Contractor Advantage November / December 2011

COMPLIMENTARY

November/December 2011

CONTRACTOR ADVANTAGE

ALSO:

Tax Tips + Drywall + LEED 2012 +

CA N A DA’ S M AG A Z I N E F O R P R O F E S S I O N A L C O N T R AC T O R S

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Contents

38 Features

Get Your Tax Toolbox Ready

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It is time to get serious about the financial side of the business.

Unlocking Profit From Interior Doors

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Design trends are opening new opportunities for contractors.

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Looking Up Homes today are being built with a variety of ceiling styles and materials.

Master The Mouldings

42

32

Inside

NEWS WATCH / 5 NEW PRODUCTS / 9 BUSINESS STRATEGIES / 16 SMART MONEY / 18 ONLINE MARKETING / 21 ECONOMICS 101 / 22 LEARNING CURVE / 25

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The right choices will deliver the perfect finishing touches for every job

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Expert Panels 12 tips every contractor needs to know about drywall.

MasonryWorx releases new study New and improved products Changing direction

Will LEED Lead The Way In 2012?

The three C’s of security bonding Content is always king

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A new version is coming and the onus on contractors promises to be huge.

Accountability increases ability Work together, work safe

November December 2011 Vol. 17 No. 6

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

Editorial Director Castle Building Centres Group Ltd. Diane Jones Managing Editor Paul Barker Art Director Mark Ryan

Castle Building Centres Group Ltd., with building supply outlets in every province, is a 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

Contributors Nestor E. Arellano David Chilton Diane Ciotta Lawrence Cummer Victoria Downing Stefan Dubowski Josh Kerbel Paul Rhodes John G. Smith

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

CONTRACTOR ADVANTAGE

NOVEMBER/DECEMBER 2011

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Natural Born Leader The GE® Hybrid water heater uses innovative technology to save you $320 a year* without costing you a single drop of hot water.

Only an industry leader like GE could bring you a water heater that dramatically cuts your home energy costs. An efficient 2.35 Energy Factor helps reduce water heater energy consumption up to 62%. Remarkable efficiency and savings are what make the GE Hybrid water heater a Natural Born Leader. To find out how it works and where to buy, visit geappliances.ca or call 1-855-742-6112. *Based on DOE test procedure and comparison of a 50-gallon standard electric tank water heater using 4881 kWh per year vs. the GE Hybrid water heater using 1856 kWh per year.

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News Watch

Study reveals merit of masonry built homes A survey on new home buyer preferences shows that 89% of Ontario new home shoppers prefer a house made of brick or stone, but most also believe it is the most expensive option.

The idea that opting for a masonry exterior is vastly more expensive is a myth potential homebuyers should see past, says MasonryWorx President Dante Di Giovanni.

MasonryWorx is the trade association of brick, block and stone masonry industry professionals.

“Building your new house out of brick versus vinyl, for example, adds only 2-4% to the cost of the house,” he said.

Manny Brilant, senior design manager at Greenpark Design and Project Management, says that, “the majority of our purchasers have continually shown their preference for brick and stone because it is available in a broad range of colours, easy to install, relatively maintenance-free and durable.

Also, because brick and stone tend to hold their value well, the home is easier to re-sell.”

North American real estate professionals estimate that a brick home has a resale value 6% higher than homes built with alternative exterior materials; compensating for the initial investment in a masonry home.

The survey also revealed that 78% of new homebuyers put energy efficiency of their home as a top priority.

A computer simulation by the National Association of Homebuilders found that masonry buildings are 12-17% more energy efficient than other traditional building materials, even when the R-value of the building is 30% higher than industry standards.

“These are the tangible costs,” said Di Giovanni. “What the numbers do not show are the additional quality of life benefits of building with masonry, less street noise from neighbours combined with the greater peace of mind that comes with improved fire resistance.

“With small lot sizes and houses being built closer together than ever before these benefits cannot be overlooked.”

The new homebuyers survey, commissioned by MasonryWorx, was conducted

by Redfern Research and Pollara Strategic Insights to gauge consumer attitudes and awareness of masonry products.

The study was conducted using The Pollara Townhall, Pollara’s online panel of more than 250,000 Canadians, recruited from random-digit-dial telephone surveys.

MasonryWorx membership includes

product manufacturers, suppliers and skilled professionals from across Ontario.

Sally Moore, its executive director, said the survey was conducted because there was a lack of information about what home owners require when it comes to the exterior cladding of their home.

“There are opportunities for contractors,” she said. “The more knowledge you have the better you are going to be.”

CONTRACTOR ADVANTAGE

NOVEMBER/DECEMBER 2011

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News Watch

Sico and CIL Paints have announced their new colour palettes and décor trends of 2012 with an eye on individuality.

According to Sico, social media networks are driving consumers to be more expressive than ever before, while environmental issues remain a key focus of homeowners. To that end the company developed three prevailing colour trends its researchers see in demand in 2012: living scrapbook, one small seed and delicate mix.

Inspired by sites such as Facebook and personal creativity, Living Scrapbook focuses on balance, and warm colours. It features contemporary colours such as Sico’s Ming Red, sky blues like Santorini, Olive Chartreuse and yellows such as Star Coral for a modern but non-mainstream look. One Small Seed uses garden greens like Sico’s Namian Desert, dark browns like Pen and Ink and pastel blues like Lunar Month in order to highlight the connection between homeowners and the natural environment.

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NOVEMBER/DECEMBER 2011

Delicate Mix, the company says, is focused on creating subtlety, stillness, harmony and balance in turbulent time.

It focuses on neutrals, pinks and subtle mauves, like Sico’s Grey Drizzle, Satie White, Frangipani and Furtive Mauve.

Meanwhile, CIL Paint says the hottest colour of 2012 will be red. Depending on what it is combined with, red will create either a reassuring or edgy feel, be soft or bright and warm or cool, the company says.

The company says “daring to be different” is the dominant theme for its 2012 paint palatte, featuring the combination of hushed pastels and edgy bright colours, including: oranges (CIL’s Cinnibar), yellows (Golden Ember), greens (Calypso Green), blues (Lakemont), violets (Purple Haze) and neutrals (like Silver Quill or Sandringham).

“The 2012 colour palette is all about possibilities,” says Alison Goldman marketing communications manager for CIL Paints. “The more people get comfortable in their own skin, the more confidence they have to experiment with colour and the diverse and flexible palette of the coming year is the place to start.

CONTRACTOR ADVANTAGE

Housing starts are predicted to remain steady in 2011 and 2012, according to the third quarter Housing Market Outlook, Canada Edition from Canada Mortgage and Housing Corporation (CMHC).

Although strong in the past few months, housing starts are expected to moderate closer in line with demographic fundamentals, according to Mathieu Laberge, deputy chief economist at CMHC. Still, Laberge presents a positive outlook: “Despite recent financial uncertainty, factors such as employment, immigration and mortgage rates remain supportive of the Canadian housing sector.”

In 2011 the CMHC forecasts housing starts will be in the range of 166,300 to 197,200 units, with a point forecast of 183,200 units.

In 2012, the organization predicts housing starts in the range of 161,700 to 207,200 units, with a point forecast of 183,900 units.

Meanwhile, existing home sales will be in the range of 425,000 to 472,500 units in 2011, with a point forecast of 446,700 units. This is essentially the same as 2010. MLS (Multiple Listing Service) home sales are expected to improve modestly in 2012 to the range of 407,500 to 410,000 units, with a point forecast of 458,000 units.

The first half of 2011 saw an increase in MLS prices, in part due to higher-end homes being sold. For the remainder of 2011, CMHC expects prices to moderate, but overall 2011 prices will show an increase over last year. In 2012, prices are expected to be more modest as existing home markets become more balanced.

Meanwhile for the month of August, The seasonally adjusted annual rate of housing starts was 184,700 units, down from 204,500 units in July 2011.

“Housing starts in August were in line with current demographic fundamentals and are consistent with CMHC’s recent Housing Market Outlook,” said Laberge. “Housing starts decreased in all regions, except the Prairies with the decline being more pronounced in the multiples segment.”

The seasonally adjusted annual rate of urban starts decreased by 10.2% to 165,800 units in August. Multiple urban starts were down by 15.5% to 101,400 units, while urban single starts decreased by 0.3% in August to 64,400 units. August’s seasonally adjusted annual rate of urban starts decreased by 41.4% in the Atlantic region, by 15.3 % in British Columbia, by 11.8% in Ontario and by 8.8% in Quebec, while urban starts increased by 9.4% in the Prairie region over the same time period.

PHOTO: THINKSTOCK IMAGES

Housing market to remain steady in 2012

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thE pink panthEr™ & © 1964-2011 metro-goldwyn-mayer studios inc. all rights reserved. the colour pink is a registered trademark of owens corning. © 2011 owens corning. all rights reserved. †the insulation is manufactured with a blowing agent with 70% less global warming potential as compared to owens corning previous blowing agents. grEEngUarD children & schoolssm mark is a registered certification mark used under license through the grEEngUarD Environmental institute. owens corning pink™ insulation is grEEngUarD certified for indoor air quality, except bonded loosefill products. © 2011 owens corning. all rights reserved.

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New Products

Building Blocks Innovative Products for Today’s Renovators

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DRYWALL SCREWDRIVER IS LIGHTWEIGHT YET POWERFUL Makita’s new Pistol Grip Cordless 18V Drywall Screwdriver is lightweight, ergonomic and quiet, and works with batteries and chargers from other LXT tools.

The screwdriver incorporates the company’s battery protection system to prevent over-discharge, protect against temperature and current, and improve battery performance and life. A silent clutch offers smoother engagement of gearing to improve durability and increase efficiency, while a variable speed trigger allows operators to adjust driving speed based on materials or applications.

