Contractor Advantage May / June 2011

Contractor Advantage COMPLIMENTARY

C A N A D A’ S

May/June 2011

MAGAZINE

FOR

PROFESSIONAL

CONTRACTORS

PLUS:

Paints of A Different

COLOUR

Working with Others Insulated Concrete Outside Tools Garages Waterproofing

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The Hardest Working Team in the Building Industry ®

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™ © 2008, VANOC.

May/June 2011 Vol. 17 No. 3

Contents ®

Castle Building Centres Group Ltd., with building supply outlets in every province, is Canada’s leading supplier of lumber and building materials to professional contractors, builders and renovators.

Publications Mail Agreement #40006677 Return undeliverable Canadian Addresses to: 100 Milverton Drive, Suite 400 Mississauga, Ont. L5R 4H1

Editorial Director Castle Building Centres Group Ltd. Diane Jones Managing Editor Paul Barker Art Director Mark Ryan Contributors Nestor E. Arellano David Chilton Lawrence Cummer Victoria Downing Stefan Dubowski Don Hutson Josh Kerbel Paul Rhodes John G. Smith Advertising Enquiries Vendors whose products are carried in Castle Building Centres stores have the opportunity to advertise in

Features Working with others / 22 Contractors must hone their communications skills because relationships are one building project they cannot afford to overlook.

Getting more from the garage / 28 Garages have become storage spots, workshops and supplementary lounges and there is money to be made.

Paints of a different colour / 36 Homeowners are once again beginning to embrace vibrant colours and the latest choices have a decidedly “retro” appearance.

Outside activity / 42 Features such as added insulation or rubber gaskets can make a real difference in the life of a power tool.

Sealing the deal / 48 Moisture and water seepage can bring a basement to ruin. Contractors can play a pivotal role in ensuring that does not happen.

MAGAZINE

FOR

PROFESSIONAL

Soaring energy costs and building code changes are driving greater interest in insulated concrete forms.

55

CONTRACTORS

For more information or to reserve space in the next issue, contact: Diane Jones Advertising Manager, Phone: 905-564-3307

Fax: 905-564-6592 E-mail: djones@castle.ca Published and designed exclusively for Castle Building Centres Group Ltd. by Business Information Group Material Contact: Jessica Jubb 416-510-5194 Copyright 2011

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A foundation of energy savings / 55

Contractor Advantage C A N A D A’ S

28

Departments NEWS WATCH / 5

Bright forecast at Annual Meeting and Convention

NEW PRODUCTS / 10

New and improved products

ONLINE MARKETING / 13

Video can grow your business

BUSINESS STRATEGIES / 14

Plan for profitability

SMART MONEY / 16

The shareholder agreement

ECONOMICS 101 / 18

The perseverance factor

LEARNING CURVE / 21

Customers and contracts

CONTRACTOR ADVANTAGE

MAY/JUNE 2011

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Royal Estate shingles are designed to offer homeowners exceptional beauty, durability and value. They’re available in four natural-stone colors: Shadow Slate, Mountain Slate, Taupe Slate and Harvest Slate. All have algae-resistant granules embedded into the surface layer to keep Royal Estate roofs looking spectacular, year after year making this a lasting investment.

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News Watch

Economy Definitely On The Mend

PHOTOS: MONICA REID AND PAUL BARKER

BY PAUL BARKER

Rancho Mirage, Calif. – Castle Building Centre dealers and suppliers attending the organization’s 2011 Annual Meeting & Convention here in March had to feel upbeat after checking in to the Rancho Las Palmas Resort & Spa with its vast open air pool area, 18-hole golf course and breathtaking views of the nearby Santa Rosa Mountains.

If the setting and 28°C “spring” conditions in the desert were not enough, delegates also flew or drove home knowing that Canada, in particular, and also the entire North American economy is definitely on the upswing, which is good news for contracting professionals.

The continued turnaround was a key theme of Dr. Peter Andersen’s annual presentation and economic forecast, which took place on the Thursday during a business session that featured a number of speakers including Roy Prevost, founder of Oakray Marketing Services Ltd., Mike Whitlock, president of Tannian Consulting Inc., Castle president Ken Jenkins and James Jones, Castle’s vice president of national marketing.

Andersen, who obtained his doctorate in economics from Harvard University, had encouraging news for building suppliers and contractors alike across Canada.

“Recovery is a key word and it is in a new phase,” he said.

Andersen described 2010 as a “transition year” in which the economic numbers had stopped declining, but there was still some serious work left to do.

“I am sure you all felt the same way. When the policy stimulus wore off, what was going to happen then? Were we going to slide back? We were still anxious and not feeling too confident this time one year ago. Well, we are beginning to pick up speed.”

He predicted that the job numbers will increase dramatically, much of it the result of something he described as replacement demand: “We are going to see the job numbers really pick up. Once we get the job growth that will sustain consumption growth and capital spending, which

Speakers at the meeting included Mike Whitlock, president of Tannian Consulting Inc. (top left), economist Dr. Peter Andersen (top right) and Olympic gold medalist Mark Tewsksbury (bottom right). In the third row photo, Castle president Ken Jenkins (r) is shown with Ron and Barb Van Pelt and Dan and Linda Ohmer from Guardian, while bottom left (James Jones (r.) Castle’s vice president of marketing, is pictured with Lawrence Werbicki of Steel Craft Door Products. Shown in the middle photo in the bottom row are Castle dealers and board members Jamie Adams (l.) of Allen Lumber Holdings Ltd. in Woodstock, Ont. and Brent Perry of Alf Curtis Home Improvements Inc. in Peterborough, Ont. Perry assumed the role of Castle’s 2011 chairman of the board at the event.

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News Watch will create more job growth. We have this favourable cycle developing.

Renovation is going to be fed by these underlying economic fundamentals of job growth, income growth and consumer confidence and the stock market, Andersen added.

“Residential renovation is tied in with resale activity. What we are seeing in the resale market across Canada is that it is balanced and we are moving from being a buyer’s market to a seller’s market. That makes renovation look like a smart decision. It makes it look like an investment decision rather than a consumption decision.”

The latest housing start statistics from Canada Mortgage and Housing Corporation for February were certainly encouraging.

The seasonally adjusted annual rate of housing starts was 181,800 in February, which was up from the 170,600 units in January. Urban starts increased by 9.4%, while urban multiple starts increased by 14.5%.

Andersen’s “safe and easy bet” is 178,575 housing starts in 2011.

“My summary ladies and gentlemen is

that I think you are going to have a good year,” he said. “The economy is moving into a more dependable trend line with higher growth and there has been too much pessimism in the press. The press have been full of pessimism for the last six to nine months, but I think the economic numbers coming out now are creating a completely different story.

“The problems are going to change from not enough demand to supply issues.”

Whitlock, meanwhile, zeroed in on the importance of the balance sheet.

“Financial statements are fantastic tools,” he said. “Every single number on your financial statements provides tremendous insight into the history of your company and the financial health of your business. They are a window to your company’s past and its performance.”

He wrote in a handout provided to delegates that the process of analyzing statements does not need to be cumbersome, time-consuming or left for the professional accountant, advisor or banker. You should and must have a firm understanding of the financial picture and position of your business.”

PHOTO: HEATHWOOD HOMES

Heathwood’s First Green Home To Be Monitored By Ryerson Engineering Students Heathwood Homes recently opened what it described as the first ‘Green Home’ in Canada to be evaluated for the effectiveness of its energy and water conservation features and an array of the latest environmentally-friendly building systems and materials.

A graduate student-led team from Ryerson University’s Department of Mechanical and Industrial Engineering through its Centre for Sustainable Energy will monitor, measure and report on the use of electricity, natural gas and cold and hot water in the demonstration home for the next year, and for at least a second year, once the home is sold and occupied.

The 4,429 square foot four-bedroom ‘Oakdale’ model is in ‘The Reserve’, a luxury development featuring two cul-de-sacs of 50’ lots adjacent to a forest preserve in Richmond Hill, Ont. For comparison purposes, an identical home, built to the Energy Star Quality Standard in Heathwood’s nearby ‘Forestbrook’ community, will be monitored during the same time period, to provide

further cost benefit analysis. The data collected will help to quantify carbon footprint reduction and educate builders and consumers on the true monetary and energy savings that can be achieved.

“The data will be used to determine the benefits of the energy saving systems in the home and will provide valuable information on peak loads, solar electric power generation and greenhouse gas emissions,” said Hugh Heron, president of Heathwood Homes. “This extremely energy-efficient home is also beautiful and livable, which sets it apart from most other green demonstration houses.”

Bob Finnigan, COO, Housing, of the Heron Group of Companies and 2011 President of the Ontario Home Builders’ Association, said in a release that “we know that Energy Star saves owners up to 30% over homes built to Ontario Building Code. With the results from the Green Home monitoring, we will be able to determine how much families can save in dollars and energy with the added features.”

Key highlights of the ‘Green Home’ are: The grey water system, which reuses cleansed bath and shower water for flushing toilets and saves approximately one-third of total water usage; • Roof-mounted glycol solar panels that use energy from the sun to help warm the home’s tankless hot water system, which heats only the water being used at any given time, saving up to 40% over tank-style heaters; • Roof-mounted photovoltaic solar panels to generate electricity that is put back into the grid to lessen the overall demand for fossil-based power generation;

Additional features and systems that are on display include the following: • Water Conservation: dual-flush toilets, low-flow faucets and shower heads, permeable pavements, infiltration galleries that help infiltrate storm water runoff, xeriscaping (mass planting of drought-tolerant native species to replace lawn areas and minimize the need for irrigation), rain barrels.

• The Environment: engineered floor system; carpets made from polyethylene terephthalate (PET), the plastic used in pop bottles; natural stone flooring; bamboo flooring; zero VOC (Volatile Organic Compounds) paints for healthier air; granite countertops; fibreglass shingles and HEPA filtration systems that remove 99% of airborne contaminants.

Further information is available at www.heathwoodhomes.com

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News Watch

Owens Corning, Sloot Team Up In Rotary Dream Home Project Owens Corning has joined with Sloot Construction Ltd., located in Guelph, Ont., to build the home for this year’s “Rotary Club of Guelph Dream Home Lottery”.

The dream home, valued at $682,000, is furnished with state-of-the-art appliances and furniture and outfitted with Owens Corning’s insulation products.

On March 30, the two companies underwent the final Blower Door Test on the completed home to test the home’s level of air tightness.

