Chalk Line September/October 2015
MAGAZINE
A Look at the Labor and Subcontractor Shortage
INSIDE THIS ISSUE WHY TAHC MATTERS 2016 BOARD OF DIRECTOR NOMINATIONS INSURANCE TIPS FOR CONTRACTORS
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CONTENT FEATURE
Page 4
MESSAGE FROM THE 2015 PRESIDENT Page 5
2016 BOARD NOMINATIONS
PAGE 8-9 A Look at the Labor and Subcontractor Shortage A local glance at the labor and subcontractor shortage, why it’s happening, how businesses are being forced to react and what can be done to combat it.
September/October 2015
14
GOLF TOURNAMENT
Page 7
MESSAGE FROM THE EXECUTIVE OFFICER Page 10
LATEST GOVERNMENT AFFAIRS ISSUES Page 11
OMB HIRES NEW GOVERNMENT AFFAIRS DIRECTOR Page 12
Chalk Line
6
GROW MEMBERSHIP!
NEW/RENEWING MEMBERS Page 13
INSURANCE PROVIDES PEACE OF MIND FOR CONTRACTORS AND CLIENTS
Interested in sharing your expertise, opinions or comments with Chalk Line readers? Please contact Angela White at angela@omb.org or (360) 754-0912 to discuss the opportunity to write content for Chalk Line.
Looking Ahead-Meetings and Events September 9 at 4:00 pm - The Affordable Housing Council Candidate Interviews Olympia Master Builders Office
October 6 at 4:00 pm - Executive Committee Meeting Olympia Master Builders Office
October 22 at 4:00 pm-Government Affairs Committee Meeting Olympia Master Builders Office
September 10 at 11 am - ROII Select -ABC’s of Claims Management Olympia Master Builders Office
October 6 at 4:30 pm - Board of Directors Meeting Olympia Master Builders Office
October 27 at 4:00 pm-Associates Council Meeting Olympia Master Builders Office
September 11 at 4:00 pm - Beer with a Builder Three Magnets Brewing Co., Olympia
October 6 at 6:00 pm - Tour of Homes Awards Party Washington Performing Arts Center
October 28 at 12:00 pm - Quarterly Building Officials Meeting Olympia Master Builders Office
September 15 at 5:30 pm - Mason County Chapter Meeting El Sarape, Shelton (downtown)
October 7-9 at 8:00 am - Certified New Home Sales Professional Class Olympia Master Builders Office
November 3 at 4:00 pm - Executive Committee Meeting Olympia Master Builders Office
September 16 at 6:00 pm-Lewis County Chapter Ramblin Jacks Ribeye in Napavine
October 7 at 6:00 pm - Grays Harbor Chapter Meeting GH Wine Sellars in Aberdeen
November 3 at 4:30 pm - Board of Directors Meeting Olympia Master Builders Office
September 17 at 11:30 am-General Membership Lunch Rivers Edge in Tumwater
October 15 at 11:30 am - General Membership Lunch Rivers Edge in Tumwater
November 4-6 - BIAW Board of Directors Meetings Bellevue, WA
September 22 at 4:00 pm-Associates Council Meeting Olympia Master Builders Office
October 16 at 8:30 am - Construction Contracts & Lien Law Class Olympia Master Builders Office
November 4 at 6:00 pm - Grays Harbor Chapter Meeting GH Wine Sellars in Aberdeen
September 24 at 4:00 pm-Government Affairs Committee Meeting Olympia Master Builders Office
October 20 at 5:30 pm - Mason County Chapter Meeting El Sarape, Shelton (downtown)
September 25 at 8:30 am - Golf Tournament Hawks Prairie-Woodlands Golf Course
October 21 at 6:00 pm-Lewis County Chapter Ramblin Jacks Ribeye in Napavine
Meetings and Events are subject to change. For more details on these upcoming OMB events, go to www.omb.org.
