Contractor Advantage March/ April 2013

COMPLIMENTARY

March/April 2013

CONTRACTOR ADVANTAGE

ALSO:

Countertops Insulation Trends Tax Audits

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CA N A DA’ S M AG 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 AC T O R S

THE MAN

CAVE

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ECO-FRIENDLY PAINTS AND STAINS ENVIRONMENTAL ENERGY OPTIONS ®

Do-It-Yourself Masonry Fusion Stone is a thin stone that is easily installed with Stainless Steel Clips and Screws.

Outstanding appearance and affordable for both interior and exterior applications.

Available in either a mortared

Dry-Stack Stone - Caramel

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or dry stack profile, Fusion Stone delivers a lifetime of maintenance free performance.

Making the Outdoors Even Greater Tough and beautiful. Moisture-resistant MoistureShield™ Composite Decking is made from 95% recycled content, and comes with a limited lifetime warranty against rot, decay and termite damage. Because it is manufactured with a unique total encapsulation process, MoistureShield is extremely durable. The encapsulation of the wood fibers allows MoistureShield to be installed on the ground, in the ground and even underwater, unlike other materials that must be elevated. The wood fibers also reinforce the plastic in the boards, making MoistureShield more rigid and reducing its thermal movement.

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CONTENTS

Features The paper chase / 18

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No business is completely immune from formal reviews by the Canada Revenue Agency (CRA).

Fuel for thought/ 22 New energy options are less costly and more abundant than ever, while natural gas and electricity remain strong.

The true colour of green / 28 There is a broader approach to eco-friendly painting and staining that goes way beyond products alone.

Countertop contenders / 34 Numerous countertop materials exist and they range from granite to believe it or not, even paper.

Inside

NEWS WATCH / 05

Silver-based mold fighter

PRODUCT SHOWCASE / 07 New and improved products BUSINESS STRATEGIES / 10 Building bench strength SMART MONEY / 12 2012 personal tax tips LEARNING CURVE / 17 Better business guidebooks

Editorial Director Castle Building Centres Group Ltd. Jennifer Mercieca Managing Editor Paul Barker Art Director Mark Ryan

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

When it comes to renovating or creating a man cave, thinking way beyond the comfy recliner is key.

Innovation & insulation / 45

ECONOMICS 101 / 14 Getting it done

MARCH/APRIL 2013 Vol. 19 No. 2

Cave dwellers / 39

Contributors Nestor E. Arellano Lawrence Cummer Victoria Downing Stefan Dubowski Brian Moran Paul Rhodes David Chilton Saggers John G. Smith

Note to contractors: Now more than ever you need to be knowledgeable about the entire building envelope.

Advertising Enquiries Vendors whose products are carried in Castle Building Centres stores have the opportunity to advertise in

Contractor Advantage

For more information or to reserve space in the next issue, contact: Jennifer Mercieca Director of Communications Phone: 905-564-3307 Fax: 905-564-6592 E-mail: jmercieca@castle.ca Published and designed exclusively for Castle Building Centres Group Ltd.

by Business Information Group Material Contact: Jessica Jubb 416-510-5194 Copyright 2012 CONTRACTOR ADVANTAGE

MARCH/APRIL 2013

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Castle goes digital! ruction t s n o c h g u o r g insulation • sidin

Castle is pleased to announce the launch of our publications in a digital format.

ng • tools • roofi

Contractor Advantage, Advantage Entrepreneur, IDEAS and Rough Construction are now available in this easy to read digital format.

Past issues of these publications are also available through our digital archive. You can sign up to receive these publications digitally or check out the archive at:

e l b a l i AvaNow

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ACTO NAL CONTR

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PREN DES ENTRE

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CONTENTS

Green Material Repeat Business s Lumber Trend

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www.castle.ca

CA N A DA’ S

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Automne 2012

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Your home is your Castle

• insulation • paint • bathroom products • flooring • siding • mouldings • railings • windows • doors • roofing

For More Information Contact: Jennifer Mercieca , Director of Communications Castle Building Centres Group Ltd. jmercieca@castle.ca 905-564-3307 ext 220

Your home is your Castle

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NEWS WATCH

Silver-based mold-fighting app makes its debut in Canada

BY LAWRENCE CUMMER

E

nvironmental Building Solutions Corp. is bringing a silver lining to the battle on mold.

The Toronto-based environmental consulting firm, which conducts mold inspection, control and remediation and deals with indoor air quality issues, recently became the Canadian distributor of EnviroShield, a coating that uses silver to prevent the growth of mold, mildew and odour-causing bacteria on wood, framing, OSB sheathing, wallboard, stucco, concrete, masonry and other porous materials.

Developed by EnviroCare Corp. of Wilmington, Mass., the coating is a water-based, non-toxic, semi-permeable acrylic resin sealant with nanoparticles of silver. It is painted or sprayed onto the surface during the construction or renovation phase. The engineered silver ions in the coating do not remove existing mold, but create a barrier that prevents mold from spreading.

Prior to being named the product’s distributor, Environmental Building Solutions tested the product with members of its customer base for five years.

Formerly known as Sick Building Solutions, the company has been conducting mold inspection and control, and illegal grow-house inspection and remediation since 1995.

Art Robinson, its president, who has a background in environmental science and microbiology, had originally planned to develop his own product based on a similar premise, but then came across EnviroCare.

He says he sought out a silver-based solution because of its environmental friendliness. Silver is so safe, he adds, it is approved for use in a broad range of healthcare products for its anti-microbial properties and it has no environmental detriments.

According to Robinson, the same cannot be said of many mold-removal options, making prevention a better choice for the environment and homeowners’ wallets.

“For over 10 years we had to use harsh chemicals to remove dangerous mold from buildings, and it is definitely easier, less expensive and much safer for the environment to ‘vaccinate’ buildings against mold damage than to clean it up afterwards,” he says.

Incidents of mold growth, Robinson says, are also growing because as highly-insulated homes become more airtight, an environment more hospitable to mold growth on ceiling tiles, wood, insulation and drywall is created.

He cites a recent report from the Indoor Air Quality Association, a non-profit association of environmental consultants, professionals and manufacturers concerned with indoor air

Art Robinson: An ounce of prevention is worth a pound of cure. quality, that found moisture, mold and other microbial contamination are among the most important indoor air quality issues.

As well as causing building materials to discolour and in some cases deteriorate, mold can create health problems, such as inflammations, allergic reactions, and respiratory infections.

For builders and contractors it could also result in litigation from unhappy and unhealthy homeowners.

Here Robinson suggests an “ounce of prevention is worth a pound of cure.” With a coating like EnviroShield contractors can eliminate mold problems before they occur. Five gallons of EnviroShield sprayed onto wood used in framing will protect an average-sized house for years. Robinson is so confident of the effectiveness of the silver-based coating that his company offers a 10 year fully-transferable warranty on both the product and labour to repair treated areas.

While the silver-based coating is new technology, it is based on age-old knowledge, Robinson says, adding that silver has long been used as a catalyst to combat bacteria growth.

“A hundred years ago in Europe they would put a silver spoon into a well to keep water from going stale, and people in ancient times would line their water jugs with silver to keep the water sweeter longer.”

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PRODUCT SHOWCASE

Building Blocks

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Innovative Products for Today’s Renovators BAILEY RC PLUS RESILIENT CHANNEL STOPS THE NOISE

Bailey Metal Products Ltd has released a new resilient channel with enhanced sound performance and increased labour savings.

A series of tests on resilient channels were performed at the National Research Council of Canada and according to the company, the results revealed an increased STC performance with the new Bailey design RC Plus.

The tested assemblies were constructed to be the same as assembly W3B listed in table A-9.10.3.1.A of the National Building Code of Canada (NBCC). That assembly delivers

an STC of 48. The same assembly with the Bailey resilient channel, RC Plus, delivers an STC of 51.

The Bailey RC Plus design installs on wood or metal framing and incorporates unique features that allow faster installation and uncompromised performance, the company says.

For more information visit www.bmp-group.com.

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SUMMERSIDE SHINGLES COME WITH 40-YEAR FINISH WARRANTY Vicwest’s Summerside Steel Shingles are precision engineered from 28-gauge steel with a double-embossed finish and as a result are designed to last longer than traditional roofing materials, the company says.

Features include: • A four way interlocking system that tightens on all four sides to resist wind uplift and heavy snow loads.

• A simple interlocking system that allows for faster installation time.

• Colour matched flashings and accessories for a complete roof system.

• Carton-packed for easy handling.

• The ability to be installed over existing shingles (where building codes allow), thus reducing labour costs.

In addition, finishes reflect the light from the sun, keeping a home or cottage cooler in the summer, which reduces energy costs.

The shingles are available in an assortment of natural colours to enhance and compliment the look of a home.

Where building codes allow, Summerside Shingles can be installed directly over most traditional roofing materials, reducing install time and eliminating landfill waste.

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PRODUCT SHOWCASE

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NEW 0.8” OPTION FOR STYROFOAM BRAND CLADMATE XL

To help builders and contractors meet code changes across Canada, Dow has expanded its Styrofoam Brand CLADMATE XL product family for wall assemblies, attics or interior basement walls to include 0.8” thickness (R-4).