Available with two batteries, charger and carrying case (model #LXSF01) or only as the tool (model #LXSF01. This 1.7 kg screwdriver features a one touch locator for quick and easy bit changes, LED job light and ergonomic soft rubber grip to reduce vibration and increase comfort during use.

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COMPOUND MITRE SAW CONTAINS NEW BATTERY PROTECTION SYSTEM

The Makita 7-1/2” Cordless Dual Sliding Compound Mitre Saw (model #LXSL01Z) is lighter and more portable than full-sized corded versions, and uses the same batteries and charger as other 18V LXT tools from Makita.

A new battery protection system provides over-discharge, temperature and current production to enhance performance, battery cycle life and overall battery life, while an electric brake increases operator safety.

The saw’s dual-sliding rail mechanism incorporates six linear ball bearings for more precise adjustment free cuts, and an ergonomic soft rubber grip absorbs vibration and makes usage more comfortable.

The saw has a mitre capacity of 47° left or 57° right with positive stops at 0°, 15°, 22.5°, 30° and 45°. It has a bevel capacity of 45° left or 5° right. It weighs 11.8 kg and uses an 18V Li-Ion battery.

CONTRACTOR ADVANTAGE

NOVEMBER/DECEMBER 2011

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New Products

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GE GEOSPRING HYBRID WATER HEATER SAVES BOTH MONEY AND ENERGY

To create the next generation of water heaters, GE says it rethought every aspect of the appliance from the ground up.

The result is a new product that according to the company can reduce water heater operating costs by up to 62% and save the average household $320 annually.

The GeoSpring hybrid electric heat pump water heater contains technology that is designed to absorb heat in ambient air and transfer it into the water. The tank portion of the ENERGY STAR qualified appliance includes two electric heating elements, a pressure relief valve, an internal porcelain-lined tank and an anode rod.

A compressor and evaporator are integrated into the electric water heater unit and the evaporator draws in ambient heat from surrounding air using two variable speed fans.

Other features include a user-friendly control system located at eye-level to eliminate the need to bend down to the floor to adjust temperature settings.

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DEWALT LAUNCHES NEW LINE OF METAL CUTTING RECIPROCATING SAW BLADES

The 2X Longer Life Reciprocating Saw Blades from DeWalt are designed to cut through the hardest metals. Featuring a wide, thick design for better durability, these blades use an innovative coating process to increase their life and a variable pitch design for efficient cutting performance.

They are ideal for professionals tasked with work related to plumbing, mechanical and HVAC, demolition, electrical and general contracting, says the manufacturer.

To improve durability, the new blades have an increased height and thickness than standard DeWalt blades, measuring 1” tall and 0.042” thick. DeWalt has also redesigned its Precision Framing Blades to improve blade control and durability. It has incorporated a new anti-kickback shoulder to help reduce the risk of saw kickback.

The manufacturer says these new blades are ideal for framing, roofing, siding installation and concrete forms.

DeWalt’s 2X Longer Life Reciprocating Saw Blades are available in 6”, 8” and 12” lengths, while the new Precision Framing Blades are available in 6-1/2”, 7-1/4” and 8-1/4” diameters.

CONTRACTOR ADVANTAGE

NOVEMBER/DECEMBER 2011

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Colour featured is Taupe Slate

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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.

For additional information on our full line of premium roofing products please call: Eastern Canada 1-888-766-2468, Western Canada 1-800-661-1034, or visit our web site at: www.iko.com

New Products

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LAFARGE PLC CEMENT DESIGNED TO REDUCE CARBON FOOTPRINT

Lafarge recently introduced a new portland-limestone cement (PLC) that the company says provides performance similar to conventional portland cement, but with up to 10% less carbon emissions.

The cement has been approved for use by the Canadian Standards Association, the National Building Code of Canada, and the Building Codes of B.C., Ontario and Quebec, and PLC has been widely used in Europe for over 25 years. The new cement from Lafarge offers similar performance, workability, set time and durability to regular portland cement. The company will be transitioning to PLC this year.

The company’s plants in Richmond, B.C. and Bath, Ont. are expected to reduce CO2 emissions by 160,000 tonnes annually by making this change, which is equivalent to taking 30,000 cars off the road. In addition, it intends to combine other concretes with PLC to create further opportunities to reduce carbon footprint.

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DUCHESNE DBE-ECO REFLECTIVE INSULATION IS ECO-FRIENDLY

Duchesne has announced a new line of insulation, which is the only eco-friendly reflective insulation on the market.

DBE-ECO reflective insulation is available in two sizes: 48” x 125’ and 96” x 125’. The polyethylene film, the main component material, contains over 50% recycled materials. In addition to being environmentally friendly, DBE-ECO offers equivalent performance to standard products and can be used in attics, walls, water heaters, crawl spaces, as well as to replace other products of the same composition.

DBE-ECO is part of Duchesne’s ECO-ID program, offering ecofriendly products to meet the demands of environmentally-responsible consumers.

CONTRACTOR ADVANTAGE

NOVEMBER/DECEMBER 2011

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DUST CONTROL™ Drywall Compound by CGC is the first and only joint compound to reduce airborne dust.

HOME RENOVATIONS

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Dust Falls Straight to the Floor!

Introducing DUST CONTROL™, a revolutionar y new dr ywall compound by CGC. DUST CONTROL™ is the first and only dr ywall compound engineered to significantly reduce airborne dust from sanding.

It is ideal for those jobs where protection from dust infiltration is crucial such as homes, schools and office environments. With DUST CONTROL™ Dr ywall Compound, dust falls straight to the floor, making clean-up faster and easier than ever.

The CGC logo and DUST CONTROL are trademarks of CGC Inc.

New Products

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ROXUL LAUNCHES NEW WALL SYSTEM, EXPANDS COMFORTBATT LINE

Roxul Inc. has launched a new lineup of ComfortBatt products designed for steel stud construction and introduced a new wall system, which it says offers higher energy efficiency, sustainability, and better overall durability and performance.

The ComfortBatt steel stud products are available in R10, R14, R22.5 and R24 values and are part of Roxul’s new wall system that uses ComfortBatt insulation in the metal stud wall and CavityRock insulation in the cavity.

The wall system includes a thick batt of Roxul thermal insulation in the stud wall (up to 6”), combined with a high density, semi-rigid insulation board (up to 5”) in the external cavity.

The thermal value of Roxul insulation does not change over time, as stone wool is not produced with blowing agents, which offgas and result in lower thermal performance. As a result it does not sag in the wall cavity, leaving gaps around the perimeter, or permanently shrink.

Moulding Millwork CONTRACTOR ADVANTAGE

NOVEMBER/DECEMBER 2011

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Business Strategies

Changing Direction There is a reason why some are able to successfully transform their business practices and others cannot.

BY VICTORIA DOWNING

At Remodelers Advantage, we work with hundreds of remodelers to help them improve the performance of their business. We share the tools that we know, from years of experience, will definitely make a difference in productivity, profitability and overall work satisfaction.

Some of our clients grab hold of this advice, change systems, priorities and behaviours, and sprint forward seeing very positive results.

Others, hearing the same advice, just are not able to make the changes that could, very possibly improve their lives. They may try for a few months, but many, after six months, have not taken the steps that are so important to them and their families.

Why are some able to make important changes to their business practices and others are not?

The answer may be in a new book from the authors of two of my other favourite business books, Crucial Conversations and Crucial Confrontations.

The new book, Change Anything: The New Science of Personal Success

by Kerry Patterson, Joseph Grenny, David Maxfield, Ron McMillan and Al Switzler, is a compelling read that quickly identifies a large reason that many people fail in their attempts to change: we rely on willpower alone.

They say, “When people believe that their ability to make good choices stems

from nothing more than their willpower, and that willpower is a quality they are either born with or they are not, they eventually stop trying altogether. The willpower trap keeps them in a depressing cycle that begins with heroic commitment to change, which is followed by eroding motivation and terminated by a relapse into old habits. When the pain of their bad habits becomes intolerable, they muster up another heroic but doomed attempt at change.” They believe that our ability to make the right choices is influenced, positively or negatively, by six main elements and that if we can learn to “see” those sources of influence, we can manipulate them to help us reach our goals. The authors

Victoria Downing is president of Remodelers Advantage Inc. and is a leading authority in the remodeling industry. She has authored and co-authored several industry books, including The Remodeler’s Marketing PowerPak. She can be reached at victoria@remodelersadvantage.com or by phone at 301-490-5620 ext. 105.

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CONTRACTOR ADVANTAGE

categorize these important influencers in the following categories and provide us with logical strategies to use on each: • Personal Motivation: personal desire to make the change happen.

• Personal Ability: the skills and information you may need.

• Social Motivation and Social Ability: the influence of friends, co-workers and family.

• Structural Motivation: the influence of incentives.

• Structural Ability: the space around you.

The authors say, “…when it comes to changing ourselves, it is best to use strategies from each of the sources of influence, especially those that are currently working against us. If we do not, we will be outnumbered and out of luck.”

So the first step: Take a look at your life and think about the crucial moment when you made a bad decision. Try to determine

Business Strategies

which of the six sources was influencing you at that moment.

Pinpoint your problem areas and then use the simple but breakthrough tactics provided.

Let us take a quick look at the tactics in two main categories.

Source 2, Personal Ability: The authors believe that one source of influence is our personal knowledge or skill and that a good cause of failure to change our behaviour is simply a lack of it.

They suggest that the first step in overcoming this negative influencer is to do a “Skill Scan” to determine what knowledge you may be lacking that would help you change. You may be surprised at the education or training you need.

Secondly, use deliberate practices to put the skills you are learning into place. Instead of talking, talking, and talking about the

issue, make a conscious effort to use the skills in real life. The more that the change skills are used; the easier it will be to use them when a crucial moment that tempts you away from your goal occurs.

