example, wide trim comes flat or engraved and it will produce a style that runs from the most contemporary to the positively Victorian. This wide trim around the edge of kitchen doors will make them stand out, and geometrically shaped trim will provide a modern look. A Mission style feel to a kitchen can be achieved by creating small boxes in the middle of the cabinet doors using this same wide trim. Another tip is to recognize that stacking simple trim profiles together can create a unique look that is greater than the sum of
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its parts. This once-common practice fell by the wayside with the advent of industrial mills producing wider trim, but it is returning to fashion because many recognize the flexibility it allows. One further trim tip worth considering is the use of veneer plywood instead of solid wood. It is less expensive for one thing, with one estimate suggesting flat plywood stock is on average between one-third and one-half the cost of the same species in
solid wood. Veneer plywood is available in about 25 species, so choice should not be a problem. In its favour also is that the material, unlike lumber, is not susceptible to the expansion and contraction caused by humidity since solid wood is hygroscopic, which means its moisture content will rise or fall based on the relative humidity of the surrounding air. In fact, humidity can play havoc with interior trim. For example, a high quality fin-
ish will slow down movement but will not stop it. Further, during certain stages of the construction process, such as drywalling, considerable amounts of moisture are added to the air. To avoid the deleterious effects of these sudden surges, solid wood interior trim should be wrapped in plastic for storage on-site, since that protection will mean no appreciable increase in moisture absorption. It should also go without saying that interior trim should not be
KNOW YOUR WOODS
M
ost contractors could reel off the names of the lumber used for millwork, because they have been installing it for years; however, can they articulate the qualities that each of these popular woods bring to the table? Remember, not all trees are created equal.
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Why choose white pine instead of cherry or Norway maple? Cost, of course, is one factor, but there are more. It is easy to paint or stain white pine, but it also shows a mixture of grains and there is a considerable difference between summer and winter wood. Cherry provides a good finish, al-
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though light to natural finishes are recommended. Cherry wood markings are exceptional, moreover, with a fine closed grain, and timber that starts off red will turn reddish-brown with age. Norway maple has a closed grain, and resists shock and abuse, but finishes might display varying levels of
PHOTOS: ROYAL WOODWORKING
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The two photographs above were taken at Royal Woodworking’s manufacturing facility in Bradford, Ont. Ian Rowe, the company’s sales manager, says straight lines have become increasingly popular among his clientele for the past four of five years.
“THERE ARE A LOT OF PEOPLE WHO WANT TO MAKE AN
IMPACT IN THEIR INTERIORS WITH WOOD.” installed until these temporary spikes subside. One way to make sure is to measure the relative humidity with a digital hygrometer, which might cost $50. Despite the advantages of veneer plywood the material is not without some downside. It comes in sheets, of course, and so handling and cutting to size can be difficult; also, typically, its veneers are no thicker than 1/12”, so the material is not robust enough to use in areas where there is likely to be a significant amount of abuse, although that should not be a problem at all with cabinetry, doors and interior window frames. Last but not least, veneer plywood edges must be banded, which can
be tricky, whether solid wood or veneer is used. Should there be a tiny plywood edge exposed, a brown felt-tipped marker can be applied as a sort of millwork makeup. A third millwork option is reclaimed or recovered lumber. The former can come from a multitude of sources: urban demolition sites such as warehouses, factories and dismantled barns and out buildings from rural areas; the latter has typically lain at the bottom of logging lakes and rivers before being hauled out, dried and sold. Neither product is anywhere remotely as popular as shop-milled trim, but the discerning contractor may want to give such material serious thought since at least the optics of a green alternative may provide a com-
petitive advantage. Yet whether reclaimed or recovered, Macdonell says it is a niche product typically used to make furniture rather than be milled and turned into trim. “What contractors are trying to do is catch the eye of people (with such lumber),” says Balcarras. Like Macdonell, Rowe says reclaimed or recovered lumber are small market products, although from time to time they show up on company radar. Here too, and like the other two men, he suggests prudence about reusing timber. “Customer expectations must be managed,” says Rowe, a phrase that all contractors should heed.