Using Styrofoam Brand CLADMATE XL extruded polystyrene insulation in the wall system reduces thermal bridging by insulating the entire wall, including the wood studs. This also decreases the potential for condensation in the wall that can cause mold, mildew, odours and wood rot, as well as many other moisture -caused problems.

It also helps to reduce air infiltration. An estimated 40% of a typical home’s heat loss is caused by air entering and exiting through cracks and crevices.

However, a continuous layer of the insulation creates

an effective air barrier over the entire wall, significantly reducing air leakage.

Walls sheathed with Styrofoam BrandCLADMATE XL insulation have less potential for concealed condensation. The sheathing offers increased R-value, keeping wall cavities warmer.

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CERTAINTEED EXPANDS RESTORATION MILLWORK OFFERING

CertainTeed has expanded its line of Restoration Millwork cellular PVC exterior trim, beadboard and accessories, which are engineered to look, feel and work like top-grade lumber.

Unlike wood; however, it is made with a long-lasting, lowmaintenance material that is resistant to rotting, warping, moisture and insects, the company says. It can be cut using ordinary woodworking tools and fastened with nails or screws.

Restoration Millwork is resistant to yellowing caused

by UV rays, resists freezing during winter months, features a Class A (Class 1) flame spread classification and is backed by a 25-year limited warranty.

Additions to the Restoration Millwork product line include: •N ail Hem Flange for One-Piece Corners, which is designed to quickly and easily install directly to the wall to avoid any face nailing of the corner •T rimboard with Cut-out, designed to allow a flush installation around new construction doors and windows with built-in nail flanges, without the need to make perfect miter cuts at the corners.

Trimboard with Cut-out is available in CertainTeed’s TrueTexture woodgrain finish, as well as a smooth finish.

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BUSINESS STRATEGIES

Building Bench Strength

Proactively planning to increase bench strength is well worth the effort. The time to start is now.

BY VICTORIA DOWNING

A

t a recent Remodelers Advantage conference, I asked the room full of renovation company owners about hiring. Three quarters of those in the room indicated that they would be hiring new people within the next six months. This was exciting news, since it indicates an optimistic outlook toward the future. Growth! Yes!

The question then is: who to hire?

SO LET US START. ASK YOURSELF THESE QUESTIONS:

trigger another exit and even more distraction. The best way to avoid this unhappy scenario is to build bench strength through smart, thoughtful hiring, and a plan to grow replacements from within.

I think it is clear that developing a plan to increase bench strength in advance is well worth the effort.

First, assess your current organizational lineup to see if you have employees that have the potential to move to advanced positions in the future. This is especially important for the roles that are the most difficult to fill such as production manager or a top salesperson.

Victoria Downing is president of Remodelers Advantage Inc. and is a leading authority in the remodeling industry.

She has authored and co-authored several industry books, including The Remodeler’s Marketing PowerPak. She can be reached at victoria@remodelersadvantage.com or by phone at 301 490-5620 ext. 105.

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CONTRACTOR ADVANTAGE

What is the financial cost involved in hiring a replacement for a key position?

Some studies say up to 15 times the annual salary of the position.

What is the loss-of-productivity cost?

This can be huge as it affects the entire company as a number of staff members are forced to shift focus to hiring.

What effects do these costs have on your business and on your remaining key players?

When everyone works harder to compensate for an exit, they can become disgruntled.

How will you find this new teammate?

How much time will it take?

Depending on the process used, expect to invest 100 hours or more between recruiting, reviewing information, interviewing and onboarding.

PHOTO: THINKSTOCK IMAGES

Before you move forward, take a look at your current organizational structure and think about the future. Plan to hire employees that will help you build your bench with an eye to the future.

Bench Strength is the competence and number of employees ready to fill vacant leadership and other positions.

Do you have employees in the wings to take on more leadership if the business needs it? This need could develop because the company has grown and needs additional skilled managers, or because an existing key manager leaves the business, taking his or her talent and skills with them.

Unless you prepare in advance, either one of these scenarios could see you scrambling for new employees. This scramble inevitably costs valuable time and money.

Most important, if you hire out of desperation you might end up paying more than fair value for your new staff person, or hiring the wrong person, which could

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BUSINESS STRATEGIES

If you hire out of desperation you might end up Start with the positions that have a deep impact on the business and would be the most difficult to do without. For these key positions, you should have an understudy in the wings. Not sure who on your team has the potential? Ask. Talk to employees about their goals. During these discussions, you will quickly identify those who are ambitious and want to excel. Also, look for the “energy generators.” These are people who bring vigour to the table. They will fuel you and each other.

Second, review job descriptions.

Clearly defined positions are most crucial when the cost of replacing someone is particularly high, such as leaders and key management.

Some of the skills and traits required to lead may only develop fully over time, and during a crisis you do not have time to wait.

paying more than fair value for your new staff person, or hiring the wrong person, which could trigger another exit and even more distraction.

Third, hire smart. Picking your team is 90% of the battle. Know what skills and experiences different positions require and use it to find the best people. Think ahead and make sure that everyone you hire has the potential for advancement.

Fourth, train, train, train. Help your team members get ahead. Give them the opportunity to take on more responsibility and learn new aspects of positions within the company.

For example, do your lead carpenters have an opportunity to learn scheduling?

Is the production coordinator learning the

basics of estimating? Are you teaching the entire team how to decipher financials and understand how to generate profits?

This type of ongoing training will help individuals be ready to move up when you need them. Another benefit is that as the rest of the staff sees a team member move up, they will get excited about the opportunities that exist for them as well, and that means retaining your talent far longer than in the past.

Building bench strength is a positive move for the company and for each individual on the team.

Choose Once, Choose Well.

Turn any room from conventional to sensational with the West End™ Collection of contemporary doors and mouldings. West End™ interior doors feature an embossed linear design, and paired with our contemporary trim and mouldings create a modern, clean and sophisticated look.

Select from three interior door styles, a range of modern French door models, and contemporary finishing elements including door and window trim.

Moulding & Millwork’s high quality doors and finishings give your home a look you’ll love.

Let us help you get started.

www.mouldingandmillwork.com

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CA

SMART MONEY

2012 Personal Tax Tips

You can make your personal tax filing easier this year through advance preparation and knowledge.

F

ollowing the end of 2012, personal tax season will soon be upon us.

Therefore this is a good time to recap some things to do, and some things to know for the current 2012 tax year. As with many things we do, some amount of time spent planning the exercise will pay off in making the process run smoothly and avoiding additional costs and last minute panics.

look too low you can search for the missing receipts.

If you have a professional service provider prepare the returns, be sure to send them in well before the filing deadline. The preparer will need time to process the infor-

Things to Do The following is a list of items that often apply to taxpayers. A more comprehensive Personal Income Tax Organizer can be found by going to www.crowesoberman.com and searching for “Personal Income Tax Organizer.”

Whoever prepares your and your family’s personal income tax returns, whether you or a professional service provider, planning time is best spent making sure that all your documents are complete and organized. Preparing written or electronic summaries of income and expense amounts can often act as a check for you to make sure you have completed everything: for example, if the expenses

Consider preparing summaries of the following: •R ental income and expenses analysed by category of expense for any rental properties owned; • Business income and expenses, again analysed by category; and • Employment expenses including professional and union dues.

Paul Rhodes is a partner at Crowe 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.

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CONTRACTOR ADVANTAGE

mation, and you should allow a time cushion for issues to be identified and resolved.

This becomes critical when you have unusual transactions in the year. For example the sale of a family cottage will likely require some historical research to determine facts such as: the original cost of the property, the cost of additions and improvements made to the property since purchase, which may qualify as costs for purposes of determining the gain realized, and if necessary the V-Day value (the fair market value at December 31, 1972).

Review your personal income tax installments for 2012. If necessary make a catch-up payment to cover any shortfall in installments to avoid additional interest accruing.

Collect all your receipts for income tax credits, such as medical expenses, child care receipts, political contributions, charitable donations and child fitness expenses.

Pay special attention to charitable receipts for large donations to make sure there are none missing; charities can often issue replacement receipts. Note also that many pharmaceutical companies can provide you with a printed statement listing all your medical receipts for the year.

Assemble all your investment income slips, including T3, T5, T5008 and T600s.

Review the slips to make sure you have slips for all accounts and all financial institutions and for all transactions.

Review the gains and losses realized in your investment account and make sure that you have the adjusted cost base (ACB) shown for all the dispositions. This is especially important when you have transferred financial instruments from one investment account to another.

PHOTO: THINKSTOCK IMAGES

BY PAUL RHODES

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SMART MONEY

Note that your broker can usually provide you with a statement that lists all trading activity and all realized gains and losses to make this review easier.

Identify any dispositions of stock to related persons.

Things to Know If you or your spouse had business income during 2012 the filing deadline is extended to June 15, 2013; however, the income tax for 2012 is still payable by April 30, 2013. You need to make sure you have the liquid funds available to pay on time to avoid interest.

Special reporting is required to be made to Canada Revenue Agency for certain types of foreign transactions. For example, reporting is required if: • At any time during the year you own specified foreign property with an

original cost of $100,000. Specified foreign property includes, for example, shares of foreign corporations, even if they are held in a Canadian investment account, funds held in a foreign bank account and foreign rental property. • During the course of carrying on a business you had transactions with non-arm’s length non-residents during the year that exceed $1 million.