“The home surpassed the energy efficiency of homes that meet the R-2000 energy rating, the pinnacle of energy efficiency in Canada and tested at 0.61 air changes per hour,” the two companies said in a release.

The home also underwent a Blower Door Test at the framing stage in December 2010 to test the air tightness of the home, surpassing the standard of Energy Star homes at the delivery, or completed, stage of the building process.

The 2011 Rotary Dream Home Lottery is

Andy Goyda, market development manager of the Building Materials Group at Owens Corning (far left) and John Sloot, president of Sloot Construction, explain the results of the Blower Door Test and the energy efficient qualities of the Sloot Construction home recently to Guelph Mayor Karen Farbridge.

raising funds for the Guelph General Hospital Medical Education Centre to provide leading-edge training for medical students

and eventually encourage them to return as permanent physicians. Tickets are on sale now and the draw will take place on July 1.

In addition, 22 CertainTeed manufacturing facilities have been inducted into Saint-Gobain’s Millionaires Club, a program designed to reward plants that have operated at least 1 million work hours without a lost-time accident.

A subsidiary of Saint-Gobain, CertainTeed and its affiliates has more than 6,000 employees and more than 65 manufacturing facilities throughout Canada and the U.S.

PHOTO: OWENS CORNING,CERTAINTEED

CertainTeed Releases Corporate Sustainability Report CertainTeed Corp. recently issued its first Corporate Sustainability Report. The 28page report highlights recent steps the company has taken and achievements made on the path to becoming an increasingly sustainable company.

“We believe strongly in setting sustainability goals, tracking our progress and sharing the results with our employees, suppliers, customers and the communities that we all live in,” said Chris Altmansberger, vice president of operations support and process sustainability at CertainTeed.

“One of CertainTeed’s most notable environmental achievements was a substantial reduction in energy use by its facilities, a savings that kept more than 70,000 tons of carbon dioxide emissions from entering the atmosphere,” the company said in a release.

“The savings is the equivalent of the carbon dioxide absorbed by 3 million trees in a year.

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New Products

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An assortment of adhesives are available for construction, indoor and outdoor carpeting, panelling and moulding, insulation panel and drywall, mirrors, tub surrounds, ceramic tiles, concrete, parquet and wood flooring.

In addition, there are squeezable all-purpose adhesives for such applications as leather, rubber, wood, foam and cardboard.

All Liquid Nails products meet Canadian VOC standards, with many meeting the stringent environmental standards put forward by the Greenguard Environmental Institute (GEI), Leadership in Energy and Environmental Design (LEED) and National Association of Home Builders (NAHB).

Some Liquid Nails products are formulated to resist rain or snow, while others work in extreme temperatures, from -5째C to 48째C. Liquid Nails adhesives are available now and based on size and formulation, priced between $2.59 to $34.99.

PVC DECKING FROM CERTAINTEED EMULATES NEW HARDWOOD STYLES CertainTeed has expanded its EverNew LT Cellular PVC Decking line and added Jatoba and Spanish cedar to the line of low-maintenance PVC decking designed for building professionals to offer the authentic look of hardwoods. Previously available options include Saddle, Squoia, Dune and Greystone.

EverNew LT emulates both the look and feel of hardwood; however, requires no painting or staining, does not splinter, warp or rot and is highly resistant to wood-boring insects. Its fusion-bonded surface protects from mold, stains and fading, and is solar-reflective, staying cool to the touch on hot days.

EverNew LT Cellular PVC Decking has a 20-year warranty against stain and fading, and a lifetime limited protection warranty. It carries a Class 1(A) fire rating, giving it superior fire resistance.

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New Products

MOEN CANADA BATHROOM COLLECTION ACCENTUATES THE ANGLES Moen Canada’s new 90° bathroom collection offers a modern style and minimalist design through square angles.

Available in the company’s LifeShine Brushed Nickel finish, the 90° collection includes single-handle and two-handle widespread faucets, plus coordinating shower and tub options and their matching accessories.

Each faucet offers a 5.7 L per minute flow, versus traditional aerators that flow at 8.3 L per minute, resulting in a water savings of up to 32%. Eco-Performance showering options that flow at 6.6 L per minute, versus the industry standard of 9.5 L per minute, are also available. Both faucets and showerheads have been certified to contribute toward maximizing LEED (Leadership in Energy and Environmental Design) points.

COLORITE’S GREEN ELEMENT HOSES ARE RUGGED YET LIGHT The environmentally friendly Element hose line from Colorite Plastics Company is light and flexible, yet strong and durable.

Each hose also provides kink free performance with Colorite’s patented Duraflow technology and comes with a spring guard and rugged collar sleeve for comfort when watering.

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CONTRACTOR ADVANTAGE

Online Marketing

Video Can Grow Your Business It can be the ultimate online marketing tool for the construction industry, bringing your customer face-to-face with you.

BY JOSH KERBEL

When it comes to connecting with customers and prospects, online video is one of the most cost effective and persuasive mediums out there. Businesses across a wide range of industries are using it to drive revenue and build robust sales funnels. Retailers find that video boost sales conversions, real estate agents employ it to bring in new home buyers and consultants use it to educate prospects on the value of their services.

The statistics that support the use of online video marketing are mind boggling. You could spend hours just categorizing them.

According to market researcher comScore, 83.5% of all U.S. Internet users watched a Web video in January, and these just are not Hollywood-scale full-length feature films we are talking about, rather about hundreds of thousands of hours of user generated content on video sharing sites like YouTube.

Statistics aside, the main reason video works is that it transcends time and space in order to help form personal relationships.

It is a basic human instinct to trust someone who is talking to you face to face, and online video does just that, it lets people see you for who you are. This trust is the basis of all business relationships. Look at the power that HGTV has in creating stars out of home decorating and renovating professionals.

Having said that, online video is almost an ideal marketing solution for construction professionals for a number of reasons.

Bridge distances: Imagine having a way of making an initial sales call without getting in your car and driving a

few hundred miles in the hopes of landing a new project. Properly used, online video showcases your expertise and answers many of the questions your sales prospects would ask you in a face-to-face meeting.

Showcase past work: For a reasonable investment, a professional videographer can create a video portfolio of your completed work. Forget the idea of throwing up some still photos on our website; now you can do neat things like time-lapsed videography for prospects to see your project rise from the ground.

nials for a reason: they work. Now you can leverage this benefit for your own needs.

Educate: If you refuse to compete on price because your product offering is of a much higher quality, then you must invest a lot of effort educating your prospects on why your services are worth the extra money. Leverage the personal connections you can create with online video to explain that the total cost of ownership of your work product is lower than the competition, demonstrate why your product lasts longer, and showcase the attention to detail that

Statistics aside, the main reason video works is that it transcends time and space in order to help form personal relationships.

Walk-throughs: Imagine being able to walk a prospect through one of your existing jobs, or maybe highlight the process you use to deal with difficult circumstances, or provide a commentary on your most successful projects.

On-camera testimonials: One of the best ways to get a prospect to trust you is to have other people speak on your behalf. While anyone can show a letter of recommendation from a previous client, getting an existing client to talk on your behalf will blow people away and leave little doubt that you are worth hiring. Late night infomercials use on-camera testimo-

Josh Kerbel is Managing Director of Sales Funnel, a digital marketing agency that specializes in lead generation and prospect management systems. To get a copy of the free white paper, 8 Steps to Internet Marketing Success, please send an email to report.ca@thejoshkerbelproject.com.

makes your company worth the extra money.

If you are in the construction business, chances are you are selling large ticket items that require a substantial amount of trust on the part of the buyer in order to get them to sign on the dotted line. If you are having trouble closing new business deals, online video might be exactly what you need to push buyers into your waiting arms. If you decide to incorporate video into your marketing mix, remember these key points: • Strongly consider hiring a professional • If you are the do-it-yourself type, educate yourself about the importance of proper sound and lighting • Most importantly, your goal with video is not to sell, but rather educate prospects on topics related to your business For example, if you are in the home renovation business, consider discussing on a wellcrafted video when homeowners might need to get a building permit and how they go about obtaining one.

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Business Strategies

Plan For Profitability Understanding financial fundamentals and focused time commitment separate the successful renovator from struggling ones.

BY VICTORIA DOWNING

For over 20 years, I have worked with owners of renovation companies and I have loved every minute. One thing I do not love, though, is meeting a contractor who is working very hard, putting in long hours, but yet is not earning enough money with which to live well. Over and over, I have worked with contractors (some who have been in business for many years) who struggle to earn enough to live the life they want and deserve.

I know that the renovation business can be lucrative as I see the successful companies. There are many renovation businesses that deliver a healthy personal income to the owners of the business as well as the employees. These contractors take nice vacations, some eight to ten weeks a year.

They can afford to hire talented employees that keep the business moving when they are not there, and can pay for the benefits that keep employees happy. The profits of the business have allowed them to set money aside equal to six months of overhead in case of a business emergency. These contractors live in attractive homes, send their children to private schools and drive nice cars. They save for retirement.

What are the successful businesses doing that the unsuccessful ones are not?

One of the main differences is that those on top understand the financial fundamentals of their business. When business owners understand and interpret financial information, they make decisions and choose directions that insure profits.

Many owners are intimidated by financial statements, but for most, it is misplaced fear. Anyone who can plan and estimate a complicated renovation project can certainly understand the financial numbers behind the business. This is a key to reaching profitability goals.

The first step that a business owner should take to be more successful is to build a plan for profit on paper; an operat-

There are many renovation businesses that deliver a healthy personal income to the owners of the business as well as the employees. These contractors take nice vacations, some eight to ten weeks a year.

They can afford to hire talented employees that keep the business moving. ing budget incorporating the key financial numbers. This exercise will show you how to price projects, how much revenue must be sold and produced, and whether or not you can support the company’s overhead.

This should be done before you go out and sell a single job. I just do not know how companies function without using an annual operating budget.

Are there companies that produce

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 the above e-mail address or by phone at 301 490-5620 ext. 105.

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good profits without using a budget? Of course there are, but not many. I believe that they would have been significantly more successful if they had used this business tool. To learn more about budgeting for small business, send me an email at Victoria@RemodelersAdvantage.com and I will send you a white paper that will walk you through the process.

An operating budget is not the only

CONTRACTOR ADVANTAGE

tool that strong business people use to run their business, but it is the first step toward making the money you want.

A second thing that these successful contractors are doing is dedicating time to improving their knowledge and their skills as a business person. Like Abe Lincoln would say, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” Basically what he was telling us is we need to use tools that have been prepared and honed to get the most efficient results.

