Ontario Home Builder - Fall 2013 by Ontario Home Builder

ohba.ca

FALL 2013 | $5.00

ASSESSING THE COSTS OF reclaimING contaminated land P.15

Details, details!

Stack ’em up!

Minor upgrades can make a big impression on prospective buyers

The latest trend in building townhomes

P.52

P.42

Complaints department

Small world

HOW TO DEAL Better WITH UNsatisfied CUSTOMERS

compact housing solutions for ENERGYconscious Ontarians

P.59

P.36

OHBA’s next president

Eric DenOuden

launches a charitable challenge

P.30

PM 42011539

There’s still time to get a $100 rebate in our Drain Water Heat Recovery program. But hurry! The units must be installed by December 31, 2013. Great news! Enbridge Gas Distribution has extended the Drain Water Heat Recovery (DWHR) rebate program. That means you still have time to get DWHR units at very little cost to you – to help you improve the energy efficiency of your new homes. With a retail value of $600, it’s a valuable offer you won’t want to miss. But hurry! The units must be installed by December 31, 2013. Here’s how the program works: You’ll be required to pay $100 (+HST) per unit to the supplier, Renewability Energy Inc. or EcoInnovative Technologies Inc. Once the unit is installed, Enbridge will give you a $100 rebate, plus cover the balance of the unit cost. You’re responsible for shipping and handling costs, plus all applicable taxes. You’ll need to install the unit and provide proof of installation – using the builder completion form – to Enbridge by December 31, 2013. One unit per residential address only. About Drain Water Heat Recovery units. These easy-to-install, maintenance-free units help homeowners recover water heat that is lost down the drain – reducing their water heating costs by as much as 40%.

Don’t delay. Contact your Channel Consultant today. 1-877-736-1503 channelconsultant@enbridge.com *Rebate will be paid by cheque. Please allow 6-8 weeks for rebate processing. No rebate will be paid if builder completion form is not received by Enbridge by December 31, 2013, regardless of installation date. Enbridge Gas is not responsible for shipping delays or loss of builder completion form.

Table of contents

42 Columns 6 One Voice By Joe Vaccaro Changing of the tide 15 Human Capital By John Fox Costing the cleanup of contaminated land 19 Marketing By John Amardeil Panoramic views brighten a home 21 Health & Safety By Kathy Jurgens Keeping an open mind to mental health 23 Technology By Jason Parsons Tips for creating a virtual showroom 94 Outside the Box By Avi Friedman Reclaiming the neighbourhood street Departments 9 Ontario Report OHBA’s Annual Conference Niagara-bound 25 Top Shelf Putting the right tools in your hands 71 Better Building How to gain an edge...and save some time in the process 86 Product Focus Upgrading the bathroom and kitchen

www.ohba.ca

30 features

30 NAVIGATING NEW WATERS INtroducING OHBA PRESIDENT ERIC DENOUDEN

36 IT’S A SMALLWORLD, RIGHT? DEBATING THE TREND OF MORE EFFICIENTLY SIZED HOMES

42 STACKINGYOUR ODDS THE FUTURE IS LOOKING UP FOR TOWNHOUSES

48 PREPARING FOR THE WORST Determining if you are properly INSURED

52 THE SALE IS IN THE DETAILS SMALL THINGS CAN PUT THE HOOK IN PROSPECTIVE BUYERS

59 FIX IT NOW!

DEALING WITH NEW-HOME OWNER COMPLAINTS wisely

ontario home builder fall 2013

The official publication of the Ontario Home Builders’ Association Fall 2013 | Vol. 29 Issue 5

editor

Ted McIntyre, ext. 250 ted@laureloak.ca associate editor

Norma Kimmins, OHBA art director

Erik Mohr graphic designer

Tania Janthur copy editor

Barbara Chambers contributors

John Amardeil, Pat Brennan, J.P. Donaldson, John Fox, Avi Friedman, Tracy Hanes, Marc Huminilowycz, Kathy Jurgens, Elaine Kapogines, Steve Maxwell, Dan O’Reilly, Jason Parsons, Joe Vaccaro

24” Euro-Style Collection

PHOTOGRAPHY / ART

Tania Janthur, Margaret Mulligan PRESIDENT

Wayne Narciso, ext. 240 publisher

Sheryl Humphreys, ext. 245 sheryl@laureloak.ca advertising sales

Tricia Bird, ext. 223 tricia@laureloak.ca Cindy Kaye, ext. 232 cindy@laureloak.ca Published by

Laurel Oak Publishing www.laureloak.ca

For more information & products visit gebuilder.ca contact us at ccommercial@mabe.ca or 1-800-361-2500

www.ohba.ca

info@ohba.ca

Ontario Home Builder is published six times per year (Spring, Renovation, Summer, Fall, Awards, Winter). All rights reserved. No part of this magazine may be reproduced without the written consent of the publisher © 2013. Single copy price is $5.00. Subscription Rates: Canada $11.95 + HST per year, USA $29.95 USD.

A perfect fit.

Mail payment to: Laurel Oak Publishing 1062 Cooke Blvd., Burlington, ON L7T 4A8 Phone (905) 333-9432 Fax (905) 333-4001

Featuring: OHBAmagazine_GEEURO.indd 1

13-06-28 10:50 AM

CANADIAN PUBLICATION MAIL AGREEMENT NO. 42011539 ISSN No. 1182-1345

Interior • Exterior • Garden & Patio • Garage • Storm & Screen

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FAST EXCITING

one voice

Moving Forward Building upon past success By Joe vaccaro

photo: margaret Mulligan

Like many families across Ontario, my

wife and I ventured out for the annual backto-school family shopping adventure. Armed with new backpacks filled with a fresh supply of pencils, markers, crayons, glue sticks and clean pink erasers to correct those unintended, inevitable mistakes, my kids were both nervous and excited about their first day back to school. That ‘first-day-of-school’ feeling—that fresh start to the year—is something we experience each fall at the Ontario Home Builders’ Association as well. With the election of our new president and executive committee at our annual conference, we will welcome some new faces to join the experienced volunteers who enthusiastically drive and support our work. The work in the coming year will build upon the efforts of the enthusiastic and dependable leadership team of this past year led by President Leith Moore. Their hard work paid off with significant accomplishments for our industry, consumers and our association, including: • Advocating for building code changes to allow six-storey wood construction in Ontario. This opportunity has jumped from the back page on the government’s agenda to Page One. • Establishing industry-specific transition rules under the Endangered Species Act. • Approving and extending population and employment forecasts for the Growth Plan to 2041—a move strongly advocated by OHBA. • Participating in the National Advocacy

www.ohba.ca

Day on Parliament Hill on May 29—building on OHBA Past President Doug Tarry’s “Locals First” initiative and CHBA restructuring. • OHBA welcomed its 30th local association in 2013 with the formation of the Blue Water Home Builders’ Association. Thank you to Leith and his team for their energy and effort on these and other important items and for ensuring our new team led by incoming President Eric DenOuden can enjoy a smooth and successful transition. While the new team will no doubt face new challenges among the issues impacting the new home and renovation sector, a comprehensive work plan for the coming year will assist us in prioritizing and allocating resources, including the four big events hosted by OHBA: • Annual Conference – Sept. 22-24 in Niagara. OHBA celebrates our 50th anniversary! • Advocacy Day at Queen’s Park – Nov. 6, 2013 • Annual Industry Leaders’ Dinner to celebrate leaders in our industry, association and community – Jan. 27, 2014 • Builder and Renovator Forum 2014 (OHBA and EnerQuality) – Feb. 26-28, 2014 in Niagara Falls. Get to know Eric by reading his profile on page 30. As a builder from Eastern Ontario, he is a testament to the membership diversity that is so critical to OHBA’s success. Eric and the entire OHBA team are both nervous and excited about the challenges and opportunities that await us in the coming year. OHB

We will welcome some new faces to join the experienced volunteers who enthusiastically drive and support the work of OHBA. Joe Vaccaro is the CEO of the Ontario Home Builders’ Association.

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Ontario Report

And the finalists are… The finalists for the 2013 Awards of Distinction have been selected and the winners will be announced on Tuesday, September 24, 2013 at the Awards of Distinction Gala in Niagara Falls. This year marks OHBA’s 50th Anniversary and we are celebrating with a James Bond-themed awards night. So bring your martini glasses and your best 007 attire, because this is one celebratory event you don’t want to miss! Here are a few of this year’s finalists from the 34 categories of design, sales and marketing. Most Outstanding Production Built Home (Two storeys up to 2,500 sq. ft.) Eastforest Homes Ltd. for: Baden Country Estates – “Wentworth II” (Baden) Great Gulf Homes for: Rolling Meadows – “The Erie - T424” (Niagara) Mountainview Homes for: Harvest Estates – “Sundance” (Welland) Most Outstanding Custom Home (2,501-5,000 sq. ft.) David Small Designs for: David's House – “Custom” (Mississauga) Schuit Homes Inc. for: Perth Park – “Perth Residence” (Ancaster) Steve Snider Construction Inc. for: Lunau Residence – “Lake House (R2000)” (Durham Region) Most Outstanding Home Renovation (Client Cost $100,001 – $500,000) Decksterity Carpentry Cont. Ltd. for: “Home Renovation” (Richmond Hill) Traditional Styles for: “Balsam Lake Addition & Renovation” (Coboconk) Windrush Hill Construction for: “Next Generation” – (St. Catharines) Most Outstanding New Home Kitchen Christopher Simmonds Architect Inc.for: “Zen Barn” (Ottawa) Chuck Mills Residential Design & Development Inc. for: “Broadmoor Kitchen” (Ottawa) David Small Designs for: David's House – “Custom” (Mississauga)

Project of the Year – Low-Rise Aspen Ridge Homes for: “Kettle Lakes Club on Bayview” (Richmond Hill) Geranium Corporation for: “Forest Trail Estates” (Whitchurch-Stouffville) Great Gulf Homes for: “King Oaks” (York Region) Project of the Year – High- or Mid-Rise MOD Developments Inc. for: “The Massey Tower” (Toronto) Monarch Corporation/The Goldman Group for: “Picasso on Richmond” (Toronto) Tridel Corporation for: “TEN YORK” (Toronto) Ontario Home Builder of the Year The Minto Group (Toronto/Ottawa) Reid’s Heritage Homes (Cambridge) Tridel Corporation (Toronto) For a full list of finalists please visit ohbaaod.ca or call the OHBA office at 1-800-387-0109. Projects will be profiled in the special 2013 Ontario Home Builder magazine Awards issue. Don’t be disappointed—order your Awards of Distinction gala tickets today!

Best Low-Rise Ad Campaign Georgian International Build Corp. for: “Windfall at Blue Mountain” (Collingwood) The Minto Group for: “Orchard Park” (Stouffville) Sifton Properties Limited for: “RiverBend Ads” (London) Best Interior Decorating —Model Home/Suite (2,001 sq. ft. and over) FarSight Homes for: “Greenfields” (New Tecumseth) Geranium Corporation for: “Cardinal Point” (Whitchurch-Stouffville) Preston Group for: Preston Homes: Copper Hills Phase 3 – “The Preston Model” (Newmarket)

www.ohba.ca

ontario home builder fall 2013

Ontario Report

A conference you won’t want to miss! Join us in at the spectacular Fallsview Casino Resort in Niagara as OHBA celebrates its 50th Anniversary at our Annual Conference, September 22-24. Jam-packed with programming, this three-day event includes a solid lineup of informative and engaging business sessions along with some fun-filled activities and the opportunity to mix and mingle with industry professionals and colleagues from across the province. The business sessions and high-profile speakers include: Premier of Ontario, The Honourable Kathleen Wynne Tim Hudak, MPP (PC) Leader of Ontario’s Official Opposition Mike Strange: Three-Time Canadian Olympic Boxer promises to inspire, motivate and challenge us all as our keynote luncheon speaker CTV’s Ramsin Khachi: New Industry Trends and Products EnerQuality: Building Better Buildings: A Look at the New Building Performance Project Tarion update, the latest from CMHC, Institute of Building Excellence and more!

The Gala Events The glittering President’s Reception and Gala thanks OHBA’s outgoing President Leith Moore and welcomes Eric DenOuden as 2013/2014 President on Monday, September 23. The OHBA Awards of Distinction Gala will be “shaken, not stirred,” as we celebrate the best of the best in our industry awards with a fun, retro-James Bond-themed evening. We expect to sell out, so don’t delay in booking your tickets.

And as always – the fun stuff: Our amazing hosts, the Niagara Home Builders’ Association will start us off on the evening of Sunday, September 22 with a “Margaritaville” party. So resurrect that Hawaiian shirt for a fun night! And…lots of great activities to choose from on Monday, September 23, including: Golf at Thundering Waters Golf Club, a John Daly Signature Course 40- 60KM Wine Country Bike Ride for Charity Historic 1812 Walking Tour through the charming, picturesque town of Niagara-on-the-Lake Visit www.ohbaconference.com to register!

ontario home builder fall 2013

It was a packed house at this summer’s Building Industry and Land Development Association annual charity barbecue. The event combined with the Association’s annual Race for Humanity scavenger hunt to help raise more than $36,000 for Habitat for Humanity Toronto.

BILD charity BBQ supports Habitat for Humanity Close to 600 builders, developers and sales and marketing professionals gathered at the Building Industry and Land Development Association (BILD) office grounds this summer in support of Habitat for Humanity Toronto. Over $36,000 was raised for the charity this year through the Association’s annual Race for Humanity, an award-winning scavenger hunt for industry professionals, and charity BBQ. The combined events celebrate BILD’s decade-long partnership with Habitat for Humanity Toronto, which saw the Association support the construction of 10 homes for 10 families. “This wonderful partnership is just one example of the industry’s commitment to making the GTA a better place to live through volunteerism, philanthropy and sponsorship,” said BILD President and CEO Bryan Tuckey. “I’m excited to be a part of this celebration today, and I feel privileged to work in an industry that gives so much to the communities that we all live in.” BILD members have raised more than $570,000 for the charity since 2003.

www.ohba.ca

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Ontario Report

Province Launching Consultations The provincial government has announced its intention to launch consultations on Ontario’s landuse planning system (the Planning Act) and growthrelated infrastructure financing (Development Charges Act). OHBA chooses to see the opening up of both Acts as an opportunity to have a factbased discussion about how Ontario’s lengthy and complex planning system is challenging housing affordability and adding costs of new communities for Ontarians. Increasing prices for housing is negatively impacting the ability of Ontarians to purchase appropriate housing to suit their needs and is limiting opportunities for economic growth while reducing our competitiveness with other jurisdictions. Join us at the OHBA conference in Niagara Falls to learn more about OHBA’s position and plans to participate in these upcoming consultations that will impact the industry and communities across Ontario.

Tarion Wins Excellence in Governance Award Congratulations to Tarion Warranty Corporation for win-

ning the Excellence in Governance Award in the category of “Best Approach to Board and Committee Support” from the Canadian Society of Corporate Secretaries. The award is based on the processes and procedures put in place to ensure the most effective operation of the board and maximization of governance and strategic oversight functions. The panel of expert judges looked at things such as board and CEO evaluations, director education, mandate reviews, succession planning, on-boarding procedures, talent management and management of board materials. “I’ve always been supportive and proud of Tarion’s governance policies and procedures, but to be recognized as the leader by a panel of expert judges is truly an honour,” said Tarion President and CEO Howard Bogach.

Correction

In the OHBA Anniversary story that ran in our Summer 2013 issue, we incorrectly listed the founding dates for three of our locals. Here are the correct dates: Greater Dufferin HBA: 1988 Durham Region HBA: 1953 Greater Ottawa HBA: 1951

ontario home builder fall 2013

Better Built Homes Forum

On October 31, EnerQuality is hosting a one-day technical builder forum and manufacturer trade show at the Old Mill Toronto. The Better Built Homes Forum will be an interactive day packed with practical sessions that will help prepare builders for the next generation of housing programs, future code changes and beyond. This event is a must for those wanting to examine the future of home building in Ontario! Highlights this year include: Speakers Dr. John Straube of Building Science Corporation and Gord Cooke of Building Knowledge Building for the Future: Building and marketing Net-Zero Energy Homes Interactive breakout sessions with leading building science experts that will help builders determine practical building solutions Best practices and case studies for the most common high-performance building issues Advanced technology discussions and manufacturer trade show Register today for special HBAmember pricing! For more information on the event, exhibiting or to register, please visit enerquality.ca or contact Amina at (416) 447-0077 or amina@enerquality.ca.

2013 CMHC Housing Outlook Sessions: Profiling the Echo Boomer Canada Mortgage and Housing Corporation (CMHC) is presenting five Housing Outlook Sessions to provide timely and reliable forecasts and analyses designed to assist you in making informed decisions for your business. The 2013 events will provide you with leading edge expertise that focuses on the profile of the Echo Boomer generation and their effect on local housing market trends in your community. For further information and to register call 1-800-6682642 or visit chmc.ca/ conferenceregistration.