The penalties for failure to comply with the foreign reporting rules can be severe. Therefore if you have foreign transactions or held foreign assets during the year you should consult your professional advisor to determine whether you have any reporting obligations.

Your RRSP contribution limit for 2013 is based on your earned income for the 2012 tax year. You should consider mak-

ing your contribution to your RRSP now so the funds can accumulate tax free income within the fund for longer. The contribution will be a deduction from your 2013 taxable income.

Personal income tax returns that are electronically filed are processed in a shorter period of time than paper filed returns. Therefore you should consider e-filing your return in order to obtain a faster refund; the refund can be received in less time if you opt to use direct deposit.

If there is a balance due the due date for paying is still April 30, 2013 even if the return is e-filed.

This article has been prepared for general information. Specific professional advice should be obtained prior to the implementation of any suggestion contained in this article.

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CA

ECONOMICS 101

Getting It Done

It is possible to do more in the next 12 weeks than your competitors will in 12 months.

BY BRIAN MORAN

The barrier standing between you and the life you are capable of living is a lack of consistent execution. Effective execution will set you free. It is the path to accomplish the things you desire.

The 12 Week Year One of the things that gets in the way of individuals and organization effectively executing and achieving their best is the annual planning process. As strange as it sounds, annual goals and plans are often a barrier to high performance. This does not mean annual goals and plans do not have a positive impact. There is no question you will do better with annual goals and plans, than without any goals or plans; however, this annual process inherently limits performance.

Brian Moran is president and founder of Strategic Breakthroughs, with more than 30 years of expertise as executive, coach and consultant. An expert and speaker in the field of leadership and execution, his new book, “The 12 Week Year” is a guide to creating results through focus, commitment and accountability. To learn more, visit www.BrianPMoran.com.

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The trap is referred to as “annualized thinking.” At the heart of annualized thinking is an unspoken belief that there is plenty of time in the year to make things happen. December looks a long way off in January, and we act accordingly.

We lack a sense of urgency, not realizing that every week is important, every day is important, and every moment is important. Effective execution happens daily and weekly.

Forget about a year. Let us redefine it: a year is no longer 12 months, but now only 12 weeks. There are no longer four periods in a year; that is old thinking. Now, there is just a 12-week year, followed by the next 12-week year, without end. Each 12-week period stands on its own. This is now your year.

The 12 Week Year creates a new end game date.

This is the point at which you assess your success (or lack thereof). It narrows your focus to the week and more to the point, the day, which is where execution occurs. The 12 Week Year brings that reality

PHOTO: THINKSTOCK IMAGES

I

n an effort to improve, most companies and individuals search for new ideas and strategies. They seek out new marketing techniques, sales ideas, cost-cutting measures and customer service enhancements, hoping that these new approaches will deliver better results.

The number one factor holding back individuals, and entire companies, from achieving what they are truly capable of is not a lack of knowledge, intellect or information. It is not lacking some new strategy or idea. It is not the need for additional training. It is not the size of their network of “connected” people. It is not the absence of hard work, natural talent or luck.

Of course all these things help, and all play a factor, but they are not the things that make the difference.

You have no doubt heard the saying that knowledge is power. Knowledge is only powerful if you use it. It benefits no one unless the person acquiring the knowledge does something with it.

Great ideas are worthless unless they are implemented.

The marketplace only rewards those ideas that get implemented. You can be smart, have access to lots of information and great ideas, be well-connected, work hard and have lots of natural talent, but in the end, you must execute.

Execution is the single greatest market-differentiator. Great companies and successful individuals execute better than their competition.

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ECONOMICS 101

Execution is the single greatest market-differentiator. Success comes from executing better than competitors.

THE WEEKLY ROUTINE: PLAN YOUR WEEK: Take a few minutes at the beginning of each week to plan your week. Use your 12 Week Plan to identify the tactics that are due this particular week.

The Weekly Plan is not a glorified to-do list; rather, it reflects the critical strategic activity that needs to take place this week in order to achieve your 12 Week Goals.

front and center. When you set your goals in this context you no longer have the luxury of putting off the critical activities, thinking to yourself that there is “plenty of time” left in the year. Once 12 weeks becomes your year each week matters; each day matters; each moment matters.

The result is profound. Most people experience an improvement of about a 30% in their first 12 weeks when operating on the 12 Week Year platform. Here are three steps to help you achieve more in the next 12 weeks than most will in 12 months: 1. Set a 12 Week Goal—Annual goals are helpful but they lack immediacy and urgency. Twelve-week goals create focus and urgency.

Get focused on what you want to make happen over the next 12 weeks.

The goal should be an outcome (income, sales production, dollars saved, pounds lost) and represent significant progress towards your longer-term vision. Limit your goals to a maximum

of three, and make certain each goal is specific and measurable.

2. Build a 12 Week Plan—A 12 Week Plan is much more effective than traditional planning, because it is more predictable and focused. The key here is less is more. A 12-week plan embraces the notion of being great at a few things versus mediocre at many.

For each goal, you will need to identify tactics. Tactics are the daily and weekly actions that drive the accomplishment of the goal. If the goal is the “where,” then the tactics are the “how.” Here, again, less is more. Keep it focused on the critical few. Identify the four or five actions that you need to take daily and weekly to accomplish your goal, those are your tactics.

3. Apply the Weekly Routine—Goals and plans are helpful, but they are not enough. The key to your success is executing your plan. To ensure you execute at a high level, adopt the Weekly Routine.

SCORE YOUR WEEK: At the end of each week you will want to score your execution.

In the end you have greater control over your actions than you do your outcomes. The most effective lead indicator you have is a measure of your execution. You are scoring your execution, not your results. Calculate a weekly execution score by dividing the number of tactics completed by the number due.

MEET WITH A PEER GROUP: Did you know that you are seven times more likely to be successful if you meet regularly with a group of your peers? Find two to three other people who are committed and willing to meet for 15 to 20 minutes each week. In your meeting, report on how you are doing against your goals and how well you are executing. Encourage and challenge one another.

That is it; three simple steps. Plan your week, score your week, and meet with a group of peers. How easy is that? Do them, and you will definitely improve. Here is the catch: the steps are easy to do, and even easier not to do. So make a commitment to engage with them for the next 12 weeks, and watch what happens.

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PPG

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LEARNING CURVE

Better Business Guidebooks Two books help business owners grow from within by motivating employees and building on past successes GRATEFUL LEADERSHIP McGraw-Hill When employees are engaged, they are passionate and feel a deeper connection to their work. Grateful Leadership from McGraw-Hill presents an approach for business owners who want to achieve the bottom line, while fostering a valuedriven workforce and building stronger professional relationships with customers, stakeholders, and employees.

The book shows how to create a more positive and meaningful connection between you and the people you lead. The skills detailed are a catalyst for positive changes in the workplace that will enhance productivity, reputation and overall performance.

Author Judith Umlas, an expert in leadership training, provides the rationale, tools and methodology to build a company culture based on the free expression of gratitude, and she reveals simple, but remarkably effective ways for leaders to build a culture in which each individual employee possesses:

• Courage to make important decisions; • Willingness to take initiative; • Trust in the organization and fellow employees; and, • Motivation to strive for continuous improvement.

Acknowledgment is a basic human need and a powerful motivator.

People want to make a difference. In a culture of gratitude, employees stay, while unappreciated employees leave.

Grateful Leadership features stories from business leaders that attest to the potential of delivering superior results that enable the owner of a business to meet stakeholder expectations.

It also allows him or her to outperform through an approach that acknowledges and affirms employee contributions.

It is a best-practices guidebook to employee engagement, staff retention, and increased productivity.

With it, readers will learn how to motivate and inspire their teams, organizations, customers, and themselves through a series of actionable next steps.

GROW THE CORE Wiley Grow the Core from Wiley turns conventional wisdom about business growth on its head and provides a proven formula for growing your business in recessionary times.

While it is a common belief among business leaders that the best way to grow their businesses is by expanding into new markets, virtually all top–performing companies achieve superior results through a leading position in their core business. Unfortunately, there is very little in the way of practical advice on how to do this, according to author David Taylor.

Grow the Core shows how to grow by selling more of the services that made you profitable, rather than relying only on stretching your brand into new markets. It provides powerful tools, techniques and tips on how to apply them to your busi-

ness today and also contains a program of workouts road-tested by the Taylor’s consultancy, the brandgym.

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CA

PHOTO: THINKSTOCK IMAGES

FEATURE

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CONTRACTOR ADVANTAGE

CA

Paper The

FEATURE

Chase

Prepare yourself for a tax audit.

BY JOHN G SMITH

A

popular saying suggests that death and taxes are the only certainties in life. Maybe it is only natural that the two certainties can combine in the form of tax audits which scare business owners to death.

No business is completely immune from these formal reviews by the Canada Revenue Agency (CRA). Some taxpayers are chosen at random, and the CRA has been known to focus on industries which handle a lot of cash. Contractors often fall into the latter category.

All it can take is a call from an unhappy customer. “If [a customer] paid cash, they know they have something over the contractor,” says David Rotfleisch of Rotfleisch and Samulovitch Barristers and Solicitors. “The CRA makes it a point of following up on any single complaint.”

It is not the only way that contractors have attempted to keep more than their fair share of business revenue. Some try to shift profits from one tax year to the next, although the unusual shifts in a company’s profit margins will tend to pique the CRA’s interest.