Your tool is your mind. Spend just 30 minutes a week improving your skills as a business person, and it will pay off ten-

Business Strategies

fold in the results you will achieve. This weekly activity could be reading a book on marketing, reviewing financial statements with your accountant, attending a selling skills workshop or an array of other things.

Continual improvement is the name of the game, especially when the competitive landscape has changed so much and become more challenging.

Third, successful business owners spend their time working on activities that could have the greatest positive impact on their companies. There is only so much time in the day and you have to use your time productively.

What does this mean? It may mean that you hire someone to do some of the administration functions that you are now doing yourself. The goal of this would be to use this newly freed up time to do more productive things.

You might pay a bookkeeper $15/hour for four hours a week and use that four hours to network or call on past clients, or do some other sales activity that can bring business in the door. You may say no to being involved in the local industry association for several months so that you can create a marketing plan with the time you now have on hand. We often suggest to our members that they keep a timecard for two weeks, recording each type of task on which they work during the day. If you are like most contractors, you will quickly see activities that you, as the owner, should not be doing.

Ready for the next step? You want to call yourself a business owner, right? Step up, learn the basics and then keep on learning.

The more you understand about how a business works the more you dedicate yourself to the most important activities, the

more successful you will be in every way.

Wiki defines a business as an organization designed to provide goods, services, or both to consumers.

Most of them are privately owned and formed to earn profit to increase the wealth of their owners.

Renovation companies are businesses that can definitely increase wealth for the owners when they are run like businesses.

Being successful does not just happen, and I have seen lots of successful businesses and the owners of these companies live great lives because their businesses provides them with the income to be able to support their lifestyles.

They all follow a basic set of business practices which are ingrained into the operation, like strategic planning, operating budgets, regular, planned communications and more.

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Smart Money

The Shareholder Agreement A complete and comprehensive document can help resolve disagreements before they become costly and damaging to your business.

BY PAUL RHODES

Family related: Frequently the children, spouses or other family members of shareholders are employed in the company. If the terms of such employment are not clearly defined and agreed on, this can lead to conflict.

On occasion, employment in the company can be seen by a family member as a right, rather than an opportunity.

Therefore, the terms of the shareholders’ agreement should consider the full range of remuneration and responsibilities when children are employed.

The terms relating to family members should include: •W hether spouses are allowed to work in the company and, if so, the level of salary permitted • When performance evaluations are performed for family members • Career advancement opportunities • Whether family members are required to

work outside the family business and, if so, for how long • Formal training requirements • Whether there is a “probation” period • How decisions will be made and approved for hiring and firing relatives • Employment contract term and renewal provisions • Definitions of “just cause” for termination and any severance entitlements

It is essential that remuneration is equitable between shareholders themselves, ensuring fair compensation for efforts. In addition, different shareholders may prefer different types of income for personal tax reasons (such as a dividend or salary).

Remuneration:

Business issues:

It is essential that remuneration is equitable between shareholders themselves, ensuring fair compensation for efforts. In addition, different shareholders may prefer different types of income for personal tax reasons (such as a dividend or salary).

When each type of income is to be paid and how much should be clearly defined by the agreement. Other remuneration related provisions include: • The “base” salary for each shareholder • Vacation and benefit entitlements

The roles and responsibilities within the company should be clearly defined to remove uncertainty and allow effective decision making. The following may be addressed by the shareholders’ agreement: • Who approves the dollar limits for capital expenditures • Who approves any material change in the business, and is unanimous consent of shareholders required •W hether the shareholders are required to provide personal guarantees for company loans. If personal guarantees are not equitable amongst shareholders, does the agreement provide for guarantee fees to be paid?

• The established succession plan. Is the plan to bring in new unrelated shareholders or family members?

Paul Rhodes is a partner of Soberman LLP. His professional experience includes construction, manufacturing and real estate and internal audit engagements. Paul is a member of the Toronto Construction Association and can be reached at prhodes@soberman.com or 416 963 7217.

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•W hen profits in a year allow additional remuneration to be paid to shareholders, whether those payments are made by bonus or by dividends, and what amount is to be paid • If payments are made by bonus, how the allocation between shareholders is determined • When and how much is to be distributed in the form of dividends

CONTRACTOR ADVANTAGE

PHOTO: THINKSTOCK IMAGES

A shareholders’ agreement is a supplement to the incorporating documents of a company, and allows the shareholders to define how their relationship as shareholders is to be carried on. They are important whether your company is family owned or has unrelated shareholders, and the agreement should be comprehensive enough to cover all imaginable eventualities.

Let us briefly examine some key areas that should be included in a shareholders’ agreement. It is highly recommended that you obtain professional advice when drafting one.

Smart Money

Ownership and larger life-related events: When developing a shareholder agreement, it is especially important to include an exit strategy. An exit may be required in many situations, for example, the death or incapacity of a shareholder, a fundamental disagreement between shareholders or one shareholder retiring from the business. Consider: • What happens to shares on death of a shareholder? What happens on the divorce of a shareholder?

• What are the criteria to sell the company?

Does the decision have to be unanimous?

• What happens when a shareholder wants to sell his or her shares? Who gets first right of refusal?

• What happens when a shareholder is physically or mentally disabled?

The roles and responsibilities within the company should be clearly defined to remove uncertainty and allow effective decision making.

• When there is a transfer of shares is the valuation to be based on a formal valuation? If this is the case, how is a business valuator to be selected?

• Have a retirement age and process been set?

• Are there non-compete and non-solicitation clauses in case a shareholder wants to start a similar business on their own?

A shareholders’ agreement is similar to a construction contract, if everything goes well there should be no need to refer to it again; however, once a disagreement arises

between shareholders it is often very difficult and expensive to resolve.

Where the shareholders are too far apart to reach an agreement, the result can be the sale of the company, although damage is often done to the business while the process runs its course.

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.

In the next issue of

Contractor Advantage • Roofing and Shingles • Siding • Exterior Doors and Hardware • Engineered Wood • Inside Tools CONTRACTOR ADVANTAGE

MAY/JUNE 2011

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Economics 101

The Perseverance Factor How to identify and obliterate the six obstacles to success, and resolve to complete your goals.

BY DON HUTSON

Patrick House, a winner of the national “The Biggest Loser” television show, lost 200 pounds in the midst of intense competition for the annual award. He is a young man with enormous resolve.

When asked to name the single most important factor in reaching goals, he said (without hesitation): “Number one is perseverance.

Too many people give up too quickly. Gym membership sales in the month of January go through the roof, and the ‘show up factor’ falls like a rock in February.”

Why do people give up so easily?

Lack of Clarity: The more detail you attach to a goal, the more likely you are to follow through on it. Describe it by answering with ‘whys’ (its purpose), ‘whens’ (completion points, in-

Too many people give up too quickly. Gym membership sales in the month of January go through the roof, and the ‘show up factor’ falls like a rock in February.” terim progress dates), and ‘whats’ (including mention of your current situation, and what the end game will look like). Do not worry, you cannot overdo the details.

Lack of Commitment: When you are serious enough to write goals down and share them with others, it is your way of making a commitment to the process.

Simultaneously you are putting the universe on notice that this is your intent. Goethe said, “The moment one definitely commits oneself, then Providence moves too.”

Don Hutson is the best-selling co-author of “The One Minute Negotiator: Simple Steps to Reach Better Agreements,” past president of the National Speakers Association and a veteran of 6,000 presentations worldwide.

He can be reached at (901) 767-5700.

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CONTRACTOR ADVANTAGE

Lack of Belief: Human behaviour is the result of the human belief system. If you believe your goal is doable, believe you have the right strategy, and believe in yourself, you cannot miss. It is the person filled with doubt who fails to take the next step. This is no time to be timid. Be bold.

Lack of Passion: Vision without action is hallucination.

Step number one is having the courage to get started on your clarified goals. Get fired up about getting started and go for it. Seeing even a marginal amount of progress is all it takes to inspire you to take the next step.

Lack of Congruence: Your goals need to be in sync not only with

PHOTO: THINKSTOCK IMAGES

Let us start with your New Year’s Resolutions.

It is easy to get excited about resolutions and the promises they afford on January 1. Here is the question: “Are you excited enough to get really serious about the process and ultimately follow through to completion?” Studies prove that goals and resolutions barely exist until you get them in writing. When they go into a document it begins to be real and viable.

You can see it, show it to others, or display it on your refrigerator as a reminder.

When you do not write down goals they are much like the wind, here for the moment then gone forever. Here are six barriers that keep our goals from becoming a reality. Let us consider them along with some solutions:

Economics 101

your belief system, but also with your other goals, and your capabilities. If they are too outlandish or unrealistic, the incongruence of it will short-circuit your belief in your ability to get it done.

Lack of Focus: Writing down clarified goals is the beginning of an exciting process, if you can keep your focus.

Cavett Robert defined character as “the ability to carry out a worthwhile plan long after the mood in which it was made has left you.”

Can you vow to stay focused on the vision?

The difference between high performers and mediocre producers is a focused intensity accompanied by the perseverance.

Few people realize the power and potential that are derived from crafting one’s “Magnetic Compelling Purpose.” In times of challenge like these, people tend to gravitate either toward scarcity or abundance.

In times of challenge like these, people tend to gravitate either toward scarcity or abundance. The majority who go toward scarcity are focused on problems and the negative aspects of their existence.

Those who go toward abundance are more focused on possibilities and progress.

The majority who go toward scarcity are focused on problems and the negative aspects of their existence.

Those who go toward abundance are more focused on possibilities and progress, and that prosperity consciousness is what inspires many people to “go for it.” This is not about who your daddy is, where you went to school,

or how old you are. Freedom to excel is your individual birthright.

If you can articulate what you really want, put it in writing, fine-tune it and you are on your way. Serious resolutions and statements of purpose tend to cause one to behave the way the person they hope to become behaves.

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Learning Curve

Customers And Contracts Two books present the ins and outs of customer service and how to draft and negotiate better contracts for small business.

BOOK PLEASE EVERY CUSTOMER McGraw-Hill

Customer demographics are changing.

Businesses must ramp up their skills and knowledge in dealing with people from diverse backgrounds if they want to remain competitive in today’s marketplace.

Please Every Customer from McGraw-Hill aims to help accomplish that.

Written by customer service expert Bob Lucas, Please Every Customer provides a one-stop resource for sound advice in providing great customer service across cultures. It focuses on helping readers and their businesses effectively create an environment where everyone is recognized as a valuable member of the customer-provider chain.