penetration. Its cousin, red maple, is not quite as tough as the Norway, but can be used as its stand-in. It has a tight, closed grain and can be stained to look like other woods such as cherry and birch. The density of oak is hard and strong, and it has an open, porous and
dramatic grain. This means it will soak up stains, and it also offers a broad range of quality finishes. Ash makes an excellent oak substitute, with pigmented finishes bringing out a grain that is distinctive and wide open. Ash is also very hard and provides excellent resistance to shock and
wear. Basswood (sometimes known as linden), with a texture like pine, will not take as much abuse. Still, when stained it is a reasonable substitute for darker woods such as walnut and mahogany, although it soaks up finishes with dark stains being very dark and light stains bringing out the grain.
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How To
The low down on countertop care A gleaming countertop can be your calling card, therefore, help your customers keep it in top shape. BY NESTOR E. ARELLANO
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How To
H
omeowners today face a dizzying array of countertop surfaces, with granite, concrete, quartz, steel and laminates being but a few of the materials now offered. A well-informed contractor can help clients narrow down the options by providing much-needed advice on the care and maintenance each countertop surface requires. Style and price might be the top considerations for many homeowners, but getting the low down on maintenance demands could change a few minds, according to Harvey Short, president of Horizon Laminates Ltd. in Mount Pearl, Nfld. “Style and price speak to personal taste and budget, but care and maintenance requirements will eventually determine whether the countertop is a good fit with the buyer’s lifestyle,” says Short, whose company provides Castle Building Centres with a wide array of laminate countertops. Countertop maintenance can also be an additional source of income for contractors. Smart contractors can market themselves as surface restorers and arrange resealing and waxing schedules with their clients. Being upfront with customers on countertop upkeep, Short says, will not only earn contractors brownie points with the client, but could also snag more than a couple of recommendations. “That gleaming coun-
tertop is your calling card, and it will pay to have your customers keep it in top shape,” he says. Here are a few helpful tips on caring for some of the more popular countertops in the market today: Natural and engineered stones: The durability and natural beauty of granite and marble make them favourite countertop choices despite their considerable price, says Pablo Guillen, manager of Delsur Marbles Inc., a supplier of custom fabricated marble and granite countertops, fireplace hearths, tub surroundings and office furniture. To start with, Guillen says, contractors need to use the proper tools for cutting marble or granite tops to ensure a clean cut. Different stones require different kinds of diamond-tipped cutting tools. “If you use the wrong tool, you risk breaking the tool or damaging the countertop,” he says. Heavy materials, such as natural stones and concrete, are typically installed directly onto cabinetry, but they require adequate support to prevent cracking. This includes a plywood base and an underlay of cement board. A ½” underlay and ¾” plywood base will provide structure and support for a long-lasting countertop. Marble, soapstone and slate are delicate materials that scratch easily, according to Guillen. As with any countertop, homeowners can minimize damage from daily use by not cutting anything directly on the sur-
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How To
“Laminates have come a long way in emulating the look of more expensive stone surfaces at a fraction of the cost of their natural counterparts.” face. “Contractors should encourage the use of chopping boards to prevent cuts and scratches and tell homeowners not to put any hot objects, such as, pots and pans directly on the surface,” he adds. Stone surfaces can be either highly polished or honed to show a more natural matte finish. While a glossy surface may be attractive to many, scratches will not show as much on honed surfaces. Stains, liquids or wet objects should not be allowed to sit on countertops for long. 52
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Acids and stains from food can mar the surface of the counter. Liquids can seep into the pores and eventually cause cracks. The more porous a surface, the more likely it will attract stains, but even soapstone (one of the least porous stones) needs to be sealed and polished to maintain its good looks. Different surfaces require varying degrees of sealing and polishing. For instance, some granite tops need to be sealed twice a year, while others will be fine with an annual application of sealer.