London HOS (Best Western Lamplighter Inn) Thursday, October 31, 2013 Ottawa HOC (Ottawa Conference and Event Centre) Thursday, November 7, 2013 Toronto HOC (Metro Toronto Convention Centre) Tuesday, November 12, 2013 Hamilton HOS (Royal Botanical Gardens) Tuesday, November 19, 2013 Waterloo Region HOS (Bingemans) Wednesday, November 27, 2013

www.ohba.ca

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human capital

Would you like tomatoes with that development? How to cost the environmental process By John Fox Buying contaminated land to develop

housing gives you a different perspective on environmental due diligence. The basic emphasis shifts from a liability analysis to an economic and a regulatory one— from “What’s my exposure?” to “What do I have to do to get a building permit?” In a situation where the land is being changed from a less to more sensitive use— e.g., from industrial to residential—the Environmental Protection Act requires the developer to file a Record of Site Condition (RSC) with the Ministry of the Environment (MOE) before a building permit can be issued. This filing, sometimes called Regulatory Closure, is a key moment in the development process. There will still be things to worry about, including tomatoes www.ohba.ca

(I’ll get to that shortly), but builders can at least now predict the development’s timing and costs as though the land were clean. Taking ownership of a contaminated site involves risk. Owners, as well as their directors and officers, are potentially liable for remediation costs where contamination exceeds MOE limits, or if contamination is migrating to a neighbour’s property. Step One in managing that risk is to get all the info you can about it. The right to conduct environmental investigations should always be a condition of your purchase. That means your choice of consultant matters. There are four things I look for in a consultant. First, can they carry the file right through to Regulatory Closure? The more complex the submission, the higher

the level of qualification required. I don’t want to change horses halfway through. Second, I don’t want them to sell themselves by disrespecting the MOE. That’s not the attitude you want in the room when you have to problem-solve with those same officials. Third, can they speak science to scientists and English to the rest of us? The ability to translate the science into something comprehensible to you, the Ministry, your lenders, the local community and anyone else is valuable. And finally, will they prepare a reasonable budget and schedule that can be used to keep them accountable? Your consultant will soon come back with the results of their work in the form of Phase 1 and Phase 2 Environmental Site Assessments. The form of the ESAs is mandated by the regulations. The big pile of paper you will get is not your consultant’s fault, but they should go further than just hitting the regulatory requirements. Have your consultant complete their due diligence with a view to how the RSC is best achieved—through remediation or risk assessment. The consultants have to be active members of your advisory team and should have an eye to the end game. Once the ESAs are completed, the hard part begins. The owner has to decide how best to get to Regulatory Closure and how to manage the legal risks. Assuming the ESAs have not disclosed contamination so bad that it makes no sense to continue, the analysis will turn to how best to get an RSC. There are two ways. First, you can clean the property to the generic standards established and published by the MOE. This “Generic Clean Up” usually means lowering contaminant levels through active remediation, like vacuuming out contaminated groundwater or digging out soil and taking it to a licensed waste disposal site. The good news is that the RSC is signed and filed by your consultant, who essentially is certifying the condition of the site for the MOE. It’s now in your control. The bad news is that it can explode your pro forma. Second, you can prove to the MOE that, though there is contamination, there is no “pathway” that connects the contaminant to a “receptor” (animals, plants or people). The MOE then effectively allows you to set a less stringent standard for your particular site. Since the existing condition meets this new standard, there’s no need for active remediation. However, your ontario home builder fall 2013

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development plan may have to include “risk management measures” (RMMs) intended to block pathways, such as building a parking lot over contaminated soil to keep it from blowing around; building a vapour barrier and ventilation system to prevent potential vapours originating in groundwater to get into your building; preventing the planting of certain types of plants (like tomatoes, which can suck up contaminated groundwater and turn it into an edible pathway); or prohibiting ground-related residential units. Unlike the Generic Clean-Up, there is much less control for the developer over this process. The MOE must approve the Risk Assessment, a process that’s supposed to take about six months once the forms are filed, but in practice can take much longer. The decision to go down one path or the other isn’t easy. If you remediate, the costs can escalate quickly. The fees for taking soil to a waste disposal facility, for example, tend to range from $45 to $55 per ton for trucking and disposal. That adds up fast. Making a snap decision to get rid of two metres of soil across a four-acre site, for example, carries with it a $500,000 price tag. You need to consider: Is all the soil contaminated? Can it be remediated on site and reused? Can it be relocated? On the other hand, if you pursue a Risk Assessment, you’ll face added time to market, the incremental cost to your construction program to build RMMs, post-closing monitoring obligations and, of course, the impact on marketing resulting from banning the common tomato! As the due diligence date approaches, owners need to look forward and estimate the costs of getting to Regulatory Closure. Use your team, including the lawyers, consultants and construction experts, to build a risk-and-cost profile that works for you. This will include some contractual risk allocation, insurance to deal with environmental risk (such as cost-cap insurance) and estimating the cost of each option. There is no magic formula that yields just the right cost number for your pro forma, but by working through these questions, you can set your budgets and contingencies with open eyes and, hopefully, keep the tomatoes on the vine. OHB John Fox is a partner in the real estate department of Robins Appleby & Taub LLP; jfox@robapp.com.

www.ohba.ca

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Let the sun shine in Integrating outdoors and indoors By John Amardeil In our quest to sell more Ontario homes,

we are facing an increasing number of challenges. Satisfying consumers who want more for less is one of these challenges. Gone are the days when homebuyers would settle for homes that were virtually indistinguishable from those of their parents. Today, even those on a budget expect unique interiors and exteriors, much the same way Hyundai drivers want a stylish look that won’t set them back a whole lot of money. That’s not all, though. Homebuyers also want homes that reflect their lifestyle, thanks to features like open floor plans, which are a better fit for today’s notion of casual living and entertaining. The question then is: How do we do this? How do we design, market and build homes that satisfy today’s consumers by giving them more for less? How do we delight them? More important, how do we do that so that the final product remains affordable, at least by Ontario’s standards? The British have a seemingly surprising www.ohba.ca

fondness for convertible cars. But in a country with such cloudy, rainy weather, why on earth would anyone get a convertible car? I for one think it makes perfect sense. After all, if you only have a few sunny days throughout the year, there is no better way to make the most of them than to drive a convertible, the sun on your face, the wind in your hair. By the same token, we should not let our cold climate prevent us from enjoying the outdoors year round—not even when we’re at home. One solution is to bring the outdoors inside the home. After all, research indicates most of us find fresh air and greenery relaxing. Many a smart developer and architectural firm have already found that indoor green spaces and an abundance of natural light increase productivity and reduce stress. It’s not a stretch to assume the same will hold true in the case of homeowners; in fact, many of them are already looking for ways to bring the outdoors inside, as attest the numerous online articles, magazine features and blog posts about this topic.

Assuming that today’s consumers want to extend their living environment to the outdoors, enhancing the ability to move from inside to outside will create a seamless, increased living space—plus it lets us enjoy the outdoors without stepping out the door. So why aren’t more local homebuilders listening? Is it because of our climate? My experience shows you don’t need to own a house in sunny California to appreciate an integrated outdoors/indoor space. Neither do we need to rely on expensive features like rooftop gardens, sliding glass walls or indoor pools. Instead, we can blur the dividing line between indoor and outdoor living spaces by designing family and breakfast rooms with either big sliding doors or folding doors that help expand indoor space to outdoor space. We can also add super-deep windows on the ground floor—all the way down to floor level. Not only do these changes mean homeowners will get more light, a better view and enhanced indoor/outdoor living, they will also get the ability to seamlessly move from inside to outside as a single life space. That’s why some builders are using 8’ patio doors instead of 5’, which greatly enhances breakfast rooms. Going further still, Brookfield Residential (Ontario) launched the Panorama View Window in their Fieldstone community in Mono, which had a great opening last winter and has done very well since. Running along the rear wall in the kitchen, the Panorama View Window affords an excellent view and lets in loads of light. In all my years in the industry, I haven’t seen many homes around with such an expansive window—and definitely none in Fieldstone’s price range. I’m positive the Panorama View Window played a big part in helping sell as many homes as we did during the opening weekend. Going back to the original question of how to design, market and build homes that satisfy today’s demanding consumers, the solution, as with many marketing challenges, lies in putting yourself in your homebuyer’s shoes—in giving them what they even didn’t know they wanted. Fresh air, a nice view and an outdoors integrated with the indoors isn’t a bad place to start. OHB

John Amardeil is the president of BAM Builder Advertising and Marketing and has marketed and sold over 25,000 new homes. ontario home builder fall 2013

2854 builders were asked this question in 2012:

Which insulation has the best quality? Their answer:

spray foam insulation The evolution of insulation.™

Source: 2013 Hanley Wood/ReadEx Builder Brand Use Study.

Icynene is ranked #1 by builders for product quality across all types of insulation according to the 2013 Hanley Wood/ReadEx Builder Brand Use Study. In the most recent survey, 2854 builders were asked which insulation had the best quality. Icynene was ranked in first place, ahead of other internationally recognized competitors. Builders trust Icynene because it is specifically dedicated to spray foam insulation solutions, with the highest standards for building science research, product quality and innovation.

The evolution of insulation.™

Find your local Icynene contractor online, visit www.icynene.com or call 1-800-758-7325.

Health & Safety Explicitly include mental health and psychological safety in existing health and safety approaches for hazard identification, risk assessment and risk control.

Mind control

Employers should consider the mental health of their employees as much as their physical safety By Kathy Jurgens Workplace mental health is costing the

Canadian economy billions in lost productivity, and the home building industry is not immune. From the Canadian Mental Health Association’s (CMHA) perspective, it’s not just business losses at stake, but the large social and individual human cost. Stress-inducing concerns are brought on by competition, a tight economy, increasing construction fees and countless other forces at play. However, one thing that is in our control is the ability to collectively improve our attitudes toward mental health in the workplace. Reducing the stigma associated with mental illness is a hugely important issue and we are educating employers to take a close look at the newer concept of psychological safety. Organizations need to ask at all levels, right down to the frontline employee, “How can we improve psychological health and safety in our workplace?” It’s a new question for many, one that many fear asking out of a lack of understanding and awareness. Yet finding solutions to the issues that impact psychological health and safety are critical. Regardless of the motivator, whether from a www.ohba.ca

business, legal, health or social perspective, solutions are never one-size-fits-all. To help guide employers, Canada has launched a new voluntary National Standard of Canada for Psychological Health and Safety in the Workplace, available free of charge to all Canadian employers. It also provides complementary information in the extensive annexes. There are some key areas all employers should address: 1. Management training: This ensures that any role including employee leadership, supervision or support requires a minimum standard of interpersonal competence and an understanding of the responsibility to ensure a psychologically safe workplace. 2. Mental health and illness awareness:

Providing education and information to all staff on a regular basis has the potential to reduce stigma and increase the ability to respond in a supportive manner to coworkers who may be struggling. 3. Policies, programs and procedures:

Review and revise existing policies, with consideration of the potential impact on psychological safety. 4. Embedding in occupational health:

As an employer, manager or supervisor, it is not your responsibility to diagnose a mental health problem. However, being aware of the signs is important. Mental illness includes a broad range of symptoms and behaviours, and it is not easy to determine whether someone is actually mentally ill. One key indicator is that someone may begin to act uncharacteristically—an energetic person may seem lethargic for a considerable time, or a mild-mannered person may make grandiose claims about their abilities. Behaviour changes such as these may reflect personal difficulties that may be resolved quickly. They may be signs that the person is no longer happy in their job. But they might also indicate that the person is experiencing a mental health problem that goes beyond being stressed-out and that requires professional help. There are a number of warning signs that can indicate a mental health problem, such as: consistent late arrivals or frequent absences; lack of cooperation or a general inability to work with colleagues; decreased productivity; increased accidents or safety problems; frequent complaints of fatigue or unexplained pains; difficulty concentrating, making decisions or remembering things; working excessive overtime over a prolonged period; expressions of strange ideas; or displays of anger. It is important to emphasize that people behaving in these ways may be simply having a bad day or week, or may be working through a particularly difficult time in their lives that is temporary. A pattern that continues, however, may indicate an underlying mental health problem. If an employee’s behaviour is a workplace problem, talking to them privately in the context of their workplace performance may help you determine whether mental health is a factor. You may be able to encourage the individual to get help and/or request appropriate accommodation while they deal with their mental health issue. OHB Kathy Jurgens is the national program manager for Mental Health Works, an award-winning workplace training program of the Canadian Mental Health Association. Mentalhealthworks.ca ontario home builder fall 2013

technology

Tips to create a virtual showroom

Creating a virtual showroom for the design and development process can help your renovation firm lower costs, increase efficiency and improve client satisfaction By Jason Parsons In the renovation sector, lowering costs,

increasing efficiency and improving client satisfaction usually top the list of company goals. By incorporating a “virtual showroom” for the design and development process, we have been able to address all of these goals with our clients. The use of 3D design, web meetings, social media platforms and online stores make all this possible. Virtual showrooms do not eliminate the face-to-face contact that is still necessary in remodelling sales, but they enhance the buying experience when professionally orchestrated. Development and construction agreements will always require face-to-face meetings.Here are some tips to starting your virtual showroom: www.ohba.ca

Virtual Pinboards: Pinterest and Houzz, specifically, are online resources that do more than just display your projects and increase SEO. Homeowners can scroll through an endless array of project pictures and pin what they like best. These sites also open up the discussion of cost for “wish list” items and will help establish a realistic budget. We find a candid discussion about these items early in the design process makes for a more pleasant experience during construction. We encourage our clients to research these websites before our initial meeting and share their accounts with us for development. Virtual Meetings: We use GoToMeeting software to hold online meetings with

our clients during development. This useful tool allows us to reduce the need for night and weekend meetings. In addition, meeting on the web allows us all to be in different locations at one time. We can be at a jobsite while a husband and wife are each on lunch breaks from work, or when a child is napping. The meetings can be recorded and reviewed so no items are missed, and notes are not required. Virtual Reality: Chief Architect software allows us to create photorealistic 3D designs that assist homeowners in their selection process. In conjunction with GoToMeeting, we review preliminary floor plans with clients to ensure we are on the right design path. Once they are set, we can add the design and colour elements shared through Pinterest and Houzz, and present a portfolio of colour images that depict how their home is really going to look. We have found that an improved visual element in design has increased our conversion of development agreements to construction agreements. In addition, add-ons like upgraded trim and lighting packages can be sold during development. This makes a more efficient production process by minimizing change and schedule alterations. Virtual Stores: You can create online stores directly on your website for clients to purchase products. You can partner with suppliers or global commerce sites to create product lists. This is a new area that we are developing for 2013, but we are already seeing the benefits it is creating. It speeds up the shopping and selection timeline by eliminating travel to stores, and we can have better control over product selections and lead time while creating a supplemental revenue stream. Virtual Design Team: You may like the idea of adding these virtual elements to your business but do not have the financial resources to purchase the software and provide additional staffing and training. If this is the case, you can consider outsourcing. We provide these services on a perproject basis without ever visiting the jobsite or your office. The cost for the service is added to the project and not company overhead. OHB

Reprinted from Professional Remodeler and housingzone.com with permission from SGC Horizon. ontario home builder fall 2013

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Ooh la lock!

Schlage’s Decorative Collections have married the company’s renowned quality and dependability with more than 1,000 customized design and finish combinations, enabling homeowners to cater to personal tastes and their homes’ individual styles. The various well-priced collections include coordinating handlesets, deadbolts (interior and exterior), as well as all functions of knobs and levers, with styles ranging from traditional and contemporary to transitional and ornate. Schlage.com

Clearing a winter path

EasyHeat’s Sno*Melter Cable Kits are simple to install, energy-efficient and environmentally friendly, offering safe, reliable snow melting in driveways, sidewalks, patios and stairs. The kits are available in sizes that cover from 10 to 100 square feet with just a single cable, and can be configured to fit unique shapes for simple custom installations with a cost-effective, off-the-shelf product. Businesses and homeowners, meanwhile, benefit from safer walkways and lower insurance rates. The dual-element, fixed-resistance cables are UL Listed and CSA Certified. To accommodate larger commercial jobs, multiple cable kits can easily be combined. Easyheat.com Grabbing a quick shower

Schluter-Systems has developed four prefabricated and completely waterproof shower niches that are ready to tile. Made of Schluter-KERDIBOARD, they are completely compatible with surface-applied waterproofing systems, such as the Schluter shower assemblies. Schluter.com

Irwin makes an impact

Professional tradesmen now use impact tools 30% of the time they’re employing drills or drivers, and the number is growing. While most accessories currently marketed for that line of work are merely compatible with impact power tools, Irwin’s new Impact Performance Series line of screwdriving bits, nutsetters, socket adapters and bit holders is engineered specifically for use in impact tools. The entire line has a 1/4" quick-change shank that’s designed to work with all types of impact drivers and rotary drills. Irwin.com

www.ohba.ca

ontario home builder fall 2013

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Royal seal

Royal Building Products has added 8” cedar shingles to its Portsmouth line. Available in 21 colours and wind-resistant up to more than 250 km/h, the seamless design retains a natural cedar texture without requiring maintenance—no rotting, cracking, splitting or degrading. They can also be combined with other materials such as stone and clapboard to vary the design. experienceroyal.com

Chilling out

Range of options

With the innovative Flexible Installation System (FIT), builders and contractors can now seamlessly fit Whirlpool, KitchenAid and Maytag wall ovens into current cabinet cutouts. The system combines internal, adjustable “feet” and two trim options to ensure an easy wall oven installation and replacement process, helping to solve one of the industry’s most challenging issues. There’s also an added Fit Guarantee for builders and contractors to offer their clients.

Goodman central air conditioners feature a SmartCoil 5mm condenser coil that optimizes the heat transfer properties of R-410A refrigerant. The company also provides an array of complementary indoor air quality components, including products and systems for air filtration, ventilation, humidification and UV purification. goodmanmfg.com

Whirlpoolappliances.ca

Filling in the loose ends

RockFill, Roxul’s premium loose fill insulation, allows you to top up existing attic insulation without renting an insulation blower. This loose stone wool  material can be easy applied by hand on top of existing attic insulation, filling in spaces around ducts, wiring and piping. It’s also designed to remain stable and not drift, ensuring upgraded thermal protection. Designed for grab-and-go projects, Roxul’s RockFill packaging is easy to handle and small enough to fit in a car, unlike traditional batts of insulation. It’s also fireresistant, moisture repellent and sound absorbent. roxul.com

ontario home builder fall 2013

www.ohba.ca

It’s the moment someone realizes you’re not just another painter. When she walks into the room and

she sees on the wall what she saw in her mind and smiles. Because it looks even better. And what she doesn’t see_the top of the door,

For everything that matters, there’s a rich, enduring, true paint. And a colour for wow.