Other contractors have asked friends for fake invoices in exchange for a share of the total amount, but auditors will track down the friends who failed to report the income.

Meanwhile, living expenses and meals might be claimed on tax returns even though they have nothing to do with the business. “You get people trying to write off their entire lives,” Rotfleisch says.

Successful businesses may even be more likely to be audited than their smaller counterparts, as the CRA looks to track down the biggest sources of revenue. “You use your audit resources where you get the most bang for the buck,” he says.

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Dale Barrett, a tax lawyer and principal at Barrett Tax Law, suggests that contractors might be targeted because many of them lack comprehensive business practices: “They may be very good contractors, they may have great businesses, but their records usually are not great. They usually do not have perfect accounting of all their purchases. They do not have a great accounting of the difference between the reimbursement money that has gone back into their account versus money from actual sales.” Issues like that are often traced to small businesses that do not have trained bookkeepers on staff.

Regardless of the reason for the added attention, auditors will pour over every receipt and journal entry in the search for unreported income or over-reported expenses.

“Their job, effectively, is to try to maximize the income to the country,” says Rotfleisch.

“It is up to us to put our best foot forward and show them why they are wrong.”

The audit process itself will be fairly similar from one business to the next.

Tax auditors will set an appointment to visit the workplace to review books and 20

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records. Questions will be posed about specific entries. Several weeks after auditors leave, a “proposal letter” will arrive outlining any proposed adjustments to the tax returns. Any arguments against the adjustments will typically need to be made within 30 days. “Every audit, 100% of the time,” says Barrett, “they will send you a reassessment.”

“You will never convince them of all your points by responding to that proposal letter. It is not going to happen,” he says. “A lot of people believe if they have been a good boy and they filed their taxes properly and they have been honest that they are fine, but that is not the case. Even if you filed your taxes perfectly, one way or another they are going to come in and try to find something.”

Of course, the CRA’s Taxpayer’s Bill of Rights gives contractors the chance to challenge any findings. It is one of the reasons that Barrett stresses the need to use a tax lawyer as well as an accountant.

“An accountant’s job is to add the numbers up and to show the calculations. A lawyer’s job is to argue,” he says.

CONTRACTOR ADVANTAGE

“If we are having problems with the auditor and we think the auditor is being unreasonable, we will typically escalate it and speak to a supervisor,” Rotfleisch says, referring to how early challenges are voiced. These can move up from a team leader to the head of auditing in a district office. The Taxpayer’s Bill of Rights also allows for a legal review. “It is us against Revenue Canada,” he says of the meetings in Tax Court. “We call our witnesses. They call their witnesses. We argue law. It is a full-blown trial.”

The potential penalties are not limited to the owed taxes on unreported income, or the value of inflated expenses. Taxpayers can also face gross negligence penalties or even face criminal tax evasion charges. “CRA loves to apply what they call their gross negligence penalties. These are penalties of 50% of the tax owing,” Barrett explains, referring to penalties applied when taxpayers knew they were doing wrong, or should have known better.

There are ways to protect against such penalties ahead of time. The CRA has a voluntary disclosure policy which allows taxpayers to report over-claimed expenses or under-reported income. It will even offer a break on the related interest.

There are simply limits to when this policy can be leveraged. “Once they say, ‘We’re auditing you,’ it is virtually impossible to do a voluntary disclosure,” Rotfleisch says.

When it comes to the audit itself, Barrett also prefers to act as a buffer between an auditor and his client, and holds related meetings in his office rather than a client’s workplace. “I never want to have a situation where they ask the client something and the client pauses or hesitates,” he says. “I can hesitate. I can tell the auditor that, ‘I have no idea, let me find out.’ … If they have to take more time [when answering a question], they may sound cagey.”

He has also been known to challenge the assumptions that some auditors make. Contractors would not expect to pay taxes on the cash and cheques used to reimburse the cost of materials, but an auditor may think these payments should be recorded as taxable income, Barrett says as an example.

Other payments could have come from a contractor’s benefits plan, covering a portion of prescription drugs or time with a physiotherapist. Any claims like these

PHOTO: THINKSTOCK IMAGES

Use a tax lawyer as well as an accountant.

An accountant’s job is to add the numbers up and to show the calculations. A lawyer’s job is to argue.

will need to be backed up by the required paperwork. “If you cannot provide perfect documentation to show that the $600 that went back into your account was because you had your teeth done, that will show up as income,” he adds.

Vehicle expenses represent another popular target for auditors. Contractors who arrive with a shoebox full of fuel receipts will often be asked to deliver much more information. “The auditor is like a god, oftentimes. It is this figure that comes from the government, that knows everything, that has got power over you, and they say it is an absolute requirement to have [a] vehicle log, but it is not necessarily true,” Barrett says.

The receipts can be justified with other paperwork which identifies when trips were made to specific job sites or a local building centre. “You can reverse engineer these things,” he says.

Many future challenges can be addressed by requiring subcontractors or labourers to provide complete invoices.

Those who work with formal businesses should require invoices with a Business Number or GST number. Individuals, meanwhile, should be offering invoices with addresses and other identifiers like Social Insurance Numbers. The tax auditors, after all, will want to be able to verify any of the expenses. “If you have got Joe Smith the tiler who is sending you an invoice … there may not be a Joe Smith,” Barrett explains, referring why this will attract an auditor’s attention.

“It may be you putting money in your own pocket and writing a fake invoice.”

The CRA will need to be able to review Joe Smith’s tax return and verify that the money was earned.

As forthcoming as taxpayers need to be during any tax audit, Barrett stresses that there are limits. Too much information or too many documents could lead to additional charges. He also likes to protect the names of a contractor’s clients during any collections exercise.

Otherwise, the contractor’s clients could receive a letter notifying them about any unpaid taxes. “When those letters go out, you lose your reputation; you look like a fool; people wonder whether or not they can rely upon you to complete their jobs.

They end up cancelling contracts or not giving further work, and it is just one of the very quick steps to putting somebody out of business,” he says.

TAXPAYERS CAN EVEN USE AN AUDIT’S TIMELINES IN THEIR FAVOR. Regular tax returns can be audited

ply to several additional years that

under the “normal reassessment pe-

were filed at the same time.

riod” within three years of the date

“There are certain ways oftentimes

of an assessment, and four years of

to delay an auditor so they get to the

the GST assessment, he adds. That

end of their term,” says Barrett. In

means if a 2010 tax return is submit-

some cases, the auditors will ask busi-

ted in June 2011, and assessed in Au-

nesses to sign a waiver that allows the

gust, it can be subjected to an audit

search to dig deeper into company re-

during the three years that follow.

cords. “They are bulletproof as long as

The clock also begins ticking when

you sign it and knew what it was,” he

a return is filed rather than when it

says. “Why someone would sign one is

was due, so a reassessment could ap-

absolutely beyond me.”

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CA

FEATURE

Fuel for

Thought New energy options are less costly and more abundant than ever, while natural gas and electricity remain strong.

T

here has never been a better time for householders to choose the fuel option that is right for their property. Those options range from the enormously popular such as natural gas to biomass pellets, whose share of the market is tiny. Other choices include oil, electricity, geothermal heat pumps and good old-fashioned wood.

According to Natural Resources Canada, natural gas is by far the country’s 22

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most common household energy choice.

The federal department says more than 4.2 million Canadian homes use that fuel to run their furnaces with 743,000 households using electricity and more than 650,000 homes warming their dwellings with heating oil. Other energy options, such as propane, have yet to break the six-figure mark. Natural Resources Canada also says there are almost 7 million household furnaces in Canada versus

CONTRACTOR ADVANTAGE

1.5 million boilers. Most of the latter, of course, can be found in older homes with one or two radiators to a room.

The choice of natural gas has been driven by three factors. The first and most important has been the discovery of massive natural gas reserves in Canada. This means that supplies are safe and free from the vicissitudes of geo-politics; while there have been rancorous exchanges between Central and Western Canada over energy,

PHOTO: THINKSTOCK IMAGES

BY DAVID CHILTON SAGGERS

CA

FEATURE

it seems unlikely that supplies will be cut off or reduced as happens in other parts of the world. The second factor has been the leap in crude oil prices, the overwhelming home fuel of choice of the previous generation. Consider that just a decade ago the inflation-adjusted price for a barrel of crude was US$26.66 compared to US$92.85 in early January this year.

Larry Widdifield, managing partner of Ottawa Valley Energy Consultants

in the capital, which deals extensively with the residential market, says natural gas is the default choice for almost all Canadian households.

“Most people are going the natural gas route for many reasons,” says Widdifield.

“I do not know if being green would be at the forefront of that; it is usually the cost they’re looking at.”

He says householders concerned about their carbon footprint are about

10%-12% of his clients. Wayne Rowbotham, president of EnerTest Corporation in Orillia, Ont., says natural gas is the most readily available energy and one of the lower priced fuels around. Another reason for the popularity of natural gas is the federal government’s funding, now ended, of various energy saving incentives for homeowners, say both men. Various provincial programs continue to offer householders energy incentives.

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For all its advantages, natural gas is not without some significant downsides.

Burning the fuel releases carbon dioxide (CO2), which most scientists agree, is a leading cause of global warming. Still, natural gas, for the same amount of heat, produces 30% less CO2 than oil and 45% less than coal.

