NABA July Construction Times by Jennifer Johnson

The

Construction Times

A publication of Northland Area Builders Association

July 2011

The Building Industry Council (BIC) currently is looking for a member who belongs to a local that has under 500 members to be a new member of the council. In December of 2006 BIC voted to expanded its membership by ten (four new members from Valley, Metro, Brown County and MABA) four members from locals that have under 500 members and two non-voting Executive Officers. WBA was recently informed that a member who had been filling one of the slots for a local that was under 500 members is switching jobs and has stepped down from BIC. Please send me an e-mail if you are interested in serving as a new member of BIC or would like more information on serving on other councils or as a state or national representative. These opportunities are only available to members.

To better serve our members, NABA is asking for your input on this short survey covering what types of communication, member benefits and services that our members prefer and use. Please complete and submit your survey by July 15th. Survey results will be shared with your Board of Directors at the July 20th meeting, and will be reported in the August NABA e-newsletter, The Construction Times. The information collected will be used to tailor membership benefits, services and programs. The survey closes on July 15th at 4pm.

The Sawyer County Zoning and Conservation Committee discussed the proposed new Shoreland Ordinance at their April 13 meeting. The ordinance is to meet but not exceed the new NR115 standards, except in cases where the county already exceeds such standards then the old rules will apply. Copies of the proposed ordinance are available from the Zoning Department. A public hearing is scheduled for July 15th at 8:30 am.

Housing and the economy remained sluggish and most economic data released during the past few weeks have been disappointing. Existing home sales were down again in May, and the NAHB Housing Market Index fell in June to a nine-month low. Inflation, as measured by the producer and consumer prices indexes, also continued to rise. But some bright spots are beginning to emerge. House prices ended a 10-month slide as the Federal Housing Finance Agency House Price Index ticked up in April. And while housing starts continue to “bounce along the bottom,” they rose in May, recovering half of the previous month’s decline. In addition, oil prices, which peaked in April, have settled back down by almost 15%, relieving some inflationary pressure. Though some have suggested that housing has fallen out of favor with the American public and Washington is targeting housing on a number of fronts — the expiration of the GSE and FHA loan limits, scaling back the mortgage interest deduction, etc. — a new poll commissioned by NAHB suggests otherwise. The results indicate that homeownership remains a priority for most Americans.

Mission

29148 Mail Road â&#x20AC;˘ Danbury, WI 54830 Phone: 715-259-3486 â&#x20AC;˘ Fax: 888-825-8073 Email: naba@centurytel.net www.northlandareabuilders.com

NABA Board of Directors President: Russ Smith, Russ Smith Construction 715-462-4170

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). To maintain the highest professional standards, our membership adheres to a Code of Ethics, monitors legislative issues, and promotes affordable quality housing.

President Elect: Ed Peterson, Peterson Construction 715-866-7127 Treasurer: Rick Harder, Northern Paradise Homes 715-635-2299 Secretary: Joe Gendrich, Culligan of Ashland 715-682-6585 Directors: Scott Chapin, RJF Agencies 715-634-4318

Code of Ethics Members of the Builders Association subscribe to the following Code of Ethics: n n n n n

Todd Knutson, Johnson Bank 715-634-2611 Kelly Licht, Culligan of Rice Lake 715-234-8819

n n

Jason Olsen, Peoples Bank 715-634-2674

LaNell McGuire, Floor to Ceiling 715-634-4573

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.

WBA State Directors Jack Sjostrom, Sjostrom Construction 715-634-4427 Charlie Johansen, Johansen Electric 715-634-3761 Open seat 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.

Membership in a Minute Total Members

Builder Members

Associate Members

Affiliate Members

5/31/2011

12/31/2010

% change

1.3%

210%

Mark Beckman, Anderson Hager & Moe Dennis Rasmussen, Andry Rasmussen & Sons Charlie Johansen Frank Cane, Frank Cane Masonry Paul Hedlund, Johnson Insurance Kevin Wohlford, Wohlfords Construction

none

Dan Hinman, Don Johnson Auto Group Deb Hitchcock-Gale, Coldwell Banker Lakeside Realty

Ron Kirk, Acme Tools John Solofra, Bergeman Plumbing Bill Otterson, Hardwood Floors and More

2011 NABA Building & Remodeling Directory is now available. Extra copies are available for members to distribute - contact the NABA office for details.