Chalk Line • 3
FROM THE
2015 President OMB Events Encourage People to Dream!
Mike Auderer PRESIDENT
T
his issue of Chalk Line has some great content. We have Diane Altman with the Altman Insurance Agency giving great tips for contractors and homeowners on insurance coverage that protects both parties. I know I appreciate this type of information so I can better serve my customers and my company. We also delved into the labor shortage that is taking place in the construction industry all across the country. As I write this, we are in the middle of this year’s Tour of HomesTM so it is on the top of my mind! For those of you who don’t know about the Tour, builders and remodelers are given the opportunity to showcase their projects to the public for two weekends in August. Olympia Master Builders (OMB) puts together an advertising campaign for the event inviting the public to come and away we go! Obviously a lot more goes into the planning for the two weekends, TM including arranging for each home to be judged by out-of-area industry professionals. I am always impressed with how smoothly this event runs. My hat’s off to this year’s Chairperson, Karen McClennen of The Olympian, the Tour of HomesTM committee, and Brianna Bedell, OMB’s Events Director. The
“Homeownership is an important part of the American dream and events put on by OMB like the Tour of Homes and the Home Shows encourage people to DREAM.”
amount of participation we get from the people in our community is amazing. We had well over 100 people come through my remodel project last Saturday alone. This event is huge. Potential customers are able to see my work in person, ask questions and get a feel for my company. We were able to talk with potential customers about products, innovations in the industry and our vision. I’ve even had customers ask to have their home on Tour the following year because that is how they found me. I think it’s great! If you are a builder and didn’t participate this year, I would encourage you to start planning to put a project on the Tour next year. The Tour of HomesTM is great for the industry and all businesses operating in our community. Homeownership is an important part of the American dream and events put on by OMB, like the Tour of HomesTM and the Home Shows, encourage people to DREAM. It’s up to ALL of us, as builders, remodelers and tradespeople to turn those dreams into reality by capturing the buzz that’s created! I hope you enjoy reading this issue of Chalk Line and that you gain some knowledge along the way.
TOH Directional
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Chalk Line Official Publication of the Olympia Master Builders 1211 State Avenue NE, Olympia WA 98506 Phone: (360) 754-0912 www.omb.org
The Olympia Master Builders is a professional trade association representing 450 member companies located in Thurston, Lewis, Grays Harbor, Mason and Pacific Counties. Our members come from all sectors of the building trades and they are committed to “building strong communities, one home at a time.”
Executive Committee
President Mike Auderer First Vice President Ron Deering Treasurer Stuart Drebick Associate Vice President Kim Asay Second Associate Vice President Debbi Boyd Secretary Jon Jones Immediate Past President John McKinlay Builder at Large Karen McClennen
Builder Directors Scott Bergford, Janine Ezzell, Erik Jensen
Associate Directors Holly Constantine, Rusty Ruiz
2016 Nominations for the Board of Directors In fulfilling its responsibility to identify and qualify members to serve on the Board of Directors, the Nominating Committee of Olympia Master Builders has recommended their list of candidates for 2016.
Executive Commitee
President--Mike Auderer First Vice-President--Ron Deering Treasurer--Stuart Drebick Associate Vice-President--Debbi Boyd Second Associate VP--Jon Jones Secretary--Kim Asay Immediate Past President--John McKinlay
Elected Director - Two Year Term
Builder Director--John Johnson Builder Director--Andy Gruhn Builder Director--Jennifer McDonald Associate Director--Becky Rieger Associate Director--Jeff Klingberg
National Director - One Year Term
National Director--Builder Mike Auderer National Director--Builder Karen McClennen National Director--Associate Bob Kagy
State Directors - One Year Term
State Director--Builder Ron Deering State Director--Builder John McKinlay State Director--Builder Karen McClennen State Director--Associate Stuart Drebick State Director--Associate Janine Ezzell State Director--Associate Tina Allen State Director--Associate Debbi Boyd State Director--Associate Becky Rieger State Director--Associate Bob Kagy
Legal Counsel Jay Goldstein
National Directors Mike Auderer, Bob Kagy, Karen McClennen
State Directors Tina Allen, Mike Auderer, Debbi Boyd, Ron Deering, Janine Ezzell, Bob Kagy, Karen McClennen, John McKinlay, Carmen Rowe
Grays Harbor Chapter
President Harv Lillegard Associate Vice President Rusty Ruiz Secretary Bob Smith
Cornerstone Partners
Cornerstone Partners recognizes member companies whose financial support have made our association programs possible. Contact Amanda Cassman at amanda@omb.org or (360) 754-0912 for information on this program.