Source 5, Structural Motivation: In this chapter the authors suggest that using the right kind of incentives can have a significant impact on changing behaviour and they suggest a strategy of inverting the economics; developing an incentive that would charge for bad behaviour instead of rewarding for positive.

They use a study from Daniel Kahneman, a behaviour economist, to demonstrate that we humans “have a bizarre quirk hardwired into us. That is, we are far more motivated to avoid loss that we are motivated to receive an equivalent gain.”

The authors suggest that an incentive

to get ourselves to change is to put something you care about at risk. For example, if money is important to you, put up $2,000 as an incentive to make a change.

For example, if your goal is to complete estimates within four days of the client meeting, then each time you miss this goal, $500 will be given to a political party that you oppose.

Another tactic to improve structural motivation would be to reward small wins; focusing on the actions you are taking, not the results that you achieve. “Results are often out of your control (at least in the moment), so link your incentives to something you can control.”

By breaking down the various elements that can push us away from a goal, or pull us closer, the authors show us that willpower alone will rarely be enough. By using practical tactics from all six sources of influence, we can succeed in changing our behaviour, changing the results we see and changing our lives.

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CONTRACTOR ADVANTAGE

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NOVEMBER/DECEMBER 2011

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Smart Money

The Three C’s Of Security Bonding Bonding is a key part of the Canadian construction industry and contractors should understand the criteria for obtaining it.

BY PAUL RHODES

The criteria for obtaining surety bonding are often summarized as the business owner’s (or the principal’s) capacity, capital and character. Satisfying the bonding company on each of these points is required to obtain and maintain a bonding facility. This article will review the meaning of each of these terms, and describe how they can be measured and assessed.

Capacity: Capacity refers to the contractor’s ability to perform the current or planned level of work. Therefore the company must have in place sufficient systems and infrastructure, including management with the required knowledge and experience.

The information collected will allow the bonding company to assess the current level of work. The contractor’s current workload is summarized in the “Work on Hand” schedule, which provides the following information on a contract-by-contract basis for both bonded and non-bonded projects at a point in time: • the adjusted contract price • the amount billed to date, including holdback costs incurred to date and the estimated cost to complete • estimated gross profit at the time of bid and the current estimate of gross profit; and, an anticipated completion date In addition to the “Work on Hand” reports, the underwriter may also consider the company’s internal controls over job costing.

The contractor must ensure that the company’s information system is able to

generate this information at any point in time, in order to support a bonding application and ongoing reporting once the bonding facility is in place. The information requested will also include the completion of a questionnaire and may include a business plan, especially if the business owner intends to increase the scale of the business.

Other information obtained will include: • annual financial statements, usually for the past three years, together with aged listings of receivables and payables • the most recent internal financial statement with aged listings of receivables and payables

Paul Rhodes is a partner at Soberman LLP. His professional experience includes construction, manufacturing and real estate and internal audit engagements. Paul is a member of the Toronto Construction Association.

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CONTRACTOR ADVANTAGE

• a “Work on Hand” schedule for the most recent completed year end and for the internal financial statement a copy of the bank facility letter describing the terms and conditions personal financial statements for all shareholders; and other relevant information, such as: an organization chart and resumes of key employees, succession plan, a company brochure and references

Capital: Construction is a capital intensive business and the underwriter will be looking for adequate working capital available to the company to finance the current and the desired future work program. An excellent credit rating and an established relationship with a bank will also be required.

It is also beneficial for the principal to have an independent accountant who is familiar with the industry and with bonding company requirements in particular. This is because the accountant has to be aware

Smart Money

of the capital requirements of the bonding company that must be met. For example, adequate profit should be left in the company to provide this working capital, and therefore, the independent accountant should not be recommending withdrawal of profit or surplus cash for tax or other reasons.

The underwriter will need to understand the company’s growth plans, including the size, type and location of jobs and the aggregate levels of work as well as details of how this growth will be funded.

Character: The bonding application process involves the broker submitting an application tailored to the specific requirements of the bonding company underwriter. The underwriter will consider the contractor’s entire business and will have to be satisfied that the business is well-managed and profitable and that the

contractor keeps promises, deals fairly and performs obligations in a timely manner.

As an example, the principal’s ability to estimate the profit margin on projects at the contract award stage and as a project progresses (per the Work on Hand report) enables the bonding company to assess the principal’s management experience; however, over a period of time it also enables the bonding company to develop the trust necessary in the principal’s judgment.

The application questionnaire is a key part of this test. On an ongoing basis the bonding company will be monitoring the principal to ensure that communication is open, that they deal fairly and can be trusted. Related to this, is the trust the bonding company has in the independent accountant, relating to both the quality of financial reporting and the opinion that is rendered on financial statements.

Bonding companies also request personal guarantees of the principal, which are an indication of the principal’s character, because a business owner who gives a guarantee has a vested interest in working out issues and resolving problems.

Bonding is a long term venture and a key part of the Canadian construction industry, which supports a significant volume of project work. The application process and the ongoing disclosure requirements act as a pre-qualification service for the principal and provide the project owner with some assurance over the principal’s capacity, capital and character.

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

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CONTRACTOR ADVANTAGE

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Online Marketing

Content Is Always King Focus first on building a site that continuously attracts your potential customers and the sales will follow.

BY JOSH KERBEL

You know that you do it all the time when you research a new purchase. Maybe it is a new car, TV or accounting software, but the process is usually the same. You spend a good chunk of time looking for a website or two that seems to be a fountain of relevant knowledge; a site loaded with all the information needed to make an intelligent purchase decision. It has product research and background information on development of the product. It has user reviews and interviews with product designers and creators. It is so comprehensive that it almost takes your credit card out of your wallet and punches in the numbers for you.

Is your company’s site this helpful?

Are you making it this easy for your prospects to research your products? Are you too afraid that even mentioning the competition on your site leads you on a path to losing sales. Whether you are a new home builder, architectural software provider or manufacturer of crown moulding, your prospects are almost always going to do a bit of pre-purchase research and will know who your competitors are regardless of whether or not you tell them. Your company can take advantage of this by using your site to position your product offering in the most favourable light relative to its competition.

This is your opportunity to dictate the message that your prospects receive at a time when they are most attentive.

Now that you have got over the fear of

mentioning your competition, how do you build an information resource that generates sales leads and builds a solid reputation for your firm?

This is not just about gathering a lot of links together on your site. You need to commit resources to curating the information for the site and then how you are going to promote this new initiative, if you are going to be successful.

across sites out there that cover a broad swath of semi-relevant topic areas but do not take the deeper dive that your site is going to offer. The only way to attract readers away from these sites is to offer an experience that is laser focused on one specific topic Context counts: Following along the niches theme, the information you assemble must create a specific context for your reader. You

This is not just about gathering a lot of links together on you site. You need to commit resources to curating the information for the site.

The six steps to building a killer online resource for your prospects are: Think community: Your goal is building a community around your Website. You must know your audience and understand what they are interested in.

Consistency: The key to the success of any marketing effort is not in the details, it is in the execution. If you want to build a resource, you need to add to it on a regular basis. You cannot just stop once you have started.

The riches are in the niches: Chances are that your customers have already come

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.

must talk to your customer in a frame of reference your prospect can relate to and show your prospect how your product offering is important in the larger context. Your business cannot be all things to all people. Build your site by focusing on one segment of your overall market and expanding from there.

Become the industry resource: Do you want to keep drawing visitors? Then establish your site as “the place” where industry professionals head when they are looking for information. Make sure that you are known by other industry players as the central hub of information. If it is good enough for professionals, then it is good enough for the general public.

Commerce follows content: Focus first on designing a usable reader experience and then worry about monetization. People will not give you their money if they are not willing to give you their time and attention first.

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Economics 101

Accountability Increases Ability Effectively motivating employees to be more accountable improves both results and attitudes.

BY DIANE CIOTTA

Are you working hard or hardly working?

This question often gets a chuckle. Unfortunately, it is less humorous today, since it has become increasingly more difficult to find hard-working help. Many employers are challenged daily by the frustration of lackadaisical attitudes of their personnel, which is seemingly contagious and complicated by the expense of constant turnover.

One corporation in particular was crippled with what could be called a ‘stress-leave epidemic.’ It began when one sales executive complained to their human resources department that they were under too much pressure to reach their sales goals and consequently their doctor recommended they take some time off for health reasons.

The company policy granted six weeks, which coincidentally (and conveniently) started the week before U.S. Thanksgiving and ended just after the New Year.

This person’s absence increased the responsibilities of the other team members to service that employee’s current customers, which in turn resulted in a domino effect of more so-called necessary stress-leave cases.

As if the impact of this cancerous situation was not bad enough, every position was required to be held and in each case, entire commissions were paid to the original sales person.

To add insult to injury, the first offender of this crisis, invited all of their co-workers to a holiday party that admittedly was planned as a result of not working, as it provided adequate time to prepare for such an affair.

The company’s policy could be considered problematic, but in legitimate

situations and when not abused, the benefit opportunity is quite generous. It is the misuse of the plan that is extremely disturbing and the lack of conscience on the part of the abusers that is inexcusable.

Can accountability really be taught? Granted, a small child can certainly learn to take responsibility for their own actions through positive example and consistent discipline.

On the other hand, a person of working age needs encouragement as opposed to training.

The most puzzling factor in this scenario is that considering the current state of the economy and the unemployment rate at an all-time high, it would seem that people should be grateful to be employed and therefore perform above and beyond the call of duty to maximize their earnings and secure their position.

Instead, the opposite is often true. Many choose to ‘hardly work’ and some even find ways to ‘work the system’ and essentially not work at all.

Can accountability really be taught?

Granted, a small child can certainly learn to take responsibility for their own actions through positive example and consistent

Diane Ciotta, the founder of The Keynote Effect, is a professional speaker with more than 20 years of sales training experience and the co-author of the book, “Pushing to the Front,” with Brian Tracy. She can be reached via e-mail at di@thekeynoteeffect.com or by telephone at 732 672-7942.