Further, experts say that extracting the fuel over a lifetime actually may make it dirtier than oil, and that natural gas is an air pollutant since some is released into the air during drilling. Natural gas is also non-renewable, so eventually a replacement for depleted supplies will need to be found.

Electricity is the next most common whole-home energy source in Canada.

Of course, as with other fuels electricity rates are market driven, so cost efficiency is something to consider, as are the facts that it is available in most places and that some forms of electric heat are easier to install than others.

There are two principal kinds of electrical whole-home heating systems. They are forced air and radiant heating. The former, as everyone knows, pushes out hot air from the heat source and delivers it to the home via ductwork. Radiant heat, however, is less well known despite an early-but-sophisticated version being used by the Romans thousands of years ago.

With radiant heat, energy is emitted from a floor (which is how the Romans used it), a wall or an overhead panel and warms people rather than heating the air the way a forced air furnace does.

The internal air temperature for radiant heat can be lower than for those heated more conventionally. Further, there is far less air circulation inside a room warmed by radiant heat and thus the spread of airborne particles is much reduced.

Perhaps one of the most intriguing and potentially welcome sources of energy is geothermal heat pumps. Larry Widdifield says that right now about 1 or 2% of the population uses them.

“You will save money using heat pumps over the lifetime of owning the home, but most people do not want to put the money out to buy them. You can invest $50,000 to $60,000.”

Widdifield describes heat pumps as “a bunch of holes in the ground.” These holes in the ground use the earth as a heat source in the colder weather and as a heat sink in the warmer.

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“You drill down and the temperature is much warmer (or cooler) than it is on the surface,” he continues. “You pump this fluid, a cooking alcohol is what they use now, down the hole and when it comes back up it is already at 55°F, so you are only heating (or cooling) from 55°, which is much easier than heating from minus -10°.”

The heat that is used comes from solar energy that the earth’s surface has absorbed down to a depth of about 20’.

Ah, yes, energy from the sun. The capital costs of obtaining it from geothermal heat pumps may still be a major obstacle, but the lessons learned from the growth of photovoltaic solar panels are instructive. Five years ago in Ontario it would cost a homeowner $65,000 to $75,000 to set up a 10kw array, says Widdifield.

“Now that cost is in the $40,000 range.

If this continues, in less than 10 years it will be a very good option for people. Not only are the prices dropping, but the cells themselves are getting smaller.”

Clearly, energy choice is more affordable and more varied than it has ever been, which may be the major clue to where our heat and light will come from in future: not one source but many.

Design Talk Questions and Answers with Warren Heeley, president, The Heating, Refrigeration and Air Conditioning Institute of Canada in Mississauga, Ont. (Edited and condensed for publication.)

Q: Over the last 10 years what direction has the residential heating market taken in terms of appliances and types of fuel?

A: One is that residential heating products have been under governmental pressure for probably more than 20 years to improve efficiencies so that the energy used in the home is reduced. The second thing has an environmental bent to it, obviously, by reducing energy use. We have been introducing both higher efficiency and emerging technologies for heating. An example of that would be ground source heat pumps.

Q: How is the heating industry responding to the demand for more and better for less?

A: W hat has happened in the last 20 to 25 years is that we moved the bar in conjunction with government to eliminate the lower-efficiency units.

Now all we have available are high-efficiency furnaces. The options for buying have increased, whether you want to buy one at the federal minimum now, which is 90%, or go as high as possible, which is 98%.

This has been the industry responding to consumer and regulatory requirements.

Q: Natural gas seems to be the default energy choice, and there’s still some oil and there’s still some electricity being used.

A: The point is that gas is not available everywhere. The issue of emerging technologies in our mind is a matter of two things. One is getting the homeowner to understand what the investment could involve and how it could fit into a heating model for their home. The standard heating system in Canadian homes historically has been forced air, hydronic or electric baseboard. With that in place, and with economies of scale, the understanding of those products by the industry and the consumer is fairly entrenched. I think the problem with emerging technologies that discourages the homeowner from purchasing them is simply the cost. There are huge energy savings with some of them, but it’s that first cost that homeowners must get past.

Q: Looking out over the next five to 10 years what practical direction do you think home heating is going to move in? Remain as it is with minor tweaks or do you anticipate something more?

A: L ooking out on the residential heating side of things, we’re getting close to maxing out the technology additions or technology changes they can make to heating products to get more efficiency. When you get up to 98% efficient as an option you haven’t got a lot of room left. Still, there are a number of standards being developed to look at the electricity used by the furnace blower, so we will see a rising requirement in electrical use in furnaces and boilers as time goes on.

The existing stock of housing is going to be the challenge, because most of these incentive programs are really aimed at the retrofit market. It’s not new construction any longer, because many changes have been made to the building codes to improve construction and energy products. It is now a question of asking, ‘What about all the homes that are out there.’

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CA

FEATURE

COLOUR of Green THE TRUE

There is a broader approach to eco-friendly painting and staining that goes way beyond products alone.

BY NESTOR E. ARELLANO

N

ot too long ago, George Zaragiannis, a Toronto-based painter spotted another painter casually dump the remaining contents of a low-VOC (volatile organic compound) paint down the city drains as he was cleaning up after a job.

It was an incident that made Zaragiannis, proprietor of Eco Painting Inc., scratch his head and wonder about how fellow contractors view the eco-friendly trend.

“How can you consider yourself an ecofriendly painter if you use a low-VOC product and then turn around and dump the leftover where it can harm the environment?” he asks. “Real eco-painting goes beyond products. It is about one’s outlook and practices.”

Today eco-friendly is no longer a trend but rather the new normal. From a mere buzz word

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it has morphed into a byword summarizing a slew of characteristics and principles applied to various industries and practices.

As Zaragiannis says: “Clients are no longer enthralled when you tell them you employ green practices. They expect it.”

That is why getting a handle on ecofriendly best practices is important for contractors whether or not they pitch their business as “green.” It is no longer about catching a ride on the environmental bandwagon to bag new clients, but rather keeping on top of industry developments in order to retain existing customers.

Industry experts provide some valuable insights on new green products in the market and offer helpful advice on the latest ecofriendly best practices:

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PHOTO: PARA PAINTS

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Regulations changing products About two years ago, manufacturers were telling Contractor Advantage that the industry was headed towards zero-VOC content. The industry is already there, at least for many interior products.

Some of the most harmful chemicals around are found in VOCs. These are unstable compounds that, once applied on surfaces, vapourize in the air and react with other elements to create ozone and other pollutants which can cause nausea, breathing difficulties, watery eyes, headaches and other symptoms. VOCs continue to seep out of paint for several years.

With this knowledge, it is only natural for many consumers to look for low-VOC paints and stains. Contractors, in particular, should take note: painters regularly exposed to VOCs have been found to have greater risk of developing cancers and other health problems.

Since the 1990s regulations have steadily reduced the amount of VOCs in paint and stain products. For instance, today in Canada, regulations cap VOC content for flat paints at 100 g/litre and up to 420 g/litre for industrial maintenance products. Content ceilings for stains are around 250 g/litre to 400 g/litre, depending on the type of product.

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Manufacturers, though, have gone further by offering products with much lower VOC content. Some specialty shops like the U.S.-based Mythic Paint offer zeroVOC interior and exterior paints.

“Low-VOC regulations have virtually eliminated the popular oil-based or alkyd products,” says Shawn Pilon, marketing and procurement specialist for Nicholson and Cates, the distributors of Cabot Premium Stain. “The move now is towards acrylic resins and waterbourne latex products “ Common oil-based solvents contain VOCs such as formaldehyde and toluene, while water-based solvents found in latex paints have much lower or zero -VOC content.

One example would be PPG’s Manor Hall line of exterior paints, according to Bob Fierheller, Canadian sales manager for the company.

The latex product is 100% acrylic and has a VOC content of 50 g/litre. It is also self-priming in most applications. The line can be used on wood, masonry, vinyl siding, fibre cement and primed metal surfaces.

The company’s Olympic brand of exterior stains already had a low-VOC content but recently lowered it further.

The older oil-based product with alkyd resin had 246 g/litre of VOC. The newer

CONTRACTOR ADVANTAGE

water-based version which uses acrylic and oil resins now has 100 g/litre of VOC. Hybrid products that combine the best features of waterbourne paints and alkyds are also in demand, says Greg Belfall, senior brand manager for Para Paints.

For instance, the company’s 4700 Ultra Hybrid interior/exterior line of paints offer the durability, performance and ease of application found in oil-based paints as well as the easy soap and water cleanup of latex. The line has a VOC count of 50 g/litre.

Low-VOC impact on practices Low-VOC formulas have less solvent and use a different type of emulsion that has a low minimum film formation temperature (MFFT). Essentially it means that low-VOC paints and stains will handle and perform differently than their traditional counterparts.

For instance, low-VOC paints will dry faster, have less open times and less flow and leveling, according to Zaragiannis. The fast drying time means painters and strainers need to “cut” surfaces in smaller increments.

“This means I have to work faster because it is more difficult to keep a wet edge, but this can also be an advantage because faster drying times mean I can apply the next coat earlier and the job gets done sooner,” he says.

Another difficulty is that some low-VOC products have inadequate block resistance.

Block resistance is the capability of paint or stains, when applied to two surfaces, to not stick to itself when pressure

is applied. Products with good block resistance helps keep a door from sticking to the jamb or a window from sticking to its frame.