Lewis County Chapter
President Erik Jensen First Vice President John Johnson Assoc. Vice President Becky Rieger Secretary Rick Borovec Builder Director Patrick Toby Associate Directors Carmen Rowe, Jason Kunz
GRANITE LEVEL-$5,000 Investment
Mason County Chapter
President Aaron Nester Vice President Andrew Spear Associate Vice President Mike Gill Second Associate Vice President Julie Nichols Secretary/Treasurer Bob Love
QUARTZ LEVEL-$3,000 Investment
South Pacific County Chapter President Steve Waltemate
Association Staff
Executive Officer Troy Nichols Communications DIrector Angela White Membership Marketing Coordinator Amanda Cassman Events Director Brianna Bedell Government Affairs Director Joshua Deal
MARBLE LEVEL-$1,000 Investment • Ascent Audiology and Hearing • Chicago Title Insurance Co.. • Duncan and Associates • Johnson Custom Homes, LLC • Kenyon Remodeling. • Olympia Construction, Inc. • Phillips Burgess, PLLC • Scott Homes, Inc. • Sunset Insurance Agency, LLC • Twin Star Credit Union • Umpqua Bank • Washington Business Bank • Williams Onsite, LLC Chalk Line • 5
Dear Members of the Olympia Master Builders, My name is Holly Constantine, and I am the Membership Chairperson for the Olympia Master Builders (OMB) for 2015, and I also work at Capitol Glass in Olympia. The mission of OMB is to provide affordable housing for all economic segments of society, and your membership helps us achieve this goal! Your membership offers many other benefits as well, ranging from networking, purchasing benefits with national vendors like Verizon and Staples, Return on Industrial Insurance (ROII), health care, education classes, and much, much more. Don’t forget the fun events too: Tour of Homes, The Big Home and Garden Show, our Annual Golf Tournament, Holiday Party, Beer With a Builder, and the Membership Appreciation night at the Tacoma Rainiers!
I would like to ask you, as a fellow member of OMB, to help our membership grow. If you can think of any person, associate or builder, that you do business with, and feel they can benefit from the association like you do, this is very simple: We will do the calling and asking for you! 6 • Chalk Line
What I am asking is for you to send their contact information over to our Membership Marketing Coordinator Amanda Cassman at OMB and she will call on your behalf and explain all the benefits of OMB membership to them. Amanda’s email address is amanda@omb.org. You can email or call her at the office number - 360.754.0912. And remember, for every new member you help recruit, we pay you cold hard cash - $40 per new member! Also, keep in mind the many committees and councils that you can participate in at OMB and have a voice. Check out the OMB website, if anything, to refresh yourself with what OMB is all about and what is up and coming with our industry: www.omb.org. I appreciate you taking a moment out of your busy day to help our association grow and thrive. Your time and participation mean everything to OMB, and it is much appreciated. Sincerely,
Holly Constantine, OMB Membership Committee Chair Capitol Glass, Olympia
FROM THE
EXECUTIVE OFFICER Surprise! It’s Election Season!
W Troy Nichols EXECUTIVE OFFICER
I
n Washington state we’ll have a competitive gubernatorial election, along with a US Senate Race, several congressional campaigns, and a protracted battle for control of the state Legislature. Rest assured, OMB and our state association, BIAW, will be right in the middle of all of it! However, with all of that competition to look forward to, it’s important to keep in mind that we’re right in the middle of an election season TODAY! Dozens of local races – mayor, city council, port commissioners, etc. – will be on the ballot this November, and the outcome of these campaigns may be just as if not more important than the big high-profile races next year. Think about it – while presidential, congressional and state politics might get all the attention and headlines, when it comes to your business, who has the biggest impact? Local zoning requirements, impact fees, property taxes, critical area ordinances, economic development; all of these issues are decided largely at the local level, so the outcome of the races going on right now definitely matter. But don’t worry, we’ve got you covered! OMB’s political action committee – The Affordable Housing Council (TAHC) – is hard at work endorsing candidates, reviewing candidate
e all know 2016 is already shaping up to be a big year on the political front. I can’t recall a more competitive and volatile presidential field, and the election is still nearly a year and a half away! They also have endorsed Jerry Farmer for Olympia Port Commissioner. Jerry is a long time local radio personality whose relationship with OMB and its members goes back for years. This is an “Stay tuned for more important post, as TAHC endorsements the Port of Olymin the coming weeks. pia is currently going through its We will publish a master planning list of all 2015 TAHC process, the results endorsements in all of which will imof our publications pact the economic of our before the election vitality region for years to so you know which come.
questionnaire responses, interviewing candidates, and making contributions to individuals who understand the importance of the building industry and the overall business climate.