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discipline. On the other hand, a person of working age needs encouragement as opposed to training.

Effectively motivating employees to be more accountable stimulates an optimistic

CONTRACTOR ADVANTAGE

focus on both results and attitude. There are several ways to establish a comfortable, noncomplacent environment, including: 1. F ocus on coaching vs. managing. Too often management operates by means of intimidation rather than motivation. Just as customers are more inclined to buy from people they like, employees will typically work harder for a boss they respect more than fear. Coaching is the art of showing, not just telling. In addition to building better employer-employee relationships, learned skills encourage a more committed focus than just dictated tasks.

2. S et challenging, yet attainable expectations. Being stretched promotes growth, but being overwhelmed causes anxiety.

Finding a balance between requiring responsibilities that are progressive without being incredulous will enhance accountability and confidence.

Economics 101

3. Provide incentives for productive activity in addition to end results. Rewards given for reaching a goal or completing a duty are great, but there are benefits to recognizing effort as well as accomplishment.

To acknowledge a positive action through incentives is a subliminal way of encouraging productive behaviour. Activity becomes habit and affirmative results increases conviction.

4. Dedicate time in department meetings to recognize excellence. Team meetings typically cover “housekeeping items” that could be easily communicated through email. Instead, using this forum as an environment to edify activity, rather than to cover mundane information, offers a terrific opportunity to recognize accomplishment in areas of attitude and activity.

The impact is two-fold. To hear praise is

It is the misuse of the plan that is extremely disturbing and the lack of conscience on the part of the abusers that is inexcusable. terrific, but to be praised in front of associates is awesome, while it subconsciously raises the expectation bar.

and the employer fills their position with someone much more qualified for the requirements of the position.

5. Commit to replacing complacent behaviour. Neither party is doing the other a favour by hanging on to something that is not a good fit. In many cases, a decision to terminate an inadequate performer results in a better outcome for both people. The terminated employee finds something more appropriate for their professional needs

There is no advantage in the association between an unfulfilled employee and a discontent employer. In an effort to gain a mutually beneficial working relationship, commit to being accountable, then encourage and expect accountability and take the necessary action when either is missing from the equation. The result will offer a return on investment for both parties.

In the next issue of

Contractor Advantage • Lumber Trends 2012 • Millwork • Gypsum Advances • New Insulation Trends Innovations • Ceilings • Building Green Business CONTRACTOR ADVANTAGE

NOVEMBER/DECEMBER 2011

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Work Together, Work Safe Two guides outline best practices for collaboration in the construction industry, and first aid and safety on the job site.

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COLLABORATIVE WORKING IN CONSTRUCTION

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An effective collaboration strategy based on the implementation of information systems and careful consideration of organizational issues is the key to successfully delivering construction projects.

That is the crux of Collaborative Working in Construction from Spon Press. The book provides clear explanations on how to successfully devise and implement a collaboration strategy in today’s competitive world of rapidly developing communication technologies.

The book introduces collaborative working as a holistic concept in construction; a new framework on planning and implementing effective collaboration; and, change management approaches for introducing collaborative working systems and implementing new technologies in construction projects.

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Chapters look at key concepts, the impact of mobile and wireless technologies, multi-disciplinary collaborative design and construction, case studies and techniques for building a change management framework.

Editor Dino Bouchlaghem, professor of architectural engineering at Loughborough University in the U.K. and director of the Industrial Doctorate Centre for Innovative and Collaborative Construction Engineering, is supported by leading academics and industry practitioners and presents an up-to-date and relevant investigation of this important subject.

JOBSITE FIRST AID: A FIELD GUIDE FOR THE CONSTRUCTION INDUSTRY Delmar (Cengage Learning)

In the first instalment in the new Contractor’s Edge series, Delmar has introduced Jobsite First Aid: A Field Guide for the Construction Industry, which provides information to better prepare contractors, construction workers and other jobsite personnel for possible emergency situations.

According to Greg Clayton, vice president of technology professional business unit at Delmar, the construction industry accounted for more fatal work injuries in 2010 than any other industry, demonstrating the importance and need for workers to be knowledgeable in first aid best practices.

The time between when an accident happens and when emergency responders arrive is critical.

The book provides a clear, systematic approach to safety training for

everything from minor burns to life-threatening events. It details specific methods to follow during an accident in order to go above and beyond basic first aid treatment. The reference guide presents detailed preparedness information that companies can use to help prevent and divert jobsite accidents, as well as the steps to recover control of the jobsite after an accident and return to business.

Author Dan Johnson is an experienced Environmental, Health and Safety (EHS) professional and designer of EHS programs for a wide range of industries. He provides first aid concepts in a real-world context through specific jobsite and contractor references. To improve comprehension, procedures are accompanied by detailed illustrations, images and “how-to” descriptions of various tasks.

Jobsite First Aid is designed to be a quick reference that can fit into any toolbox, glove box or desk drawer for easy access, and is made from durable laminated materials to endure the hazards of a construction site.

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

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Feature

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CONTRACTOR ADVANTAGE

Feature

tax

Get your

toolbox ready The art of good communication can have as great an impact on your financial picture as it does on the job site.

BY STEFAN DUBOWSKI

W

ith year end approaching once more, it is once again time to get serious about the financial side of the business. Accounting experts have a handful of suggestions designed to help you manage the tax situation.

Paul Rhodes, partner, assurance and advisory with Soberman LLP, a chartered accountancy in Toronto, says communication is just as important around financials as it is with customer projects.

He recommends hiring the right sort of number cruncher for your company (there are different kinds of financial professionals) to ensure that your tax profile is as lean and mean as it can be. Scrutinize your business’s structure as well, and familiarize yourself with new tax regulations.

Before long you will find that you have created a genuine tax toolbox ready for you to carry all the way to the bank.

Start with a new appreciation for communication, which can have as great an impact on your financial picture as it does on the job site.

Connecting with your tax team: Communication is an important aspect of most construction jobs, but it is also important for finances.

“The business owner needs to have continuous communication

with accountants and other advisors to make sure the opportunities are identified for minimizing tax, either in the company or between the company and its shareholders,” Rhodes says.

“I like to have meetings with the client throughout the year,” to get caught up on the business and the business owner’s personal financial needs, Rhodes says. After all, things do change.

“Maybe a mortgage has been paid off, or personal income requirements have decreased. Maybe the kids are getting older and getting ready to go to university. We want to coordinate all of these needs with the tax planning for the business owner to manage the tax liability and the financial planning.”

Hire the right number crunchers: Do you know the difference between an accountant and a bookkeeper? Do you think all accountants have the same credentials? Understanding the various skills that different number crunchers bring to the table is an important step in managing your tax picture.

Bookkeepers can be essential team members who keep track of the business’s day-to-day finances. Accountants are trained to analyze the company’s financials to find potential tax savings.

There are also different kinds of accountants: Chartered Accountants (CA’s), Certified Management Accountants (CMA’s)

CONTRACTOR ADVANTAGE

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Feature and Certified General Accountants (CGA’s). Each designation denotes a certain level of education. CA’s usually have the most training and, by some accounts, charge the highest rates as well.

The main difference comes to light if the contractor needs an audited or reviewed financial statement, which lenders would need to see if they were to loan money to a privately-held company. CA’s are certified to provide audited statements. CGA’s are allowed to do so in some provinces, and CMA’s are not at all.

Rhodes discloses that he holds an Associate Chartered Accountant (ACA) designation from the Institute of Chartered Accountants in England and Wales, and the CA designation from the Ontario Institute of Chartered Accountants.

Build the best business structure: Business structure is important. In the early stages of the company, the owner may be withdrawing all of the profit to cover living expenses. If the company’s revenue grows and the owner’s need for personal income decreases, “it is often beneficial to put a holding

company above the operating company,” he says.

The business owner would then own the holding company that, in turn, owns the shares in the operating company. As the operating company generates surplus profit, that surplus can be taxed at a relatively low rate, thanks to low corporate tax rates and small business deductions in many provinces.

The after-tax profit could then be moved to the holding company via a dividend payment, enabling the holding company to invest it.

The icing on this particular cake: the holding company does not pay tax on the dividend it receives from the operating company. “It is a tax-free dividend,” Rhodes says.

“It is a structure that we often set up for clients. If you have profit that is taxed at a low rate, you are left with more dollars to invest, which is a nice tax-deferred benefit. Ultimately when the funds are withdrawn from the holding company, that dividend from the holding company to the shareholder is taxable at the higher personal rates. In the meantime, there is a deferral of this additional tax, which is a nice tax-deferred benefit.”

HST rollback makes contractor accounting a challenge in B.C. Contractors in B.C. are in for another round of tax challenges now that the province has decided to disengage the harmonized sales tax (HST) implemented just over a year ago, says one financial advisor.

Following a referendum in August, in which B.C.’s citizens voted to go back to a separate provincial sales tax (PST) and federal goods and services tax (GST), companies will have to re-jig their books and accounting procedures to prepare for the new regime, says Woody Hayes, partner with accounting firm Hayes Stewart Little & Co. in Duncan, B.C., and past president of the Institute of Chartered Accountants of B.C. “Now we have to put it back to the way it was. That is going to be just as much

work as it was going the other way.”

B.C. businesses faced a raft of transition mechanisms when the province decided to implement the HST. Rules regarding when which tax system should be applied, when which portion of the tax should be collected, and other elements were all parts of the picture.

With the PST/GST system slated to be reinstated by February 2013, contractors need to keep a few things in mind: If you think your business will save money operating under the HST system, it would make sense to work to convince prospective customers to buy your services sooner than later. On the other hand, if you think clients would be more open to spending money after the HST is gone, the smart contractor may

want to develop a longer-term marketing program designed to get customers to sign up for services as soon as the PST is reinstated. “It is a question of developing a marketing scheme that supports the product or service under the HST or the PST, to make sure it happens before or after the changeover date,” Hayes says.