The colour and quality preferred by your clients. The dependability and durability preferred by you. benjaminmoore.ca

the bottom of the sill_ is perfect, too.

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Great slate

The new TruSlate colour line from GAF, North America’s largest roofing manufacturer, includes five Vermont slates, and the International Collection, which offers three international choices. All are ASTM C406-S1 rated—the highest rating for quarried roofing slates. Known for their performance, quality control, reputation and unique colours, the Vermont-sourced line ranges from Meadow Green to Antique Purple. The International Collection includes Greystone, Mystic Grey and Onyx Black. Property owners can select one colour for their entire roof or can mix and match for a unique-looking roof. GAF.com

The best railing you never saw

Panorama Post, a powder-coated railing and fencing system for residential and commercial applications, features rounded glass channels that allow for a 60° angle variance so you can adjust to the shape to virtually any space—even if you need to “bend” your glass around a corner. Options range from traditional surface mounts to fascia mounts. Tempered glass panels can be clear for view-through railings, frosted for privacy, or any combination of both. You can even opt for extended glass height to provide a wind or privacy screen. durarail.com

Taking the pressure off

Part of Woodford’s line of freezeless wall faucets, the anti-siphon-protected Model 19 features a powder-coated, die-cast-aluminum oval handle, as well as the company’s patented, resetting, anti-burst pressure relief valve. CSA- and cUPC-approved, each is sold with a limited five-year warranty against defects in material and workmanship. In addition, Woodford will pay up to $5,000 toward the cost to repair damages incurred as a result of a defective model. Woodfordmfg.com

ontario home builder fall 2013

www.ohba.ca

ontario home builder fall 2013

www.ohba.ca

Navigating new waters Incoming President Eric DenOuden is set to steer OHBA and launch a charitable challenge By J.P. Donaldson PHOTOGRAPHY BY TANIA JANTHUR

www.ohba.ca

ontario home builder fall 2013

Eric’s introduction to the Ontario home building world began with an invitation to the Quinte Association in the late 1980s. “I went as a guest and never left.” 32

ontario home builder fall 2013

www.ohba.ca

He owns an 11-acre island with a picnic table, an outhouse, and goats to keep the vegetation under control. He once ran for political office. He’s been married 33 years, has seven children ages 19 to 30, 10 grandchildren and two more on the way. He spends a good part of every summer living on his boat, exploring the waterways of Eastern Ontario. And he’s travelled the world volunteering on humanitarian builds. “He” is incoming OHBA President Eric DenOuden, founder and President of Hilden Homes, an award-winning builder in the Quinte area. Known for its diverse selection of rural/municipal lots, locations and home designs throughout the region, Hilden is a regular recipient of Tarion’s Award of Excellence for customer service. “With more than 1,000 homes built, we’ve never failed to meet a closing date,” says Eric. “Our company was founded on the belief that your home is an integral part of your life. People deserve the security of a home built to the highest standards in quality and design, constructed by professionals with proven building experience.” The son of Dutch immigrants, Eric says building is in his blood. “My Opa (grandfather) owned a construction company in the Netherlands. Many of my cousins and uncles were in that line of work, and my father was a cabinetmaker. I would help him out at times, and whenever I saw a house under construction, I was interested in the process. I realized at a very young age that building a home involved many talented individuals, from the designers to the dozens of skilled trades who transform their plans into reality.” With the exception of obtaining a diploma as a civil engineering technician at Sir Sandford Fleming College in Peterborough, Eric has always lived in the Quinte area. So it stood to reason that he would come back to the region, marry his high school sweetheart, Toni, and build his first house. “Let’s clarify that. I hired the right people to build our house. I’ve never been a micromanager and I’ve never been a workaholic. I believe in delegating responsibility and trusting the experts in their respective fields to do their job.” It wasn’t until the DenOudens had moved into their second house that Eric decided to start his own home building company. In 1985, he and a partner founded Hilden Homes. “I’d worked for some engineering firms and I had a management and design background, although, in retrospect, we were very young and quite naïve. But we hit the market at a good time and www.ohba.ca

by the end of 1986, we’d built 20 houses, all geared toward the first-time buyer.” In 1989, Eric bought out his partner and for a while everything was going according to plan. “We’d kept our overhead low, diversified by spreading into three communities and really concentrated on efficiencies in design and construction. And then the 1990s came, and with it, recessionary times. Interest rates increased and land values dropped. Banks were changing their lending practices and calling in loans, and Hilden Homes was not immune. Fortunately, we weren’t overly leveraged and we survived. But I also learned a valuable lesson, one that I’ve never forgotten to this day: Never let a bank control your company.”

The journey to OHBA president Busy balancing business with the needs of a young family in the late 1980s, one of Eric’s tradespeople invited him to a meeting with the Quinte Home Builders’ Association. “I went as his guest and never left. I was impressed with the networking and it was great to spend time with like-minded folks. For me, at that time, it was my monthly social night out. Then, about nine years ago, the deputy police chief did a presentation on something called Children’s Safety Village—Belleville. The idea was to build a village with small buildings, detailed roadways, traffic lights, operational railway crossings, mini vehicles and bicycles, along with an instructional classroom to teach road safety and personal safety to children in Grades two, three and four. As the father of seven, it was an initiative that resonated with me. A month later, I became project chairman.” That involvement gradually deepened. “I became a presidential appointee in the Quinte HBA, and as I moved through the ranks, including serving as the Quinte Association president, I started attending provincial board meetings. I have to admit there was a time when I’d first joined the local chapter that I ontario home builder fall 2013

At left, Eric’s desire to build a better life for those around him is reflected in his Uganda visit with 11 other volunteers, where he is seen working on a community centre and awaiting a ‘home-cooked’ meal. Top right, Eric’s first project with his mother and Opa (grandfather). Bottom right, high school sweethearts Eric and Toni DenOuden share a laugh.

wondered if there was value in belonging to the provincial association. But over time I became more and more impressed with OHBA’s mandate, the way they work with all levels of government to showcase the importance of the residential housing industry to our overall economy. We all want the same thing: good quality, energy-efficient housing in well-planned communities, but OHBA makes it clear: we are the experts and we want governments to respect our position and to understand the impact on the bottom line before adding another layer of cost.” While Eric’s personal experience as a builder involved in the Associations has been rewarding, he understands sitting in boardrooms hashing out ideas isn’t for everybody. “That said, the more heads we bring to the table, the more we’re able to think 34

ontario home builder fall 2013

three -and four-dimensionally, and the better the outcome.” Eric is also quick to point out that getting involved at the local or provincial level isn’t just for builders. “We really need individuals from a cross-section of our industry: renovators, suppliers, developers, trades and professional people. Just because you’re not a builder, don’t think we don’t need or want you to get involved. Each of us has a passion. That diversity can lead to greatness and to making sure we remain a vibrant part of the province’s and country’s economic future. As an industry and a business, we can’t just pick up and move to another country to reduce our costs and overhead. Unfortunately, every level of government and every bureaucracy seem to view that as an invitation to tax us in some manner. Consider the legislation www.ohba.ca

under Bill 119 and the impact on WSIB rates as an example. These complex policies and procedures may work for a megabuilder with a huge staff, but they may also drive a smaller company out of business or even underground. Development charges are another open ticket, one that drives the costs of all homes in the province, not just new homes. Ontario has some of the best housing in the world, but at what cost? It’s rapidly becoming unaffordable, and that’s with record low interest rates. Our job is to advocate and educate, to stop, or at the very least, slow down new fee structures and unnecessary bureaucracy, and to remain ever vigilant in protecting not just the big builder in large centres, but the small builder in communities across the province.” One way to do that, Eric believes, is to communicate with the local associations, and continue on with the “Locals First” initiative. “We have to get out to the local communities so we understand their regional needs. We’re also going to continue to provide educational opportunities, and to raise the bar for the educational component for builders. The 2014 Building Code is right around the corner.” Growing RenoMark is also high atop Eric’s mandate as president. “Renovation is a growing component of the Association, and it’s a market we are watching carefully. We want the consumer to be protected, and the best way to do that is to continue to raise the profile of the brand, and to stress to homeowners that RenoMark members are honest, reputable, insured professionals—that they are the better alternative to the cash operator. We’re also encouraging the government to provide a consistent renovation tax credit.”

Making a difference Two of Eric’s favourite things are travel and giving back. “Throughout my career I have helped local business and community ventures, but I have also had the opportunity to travel the world doing different charitable works in many underdeveloped countries, from Sierra Leone to the Dominican Republic. One of my favourite memories is a trip to a remote part of Uganda, where, as part of a team of 12 volunteers, I worked with local Ugandans who were in the midst of building a community centre, albeit very slowly due to a lack of funding. “Our team’s mandate was to expedite the project by providing both physical labour and expertise, as well as the financial resources to purchase materials. This isn’t as easy as it might sound on the surface. There is an abundance of clay, and so they could make their own bricks. But other supplies, such as nails and wood, aren’t readily available; there’s a lot of improvising and innovation to get something done. “The biggest lesson learned, however, is how much North Americans take our conveniences for granted. In Uganda, everyone [including our team] lived in mud huts with grass roofs, and the community was without running water, electricity or refrigeration. To bathe, you had to walk a few miles, put water in a cup and heat it over a coal fire. The market had www.ohba.ca

limited selection and the food was bland and repetitive. If you had goat for dinner one night, you could expect to have some sort of leftover goat dish the next. I can remember, when I got back to civilization, how good it felt just to order a cold beer and a salad with salad dressing. “People ask me, ‘If it’s going to cost you $3,000, why not just send them a cheque?’ Beyond the very real possibility of corruption—there’s little guarantee all the money slated for a particular project will make it there—I believe it’s also important to show we actually care. Actions and hard work always speak louder than money. Certainly at the end of the day there is a tangible benefit to them, but for me the life experience of living within a different culture, not as a tourist, but as a part of a community, is invaluable. The rewards are internal; for one, you learn to appreciate cultural diversities. “I really applauded Past President James Bazely’s 2011 Humanitarian Build, not just because we did a good thing as an association, but because it proved, once again, that there is strength in numbers, and that together we can make a difference.”

50 Good Deeds It’s the desire to give back, pull together and gain recognition that prompted Eric to come up with a new province-wide initiative: Celebrating 50 years with 50 Good Deeds. “OHBA begins its second 50 years in 2014. Our members come from 30 local associations, from small towns to big cities and everything in between. They live, work and play in their respective communities. And I’d venture a guess that most, if not all, of our locals give back in some way. It isn’t always about money; often it’s about lending our talent and abilities or assuming a leadership role in a project. It could be helping a local church get a new roof, or building a playground at a neighbourhood park, or sponsoring a charitable running event. But we aren’t always very good at promoting our good deeds. It’s just something we do.” That’s where the 50 Good Deeds comes in, Eric explains. The campaign will be officially launched in September at OHBA’s Annual Conference in Niagara with a charity bike ride. OHBA will also be asking the local HBAs to contribute to meet the objective of 50 charitable projects to celebrate OHBA’s 50 years as an organization. In turn, OHBA will assist by supporting locals with their promotion of their charitable project with media at the provincial, regional and local levels. “Ontario’s residential construction industry makes a difference in everyday lives, every day,” says Eric. “Sometimes we get a bad rap for what we do, but we’re not just the guys taking down trees. We take pride in providing good quality housing for the generations to come. This is just one more way to do what we’re already doing, and gain some recognition for it along the way. I can see our builders, trades and suppliers working together to assist individuals or organizations with specific housing needs. It could be building an accessible barrier-free entrance to a home, or assisting a women’s shelter. The sky’s the limit; there is so much we can do with our time, talent and resources.” OHB ontario home builder fall 2013

It’s a small world, or is it? Many builders are looking at more efficiently sized homes in Ontario, but not all the data support the trend By Marc Huminilowycz

ontario home builder fall 2013

www.ohba.ca

How many of us have looked fondly at a small, cozy house and thought, “I could live there. I could be happy with less.” Scale down, de-clutter, simplify; this appears to be the mantra of the decade. For a variety of reasons—economic, social and demographic—a global trend toward smaller, simpler living and doing more with less has been gaining momentum. The internet is rife with companies offering a huge variety of plans and styles for “small homes” and “nano houses” with 500 square feet (or less) of living space for a construction cost of about $50,000. The Tata Group, which brought India the world’s cheapest car, is now offering the Tata Nano home—a 215 square foot pre-fab kit including doors, windows, coconut fibre or jute interior and a roof for a ridiculous cost of $700. On our side of the pond, with our four seasons of often extreme weather, a Tato Nano home would be, to say the least, impractical. But there are many examples of people living in small spaces across Canada. In Vancouver, where density and property values are increasing year after year, backyard garages and carports are being replaced by “laneway housing”—small, cottage-like structures located on residential lots, reasonably priced from $260,000 to $330,000, including development permits, installation of utilities and landscaping. Smallworks, a Vancouver builder specializing in laneway housing, offers complete design-build services with custom and standard design options that conform to city zoning bylaws. These homes are ideally suited to established homeowners and their ‘tenants’: grown-up children, who would rather live in the city than the suburbs; aging relatives; and new Canadians, who www.ohba.ca

provide a source of rental income. The concept of laneway housing has not, however, been embraced by Greater Toronto Area municipalities, despite the province of Ontario’s commitment to Places to Grow, an initiative that encourages residential intensification in built-up areas on main streets versus continuous urban sprawl. Yes, GTA condos are proliferating, and they’re getting smaller. According to the latest new home statistics from RealNet, high-rise square footage has dropped 13% since 2007. One new Toronto condo project, Karma Condos from Lifetime Developments, was awarded the BILD and OHBA Project of the Year in 2012. Located in the heart of the city near the corner of Yonge and College Streets, this 50-storey, 495-unit project (currently under construction) offers a collection of modern, airy suites from 490 square feet (1 bedroom) to 819 square feet (3 BR) that are affordably priced from the $200,000s to the low $600,000s. Described as “No waste, everything with a purpose, designed with intention,” Karma suites feature 9-foot ceilings, engineered wood floors and custom-designed kitchen/bathroom cabinets with stone countertops. Then there are the select few Toronto residents who bought a detached home on the waterfront for the cost of a modest condo. ontario home builder fall 2013

How big is a house? Average new home size around the globe in ft 2

Hong Kong 484 United Kingdom 818 Japan 1,023 France 1,206 Canada 1,948

China *646 Sweden 893 Germany 1,173 Denmark 1,475 Australia 2,303

Russia 614 Italy 872 Spain 1,044 Greece 1,356 United States 2,164 Note: data for 2009 builds, *China figures urban only

ontario home builder fall 2013

Sources: CommSec, RBA, UN, US Census

www.ohba.ca

Residents of Bluffers Park Marina live in floating homes near Toronto’s spectacular Scarborough Bluffs. The residences are relatively small—as little as 800 square feet—and they’re cheap. A recent 2-storey, 2-bedroom property with updated kitchen and bathrooms, wall-to-wall windows, wraparound decks and rooftop deck was recently listed for $329,900. For many years, Canadians have shared a penchant for grand, spacious “McMansion” homes with their neighbours to the south. A recent BBC online article titled “Room to swing a cat? Hardly,” quoted surveys of residents in the U.S., Australia and Europe regarding average floor space for newly built homes. American homes topped the chart at 214 square metres (about 2,300 square feet). Average homes in the U.K. were at the bottom, at a mere 76 square metres (805 square feet). CNN reports that the size of the average American new home shrunk in size by 6% during the recession. But as the U.S. economy begins to make a comeback, Americans are super-sizing once more, according to the latest Census Bureau figures, with average new homes measuring almost 2,500 square feet. The American Institute of Architects confirms this figure, stating that bigger homes are back, with more outdoor amenities, but on smaller lots. Why the upsurge? A Florida consulting firm executive quoted in a Bloomberg article explained, “It’s about interest rates. And it’s about short memories.” What caused homes in North America to balloon over the years? Blame it on the Boomers. According to a recent article in the National Post, this generation of Canadians grew up in modest post-war homes (often no bigger than 1,000 square feet) and even smaller spaces. When they entered the workforce and started families, Boomers aspired to larger homes with generous hallways, grand staircases and plenty of rooms. By the beginning of the 21st century, author Tristan Hopper writes, Canadian families resided in some of the largest residences in the world. Still, the trend to smaller homes has gained momentum in Canada over the years, albeit slowly. According to data from the Canadian Home Builders’ Association’s annual Pulse survey, the www.ohba.ca

Ontario’s changing homefront The latest Census figures and National Household Survey from Statistics Canada reveal a dramatically changing demographic and housing landscape in Ontario between 2006 and 2011: While the quantity of private residences in the province grew over the period, the number of people living in these households continues to decrease. Smaller household sizes grew faster than larger households. The number of one-person households rose 11.4%, while the number of households with 5+ residents grew by only 1.6%. Couples with children at home was the slowest-growing household type (0.4%). Multiple-family households (two or more families occupying the same dwelling) increased the most, followed by lone-parent family homes. Ontario was the province with the highest incidence of young adults (ages 20-29) living at home with their parents (50.6%). On a regional basis, Asia (including the Middle East) was the largest source of newcomers to Canada (56.9%) between 2006 and 2011(down slightly from the previous census period). Ontario received 43.1% of all immigrants arriving in Canada. Out of Canada’s three largest metropolitan areas, Toronto had the biggest share of foreign-born people. Just over 381,000 newcomers settled here between 2006 and 2011. Of all Ontario immigrants, 7 out of 10 lived in Toronto.

average size of a new single-detached Canadian home in 1994 was 1,500 square feet (1,700 in Ontario; 1,600 in B.C.), with about one-third of Canada’s builders saying they planned to construct smaller houses in the following year. In 1995, home size remained the same. Over the next ten years however, houses grew steadily, reaching 1,900 square feet in 2005 (2,000 in Ontario; 2,500 in B.C.) In 2012, the CHBA survey found that average detached home size in Canada was identical to 2005, with builders again predicting smaller homes in the coming year. Fast forward to the CHBA’s 2013 survey, conducted last December and January. The average Canadian home size actually increased to 2,000 square feet (2,050 in Ontario) – a figure that could be skewed by new homes in B.C., which grew to 3,000 square feet, bringing up the national average.