When you sign up or renew your annual membership with OMB, you have the option of making a voluntary $40 donation to the TAHC. Fortunately for us, a majority of members recognize the importance of getting involved in political candidates will be the Stay tuned for campaigns and choose to make the best for your business more TAHC endonation. Those OMB and our industry.” dorsements in the members who choose coming weeks. to give more – at least $125 total – can We will publish a list of all 2015 TAHC serve as TAHC trustees and help make endorsements in all of our publicadecisions on which candidates we tions before the election so you know endorse and support financially. which candidates will be the best for your business and our industry. In the The TAHC has already made two meantime, pay attention to your local important endorsements for 2015. races. They may not get the amount They chose to support Olympia City of attention that Hillary or ‘The Donald’ Councilor Cheryl Selby for Mayor of receive on a daily basis, but the results Olympia. She’s a friend of our associare just as important! ation and she’s also a small business owner here in town, so she’s the only candidate running who knows what it’s like to sign the front side of a paycheck.
Chalk Line • 7
A Look at the Shortage of Labor and Subcontractors in the Building Industry
By Angela White, Communications Director Originally printed in The Chronicle on August 20, 2015
T
here is a shortage of labor and subcontractors in the building industry and that shortage has been growing. In fact, this issue even has its own social media hashtag now, #skilledlaborforhousing! According to Robert Dietz of the National Association of Home Builders (NAHB) in a recent “Eye on Housing”, economics and housing policy blog, the national open position rate (job openings as a percentage of total employment) for the construction
8 • Chalk Line
sector did decline slightly to 2.3% in June, but has been steadily moving upward since 2012. The average monthly gain in employment in the building industry is standing at just under 6,500 over the last six months. Basically what this is telling us is that the number of jobs available in the industry remains high, but the actual hiring being done is low. Builders across the nation have continually cited the ability to find skilled labor as a challenge. In a 2015 NAHB survey of builders, 69% reported labor and subcontractor shortages for those willing to do rough carpentry as either serious, or
that they are seeing some shortage. This is a daunting statistic because carpentry is needed in EVERY home built. Art Castle, Executive Vice President for the Building Industry Association of Washington (BIAW), shared that this holds true for Washington State as well. According to Castle, BIAW has been hearing concerns on workforce shortages from members for a number of months now. Locally, Curtis Dean of LTJ Builders, Inc., Lewis County’s second oldest construction company, concurs, “We have a huge problem in Lewis County
just didn’t make it through the recession partly due to these factors. Just a few of the trades that are lacking skilled laborers are: roofers, bricklayers/masons, carpenters, electricians, HVAC, and the list goes on. This issue has prompted BIAW to create a Workforce Development Program for Association members. This program matches companies with employees that have industryrelated work skills. The employer would then provide additional onthe-job training to meet specific work requirements. This is a win for both the skilled employees looking for work, and the companies that need them.
finding labor and subcontractors.” Dean went on to explain that the shortage means projects take longer, are more expensive, and they may eventually need to turn clients away. Dean also shared that Lewis County is a tough market for those in the building industry; the cost of building materials has risen everywhere but he hasn’t passed those costs on to the client because he needs to keep his product affordable for the people taking the next step and building a home in his community. This has eaten into the company’s profit margin, which also makes hiring and keeping good employees tough. A lot of builders
with students. She stated that there are good paying jobs in the building industry for people that have a good work ethic and are excited about having a career that they are proud of. There are many schools of thought behind the reason for the shortage, such as, skilled trades people moved on to other industries during the recession, they stopped looking for work all together, took other jobs or they made the choice to retire when work became scarce. Sharon O’Malley of Construction DIVE in her article “10 Ways Construction Companies Can Outsmart the Labor Shortage,” had some good recommendations, such as being proactive with recruiting, constantly training employees, encouraging longtime employees to mentor newer employees, getting involved with coaching the employees of the future by mentoring at local high schools, committing to hiring vets, and increasing pay and benefits. Ideas like these and programs like BIAW’s Workforce Development Program are a great start but as an Association we’ll continue to look at this issue to find solutions.