With equipment purchases, you might want to spend sooner than later. Contractors pay tax on the equipment they buy. Under the HST system, contractors would be able to apply for a refund on the full amount of the tax paid. If you wait for the changeover, however, you only get back the GST portion. “If you are buying equipment, you are better off under the HST regimen,” Hayes says.

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Feature Know who knows what you need to know: Tax rules have a terrible habit of changing (see “HST rollback...” for a good example of this), unbeknownst to many a business owner, thanks to poor communication.

“It is not always well publicized by the government,” Rhodes says.

He advises getting your accountant to provide updates; some accounting firms will provide a review to ensure the contractor is handling the taxes properly.

It is also a good idea to know the lay of the tax land where you are working.

“It is an area where it is very easy to drop the ball and make mistakes,” Rhodes says.

“With respect to sales tax, there are different rules, and exceptions to the rules, in all the provinces. It is easy to not be aware of these details,” Rhodes says. “Ideally the business owner needs to have resources available to provide a good understanding of the different tax rules, especially when going into a different province. That resource is likely to include the business’s independent accounting firm.”

Contractors who understand their tax obligations and structure their businesses properly are in a good position to save money while ensuring that the Canada Revenue Agency is satisfied. With the right financial advisor, and good communication, you may find that your tax toolbox is ready to go for the end of the year.

How to organize your financial records No one enjoys being audited by the Canada Revenue Agency, but people who have organized their financial records likely worry a bit less about the process. By ensuring that your contracts, receipts and income statements are put in the proper place, you should have an easier time answering the tax man’s questions, and you may find that your accountant is better able to assess your financial situation and come up with tax-saving options.

As a part of the Small Business Kit for Dummies Cheat Sheet, attorney and author Richard Harroch recommends this system for the filing cabinet: One drawer should be dedicated to accounting and bookkeeping records: sales and expense information, inventory, ledgers, income statements and other financial statements.

Dedicate a separate drawer for standard forms, such as order forms and sales agreements.

Give a drawer over to bank records.

Use a drawer for signed contracts for real estate, equipment leases, and purchasing agreements.

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Feature

UNLOCKING PROFIT FROM

INTERIOR DOOR S

Design trends leaning toward originality and personal style are opening new opportunities for contractors to up-sell interior doors.

BY NESTOR E. ARELLANO

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Feature

T

he economic appeal of traditional low-cost wood slabs means the door will not close on these products any time soon, but experts say design trends are opening new opportunities for contractors.

In recent years the style, types and construction of interior doors has expanded dramatically. The interior door, which for decades has remained a commodity, is making a strong comeback as an important architectural feature to enhance a home’s overall design or to accentuate the transition between rooms.

To take advantage of this trend, contractors need to be familiar with the options available in the market and the many ways to help their clients achieve more style for less money.

Coming out of their shell Design elements impacting the style of a room are no longer restricted to wall colours, accents and furniture. In recent years many builders and designers have turned their eyes once more to interior doors. “For decades the interior door had been relegated to the background and regarded merely as a privacy element,” says Andrea Colman, designer and principal of Fine Finishes, an interior design company in Toronto.

This is unfortunate, she says, because doors can be one of the easiest, fastest and cheapest ways to alter the character and elevate the style of a room.

“By simply picking the right type of wood grain, panel design and hardware, people can immediately transform the mood and tone of a room,” Colman says. “When used properly, doors can be more than an entrance way to a room. They can be a portal to a different world.”

Andrew Jessome, retail sales manager for Moulding and Millworks, a manufacturer and supplier of interior trimmings and doors, says there are primarily four types of interior doors: swinging, pocket, French and folding.

Interior doors are not exposed to the elements nor used to protect against break-ins.

They are typically not as sturdy as exterior ones; however, they share many of the materials found in their exterior counterparts, according to Jessome.

“The standard material is MDF (medium density fibreboard), but these days interior doors can be made of a variety of species of solid wood as well as fibreglass, glass or recycled wood products,” he says.

For example, Moulding and Millwork’s selection of Woodport labelled interior doors feature an engineered wood solid core and solid hardwood on key stress points.

Woodport offers a selection of panels in various styles, overlaid with veneer in a variety of finishes including oak, birch, pine, walnut and maple. Many low-cost building projects resort to hollow core doors, says Brad West, director of sales for Jeld-Wen Doors.

Interwoven corrugated hollow cells made of recycled scrap wood particles, or structural paper, support the outer surface of hollow core doors.

“These make hollow core doors lightweight and very inexpensive, but not very good for acting as a sound barriers in high-traffic areas,” West says.

A more durable alternative would be solid core doors. “These doors are filled with pressed particle wood, which makes the door denser and resistant to dents and dings,” he says.

PHOTO: JELD-WEN

Doorway to profit New home constructions and renovation projects are rife with opportunities for contractors to present homeowners with interior door options other than the standard white flush hollow core models, according to West. “The customer, of course, has the last say, but knowledgeable contractors can assist them in picking the right door that suites their tastes and budget.”

For instance, contractors can explain that solid core and solid wood doors have better sound-proofing capabilities than hollow core doors. “Occupants of homes with closely spaced rooms might appreciate the better privacy afforded by these type of doors.”

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Feature

Similarly, a pantry or closet need not be covered by a plain white door. There are sliding door options that have glass panels or louvered panels for closets as well as frosted glass doors with etched designs for pantries.

Safety is another issue that might be of concern to homeowners, West says. Solid core and solid wood doors have better fire resistance than hallow core doors. “Generally the thicker and denser the door is, the longer it can hold off fire.”

While fire doors are typically able to resist flames for a maximum of three hours, many hallow core doors have fire ratings of 20 minutes. Most solid core doors have fire ratings of 45 to 60 minutes, while some even have fire rating of 90 minutes.

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Thirty years ago, flush mahogany doors were the in thing, according to West. In the 1990s, moulded doors were everywhere. “Today, doors have become much like furniture pieces. Anything goes. People install doors to match the décor of a room.”

While many contractors prefer doors systems or pre-assembled units or reversible doors that are easy to install, increasingly homeowners are demanding interior doors that show some individuality, says Shayne Mugford, marketing assistant for Can-Save, a distributor and manufacturer of building materials, kitchen and bath products and doors.

“People are looking for quality and performance, but they also want style and many are willing to pay the extra money for it,” he says.

For example, a plain hardboard door might retail for $28 but for just about $10 more a homeowner can purchase a pre-primed door with panels. “There has been an increase in orders for wood grain doors and solid doors that sell for around $240 to upwards of $290,” Mugford says.

“For homeowners on a budget but seeking that show-stopping look, the Royal Series from Jeld-Wen is a favourite choice,” he says.

The Royal Series comes in primed clear pine, knotty pine and oak with bevelled or non-bevelled glass inserts that are either clear or smoked for privacy.

French doors are also a popular choice for entrances into dining areas, patios and libraries, while bi-fold doors remain a favourite for pantries, closets and tight spaces.

In the last five years Web-based technology has been making its way to home interiors.

Many homes today have HVAC, lighting and security systems

PHOTOS: JELD-WEN

Selling style

Feature

managed by computer systems that can be programmed and monitored by homeowners remotely.

Now a few homeowners are able to use their work computers or smartphones to control automated locks installed on their exterior doors. Some of these systems can be adopted for interior door installations, but contractors may need to consult with or seek the assistance of firms specializing in home security equipment if they want to tackle such projects.

The interest in the environment is another trend that offers an opportunity for contractors.

Recently demand for doors constructed with recycled materials has been increasing, according to Mugford.

He recommends the Krosscore line of interior doors. “They have a structure made of renewable wood and a core made of recycled wood and a hardwood outer shell available in cherry, maple, mahogany, red oak and walnut grain.” Jeld-Wen’s Juniper doors are made from a wood being cleared from many forests, because they are considered an invasive species.

Even though modern processes enable manufacturers to emulate the look and feel of real wood, many discerning homeowners still ask contractors to install solid wood interior doors, according to Mike Snider, CEO of Madawaska Doors Inc., a Schomberg, Ont., company specialized in custom-designed doors. “Nothing beats the looks and feel of real solid wood,” says Snider.

“Cheap moulded and veneer doors may be beautiful, but over time they will show their faults. The finish and structural integrity of solid doors last for decades.”

He adds that his company’s products are often installed in heritage homes. “If you have a turn-of-the-century home, you normally would not want to mar the look with an MDF door.”

Madawaska’s doors are “non-toxic” because they are not treated with any chemicals and therefore do not release toxic gasses, he says.

“Only a small percentage of our customers ask us to stain or varnish their doors, most people have it done in their homes.”

Snider says he normally asks contractors to bring photos of the interior and exterior of their customer’s homes so that Madawaska designers can create a design specially suited for the home. “We give the contractors two or three custom drawn designs that their customers can choose from.”

A typical Madawaska door sells for around $300 to $500, but the company also sells units that cost anywhere from $10,000 to $15,000.

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Feature

More style for less cash There are many ways contractors can help clients achieve more style for less cash.

For homeowners not prepared to spend a premium on solid wood doors, there are numerous models of doors with real wood veneers or moulded grains that emulate various species of wood.

Clear pine from Quebec is also an economical choice for solid wood interior doors. Clear pine can be stained to look like more expensive species such as cherry, or maple or hemlock. The only wood it cannot imitate is oak because of its unique grain. To save time and money, contractors can also offer pre-primed interior doors or system packages that come with all the hardware needed to install the door.

When it comes to doors with glass inserts, flat glass is much cheaper than bevelled glass. Clear glass costs slightly less than frosted glass.

Doors are reaching new heights. The typical 6’ 8” door is quickly being replaced by the models that are 8’ tall to match today’s higher ceilings. Contractors can help clients with lower ceilings to achieve the illusion of greater height by installing 7’ 6” doors.