Some other quick low-VOC application tips are: • Proper surface preparation becomes more critical as low-VOC products do not have great adhesion when it comes to grimy, chalky or peeling surfaces.

• Learn to apply products quickly.

• Basics still apply. Brush from dry to wet, brush with the grain and finish the stroke by feathering.

• As with traditional products, choose a synthetic bristle for latex and water based products and natural bristles for oil-based products.

• Additives such as thinners that extend the wet time of products can lead to dirt pickup, lower mildew resistance and yellowing. Also, in some jurisdictions it is illegal to ad paint thinner to low-VOC paint.

Design Talk

PHOTO: PPG, PARA PAINTS

Creating Curb Appeal

Colour, either with the use of paint or stains is one of the quickest ways to ramp up a home’s curb appeal without spending thousands of dollars.

In Canada, the majority of homes are made of brick and stucco. Largely because of this, according to Bob Fierheller, sales manager for PPG Canada Inc., the makers of Pittsburg Paints, many homeowners tend to default to white and off-white palettes when picking their exterior colours.

For those afraid of picking colours that clash, Fierheller suggests consulting paint manufacturers’ colour pallets, which group colours and shades that go together well.

Homeowners can also opt for staining their exterior wood surfaces. Like paint, stains protect wood from harmful UV rays, water, mildew and insects and they also now come in many different colours. Their varying degrees of transparency and translucence allow woods grains to show through the stain.

Fierheller suggest using more transparent stains for newer wood and applying lest transparent or opaque stains to older or damaged surfaces to hide imperfections.

Because stains have higher oil content than most paints they tend to have longer drying times, stretching up to 48 hours or more in some instances. Paints can also be applied in colder temperatures of up to 2° C, while stains typically require a minimum of 15° C. Home owners can stir clear of drab façades and jazz things up by using more than one paint colour or stain shade, says Gary Belfall, senior brand manager for Para Paints.

“I am seeing more and more houses using contrasting or complementing colours up front,” he says. “For instance, a deck or front porch suddenly becomes more interesting if the when rails

or posts are a different colour or stain from that of the decking.”

Colour trends tend to reflect the economy and society’s temperament, according to Janine May, architecture and design representative for Para Paints. She says the more positive socio-economic outlook for 2013 will bring out “more vibrant and saturated” colours.

This year, interiors will see more blues, teal and navy as well as greens, purples, violets, orange and yellows. If you are not sure these hues will translate well to exterior surfaces, more traditional colours like browns, maize, muted greens and grays are still a safe bet.

Giving your front door a fresh coat of paint is the easiest way to alter your front entrance’s look, according to David Bromstad, designer and representative for Sherwin William’s HGTV Home labeled paints.

“If you want something a little bit more eye catching and fabulous, go with the complementary colours,” he said. “You also want to pick colours that highlight the things you love about your home and hide the things you are not so crazy about.”

FOLLOW THESE TIPS: • Generally sidings are of lighter or brighter share than the roof.

• Trim colours should complement the colour of the roof.

• Remember bright colours and vibrant colours will appear brighter in strong sunlight.

• Use bright colours for accent or small spaces.

• Create a bold entrance by using a strong colour for your front door so it stands out from the rest of the house.

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Launches Mobile App Available Now

Apps for iPhone and Android App for Blackberry available in 2013

The app features a store locator, detailed Castle location specific information, mapping and Request-a-Quote capabilities.

The free mobile app is designed to provide quick and convenient access to Castle locations across Canada.

Find the nearest store using the built-in geo-tracking system and have access to maps, driving directions and products in a user-friendly format. Searches can be performed using multiple search criteria and allows users to find the nearest Castle location(s) based upon your current location, or search by postal code, city and/or store name.

Each Castle store link includes store contact info, departments and services, dealer weblinks, hours of operation, location maps and directions. A handy request a quote function for in-store products and services allows Castle customers to get product pricing and availability at a touch of the screen from participating stores. The app also includes touch email address or telephone number allowing instant message or connection to a specific store.

The iPhone® and Android™ app is available for download on www.castle.ca/app The iPhone® app can be downloaded from the Apple App Store and is compatible with iPhone 4 and higher. The Android™ smartphone app requires Android 2.1 or later.

Apple and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries.

App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

For More Information Contact: Jennifer Mercieca Director of Communications Castle Building Centres Group Ltd. jmercieca@castle.ca 905-564-3307 ext 220

Eco-friendly best practices True eco-friendliness takes more than a can of low-VOC formula. To talk the talk and walk the walk, contractors need to focus on sustainable practices with every job.

Some steps can help direct you towards the green path: • Start with containers. Consider manufacturers that use biodegradable or recyclable containers. This will help reduce your contributions to the landfill.

• Opt for cloth rather than plastic splash covers that eventually end up in landfills.

• Pick products that do not require solvents for clean-up. There are many paint and stains that now require water only or water and soap for clean-up.

• Never dump leftover paints, stains and other formulas down the drain.

Many distributors now receive leftover paints and stains. Also take the time to identify recycling depots near the jobsite and deposit left overs and debris there.

• Use low-VOC primers and colourants.

• Consider purchasing locally manufactured products. Shipping imported products adds to environmental pollution.

Fierheller of PPG also suggests talking to clients beforehand about their options and your eco-friendly intentions.

“It is best to determine on the onset what each party’s responsibilities are in terms of practices and expenses in the proper disposal of leftover material,” he says. “This way, contractors are not stuck with the disposal bill and there are no potentially toxic materials left lying around in the client’s garage or basement.”

In the next issue of

PHOTO: PARA PAINTS

CONTRACTOR ADVANTAGE

• Staffing Amidst Market Skill shortages • Outdoor Designs: Landscaping and Lighting • Ceilings • The Green Home • Siding • Flooring Trends 2013

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CA

FEATURE

COUNTERTOP CONTENDERS There are numerous countertop materials and they range from granite to believe it or not, even paper. Below we examine the pros and cons of 10 different options.

BY STEFAN DUBOWSKI

G

one are the days when homeowners seeking unique kitchen counters had just one real standout option. (Granite, anyone?) Now there is a wide range of materials to choose from: glass, soapstone and concrete among them.

Each material has its strengths and weaknesses.

Not every material makes sense for every application.

Which is best for your next project? Read on to see how 10 different options compare in terms of pros, cons and, most importantly to buyers, price.

1. Granite

This natural igneous rock varies in colour, and every slab features bespoke hues, so it is easy to find one to match homeowners’ tastes. Granite used to be considered prohibitively expensive, but prices have dropped over the last few years.

Pros: Granite withstands heat better than some other materials do; contact with hot pots and pans does not discolour it. It is easy to keep clean. The colour does not fade over time.

Cons: Although most stone emits some radiation, certain granite samples have reportedly exhibited higher-than-average radiation levels, causing safety concerns.

The material is heavy, so the cabinetry underneath may need additional structural support. Some granite countertops require resealing every year.

Price: This ranges widely, from $30 to $300 per square foot depending on the quality and the competitiveness of the market.

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Bottom line: Granite suits customers who want a luxurious natural stone and who

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do not mind having to apply a sealant regularly.

3. Copper This metal changes over time from its original orange tinge to darker colours, which gives it character. A new variation called colour copper actually comes from the factory featuring those dark patches in various patterns.

Pros: A single sheet of copper can cover the counter and the backsplash for a seamless finish that is both aesthetically pleasing and hygienic.

Cons: It dents easily. Some people say it needs regular maintenance: a wax sealant applied every six months to help protect the surface from excessive wear. Others insist that copper countertops should be grounded so they cannot be electrified. (Copper is an excellent conductor of electricity.)

Price: $100 to $175 per square foot.

Bottom line: Copper works best for clients who seek character and who are not excessively hard on their counters.

PHOTO: CANADIAN SOAPSTONE, THINKSTOCK IMAGES, COLOR COPPER

2. Soapstone Often used as a material for sculptures, soapstone consists primarily of talc, the same mineral found in talcum power.

Soapstone is relatively soft.

Pros: Since it is soft, scratches can be sanded out. What is more, if you drop a glass or a plate on a soapstone counter, the material absorbs some of the impact, making for fewer broken dinnerware items. Soapstone is considered more ecologically friendly than other natural stones: soapstone quarries tend to be smaller, so extraction is less taxing on the environment.

Cons: Its softness also makes soapstone susceptible to scratching and chipping.

Over time, the colour will darken. (Some people see this as an advantage. The patina gives the surface character.)

Price: $50 to $100 per square foot.

Bottom line: Recommend soapstone to clients who want an unusual natural stone.

4. Concrete This mix of cement, water and aggregate brings an industrial feel to kitchens and bathrooms. It can be poured on site or precast. Concrete countertops can feature integrated sinks for complete uniformity.

It is a porous material, so a sealant must be applied.

Pros: Concrete is exceptionally heat resistant, so it is ideal for kitchens. It can be stained or tinted practically any colour.

Cons: Homeowners must wax the surface every six to nine months, to maintain water resistance. Some people say wet items left on poorly or unevenly waxed concrete countertops leave damp patches that are ugly and difficult to remove. Depending on the weight of the counter, cabinetry may require structural enhancement.

Price: $65 to $160 per square foot.

Bottom line: Concrete suits projects calling for a custom look. Warn customers about the maintenance required.