Lisa Mohoric and her husband Steve, of Mohoric Refrigeration in Centralia, have been in business since 1979 and Lisa said, “The last two years have been the worst I have ever seen for finding and hiring quality employees.” Lisa, similar to Curtis Dean, shared that the lack of skilled labor has changed the way they do business. “We’ve had to be more selective of the work we take, put current clients as a priority, or we’ve had to tell people that it will be a longer wait. This has never been our business model. We’ve always strived to take any job that In a 2015 NAHB survey of comes our way, builders, 69% reported but when it’s just labor and subcontractor my husband and shortages for those willing one technician doing the work to do rough carpentry as we can only do so either serious, or that they much work,” Lisa are seeing some shortage. shared. Lisa would like to see high schools putting more of an emphasis on trades and trade schools when discussing options
In the meantime, if you’re a high school student or a parent of a high school student who isn’t suited for the four-year track, or an individual that is looking for a rewarding career, look into technical education, construction jobs, or apprenticeships today!
Chalk Line • 9
Government Affairs Highlights Olympia Master Builders (OMB) is currently working on and/or monitoring many issues related to the building industry.
Here are a few recent highlights:
City of Olympia
Low Impact Development Code Regulations – The
State Department of Ecology is the agency charged with implementing the federal Clean Water Act. Part of their charge is issuing stormwater permits to local governments, and the agency is now requiring all local governments to adopt codes and standards that make low impact development the “preferred and commonly-used approach to site development” by December 31st, 2016. Low impact development (LID) is an approach to land development that works with nature to manage rainwater as close to where it falls as possible. Smaller scale, dispersed stormwater filtration areas on-site more closely mimic how water would move through an undisturbed, forested ecosystem. In practice, LID includes structural practices such as permeable pavements, green roofs, bioretention and rain gardens, as well as LID development principles like maximum impervious surface standards and native vegetation requirements. Obviously, adopting these new LID standards will have a substantial effect on all construction activity in the City of Olympia. OMB staff is currently monitoring the City’s LID code development process for any abnormal or unduly burdensome new requirements. The City of Olympia has been very proactive in adopting LID standards and codes over the last 15 years, so the changes shouldn’t be as pronounced and impactful as they may be in other local jurisdictions.
Pacific County
Shoreline Master Program Update Process – Pacific
County is currently in the process of updating its Shoreline Master Program. The County plans to submit a final version of the SMP to the Department of Ecology for approval by Summer 2016. All Counties are required by the Department of Ecology to update their SMP. Each local government is on a different update schedule. The SMP dictates what type of development activities can happen in the 200 feet from a water body’s edge. To put this in perspective; a hockey field is 200 feet and a football field is 300 feet. The SMP priority is to balance development and economic activity with public access, enjoyment of shorelines, water related activity and no net loss of ecological function. OMB staff is currently reviewing draft documents and will make comment as necessary. To get more involved in the OMB Government Affairs Program, contact Troy Nichols at troy@omb.org or (360) 754-0912. 10 • Chalk Line
OMB Hires A New Government Affairs Director
J
oshua Deal has been offered and has accepted the position of Government Affairs Director at Olympia Master Builders.
passion for politics and public policy, his ability to “speak the lingo” when talking about business issues, and his ability to communicate effectively.”
Joshua has a well-rounded background, first interning in Congresswoman Cathy McMorris Rodgers’ office, then working for Spokane Mayor David Condon, and finally serving as the public policy coordinator for Greater Spokane Inc., the local chamber of commerce and economic development department.
Joshua will start with OMB on September 1st and will hit the ground running!
According to OMB EO Troy Nichols, “What stood out about Joshua is his
You are encouraged to stop by the office and introduce yourself to Joshua, and talk to him about issues affecting your business. Also make a point of welcoming Joshua when you see him out and about at local government meetings!
OMB’s new Government Affairs Director, Joshua Deal will start on September 1st.