The book covers issues related to the basics of effective interpersonal communications (verbal and non-verbal), building trust across cultures and serving different genders.

It also addresses how to best provide service to customers who speak English as a second language, have special needs or are from different generations.

Please Every Customer provides specific guidelines for frontline customer service personnel, service reps and managers. Author Lucas calls on his experiences as president of Creative Presentation Resources, a creative training and products company, and founding managing partner of Global Performance Strategies, an organization specializing in training and consulting services, to build a road map for readers to improve customer care.

BOOK THE SMALL-BUSINESS CONTRACTS HANDBOOK Self-Counsel Press

A good understanding of standard business contracts and being able to negotiate and make changes to them are critical skills essential to the effective running of a small business. Small businesses need to deal with contracts on a frequent basis, but few have in-house lawyers to ensure that contracts are fair, or to create new contracts when necessary.

The Small-Business Contracts Handbook from Self-Counsel Press is designed to save time and avoid contract issues. It helps small business owners understand hundreds of standard contract clauses, such as those found in partnership agreements, lease agreements and contracts for purchase or sale of goods for a business.

Author Lawrence Hsieh takes readers step-by-step through standard clauses and explains their meanings. Using simple language, he pinpoints potential problems, and clarifies legal jargon into simple terms. Hsieh points out that successful businesses can come down to paperwork, and that having a good understanding of standard business contracts and being able to negotiate and make changes are critical skills to running an effective business.

The Small-Business Contracts Handbook includes a CD-ROM that can be installed on any Windows-based computer, and which contains additional resources for small business owners, extra content and sample contract clauses in PDF format.

Both books are currently available from www.amazon.ca and www.chapters.indigo.ca.

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Feature

Working With

Others Successful contractors have the significant challenge of mastering both the art of communications and the science of construction.

PHOTO: THINKSTOCK IMAGES

BY LAWRENCE CUMMER

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Feature

I

n an industry where the so-called word of mouth approach can make or break a business, contractors must hone their communications skills because relationships are one building project they cannot afford to overlook.

Finding the right partners, building key relationships and joining professional associations can be just as important as measuring twice and cutting once.

“Our business is all about relationships, whether it is with the owner, trades, sub-trades or buyers everything in the industry is based on who you are, what your reputation is and your personal connection to people,” says Clive Thurston, president of the Ontario General Contractors Association (OGCA). “Interpersonal skills are vital if you are going to succeed.”

Employees build your reputation and business: Good habits begin at home, and Thurston notes that a company’s own employees and subcontractors need to represent the firm well for they are pivotal when it comes to maintaining strong contacts. Since employees also act as a face of the business to customers, it is that much more important that the relationship with a customer be a strong one.

“If you are known not to treat your employees well, they will simply work someplace else,” says Thurston. “These days it is as much about how you treat employees as it is about how much you pay them.”

Not that he is diminishing the value of a good income, but Thurston says work-life balance has become a key factor in employee relations in contracting. Vacation time, personal benefits, long term planning, and access to technology are as important to 21st century employees as the financial rewards, he says.

According to Thurston, several attributes go into building a good solid reputation as an employer: avoid being a dictator and micromanager; be interested in and seek out employee feedback; and, ultimately, respect your employees. “Once there was a greater divide between management and employees in our industry, but that has been closed over the years, such that even our largest firms now look for ways to better communicate with their employees.”

Communications strategies: Social media sites such as Twitter, Facebook and LinkedIn, can play a major role in attracting and retaining good people.

In particular, LinkedIn (www.linkedin.com), the world’s largest professional network on the Internet, has more than 90 million members worldwide from which partners and employees can be found and recruited, and, just as importantly, so can you.

“LinkedIn allows you to brand yourself professionally,” says Danielle Restivo, spokesperson for LinkedIn Canada, a network that allows members to create a profile presenting their professional experience and references for free.

“We are in an email age, and an impersonal age. To build the kinds of relationships that good contractors have is a dying art form.”

– Giles Atkinson CONTRACTOR ADVANTAGE

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PHOTO: THINKSTOCK IMAGES

Feature

“The secondary benefit is that they allow you to meet people that you otherwise might never have been able to find, through existing professional connection. These are potential colleagues and partners.”

When requiring a particular expertise to complete a job, contractors and other trades professionals can be found by sending ‘status messages’ asking for recommendations across member’s professional networks. To find particular insights from other professionals who might have already overcome particular technical problems or have a particular skill set, a feature called “LinkedIn Answers” allows questions to be posed to all professional contacts, or privately across industry-specific networks.

Finally, clusters of members called ‘groups’ exist across LinkedIn in particular industries or with particular specialties. One “Construction” group has 15,000 members worldwide, while the “Design and Construction Network” group boasts similar numbers, but includes designers and architects. Members can use such groups to send questions or requests to their members.

What differentiates one LinkedIn user from another are the recommendations made by others they have worked with, or for, in the past. Restivo calls these “paramount” to success as they provide the opportunity to sell yourself to clients, employers, employees and partners. Step one to having a complete profile, she says, is to request recommendations from customers.

Dedicated to the home building and renovation market, HomeStars (www.homestars. com) is a Website that serves both as an opportunity to reach customers through a homeowner-reviewable database of renovators and repairmen, as well as to find potential subcontractors and other trades through use of online community forums.

Social media sites such as Twitter, Facebook and LinkedIn, can play a major role in attracting and retaining good people.

Positive customer reviews are obviously critical in helping to partner and network, since any joint business venture becomes an extension of each partner’s reputation.

Having them online just makes sense.

“I look for everything online,” says Brian Sharwood, president of HomeStars, of his motivation for becoming involved in the site. “If you are not online, you do not exist to me.”

Despite its benefits, social media tools are ones which contractors need to be careful with. “Twitter can make people lazy,” Thurston says.

He says email had the same effect of creating lax communicators, and is now on a downturn in the construction industry; the result of abuse and misuse. “There has been far too much reliance on electronic systems. People will send five emails without even picking up the phone.”

During dispute resolution, he has found emails to be at the root of numerous miscommunications. Thurston adds that people should meet face to face to resolve a conflict; however, a disturbing culture has emerged where some feel it is easier to rely on electronics.

“Face-to-face communication is the most important aspect of our business and one that has fallen into disuse.”

Build trust face to face: Restivo and Sharwood both note their online services create the introductions, but that ultimately, the next step of a face-toface meeting and handshake are still required to build rapport and chemistry.

That opinion is echoed by Giles Atkinson, owner of Keystone Communications, a firm that consults and trains on face-toface communications, winning and keeping business and growing and protecting relationships: “We are in an e-mail age, and an impersonal age. To build the kinds of relationships that good contractors have is a dying art form.”

Atkinson adds that when smaller, family-run type contractors feel forced into communicating by e-mail, it is natural that frustration and miscommunication could emerge that could potentially cause problems with a partner or a customer To avoid that from happening, his advice to contractors is control the method of communication. “The person who is skilled, capable of initiating a relationship, setting and controlling the tone of the relationship, and making it easy to work with them is usually the person who is going to go further,” says Atkinson. “They are going to float to the top of the bucket every single time.”

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Feature they occur, and be honest about challenges.

Do not tell people what they want to hear, says Atkinson, but what they need to hear, and be prepared to provide alternatives.

Take your own issues out of the limelight and focus on the other person’s needs:

Trust is the basis of becoming the sort of partner that others seek, Atkinson says, and embodies a few different attributes: straight-forward competence, openness and honesty, loyalty and, especially when dealing with business partners, consistency.

“I think what people struggle for in good times and bad is consistency. As a partner, I need to know that if I give you bad news, or good news, I can predict what will happen, so that it is easy when I deal with you.”

Sweat the small stuff: The most important first step in building

strong interpersonal skills, Atkinson says, is to try at all times to consider how you are being perceived; take time to edit the e-mail, plan the phone call or summarize the next steps.

It is a small step, but too often overlooked.

Remember, for example, that on the phone, “you might not sound as happy and cheery as you think.

“If you are face to face, it is simple stuff: look them in the eye; smile; be responsive; listen to what is being said; focus on them not yourself.”

When working with other contractors manage expectations, admit to mistakes if

All these communications skills are not something taught in books, says Atkinson, and successful contractors have the significant challenge of mastering both the art of communications and the science of construction.

“That is a big request, because you did not go to school wanting to have to communicate to Mrs. Smith that her kitchen is not going to work the way she wants it, but to learn to build and install kitchens. Well, sorry, now you are running the company and you need to communicate that clearly, or you will lose reputation and business, and there might be no kitchens to put in.”

In the end, reputation, whether with partners, subcontractors or customers, is all about respect, Thurston says.

“Respect is the key to everything, especially in construction. In this industry it is still a tight family. Everybody knows everybody, and I guarantee your reputation is known. There are no secrets in this world.”

PHOTO: THINKSTOCK IMAGES

Professional Associations Clive Thurston, president of the Ontario General Contractor Association suggests contractors become involved with associations at the local, provincial and national level as each can serve a different purpose.

•L ocal: Municipal building and contractor associations are usually multi-disciplined. Local construction organizations are usually multidisciplined, bringing contractors into contact with lawyers, accountants and others who can provide the best practices and expertise they lack.

“This is your first stop,” Thurston says. “You should be a member.”

•P rovincial: Organizations like OGCA are also important for contractors to consider joining. Province-wide mandates create a bigger picture, and such organizations also support their industries locally on particular issues.

•N ational: On the national level, organizations focused on professional designation are critical to contractors. Thurston points to nationwide associations and organizations as a good way to further professional skills and business acumen.

At national levels, it also can make sense to look outside the home build-

ing box, at organizations focused on business and communications skills.

For example, Thurston says Toastmasters, an international non-profit educational organization that operates clubs that help their members improve their communications, public speaking and leadership skills, can be “invaluable” to contractors in learning the skills to make successful competitive bids.

“Local, provincial and national associations, professional designations, support groups like Toastmasters, all combine to turn you into a better, more successful business owner.”

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Feature

Getting more from the

Garage

PHOTOS: COURTESY OF CLOPAY

BY STEFAN DUBOWSKI

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CONTRACTOR ADVANTAGE

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Who parks a car in there anymore? Garages have become storage spots, workshops and supplementary lounges and there is money to be made.

H

omeowners use garages for all sorts of things these days, not only for parking vehicles, but also for storing household goods, extra workshop space and home gyms. Some even install furniture, TVs and games, creating supplementary lounges.

All of these new uses spell a growing garage-renovation market.