The immigration factor

Every year, some 100,000 new residents are moving into the GTA. With such a substantial influx, the region is experiencing its own set of housing challenges. According to a recent study commissioned by BILD, new home sales in the GTA dropped to record lows while prices hit record highs in the first half of this year, a trend that began last year. “The explanation behind this reduction is sales can be summarized in one word: affordability,” says BILD President and CEO Bryan Tuckey, who blames the diminished affordability and choice in the GTA new home market on “constrained land supply, stricter mortgage and lending rules and rising government fees and charges.” A BILD report from earlier this year showed that an average of 20% of the price of a new home in Ontario could be attributed to fees collected by municipal, provincial and federal governments, the worst culprit being ever-escalating development charges. Whatever the reasons behind the rising cost of new housing, one fact remains: The size of available new homes in the GTA is not decreasing. In fact, the latest data (June 30, 2013) from RealNet Canada Inc., the new-homes market intelligence provider for BILD, indicate that the average detached house size in ontario home builder fall 2013

the GTA has been steadily growing over the past three years. (Semis and townhouses have remained relatively stable.) Meanwhile, the latest Statistics Canada Census (2011) shows the number of private households in Ontario growing faster (up 7.3% from 2006) than the number of people living in these private households (up only 5.6% from 2006), with a steadily increasing trend toward smaller household size. Back in 2007, during the Toronto mayoralty race, an advocacy group called the Toronto Community Foundation released its annual Vital Signs report on the quality of life of city residents, and asked the major candidates what they would do about the city’s challenges. One finding in the report confirmed that the middle class is shrinking. In 1970, 66% of Toronto neighbourhoods were middle income. By 2007, that number dropped to only 29%. Citing the cost of housing as a contributing factor, the report described Toronto as “severely unaffordable,” ranking 215th out of 272 urban centres surveyed in key industrialized countries. A more recent report, presented to federal Finance Minister Jim Flaherty by his own department last October, confirms that the middle class is falling behind other income groups in Canada. According to the document, obtained by Postmedia via access-to-information laws, the income of middle class Canadians grew a paltry 7% between 1976 and 2010, or just 0.2% per year. By contrast, the income of the country’s top one-fifth of wage earners grew 38% over the same period. (Figures were adjusted for inflation.) Although the average size of new single detached homes in Ontario has remained fairly high and steady over the past 10 years, several developers outside the GTA are focusing on smaller residences. Ironically, their primary market is the Boomers who once demanded larger homes in the GTA but now, as empty-nesters approaching retirement, wish to scale down to smaller, cheaper residences outside Ontario’s urban centres. Rinaldi Homes, headquartered in St. Catharines, focuses on small (up to 1,300 squarefoot) to medium (up to 1,800 square-foot) bungalow products in the Niagara region that cater mostly to the 50-plus demographic. According to Victor Krmpotic of Rinaldi, about the same number of customers come from the GTA as from the region. “Most of our buyers are downsizing from larger, 2,500+ square-foot homes,” he says. 40

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Big thinking for small spaces Living in a tiny 500 square foot 1940s bungalow with his wife and 14-year-old son, Ottawa renovator Paul Denys of Denys Builds Designs specializes in renovating small homes to make the most of limited space. Here are some “tips and tricks” from Paul: Create a central open concept space to give the illusion of a bigger area. In the front hall, instead of breaking up the space with a closet, put in a freestanding wardrobe/armoire. Avoid built-in bookcase shelving for audio equipment. With digital music devices, docking stations and cloud technology, you don’t really need it. Adopt the “flex housing” concept: As life changes, needs change. Buy furniture on wheels. Put up frosted glass shelves above kitchen and bathroom doorways for cookbooks and rolled up towels. In the bathroom, install an edge-toedge, wall-to-wall mirror to make the room feel twice as big and brighter. Further, a wall-hung toilet recessed in the wall takes up less space. And install a towel bar on the door. In the kitchen, install toe-kick drawers under bottom cabinetry. If you have high ceilings, attach a second set of doors to upper cabinets doors with retractable pins to easily access both levels. Install drawers instead of shelves for all cabinetry below your waist. For closets, install modular systems instead of permanent shelving for more options as your needs change. Maximize closet access by installing floor-to-ceiling sliding doors.

“The trend is moving towards bungalow townhomes. We see demand for this type of product increasing in the future.” A similar trend is taking place in St. Thomas, where Doug Tarry Homes builds smaller, energyefficient residences primarily for retiring Boomers, about 50% of whom are relocating from outside the area (the GTA, KitchenerWaterloo and beyond). Doug Tarry, the company’s director of marketing and lead designer, attributes the demand for smaller homes primarily to affordability. “Every dollar you add to the cost of a home means paying more taxes to the government,” he says. Offering an average bungalow size of 1,500 square feet and a two-storey size of 1800 square feet, Doug Tarry Homes are designed for functionality. The majority feature a twobedroom plan with an open-concept kitchen/great room, a private ensuite, main floor laundry, walk-in closets and at least one finished bedroom and bathroom in a dry, clean basement ready for future expansion, if required. As with many small detached homes being built these days, most Tarry homes do not have a formal dining room. Is there really a trend toward building smaller residences in Ontario? There appears to be no clear answer. Toronto condos continue to proliferate in quantity as they shrink in size. Square footage of new detached homes in the GTA remains high (despite builders predicting smaller homes), while price tags continue to rise and sales drop. Household size in Ontario is decreasing. Boomers are cashing out of their urban homes and downsizing to smaller accommodations in other parts of Ontario, while thousands of newcomers continue to move in to take their place. At the same time, the middle class is struggling to make ends meet. It remains to be seen if the age of McMansions has come to an end in Ontario, but certainly builders are including smaller homes as an option for interested buyers. OHB www.ohba.ca

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Some builders see a future in a new form of housing development By Pat Brennan

ontario home builder fall 2013

www.ohba.ca

Moshe Safdie’s modernistic design of Habitat 67 for Montreal’s Expo 67 may have provided inspiration for higher-density developments such as stacked housing.

Building Canada’s tallest waterfront tower on Etobicoke’s former motel strip doesn’t make Mike Menneguzzi an expert on stacked housing. You can’t get much more stacked than piling 66 floors on top of each other, as planned for Water Tower, the second phase of Empire Communities’ Eau du Soleil project near the mouth of Mimico Creek on Etobicoke’s waterfront. But that’s not stacked housing. When there’s a groundlevel front entrance for a residence that floats two or three floors above grade— that’s stacked housing. www.ohba.ca

Menneguzzi is tackling both styles of home construction as president of high-rise construction at Empire Communities. While preparing to erect the massive waterfront tower—yet to earn municipal approval—he is also concentrating on building Ten88 Progress, a development of stacked townhomes on Progress Ave. at Sheppard Ave. in Scarborough. Stacked housing is a rather new concept in higher density housing, although the concept may have been triggered back in 1967, when Montreal architect Moshe Safdie unveiled his design for Habitat 67, a unique apartment structure, as an Expo 67 pavilion beside the St. Lawrence River. Although not all the 354 units in Habitat had separate ground-floor entrances, each had their own private green terraces and didn’t share a corridor with the other residences stacked in a seemingly random order up to 12 storeys. Habitat 67 was composed of separate concrete boxes, but most stacked housing projects in the Toronto area are “stick built.” Creating affordable housing is the principal raison d’etre for the design. On a warm day in July, a busload of OHBA members toured various stacked housing sites in Etobicoke and got to talk to the construction superintendents erecting them. Paul Kennedy, an architect with Cassidy & Company, was aboard the bus and helped explain the difference between stacked housing and row housing. “Townhouses, typically, are usually two- and three-storey dwellings that share common party walls, in groups of three units up to as many as eight units, depending on the zoning and Site Plan Approval requirements,” says Kennedy. “Each dwelling has its own rear yard, private driveway, garage and ontario home builder fall 2013

private entrance from grade level (or sometimes a ‘raised entry’ as part of the designer’s overall concept). Townhouses are the next level up from single-detached and semi-detached housing in terms of density. “Stacked housing, in simple terms, takes the townhouse concept and literally stacks one unit on top of the other,” Kennedy explains. “This is where the density increases. Stacked housing forms can vary widely, with two-storey on two-storey, or twostorey on one-storey (bungalow). The building form is three or three-and-a-half storeys, fitting into the ‘low-rise’ description of housing. It’s an effective form of housing design and construction that increases density, but still utilizes wood frame construction. “Design challenges arise when you have to provide the necessary parking spaces and individual outdoor living spaces, all of which are solvable, but still keep density and yield in check,” Kennedy continues. “The most cost-effective way to deal with parking is to keep it above grade. However, where higher density trumps all, underground garaging achieves this. Private outdoor living spaces for grade-related units consist of patios, while the stacked unit has a terrace, balcony or a large rooftop terrace. For the buyer, a stacked townhouse offers home ownership, which feels closer to a townhouse with its grade-related entry and not at all like an apartment.” Ingrid McCallum, sales and marketing director with Townwood Homes in York Region, sees the merits in such construction. “We haven’t built any stacked housing yet,” she concedes, “but we are certainly going to have to get into it because the cost of new homes in the GTA is just so far out of reach for too many of our potential customers.” It is primarily pricing that is attracting buyers to Southshore, a stacked townhouse project by Minto Developments in South Etobicoke. “Our buyers are coming here because they can live in south Etobicoke near the lake for less than $400,000 and be within easy transit commuting to downtown Toronto,” notes Jessica Simpson, sales manager at Minto. Southshore has 40 two- and three-bedroom homes under construction in Long Branch, four blocks north of Lakeshore Blvd. 4 4

ontario home builder fall 2013

“Stacked housing, in simple terms, takes the townhouse concept and literally stacks one unit on top of the other,” Kennedy explains. “It’s an effective form of housing design and construction that increases density, but still utilizes wood frame construction.” and 10 blocks east of the Long Branch GO Train station. It’ll have underground parking, and prices on two-bedroom apartments start at $360,400. Mike Memme of Mountainview Homes in Niagara Region joined the tour, but said Niagara does not yet have high enough density to consider building stacked towns. “I wanted to see them being built and I wanted to talk with the sales agents to see how they present them to the consumer and what the consumer is looking for,” says Memme. www.ohba.ca

Clockwise from left: Renderings of the Ten88 Progress project in Scarborough and Southshore in Etobicoke; a Minto salesman outlines his Etobicoke project’s assets; and Empire Communities Executive VP Paul Golini explains his plans to erect Water Tower, Canada’s tallest waterfront tower.

Richard Luciani, president of Cedar Point Real Estate Corporation and chair of OHBA’s sales and marketing committee, served as the guide on the bus tour. “I think this tour may have attracted more OHBA members from outside the GTA than any other we have conducted. We had members from Kingston, from Niagara, from Kitchener.” Mike Mescia is interested in the concept. He and his father Dominic operate Domus Developments in London and have two stacked housing projects underway and two more in the works. Woodland Village is a rental project just north of Western University and Masonville Place. “We are going to be adding stacked townhouse condos on North Centre Rd. within Woodland Village. They’ll be stick built to keep construction costs down,” says Mescia, whose company won an OHBA builder award in 2001 for the best condo townhome project in Ontario with their Lakeview Development in Port Stanley. As well as visiting various stacked housing projects, the bus riders also got to talk with Paul Golini, immediate past chair of BILD and co-founder of Empire Communities. Golini explained the design concept proposed for the 66-storey Water Tower project at Eau du Soleil. The project is currently before the Ontario Municipal Board. If approved it will be the tallest waterfront building in Canada, notes Tarek El-Khatib, senior partner at Toronto’s Zeidler Partnership Architects and the principal architect on the project. Empire, in partnership with Pace Developments, has stacked housing projects in Vaughan (Villagio) and a jointventure project at Ten88 Progress in Scarborough. Villagio is on Keele St. just south of Major Mackenzie Dr., with homes starting at $299,990. Prices start at $189, 990 for one-bedroom suites at Ten88 Progress. www.ohba.ca

The tour also covered W&E, a stacked townhouse joint venture by Fernbrook Homes and Cityzen Development Group at Widdlecomb & Eglinton (hence the project name W&E). Located just west of Kipling Ave., it will be erected on lands once designated for a rapid transit line. Prices start in the low $300,000s for units ranging in size from 672 sq. ft. to 1,316. sq. ft. “The bulk of our buyers are in the 25-45 age range,” says salesman Sheldon Ankin. “But we are finding people of all demographics buying here. We are also seeing empty-nester boomers who want to stay in the north Etobicoke neighbourhood but don’t need a big house anymore. I had a couple in their 70s buy a ground-floor unit last week. They don’t want to be tackling steps and they’re not keen on there being no elevator coming up from the underground parking. I told them to get a small grocery cart and then they can park their car in visitor parking on the surface, bring the groceries in and put the car underground later.” He said no elevators, as well as no swimming pool, gymnasium, weight room, squash courts, etc. keeps the monthly maintenance costs down substantially compared to the high-rise condominiums some of his buyers are coming from. “Affordable housing is the biggest draw here and that doesn’t just apply to the purchase price,” says Ankin. “These buyers want low maintenance costs too.” Since every suite gets a gas BBQ, gas BBQ connections on rooftop patios are a big hit, Ankin says, particularly with the younger buyers. Darlene Fraser, a veteran of new-home marketing in the GTA is now sales and marketing director at Eastforest Homes in Kitchener. She says stacked housing is very popular in the Kitchener market. Eastforest builds a wide range of homes, from milliondollar custom homes to single-family, townhomes, semis, quads and stacked housing. “We have 144 stacked homes at Huron Landing, which attract primarily the first-time buyer,” says Fraser. “There is no underground parking and that helps keep construction costs down as well as monthly maintenance fees.” ontario home builder fall 2013

“I played soccer on the field where W&E will be built and my dad still lives in that neighbourhood,” says Ferrigamo. Prices in stacked housing at Huron Landing start at $149,990 for a one-bedroom unit with 553 sq. ft., and range up to $194,990 for two bedrooms and 963 sq. ft. Jennifer Hurd, a senior account manager at Cricket Energy, a division of Ozz Energy Group, specializes in energy efficiency for homes. She participated on the OHBA tour to learn about the square footage of the homes, right down to the size of the closets in the residences. “All those things have a bearing on the proper size and design of the HVAC system that should be installed,” Hurd notes. “We don’t tell the builders what to install in HVAC systems, but we do offer sound advice.” Remington Group isn’t building stacked towns yet, but does have townhomes among its wide selection of homes styles in development projects throughout Ontario. If they do venture into stacked housing, they’ll have a knowledgeable employee when it comes to design feature. Susan Ferrigamo works at Remington’s design centre and she concentrated on design features and finishes during her tour of the Etobicoke projects. She was particularly pleased to see what Fernbrook and Cityzen will be building on Eglinton Ave. near Martin Grove Collegiate, her alma mater. “I played soccer on the field where W&E will be built and my dad still lives in that neighbourhood,” says Ferrigamo. “I liked what I saw in their brochure regarding what they plan to build there. I know many of my dad’s friends in the high-rise buildings in that neighbourhood. It seems both young people and older people like my dad see stacked townhomes as an interesting and attractive alternative to high-rise living.” Dick Splinter, a principal with Braebury Homes in Kingston, was also an interested party on the bus. “We have some land in Kingston that would be ideal for stacked housing. We want to increase the density on that land. We wanted to see examples of what can be done in their design and construction, but also to hear what the consumer is looking for,” says Splinter. “I found the OHBA tour very informative.” Cedar Point’s Luciani, meanwhile, has been a new-home real estate broker in the GTA for 25 years and involved in the sale of more than 7,000 homes. A current client, Solotech Corpora 46

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“I liked what I saw in their brochure regarding what they plan to build there. I know many of my dad’s friends in the high-rise buildings in that neighbourhood. It seems both young people and older people like my dad see stacked townhomes as an interesting and attractive alternative to high-rise living.” tion, is building 32 stacked townhomes on Gerrard St. E. at Main St. in Toronto’s Upper Beaches neighbourhood; its attractive pricing beginning in the high $300,000s. Luciani says the project is drawing buyers out of the high-rise condos abutting the Rogers Centre. The biggest driving force is affordability, he says. “But they also want to relate more to the ground. They don’t want long waits for an elevator and they are tired of living in a high concrete tower.” OHBA has been advocating for changes to the Ontario Building Code to allow wood-framed stacked towns six storeys high, Luciani adds. “They’ve had wood-frame six-storey townhouses in B.C. for some time, and in Europe there are many 12-storey wood-framed apartments. It’s time for us to catch up.” OHB www.ohba.ca