Are you an Olympia Master Builders member who doesn’t qualify for the Building Industry Association of Washington (BIAW) Health Insurance Program? o, If s B OM hoice C lth eet a e H an m ds! c nee r u yo
te quo ison e e par a fr For an com t: rs pl ntac Builde o r and c ste Ma .0912 a i mp 754 Oly 360.
OMB
Health offers Choice :
• Plan s for s elf individ employee d uals • Gro betwe up plans fo r en 1-1 ,000 ebusinesses • Hea mploy lth Sav ees ings A ccount • Hea s ( HSA) lt Arrangh Reimburse ment ement s (HRA ) • and more
• OMB Health Choice will provide you with customized plan comparisons and quotes from top-rated insurance companies. • Even if you’ve recently renewed your current group health plan, you can move to a better policy at any time of the year. The transition is easy and seamless-even deductibles are credited from your old plan to your new one. • Members will recieve one-on-one customer service from a local agent to assist with questions, enrollment, and claims issues--saving our members time and money.
OMB is not a licensed insurance agency and cannot provide benefit details or advice on which health plan will meet our members needs the best. All insurance plans offered through the OMB Health Choice program are provided through a licensed agent.
Chalk Line • 11
Welcome New Members Thank You Renewing Members Joined June-July 2015
Renewed June-July 2015
DO BUSINESS WITH A MEMBER TODAY!
DO BUSINESS WITH A MEMBER TODAY!
Sterling Breen Crushing Shari Brown 887 State Route 507 Centralia, W.A. 98531 (360) 736-4240 shari@steerlingbreen crushing.com Spike: Becky Rieger
E N B Logging & Construction, Inc Connie Bryant P O Box 1485 Chehalis, W.A. 98532 360-740-2465 enblogging@q.com Spike: Harv Lillegard
Kinetico Home Water Systems/ Water Doctor of Washington, Inc. Cheryl Mclean 2556 Jackson Hwy Chehalis, W.A. 98532 (360) 748-6393 cmclean@kineticopnw.com Spike: Harv Lillegard
Olympic Moving & Storage Dave Grey 1017 S. 344th st Federal Way, W.A. 98003 (360) 753-2344 daveg@olympicmovers.net Spike: Karen McClennen
Auto Tech Services Leon Martin 18225 Pendleton St. SW Rochester, W.A. 98579 (360) 273-8306 autotechleon@gmail.com Spike: John Johnson, CAPS, CGP, CGB Gary’s VACUFLO Inc. Michael Geisen 11509 Steele Street S Tacoma, W.A. 98444 (253) 426-1591 mgeisen@garysvacuflo.com Spike: John McKinlay The Red Door Group Keller Williams South Sound Rae Anne Toth 1217 Cooper point rd #5 Olympia, W.A. 98502 (360) 790-1848 raeannetoth@kw.com Spike Debbi Boyd A.S.E. Painting, LLC. Marcus Sanders 9721 Yelm Hwy SE Olympia, W.A.98513 360-742-2335 marc@asepainters.com Spike: Mike Auderer Johnston Construction RW, LLC Richard Johnston P.O. Box 65804 Tacoma, W.A. 98464 253-473-3997 sales@johnstonconstruction.net Spike: Holly Constantine
12 • Chalk Line
Professional Stone Products, LLC Charles Grimmer 2621 Mottman Ct SW STE F Tumwater, W.A. 98512 (360) 489-0763 charles@pspwa.com Spike: Heather Burgess Michael’s Roof Service Michael Johnston P.O Box 352 East Olympia, W.A. 98540 360-239-1936 michaelsroofservice@gmail.com Spike: Holly Constantine Lennar William Salvesen 33455 6th ave s. #1-B Federal Way, W.A. 98003 (253) 219-1355 bill.salvesen@lennar.com Spike: Karen McClennen Conwell Investments, LLC Mark Conwell 2415 Carpenter Road SE Lacey, W.A. 98503 (360) 438-0525 User772574@aol.com Spike: Heather Burgess Ward 5 LLC Michelle Ward 16335 Richmont Ct SE Yelm, W.A. 98503 360-239-5197 ward5llc@yahoo.com Spike: Mike Auderer
25+ years Lew Rents Company Sandrini Const. & Remodeling, Inc. 20-25 years W.E. Davis Company, Inc. Truss Components Olympic Heating & Cooling, LLC Olympia Overhead Doors Northwest Design & Dev. Lew Rents West, Inc. Hamilton Properties, LLC DJ’s Plumbing, LLC CH2O,Inc. Boyd’s Plumbing Adroit Contractors, Inc. 15-19 Years: Sunlight Woodenworks, Inc. Oman & Son Bldrs. Supply, Inc. John’s Plumbing & Pumps, Inc. John J. Karnas Co. D.J. Hartman Homes, LLC Chehalis Sheet Metal Heating Cooling & Roofing, Inc. 10-14 Years J R Applications, Inc. Willapa Logging Co., Inc. Madsen Electric, Inc. Lane French Construction J & S Holding Company Great Floors Brodie Heck Construction, Inc. House Brothers Construction, Inc. Brown Building Contractors Huttmann Electric, Inc.