Contractors looking to get in on the action need to keep a few things in mind: • When it comes to transforming the garage into a pseudo-indoor space, the type of garage door you choose matters more than ever; • Typical garage lighting is nowhere near good enough; • Heating is a crucial consideration; • For organizing garage-stored goods, not all solutions are created equal.

More on doors:

In the past, a simple steel door was all that the average homeowner needed to protect his vehicle from the elements. That is no longer the case, says Peter Fleming, sales manager at Car Wal Door Systems Ltd., a garage door supplier. More often than ever, Car Wal has to consider the different ways a homeowner might use the garage before helping the customer choose the right kind of door.

“One of the questions we ask now that we never asked before is, ‘Are you heating your garage or using it as a workspace or living space?’” Fleming says. “Some people put their hot tubs in the garage so they can use it year round.”

If a homeowner plans to use the garage for something other than parking the car, chances are Car Wal will suggest an insulated door. Packed with polyurethane,

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Feature

PHOTO: COURTESY OF CLOPAY

Shown is the Gallery model from Clopay Building Products.

insulated doors can carry R values that nearly match those of well-insulated basement walls, which helps make the garage a more liveable environment.

Insulated doors are pricier than noninsulated doors. Fleming points out that in one of the lines that Car Wal carries, the insulated version is some $350 more expensive than the non-insulated version; however, the benefits outweigh the extra cost. Insulated doors not only help keep the heat inside the garage, they are also sturdier than non-insulated doors. The insulation and supplementary framing in the door’s construction make it more resistant to dents, Fleming says.

He also recognizes a misconception that some people have about insulated doors: that because they weigh more than non-insulated doors, you need a high-output garage-door opener. In fact, a standard half-horsepower opener will do the trick.

“The opener does not have to do that much work,” Fleming says. “If your door is balanced properly and the spring is ten-

sioned properly, a 10- or 12-year-old child can open it manually.”

If homeowners plan to spend a lot of time in the garage, chances are they would appreciate a door featuring a row of windows to let natural light into the space.

For homeowners who really want to make a statement, however, Fleming points to the Avante model. Made by Clopay Building Products Company Inc., this door is all glass set in an aluminum frame. The glass can be perfectly clear or deeply tinted, according to the customer’s preference.

This would suit the homeowner who privileges style over warmth. “It was originally developed for the warm climates, such as Florida, Arizona and California, because there is no R value in the aluminum structure,” Fleming says.

Priced at $6,800 for a 16’ by 7’ opening, the Avante certainly does not suit the bargain hunter, but as Fleming points out, cost should not be the most important aspect.

“You want to deliver good value, then you really have to ascertain what their

needs are. You have to ask the questions, ‘What is the garage going to be used for?

How often? Is it heated or not?’ Then give them a price on the appropriate door.”

Shedding light: Appropriate lighting is also important. Usually garages feature little more than one or two fixtures providing barely enough illumination for only the most basic tasks.

“Most lighting in garages is simply designed to get you from the car to the house,” says Jim Cooper, president of Canarm Ltd., a lighting supply company.

Homeowners are going to need a better lighting system if they plan to set up gyms or craft centres in their garages. According to Cooper, recessed lighting is increasingly popular for garage applications, in part because recessed lights practically disappear into the ceiling, so they do not unduly curtail the available headroom. That would be an important consideration if the homeowner plans to lift weights or play pool.

In the past, 6” pot lights were the norm,

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Green Friendly:

News And Facts For The

NSCC’s Marconi Campus Goes LEED The Marconi campus of Nova Scotia Community College (NSCC) in Sydney, N.S. is expanding with the construction of a $7 million LEED certified new wing that contains tilt-up walls constructed on the ground then lifted into place The two storey wing, which is designed to be 55% more efficient than a traditional building, will be home to four programs Automotive Service Technician, Motorcycle and Power Products, Welding and Metal Fabrication and Heavy Duty Truck and Transport.

Scheduled to open in September, the walls will be insulated to R25 standards, the ceiling to R30 and heating will be provided by heat pumps and through in-floor radiant heat provided by the main campus building.

In addition, the structure will feature water conservation measures including irrigation-free landscaping and water efficient fixtures.

“This modern, well-equipped wing will provide a leading-edge learning environment for our students, while stewarding the energy-efficient building practices that our sustainably-focused economy demands,” said NSCC Acting President Don Bureaux.

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Contractor Professional Officials helped prepare the tilt up walls for the new trades wing of NSCC Marconi Campus during the ground-breaking ceremony in October 2010. Left to right are Dave MacLean, Principal of Marconi Campus, Don Bureaux, Acting-President of NSCC, Clayton Bartlett, vice chair of the NSCC Board of Governors, Senator Michael MacDonald, Deputy Premier Frank Corbett, and David Oulton, chair of the 150th Anniversary fundraising campaign, Building Futures, Construction Association of Nova Scotia.

Meanwhile, the Harbour Wing of NSCC’s Waterfront Campus in Dartmouth, N.S., recently became the second building in Nova Scotia to achieve LEED (Leadership in Energy and Environmental Design) Silver certification.

The LEED Silver certificate was presented to NSCC president, Dr. Joan McArthur-Blair by the Canadian Green Building Council (CaGBC) Atlantic Chapter last year during the BuildGreen Atlantic Conference and Trade Show held at Waterfront.

Greenbuild 2011 The Canada Green Building Council (CaGBC) will be the host committee for Greenbuild 2011, the U.S. Green Building Council’s Annual conference and expo. Greenbuild will be held in Toronto Oct. 4-7.

As Host Committee CaGBC will work with its Chapter executives and local partners to deliver off-site training, regional education and green building tours. Additionally, CaGBC will coordinate the recruitment and management of over 1000 youth volunteers on site. The participation of CaGBC will ensure that Canadian green building practices are highlighted and tours include local LEED® certified buildings.

“Greenbuild 2011 will be the first time we hold Greenbuild outside the U.S., but it’s been a truly international show for years, with attendees from

more than 75 countries joining us in 2009,” said Kimberly Lewis, Vice President of Conferences & Events for the U.S. Green Building Council.

Green Building Resources Green Globes: Green Globes is an on-line auditing tool that lets designers, property owners and managers assess and rate existing buildings against best practices and standards, as well as integrate principles of green architecture at every stage of project delivery for retrofits and the design of new buildings.

URL: http://www.greenglobes.com BOMA Go Green: A designation program designed by the British Columbia Building Owners and Managers Association (BOMA BC) that recognizes buildings that meet minimum environmental standards in five major categories.

URL: http://www.boma.bc.ca Green Building Information Centre: The site provides links and other information on green building practices and technologies.

URL: http://www.greenbuilding.ca Source: Canadian Construction Association

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Feature but thanks to improved light bulb technology, 3” and 4” lights are more popular in residential applications, Cooper says.

Choose the size of the light to correspond with the level of illumination the homeowner wants. In its product literature, Canarm says 3” pot lights with GU10 or CFL bulbs are suitable for highlighting objects or illuminating

tasks. The 4” lights with GU10s or PAR20 bulbs provide excellent general lighting, while 5” and 6” lights offer consistent radiant lighting throughout the space.

“The great thing about recessed lighting is you can start a layering effect in the room,” Cooper says. The pot lights saturate the area with an even glow, while ad-

ditional task lights, such as table lights or track lights, illuminate particular areas so the homeowner can do different things in different parts of the garage, perhaps designating one part of the garage workshop for carpentry and another for metalwork.

Assessing the number of pot lights required is a mathematical matter. For uniform lighting, Canarm recommends spacing the lights 4’ to 5’ apart. Use the width of the room to calculate the number of rows required. For example, an 8’-wide room would need two rows of lights spaced about 4’ apart. Use the depth of the room to figure out how many fixtures each row should have. For instance, a 12’-deep room would need about three fixtures in each row.

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Heating goes a long way towards transforming the garage from a cold, unwelcome box into a liveable area. Radiantfloor heating systems are one of the more efficient ways to address this.

Mike Wills, regional heating specialist at plumbing supplier Wolseley Canada, says radiant-floor heating systems that use hot water are the solution of choice for frugal homeowners. Electric heating is getting expensive as electricity companies raise their rates.

If the house has radiant-floor heating, it likely already has a boiler for the system, and the garage radiant-floor heating system can tie into the existing infrastructure, Wills says.

Heat-loss assessments help radiantfloor heating installers figure out how big the heat source needs to be. “Most of us who do design work are licensed to do heat losses,” he says.

Wills recommends introducing a glycol solution into the garage radiant-floor heating system. This anti-freezing substance helps ensure the system’s tubing does not burst in the winter.

Surprisingly, some customers do not add the antifreeze, which adds only about $100 to the cost of the system. “I get homeowners saying, ‘Well, I plan to run the thing constantly, so it will never freeze,’ Wills says. “I am there the following winter telling them they have a leak.”

Another concern has to do with household insulation and the vapour barrier.

Feature Most houses are designed such that the garage is considered a cold zone, and the vapour barrier is installed on the warm side of the wall between the garage and the home’s interior. What happens if the garage is turned into a warm zone, heated to the same temperature as the inside of the house? Wills points out that the vapour barrier could be compromised. “You could cause yourself a whole lot of grief with moisture problems.”

If the homeowner wants to use the garage as something more than an occasionally-heated supplementary area, he should consider having the doors properly sealed and the home insulation system remediated to accommodate a new interior space, Wills says.

PHOTO: COURTESY OF KNAPE & VOGT

Get organized: Tired of losing hand tools, garden implements and sports equipment in the chaotic piles growing in the basement or the attic, homeowners seek to turn the garage into a haven of organization, with sufficient shelving and cupboards to sort the clutter and make it more accessible.

Many manufacturers offer storage solutions to help homeowners organize household items. Knape & Vogt says its Matrix Wall Organization System is the first to incorporate heavy-duty adjustable shelving and easy-to-install hang rails for user-friendly wall storage.

The company designed the system such that the shelving and the hang rails could be integrated on a single wall. Traditionally organization systems separate the shelves and hang rails. That means the homeowner has to conform to the way the system is designed, rather than adjust the system to his own preference, says Knape & Vogt senior marketing manager Steve Beckwith.

The Matrix is particularly versatile, he says, adding that the system needs no tools for adjustment, and if the homeowner wants to rearrange the shelves and hang rails it is easy to do. Beckwith says the Matrix incorporates a patented locking mechanism that helps ensure shelves and hang rails cannot be knocked out of place inadvertently.