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6. Quartz

5. Stainless steel

Steel is not just for commercial kitchens anymore. It is available in varying grades, which represent the chemical composition of the material. Grade 304 is the most common. It is considered stronger than other grades and is scratchresistant. A separate numbering system from one to eight indicates surface polish. The higher the number, the shinier and smoother the steel is. FYI: shiny steel shows fingerprints. Many designers recommend four as the best blend of shine and camouflage.

Homeowners have complained that it is difficult to find contractors who have experience installing stainless steel.

Pros: Steel is easy to clean, so it is considered excellent for food-preparation areas. It provides a modern, utilitarian look that some people find chic.

Cons: It shows fingerprints and dents more easily than harder materials. It can make for a noisy kitchen.

Price: $50 to $100 per square foot.

Bottom line: Steel suits clients who seek a commercial-chic look.

This mineral is available in “natural” and “engineered” varieties. Natural quartz comes in slabs. Engineered quartz is a mix of natural quartz and polymer resins, combined into a hard, naturallooking material. A wide range of colours is available.

Pros: Quartz is non-porous, so it is moisture resistant. Homeowners do not have to reseal the material, so it is easier to care for than granite and others that need regular resealing. It is durable and scratch resistant.

Cons: Like granite, quartz is heavy, so cabinetry may need structural enhancement. Damage, although unlikely, is difficult to repair. For the time being, quartz does not have the cachet of granite, so it is not a substantial selling feature for houses.

Price: $100 to $200 per square foot.

Bottom line: Quartz is an excellent alternative to granite when customers do not want to worry about regular resealing.

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7. Glass This is a striking countertop material, available in a wide range of colours and textures. These days, the most prevalent examples feature a soothing green-blue hue that suggests a calm, Zen-like environment.

Pros: Glass is non-porous, so it cannot be ruined by moisture. It is high on the heat-resistance scale, so hot pots will not leave marks.

With so many colours and textures to choose from, it is easy to find the right fit for each homeowner’s particular style. Recycled glass countertops score green points.

Cons: It can crack and chip, and it is nearly impossible to repair, so replacement may be the only remedy. It is prone to scratches.

Fingerprints can be glaringly apparent.

Price: between $60 and $300 per square foot, according to style and colour.

Bottom line: Glass works best for customers who want a sleek, easy-maintenance counter, but it is not ideal for clients who are hard on their kitchens.

8. Solid surface

10. Wood

Corian is the best-known example of this engineered material, which consists of plastic and stone. Solid surface materials are available in a range of colours.

Pros: It is moisture resistant and keeps its colour regardless of sunlight. It is relatively easy to care for: no sealants or waxes required; buffing is all that is needed to repair scratches.

Cons: Solid surface is considered less heat-resistant than other materials, so hot pots could damage it.

Scratches and dents are possible.

Price: $60 to $100 per square foot.

Bottom line: Recommend solid surface for projects where ease-of-maintenance is the top priority.

The butcher-block countertop consists of wood strips (maple or other varieties) glued together. Wood suits both rustic and modern settings when it is paired with appropriately historic or contemporary accessories.

Pros: It is relatively easy to repair if damaged. Just sand the top and apply a coating to restore an abused surface.

Cons: Wood is vulnerable to moisture. Water can seep into seams and sink cutouts, discolouring the counter.

Price: Wood is extremely versatile and prices reflect that: $30 per square foot for a basic countertop; $200 per square foot if it includes carved features and other design elements.

Bottom line: Wood suits customers who want counters that exude warmth and who do not mind the maintenance required.

PHOTO: THINKSTOCK IMAGES, GLASSLAB, RICHLITE

9. Paper Yes, paper. Products such as EcoTop, PaperStone and ShetkaStone consist of recycled paper and environmentally friendly resins. It comes in various colours and textures.

Pros: Paper-derived products are stain and heat resistant. They are easy to clean and high on the “green” scale.

Cons: These materials are difficult to work with. It is particularly challenging for installers to cut the products precisely, so gapping can occur. Homeowners should be ready to apply wax or oil to ensure the surface retains its stain resistance. The colour of the counter could change over time. (Some people might consider this a benefit.)

Price: $50 to $70 per square foot.

Bottom line: Recommend this material for homeowners who want to minimize their carbon footprints and rein in their budgets.

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FEATURE

CAVE DWELLERS Hired to renovate a man cave?

Think beyond the comfy recliner.

PHOTO: THINKSTOCK IMAGES

BY JOHN G. SMITH

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M 1

an has evolved since the days of early cave dwellers. Our posture has improved at the very least, and while Neanderthals decorated the walls of caves in Northern Spain, we can safely assume they would have been more impressed by the crisp images on a 55” 1080p flat panel TV. As far as we have come, however, there is no escaping the draw of today’s man caves, which offer sanctuaries for important features like favourite recliners, wet bars, and game-broadcasting video screens. (“Grog want watch SportsCentre. TSN’s Jay Onrait funny. Ugh.”) The clients who hire contractors to design and build spaces like these are obviously looking for something more than a bit of drywall and an old recliner. Luckily, there are plenty of ways to create a modern man cave that will make a lasting impression.

Remember the fundamentals

In many cases, man caves will involve converting a basement into liveable space.

Before renovations begin in these areas, the Canada Mortgage and Housing Corporation stresses the need to address any underlying moisture challenges. The early signs of related problems can be identified by anything from a damp smell to the chalky stains known as efflores-

cence, decaying wood that touches the concrete, or even standing water.

Solutions can involve extending downspouts away from the building or improving drainage below window wells.

Small cracks in concrete walls might need to be patched with a cement-based material or filled with a hydroscopic material.

A polyethylene barrier might need to be laid over the concrete slab before installing new flooring. Even the ductwork for a nearby dryer might need to be rerouted to limit a source of humidity.

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3

PHOTO: THINKSTOCK IMAGES

2

There are finishing touches worthy of a toast, and that might require a wet bar.

Those who install the bars close to an existing bathroom will have the benefit of being able to tap into a common holding tank with little effort. Plumbing, however, is only one consideration. Projects like these can also require a source of power for the beer fridge.

When it comes to deciding on the dimensions for this work, a custom-made bar will need to be 42” high to accommodate typical bar stools, with the top reaching about 12” beyond the frame so that visitors can actually belly up to the bar. Anyone looking for a particularly long surface will also need to plan additional supports, while shelves for storage underneath can be made with everything from ¾” plywood to MDF. The final finishing touches can even include a piece of pipe to serve as a foot rest mounted about 9” from the floor.

If beer is not the beverage of choice, wine connoisseurs might be attracted by the potential of a man cave with its own wine cellar. Spaces for that purpose will need to be located away from hot water tanks or other sources of heat that would push temperatures above the preferred 14˚ C. Humidifiers may also need to be added to keep humidity hovering around 60%. Since light can also be an enemy, these storage areas should also have a solid door and darkly painted walls.

Maximize the space

Those working in the basements of older homes face extra challenges when trying to maximize the living space, requiring steel posts and footings to replace brick posts. Valuable inches can also be reclaimed by replacing a 40-gallon hot water heater with an energyefficient tankless water heater that can be installed inside cabinets or closer to where the hot water is actually consumed.

Make no mistake about it: These are projects where every inch counts. Look no further than different games that can be a focal point of any man cave.

A 7’ pool table will need a 13’x16’ space to accommodate a standard 58” cue, according to Brunswick Billiards. An 8’ table with a 44”x88” playing area will require 13’6” x 17’ for the same cue. Smaller areas are possible, but that might require players to adopt a 48” cue.

Any projects mimicking the look of

Belly up to the bar

a British pub, meanwhile, will obviously feel incomplete without a dartboard.

Those who want to mount one of these boards will need to ensure the middle of the bullseye is 5’8” off the floor, with an oche (the mark in the floor where a throw begins) carefully measured 7’ 9-3/4” away from the face of the dartboard. Another option is to measure the diagonal distance between the middle of the bullseye and the oche, and ensure it is exactly 9’ 7-3/8”.

4

Shine some light on the features

A few well-planned renovation choices can even shift attention to favourite pieces of sports memorabilia or other prized possessions. Sure, a simple series of shelves or hooks will support these items, but they can also be assembled to look like 72”x15” lockers.

Lighting will make a difference of its own. Yes, it is a cave, but there is no need to live in the dark.

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Recessed light fixtures are a popular addition in most basement renovations, and can be used for general, task and ambient lighting. Extra fixtures may also be needed in areas that are decorated in dark colours which can absorb light like a sponge absorbs water.

According to Canarm, a 3” GU10 or CFL bulb will help to highlight options like works of art, but a 4” GU10 will shine concentrated beams on focal points like the wall with a fireplace. A 4” PAR20 can be a good choice for general lighting because of its seamless coverage, while a 5” bulb or a larger option will offer more radiant lighting through the room.

The bulbs are only part of the decision.

A fixture with directional trim will allow the light to be pointed toward a specific area, while stepped baffles will offer a wide stream of light.