5-9 Years A Glass Enterprise, Inc. Turner Insulation, Inc. Olympic Iron Works, LLC Little River, Inc. Custom Source Woodworking, Inc. Coldwell Banker Carnahan’s Pest Control Co. C.T. Building, Inc. Sunrise Landscaping & Tree Removal, LLC Cabinets by Trivonna 2-4 Years Scherer Trucking & Excavation NR Smith and Associates, PS Randle Woods Woody’s Septic Specialties, Inc. Trimtek, Inc. Polar Bear Construction Pacific Air Heating & Air Conditioning, Inc. J.R. Roofing, Inc. Bud’s Lumber & Electric One Year Exeltech Consulting, Inc. MB Electric, LLC Altman Insurance Agency G.M. Solum General Contractor Benchmark Communities J. Kerzie Homes LLC CRMA
Insurance Provides Peace of Mind for Contractors and Clients
W
hether you are building a Tour of Homes masterpiece or remodeling a once avocado green bathroom of the seventies, your understanding of insurance provides peace of mind for both the builder and home owner. Your knowledge of insurance products, or meeting with a trusted insurance adviser, makes a dramatic difference in your client’s experience and possibly your contractor liability. While there are several variables to insurance, consider these four facts that affect home insurance while building a house or remodeling an existing home with current insurance.
Before breaking ground on a new house, have a Course of Construction Insurance Policy in place to mitigate loss.
We hear the stories. The windows were delivered to a worksite on a Monday, yet they are nowhere to be found on Tuesday. The Course of Construction policy covers the worksite for theft, fire and vandalism. The home owner can easily transition the policy from Course of Construction to a full Homeowner policy that is in place at closing with the lender.
Meet with an insurance agent to review Liability Coverage to determine any potential gaps.
You need to know if the homeowner has enough liability, or if your Contractor’s Liability Policy will cover worksite exposure. For example, if someone trips and falls on the job site, you need to be clear which insurance covers the potential loss. By reviewing your policy alongside the Course of Construction Policy, you won’t cringe as much when you catch the inevitable neighborhood kid sneaking onto the site to climb the construction equipment.
During an extensive remodel project, homeowners may need to change their current homeowner policy to a remodeler’s policy. This simple change protects from potential exclusions of coverage if there is a claim related to the course of the remodel. For example, the policy may need to be used if there is unfortunate water damage during a remodel involving the roof, or fire during the remodel with extensive electrical involved. By offering this insurance information to your client, you increase their trust in your expertise, while showing quality and caring for their protection.
Consider the building ordinance updates since a home was originally built, if you are involved in rebuilding a portion of a home following a large claim.
While this isn’t something you may think about every day, if insurance is involved in the rebuild of a home, consider the current building standards. For example, when only a portion of the home burns and is then rebuilt, the building inspector will still make certain the house meets the current building ordinances beyond the scope of the original insurance claim. Therefore, if the house was built with seemingly pre-historic outlets, it may not pass current building ordinances. Fortunately, many insurance policies can include ordinance upgrades as part of the policy. Therefore, even portions of the home unaffected by the insurance claim would be updated to meet the ordinances and pass the overall building inspection. By working with insurance professionals who are members of the Olympia Master Builders, you know
By Diane Altman, owner/agent Altman Insurance Agency 360-705-0466 they understand your liability exposure while you build or remodel the houses throughout Thurston County. Meet with your insurance agent at least once a year to review your Contractor’s Liability as well as anytime you are taking-on a job and need to understand the best protection for yourself and the client. Know your insurance options and gain information about Course of Construction Policies, possible liability gaps between homebuilder and homeowner, remodeler’s policies, and ordinance upgrades to insurance policies. Becoming knowledgeable and meeting with a trusted insurance adviser will make a dramatic difference in your client’s experience and their confidence in your expertise.