Beckwith says more and more people use their garages in new ways because houses are getting smaller. Contrary to

the trend towards large homes in the 1990s and early 2000s, people prioritize frugality these days, in “a rational approach to the environment and the economy,” he says.

Nonetheless, people need storage space, and if they no longer have five or six walk-in closets inside the house, the garage may be their best option.

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PHOTO: COURTESY OF PARA PAINTS

COVER

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COVER

Paints of A Different

COLOUR Contractors can expect more changes than a simple shift in paint colours.

W

hen it comes to the choice of paint colours, everything old appears to be new again. Homeowners are once again beginning to embrace vibrant colours and the latest choices have a decidedly “retro” appearance, suggests Garry Belfall, senior brand manager of PARA Paints.

“There is a big trend to bring pops of colour into the room, and maybe using colours you have seen in the past, like purples and candy apple greens reminiscent of the ’70s Dodge Chargers.” Bold accent walls are returning as well.

While the colours themselves have a familiar look, the paints which deliver them are continuing to evolve, particularly as the Government of Canada tightens the rules around the smog-producing Volatile Organic Compounds (VOCs) found in alkyd paints, varnishes and wood stains. As of last September, most of the socalled oil-based paints could no longer be produced or imported. Those that remain on store shelves can only be sold until September 2012.

The only alkyd versions that are still produced include specialized coatings such as the flat paint for stucco ceilings, stain sealing primers, rust preventing metal paints and high gloss floor enamels, notes ICI Paints.

The shift has actually been taking place over several years. While latex paints accounted for a mere 45% of paint sales in the 1980s, according to the Canadian Paint and Coatings Association, the waterborne products made up 82% of the market in 2009.

BY JOHN G. SMITH

Luckily, other paint formulas have been evolving to meet the needs that were traditionally met with alkyds.

High-quality latex paints now include ceramic “microspheres” that will easily roll or spray onto a surface, and fill the voids in each stroke of the brush better than a value-priced product. Modern acrylic paints are also more effective at retaining their colour than other waterborne paints, ensure an even cut into corners when working with a brush, and offer better adhesion properties.

Hybrid paints: The latest paint formulas to fill the void left by alkyd paints are coming in the form of “hybrids” which combine alkydbased resins with low-VOC delivery methods. “There are other things in the paint that take the place of the solventbased ingredients,” Belfall explains. While latex formulas held between 100 g and 150 g of VOCs per litre, the levels in hybrid paint can be 50 g or less.

Like the latex paints which came before them, these hybrid paints need to be applied with synthetic polyester brushes rather than the pure bristles that were traditionally used when working with alkyd paints. Any cleanups, meanwhile, will be possible with soap and water.

“The roller application is smooth like a dream,” says PARA technical services manager Andrew Fedele. Even though the first coat with a brush may feel like a latex paint, the second coat will slide with ease. There will be a difference in drying times, and painters can expect to wait 12 to 16 hours before adding a second coat.

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Professional painters might also appreciate the impact that hybrids can have on other tools. Depending on the sheen or grade of the paint, latex formulas have been known to spit, spray or fishtail as they build up in the orifice of a sprayer, whereas the oil in a hybrid acts like a lubricator, Fedele says.

Hybrid technology is even making its mark in a new generation of stains. PARA, for example, is actively experimenting with the way that the new formulas will absorb into the wood, and looking at the transparent oxides which will help the product stick to a surface and prevent chipping, cracking and peeling.

It is not the only way that environmental trends will influence the choice of stains. The growing interest in greener products could lead some customers to consider other traditional coatings such as linseed oils, Belfall suggests.

PHOTO: COURTESY OF PARA PAINTS

Application tips: Like every paint or stain that has come before them, the latest coatings require a close attention to the surfaces that they will cover.

Latex conversion primers will offer a sound foundation when trying to cover an existing alkyd surface, but Fedele still recommends a proper preparation of the surface before that. “You do not know how long that oil surface has been there and how it has been maintained,� he explains.

The only alkyd versions that are still produced include specialized coatings such as the flat paint for stucco ceilings, stain sealing primers, rust preventing metal paints and high gloss floor enamels, notes ICI Paints.

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Feature When it comes time to prepare a wall that has already been covered with alkyd paint, Fedele recommends hand sanding the surface with a 100 or 120 Grit paper. In cases where drywall dust could present a problem, such as the middle of an active office, the surface can simply be washed down with a mixture of 400 g of Tri-Sodium Phosphate (TSP) per 4 L of water. Of course, that mixture will still need to be washed away before paint can be applied.

The choice of primer will also be important when making a radical change in colour, maybe to cover neutral tones with a dramatic purple that Belfall has describes as the “Colour of the Year.” In these cases, a tinted primer will help to limit the number of surface coats.

When it comes to blocking the signs of water or smoke damage, a latex-based stain blocking primer can work, although extreme damage will still require the layer of an alkyd or alcohol-based formula.

The need to prepare a surface even extends to stains.

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“I do not care if it is a day old or 100 years old. It has to be prepped,” Fedele says, referring to the care that needs to be taken when covering a deck, fence or wooden siding.

If possible, that means sanding, although the painting veteran admits that is unlikely when working on a 10,000-sf vertical surface.

“Who is going to sand a vertical, two-storey building?” he asks. In cases like that, the use of TSP or a pre-packaged deck prep or deck wash will make the difference. “You might have to use a brightening agent first to take off the dead scales.”

Pittsburgh Paints suggests that most exterior wood surfaces can be renewed in just five steps. Any rotten pieces should be replaced, while the wood which remains should be prepared for cleaning. Surrounding vegetation should also be covered before the cleaning begins.

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is absorbed in less than 10 minutes or the color darkens, staining or sealing is needed, the company says. When working with older, weathered wood, cut a small X in two or three random spots, cover them with duct tape and then pull off the tape. If flakes of old stain stick to the tape, the existing coating will need to be stripped.

Just keep in mind that, when cleaning the surfaces, power washers can actually drive a layer of dirt into the grain, and may lead to splintering. Specific cleaning products are a better bet, and they require less work.

Even garage floors require some advance work before being covered with their specially designed paints. “Do not think you can vacuum, sweep, paint and put it to use in 48 hours,” Fedele says. Concrete floors will first need to be etched, rinsed, and left to dry for a day or two, depending on the environment. A clear coat will need another day to cure, while a solid coat will need two days.

In extreme cases, like the surroundings of a battery charging station, contractors will likely need to turn to an epoxy coating.

Just keep in mind that the two parts of an epoxy will usually require a “sweat-in” time of about 30 minutes before a job can begin.

The pot life of the paint can also be as short

When working with older, weathered wood, cut a small X in two or three random spots, cover them with duct tape and then pull off the tape. If flakes of old stain stick to the tape, the existing coating will need to be stripped. as 20 minutes to eight hours. (Pot life is the length of time paint remains useful once a container has been opened.)

Even the most experienced painters also need to recognize that the materials used to create some surfaces will evolve with time.

Newer stucco applications, for example, can be prepared for paint with a simple wash, while the porous “old-school stucco” will require a primer and block filler, Fedele notes.

As important as all of the preparations may be, he also stresses the importance of

discussing the paint’s sheen before any work is completed. Contractors will often receive a customer’s order for an eggshell paint, only to notice that the work extends into a cafeteria where a pearl would be a better option. There can also be differences from one brand to the next. Satin paint sheens, for example, can fall below an eggshell, or to somewhere between an eggshell and pearl.

When all these factors are addressed, painters can be confident that they have everything covered.

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Feature

OUTSIDE Activity

THE MOST OBVIOUS FORM OF TOOLS THAT ARE SPECIFICALLY DESIGNED FOR OUTDOOR WORK WILL COME IN THE FORM OF FUEL-POWERED EQUIPMENT.

BY JOHN G. SMITH

T

ools face more than their fair share of abuse at the best of times. The ongoing stress of hammering, drilling, twisting and pulling are simply part of the job.

It can still pale in comparison to the challenges that emerge when tools are asked to perform in the great outdoors.

“Fresh” air can come with added exposure 42

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to grit, dust and debris. Then there is the ongoing threat of moisture, whether it comes in the form of rain, snow or ice.

That is where features such as added insulation or rubber gaskets can make a real difference in the life of a power tool. “The manufacturer should exclusively say that it is weatherproof and can be used outdoors.

If that is not written in the user manual or any of the literature, it is not weather-

CONTRACTOR ADVANTAGE

proof,” stresses Venkatesh Rao, Makita Canada’s regional manager of sales and service for Ontario.

As damaging as moisture can be, outdoor power tools even need to be engineered to handle extended exposure to the sun on a hot summer day, adds Ted Fuller, vicepresident of King Canada Tools. “Otherwise, the sun starts to break down the plastics and things become malleable or brittle.”

PHOTO: THINKSTOCK IMAGES

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The most obvious form of tools that are specifically designed for outdoor work will come in the form of fuel-powered equipment, and one of the first things to consider here will be the length of time that the tool can run on a single reservoir of gasoline. This can be dictated by everything from the size of the fuel tank to the overall efficiency of the engine.

The combustion-related parts; how-

ever, deserve some added protection of their own, particularly in the face of the grit that can be blowing through the air.

“Change those filters, clean those filters, have a supply of filters and change them every two to three hours of running time, depending on what the operating manual recommends,” Rao says, stressing that this is particularly true when working with two-cycle engines.

The filters will be especially important when buying something like a gas saw that is used to cut concrete. While an entry-level design might have a two-stage filter, Makita offers a saw that comes with a five-stage filter. “By the time the air comes through the five filters, it is pretty clean,” he observes.

The steps to protect the tools do not end there. A two-cycle engine’s required mixture of gas and oil can also vary widely

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Feature

PHOTO: COURTESY OF MAKITA TOOLS

Advances in cordless technology are making battery-powered tools available for power-hungry tasks that have traditionally needed a power outlet. depending on the engine itself. “It is normally 50:1 but some are at 25:1,” Rao says, adding that entry-level models may require even higher volumes of oil. “There are all kinds of crazy ratios.”

The ratio is not the only factor to consider. The mixture of fuel and oil needs to be fresh, since it will begin to separate shortly after being combined. A contractor who reaches for a mixture that was created just two days earlier may actually be pouring pure gasoline into a cylinder. “Keep the oil in the oil bottle and the gas in the gas bottle,” he says.

Meanwhile, advances in cordless technology are making battery-powered tools available for power-hungry tasks that have traditionally needed a power outlet. Compared to their NiCd counterparts, the latest generation of Li-ion batteries offer a higher powerto-weight ratio and deliver forces which will

not fade away as the energy is consumed. The most recent models are lighter and stronger than ever before, and incorporate digital power management features to maintain battery life and runtime.