If the bulbs are being used to offer uniform lighting, the fixtures should be 4’ to 5’ apart. Task lights or accent lights should be spaced an equal distance apart, and those who are trying to light an accent wall will want to match the distance between each light fixture to

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Plan for the electronics

the distance between the lights and the wall. Electronics will require some careful measurements, too. Audiophiles know that a square room can create standing waves which affect a stereo’s base. The best rooms for sound will be rectangular, and have an uneven length, width and height that cannot be divided by a common denominator. Any video screen, meanwhile, should be mounted high enough so that the centre of the screen will be at eye level when someone is sitting in their favourite chair.

It is not the only consideration when designing a space for electronics. Contractors should also consider where electric outlets will be located, and where the coax cable for the TV feeds into the room. Those who are installing projection screens, meanwhile, may want to darken the surroundings with shutters, directional lights or dimmer switches.

Of course, electronic toys like these will generate extra noise that needs to be controlled. A liberal layer of fibre-

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glass batting can be coupled with resilient channels which separate the room’s studs and drywall, and any remaining openings can be tackled with caulking and foam gaskets.

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Upgrade the flooring

Of course, few options will make a bigger difference in the overall comfort of the man cave than the choice of flooring. Those who inherited spaces where a carpet and thick underpad were simply laid on top of a poured concrete floor will be familiar with the musty odours that emerge.

Any proper subfloor should be level within 3/16” over a span of 10’. High spots in the concrete can be attacked with a grinder, while low areas can be filled with a 3,000 psi levelling compound.

Engineered wood products can offer popular options that are easy to clean and offer an insulating barrier from the subfloor. Just keep in mind that there are differences from one product line to the

next. The top layers can be laid on cores made of everything from MDF to HDF, while the quality and thickness of the top layer will play an important role in resisting damage. Finishing touches such as waxed edges, meanwhile, can help to protect against the damage caused by minor spills.

Other options include carpet tiles that can be easily replaced if damaged, selected cork products, or even stained concrete.

Armstrong notes that a laminate floor with a tough wear layer and solid inner core made of a plastic resin will keep the laminate stable and flat, while also resisting moisture.

Aside from the materials and construction time, contractors who are unfamiliar with basement renovations may want to build one extra cost into any quotes. The cramped quarters in a basement, and the narrow passages that lead into them, can add to the time needed to remove debris or load building supplies.

Once all the work is done, the biggest challenge may be finding the will to leave.

Maybe it is time to spend the profits on a man cave of your own.

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FEATURE

INNOVATION &

INSULATION Note to contractors: Now more than ever you need to be knowledgeable about the entire building envelope.

BY LAWRENCE CUMMER

PHOTO: THINKSTOCK IMAGES

C

ontractors are seeing increased demand for insulation installs and related products, but with a new twist as a result of stricter building codes.

“No matter how you cut it, R-values in national and provincial building codes are increasing, not just for new constructions, but also upgrades,” says Ron Van Pelt, vice-president of sales at Guardian Building Products Distribution Canada Inc. “Where the market is really changing, though, is that people are now looking for solutions; it is no longer a product-based market.”

This new model means homeowners are asking contractors to provide more options and insights into how to achieve their comfort and energy efficiency goals.

It also forces contractors to be better educated on the options available.

“If you don’t have that ability, homeowners are going to go to someone else who does,” Van Pelt says. “Education is becoming much more important than the traditional buying-and-selling relationship.

“The Internet has evened out the playing field and made the homeowner that much more demanding. If you don’t adapt, you’re going to lose business,” he says.

Improved consumer knowledge means insulation manufacturers and distributors need to create and carry products that cover all areas of the housing envelope.

For example, in today’s insulation market, one solution does not fit all needs. Innovation continues to take place around insulation products to increase R-values in individual projects.

Contractors also need to look at combining products (such as insulated sheathing with foam or fibreglass insulation) in a bundled solution to meet high R-value needs.

As well, innovations around particular insulation-related products continue, with examples like increased durability from house wrap, Van Pelt says.

Going green Due to its role in lowering energy consumption and a home’s CO2 footprint, insulation upgrades are one of the first logical places for homeowners to look when trying to ‘green’ their homes.

“Insulation is generally the cheapest thing homeowners can do to save money on their energy bills,” says Jeff Smith, installation/project manager at Quality Home Improvements of Vancouver.

Provincial rebates can make insulation upgrades even more of a no-brainer for homeowners. While many retrofit grants and rebate programs ended in 2012 or early 2013, Smith stresses the value for contractors of staying up to date on the local rebates available to better serve customers.

Still, energy efficiency gains alone are not the only thing green in the insulation market. Over the years, manufacturers have paid a lot of attention on greening their products.

Alongside the availability of material choices such as soy or cellulose (made from newspaper waste treated to be flame retardant), which claim low environmental impact, standards like fibreglass have achieved new levels of eco-friendliness over the past decade.

Fibreglass insulation manufacturers across the industry have removed formaldehyde from their products, turning the country into a formaldehyde-free zone, Van Pelt says. Today fibreglass insulation uses as much as 70% recycled content coming from sources like curb-side glass waste.

In addition, shipping fibreglass insulation is more efficient, reducing the number of trucks needed to ship the same amount of insulation.

“Homeowners are going eco-friendly, and want healthier options,” says James Ivarson, owner of Calgary-based contractor 4 Weather Insulation Inc. He says to meet that expectation his business turns to eco-friendlier products such as those CONTRACTOR ADVANTAGE

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Tips for success Successful contractors say that competition, particularly around price, is becoming fierce in the insulation market, but there are a few ways they ensure continued gains.

In keeping with a more solutionbased approach, listen to what the homeowner is saying and, more importantly, what they are trying to achieve. Do not simply focus on products to be installed.

“People are calling us because they have a cold house or high utility bills and they are trying to figure out how to fix those problems,” says Doug Clark, owner of Home NRG Savers Inc. based in Bowmanville, Ont. “If somebody calls us and just wants a price for an insulation top up on the phone, we always try to convince them that they should have a full attic inspection because most of the time there is more to it than can be solved by just blowing in insulation.”

In particular, Clark says that more often than not air leakage is part of the problem. The good news is that, thanks to more educated consumers, it is becoming easier for his company to tie in air-leakage reduction to attic insulation upgrades.

“You need to really communicate what is going on in the building envelope,” he says. Of course that requires an understanding of the building science on the part of the contractor.

Often the best solution to propose to a homeowner, based on their home’s needs, is often not the simplest. Quotes from less qualified contractors may come in cheaper because they are not looking at the entire picture, which reinforces the importance of educating homeowners to the value of your suggested upgrade.

“You sometimes compete with one-trick ponies that are really good at insulation, but do not necessarily have a full knowledge of building,” he says.

Pay attention and take your time Ivarson notes the importance of setting insulation blowing machines to the right air pressure when using spay foam or blown-in insulation, something that inexperienced contractors and DIYers sometimes miss.

“These guys will run the machines too fast, at 3,500 or 3,600 rpm, and they will fluff the material up more, and when you do that you actually have less insulation but it looks like you have a lot.

“A couple of years later it has all settled and loses performance, whereas we guarantee our insulation for 10 years to have the R-value.”

As well as guaranteeing good work, top-notch insulation contractors also need to pay attention to the customer service techniques that any successful contractor follows.

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“Pay attention to cleanup,” Smith says. “It makes a heck of a lot of difference to customers. If you are running a 100’ hose into someone’s house and going around corners, be careful not to damage anything.”

An efficient cleanup is so important to homeowners that Ivarson tries to give bonuses to workers who perform notably above and beyond in that area.

“I have had homeowners ask where I found the guys, and want to give a special thanks to them, because they have left the place cleaner than it was when they came in.”

Smith also points out the importance of having staff wear the right safety gear such as gloves, goggles, respirators and Tyvek coveralls. It is not always comfortable in a cramped attic, he admits, but safety comes first.

Mind ventilation and airflow As much as reducing air leakage can be important in improving the home’s performance, Clark urges against bundling a scope of work that just includes it in an attic upgrade. He used to do that, but found himself being undercut by contractors who were simply blowing insulation. “Splitting up the insulation top up and air leakage reduction makes it easier for the homeowner to make a comparison.”

Ensuring building performance does not rest only on insulating products, but an expert insulation installer must have a working knowledge of ventilation. As an example, less skilled installers will block airflow to vented soffits, causing moisture to form, which can lead to mold and mildew.

Ensure proper ventilation during insulation installs and upgrades through use of soffit ventilation chutes that will hold back insulation from completely covering the soffit vents, and use a proper ventilation fan to exhaust air into the outdoors.

Remember as well that insulation is not an air barrier. Again, look at the house as an entire system, and offer homeowners the benefit of draft-proofing and air-sealing if it needs it.

In addition, seal off bypasses from the house to the attic, especially in cases where there is little room for insulation. Of course, it is crucial to cut off all air-leaks in the roof first, before installing insulation and preventing access. Draft-proof chimney clearances, around lights, and around plumbing, because it is likely that previous builders missed these spots.

To maintain the required 2” clearance between chimneys and combustible material (like many insulations) wrap the chimney with a fire-retardant insulation. Build a drywall box around older pot-lights that are not rated for insulation contact to create the clearance required.

When looking at insulation as part of a complete system, Smith uses the simple metaphor of dressing for a cold Canadian winter.

“If you are wearing a wool sweater and it is windy out you still feel the wind, but put a windbreaker over top and you are warm,” he says. “That’s the idea: your air barrier should be as tight as possible and the insulation should be right on top of it.”

PHOTO: THINKSTOCK IMAGES

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