The
A publication of Northland Area Builders Association
Construction Times April 2012
Mission
NABA Board of Directors
The NABA, chartered in 1989, is a non-profit trade organization comprised of building and construction industry professionals in Ashland, Bayfield, Burnett, Sawyer and Washburn Counties in Northwestern Wisconsin. Promoting professional growth to its members, the Association provides the resources to stay abreast of our ever changing industry. Every member of the NABA is also a member of the Wisconsin Builders Association (WBA) and the National Association of Home Builders (NAHB).
Past President: Russ Smith, Russ Smith Construction 715-462-4170
To maintain the highest professional standards, our membership adheres to a Code of Ethics, monitors legislative issues, and promotes affordable quality housing.
29148 Mail Road • Danbury, WI 54830 Phone: 715-259-3486 • Fax: 888-825-8073 Email: naba@centurytel.net www.northlandareabuilders.com
President: Ed Peterson, Peterson Construction 715-866-7127 President Elect: Joe Gendrich, Culligan of Ashland 715-682-6585 Secretary: Rick Harder, Northern Paradise Homes 715-635-2299
Code of Ethics Members of the Builders Association subscribe to the following Code of Ethics: n
Treasurer: Jim Perlick, Jim Perlick Construction 715-635-7575
n n n
Directors: Jason Olsen, Peoples Bank 715-634-2674
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Kevin Miller, Northland Recreational Homes 715-634-6366
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Todd Knutson, Johnson Bank 715-634-2611 Jeremy Lindgren, Arrow Building Center-Spooner 715-635-2199
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Subscribe to the By-laws of the State and National Associations. Meet or exceed all State required insurance regulations. Maintain a good credit rating in high standards. Respond to consumer complaints, and act on these complaints in a timely manner. Continue to improve their skills and knowledge through educational resources made available at a local, state and national level. Employ other association members to assure the high standards set by its members are maintained. Conduct themselves in a professional manner to maintain the standards of the association. Comply, both in spirit and letter, with rules and regulations prescribed by law and government agencies for health safety, and progress of the community Have a commitment to excellence.
Open seat
WBA State Directors Jack Sjostrom, Sjostrom Construction 715-634-4427 Charlie Johansen, Johansen Electric 715-634-3761 Open seat
NAHB National Directors Jack Sjostrom, Sjostrom Construction 715-634-4427
Need Help? Northland Area Builders Association 715-259-3486 www.northlandareabuilders.com National Association of Home Builders 800-368-5242 www.nahb.org Wisconsin Builders Association 608-242-5151 www.wisbuild.org Wisconsin Department of Commerce 608-266-3151 www.commerce.state.wi.us/SB/
Open Alternate Seat
NABA Staff Jennifer Johnson, Executive Officer
Become a fan of Northland Area Builders Association to receive industry news, updates and network with others in the industry.
Cloud Computing and Construction Management: What Can it Do For your Business? Jon Witty, Vice President, Sage Construction and Real Estate
What is Cloud Computing? Being "in the cloud" is the latest catchphrase in technology discussions. It can refer to virtual servers that allow users to access stored data via an Internet connection. Providing access in this manner is frequently referred to as using cloud-based or webbased services. Being “in the cloud” can also mean using an application outside of a company’s firewall, such as conducting business with a smart phone or tablet (iPads). Cloud Computing and the Construction Industry The construction industry must balance back-office functions — billing, paying invoices, running financial reports, payroll, planning logistics — with the physical presence needed on the job site or in a client’s office. Today’s technological solutions must be able to serve users in both work settings. Responses from Constructech’s 2011 IT survey show construction companies are reporting from the field as well as "carrying out project management, scheduling, punchlists, and time tracking tasks out in the field today." Remote access allows staff to work from any location while still managing their workload throughout the day. With the amount of consolidation, decentralization of offices, travel-based positions, and project work being done in different regions of the country or even internationally, being able to offer solid remote access technology to employees is key for any successful construction company.