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Preparing for the worst

Are most builders and contractors underinsured? By Tracy Hanes 48

ontario home builder fall 2013

www.ohba.ca

t some point, most builders will experience a case of “whatever can go wrong, will go wrong.” Even the most meticulously pl a nned construction project can be derailed by unexpected events or mishaps. That’s why it’s important for renovators and builders to have Builder’s Risk insurance, whether the job is a modest home improvement or a brand new multi-million-dollar residential subdivision. Builder’s Risk provides coverage for loss or damage due to things such as windstorms, lightning, theft, vandalism or fire, but not events such as strikes, civil wars or riots. Also known as “course of construction” insurance, it covers buildings during the construction process, providing coverage against loss or damage to materials and fixtures that will become a part of the structure, as well as the structure in progress. In most cases, the policy covers all contractors or subcontractors who supply labour or materials. “A Builder’s Risk policy is designed to cover property in the course of construction that will form part of the completed construction project,” explains Bob Poklitar, Director of Risk Analysis with Federated Insurance. “Coverage for such property takes place while at the jobsite, while in transit and while in storage. While contractor’s equipment and tools are not covered under a Builder’s Risk policy, coverage may be extended to items such as expendable materials and supplies necessary to complete the construction project, temporary buildings, utilities, scaffolding, falsework, forms, hoardings and other similar work that are required to complete the construction project.” “There’s a misconception that Builder’s Risk is the whole package, but it’s really a term that refers just to the property portion of a project,” adds Matt Croswell, Jones Deslaurier Insurance Management’s residential construction specialist. Anyone associated with a project, but in most cases the homeowner or contractor, can purchase Builder’s Risk insurance, notes Kevan Thompson, vice-president of construction at Cowan Insurance. He says while homeowners can arrange the coverage through the broker they have their home insurance policy with, it may be more prudent for builders to do it, as they tend to have more knowledge about the insurance options and how much will be needed, and also deal with brokers that specialize in construction. Builders and renovators should determine who is going to arrange www.ohba.ca

Builder’s Risk coverage and also ensure that the homeowner or client has sufficient liability insurance. “Something that’s often missed, whether it’s a custom home builder or renovators gutting a place, is that homeowners expect the builder’s liability insurance will cover their liability,” says Croswell. However, he says homeowners must also have liability on their land in place since some mishaps will not fall under the builder’s coverage. “Builder’s claims arise more out of the construction operation, such as if someone trips over a board or falls into a hole that’s been dug as part of the work,” explains Croswell. “If someone slips and falls on a sidewalk that hasn’t been shovelled, that’s the homeowner’s liability. If the builder does something that causes the house next door to burn down, that will fall under the builder’s policy, but if the homeowner is visiting the site and throws a cigarette onto his neighbour’s property and that causes a fire, that’s the homeowner’s responsibility.” For Builder’s Risk policies, a project’s construction schedule and estimated budget are key in determining how much coverage is needed. “We’re pretty specific with our clients in what Builder’s Risk policies do cover, but you can never be 100% certain— there’s always inflation and we can account for that in coverage for our clients,” says Thompson. “As long as they’re getting the right advice from their broker, they should be properly covered.” While some builders might be inclined to not initially insure a project for its full value, Glenda Johnston, V.P. of Commercial Lines with Hamilton’s Mainway Hunter Creighton Insurance Inc., attempts to steer clients clear of such thoughts. “There’s typically a 100% coinsurance clause on a Builder’s Risk policy, which requires the client to ensure to 100% of the completed value of the property,” Johnston notes. “That’s the physical hard costs of construction, not to be confused with the selling price, which includes the value of the land, location, etc.,” says Johnston. “If you underinsure it by 50%, you’re only going to get 50% of your loss.” Thompson says it’s important to include add-ons to the Builder’s Risk policy to cover things such as earthquake and water damage (the deductibles tend to be higher than for incidents such as wind, fire and theft), especially as water damage claims are becoming commonplace. “Water has become a huge source of property loss claims, at around 60%,” echoes Peter Carr, V.P. of sales and marketing for Preferred Insurance Group. “It’s been a major issue for last few years with some micro-storms becoming catastrophic and causing water damage and sewer backup.” Builders should also have an add-on that covers materials and fixtures purchased specifically for a project while they are being stored off-site or in transit, such as costly HVAC units. And don’t be afraid to increase the coverage if the project’s value increases, Croswell adds. “Say you are building a $3 million home in Rosedale and you need an extension to complete it and the marble for the countertops has been upgraded and the project is now worth $4 million. If the budget increases, it’s important to contact your broker on the Builder’s Risk policy.” ontario home builder fall 2013

Covering all angles Construction of subdivision houses is different from renovations or custom building for a client, and it’s the builder’s responsibility to arrange for the proper coverage until a home deal closes and changes hands. Builders can also find brokers that offer Builder’s Risk insurance programs to cover all of their sites on an annual basis. “If you’re a subdivision builder, there’s no crystal ball to tell you how much interest there is going to be in a particular site and how quickly the homes will sell and get built,” explains Croswell. “We set up the parameters of a policy to be well beyond what the builder would need and you want the limit to reflect his maximum exposure.” But builders need to be aware of how the coverage works, says Croswell. “Say you do a $10 million subdivision over a year. You do the first $5 million over six months and the next $5 million over the next six months. (That way) you are only exposed to $5 million for the second half of the project, not the entire $10 million over the whole year.” However, the builder would be covered for the entire $10 million if all of the homes were built at the same time.

Soft Cost Coverage Soft cost insurance is another important consideration for builders, as it covers some of the extra expenses that occur from a covered loss. While hard costs include such elements as labour and materials—the physical, tangible elements of a job—soft costs are intangibles you don’t see, such as legal fees, architect’s charges, promotional expenses, accounting bills and project management fees. “If you have a fire four days before a block of townhouses is set to close and be turned over to the new owners, you have to rebuild the whole project,” explains Croswell. “It is going to take six months and you need to pay the project manager for that time. And you may need to advertise again, so you’ll have added promotional expenses.” And because you’ll own the property longer than anticipated, you’ll have to pay property taxes on it, Thompson notes. “It’s often added to Builder’s Risk with large projects and it’s a musthave for them,” says Thompson. “Generally, we don’t see it on single home projects.”

Wrap-up liability Wrap-up liability is a separate policy from Builder’s Risk, but can often be arranged by the same broker. It’s specific to a project but is usually only put in place for very large jobs since the coverage can be expensive, says Thompson. Wrap-up liability covers everyone that steps foot on a site, including the owner, consultants, contractors and subcontractors. “Typically, you wouldn’t see wrap-up on a project of less than $5 million, but I’ve seen some on $1 million projects and I’ve seen $1 billion projects that didn’t have it. A lot of wrap-up coverage is bank-driven, and banks won’t provide financing for a project unless it’s in place.” 50

ontario home builder fall 2013

“If you have a fire four days before a block of townhouses is set to close and be turned over to the new owners, you have to rebuild the whole project,” explains Croswell. “It is going to take six months and you need to pay the project manager for that time. And you may need to advertise again, so you’ll have added promotional expenses.” “Frankly, it’s a good idea to consider wrap-up, no matter what size the project is,” Croswell confirms. “In the event of a claim, you won’t have subcontractors, builders and homeowners’ insurance companies all pointing fingers at one another. It makes the claims process that much smoother.” Further, the contractors’ and subcontractors’ individual liability policies may not adequately cover large claims. While they will have their own liability insurance—say, from $1 million to $5 million each—they may not actually be covered for that figure. If a contractor, for example, has $5 million in coverage in place and there’s a previous $4 million claim against him, that can limit his current coverage to $1 million. Croswell advises that while the majority of the subcontractors will have their own liability insurance, some workers may not, and wrap-up liability provides peace of mind. “For example, a painter who doesn’t have liability coverage might knock over a heating device and burn the place down. Wrap-up will cover that. It’s a better policy, although it is more expensive.” While builders may have a ballpark estimate of how much Builder’s Risk, soft cost or wrap-up coverage they’ll need, it’s best to heed an expert’s advice. The best plan is to deal with companies that have an established track record and specialize in construction-related insurance, suggests Carr. “If you think you can figure out how much coverage you need on your own, that’s mistake number one. First of all, seek professional advice, as every project is different and will have different details. It’s not a cookie cutter product. You’ve got to have an evaluation to figure out what coverage you need, and sometimes soft cost items get left out. Underinsurance can be a big disaster.” OHB www.ohba.ca

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The sale is in the details Small upgrades can leave lasting memories for prospective buyers By Elaine Kapogines

When building a home, to a certain extent you’re working within a firm set of guidelines—there must be walls, a roof, probably a garage and basement. You’ll need bedrooms, bathrooms and a kitchen. But it’s what you do within those guidelines that make you stand out from all the other builders erecting the same walls and roofs. Current trends seem to point to homeowners wanting open concepts, granite countertops, hardwood floors, maybe some elements of a gourmet kitchen or spa bathroom; but how are buyers really supposed to differentiate one builder from the next if they all have the same basic structure and trendy elements? “Homebuyers are becoming more and more discerning. They want their home to be their home, not just a house,” explains Phillip Zivku, broker for ReMax Twin City Realty Inc. “And it’s the little details that help keep the owner happy.” And it’s part of your job as a builder to anticipate their needs— even if they don’t know what they need. The “wow factor” enters into the equation when a salesperson points to a little detail in the home and the buyer says, “Wow, I never thought of that! You really have thought of everything!” “You want to leave a favourable impression,” says Darlene Fraser, sales and marketing manager for Eastforest Homes. “You want them to feel at home and comfortable.” Fraser points to things like a manicured lawn and thriving plants outside at the sales office or model home, but also to tangible details like a drain in a secondfloor laundry room: “You don’t need it, but it’s one of those things that make people feel more secure. “Every detail is important,” Fraser adds. “The recipe for successful home building contains 150 ingredients, but you don’t know which of those ingredients will appeal to each individual. There is no one thing you can do, so you have to combine as many of those ingredients as you can.” Zivku says elements like natural lighting can really draw in a potential buyer. Fraser concurs, noting that things like a transom window in the laundry room, which lets in the light and makes it a more enjoyable place to be, or extra-large patio doors to brighten up the main floor really help to leave that favourable impression. “It’s all in the details,” says Zivku. “The little things go a long way.” Prospective homeowners take notice when thought is put 52

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into the details. “Lighting in the bedroom, for example, is a little thing that people really appreciate,” says Fraser. “At Eastforest, we include an ‘address stone’ on all of our houses and buyers just love that.” Both Fraser and Zivku agree that a drain in the laundry room or address stone isn’t going to sell a house on its own, but these little details can be used as a sales tool to help spark a conversation with the buyer. They can also have a subliminal effect. “If you sent a buyer to two different homes and one had [some of these details] and one didn’t, I don’t think that any of those items would make or break the deal, but I do think how you make them feel—how much information you give them and how comfortable the experience is—will,” says Fraser. Another benefit, and great talking point, is that if you include these elements in the build, the homeowner is able to wrap the cost into the mortgage, making a $1,500 upgrade easier to swallow as part of their monthly mortgage payment rather than a lump sum investment later on. There are also some elements that the builder can include, such as putting a little thought into the selection of light fixtures or blinds that will help eliminate extra spending after the customer moves in (because who wants to string up old bed sheets over the windows until the new blinds arrive?). “It’s becoming a lot more turn-key,” Zivku says. “Twenty years ago people would move in and then say, ‘I’ll get Uncle Leo to come do my floor.’ Now, it’s more like, ‘We don’t have the time to do this later and where are the cost savings anyway?’ Buyers today want everything done at one time while it’s still under warranty and the cost can be lumped into their mortgage with one comfortable payment.” www.ohba.ca

Receptacle Rethink What is the most boring element in a house? How about the electrical receptacles; they’re small and not pretty, but obviously necessary. Putting just a little thought into those tiny outlets can have a big impact. For example, strategic placement could have buyers thinking, “Wow, they’ve really thought of everything!” So what about putting one outside near the roofline for Christmas lights, or inside near the main staircase or fireplace for other festive elements? Or how about near the deck for twinkle lights. Or if you really want to impress a potential buyer, here are two words you should consider: USB charger. Leviton offers both 15A/125V and 20A/125V USB Charger/TamperResistant Receptacles, which are able to charge up to two USB-powered devices, such as tablets, smartphones, gaming devices, e-readers and digital cameras, while leaving a receptacle open as an oldschool plug. It fits in a standard wallbox, uses a standard wallplace and can be multi-ganged with any standard Leviton wiring device, so substituting a USB receptacle for a regular one is a piece of cake. And at about $20 a pop, you’ll get that wow factor for basically pennies per month.

For the Foodies Sittin’ Pretty When it comes to bathrooms, builders tend to focus on the finishing touches — trendy faucets or funky tiles—and sometimes the fundamentals can be overlooked. A quick web search reveals that we spend an average of three years of our life sitting on the toilet, so why not make that experience as comfortable as possible? The design of Kohler’s Cimarron Comfort Height toilet fits right in with a range of decors, but features a seat height of 17 inches (a standard toilet is 15.5 inches), which is comparable to a regular chair and complies with the height requirements of the American Disabilities Act. And with an elongated bowl and premium seat, the Cimarron provides extra comfort for people of all ages and statures. On the high end, Kohler lists the Cimarron for just over $800—so for less than $5 per month on a 30-year mortgage, your homeowners will be spending those three toilet-bound years in comfort. www.ohba.ca

Forget a fancy wine cooler—if you really want to attract the foodies, up your game with the Urban Cultivator, an all-in-one indoor garden. Taking the local food movement to the next level, This Dragons’ Den success story allows your buyers to grow their own hydroponic herbs and vegetables. Choose from the built-in version—à la wine fridge—or go with a butcher block option to really spice up a kitchen. All you need is a waterline and you’re good to grow. At a cool $2,000, this product can be sold to your buyers as a costsaving measure (“By lowering your cost of using greens and herbs in your home kitchen, your Urban Cultivator unit will pay for itself within one to three years,” claims the company) or by simply building it into the cost of the mortgage, the homeowner will only be adding about $10 per month. ontario home builder fall 2013

Smart-stat

Slick Soap

We all know about thermostats that you can control from your smartphone, but what if there was a thermostat that was even smarter than the smartest phone? Meet Nest. Forget programming, Nest learns your schedule and programs itself—and it can still be controlled from your phone if that’s the way you want to go. The company claims it’s as easy to install as a light fixture, so including this sleek gadget in your build won’t be a problem. But it’s more than just a pretty face. With the Auto-Away feature, Nest literally knows when you’re not home and will turn down your system for you, saving energy and money. At around $250, Nest can cut heating and cooling costs by 20% (compared to an unprogrammed thermostat), or included in the mortgage and the homeowners are looking at about a loonie a month.

Of all the rooms in the house, the kitchen tends to become one of the most cluttered. Especially when space is at a premium, having those small but essential items scattered on the countertop can be more than just a nuisance. One very simple and stylish way to help declutter is with a built-in soap or lotion dispenser. Delta offers a number of built-in dispensers as part of its kitchen collections. Styles vary from classic to modern and include colours such as Arctic Stainless, Champagne Bronze and Chrome. The dispensers can be used for hand soap or lotion and some styles are refillable from above the deck. With prices ranging from around $30 to around $140, your homeowner can have this simple but convenient amenity for pennies a month when included in the mortgage.

Warm Bodies When it comes to luxury finishing touches in the bathroom, heated floors seem all the rage. But on those chilly winter mornings what about wrapping your whole body with a warm towel? ICO offers its line of Tuzio towel-warming racks in traditional and contemporary designs to fit in perfectly with the ultimate spa bathroom. All of Tuzio’s electric hardwired line (Milano pictured) include a digital timer featuring seven-day programming and a manual on-off switch. They come in several sizes and colours, including brushed nickel and chrome, so it’ll be easy working this luxury into any design. Now, for around $1,700 (for the large size Milano), a warm towel doesn’t come cheap, but include it with the mortgage and the homeowner can have this indulgence for less than $10 per month.

ontario home builder fall 2013

Safety from a Soaker According to Watts Regulator, a burst washing machine hose can discharge 500 gallons of water in one hour. And with more laundry rooms being installed on the second floor, a burst hose could be an expensive disaster. Next time you’re planning a laundry room, consider installing the Watts IntelliFlow Automatic Washing Machine Shutoff Valve. This little device senses the washing machine current flow, automatically opening or closing the water inlet valves depending on whether or not the machine is in use. For approximately $200, this small addition helps to ensure your homeowners have a little extra peace of mind, which, at the end of the day, really is priceless.

www.ohba.ca

Thinking inside the Box In the past, sticking a washer and dryer in the corner of an unfinished basement took very little thought on the part of the builder. But now, homeowners have seen the convenience of installing the laundry room on the first or second floor. Space may be in short supply, so any space-saving device will be a benefit to the buyer. A prime example is a dryerbox , which safely and efficiently collects the exhaust transition hose in the wall behind the dryer, allowing the dryer to be installed right

Let There be Light When it comes to lighting, builders tend to go with the safe choices. But putting some thought into a beautiful light fixture can really spice up a room, especially a bedroom. Although light fixtures are not a big-ticket item, it’s one of the last things on a new homeowner’s mind and probably not something they’re going to want to spend money on right away, so why not help them out by installing some stylish fixtures that will enhance the overall design of the house. Living Lighting offers a wide variety of classic, stylish and even funky fixtures that can easily be incorporated into any home design. You don’t necessary have to install a large, expensive chandelier, but what about something with a little character in the bedroom like something from Living Lighting’s Zara Collection?