Colman from Fine Finishes also says door trim and mouldings enhance the look of a door and can be an added source of income for contractors.

Trim and mouldings are like the frame to a painting, she says.

They compliment and enhance the look of the door and can sometimes make an entranceway appear taller or wider. “Trim and moulding can also be used to make the doorway echo or contrast the overall style of the room,” she says.

Contractors should also pay close attention to the hinges, knobs and handles they install. “Make sure the hardware matches the door and the style of the room,” Colman says.

For example, gold tone knobs were popular a couple of decades ago, but the muted colour schemes in today’s interiors are better complemented by duller chrome finishes. Antique finished brass handles and hinges, on the other hand, work best with rustic and traditional interiors, she says.

“Recently, I was in a home with interior doors of the ’70s flat brown wood type with brass knobs. A more current door style and hardware could have brought that home into the 21st century.”

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1148 PaintedWhite

Feature

Looking

UP

1149 WoodHaven

Homes today are being built with a variety of ceiling styles and materials.

BY DAVID CHILTON

C

eilings are no longer just a cover over our heads. They have moved from providing the simple function of protecting us from the elements to a stylish addition to every dwelling we enter.

By far the most common material used for ceilings in domestic settings is drywall, principally for its modest cost and forgiving nature.

These gypsum panels are usually placed between sheets of paper although they can be made from fibreglass to prevent mold growth, since mold is prevalent where the drywall has been exposed to water. In areas of high humidity, greenboard or cement board are recommended.

Despite its susceptibility to moisture, drywall is a passive fire protection material since gypsum contains hydrates that, when exposed to fire, are vapourized and retard heat transfer.

Further, the more layers of Type X drywall that are added to an installation generally the greater fire resistance, according to the Canadian Building Code and Underwriters Laboratories of Canada.

Type X drywall is made by adding glass fibres to the gypsum, and is typically required for drywall to have a fire resistance rating.

Drywall ceilings, which have been around since the 1950’s, took over from plaster and wood, and although the former material has disappeared the latter is still used; it remains an attractive choice for its warm appearance, showing up in dining areas and recreation rooms.

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The most popular types of wood used are beaded ceiling board and tongue-and-groove planking. Although they appear slightly different, both are installed the same way. The wooden boards can be nailed directly to the bottom of ceiling joists using a galvanized finish nail, and butt joints or seams are common.

As a result, wood ceilings can be treated with a much lighter finish than would be used on a floor. One or two coats of light paint should be enough or a light oil finish or a coat of polyurethane or varnish.

However, wood ceilings are never perfect. Mike Bielak, Canadian Sales Manager for CertainTeed Ceilings in Oakville, Ont.,

Feature

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480 Country Classic™ Plank

cautions that, unless a wood ceiling product has been especially designed to absorb sound, its acoustic quality will be poor.

To address that concern, CertainTeed has a division called The Acoustics. “It is a custom shop, in a sense,” Bielak says. “They actually make wood ceilings with an acoustical quality. They will perforate those wood panels and they will add acoustical materials in behind them and be able to create a very nice esthetic ceiling that also provides acoustics.”

Like wood, tin ceilings were once widespread, especially in North America. Durable, lightweight and fireproof, tin ceilings were usually painted white to give the impression that they were hand carved or moulded plaster. By the 1930’s tin ceilings became less and less popular, although these days the material is again being sought as a ceiling option and several companies offer the traditional rolled sheets of tin as well as tin panels made to fit into a drop ceiling grid. Typically, these panels are either 24”x24” or 24”x48” for ease of handling and one-person installation. There is also a

patented interlocking tin panel that screws directly into existing drywall, popcorn and plaster ceilings without requiring extensive plywood backing. In almost all cases, irre-

spective of panel size, today’s manufacturers use recycled blackplate steel 1/100” thick or sometimes a real tin plate coating stuck to the steel. For those who want the look of tin

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1240 TinTile Tin Look (Field Painted)

Feature but without its price there are imitation panels pressed from plastic or aluminum.

Plastic “tin” ceiling tiles are usually made of PVC and are either white or have a painted finish. Their tongue and groove design makes installation easy, requiring only a ceiling adhesive to make them stick. They can be installed over an existing textured ceiling, again using only a ceiling adhesive.

PVC, of course, will not rust and is washable.

Last, but not least, PVC tiles will prevent the echo that occurs with authentic tin ceilings.

The various types of material used in the construction of ceilings are matched by the types of ceilings that exist. Perhaps the style counterpart to the ubiquitous drywall ceiling is the dropped ceiling, interchangeably called a suspended or false ceiling and an absolute staple of modern building, especially in commercial settings and residential basements. The gap between the actual structural ceiling and the dropped ceiling that is attached to is called the plenum space as it

is sometimes used for HVAC air return and very often concealing wiring, pipes and ductwork. The beauty of a suspended ceiling is

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its ease of use. Panels made of wood, metal, plastic or mineral fibres and in virtually any colour can be lifted in and out of the suspended grid, offering instant access to the plenum and greatly simplifying repairs and alterations compared with the task of ripping out then replacing drywall. This considerable advantage is not perfect; however, a dropped ceiling means reduced headroom.

Clearance, usually a minimum of 4” to 8”, is often required between the lowest obstruction and the ceiling grid level. Depending on the panel material used dropped ceilings will show their age quite readily.

Whether drywall or suspended, both ceiling types are flat. “Grid is grid,” says Hamilton, Ont.-based John Hudson, retail sales manager for ceilings at Armstrong World Industries. “Everybody’s grid looks the same.

Everybody’s grid works the same.”

What about those ceilings that are not flat? What about the vaulted ceiling, which are typically new construction, rather than remodelled from flat ceilings. Loved and hated in equal measure by homeowners and contractors, the vaulted ceiling (also called the cathedral ceiling because of its distant origins in Europe) gives a soaring, airy feel to any room, but is a major waste of energy in cold climates since heat gathers in the cavity the vault creates. Beyond that, since vaulted ceiling panels are attached directly to roof trusses they have to be wide enough for the proper installation of insulation and

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ventilation behind the ceiling. If the trusses are too thin then correct insulation becomes impossible, and if any gaps are filled in with insulation ventilation will suffer. Vaulted ceilings, furthermore, are difficult to clean and recessed lights and other fixtures are hard to change or replace.

If a vaulted ceiling seems too complicated then a tray ceiling may be another option, since different ceilings have different costs, although inevitably prices continue to rise.

Hudson says more expensive materials have caused the increases. “We are using better mixes. We are getting into things like PVC. We use virgin PVC in our products.

Virgin PVC is very expensive but you have to use that to keep the colour, otherwise it is going to yellow after five or six years. Are the costs coming up? They are coming up, but when you sell your home you are getting it back in the value of your home.”

The tray ceiling is shaped just like a meal tray. It looks like a regular flat ceiling but has a centre flat portion that is pushed in about 12”. Alternatively, the tray ceiling can be inversed (known as a recessed tray), and the flat centre part of the ceiling protrudes into the room. Tray ceilings give the feeling of space, because they make a low ceiling look higher, but come without the emptiness and energy loss of the vaulted ceiling since they allow maximum insulation.

The addition of crown moulding to them creates further architectural interest. With

the standard tray model, low ceilings can be recessed into crawl spaces to make small bedrooms feel larger, which uses otherwise unusable attic space. Contractors should be aware that such remodelling requires sound structural knowledge.

Coffered ceilings are a further alternative to the flat ceiling, being divided into geometric shapes, usually rectangular, by beams to create the impression of depth and luxury.

At one time coffered ceilings were the preserve of libraries, formal dining rooms and the like.

Now the design has made its way into kitchens, master bedrooms and, in fact, almost anywhere where the ceiling height is more than 8’. Again a crown moulding attached to the coffered ceiling will offer architectural interest.

Irrespective of the style and material of the ceiling safety remains central.

Bielak says 15 to 20 years ago there was more of a demand for fire rated ceiling assemblies, but that construction methods have since changed and fireproofing is better handled. “The demand for fire rated materials, the demand for fire rated ceiling assemblies, has fallen. Where it used to occupy maybe 15% of the market it is now questionably 5% or less.” Overall, then, when it comes to quality, safety and variety it can be said that the outlook for ceilings is looking up.

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Feature

MASTERthe

MOULDING The right moulding choices will deliver the perfect finishing touches for every job.

BY JOHN G. SMITH

T

here was a time when baseboards served a more practical role. The decorative mouldings that now conceal gaps at the edge of floating floors were originally introduced to protect plaster walls from wet mops.

The shift to a more decorative purpose has hardly limited their size.

“You are always going to see some of the smaller, thinner mouldings that are generally used in basic construction; that serve the function of hiding a joint between the floor and the wall,” says Anna Kitchen, marketing coordinator for Alexandria Moulding. When it comes to renovations and premium construction projects, however, today’s installers and their clients are reaching for thicker and wider mouldings than ever before.

Part of the interest in taller baseboards can be traced to the ceiling heights in modern homes, suggests Peter Branidis, branch manager of Moulding and Millwork’s Ontario Division. A similar trend can even be seen where the wall meets the ceiling. A 4” crown moulding may work in a room with an 8’ ceiling height, but a 10’ ceiling will demand a 7” moulding. “When you go to 10’, you have to go with the bigger crown to give it the presence that it requires,” he says.

Some of the most impressive examples of moulding and millwork are emerging by combining a number of pieces into a single, wider 42 |

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look. “We are starting to see the wider use of more dressed, regular four-sided board,” Branidis adds. A colonial appearance, for example, can be created by installing a door stop at the bottom of a baseboard rather than using a traditional piece of quarter round. “The beauty of trim is you can make it look the way you want with the right skills.”