For many companies, solving this challenge means moving some of its applications to the cloud. One construction company, True Value Homes (TVH), based in India, is able to give any employee with proper credentials access to these applications through a secure, web-based environment. Before the move, TVH was running operations on 17 sites, and employees could only work in the office so all papers needed to be brought into the central office for processing and approval. Whereas TVH once had 100 personal computers for 100 employees, now 500 users can access its web-based applications. "We want to make sure that our employees get the best out of their workplace," Arun Nehru, TVH’s director, said. "What we are telling employees is that [wherever you need to work], the applications are available from the office, home or [onsite]. Collaboration Between Contractors, Owners/Clients Leveraging cloud-based services also extends beyond the workings of a single construction company. As Constructech’s 2011 IT survey notes, "today’s construction professional also needs to be highly collaborative. The word ‘team’ has taken on a whole new meaning in the construction industry. Every team needs to obtain a high level of transparency and accountability for the property owner. Overall, construction companies will be more collaborative, using technology to connect all project team membersfrom trade partners to general contractors to ownersin one central location."
Yet, it is highly unlikely that each of the project team members uses the same back-office business management applications. So, as general contractors, trade partners and owners individually look to the web to streamline business operations, identifying the kinds of technology that will enable the secure and timely exchange of project information between all involved should be determined at the planning stage. Mobility Constructech’s 2011 IT survey indicated that contractors will then take project information "out to the jobsite with mobile devices as well as applying a host of applications on these mobile devices." The growing trend of utilizing mobile technologies in the construction industry supports the surveys findings. However, the type of device varies. According to the survey, "the smart phone is still one of the most commonly used devices at the jobsite (81% of survey respondents). Laptops (69%) and tablets (26%) also receive a significant response." Given the advances in and adoption of tablets such as Apple’s iPad over the past two years, growth is anticipated in the use of the tablet in the construction industry as well. Given the fast moving area of mobility, today’s business management solutions need to support the highly mobile workforce of the construction industry today and into the future. Leveraging Today's Technology for the Future Does that mean that your construction company needs to scrap everything it’s using today for new cloud-
based applications? In the current economy, many companies are looking towards extending the applications that they are using today into the cloud where it makes the most sense.
Jon Witty is the Vice President and General Manager for Sage Construction and Real Estate, which is a division of Sage Business Solutions (SBS). A former Microsoft executive with more than 25 years of experience in the technology and ERP markets including the construction and project management vertical, Witty is responsible for driving Sage’s business strategy and initiatives in the construction and real estate market. For more information visit www.sagecre.com.
Membership Notes Share your accomplishments, awards, and announcements with fellow members. Send your news to jennifer@northlandareabuilders.com and we will be glad to include it in the newsletter. April 3rd Networking Night - Burgers, Brats & Builders at Northern Paradise Homes in Trego. We’ll provide the meat, soda and water. Please bring a dish to pass and a lawn chair. Everyone welcome and we will have games for the kids. $5/person (kids 12 and under free). Please be sure to RSVP to the NABA office so that we can be sure to have enough food on hand.
However due to the lack of member involvement and support for the event, the NABA Board of Directors will be reviewing this event to determine if it is cost effective to pursue for 2013. In 2012 only 20% of the participating vendors were NABA members. If you are interested in serving on a planning committee or have input into this event, please contact the NABA office.
Riding Lawn Tractor Raffle Tickets Congratulations to Lori Welter of Hayward! Lori won the NABA Riding Lawn Tractor raffle and purchased the winning ticket at the NABA Family Ice Fishing Event. Thank you to all the members who promoted the raffle and sold or purchased tickets. We raised nearly $400 for the NABA Scholarship Fund after expenses.
New Member Publication Member Matters will be created, printed and mailed quarterly to all members. The main focus of the new publication will be various member benefits and features. It will also showcase new members, member to member discounts and services, and members in the news. If you have an item that you want to be featured in the new Member Matters or offer a special service or discount to fellow members, we want to hear from you.