The Numbers Game Although most people don’t pay much attention to the address numbers, an eye-catching, high-quality address stone could leave a positive impression. Ferrell Builders Supply offers a wide variety of address stones to match any exterior design. Whether it’s a little leaf, a fancy border, a circular detail or something simple and classic, solid stone numbers strategically placed in the brickwork can add that special detail. www.ohba.ca

against the wall. It’s a simple $25 metal box that eliminates the elbow typically installed behind the dryer—nothing fancy to look at, but see how impressed your potential homebuyer is when you tell them that you’re giving them additional space in their laundry room. ontario home builder fall 2013

Double Wide Open-concept floor plans are all the rage. And by giving your homeowner lots of open space on the main floor, you’re also creating an opportunity for a lot of natural light. Yes, numerous large windows are great, but what about including an extrawide patio door? Golden Windows offers patio doors with an eight-foot-wide opening in their Goldenclad, Goldenwood and Goldenvinyl 5000 and 3000 Series. Including sources of natural light can also help reduce the homeowner’s energy bill by enabling then to turn off the electric lights and lower the thermostat during the day when the light is pouring.

A Room with a View One of the worst household duties is cleaning the blinds, especially those horizontal miniblinds everyone seems to have these days. Imagine showing your potential buyer a way to have the look of a miniblind without the larbour-intensive dusting. Pella offers its Between-the-Glass blinds, which feature an exclusive hinged glass panel on Pella’s windows or patio doors so you can easily change the blinds or shades. The wood selection is available in a variety of colours, textures and patterns, and since the blinds are tucked between the panes of glass, they are protected from dust and damage. The vinyl selections, which are permanently sealed between the panes, are ideal for patio doors since they won’t move around as the doors are opened and closed. Having enclosed blinds are healthier for homeowners who suffer from allergies since they won’t harbour dust and other allergens. And because they’re cordless they are also safer for homeowners with kids and pets. Another perk for your potential buyer is eliminating the hassle of having to buy window coverings or using old sheets when moving into a new build.

Silent Bells

Fire Power

Although a silent doorbell may seem counterintuitive, if you have a sleeping baby or trouble hearing, it could be the best news you’ve never heard. Not much thought typically goes into the doorbell, so this is something a potential homeowner will remember. Honeywell’s Portable Plus Wireless Chime and Push Button is not only portable within a range of 150 feet but offers a flashing light indicator when the chime is activated—ideal for napping children, those who are hard of hearing or who have a home office. It also includes four chime options and three adjustable volume levels. Homeowners will appreciate the flexibility to customize their bell.

A fireplace usually conjures up images of snuggling up on the couch on a cold winter night and logs crackling. Well, that’s the old days. With Napoleon’s line of direct vent gas fireplaces, the options are endless as to the style and location in which you can include a little fire. The GT8 Torch is a sleek and slim frame with a single flame and would look great next to a large soaker tub to add something special to a stylish bathroom. Direct vent fireplaces don’t require a chimney and can be vented directly through a wall or roof. Also check out the GD19 Vittoria, another compact unit ideal for small spaces like a kitchen.

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www.ohba.ca

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Fix it Now!

complaints from new-home owners can be expected. It’s how you limit them and Respond that defines your company By Ted McIntyre

www.ohba.ca

ontario home builder fall 2013

urchasing a home is never an easy process. The decision has likely involved more time, money and, arguably, stress than any decision the buyer has ever made. Consequently, there is a high level of expectation in the aftermath of such a purchase. Right or wrong, the typical customer expects perfection. Anything short of that will usually result in a nasty outpouring to the builder, Tarion Warranty Corporation, one of any number of blog sites or to the Better Business Bureau. Some of those concerns are legitimate; some are not. Not dealing with the non-warranteed complaint in a timely manner, however, is not an option. Nothing incites bad blood—and bad publicity—quite like being ignored. Even a cursory examination of the 27 new-home-oriented letters sent to the BBB of Mid-Western & Central Ontario between June 1, 2012 and June 30, 2013, reveals a common theme of builders not responding to repeated pleas over extended periods. “Complaints regarding new homes actually make up a very small percentage of what we receive,” notes Fiona Dunbar, Manager of Dispute Resolution & Information Services with the BBB of Mid-Western & Central Ontario. “But the most common complaint is the lack of response from the builder regarding unrepaired deficiencies.” One of the letters in question cited a Markham builder who had delayed the return of the buyer’s $500 grading deposit for more than six years. Another homebuyer claims to have been owed a $1,000 referral fee since his closing date on May 30, 2012. Still another noted 10 incidences of 60

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basement flooding since purchasing a new home in April 2009: “Buying a home from (this builder) has been the worst experience of my life,” he wrote. Tarion, Ontario’s new home warranty program, responded to more than 80,000 phone calls and 29,000 emails and met with 2,400 walk-in visitors last year alone. Rare is the day that a customer is never heard from again after the keys are handed over. In fact, Tarion encourages purchasers to cite concerns and deficiencies in the annual surveys it sends to every new-home owner in Ontario. In 2013, 6,821 of those surveys were returned to Tarion. According to the 2012 Tarion survey results, which were compiled by Crunch Research and Harris/Decima, “Small-volume builders remain most likely to deliver ‘above expectations’ and generally ‘more satisfying’ homeowner experiences, while high-rise builders continue to trail as in past years.” When it comes to problem solving, there is much room for improvement. While the 2012 Tarion survey results reveal that an average of 47%

Tarion, Ontario’s new home warranty program, responded to more than 80,000 phone calls and 29,000 emails and met with 2,400 walkin visitors last year alone. www.ohba.ca

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of respondents were very satisfied or extremely satisfied with the final outcome of the conciliation or claim inspection, an average of 18% were somewhat or very dissatisfied, and as high as 26% in the medium-volume builders category. Karen Mortfield is the vice-president of stakeholder relations for Tarion Warranty Corporation. Her responsibility is to manage relationships with new-home buyers, home builders and government. “You build great homes—a lot of them,” Mortfield tells builders. “To your home buyer, though, only one thing matters. When something

goes wrong, it’s not just ‘It’s settling,’ or ‘Every house has…’ or ‘It’s a temporary issue’ to them— it’s a disaster. You know your work and your materials. You know what minor settling looks like. Homeowners don’t. It’s up to you to educate them throughout the building process. If you wait until they find what looks like a defect, all the information in the world will sound like excuses, not education. How you respond sets the tone for years to come. What homeowners want is respect, to have their concerns heard, dependable communication, prompt problem solving. In short, answers.”

In 2013, 6,821 of those surveys were returned to Tarion

Overall Customer Service

TARION’S NEW-HOME OWNERS SURVEYS NOTE SMALL VOLUME BUILDERS IN THE LEAD, WITH MEDIUM-SIZED BUILDERS MAKING GAINS % Extremely/

Very Satisfied

Total

Small

High-Rise

% extremely satisfied

% very satisfied

any of the world’s most successful businessmen recog n i ze t hese complaints not as nuisances but as opportunities to boost quality control, not to mention image. “Your most unhappy customers are your greatest source of learning,” advises Bill Gates. Jerry Gregoire, CIO of Dell Computers, calls the “customer experience the next competitive battleground.” “Courteous treatment will make a customer a walking advertisement,” James Cash (J.C.) Penney once observed. It’s certainly the case in the home building business, where one well-takencare-of customer is potentially worth tens of thousands of dollars in advertising, given the value of word-of-mouth marketing in the industry. Mike Memme of Mountainview Homes and chair of 62

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28 25

16 12

Medium Large

25 27 % somewhat satisfied

Increase vs. 2011

-4

-1

13 21 % somewhat dissatisfied

18 14 % very dissatisfied

the OHBA/Tarion Liaison Committee, says the process begins with patience and empathy. “I find that when dealing with a purchaser who is very upset, one has to go to the meeting ready to listen,” advises Memme. “I will spend, on average, about 15 to 20 minutes listening and taking notes and asking questions before saying anything. About half the time it becomes clear that we did something wrong that led to the problem, or the way we are doing things isn’t right and needs to be changed. Quite often when I go to a meeting ready to say no, I end up making the changes requested by the purchaser and then changing how we do things so that future purchasers don’t have the same problem. “Rather than just cutting cheques, we usually put a dollar amount on the problem and negotiate who should be responsible for how much of the problem,” Memme adds. “Oftentimes, the purchaser didn’t get what they expected because they did not remember a decision they made or they did not double-check their paperwork. In these cases, www.ohba.ca

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we may take a small part of the responsibility and charge them the rest to get them what they want.” Traditional reactions such as “I’ve already gone above and beyond,” “The perceived defects aren’t warrantable,” “Homeowners are requesting more than was agreed to,” and “Nothing makes them happy,” aren’t healthy responses, says Mortfield. “Saying no doesn’t mean that you win. You have to listen—really listen. Paraphrase to make sure you’ve understood the issue. Ask your homeowner what he or she considers to be a solution. It may not be your ideal solution or even possible, but at least you have a starting point for the discussion. Tell them what you can do immediately. And if you’re going to say no, only do so with good reason and after a full investigation.” Most important, keep in mind that a fast solution is worth more than a slow one. According to Tarion research, the average likelihood to recommend a builder is 84% if no problem is experienced; 71% if there was a problem but it was repaired and resolved the first time; 48% if the problems experienced were resolved eventually, and so on down the line. “Certainly there are some home builders who are considered exceptional by consumers and that is played out in our Awards of Excellence,” notes

“Certainly there are some home builders who are considered exceptional by consumers and that is played out in our Awards of Excellence.” Mortfield. “These are consumers who stated very clearly, ‘We like the way we were treated before the house was built, during the home-building process and the post-sale service.’” Smaller companies are often more flexible, she concedes, but companies of any size can’t delay in dealing with complaints. “It’s interesting to note that a customer’s perception of their buying experience isn’t so much based on whether there were builder problems; it’s based on how quickly those concerns were addressed.” And remember that it doesn’t take a roof falling off to irk a new-home owner. “When you walk in your kitchen and you see that two of the cupboard doors are hung crooked, that’s enough to put you off your day,” says Mortfield. “And that’s something that builders need to remember. Even if everything else in that house is just right, their long-term opin-

They said what?

Some new-home owner complaints are predictable, and then there are those that come right out of left field. Here are some of the unusual concerns fielded by Niagara-based Mountainview Homes and Trenton’s Klemencic Homes: Mark Klemencic, Klemencic Homes A homeowner purchased a former model home with a pristine lawn that had an in-ground sprinkler system and full lawn-care service. The owner opted to discontinue the lawn service and curtail the sprinkler use. The lawn had seen no fertilizer or weed or pest control and very limited watering for the past two summers. The lawn was now overgrown with weeds. The owner recently came to our office to point out how bad his lawn looked and questioned the suitability of the topsoil and the quality of sod that was used. The original owner of a home we built 11 years ago called recently to inquire whether their acrylic bathtub was still under warranty as it had developed a hairline crack. A homeowner complained of a bad smell in the utility room. I pulled out several dead mice from their sump pit. Shortly after move-in, a homeowner complained about tiny imperfections on their

ontario home builder fall 2013

hardwood flooring and wanted a partial rebate on the cost of the upgrade. While we were reviewing the floor, their 3 young boys were playing on the hardwood with metal Tonka and Matchbox toys and the floors were seriously scratched and gouged as a result. They admitted that the floors were badly scratched and gouged, but felt that the original minor imperfections they were showing should be dealt with. Mike Memme, Mountainview Homes Then there was the house where we had to change the toilet because a part of the gentleman’s anatomy would dangle in the water every time he sat on the toilet. We had to get one with a higher seat. We had a house where the purchaser would not let our design house representative help them with their colours. They wanted to make all of their selections on their own with no input from us. The site super was not aware of this and

received a tremendous shock when, at the predelivery inspection, the purchaser spent the whole time yelling, screaming and swearing that the colours were terrible, despite the fact that they had picked them. The site super had to walk out and let our sales representative take the notes. We had a house where the homeowner claimed that the acrylic tub/shower combo gave them vertigo when they would take a shower because the unit was not level. I personally went to the house to investigate. We ran the shower, but noticed nothing strange. We were told the shower curtain had to be closed to notice the effect so we closed the shower curtain, stood on the edge of the tub/shower and looked over the curtain inside the shower. We still noticed nothing strange. We were then told that you had to be standing under the water with the curtain closed to notice the effect. The woman stated that she would turn her head while I removed my clothes to get in the shower to witness the effect. The site super and I left and checked the item off as not warrantable.

www.ohba.ca

Perfect Match in perfect form

Flex100H™ & ECOTouch™ Heat Recovery Ventilator; Programmable Touch Screen Wall Control Flex HRVs are specifically designed for small applications such as homes, condominiums and apartment buildings. It is truly a perfect match for the ECOTouch wall control. The ECO-Touch is a complete Touch Screen Control providing the contractors and homeowners with a higher level of control over indoor air quality. That’s simply better™.

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ion of that homebuilder is going to be negative. “Sometimes there are big issues, of course, but I can’t tell you how many times I’ve heard of small issues that escalate that could’ve been resolved for a couple hundred dollars—where the builder said, ‘I’m not going to do it. It’s not under warranty,’” says Mortfield. “That tiny little item drives months and months of inspections and fights and conditional reports and everything else that goes with that process. And really, who gains from that?” Given that Tarion is being encouraged by media and government to make the list of complaints more transparent, and a list of underperforming builders more readily available on its website, there is even further incentive for builders to address issues in a prompt manner. Mountainview’s Memme knows firsthand the value of swift, courteous service. “During the big storm in July, we had a purchaser in a fiveyear-old home call our office very upset at Mountainview because their basement had flooded,” Memme relates. “We visited them the Monday after and spent over an hour investigating the problem, even though the mechanical warranty had expired after two years. As it turns out, their sump pump was not working, so we explained

The usual suspects

“I can’t tell you how many times I’ve heard of small issues that escalate and could’ve been resolved for a couple hundred dollars—where the builder said, ‘I’m not going to do it. It’s not under warranty.’” to them how to check it and maintain it and replaced it even though it was no longer warranted. Their unit is in a townhouse block with three other units, all of which had sump pumps that were working, but still had basement floods. It appears that the city sewers had backed up into their basements. Armed with this knowledge, the homeowners could try to work with the city to deal with the problem. The next day, that homeowner posted a wonderful recommendation on our Facebook page and stated how they can’t wait to buy another home from us. We have had many instances like that, where we turned

Some new-home owner concerns are more predictable than others. Leading the list are cracks and squeaks, according to Amy Lewis, Tarion’s  senior manager of corporate communications. “A crack in the drywall, concrete basement floor or garage floor is not uncommon in new homes, but is nonetheless a source of concern for homeowners,” notes Lewis. “Typically, it’s due to shrinkage caused by the drying of materials—part of a normal process that all homes experience. Since this does not have an adverse effect on the condition of a home, it is not covered under warranty. The same goes for a squeaky floor or stair.” Still, “Tarion encourages homeowners to point these issues out to their builders so they can determine the cause and possibly make a simple repair,” says Lewis. Next on the list are uneven tiles. Some, like natural stone tiles, are designed to have surface variations that are part of the product’s design. “But too much unevenness can be a major source of consternation for homeowners,” notes Lewis. “Variations should not exceed 6 mm from the specified plane. A variation greater than that could constitute a trip hazard and we advise homeowners to make note of that on their 30-Day or OneYear warranty forms.” One complaint not typically covered under warranty is visible carpeting seams. “Those seams can vary depending on the type of carpet that is installed and predetermined manufactured widths and installation restrictions,” says Lewis. “We ask homeowners to make note of any carpet issues on their Pre-Delivery Inspection (PDI) form, so there is no discrepancy over whether the issue is a result of normal wear and tear.” Water leakage and condensation is another regularly identified item, although often misdiagnosed by the new-home owner. “Condensation on interior window surfaces is a common complaint we hear from homeowners during the first winter they spend in their new home,” says Lewis. “It’s important that homeowners recognize the difference between

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condensation and an actual pool of water on the floor. Only actual water penetration through an opening in the wall or floor may be covered by the statutory warranty. In a basement, trickling water leakage should be included on 30-Day, Year-End and Second-Year warranty forms, as the cause will need to be identified.” As suggested by most builders, Tarion recommends to new-home owners that they run the furnace fan continuously in conjunction with the principal exhaust fan to help control window condensation. “Indoor humidity levels may be controlled by dehumidifiers, ventilation or air conditioning. We also advise homeowners that they should steer clear of heavy draperies or window coverings that may block heat diffusers and prevent airflow. Condensation between factory-sealed windowpanes, however, should not occur in a new home, and should be marked on 30Day or One-Year forms. Scratches and dents  also rate high in the complaints department. Granite countertops are a regular upgrade in many new homes, but can also be the source of frustration for a homeowner who discovers a scratch or chip. “We receive similar inquiries about scratches or dents to flooring, cabinetry, bathtubs and other interior fixtures,” Lewis indicates. “We advise homeowners to pay close attention to the condition of these fixtures during the PDI, as cracks, dents and scratches are generally only covered under warranty if it can be shown that it existed prior to taking possession of the home.”  The last of the usual suspects is air leakage. “Extremely cold or windy weather often leads to queries about air leakage around windows and doors,” Lewis says. “We advise homeowners to regularly inspect the caulking and weatherstripping around windows and doors and replace it if they have become worn with use, although concerns about air leakage around doors and windows should be noted on the 30-Day or One-Year forms.”