Paul Manka, Menards Nick Kendyall, Northern Lakes Coop

Duane Hoef, Hoefs Construction

Jeff Homuth, Hayward Mercantile Josh Peck, Peck Construction none

The following are new NABA members - please stop by their place of business and welcome them. Todd Schulte, Polk Burnett Electric Co-op

The full 3 in 1 membership will take effect on your final payment. There are no refunds on this program, any payments made until the third payment will be considered a donation to the HBA in support of the industry. The first payment will be processed upon receiving the completed form. The following two payments are due on the 1st of the following month. We have the ability to do this as an electronic withdrawl from your bank account. Contact the NABA for details.

Wisconsin Builders Association Monday Morning News JUNE 20, 2011 State Budget moves to Governor Walker Recently both houses of the legislature met and passed identical versions of the state budget. In the end, it was slightly tweaked from the version passed by the Joint Committee on Finance. The state budget now goes to Governor Walker’s desk where he will announce his vetoes (if any) and then sign the budget before July 1, 2010. WBA will be communicating with the entire membership once the budget is signed with an extensive summary of the issues we supported in the budget. If there are no changes to the budget passed by the legislature we are very happy with the overall package. Some of the top issues we were able to address in the budget include: • Elimination of the conversion fee on agriculture land. • Prevailing wage law changes to eliminate prevailing wage requirements on residential subdivisions, “publicly funded private construction projects,” and donated labor used to construct or repair municipal projects. These changes would now take effect once the budget is signed into law by Governor Walker. • Ban on code packages that increase the cost of housing by $1,000 unless passed by both houses of the legislature and signed into law by the governor. • Permanent caps on property taxes. Conversion Fee change in effect when? The conversion fee on land will be eliminated if Governor Walker accepts the legislature’s recommendation contained in the recently passed state budget on this matter. Several members have inquired about when this change will take effect. According to an analyst at the Legislative Fiscal Bureau “the conversion fee repeal would take effect immediately upon the bill's effective date, which would be the later of July 1 or the day after publication. Until the bill's effective date, current law would apply, meaning a conversion fee is to be collected for each rezoning.” Rule reform bill becomes law Governor Walker recently signed into law Special Session Bill 8 (SS AB 8), a comprehensive reform of the rule making process in Wisconsin. Now that SS AB 8 has been signed into law any Wisconsin governor will have a greater ability to review and reject administrative rules in the future. This greatly affects the building industry because the vast majority of building code changes come via the administrative rule process. For years WBA members have asked for more transparency and accountability in the legislative rule making process and this major reform package will do just that. In short, this new law will allow: •Agencies will only have the authority explicitly specified by the Legislature. •The Governor can reject regulations being advanced by his or her agencies. •Agencies will (finally!) analyze the economic impact of their mandates. •Citizens may challenge administrative rules in the county in which they reside, not just Dane county. This is another item on the 2011-2012 GA agenda that we were happy to finally become law. Waugh named to Wisconsin Council on Forestry Recently Virgil Waugh of Amwood Homes in Janesville was appointed by Governor Scott Walker to serve as a member of the Wisconsin Council on Forestry. Mr. Waugh will replace Leon Church, a long time WBA member who previously served as a member of the Wisconsin Council on Forestry. Thank you to Leon Church for your service as a member of the council and congratulations to Virgil Waugh as you begin your term on the Wisconsin Council on Forestry.