As layered as the individual jobs may be, the latest looks are more streamlined than ever, replacing many of the curves and intricate profiles of the past.

Branidis points directly to the condo market when describing the source of this trend. “It is just that overall contemporary feel. The condo market is all that way,” he explains, pointing out the streamlined looks which mirror the appearance of cabinets and counters in modern kitchens.

As for the materials of choice, they tend to vary from one region to the next. Maple is a popular product among designers in Eastern Canada, while oak is often seen as the more popular choice in Western Canada, Kitchen says. In cottage country, few options can match the informal and rustic appeal of pine.

The most popular material of all, however, is MDF. Upgraded production processes are creating versions of this moulding that are lighter and easier to handle than ever before,

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more affordable and pre-primed. This layer of primer certainly supports a consistent finish.

The finish on a store-bought moulding can even go beyond that. Moulding and Millwork’s FinTek product line is fully finished the moment it arrives on a job site and comes complete with a touch-up kit that includes the matching DAP to fill joints and nail holes.

As important as any finish will be, accurate measurements will be the first step in delivering a professional look in any moulding project. Chair rails, for example, should always be placed 32” from the floor.

Of course, to ensure a proper fit from one piece to the next, moulding materials should also be allowed to acclimatize indoors before

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being installed. This will prevent the buckling or unwanted gaps that would otherwise come with any expansion or shrinking.

A tight fit will be vital to offering an uninterrupted look as well. Every 8’ span of moulding should also be used to cover no more than 7-7/8”, leaving the extra 1/8” to ensure a tightly compressed connection between one piece and the next. Simply attach one end of the piece to the wall, place the other end in position, and push the centre of the span in place.

Still, few measurements can seem more challenging than a piece of crown moulding, particularly when it comes in the 52/38 style with a pre-cut 52° bevel that will sit

CONTRACTOR ADVANTAGE

against the ceiling and a 38° angle to sit against the wall.

The fence on a mitre saw can be one of the most practical forms of support for these jobs. When it comes time to cut the corners, place the moulding on a mitre saw with the top edge closest to you. Then lift the back edge of the moulding where one bevel sits against the saw’s fence and the other is against the table, which will represent the ceiling. Swing the mitre setting 45° to the right when cutting the left side of an inside corner, and 45° to the left when cutting the left side of an outside corner.

The cuts are a little trickier if the moulding needs to be placed flat on the table, and this is likely to happen more often as the pieces become wider than the saw’s back fence. When cutting the left side of an inside corner in this case, place the top edge of the moulding against the fence, swing the mitre (table) setting 31.6°, and tilt the blade 33.9°.

If cutting the right side of an inside corner, place the bottom edge of moulding against the fence, set the mitre 31.6° to the left, and tilt the blade 33.9°.

Alexandria Moulding thinks it has an easier solution, offering crown moulding with a 45° edge and a profile which is copied on both sides of every piece. “When you are cutting it, it makes your life so much easier, because as soon as you make that bevel cut, when you flip the moulding over it matches perfectly onto your first piece,” Kitchen says. When installing a coffered ceiling, the upgraded design might cut installation times in half.

PHOTOS: CERTAINTEED, ALEXANDRIA

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A few other techniques will make a difference in every project.

In most cases, a moulding will be attached by nails spaced no further than 16” apart, or using a combination of adhesive and nails. A pneumatic nailer will be the tool of choice to avoid any damage that could occur when a hammer needs to swing within a few inches of the ceiling or a newly finished floor.

(Those who work with a hardwood like oak will want to pre-drill a few pilot holes to avoid split material.) When it comes to adhesives, meanwhile, any surfaces should be cleaned of dirt or drywall dust to ensure a proper bond.

Carpenters who take the time to wipe away any excess glue before it cures will also save sanding time at the end of the job.

The jobs which wrap around an entire room should also begin and end in a hidden corner since the patterns will seldom match when the last piece meets up with the leading edge of the first piece. Many related frustrations will be avoided by dry fitting the various segments in place before attaching them to the wall.

Uneven walls or variations in the moulding’s thickness may require some sanding at the back of the material, or the addition of a shim to ensure an even look. After all, any sanding at the front of the moulding will simply compound problems, leading to variations in the design’s profile. Once the mouldings are fixed into place, trim any shims and apply a bead of filler or paintable caulking along the edges which touch the ceilings and walls. Nail holes should be filled with a non-

shrinking filler to avoid blemishes in an otherwise smooth surface.

Granted, a little added inspiration could deliver the most impressive touches of all.

“A lot of people like the ideas because they may not think of them by themselves.

They want guidance,” Kitchen says, referring to the guidance that contractors can offer customers. “Homeowners like to get information on what baseboard matches what casing and crown to give the overall feel.”

Customers can often be inspired to include more projects like fireplace surrounds and display niches, Kitchen says. “In some markets, especially in Quebec, they do like the bundles we create to frame a

door, and we will give them the option of putting two casings on either side of the door and an architrave (a flatter moulding taller than the casing, with a shelf-like detail at the top). It gives the illusion of having a taller frame, or we do have some sets that have plinth blocks that go at the bottom of the door and the two rosettes that go at the two top corners.”

No matter what the project involves, however, Branidis stresses that patience is a virtue.

“You see a lot of homes where a guy just zipped through to get the job done,” he says.

“When it comes to really crafting a look in the room or a look in a home, it takes time if you really want it finished right.”

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Feature

EXPERT

PANELS 12 things every contractor needs to know about drywall

BY JOHN G. SMITH

F

ew building supplies will be more familiar to contractors than a sheet of drywall. An average home includes more than 7 tonnes of gypsum, and North America’s suppliers have been known to produce another 30 billion square feet of the material every year.

As familiar as these sheets may be, there are plenty of examples of projects which have gone awry. Work has been marred by everything from poorly applied tape to hurried sanding jobs. The wrong material choices have even been known to house colonies of mold.

Luckily, many of the challenges can be tackled with a little know-how. Consider these tips that will lead to better, smoother walls.

Think bigger The most common sheets of drywall measure 4’ by 8’, but a number of other sizes can help to limit the amount of taping, particularly when working on taller surfaces. Sheets are also available in 9’, 10’ and 12’ lengths, while 54” panels can be stacked horizontally to fill the face of a 9’ wall.

There are times when it might even make

sense to add to the depths. An extra ¼” sheet, for example, can be used to enhance sound barriers or cover rough surfaces.

Just remember to stagger any horizontal sheets to avoid single joints which stretch from the ceiling to floor. They will be harder to conceal.

Lighten the load when working on ceilings It is possible to create a ceiling with 72-lb. sheets of 5/8” drywall, but a ½” panel made especially for ceilings can shed 20 lb. from the weight.

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Feature The advantages are not limited to the reduced weight, either. These sag-resisting panels are specially designed to support textured materials which might be applied to their surfaces.

When installing a ceiling exposed to natural elements, an exterior grade of ceiling board will be the better choice as a defense against moisture-related damage. It will also offer a smoother surface than a simple sheet of plywood.

Keep your powder (and your gypsum) dry Every supply of gypsum should be allowed to acclimatize in a dry area for at least 48 hours, and at a temperature no lower than 10˚, before being installed. It also needs to be kept away from damaging sources of moisture such as concrete or standing water.

Anything that gets wet will need to be thoroughly dried, while any remaining pieces with a soft core or visible signs of water damage will need to be cut away until nothing but undamaged board remains.

The environmental factors that affect professional tapers do not end there. If humidity shifts from 50 to 90%, for example, tapers and painters can expect a four-fold increase in drying times, the Drywall Finishing Council notes.

Think in colour when trying to fight moisture and mold Water-resisting panels like green board are better able to resist the ongoing attacks of moisture in a laundry room, basement or bathroom. Blue sheets of Humitek offer even more protection against water and mold.

Of course, there are limits to the moisture that these panels can withstand. The wettest areas of all might benefit from the use of a cement board like Durock, which is available in 4x8 sheets and even 3x5 pieces to offer a quick fit around a tub surround.

This material even scores a perfect 10 in ASTM mold tests.

Stand up to the abuse Some walls have a rougher life than others.

A mudroom or the hallway in a setting like a daycare centre would benefit from an abuseresistant panel that can stand up to the hits, kicks and abrasions which would dent a tra-

ditional piece of gypsum. These enhanced offerings include a dense core and a face covered with a heavier paper, while options like Fiberock actually mix gypsum and fibers to stand up to the assault.

The added protection is not limited to the drywall, either.

Rather than using traditional metal beading, some installers opt for plastic strips that will bounce back from an impact. In addition to that, the plastic strips will also conform to the shape of corners which do not meet at a perfect right angle.

Another option is paper-faced corner bead, which can eliminate the cracking seen with steel and plastic options. Damaged sections of the paper-faced strips can be cut

away and repaired without removing and replacing an entire piece.

Round the corners with flexible sheets Skilled drywall installers have been known to transform the flattest sheet of drywall into a curved archway, usually by scoring the back of the sheet into narrow strips or wetting the paper surfaces before bending everything in place.

This is fine when it works. More often than not, the efforts lead to a crumbling piece of gypsum and a muttered curse.

There is an easier solution. Flexible panels that are just ¼” thick will curve much more easily. No scoring or wetting is required.

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Feature Fight fire with a fire barrier

Every sheet of gypsum can offer a limited fire barrier. The core includes chemically combined water which will actually transform into steam when exposed to high heat.

Once the water disappears, the material that remains will still act as an insulating barrier.

The Type X panels made with gypsum, glass fibers and vermiculite are even better able to resist fire than a regular piece of gypsum.

As important as the choice of drywall will be to a fire rating, however, it is the overall assembly which earns a nod from the Building Code. For example, a 5/8” Sheetrock Firecode Type C board earns a one-hour rating when it is attached to each side of wood or steel framing. If that is not enough, a double layer of ½” Sheetrock Firecode C will double the rating when attached to a steel frame.