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an angry customer into a valuable ally. In almost every case it was because they felt like we listened, admitted where we were wrong and moved forward together.” You can’t underestimate the long-term marketing implications, suggests Mortfield. “Builders as individuals and as an industry are so lucky. What they build today will be there tomorrow and for many years to come. Good builders want to get it right the first time. They don’t just build a house to last; they build relationships with their homeowners to last.” Mark Klemencic of Trenton-based Klemencic Homes is better at it than most. “Tarion gives a summary of the results from the surveys it receives,” explains the winner of the 2013 Tarion Award of Excellence in the Medium Volume Builder category. “Our post-move-in comments were not very different from that of the other finalists. Where there was a difference was our performance prior to move-in—the process of actually signing agreements of purchase, sale, an explanation of what was going to happen and communication while the house was being built. One of the things that I have always felt that we did better than other builders was spending more time during our walk-through and explaining and educating our customer as to what’s in their home and what things are going to happen there. It has resulted in us getting smaller ‘lists.’ “It’s communication,” Klemencic adds. “I don’t view the home inspection as, ‘Come in to your new home and tell me what you don’t like about it.’ I see it is an introduction to their new home. ‘Let me explain the equipment in your home. Here’s what you’re going to find living in a new home.’ I spend a lot of time on the equipment—how to work the programmable thermostat, even how to open some doors and windows and remove the glass for cleaning. “It’s important to have the ability to feel people out. What they really want is an explanation. Sometimes we’ll say, ‘Let’s go down the street and look at some of the other houses that are the same model,’” says Klemencic. “One of the advantages we have is that are we use the same team of tradespeople—some third-generation. We can say to a customer that every house we built on the street or another street has the same painter, the same quality of paint or the same drywaller. Sometimes you need to show people that they got what everybody else got.” Of course, you can’t please everyone. “It’s almost impossible to meet expectations for paint finishes, for example,” says Klemencic. While you can explain away 90% of a customer’s concerns, “sometimes it’s something that’s bugging the hell out of the customer, and if you know they’re going to be out there saying, ‘I got a crappy paint job,’ 68

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“It’s communication,” Klemencic adds. “I don’t view the home inspection as, ‘Come in to your new home and tell me what you don’t like about it.’ I see it is an introduction to their new home. ‘Let me explain the equipment in your home. Here’s what you’re going to find living in a new home.’” it’s important to do something about that. It’s a difficult line to walk because if you start doing it for one customer, others will start to expect it. But we’ve spent a lot of time and effort to build our reputation.” Klemencic has even taken preemptive action, assembling a crew one Boxing Day after high winds had wreaked havoc on the shingles of one development, making reparations and submitting insurance claims on customers’ behalf before many of them even knew what had happened. Mattamy VP of Customer Care Jill Lalonde says there’s no silver bullet when it comes to addressing customer complaints. “But what we try to do is get ahead of it. If these are common complaints that are going to require a lot of our time, why not get ahead of it? Educate the consumer about why these things happen and to expect these things to happen. We call it inoculation. Let’s talk about easing the pain and figure out how to move forward together. “Hiring the right people who can put themselves in their customers’ shoes can help ease the complaint process,” notes Lalonde. “The faster you can set up an appointment—whether you can fix it or talk about it—helps to ease their pain. But you have to set proper expectations in advance. The walls are probably going to crack. Why are they going to crack? It’s not because it’s an inferior product. It’s because tens of thousands of gallons of water make up the wood and the foundation in your house and it’s going to dry. It’s going to settle. And if you explain these things to the customer, they expect it. They know their house is not going to fall down. “We pride ourselves on doing the right thing,” she says. “Do we do things within warranty? Absolutely. Do we do things beyond warranty? Absolutely. We want that customer to recommend us and to buy from us again.” OHB www.ohba.ca

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On the razor’s edge

Ultra-fast buffing wheel hones chisels so they really work By Steve Maxwell Any finishing crew can put up a house

without a sharp chisel, but the results won’t be as good as they could be. Even with power tools and modular construction systems, sooner or later a razorsharp chisel comes in handy. Trouble is, even brand new chisels aren’t sharp enough to work well for more than opening paint cans. The trick is honing a sharp edge without wasting expensive labour doing it. That’s why I gave away most of my sharpening stones more than 20 years ago and use a buffing wheel instead. Honing is the operation that turns a properly ground chisel into a surgically sharp tool, and traditionally this is done by rubbing the chisel tip on progressively finer sharpening stones by hand. www.ohba.ca

But who has 15 or 20 minutes to get out the stones, wet them with oil or water, clamp a dull chisel into a honing guide, work the chisel over the stones, then put everything away? And why would you bother with all this if you can achieve much better results in 60 to 90 seconds with a buffing wheel? My system is based on a hard felt buffing disk of the kind jewellers use to polish metal. You can fit this disk onto a bench grinder fastened to a portable base, or connect it to a ball bearing mandrel driven by a salvaged ¼-hp motor with a V-belt, like I do. The power honing process uses an ultra-fine, wax-like buffing compound abrasive on the wheel. Hold the block of compound against the

edge of the felt wheel as it spins, depositing a small amount of compound on the surface. Next, hold the edge of the chisel against the moving edge of the felt wheel with moderate pressure for 15 or 20 seconds. You’ll soon see how honing happens many times faster this way than with any hand-powered operation. The only time I ever use stones anymore is for a one-time lapping of the back face of new chisels and plane irons. This removes any mill marks and prepares a smooth, flat surface that’s easily honed over the life of the tool. Though the buffing process sounds simple, success takes knowledge and practice. There are two key issues. The first and most important involves safety. The tip of any chisel must always point in ontario home builder fall 2013

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the same direction as the movement of the buffing wheel surface. Forget this important warning and the tool will be caught by the felt wheel and flung. Some people arrange buffing wheel rotation away from themselves (opposite to the usual orientation for grinding), so they can use a tool rest while buffing. My preference is to have a buffing wheel rotate towards me (just like with a regular bench grinder), allowing tool edges to be observed more effectively from above as they’re pointed down and buffed freehand. The second issue has to do with chisel performance on the job. Since the abrasive action of this honing technique is so aggressive, it’s possible to remove visible amounts of metal from a tool tip in little time. This is a good thing, but it also means that if you happen to hold the tool at too steep of an angle relative to the buffing wheel, you’ll end up with a tool tip that’s too blunt. That’s the usual mistake beginners make when learning the technique, and it’s easy to know if you’ve fallen victim to it. If your tool tip gleams like silver, yet cuts wood like a plastic picnic knife, you’ve probably dubbed the tip off too steeply. The solution is to reshape the tool on a grinding wheel, returning to the proper bevel angles before buffing again. The edges of general-purpose woodworking chisels should have a bevel angle between 25º and 30º. The first thing you’ll notice about a really sharp chisel is power. It’s amazing. All of a sudden it’s faster and easier to chop out pockets for strike plates or hinges. A really sharp chisel even comes in handy for knocking out passages for pipes and wires, or getting rid of wonky bits of wall framing before drywall. A minute or two at the buffing wheel and you’ll be delighted by the difference it makes as chisels finally become useful tools. Steve Maxwell is an award-winning writer, photographer, builder, cabinetmaker and stonemason who has been helping experts and amateurs alike through his articles and videos about home improvement projects, construction, woodworking and power tools since 1988. stevemaxwell.ca 72

ontario home builder fall 2013

Building a better home-buying experience Tarion initiatives will benefit builders and new home owners By Howard Bogach President & CEO, Tarion Warranty Corporation Fall is upon us and that means the

Tarion team will once again be travelling across the province attending local home builder association events. For those we won’t get a chance to chat with, here’s an update on what’s happening at Tarion. In August, we launched a second public consultation on Tarion’s proposed enhanced builder education requirements. These are new requirements for a level of knowledge that goes beyond Tarion’s current financial and technical expectations. They should ultimately lead to more professionalism in the industry, a better homebuyer experience and fewer warranty claims. Under the program, new builders will be required to take courses and exams to demonstrate that they have the seven competencies required for registration. Existing builders will be transitioned into the program, but once the program is implemented, all builders or their designates will be required to complete 10 hours of continuous professional development annually. We’ve been meeting with owners of companies throughout Ontario to get their feedback on the proposed initiative, and encourage all builders to consider the proposal (available at Tarion.com) and let us know what you think. The consultation period will end on October 4, 2013. We’re also moving forward with a performance-based pricing initiative that will link the cost of Tarion’s service delivery and claims payments to the enrollment fees you pay. You’ll be receiving your

trial scores in October and will have two years to see how your service and claims affect your scores before the program will come into full effect in 2015. Once the program is in place, the scores will be publicly available. This is an important step toward increased consumer awareness and improving the quality of construction and after-sales service and also giving homebuyers more information to consider when they are choosing a builder. We’ve also been working steadily on bringing you more products to better serve your homeowners and enhance their after-sales service and warranty experience. MyHome and BuilderLink integration systems allow you to receive forms and online items in electronic format that are automatically integrated into your own systems. Some of the benefits include increased efficiencies though auto-dispatching of trades, faster response time to customer inquiries and increased online

Tarion CEO Howard Bogach promises to make home builder scores public by 2015. www.ohba.ca

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The Walton Group of Companies (Walton) is a multinational real estate investment and development firm concentrating on the research, acquisition, management and development of strategically located land in major North American growth corridors. With over 78,000* acres of land under management, Walton is one of North America’s premier land asset managers. Walton is a family company that has been in business for over 30 years. Our industry leading expertise in real estate investment and land development uniquely positions Walton to responsibly transition land into sustainable communities where people live, work and play. Walton takes a long-term approach to land development, building communities for today and tomorrow. Our developments are masterplanned and designed in collaboration with local residents for the benefit of all community stakeholders. Our goal is to build communities that will stand the test of time: hometowns for present and future generations.

Discover the Walton Advantage at Walton.com *as of June 30, 2013 This advertisement is not an offer to sell or a solicitation of an offer to buy any security, which may only be conducted using offering documentation prepared in accordance with applicable law. This document does not discuss the risks associated with real estate investments. © Walton International Group Inc. 2013

home form submissions, making it a winwin enhancement for everyone. We piloted the system earlier this year with Mattamy and saw the number of forms submitted through MyHome increase about 20% above Tarion’s average. Watch this fall for a web conference that will teach you or your IT supplier how to get the most out of Tarion’s MyHome and BuilderLink integration systems. We recently launched two new versions of the Homeowner Information Package (HIP): a freehold and contract version as well as one for condos. We also made it easier for you to deliver the HIP to homeowners by emailing a link that is directed to a current copy of the HIP within Tarion’s website. Of course, if your homeowners prefer a hard copy, you are still required to provide one. Our fall travels are a part of Tarion’s regional tours with OHBA. We’ll be meeting with builders, local building departments, hosting media events and taking part in housing tours. I’ll also be personally meeting with homeowners who have been through the warranty process to get a better understanding of their experiences with both their builder and Tarion. All of these initiatives underway are aimed at creating a better home-buying experience. It will no doubt also have a positive impact on the reputation of the new home building industry, and that’s something we can all get behind!

The latest scoops on natural lighting Studies show that the effects of good

lighting are responsible for an 8% increase in productivity, 16% improvement in task performance and a 52% reduction of accident rates in the workplace. The effects are similar on the home front, where occupants are more alert, not to mention boasting an improved physical and mental disposition. Canadians, however, spend up to 74

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OHB ad 4.5 x 4.875:Layout 1 11-09-28 3:52 PM Page 1 Lighting Research Centre ‘s light scoops balance out daily and seasonal fluctuations by providing less light in summer and more in winter.

90% of their time indoors. Fortunately, two new innovations are helping to shed light on the problem. The first comes from the Lighting Research Center (LRC) at New York’s Rensselaer Polytechnic Institute, the oldest technological research university in the U.S., which recently released a guide for designing light scoops—an innovative type of skylight designed by the LRC. Light scoops provide optimal levels of daylight throughout the changing seasons and daily fluctuations in weather by capturing and strategically redirecting daylight into buildings. Many conventional horizontal skylights provide too much sun on days that are warm and sunny, and too little sun on days that are cold and dark. The LRC’s new light scoops design balances out these daily and seasonal fluctuations by providing less light in summer and more in winter, while accounting for the natural pattern of the sun as it travels across the sky. In overcast conditions, a light scoop receives light from the brightest part of the sky, known as the zenith. The added light means that electric lights can be turned off or dimmed when adequate daylight is available, thus saving energy and operating costs. Light scoops can also save heating and cooling energy, while providing occupants with a more pleasant work and living environment. As a university research centre, LRC has no plans to produce or sell the product commercially, but Light Scoops: A Design Guide demonstrates how to design light www.ohba.ca

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better building scoops to meet target light levels and includes a performance comparison of light scoops versus conventional skylights. The guide is available for free download at lrc.rpi.edu/researchAreas/pdf/ LightScoopsDesignGuide_Final.pdf.

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The second innovation comes from Velux, the world’s leading skylight and Sun Tunnel provider, which has introduced new flat-roof skylights to Canada. The product features an energy-efficient glass roof window that combines with a protective curved cover to shed precipitation so that the skylight can be installed flat, with no slope required. This new product provides up to two times as much natural daylight as a typical vertical window. “Whether you are looking to install a flat roof Sun Tunnel, a fixed curb-mounted skylight or even a flat roof exit—which provides access to your flat roof and lets natural light and fresh air in—Velux (VELUX.ca) offers great options to property owners,” says Russell Ibbotson, Building Industry Consultant at Velux Canada. “The double-glazed window with protective polycarbonate cover doesn’t require a sloped surface for installation like a traditional skylight would and has excellent sound insulation from rain and hail.”

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Integrating the principles of inclusive design allows our residential buildings work for all Canadians By Susan Ruptash, Principal, and Amy Pothier, Accessibility Specialist, Quadrangle Architects Limited

We are all temporarily “abled.” As we

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age, our strength, reach and flexibility diminish. Our visual acuity changes, we www.ohba.ca

The design features of Quadrangle’s Woodside Mews in Oakville support aging in place.

require higher lighting levels and become more sensitive to glare. Our hearing fades. Our memory is not as sharp as it once was. Therefore, it makes good common sense to design our residential buildings using the principles of inclusive design to ensure that our homes do not impede us at any age. It’s also good business sense; integrating these principles at the very beginning of the design and planning process is far more cost-effective than undertaking disruptive and expensive renovations later on. When choosing a house, apartment or condo, Canadians are looking for adaptable, accessible, human-centred design— design that is great now, with flexibility for the future. During the conceptual design phases of these homes, designers, developers and contractors can lay the foundation for an inclusive environment. Elements such as wider hallways allow for the eventual need for walkers and wheelchairs; levers instead of knobs provide older, arthritic hands with the ability to open doors; windows that are large with low sills ensure that those utilizing mobility devices can admire the views outside; the use of plywood behind bathroom tiles accommodates the easy installation of grab bars if and when required; reachable thermostats with a readable font; floor finishes that are flat, level and non-slip so one can walk, roll and shuffle—these design fundamentals can be incorporated from the start of a project without any hint of an institutional look. Quadrangle has designed several residences for elderly people where inclusive design was incorporated from the start of the process. St. Lawrence Neighbourhood Seniors Non-Profit Housing, for example, forms part of a residential block near Church Street and The Esplanade in downtown Toronto. In this particular case, the needs of the elderly were a primary design www.ohba.ca

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better building consideration to ensure that residents could age in place. The project includes one- and two-bedroom units for residents, as well as associating indoor and outdoor amenity spaces. Suites were tailored for the specific needs of residents with limited mobility and those with disabilities. Another Quadrangle residential project is Woodside Mews, a life-lease seniors’ community that provides independent living for the elderly. Located in Oakville, this project demonstrates how creative design can contribute to the success of a project both for the residents and the surrounding community. The Woodside Mews site is in the heart of a residential community, surrounded by a library, a school, semi-detached seniors’ rental homes and single-family houses. The semi-detached units were designed so that each pair of units mirrors the size and scale of the surrounding homes. The community is provided with an internal street-like alley that allows residents to drive directly into their garage and keep back-of-house items such as garbage away from the main entrance. Units that are along public streets were set to face the street to provide more of a community appeal. Equally important was that the interior and exterior design support aging in place. Woodside Mews has enriched the lives of both the existing and new residents by creating a housing format not previously available to Oakville seniors. The urban fabric of our communities must also address the principles of inclusive design. This includes considering elements such as safe curb-cuts that don’t fill up with snow and ice in the winter, good wayfinding and signage for individuals to safely get where they’re going. Other initiatives for inclusive communities include more strategically placed benches; safer sidewalks, slopes and ramps instead of stairs where possible; more thoughtful placement of trash and recycling receptacles that allow freer pedestrian movement; and increased access to public transit. Thanks to increasing legislation, Canada is seeing a more inclusive approach to design from the bottom up, as well as a growing awareness of the basic issues and the direction we must take from the top down. The Canadian Human Rights Code has very broad language to prevent discrimination on the basis of disabil 78

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S O U L O F T H E C I T Y S E R I E S : T H E R E D R O C K E T. A N E N D A N G E R E D S P E C I E S ?