Rao, for example, recently introduced a customer to a 36-volt blower to help clear the debris out of concrete forms. In addition to delivering the required power, the battery-powered tool could also be operated inside a building, unlike gas-powered designs. The battery technology is even making its presence known in landscaping tools, creating options like a 36-volt string trimmer which can be used in an enclosed area like a greenhouse.

Those who expect to use corded tools on an outdoor job site will likely need to generate their own power supplies. Luckily, these generators can be ordered with some added protection as well. While basic

models leave many components exposed to the elements, those that are enclosed by insulating panels will enjoy a protective shield against any contaminants. An added advantage is that the shielded designs will be quieter, which could help to reduce noise-related complaints.

A quick review of the tools that will draw on the generator’s power can help to identify the required output, and this process might offer a few surprises. For example, a 7-1/4” circular saw which runs on 1,400 W may suck up 2,300 W of power when it is first started. In fact, starting wattages can often be two or three times higher than ongoing power demands.

Given that these generators are actually producing electrical power, any outlets should also be equipped with Ground Fault Circuit Interrupters that will trip if a corded tool is exposed to water.

No matter what design of generator is used, it will be important to keep this valuable tool on an even surface so the crankshaft and pistons can enjoy a steady flow of oil. The issue is such an important one that some Makita designs include an oil alert switch that will shut down the engine if the oil does not reach the required areas.

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PHOTO: THINKSTOCK IMAGES

Feature Meanwhile, the compressors that power air tools can also be designed to meet the demands of an outdoor environment, Fuller says. Unlike those made for a shop environment, where temperatures rarely drop below 18°C, the compressors that will be thrown into the back of a truck should be equipped with a double capacitor, a strong unloader valve that uses trapped compressed air during re-starts and an oil-less design. With the latter equipment, there is no worry about a thick oil to prevent start-ups, he adds.

When it comes time to pump any standing water that might exist on a job site, it will be important to remember that pumps are designed for specific types of spills. A spill with a high level of solids will damage impellers and pop seals in a pump that is designed to draw clear water. Any diaphragm pump should include a screen that limits that size of debris which can be pulled through the suction hose, Rao adds.

Different outdoor demands extend to the choice of safety apparel, too.

A split leather work glove may be fine for dryer environment, but those working in a wet area will want the smooth grain leather that is better able to resist water, suggests Scott Lang, account manager of McCordick Glove and Safety. Coated gloves are also growing in popularity because they offer various levels of protection with some added dexterity. “They still give you all the protection you need, but they are a lot more comfortable.”

Thin fleece liners may be warm enough for the spring and fall, but a heavier pile liner will be appreciated in colder weather.

Plastic liners inside that will be useful when handling lumber covered in ice and snow.

Even though the outdoor surroundings will not be as noisy as a stamping factory, outdoor tools require varying degrees of hearing protection as well, whether it comes in the form of disposable ear plugs, reusable silicone designs or ear muffs.

Technology has made its own difference in some of the latest ear muffs, including “push to talk” buttons or an automated fea-

Even though the outdoor surroundings will not be as noisy as a stamping factory, outdoor tools require varying degrees of hearing protection as well, whether it comes in the form of disposable ear plugs, reusable silicone designs or ear muffs. ture that will make it easier to hear a talking co-worker as long as the noise is below 85 dB. (Most hearing protection is rated to address the noise found somewhere between 22 dB and 30 dB above that.)

The choice of hard hats will likely be dictated by the region where they are worn, and there are some key differences in designs. A simple CSA Type 1 comes with a pin-locked suspension or a ratchet-adjusting suspension, while the CSA 2 includes a foam insert liner that can protect from lateral impacts.

“In B.C. and the East, the CSA 2 tends to be more widely demanded,” Lang says, referring to the way regulations will vary from one region to the next. A full brim will be important for those who deal with a stream

of smaller debris, but they also deliver some added protection from the sun.

The quality of any rain suits, meanwhile, will usually be dictated by the materials that are used. A yellow PVC design may be affordable, but it is also more likely to tear than the lighter PU materials which are designed to stretch.

When it comes to safety glasses, a smoked lens will be a nice addition on a summer day. Options for combined indoor and outdoor work are also available with a lighter tint. Leading designs are even polarized.

They are the types of features that can make working in the great outdoors just a little bit greater.

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Feature

&

Sealing the deal on

foundation insulation

waterproofing Moisture and water seepage can bring a basement to ruin. Contractors can play a pivotal role in ensuring that does not happen.

BY NESTOR E. ARELLANO

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L

onger daylight hours, sprouting flower buds, the return of songbirds and finally an end to cold, snow covered mornings. Spring brings a lot of good tidings, but with the melting ice and frequent rainfall comes an unwanted byproduct: basement flooding is a common occurrence in many parts of Canada.

The Canada Mortgage Housing Corporation (CMHC) estimates that basement flooding-related insurance claims to be in the order of more than $140 million each year.

This represents an average of up to 40,000 incidents per year. The average cost of damages range from $3,000 to $5,000 per incident.

The good news is that many types of basement flooding can be prevented and contractors can help many owners save thousands of dollars in repairs, lost time and anxiety by employing well-planned preventive measures. Frequently, many homes remain improperly insulated and waterproofed because of cost cutting measures on the builder or homeowner’s part or ignorance of the proper installation of materials.

All washed up: A wet basement can reduce the value of a home by as much as 25%, according to Peter Barrett, product manager at Cosella-Dorken Product Inc., Ontario-based distributors of the Delta brand of insulation and waterproofing products. “Apart from eventual damage a building’s components and homeowner’s property chronically wet or frequently flooded basements are a potential source of other serious problems,” he says.

PHOTO: THINKSTOCK IMAGES

Moisture-related problems can include: • Potential respiratory ailments among inhabitants; • Long-term damage to building and equipment that may not be covered by insurance; • Increase in insurance rates due to frequent flooding claims; • Depreciation of property value because basement is prone to flooding.

Proper insulation is critical to keeping basement dry. The ground stays cool all year round and this keeps basement walls cool.

When warm air in the room meets the cool walls this causes condensation. Condensation is the primary source of moisture that causes mold and mildew problems in basements.

Barrett says that one way contractors can help homeowners is by helping them recognize the signs of a poorly insulated basement.

partial depth foundations that create a crawl space under the house. Whatever the type of construction, most foundations or basements have no insulation at all, according to the Natural Resources Canada.

Barrett identified several types of foundations.

Poured or concrete block foundations – In use since the 1920s, these foundations usually have damp-proofing and drain tiles

Contractors should look out for the following: • Mold and mildew typically grow in damp and dark area, they cause discoloration or musty odours; • Moldy odours indicate that wood is decaying from mold and dry rot; • Peeling paint is a sign that a home has moisture and or waterproofing issues; • Damp spots on walls mean that water is being absorbed through the walls; • Cracked foundation walls and floors need to be inspected to determine their cause and if there is water seepage; • Rust in furniture and appliances could be a sign of a wet or moist environment; • Appearance of white substance on basement walls could indicate chemical breakdown due to moisture of bonding agents that hold walls together.

Foundations : Basements are a major source of heat loss.

According to Natural Resources Canada basements can account for 20% to 35% of a home’s total heat loss. This is largely because most basements have uninsulated surfaces and are below ground level. There is also considerable air leakage through basement windows and air penetration through wall and foundation cracks.

This means there is a huge opportunity for contractors to provide improvement services in terms of insulation repair, renovation, damp proofing and waterproofing, says Barrett.

The most common type of basement is the full foundation basement which can be finished to create a living space. Many houses are also built with

in the exterior. Many are in need of repair by now. These basements can be insulated from the outside or inside.

Older foundations or brick, stone or rubble (Often uneven and can vary in depth and thickness.) Rarely damp-proofed and have high mortar content which can absorb water from the ground. These foundations have a history or moisture problems and should be insulated from the outside.

Preserved wood foundations – Many newer homes are built with foundations of wood studs and sheathing that are specially treated with chemicals to resist rot and insects. These homes are generally fully insulated.

Frost protected shallow foundations – In cold climates, building foundations must reach below the frost line to a depth of the soil that does not freeze. Freezing causes soil to heave upward and then sink again causing everything above the soil to shift. Frostprotected shallow foundations employ a

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Feature

construction method that uses insulation and drainage to allow for a shallow foundation, which brings down the cost of construction.

Moisture management best practices: One of the most common mistakes of contractors is neglecting to install the right type of insulating material suited for the foundation and environment where the client’s home is situated, says Jim Whalen, technical marketing manager for PlastiFab, makers of expanded polystyrene products in Calgary. “Many people fail to determine the most efficient type of insulating material for the job or very often they fail to install it properly according to manufacturer instructions.”

PHOTO: RESISTO (LEFT), DELTA (RIGHT)

Other common mistakes contractors should avoid are: • Not providing good air circulation between wall and insulating material; • Installing insulating membrane with vapour barrier side facing the outside or towards the heated side; • Omitting the use of a vapour barrier or insulating membrane which is needed to prevent moisture collecting between the batting and wall; • Puncturing the insulating membrane or vapour barrier unnecessarily; • Distorting, compressing or squeezing insulating membrane or batting out of shape; • Neglecting to install insulation in small spaces and corners;

• Covering eaves vents and drains with insulation; • Not using closed-cell (waterproof), rigid insulation panels on below grade installations.

Generally moisture comes from the basement slab itself. To address this, contractors can add a layer of up to 2” thick rigid foam insulation topped with a plywood subfloor. The insulation provides a break between the slab and subfloor preventing moisture from damaging the finished floor.

If a house has a poured concrete foundation, contractors can also use a highpressure system to fill in cracks in the foundation. In this method a polyurethane resin is applied to the length of the crack filling it to the surface of the foundation.

Whalen says rigid insulation such as the PlastiSpan insulation board is ideal for foundation floor and interior wall spaces. The system which can be installed with nailers can raise surface temperatures to within 3° C under normal conditions.

Moisture seeps into foundation walls while hydrostatic pressure and gravity forces water through cracks on the walls. To seal these cracks, contractors can excavate the perimeter of the house to access problem areas and then install a flexible waterproof membrane on the wall below the ground level, says Steve Duplantis, account manager for Cosella-Dorken.

He says building codes require damp proofing of foundations, which means insulation systems need only to resist water that is not under pressure.