CONTRACTOR ADVANTAGE
Guillen favours silicone-based sealers over their water-based counterparts, because the former are better absorbed into the pores of stone and therefore offer better protection. Cleaners with citric acid should be avoided because they can damage the surface. Neutral cleaners such as phosphatefree solutions or dishwashing soaps are ideal for cleaning most surfaces. The trick is to rinse the soap off with warm water immediately to avoid leaving marks. Harsh chemicals such as bleach and abrasive pads will also damage stone surfaces. If a countertop is stained or scratched, homeowners can find repair kits sold at many home building supply stores; however, do-it-yourself repairs to stone surfaces often are unsatisfactory, Guillen says. “In many instances a homeowner’s best bet is to call their contractor or professional restorer, who will re-polish and seal the damaged area so that it blends in with the rest of the countertop.” Engineered stones, such as quartz, are generally more durable than natural stone countertops. “Quartz is highly scratch, stain and heat resistant,” Guillen says. While granite may require sealing twice a year, quartz has no pores and does not need to be sealed, according to Guillen. Many quartz countertops also come with a lifetime warranty, but this durability does come with a high price tag. While granite costs from $40 to $60 per sq. ft., quartz is often priced at around $55 to more than $85 per sq. ft. Concrete countertops are another durable and stylish option. They also come in various colours and finishes. Concrete is typically made from a mixture of natural silica-based cement, stone and water. Like other stone surfaces, it has to be sealed and requires regular care. Many concrete manufacturers advise that paste wax be applied every several months to the surface to retain its finish. Wax should also be applied whenever the surface is resealed. Although concrete is heat resistant, installers still recommend that extremely hot objects not be directly put on the surface. “Concrete will last 100 years if treated prop-
How To erly,” according to Esther Vanee, co-owner of Anthony Concrete Design, a Burgessville, Ont.-based shop known for its concrete tubs, fireplace hearths, bars and countertops. Most stains on concrete can be remedied with water and mild cleaners. Chopping or cutting food on concrete might not chip the surface, but could still damage the sealant, rendering the counter less impermeable. Scratches may be sanded away by finegauged sandpaper, resealed and then waxed; however, Vanee recommends that homeowners consult their installers because these professionals can make sure that scratched or chipped areas are restored to match the original colour and finish. Laminates, engineered wood and wood: Laminate countertops remain the most popular choice today because of their low purchase price and maintenance cost. “Our granite and marble sales are growing, but laminates still account for a large percentage of our sales,” Short says. “Laminates have come a long way in emulating the look of more expensive stone surfaces at a fraction of the cost of their natural counterparts.” Another key selling feature of laminates is they do not require sealing or polishing and endure daily use with minimal care, says Brent Dawson, owner of Dawson Custom Countertops. The company distributes the Formatop brand of laminate countertops in the southwestern Ontario area. “Laminates are the most cost-effective countertops in the market, because they are non-porous and resist stains very well. Mild soap and warm water or the Vim brand of cleaner is all that is needed to clean laminates,” he says. As with natural stone, homeowners should avoid letting liquids sit for long on the surface. Cutting food or placing hot objects directly on laminate should also be avoided, Short says. “Once laminate is stained or scratched it cannot be repaired,” he says, but, at costs of $15 to $20 per sq. ft., they can be replaced cheaply. Engineered wood countertops are resin-treated wood particles that offer better durability and more natural looks. These products typically cost $17 to $30 per sq. ft., while higher-end products, such as the Richlite brand, are $50 to $80 per sq. ft.