Secretary Jadin addresses WBA EC meeting Recently current Commerce Secretary and head of the newly created Wisconsin Economic Development Corporation (WEDC) Paul Jadin took time from his busy schedule to address the WBA Executive Committee in Madison. Secretary Jadin gave the group an update on the transition from the current Department of Commerce to the new WEDC and the transitioning of the Safety and Buildings Division from Commerce to the new Department of Safety and Professional Services. Jadin also mentioned that WEDC will be creating a number of “citizen advisory groups” to get input on a wide variety of issues and said he would looking for WBA members to serve on these groups. WBA President Don Esposito followed up with Secretary Jadin after the meeting to both thank him for joining us and offering our help in finding members to serve on these advisory groups in the future. VoterVoice proving to be effective communication tool As you know WBA purchased new software to help members better communicate with elected officials this session. In the past we had asked you to send e-mails to your legislators on important issues but the process required a number of steps and admittedly was far from “user friendly.” Since the start of this legislative session we have sent out a number of alerts asking members to contact their member of the legislature on a number of important GA matters. In addition to allowing members to contact your legislator with “one click” VoterVoice also allows us to track the response rate we receive on each alert. Below is a summary of the e-mails we sent out and the rate of return we received from the household list of around 5,200 unique e-mail addresses we have in our database. 1.27.11, PACE/Conversion Fee co-author e-mail, 58 e-mails sent to the capitol 2.16.11, Support for the budget repair bill, 795 e-mails to the capitol 5.9.11, Support concept (budget) to repeal conversion fee, 138 e-mails to the capitol 5.11.11, Support Rep. Williams bill on prevailing wage repeal, 191 e-mails to capitol We are very happy with VoterVoice but as you can see by the numbers above we still have a lot of room to increase our member participation on important GA issues. If you have been responding out our “Call to Action” messages, thank you and please continue to spread the word to your fellow members. Questions or comments? Please contact Brad Boycks, Director of Government and Political Affairs for the Wisconsin Builders Association ®. You can reach Brad at bboycks@wisbuild.org or 888-285-9066, x16. You can also visit the WBA web site: www.wisbuild.org

The just signed 2011-2012 biennial budget made significant changes to Wisconsin’s prevailing wage law. These changes will go into effect on the effective date of the budget bill, which is anticipated to be sometime in the next ten days. Here is a brief summary of those changes: Project Thresholds Increases the threshold cost of a project for which prevailing wage applies as follows: ·

$48,000 for single trade projects

$234,000 for multiple trade construction projects conducted by municipalities with populations of less than 2,500 provided that the work is contracted with a private contractor

· $100,000 for all other multiple trade municipal and state public works projects Exemption for Residential Development Exempts any residential development from laws governing prevailing wage. Residential developments consist of any development where 90 percent of the approved lots contain or will contain a dwelling. Specifies that the exemption applies to any work paid for by a developer and then dedicated to a municipality. Exemption for Residential Projects Provides that prevailing wage law does not apply to a project involving construction of a residential property containing two dwelling units or less. Publicly Funded Private Construction Projects Repeals the prevailing wage requirement regarding publicly funded private construction projects. A publicly funded private construction project is a project in which the developer receives direct financial assistance from a municipality (e.g. a grant or other arrangement whereby the municipality directly provides funds to assist with the project). Statewide Concern; Uniformity Specifies that the statutory prevailing wage provisions must be construed as an enactment of statewide concern for the purpose of providing uniform prevailing wage laws throughout the state. Further, the revised law will prohibit local governments from enacting or administering prevailing wage ordinances and specifies that any ordinance or enactment that is effective as of the date of the statute is void. Reporting Requirements Repeals the monthly wage reporting requirements for contractors, subcontractors, or agents thereof. Inspection of Records Amends existing law so that DWD does not need to inspect contractor wage records when requested by individuals. Volunteer Work Repeals the current exemption from municipal and state prevailing wage laws for public works in which the labor is provided by unpaid volunteers. In its place, specifies that prevailing wage laws do not apply to projects in which the contracting government unit is not required to pay any contractor, subcontractor, agent, or individual for performing the work. Exemption for Trucking Activities Under current law, prevailing wage does not apply to a laborer, worker, mechanic, or truck driver who is regularly employed to process, manufacture, pick up, or deliver materials or products from certain locations unless one of the following applies:

· ·

The individual is employed to go to the source of the mineral aggregate that is to be immediately incorporated into the work by depositing the material substantially in place. The individual is employed to go to the site of the covered project, pick up excavated material or spoil from the project, and transport the excavated material away from the project site.

Prevailing wage law will be amended such that: ·

It will clarify that the individual would not have to be regularly employed in the activities described above to be exempt from coverage.

It will provide that prevailing wage law does not apply to an individual delivering products from a facility that is not dedicated to a project.