Home Expo 2012 The 2012 NABA Home Expo has wrapped up. Despite the beautiful weather, many vendors reported quality leads and NABA will gain several new members as a result of their participation in the Home Expo.
Annual Golf Scramble May 22, 2012 • Butternut Hills (Sarona) 12:00 pm Pitch & Putt Contests 1:00 pm Shotgun Start 5:00 pm Dinner & Awards $80/golfer includes golf, cart & dinner $150 Hole Sponsor plus $25 prize includes one complimentary golf registration
Visit www.northlandareabuilders.com/?110540 to register online
Wisconsin Builders Association Update your member dollars at work
Wetlands Bill signed into law Governor Walker recently signed into law the wetland reform bill (SB 368) that has been in the work for the past year. You may also recall that this was one of the major pieces of public policy that we have wanted to get done to close out the 2011-2012 session and a major provision that members lobbied on during Business Day in Madison 2012.
schane gave the history of the rule and the fact that states like Pennsylvania have already moved back to the 2003 wall bracing standard.
“Wetlands protection and economic growth can be achieved when the regulators and the regulated work together towards a common goal of fostering both,” Kedzie said. “SB 368 will serve as a new starting point for more cooperation between the private and public sector and making the wetlands program more efficient, effective, and balanced.”
The board seemed receptive to the request but will be taking some more time to further study the issue. The wallbracing issue will again be on their next meeting agenda and we are very hopeful of a positive recommendation from the new group which is chaired by WBA member Representative Michelle Litjens (R-Oshkosh).
The bill streamlines the wetlands permitting program by allowing the Department of Natural Resources to create General Permits for small activities occurring in or near wetlands, and focus more of its efforts and resources on the higher-profile and sensitive wetlands activities. The bill creates more certainty within the process to apply for and receive a decision for a wetland permit, and mirrors many of the wetlands permits currently issued by the federal government. UDC change goes to Governor Walker's desk In mid-March the state Assembly concurred on Senate Bill 453 (SB which will make much needed reforms to the Uniform Dwelling Code Council (UDC). The UDC is the advisory council that takes input from citizen members on changes to the one and two family code. SB 453 reduces the members on the UDC from 18 to 11 because a number of seats on the UDC have been vacant in recent years and will allow the council to be more efficient in their deliberations. The bill also deletes “slotting” of members which will WBA and members to submit applicants who are builders, remodelers and suppliers to get more “in the field knowledge” on the council. TenPas/Deschane talk Wallbracing Recently the Small Business Regulatory Review Board met for the first time in the Governor’s conference room and one issue they took up was WBA’s objection to the current wall bracing rule. Brad TenPas, past chair of the WBA Code Committee, traveled to Madison to testify on the rule with WBA Executive Vice-President Jerry Deschane. TenPas was able to give an “in the field” perspective of the rule while De-
The board was asked by Deschane and TenPas to recommend to the Department of Safety and Professional Services (DSPS) that they issue an emergency rule to go back to the pre-2003 code on wall bracing.
Senator Galloway to resign: Senate to split 16-16 Nothing short of a political bombshell was dropped recently when freshman state Senator Pam Galloway (R-Wausau) announced her resignation from the state’s upper house. “Today I am announcing my retirement from the Wisconsin state Senate,” Galloway said. “After a great deal of thought and consideration, I’ve decided to put the needs of my family first. My family has experienced multiple, sudden and serious health issues, which require my full attention. Unfortunately this situation is not compatible with fulfilling my obligations as state Senator or running for re-election at this time.” This announcement would lead to an even 16-16 split in the senate, however in reality it means little since the senate is done with their work this session. Galloway was facing a recall election this summer. There will now be some legal wrangling on whether that should proceed or a special election should be called by Governor Walker to fill the open seat. Regardless of what election moves forward, recall or special, the prospects for the GOP to remain in the majority in the state senate were made much more complicated by the sudden Galloway announcement. BIC opening, local under 500 members Currently the Building Industry Council, a separate 501 (C)(4) social welfare organization that promotes sound public policy through education and grassroots lobbying and is associated with WBA, has an opening for an active member from a local that has fewer than 500 members.