Seal the sound barrier The noise in a raucous rec room will easily transfer between floors when everything is lined with basic drywall. Some added attention to an assembly’s Sound Transmission Class (STC) rating will better dampen the noise.

The drywall will simply need some added support when forming an effective sound barrier. For example, every hole or crack that could be a conduit for sound should be filled with an acoustical sealant.

Drop the dust The dust from drywall compounds can be a nuisance on any job site, and this is particularly true when working on a retrofit in the middle of an occupied area. The fine white cloud seems to creep into every nook and cranny around a room.

In contrast, a Dust Control Drywall Compound will combine into clumps that drop straight to the floor.

Speak a common language Professional boarders and tapers can create a perfectly smooth surface on any job, but a space like a garage or warehouse may require a little less finesse.

The Level of Gypsum Board Finish, ranging from Level 0 to 5, offers a clear idea of the quality of work people will expect.

At the lowest Level 0, a job does not include any taping, finishing or accessories. By

the time it reaches Level 2, a project requires tape to be embedded in joint compound at every angle, while every fastener is also covered in compound. The most common finish in a home, at Level 4, has a single coat of joint compound over interior angles, two coats over flat joints, and three coats over fasteners. The Level 5 work that might be needed for a glossy surface includes a final layer made of a thin skim coat of joint compound or an acrylic primer surface which can be applied with a paint roller.

Chalk it up to an easy measurement Every contractor has heard it before: measure twice, cut once.

Some of the easiest measurements will not even include a ruler. When cutting the opening for an electrical outlet, try covering the edges of its box with a layer of chalk. It

will make a clear imprint on a piece of drywall before it is cut.

Never fight the board Nobody likes to be forced to do anything.

Drywall is no different. If a panel of gypsum is forced into place, the fasteners in the middle of the sheet could pull out, deforming the joints.

Repairs to this damage will involve making a square cut around the deformed area and then cutting a new sheet to plug the opening.

A drywall repair kit will offer the clips to hold edges of a new sheet in place. All four sides can be filled with tape and compound once the clips’ tabs are removed.

When clips are not available, edges of a new sheet can be cut at a 45˚angle, buttered with drywall compound and pressed in place before being finished as a butt joint.

Think of them as the tips that create expert panels.

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Feature

WILL LEED LEAD THE WAY IN 2012?

The program continues to evolve and require more and more sophisticated documentation from contractors.

BY LAWRENCE CUMMER

A

new version of LEED, short for Leadership in Energy and Environmental Design, is coming next year and the onus on contractors promises to be huge.

Developed in 1998 by the U.S. Green Building Council (USGBC), the accreditation program was adapted five years later in Canada by the Canada Green Building Council (CaGBC).

The Canadian program last underwent a significant update with the release of the LEED Canada NC 2009 and LEED Canada CS 2009 rating systems, which followed on the heels of USGBC’s release of LEED NC-2.0.

Most recently the U.S. organization has completed a second round of public comment towards the development of a new LEED 2012 rating system, the U.S. release of which is scheduled for November 2011. The proposed changes are still undergoing review for adoption in Canada, according to the CaGBC. The organization says it cannot comment further on changes until its review is complete.

The program certifies buildings and homes built to have reduced environmental impact and higher performance. Credits are accumulated in categories of site sustainability, water efficiency, energy and atmo52 |

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sphere, materials and resources and indoor environmental quality, and go towards a site being graded as Certified, Silver, Gold or Platinum. The CaGBC is responsible for this certification in Canada.

Continuous improvement in programs such as LEED is, in part, due to regional codes and standards catching up to them, at which point the programs leapfrog ahead and raise the bar on performance and innovation, says Barry Reid, Sustainability Manager, Georgia-Pacific Gypsum. He says contractors and builders opinions are divided on program changes; some see them as a negative that adds cost and complexity, while others instead see opportunities to differentiate their businesses.

“The landscape in this area is moving so fast it can be hard to keep up, and it becomes hard to measure because construction is not always keeping up with the rate of changes in codes, standards and programs,” Reid says.

Whether or not contractors are keeping up with programs like LEED, he adds they will have to sooner rather than later.

“Energy management is king, and measures related to energy management will be adopted pretty quickly,” he says. “No one

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Feature

“The landscape in this area is moving so fast it can be hard to keep up, and it becomes hard to measure because construction is not always keeping up with the rate of changes in codes, standards and programs.”

– Barry Reid wants to be seen as a laggard in terms of energy efficiency.”

While still under review by the CaGBC, industry experts note a few potential trends that Canadian contractors will have to pay close attention to, especially around materials.

Measuring Materials: “One thing is clear in the ‘Materials and Resource’ section: changes suggest that products contributing to LEED credits will be less about attributes, for example specific recycled content targets, and more about environmental performance,” Reid suggests.

Because of this, experts suggest a greater focus will be placed on life-cycle assessments (LCA’s) and environmental product declarations (EPD’s). LCA’s look at a product from its raw materials, through to its processing, manufacturing, distribution, use and repair, to its ultimate disposal or recycling; while EPD’s disclose a product’s environmental impact.

Understanding how to source materials and products contribute to LEED accreditation is; however, an area of confusion for some contractors.

Bruce Heaton, Eastern Canada regional purchasing manager for Moulding and Millwork, says customers are increasingly asking questions about LEED, but that misunderstanding exists between product certification and contributions to accreditation.

“We are getting asked by customers for

‘the LEED product,’ and there seems to be a bit of a gap in knowledge, in understanding that certain products can help contribute to a LEED category, but there is not a specific LEED-certified product,” he says.

Contractors need to be asking instead for products that contribute to particular accreditation categories.

Moulding and Millwork has worked to be proactive, developing products that help builders qualify to a number of LEED categories.

Its nine manufacturing factories contribute toward regional credits, and it has increased its sourcing of environmentally-certified wood (from responsibly managed forests).

Depending on the product, location of the building and categories being worked towards, the company has products that could contribute to between one and five LEED credits, including recycled content, regional materials and (through new urea-formaldehyde-free products) indoor environmental quality.

Still, contractors need to make LEED and or other environmental programs a priority in order for manufacturers to be able to help. For example, it is fairly easy to source environmentally-certified pine, whereas mahogany comes from protected rainforests.

In addition, environmental certification programs always have a learning curve, and Heaton thinks LEED 2012 will be no different. Gaps exist between what designers and architects want, what is readily available

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Feature For example, Johns Mansville develops manufacturer statements presenting the third-party certification of its products’ green lifecycle including reduced use of virgin resources, reduced use of restricted ingredients and elimination of toxins such as formaldehyde.

LEED accreditation can require as many as 2,000 different custom documents, a significant challenge for builders and contractors to accumulate, says environmental construction consultant Richard Kula, principal at Sustainable Solutions Inc. of Winnipeg.

Kula says that LEED is becoming even more document driven.

“It is getting worse,” he says. “It is just getting a lot more complex and the amount of work required is getting more sophisticated.

The program is evolving, but it is still an enormous amount of work.”

Kula attributes slip ups and challenges related to documentation as the cause for failure of a majority of projects that had been initially registered for LEED. He says only 10% of projects ultimately become certified, since it is difficult for specialists, general contractors, designers and architects on the same page around documentation.

Because of this he steers most of his clients away from the program. and what consumers and contractors know about. “It is very complicated for Mr. and Mrs. Smith, and even for Mr. and Mrs. Smith Contracting. The good news is contractors are starting to better know what is available and how to match it to their needs.”

Demanding Documentation: The contractor’s biggest role in LEED may revolve around documentation.

Contractors are responsible for tracking and sharing a great deal of information around materials and processes in order to assist in accreditation.

“What is important is that contractors know about the products that they are using,” says Murray Line, branch manager at Johns Mansville Canada Inc. in Winnipeg.

“They should go to their manufacturers and ask for the documentation needed, and supply it to the general contractor (or builder) who can use it as evidence of the product’s environmental attributes.”

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NOVEMBER/DECEMBER 2011

A possible alternative: Kula says, because of documentation challenges, he is increasingly presenting Green Globes to his clients as an alternative to LEED. In Canada, Green Globes was adapted in 2000 from the earlier Building Research Establishment’s Environmental Assessment Method (BREEAM) Green Leaf eco-rating program. The same year, BREEAM Green Leaf for the Design of New Buildings was

developed for the Department of National Defense and Public Works and Government Services Canada.

In 2004, the program was adopted by the Building Owners and Managers Association (BOMA) Canada for its Go Green Plus program, which was selected as the certification program by the federal government’s Department of Public Works and Government Services.

Kula says the program, has lower costs related to assessment and verification, because it does not require custom documentation, but the usual documents generated during the building process.

According to Kula, the program puts greater emphasis on water and energy than LEED, and that steering clients toward Green Globes has created opportunities to develop even more energy efficient buildings. He says he has even seen situations where the savings his clients found from Green Globes certified were able to be put towards more efficient equipment for energy savings. It typically costs between $3,000 to $5,000 to use its online system and to have a building third-party validated.

All environmental programs have a financial threshold or trade-off, says Heaton, since some products can reduce environmental impact without markup, while for others there is still a premium attached. Still, as environmentally-friendly and energy-efficient products and practices become more commonplace, economies of scale will continue to drive prices down.

“At the end of the day we can all be excited that things are moving in the right direction. The more everyone learns the better it is for ourselves, our environment and our future.”

HELPFUL REFERENCE WEBSITES

For more information on LEED 2012 and Green Globes visit:

Canada Green Building Council: http://www.cagbc.org/

LEED 2012 Development: http://www.usgbc.org/DisplayPage. aspx?CMSPageID=2360

LEEDuser discussion forums: http://www.leeduser.com/discuss

Green Globes: http://www.greenglobes.com

Green Building Initiative: http://www.thegbi.org/

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