It will clarify that, to be covered, the individual would have to be employed to go to the source of mineral aggregate and deliver that aggregate to the site of a covered project by depositing the materials directly in their final place, either from the transporting vehicle or through spreaders from the transporting vehicle. Night Shift Differential and Holiday Pay Amends the current prevailing wage law regarding certification of prevailing wage rates for highway projects to generally include Sunday pay, holiday pay, and shift differential pay. ·

Prevailing Wage Survey Specifies that government units do not have to file a prevailing wage survey if the government unit performs any construction work. These changes should benefit both municipalities and developers by reducing the burden and costs associated with certain municipal projects. We will continue to monitor changes to prevailing wage laws and provide updates as necessary, as there may be additional modifications proposed in the near future.

Contractors have three important tools for managing the risk of customer claims: • Quality performance • Good relationships; and • A well-crafted, written construction contract Within the contract, common risk management clauses include standard of care, warranties, insurance, indemnification, and dispute resolution. In Wisconsin, contractors building a structure generally can only be sued for breach of contract. (There are other legal theories for owners to sue home remodelers and those providing services like design or repair.) This is because the “economic loss doctrine” provides that one providing a “product” can only be sued under its purchase contract, and a building is considered a product. Warranties provide an exceptional opportunity to control the risk and scope of liability in the construction contract. Contractors should consider two features in drafting warranties: 1. Limiting the scope of the warranty; and 2. Making the warranty the exclusive remedy for resolving claims. Under state law, there are implied and statutory warranties for providing a building fit for its intended use. The time period for bringing contract claims is typically six years. However, the parties to the contract can agree to a narrower scope of warranty, e.g., satisfying the general standard of care for workmanship; and they can also agree to a shorter duration for making claims. It is common for the contractor to provide a one to two year warranty, in addition to manufacturers’ warranties. If the contractor wants to limit remedies and time period to the warranty, it also must be expressly limited to the contractual warranty. That is, the contract must specify that the warranty is the customer’s only recourse for asserting claims. Several standard form contracts, such as the WBA contract, (which are free for members to download and use as a benefit of membership) have good warranty language. It is also prudent to have your attorney review the form of contract that you use for both the warranty language and its consistency with other contract terms.

NABA Networking Nights will be taking a brief hiatus during June, July and August. Networking Nights will return on September 6th in Hayward with David Hopkins of Woita and Associates. David will join us in Hayward to discuss Social Security Benefits and how to maximize your retirement nest egg in today’s economy. 0.5 ceu credits have been applied for through the WI Department of Commerce.

NEW NABA Member Toolbox Looking for industry templates, resources and information all in one location? Want to know what local commercial jobs are being bid? Look no further than the NABA website! A newly created member’s only section will soon feature a Member Toolbox page where you will be able to find all of that and more. And it will be available only to current members (members who are current on their membership dues). Watch your inbox/mailbox/fax for details on how to login.

Thanks to the hard work of Joe Gendrich, Culligan of Ashland, NABA will be raffling off a 2011 X300 John Deere Riding Lawn Mower with 42 inch deck. 1000 tickets are now available & booklets soon will be distributed to members to purchase or sell to the general public. Tickets were available for purchase at Hayward’s Musky Fest this past weekend at Peoples Bank. We hope to have the mower at the Spooner Fair. A portion of the funds raised will benefit the annual NABA scholarship awarded to local high school seniors going into the building trades. NABA relies heavily on membership dues to remain in operation and with only $115/member remaining locally, that makes operations a challenge. The NABA Board hopes that this fundraiser will not only be a significant source of income for the scholarship fund but will also add to the general operating funds of the Association.

THANK YOU JASON OLSEN, PEOPLES BANK, RICK HARDER, NORTHERN PARADISE HOMES, JOE GENDRICH, CULLIGAN OF ASHLAND AND LANELL MCGUIRE, FLOOR TO CEILING FOR SELLING RAFFLE TICKETS AND SUPPORTING OUR EFFORTS AT MUSKY FEST 2011!

NEW Member Benefits from Focus on Energy You're in the business of building and selling new homes. Focus churns up steady, dependable business for you. Build it better. Build it right with Focus New Homes Program.

When a new home can be more energy efficient, is cost effective to build, and differentiates your business, it's an obvious choice. And, Focus' New Homes Program makes it possible.

With Focus' New Homes Program, Wisconsin builders, like you, partner with leading energy experts to construct new homes that are safer and more energy efficient than other homes merely built to code. In other words, the program associates your company with superior quality.