These days every business is looking for ways to trim budgets and save money. To help with this, NABA has partnered with the National Purchasing Partners - Home Builders Purchasing Program. This partnership will allow even our smallest NABA member companies to take advantage of special discounts just for the construction industry from Verizon Wireless, Staples, and more. To find out more about the program and how to start taking advantage of the savings, please contact the NABA office for your registration information. There is no cost to join for NABA members. Visit www.northlandareabuilders.com and click on the HBPP logo to download a flyer & instruction sheet with registration details.
Let your membership earn you money back
National Association of Home Builders Update your member dollars at work
Members of Congress will be Home for Two Weeks for Spring Recess! Starting April 2, Congress will be home for two weeks. There are still big issues facing our economy, and the housing economy in particular, that Congress has yet to address. We need to keep our lawmakers focused on the housing crisis and urge them to be proactive in their response. Please take a moment to coordinate with your local and state HBAs and set up meetings with your Members of Congress at their district office during these two weeks of recess. Over the break, we ask you to continue to push two issues: the passage of AD&C credit legislation, which will allow home builders to gain access to construction credit, and legislation to improve EPA’s lead paint rule. As always, tax reform is a hot topic in Congress. Be sure to remind your Members of Congress to protect the Mortgage Interest Deduction in any tax reform proposals they endorse, as well as preserve the Low Income Housing Tax Credit. To assist you in your meetings, talking points, lists of co-sponsors and other pertinent information can be found at www.NAHB.org/indistrict. If you have any questions please contact us at builderlink@nahb.org. In order for the housing industry to gain solid footing, we need Congress to act now! NAHB Senior Officers Discuss Key Housing Issues with Congressional Leaders NAHB Chairman Barry Rutenberg and First Vice Chairman Rick Judson this week conducted two days of meetings with Democratic and Republican leaders in both chambers of Congress to urge lawmakers to pursue a strong national agenda for housing. The NAHB Senior Officers reiterated the importance of housing and homeownership to the economy and stressed that there can be no economic recovery without a housing recovery. On Capitol Hill, Rutenberg and Judson met with several influential lawmakers from both sides of the political aisle, including Senate Majority Leader Harry Reid (D-Nev.); Senate Minority Leader Mitch McConnell (R-Ky.); House
Majority Leader Eric Cantor (R-Va.); Rep. Steve Israel (DN.Y.), chairman of the Democratic Congressional Campaign Committee; and Rep. Carolyn Maloney (D-N.Y.), the ranking member of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. Discussions focused on the need to enact policies that would provide a stable and affordable supply of credit for home buyers, home builders and rental housing and to reduce or eliminate unnecessary regulations to make homeownership more affordable for firefighters, teachers, police officers and other middle-class families. Seeking to build bipartisan consensus for housing priorities among Washington power brokers, the two NAHB Senior Officers also held productive meetings with Sen. Patty Murray (D-Wash.), the chairman of the Democratic Senatorial Campaign Committee, and Sen. John Cornyn (R-Texas), the chairman of the National Republican Senatorial Committee. Financial Services Roundtable Hears From NAHB Chairman Speaking at the spring meeting of the Financial Services Roundtable this week, NAHB Chairman Barry Rutenberg provided the home builder's perspective on a variety of important subjects concerning both of our memberships. The Financial Services Roundtable represents major financial services companies involved in banking, insurance and investment products and services. In a panel discussion on "reviving the housing market," Rutenberg answered questions regarding the current state of the industry, efforts that the private sector and government need to take to promote a housing and economic recovery, and ways to responsibly expand loan modifications and reduce the inventory of foreclosed properties, among other subjects. Asked to define what needs to be done to reduce the inventory of Real Estate Owned (REO) property that is currently on bankers' books, Rutenberg noted NAHB's support for efforts to develop programs for investor purchase of foreclosed homes that will then be held off the market for a period as rental units. He also said that NAHB believes that changes must be made to ensure that smaller investors -- including home builders who know their communities -- can invest in these properties, and provided several key recommendations in this area.