Altman Insurance Agency is family owned and has served Thurston County since 1991. We are proud of our longtime membership in the Olympia Master Builder’s and specialize in working with contractors.
Chalk Line • 13
OMB’s Golf Tournament is Right Around the Corner 5 1 0 2
OMB
The Golf Club at Hawks Prairie The Woodlands Course 8383 Vicwood Lane, Lacey, WA Friday, September 25 8:30 am Shotgun Start Main Event Sponsor:
Awards Banquet Sponsor:
GOLF TOURNAMENT The 2015 Golf Tournament theme is “Ultimate Tailgate” and players will be encouraged to dress up in support of their favorite football team! Team gear other than the Seahawks will be allowed on the course and we will try to keep the heckling to a minimum. Even OMB’s EO, Troy, will be allowed to wear his hideous 49ers gear. Rumor has it, Troy specifically sponsored the Women’s Closest to the Pin at the tournament so he could honor his favorite team....sorry ladies! The sponsorships sold out quickly and all the sponsors are excited about keeping players entertained throughout the day. The 2015 Golf Tournament Chair Jamie Eklund of Lew Rents Company thanks all the companies that stepped up to sponsor and make the day a fun and exciting one! Tickets are $125 a person and include a golf cart and lunch. The early bird prices of $90 ended on August 28 but if you call the office on Wednesday, September 9, ask for Troy and shout “ (insert company name) LOVES THE HAWKS,” you can receive the early bird pricing. If you are interested in playing, please contact the OMB office at (360) 754-0912 or visit omb.org for a registration form!
TOURNAMENT SPONSORS:
Main Event - Pro-build Awards Banquet - Chicago Title Thurston County Caddy Pack - Frost and Company, PS Drink - Lew Rents Company Drink - Johnson Custom Homes, LLC Goodie Bag - Washington Business Bank Hole-in-One - Mullinax Ford Mega Putt - Labor Works, Inc. and Milgard Windows & Doors Men’s Closest to the Pin-Lew Rents Company Men’s Longest Drive - Steel Structures America, Inc. Practice Green - Capital Heating and Cooling Women’s Longest Drive - Whitehouse & Nichols Attorneys at Law Women’s Closest to the Pin - Troy Nichols, Executive Officer 14 • Chalk Line
HOLE SPONSORS: 96.9 KAYO & AM 1240 KGY Black Hills Inc. Chehalis Sheet Metal Heating Cooling & Roofing, Inc. Chicago Title Insurance Company Hung Right Doors, LLC Lowe’s of Lacey Naberly Nicholson and Associates Insurance, LLC Olympia Federal Savings Pacific Stone and Floors Pro-Build Sunset Air, Inc. Tags Awards & Specialties Washington Business Bank Williams Onsite, LLC
Return On Industrial Insurance
R.O.I.I. Select ®
As one of the oldest and largest retro groups in the state, the R.O.I.I.® program has returned over $400 million in retro refunds to participating construction-related companies. R.O.I.I.® Select can help you lower your workers’ comp costs and build a better, safer company.
Make real change. Call R.O.I.I.® Select Marketing Manager Lara Hastings at (360) 352-7800, ext. 171 or visit BIAW.com for more details on how you can apply.
111 21st Avenue SW • Olympia, WA 98501 • (360) 352-7800 • BIAW.com
1211 STATE AVE. NE OLYMPIA, WA 98506 $1.25 per copy 360-754-0912 800-456-6473 www.omb.org
Don’t trash it - donate it! Habitat for Humanity now accepts donations at the Thurston County Waste and Recovery Center at 2420 Hogum Bay Road NE in Lacey. Your donation supports Habitat’s mission, keeps valuable resources out of the landfill, saves on trash disposal costs, and is tax deductible.
A CENTURY OF HELPING OTHERS. HOW CAN WE HELP YOU?
For information, call (360) 956-3456 or visit ThurstonSolidWaste.org/greenbuilding
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