Interested in becoming a partner? Contact Jennifer at

the NABA office for a packet or visit www.focusonenergy.com/newhomes for more information.

Program benefits · Trustworthiness. Any builder can say they build energy-efficient homes. The difference with Focus is that you have third-party certification to prove it. And, that makes home buyers choose you and not another builder.

· Easy. The beauty of Focus' New Homes Program is that there's no extra work for you. Your building performance consultant does the site visit, takes care of paperwork, and ensures homes meet Focus' specifications.

· Business enhancing. Joining Focus' exclusive group of Wisconsin builders is your ticket to increased home sales. Home buyers want the true mark of energy efficiency that Focus delivers.

· Incentives. Cash-Back Rewards make building Focus homes in your financial best interest. Plus, your business will be promoted on this website. And, with Focus' cooperative advertising, you can afford bigger advertising purchases because Focus will pay a portion of your ad costs.

· Homeowner education and follow-up. Another one of the many advantages of Focus' New Homes Program is the reassurance we'll take care of your potential buyers- after all you need their referrals! Focus educates buyers and sells the value of owning a new home that is energy efficient.

Know someone who isn’t a NABA Member? If you know someone who is interested in becoming a NABA member and is a Focus on Energy participant, they may qualify for a $200 rebate on their NABA membership dues from Focus on Energy/WECC. This one time rebate is only available to Focus builder participants and new member applicants. Applicants must be or become a Focus participant before applying for membership in order to qualify for the rebate.

REMINDER: DOC Fines for Using Unlicensed or Unregistered Subs A rule change effective December 1, 2010 will authorize the Wisconsin Department of Commerce (DOC) to impose forfeitures on those who do not comply with certain licensing, certification and registration requirements, or those who hire persons or entities who have not registered or do not have required credentials. In 2009, DOC started to require various trades involved in building or modifying structures to register as a building contractor. However, those that hold certain credentials, such as contractors who have a dwelling contractor certification, are exempt from this registration requirement. This new rule will allow DOC to impose forfeitures on those who do not have their registration, or certain other credentials, such as a dwelling contractor certification. In addition, forfeitures may be imposed on an entity or individual who contracts with another entity or individual who fails to comply with licensing, certification or registration requirements. Thus, a general contractor who has its dwelling contractor certification may be subject to a penalty if the general contractor contracts with a subcontractor who does not have its certification or registration. WBA objected to this rule, arguing among other things that the forfeiture amounts were excessive. In final version of the rule sent to the legislature, the forfeiture amounts were significantly reduced. Under the revised rule, the forfeitures for failing to comply with the licensing/ certification/ registration requirements, or for contracting with an entity that does not meet these requirements, are as follows: first offense, $250; second offense, $500; and third offense, $1000. In addition to authorizing the imposition of forfeitures, as a result of a statutory change, this rule also expands the trades subject to registration to include those that construct, install or alter mechanical equipment and devices such as boilers, gas systems, piping and mechanical systems serving a building or structure. The requirement was also expanded to include those involved in the construction, installation or alteration of permanent devices or structures regulated under the amusement or sanitation code.

Visit www.nahb.org/ma to learn more about money saving discounts available only to members

July 2011 S

Independance Day

NABA office closed

NAHB Webinar: Emerging Trends in 50+ Design & Ammenities 1 - 2 pm

20 NABA Board of Directors Meeting 5:00 pm 17

21 WBA Board of Directors Meeting

NAHB FREE Webinar: Financing for Home Builders 1 - 2 pm

7:30 am Chula Vista Wis. Dells

August 2011 S

NABA Board Meeting 5pm 21

31 NAHB Webinar Internet Marketing Strategies 1 - 2 pm

September 2011 S

6 Labor Day

7 NABA Networking Night in Hayward

8 NAHB Fall Board Meetings Milwaukee

9 NAHB Fall Board Meetings Milwaukee

NAHB Fall Board Meetings Milwaukee

10 NAHB Fall Board Meetings Milwaukee

NABA Office Closed

NAHB Webinar Using Youtube to Market & Sell Homes 1 - 2 pm 18

21 NABA Board Meeting 5pm

28 NAHB Webinar Kitchen Design 1 - 2 pm