“Delta MS damp proofing and waterproofing membranes, however, are able to resist water seepage when hydrostatic pressure is present due to a large amount of water in the soil,” Duplantis says. This pressure, he adds, forces water into cracks in the foundation walls.

The Cosella-Dorken Delta MS membranes are polyethylene sheets that have a dimpled surface. Duplantis said these

dimple patterns form a vacuum that creates an air gap between the membrane and the foundation wall.

“This design allows incidental water to getting past the dimpled membrane to flow freely to the perimeter drain rather than allow moisture to collect on the wall.”

Bernie Gauthier, sales representative for Drummondville, Que.-based Resisto Waterproofing Solution says that for waterproofing purposes a bituminous based sheet works best. Bituminous sheets, like

“Frequently, many homes remain improperly insulated and waterproofed because of cost cutting measures on the builder or homeowner’s part or ignorance of the proper installation of materials.”

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PHOTO: THINKSTOCK IMAGES

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the Resisto Base Sheet Waterproofing Membrane, provide an additional layer of protection when installed under an insulating membrane, he said.

The Resisto Base Sheet Membrane is a 2.36” thick self-adhesive sheet of elastomeric bitumen and woven polyethylene. Bitumen, also often referred to as asphalt, has been used for waterproofing and adhesive purposes for centuries.

Another way of insulating foundations is to use Insulating Concrete Forms (ICFs).

ICFs are formwork for concrete that stays in place as a permanent building insulation used for cast-in-place, reinforced concrete walls and floors. (See p. 55.)

Water moisture problems can also be caused by a clogged weeping tile. A weeping tile is a 4” diameter porous pipe that runs the perimeter of a foundation. It collects ground water from around the home and drains it to the storm sewer or a sump pit. The weeping tile can be clogged by tree roots and other debris.

Before digging the foundation, a contractor should inspect if it is possible to clear the clog by snaking the pipe, since avoiding excavation can save homeowners money. For instance, high pressure injection of cracks may be the cheapest way of dealing with moisture problems.

This method could cost around $500

Duplantis says installing waterproofing per crack compared to excavating the foundation from the outside which may and insulating systems is always cheaper cost anywhere from $100 to $400/lf de- when the job is being done at the early conpending on what type of equipment has struction stage of the building or before to be brought in. Digging from the inside remodeling or finishing the basement: “Homeowners can save a lot of money could cost around $60 to $150/lf.

Membranes and weeping tiles can also be when they do not have to dig up dirt or rip installed on the inside of a building if digging out any existing installations.” outside the house is not an option due to budget constraints or lack of space.

To install an interior weeping tile system, the basement floor has to be removed about a foot from the wall “The Canada Mortgage and then a 6”x6” area is excavated down the footing to for a Housing Corporation (CMHC) new weeper. A dimpled insuestimates that basement lation membrane is applied to the inside wall leading flooding-related insurance claims to be into the weeping tile. The weeping tile is connected in the order of more than $140 million to a sump pit or existing each year. This represents an average of storm line.

Installing an interior up to 40,000 incidents per year. weeping tile is not a recommended method and The average cost of damages should be done as a last rerange from $3,000 to sort. Better and lasting results are achieved by tackling moisture $5,000 per incident.” and water drainage problems before they enter the building, according to some contractors.

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Feature

A Foundation of

ENERGY SAVINGS PHOTO: READY MIXED CONCRETE ASSOCIATION OF ONTARIO

Soaring energy costs and building code changes are driving greater interest in ICF.

F

or a product that has been around for forty years the profile and popularity of insulating concrete forms is not as high as many might think. As a consequence, ICF remains essentially a niche material and not fully understood by many.

Well, it seems probable that ICF’s edgeof-the-radar position is about to change thanks to soaring energy costs and the multiple new codes that mandate just-built and renovated buildings meet certain energy efficiency standards. This, say observers,

BY DAVID CHILTON will mean the other important qualities of ICF will gain further traction and appreciation within the contracting industry.

“In Ontario specifically, and I know in B.C., on January 1, 2012 the energy codes that are going to be coming with the building code are going to have a huge impact on promoting this technology as a solution to greater energy conservation,” says Ross Monsour, director of marketing for the Ready Mixed Concrete Association of Ontario in Ottawa.

The energy angle is something that Gael Mourant, president and CEO of

ARXX Building Products in Cobourg, Ont. also points out as a likely driver of ICF gaining more widespread acceptance.

At the moment, ARXX, a manufacturer of ICF, is supplying a couple of armed forces bases with product, although it was not so much selected for its ability to withstand the rigours of military life but for its energy conserving properties, says Mourant.

Further, she says, at an affordable housing project ARXX worked on in Philadelphia, where before energy costs ran each household $200 to $300 a month, the use of ICF has lowered the bill substantially, down to

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Feature

about $60 a month. “The energy codes are coming towards us,” says Mourant.

Given ICF’s energy efficiency, just how good is it? Much will depend on the thickness of the material, usually called “foam” but actually polystyrene, and the amount of concrete poured. However, insulation values can range from R-17 to R-26, compared with the R-13 to R-19 for typical wood framed walls. Furthermore, ICF addresses the age-old problem of air penetration: as it is an envelope, using ICF will eliminate air leaks, which can represent up to 40% of the heat load requirements of a typical wood frame house.

Most would conclude that in a world of scarcer and scarcer and more and more expensive energy ICF should be welcomed.

So what is it? Put simply ICF are a series of rigid foam blocks and panels of widely varying shapes and sizes that are used to hold poured concrete instead of the much more usual plywood or steel framing. ICF blocks, especially, have been likened to the blocks a child will snap together, although ICF panels work on exactly the same principal. The joints connecting two pieces can take any shape, says Mourant, noting two common ones, crenellated and dovetail.

The three basic ICF types are hollow foam blocks, foam panels with integral or plastic ties to hold them together, and foam planks, also kept together with plastic ties.

The foam used, as already noted, is expanded polystyrene or extruded polystyrene, the sort of material familiar to many from takeout coffee cups and the trays used in supermarket meat departments.

ICF provides backing for any interior or exterior finish and, despite what some may think, buildings using the product are not

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PHOTO: READY MIXED CONCRETE ASSOCIATION OF ONTARIO

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uniformly rectilinear; manufacturers can supply blocks, panels or planks to conform to any floor plan. Another benefit of IFC is that it protects concrete from freezing and drying too quickly. Cold weather is no barrier to using ICF either: whether above or below grade, concrete reinforced with rebar can be poured into the forms when the temperature is as low as approximately -12°C, with just the top of them requiring insulated cover. Although Canada is not earthquake prone, and hurricanes here are a rare event, Mourant says ICF is made to perform in all seismic zones and provides excellent resistance to high winds. Curing for ICFs takes about seven days, and after construction, standard materials are used to finish the roof, floors and interior walls.

Fastening siding, brick, drywall and the like to ICF is a matter of using attachments. Each manufacturer has its own design usually made of steel or plastic, although with the latter care must be taken to avoid driving screws too far because the plastic can be stripped away from the screw shank. Another useful tip is to examine how much of the attachment area is available for nailing and screwing because the more the better, since a nail and a screw need more than a foam bed to rest in. As for its durability, ICF has a good reputation. It is more resistant to moisture and rot than wood, does not produce off gasses and it is far less attractive to termites and other pests.

Since wood framing remains the standard in Canada, switching to ICF construction may seem daunting with a steep learning curve requiring extensive instruction. In fact, using ICF is not especially complex, although it is rather more complicated than those children’s blocks. “The concept is simple,” says Monsour, “but working with concrete is always complex. All the rules of proper concrete construction apply.” Nevertheless, Monsour, who helped a friend build his house with IFC, does not think learning to use the system is particularly difficult. “The learning curve is not that steep for a contractor, but you will still go CONTRACTOR ADVANTAGE

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Feature through building your first one; there will be little nuances that you are not used to.”

Luc Cecire, an evaluation o-fficer at the Canadian Construction Materials Centre in Ottawa, says ICF is fairly easy to use, but points out that stacking one thing on top of another requires a geometry that is different from that used in wood framing. “I think that contractors have got to be knowledgeable to use them,” says Cecire.

Given its relative ease of use and attractive qualities such as lowering energy costs and providing much better sound proofing, the next obvious question is how much does ICF cost. That depends on who is doing the math and how. While cost is a factor, it does not seem to be an insurmountable one. “I do not think ICF’s small market share is an issue of cost. Like any green building material ICF has to be competitive on a first cost basis and lower on a total cost basis,” says Mourant.

“And that is what they do. They lower the total cost of ownership and they do it in a fundamental and substantial way. I think the real issue, in terms of why ICF has not broken in, to the extent that it should have based on the merits of the product, are a couple of things. One, construction industry is slow to change; it is slow to innovate because it has not had to. The second thing is I do not think ICF companies have gone to market in a way that has facilitated the spread of knowledge and the ease with which people can build using it.”

Like Mourant, Monsour does not think that cost is holding ICF

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back. Rather, he says, it is the perception of higher cost that is likely at fault. Remember, says Monsour, using ICF means eliminating certain trades and better, less costly construction scheduling, so any cost advantage that comes from wood framing is negated. Also, adds Mourant, since ICF is lightweight and easy to handle it may mean there are fewer costly injuries on the job site.

As for how contractors can integrate ICF into their business, if they have not done so already, Mourant says it is a matter of where they use or intend to use the 62

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MAY/JUNE 2011

system. “Most homes in Canada have a basement, which is an ideal for ICF, and certainly with the province of Ontario now requiring all basements to have full height insulation, ICF is a much better solution,” she explains. Contractors can deliver a finished basement faster and easier and at the same time they can use wood framing above grade, says Mourant, noting ARXX also offers ICF training to contractors and their employees through its distributors.

Monsour speaks in a similar vein about the benefits of joining an ICF association.

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“The ICF industry has had trouble getting together as a group,” he says. “The North American association has come and gone and it is still working out of another office in the States, but my group has become sort of the Canadian focus. Together there are common technical issues; there are common marketing issues. There are federal and provincial dollars that are available to assist this industry, but you cannot access them on an individual basis.” Furthermore, says Monsour, there is a national code process to contribute to, and although people think that B.C. is different from Nova Scotia and Ontario is different from Quebec, “It is still the same physics.”

Belonging to an ICF association is also an economic benefit, because marketing and other costs can be shared, says Monsour, before concluding that ICF’s day is coming and that energy costs are what is spurring it on.

PHOTO: READY MIXED CONCRETE ASSOCIATION OF ONTARIO

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