Much like real wood, engineered wood develops a finish with age. It is heat resistant, but needs sealing to resist stains. Natural wood countertops are also making a comeback in many homes. Some species are naturally water resistant, but generally wood countertops will need to be sealed. Some of the sealants frequently used are varnish, lacquer, shellac, wax, oil, natural resins and wood stains. If food will be prepared directly on the surface, mineral oil would be the most appropriate finish. When scratched, wood can be sanded and refinished to retain its look. Glass: Glass countertops are heat proof, easy to clean and hardy; however, contractors should caution homeowners that this material cracks when heavy objects are dropped on it and hot pans can scorch glass when left for extended periods of time. Glass is non-porous, it resists bacteria and molds and requires no sealing. The surface should be cleaned frequently with a damp cloth or sponge and non-abrasive cleaners to avoid scratching. Metals: Durability and resistance to heat are some of the main advantages of countertops made from copper, zinc, pewter or stainless steel. A metal surface will take a hot pan better than other countertops. These tops are typically priced around $65 to $180 per sq. ft. As they are non-porous, metal countertops also resist stains and bacteria. However, copper is prone to dents and stainless steel is known to scratch easily. Metals other than stainless steel develop a finish and change colour over time. Depending on the homeowner’s tastes this can be a feature or a flaw. To retain their original finish, metal countertops need to sealed and then waxed regularly. While wax may be able to hide scratches temporarily, once a metal countertop is dented there is no repairing it. Countertop surfaces each have their inherent advantages and disadvantages. By providing clients with the basics on countertop care, contractors will help them more intelligently choose the surface that best suits their lifestyle. “In the end, it is all about the countertop that you can live with.” CONTRACTOR ADVANTAGE
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How To Assemble A Winning Team
It all starts with insurance and benefits, tools that are equally as powerful as the table saw or pneumatic nail gun. BY MARK BECKHAM
Have you ever had one of those WOW moments? Well, I had one while writing this article. You spend thousands of dollars on purchasing professional tools that make your employees more productive such as table saws, compound mitre saws, radial arm saws, pneumatic nail guns and the list goes on. You have a major investment in tools. You have insurance to cover theft. Every night, you lock your tools up so your employees can start to work again in the morning. Like I said, I had this WOW moment. What if your employees do not have the right skill sets to use the tools you provide? What if your greatest asset is not the tools you lock up every night, but the employees who show up to the job site every day? How do you keep and attract the best and brightest workers? Your business, in many ways, is similar to sports. Take football. The recent CFL Eastern final between Montreal and Toronto is a good example. Both are great teams. Both made it to the divisional finals, but only one was going on to the Grey Cup. Montreal dominated Toronto in every aspect of the game. The difference, in my opinion, was Montreal had the better players. My question to you is, “Do you have the best players on your team to win the profitable contracts?” If not, how can you attract the most skilled and productive players to work for you? Castlecare is part of the solution. If you want to attract the best people you need to offer the best program. Castlecare offers one of the best and most cost-effective benefit programs for
you and your employees. When customized to meet your exact needs, you have the tools to attract the best and brightest employees to your team. You would not build a home with substandard materials just to save a few dollars. Call-
What if your greatest asset is not the tools you lock up every night, but the employees who show up to the job site every day? How do you keep and attract the best and brightest workers? backs and repairs are just too expensive. The same is true for your business. If you want to attract and keep the best employees today, you need to offer a benefits program, otherwise, they may take their skills and knowledge to another company. I cannot build a house. I do not have the knowledge or the tools, but, I do know insurance and how it can be a very powerful tool for you and your business.
Mark Beckham, BSc, is one of the Principals of Bencom FSGI (Financial Services Group Inc.) His professional experience includes employee benefits and financial services including retirement products and insurance. He can be reached at mark@bencomfsgi.com or by telephone at 888-664-5555 ext. 301.
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Within the Castlecare financial tool box (see image below) there are a number of solutions to protect your business, your family and your employees and their families. What happens to your business in the event of a serious illness or injury? How important is
CONTRACTOR ADVANTAGE
life insurance in preserving your estate and legacy as well as protecting your business? How important are health benefits in attracting the best employees to your team? I was recently at a seminar and was reminded again that, as a nation, we are becoming more and more unfit. Lifestyle choices including diet, weight, smoking and lack of exercise account for 63% of all healthcare costs. What if you could empower your employees, through education, to become more aware of health-style choices they make and how it can lower your insurance costs? Call me when you are ready to discuss how you can leverage Castlecare to protect your most important assets.
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