Rutenberg also talked at length about the need to reform appraisal practices and oversight to ensure that appraisals reflect true market values, and explained NAHB's recommended plan for reforming the housing finance system. In all, Rutenberg’s invitation to speak at this special forum represented a fantastic opportunity to continue our work with the nation's top banking, insurance and investment executives on efforts to get housing and the economy back on track. IRS Makes It Easier to Qualify for Expired 45L Tax Credit The IRS has updated its list of software that is applicable to the New Energy Efficient Home Tax Credit (45L), the only federal incentive available for efficiency in new home construction. The 45L credit provides a $2,000 tax credit to builders and developers for the construction and sale of homes that achieve a 50% improvement in energy efficiency over the 2004 International Energy Conservation Code. The credit expired at the end of 2011 and has not yet been renewed for 2012. The new IRS 45L software programs offer builders additional flexibility in qualifying for the tax credit and is something that NAHB has long been pushing for.
The Weekly Job Report is distributed to NABA members every Monday. Each report contains a summary of bidding opportunities throughout the NABA region with links to detailed reports containing information on receiving plan documents on the Members Only side of the Association’s website. Members were emailed their user names and passwords for logging into the NABA website. Contact the NABA office for assistance or to retrieve your information. If your membership lapses, your log in information is deactivated.
The 45L tax credit and the Existing Home Retrofit Tax Credit (25C), which provides consumers a tax credit of up to $500 for the purchase of qualifying energy-efficient products, both expired on Jan. 1. Both 45L and 25C are traditionally renewed by Congress at the end of each year as part of a package of expiring tax credits. Commonly referred to as “tax extenders,” this package has become more difficult to pass due to the government’s fiscal belt-tightening. NAHB continues to seek an extension for both the 45L and 25C tax credits, but any congressional action is unlikely to occur until after the 2012 elections.
Dues payments to Northland Area Builders Association are not deductible as charitable contributions for federal income tax purposes. However, dues payments may be deductible as ordinary and necessary business expense, subject to exclusion for lobbying activity. Because a portion of your dues is used for lobbying by NAHB ($30) and WBA ($46.90), 16.19% of the total dues, or $76.90 is not deductible for income tax purposes (2012).
Industry News
Aging-In-Place: A way to differentiate yourself from the competition With the Census Bureau estimating that the 60+ population
Crasi admitted that he ventured into the market of home
will grow to 73 million by the end of the decade and NAHB
and assistive technologies "kicking and screaming" because
predicting that the aging-in-place remodeling market will
he was unfamiliar with the technologies. "Now, I'm using
be between $20 billion and $25 billion, panelists of the
the technology to gain an edge on the market and stay in
recent webinar, "Build Profit and Possibilities With Home
business."
Health Technology," discussed how builders and remodelers can get traction in the market through the
Getting Started Crasi recommended that builders and
application of universal design principles and assistive home
remodelers work with electronic systems contractors
health care technologies.
(ESCs), who will help them address the market's needs. "An experienced ESC will, no doubt, showcase where the
"As builders, we are all looking for an edge or a way to
opportunities are. ESCs are like any other expert contractor,
differentiate ourselves from the competition," said Tony
but a one-on-one partnership is key."
Crasi of The Crasi Company, a design/build firm based in Cuyahoga Falls, Ohio.
Ric Johnson of Right at Home Technologies, an ESC based in Waynesfield, Ohio, who provides home automation,
Rather than cut profits to stay competitive as a builder, Crasi
energy management, entertainment, security and health
diversified into the aging-in place market, particularly since
and wellness services, said assistive technologies - such as
an overwhelming majority of seniors — as many as 89%
remote monitoring, cognitive exercises for brain
according to some surveys — indicated they want to remain
stimulation, prescription and medicine reminders - can help
in their homes as they age.
residents stay in their homes much longer.