SOUL OF THE CITY TORONTO STAR “More subways!” It’s a refrain heard over and over, while the plan calls for more LRTs. The future of streetcar is far from certain, but the place it holds as a symbol of a people-friendly city will remain forever – perhaps because looking out a subway car offers just a flashdance of grey concrete streaming by. For charm, and the view, the Red Rocket wins, hands down. It’s got soul. The Toronto Star knows its readers, many of whom ride “The Better Way.” Check it out: 70% more women and 48% more 25-54 year-olds read the Star than our closest competitor.* When the spread in readership is that great, you can bet advertisers know it too. When you place your media, place it where the people are. Advertise in the Toronto Star and on thestar.com *Source: NADbank Fall 2011/Spring 2012, Toronto CMA, Weekday Readership

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Congratulations Congratulations Congratulations ononyour your on your New Home New Home Congratulations New Home

ity. Regardless of other existing specific standards and building codes, the Human Rights Code protects the right for people with disabilities to access workplaces, transit, shops, restaurants, etc., and therefore places an obligation on building owners to make their facilities accessible. Canadians are putting pressure on both the national and provincial governments to require inclusive, universally accessible designs that allow every person, regardless of age or ability, to fully participate in society. This includes having access to accessible and adaptable housing. The COGECO CABLE Accessibility for Ontarians with Disabilities would like to help you celebrate the COGECO purchase ofCABLE your new home by offering Act (AODA), passed in June 2005, specifies you a SPECIAL PROMOTION would like to help you celebrate the COGECO CABLE that all public and private sector organizapurchase home by the offering would likeoftoyour helpnew you celebrate Save over $800.00 tions in Ontario must be barrier-free by you a SPECIAL PROMOTION purchase of your new home by offering on Digital Cable, High Speed Internet and Digital Phone 2025. Manitoba is making great strides you a SPECIAL PROMOTION toward creating accessibility legislation Save over $800.00 that intends to make that province a leadCOGECO CABLE Save over $800.00 on Digital Cable, High Speed Internet Digital would like to helpand you celebrate the Phone er in promoting and protecting the human on Digital Cable, High Speed Internet and Digital Phone purchase of your new home by offering rights of persons with disabilities. you a SPECIAL PROMOTION It is important that residential designSave over $800.00 ers, developers and contractors consider on Digital Cable, High Speed Internet and Digital Phone inclusive design when constructing new homes, as well as renovating the existing Canadian housing stock. The OHBA / March of Dimes Accessibility Professional Designation, which provides an online training course—and accompanying designation—for renovators wishing to become more knowledgeable in the field of accesPlease call 1-866-216-0045 or email Expiry Date: Aug. 2012 Expiry Date: Aug. 15,15, 2012 sible and universal design. NewHomeBuilder@northerncallsolutions.com for more information We need to change our attitudes. This is not specialized design; it is intelligent design. This is not a “special interest group,” this is for the interest of all people. Please call1-866-216-0045 1-866-216-0045 or or email email We all deserve the dignity of choice and Please call NewHomeBuilder@northerncallsolutions.com for more Please call 1-866-216-0045 or email independence that accompany inclu- NewHomeBuilder@northerncallsolutions.com for more information information NewHomeBuilder@northerncallsolutions.com for more information sive design, regardless of ability or age.

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Expiry Date: Aug. 15, 2012

SIPs 201

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better building but when a particular innovation finally does prove itself over time, it’s surprising how innovative things can get. Structural insulated panels (SIPs) are a case in point. Based on ideas dating back to the 1930s, and gaining significant attention in the 1970s, SIPs are finally being used in more and more buildings and for more than just walls. Here’s a look at three real-world applications for SIPs that you’ve probably never tackled before. Warm, joist-free floors

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SIPs are typically made with two sheets of 7/16” OSB factory-bonded to both faces of expanded polystyrene foam. Neither of these materials taken separately is strong enough to support loads, but when they’re bonded together into a sandwich, something surprising happens. The catalyzed polyurethane adhesive typically used for bonding the panel components together is rigid and never creeps, and this fact is key. Since the two outer sheets are held apart at a distance, it creates strength in the same way that an engineered wood I-joist does. Tension and compression are concentrated in the outer skins just as they are in the flanges of engineered joists, yielding a very rigid panel. So rigid, in fact, that SIPs make strong, flex-free floors only requiring joists every 4’ instead of 12”, 16” or 24” in typical wood frame floors. There are engineering limits for how far panels can span on a floor, of course, and this varies depending on the thickness of the panels. Generally speaking, a 6”-thick panel can span 8’ to 10’; an 8” panel can span 12’ to 14’; and a 10” can span up to 16’. Besides speed of construction, the result is an extremely warm floor that’s ideal for projects built on a raised foundation with no basement underneath. Truss-free roofs and finished attics

This is one of my favourite uses for SIPs because with the right design it delivers more interior space within the building envelope. Instead of a web of trusses that prevents attic and loft spaces from being finished, SIPs create completely open, insulated and finish-ready spaces underneath rooflines. On buildings narrow www.ohba.ca

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ontario home builder fall 2013

better building

Real Estate Advisory Group

The cornerstone of successful projects.

enough for panels to span without help, a rigid beam supports the panels at the peak as they go up. Wider roofs use widely spaced beam-style rafters and purlins to support panels. Here’s a tip: When you’ve got to cut the bottom end of roof panels at a compound angle so they meet in a valley, it’s helpful to leave total panel length longer than needed, then cut the top end of the panels to precise length at the peak after installation. Fast foundations, dry basements

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Even though wood foundations received code approval more than 40 years ago, non-masonry foundations still seem risky to some builders. And that initial perception is completely understandable. But with thousands of trouble-free Canadian homes sitting on pressure-treated SIP foundations since 1984, the track record speaks for itself. Sometimes reality is surprising. Construction speed, warm/dry basement conditions and freedom from the hassles of pouring concrete are the main reasons builders opt for SIP foundations. Panels made for use below grade typically include 1/2” pressure-treated plywood on the outside and inside faces, with expanded polystyrene foam in the middle. Material costs for an SIP foundation runs about the same as poured concrete, but with less time and labour costs. Construction of most SIP basements takes a day or two after the concrete footings are in place and cured. So what about rot? We’ve all seen regular pressure-treated lumber turn to mush over time, but that’s because standard PT lumber isn’t made for ground contact. Plywood used for SIP foundations has at least 0.60 lbs/cu.ft of either CCA or ACQ impregnated into the wood. Compared with 0.25 to 0.40 lbs/cu.ft. for conventional PT lumber, the higher concentrations and positive foundation drainage make all the difference. Homebuyers are more sophisticated than ever these days, and both government and your clients are demanding better buildings. While innovative use of SIPs isn’t ideal for every project, there are plenty of applications where they make a whole lot more sense than the usual ways of doing things. OHB www.ohba.ca

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product focus

Sinking to new highs The taps have opened on innovative kitchen and bath additions By Dan O’Reilly Homeowners place a high value on the appearance and functionality of their kitchens and bathrooms, judging by research conducted by the National Bath and Kitchen Association. In its Top 10 Industry Trends for 2013 report, which tracked materials, product types and design styles specified by its 300-member designers during the last three months of 2012, the association said that homeowners were spending just over $47,000 on kitchen remodelling projects and approximately $18,500 on bathrooms. The figures are in American dollars, but the findings parallel what is occurring in the Canadian marketplace, says Association vice-president Carolyn Cheetham, a Red Deer Albertabased Certified Master Kitchen & Bath Designer. And while the report deals only with the renovation market, www.ohba.ca

it can provide some insight into what new homebuyers want in their kitchens and bathrooms, she says. “With access to the internet, the public is much more knowledgeable about kitchen design and products than they might have been at one time. They also recognize the value of hiring a NKBA-certified designer.” Asked about demographic and marketplace changes builders should be aware of, she cited the need for “aging-in place” housing and products that can accommodate an aging public. In other words, people want to stay in their homes as long as possible. “There is also increased societal demand for barrier-free housing that accommodates the needs of the physically challenged—particularly in the bath and kitchen.” Here’s a look at some of the hottest kitchen and bath products on the market: ontario home builder fall 2013

product focus

Bathroom faucets make a bold statement With distinctive styling and crisp 90-degree angles, the new Arris bathroom collection of faucets from Moen is an ideal choice for builders wanting to give their bathrooms a chic modern look. Available in chrome and brushed nickel finishes, the fixtures include a single-handle, single-hole-mount faucet, as well as twohandle widespread and wall-mount platforms. All faucets are certified to meet WaterSense criteria, which means they meet the United States’ Environmental Protection Agency’s guidelines as environmentally responsible and efficient products. Compliant with the Americans with Disabilities Act, the collection offers a limited lifetime warranty. moen.ca

Bright ideas for the kitchen island The Lansing lighting pendant from Hudson Valley Lighting is the ideal aesthetic and functional feature for the kitchen, which is arguably the most-used room in any house. Evoking a style that can be traced back to the 1930s, when factories replaced workbench-mounted lamps with more efficient overhead fixtures, it uses LED technology to help save energy. One option is to hang two or three pendants over a kitchen island. The Lansing is available in polished or satin nickel finishes, which may be combined with black or white finish options. Burlington-based Sescolite Ltg. Centres is the manufacturer’s Canadian distributor. hudsonvalleylighting.com

Range hoods are hand-crafted Using century-old techniques and literally thousands of strokes, artisans hand-hammer copper to create the Coronado kitchen range hoods. For the builders of luxury homes, that process means they can provide a product that combines Old World charm with functionality. With an artful rounded shape, antique finish and a decorative accent of hand-formed nails surrounding the base, the range hood is the crowning jewel of any kitchen. According to the manufacturer, Native Trails, copper has been proven to effectively kill bacteria. Measuring 36 inches wide, 24 inches deep and 41 inches high, the Coronado can be customized to suit a variety of kitchens and installations. Native Trails’ preferred Canadian dealer is Kitchener-based Watermarks Showroom. nativetrails.net

ontario home builder fall 2013

Stylish faucets can be personalized To meet the requirements of what it describes as the Comfort Zone (the useable area under the faucet), Hansgrohe has introduced the ComfortZone Metris and Focus product lines. Up to five faucet height options are available in each, meaning there is an available faucet for every sink, no matter the style, shape or size. The Metris is defined by its striking contours and modern design, while the Focus blends harmoniously with any interior. The Focus 70 model includes a base plate, making it the ideal retrofit solution. To aid in planning, the manufacturer has developed proprietary online configurations that allow builders to virtually see different faucet/sink pairings. hansgrohe.com

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product focus

Free-standing bathtubs offer elegance In heralding the debut of its Sunstruck and Stargaze free-standing tubs, Kohler is tapping in to growing consumer interest in this type of bathing experience. Designed to draw attention and provide allure, the two acrylic tubs offer a smooth texture and simple, clean lines to fit in any bathroom decor, says the manufacturer. The Sunstruck is an oval shape and the Stargaze is rectangular. Both are available in either a straight shroud design, resembling a standard straight-sided bath installation, or a fluted shroud, which provides a tailored look to the bath. They also feature a wide deck along one side that serves to simplify faucet placement and installation, as well as providing extra support for users. kohler.ca

Showers are flexible and convenient With the Delta In2ition showerhead, builders can offer their purchasers the convenience, flexibility and luxury of a two-showersin-one system. Available in either a four-setting Classic or fivesetting Traditional version, the showerhead features a detachable handshower, which can run separately or simultaneously, giving users the warmth and flexibility of two streams of water at once. Both models offer a pause setting that reduces the flow to a trickle, helping to save water when a full stream is not needed. In addition, with a lever positioned on the side of the showerhead, users can choose one of three options: showerhead and handshower, showerhead only, and handshower only. deltafaucet.ca

Graceful faucet also high-tech With a design inspired by gliding swans, the Vuelo collection of faucets from Brizo combines grace and elegance with innovative technology. The collection includes a pull-down, a high-arc pullout, and a waterfall faucet with an optional side spray. All models are available with the optional SmartTouch Technology, which allows users to start and stop the flow of water with a simple tap anywhere on the spout or handle. An LED light indicates the feature is active. According to the manufacturer, the technology helps to conserve water, while its flexible operation promotes safe food handling by helping reduce the potential for cross-contamination. brizo.com

Refrigerator runs hot and cold General Electric has produced a refrigerator that it declares is the first on the market with a hot water dispenser. The 29-cubicfoot Café Series French Door Refrigerator heats up to 10 ounces of filtered water in just minutes. A custom setting allows homeowners to select a temperature from 32 to 85 degrees Celsius, or select one of four pre-programmed settings, which include 32 degrees for warm, 65 degrees for cocoa, 77 degrees for tea and 85 degrees for soup. It’s also equipped with the appliance industry’s most advanced water filtration system. Other features include an adjustable temperature-controlled drawer, an odour filter and plenty of storage. ge.com

ontario home builder fall 2013

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So good to come home to. Beautiful custom cabinetry. Quality craftsmanship and design that maintains functionality. Offering a wide selection of styles and innovative design options to customize your entire home. Browse our website or visit our showroom — contact us to schedule a free design consultation and estimate. 233 Edward Street | St. Thomas 519-631-8373 | gcwkitchens.com

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product focus

Sinks evoke farm memories Even for purchasers with absolutely no connection with agriculture, Stone Forest’s farmhouse sinks will hold a major appeal. Carved from solid granite by stonecutters using hammers and chisels, the sinks can complement a variety of house styles ranging from traditional to contemporary. Stone choices vary on model, but include blue/grey, beige and black granite. There are also various front-apron-style options, including polished or rough, floral bas-relief and natural. The manufacturer also offers a copper sink. All that is required for installation is for a plumber to connect the sinks with the drain system. stoneforest.com

For the love of wine Like the time and care needed to produce a fine wine, the creation of the perfect wine cellar also requires care, dedication and expertise. Using the latest in CAD modelling software and working with builders over the telephone and via email, Vinotemp specializes in the design and manufacture of custom wine cabinetry, racks and rooms. Its state-of the-art line of Wine-Mate self-contained cooling units recently received a U.S. government patent for their design/ability to maintain proper temperature and humidity. The units arrive ready for installation, so there is no need for a refrigeration technician, copper tubing or drain lines. Charlescraft is the exclusive distributor for Vinotemp in Ontario. charlescraft.ca

Point-of-use refrigerator Just introduced in June, the Perlick Signature Series Dual-Zone Refrigerator/Freezer Drawers are the perfect solution for areas where larger standard refrigerators/freezers won’t fit or aren’t required. Consisting of a top refrigerator drawer with a freezer on the bottom, the five-cubic-foot dual zone enables builders and renovators to offer homebuyers food storage solutions in easy-toaccess places near food preparation areas. This point-of-use is an upcoming trend in kitchen design, says Perlick. A major technical feature is a forced-air system, which can chill room-temperature products in 30 minutes after being placed in the units.

Hot off the shelf GCW Custom Kitchens & Cabinetry’s expansion to an 82,000-square-foot facility in its hometown of St. Thomas includes the addition of a new member of the family, Milestone Kitchens and Cabinetry—a dealer-based, wholesale line of cabinetry to be produced in GCW’s new facility. Much like GWC’s other cabinetry, Milestone will offer a high-quality 5/8” cabinet box with a choice of 15 different door styles and 34 standard finishes. Flexible to a host of design situations, it offers box sizes from 9” to 42” with 1-1/2” modular sizing, quality hinges and drawer slides. The quality line boasts a limited lifetime warranty.

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ontario home builder fall 2013

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OUTside THE BOX

The Road Home The introduction of the ’burbs after

Dr. Avi Friedman teaches architecture at McGill University. He can be reached at avi.friedman@ mcgill.ca.

WWII provided much-needed relief to overcrowded cities. The decades since have seen a gradual lowering of densities of suburban neighbourhoods. And yet the width of a typical street has grown from a mere 16 feet at the turn of the century to a virtual mini-highway right-of-way of as much as 60 feet today. Road construction has also gotten complex—costly storm sewers and water pipes being just some of the utilities buried beneath the asphalt. Residents began to pay a huge sum of money (included in the cost of the home) for an area they used once or twice a day. The cost of road repair and maintenance, meanwhile, has also skyrocketed, making homeowners think about the wisdom of the limited use of the expanses of asphalt in front of their homes. The Dutch considered the separation between cars and people and a single-use street long ago. Meerlo, where I recently attended a conference, is a small bedroom community on the outskirts of Eindhoven in the

ontario home builder summer 2013

By Avi Friedman

Netherlands. Walking the streets of Meerlo made me realize that people and not cars can own the road. Common sense begins in Meerlo by building streets not wider than 25 feet—each featuring a bicycle path paved with red unit pavers. Intersections are slightly raised and are covered with cobblestone, reminding motorists to slow down as they pass through. Speed bumps are well integrated with the asphalt at the entryway to local streets. Near the neighbourhood centre the streetscape changes once more. The sidewalk disappears and blends into the road. Known in Holland as Woonorf, this kind of street was designed to be shared by pedestrians and motorists. The distinct road surface makes walking comfortable and safe, while the tall, leafy trees alongside cast shadows on parked cars, creating a park-like feeling. On many of Meerlo’s streets I noticed kids playing. They were not threatened or alarmed when a car arrived. The driver paused for a moment, the road emptied and the

car passed. Kids are playing in Canada’s residential roads as well; street hockey being a national pastime. But parents are still hesitant about letting their kids play unsupervised. They know that here the motorists own the road. Homeowners often tend to believe that their own domain ends at the edge of their lot. But planners, developers and residents ought to change this perception and recognize that the street in front of their homes is a shared public domain. Roads can be designed with narrow edges at each end, making it easy to close them when needed. Sidewalks can also be levelled with the street, which can become the neighbourhood’s public square. This could serve as the location for a Canada Day barbecue or a giant garage sale. Similar to some European towns, a mobile food market can set up shop on the street on weekdays or weekends. As we begin to plan our future neighbourhoods and fix existing ones, we may want to take a hard look at our streets and reclaim them. OHB

www.ohba.ca

rendering: courtesy of waterfront toronto

A rendering of the proposed “Woonerf ” in the West Don Lands development. This pedestrian-friendly street design will be the first of its kind in Toronto.

The time has come to reclaim our streets

We Build Communities

Ontario Provincial District Council

With over 65,000 members across Ontario, LiUNA is committed to building communities throughout the province. Our members are employed in all sectors of the construction industry: building our roads & bridges, installing our sewers & water mains, developing our pipelines, channeling our energy sources, and expanding our recreation facilities, hospitals & schools.

LiUNA’s biggest contribution to building communities exists in the low rise residential construction sector. Represented by LiUNA Local 183, it is the largest residential construction Local in Canada, with more than 40,000 members and retirees. Local 183 is the leading source for skilled Labourers, who have built homes for Ontario families for decades.

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