"What we are trying to do is meet the challenging needs
"Meet with all parties involved — the mother, father, son,
facing people as they grow older and apply building
caregivers, medical staff and others — so that both the
principles such as accessible design, good planning and the
builder and ESC can create a comprehensive plan together
assistive technologies associated with in-home health and
and build based on the customer's specific needs," Johnson
wellness," he said
said.
"Go over their medical needs," he said. "Talk about
"Go over their medical needs," he said. "Talk about their
by building a new home, or they can remodel their existing
exercise habits, if it's applicable. You want to create spaces
home so it better meets their needs as they age.
and install technology that add value to the routine in their daily lives and make it easier."
He said he worked with a builder using universal design
Crasi said that builders, remodelers and ESCs should discuss
concepts "such as a no-step entry, everything on one level,
more than the home owner's needs when reviewing options
wider entry ways and more lighting."
with families and caregivers. With such a home, Johnson said, "there is no need to modify "Talk about lifestyle and hobbies — and be sensitive to the
the house as the owner ages. It can be prepared in advance."
individuals involved during the interview process," he said. "It's very important to be sensitive to the older person when
He said the technology infrastructure can be pre-wired in
meeting with a group. It's easy to forget that, regardless of
the home and, when the need arises, the home owner can
where their level of comprehension lies, they need to be
add appropriate technologies, such as "a telephone system
included and welcomed into the discussion."
that works independently without a handset so, in an emergency situation, there is no need for the home owner
Comprehensive discussions are needed, Crasi said, because
to try to get to the phone or find it."
"we are not medical professionals. If there are some issues
Johnson said that the second option of remodeling the
that are beyond our scope of knowledge, we need to be
home for aging-in-place enables home owners to "keep
made aware of them."
their memories of living in their house as they age, but they maintain their health as well."
He cited the example of the need for more suitable flooring for a client who uses a walker or shuffles when he walks.
Options for the home owner, he said, can include opening
"These types of details need to be established," Crasi said.
up the home for more natural light options and having all the necessities on the main level and leaving the second
"Everything should remain familiar and comfortable for
level for guests. Home automation systems can be added
owners of the home," Crasi said.
to control the lighting or send temperature information to smart HVAC systems.
Building and Remodeling Opportunities Johnson said clients generally have two possibilities — they can downsize
Also, providing elderly home owners or their adult children
cost-effective if they are less expnsive than nursing home
with peace of mind are security systems that monitor for
care or they increase the value of the property.
any intruder who might come into the home and also safeguard against the occupant wandering away.
The panelists also pointed out that assistive technology features can be installed at manageable cost. Crasi and
Remodeling a home for aging-in-place and including
Johnson said they worked together on an affordable home
assistive technology help the home owners on several
project where they provided lighting control, HVAC and
levels, Crasi said.
security for roughly $1,500.
Both panelists said adult children can also remodel their
"In the aging-in-place market where there is a great deal of
homes with aging-in-place features to accommodate an
technology associated with care, the builder creates a
elderly parent moving in with them.
custom living space, and the ECS provides solutions to aging-in-place realities," Johnson said.
An aging parent can help defray the cost of the renovation, and the improvements to the home can be considered
Missed a publication? Past issues of the following publications are now available on www.northlandareabuilders.com/?110260. If you aren’t receiving these publications, please contact the NABA office to update your email address or fax number. The Construction Times 2012 - monthly electronic newsletter about general Association activities and industry news. The Home Builder Public Policy Post - monthly electronic newsletter about housing advocacy and legislation. Economic Indicators - monthly electronic newsletter about housing economics. Membership Matters - quarterly mailed newsletter about membership benefits and services. Weekly Job Report - weekly electronic summary with links to projects out for bid in the five counties NABA serves and surround communities. Members must log into the Members Only portion of the NABA website to view.
2012 NABA Legislative Session Recap - electronic summary of housing and business related bills and voting records of your elected officials