September/October 2005
© 2003 Andersen Corporation. All rights reserved. 3079PC.
The window on the left was built in the 1930s. The one on the right, last week. Or was that vice versa?
Andersen® 400 Series Woodwright™ double-hung windows blend traditional style with Twenty-First Century technology. For the perfect look, choose from oak, maple or pine in standard sizes or custom dimensions for renovations. Visit andersenwindows.com or contact the dealer below.
L O N G L I V E T H E H O M E®
For complete information on the full line of Andersen SM products contact these Andersen Excellence Dealers.
A.D. Moyer Lumber, Inc. All Locations
Klinger Lumber Co., Inc. Elizabethville
Strober-Haddonfield Group Easton
www.admoyer.com 610-367-2036
717-362-3311
610-252-6190
Kohl Building Products All 8 Locations
The Lumber Yard All Locations www.thelumberyard.com
717-469-2024
www.kohlbp.com 800-578-5645
Fagen’s Building Centers, Inc. Pittsburgh
Lezzer Lumber All Locations
412-323-2100
www.lezzer.com 800-326-9562
Crakare Supply Grantville
J.H. Brubaker, Inc. All Locations 800-723-5546
MRD Lumber Co. Both Locations
Walter & Jackson All Locations www.walterandjackson.com 610-593-5195
Werner Lumber Co. Pine Grove 570-345-2561
570-366-0578
John H. Myers & Son All 6 Locations www.jhmson.com 800-637-0057
Stock Building Supply Myerstown & Paradise
Windowizards All Locations 800-220-8707
www.stockbuildingsupply.com
Andersen Windows, Inc. 100 Fourth Avenue North, Bayport, MN 55003 1-800-426-4261
T H E C O M M O N S E N S E B A S E M E N T F O R Y O U R H O M E. Floor Framing Sys tem
Insulation
Steel Reinforcement Damp Proofing Water Proofing
Clean Backfill
Grout
Clean Stone
Concrete Floor
Filter Fabric
Drain Tile
Drain Tile to sump pump Concrete Footing
Steel Reinforcement
(op tional)
Concrete Footing
(op tional)
Drain Tile
Think SMA RT - increase your living space with a cos t ef fective, energ y ef ficient and DRY concrete block basement .
ECONOMICAL + ENERGY EFFICIENT + MOLD RESISTANT + STRONG & DURABLE CONCR ETE FOOTING
INSU LATION
+ Co ntinu o us solid base fo r the b eginning of the co ncrete blo ck basem ent system.
+ If insulatio n is req uired, it can b e e asily installed o n the interio r, exterio r o r insid e of the co ncrete blo ck wall. There are thre e climate zo n es in PA with a minimu m req uirem ent of R9. Thro ugh the U S Governm ent a utho rized software program, RES che ck, trad e offs fo r the am o u nt of insulatio n are d e p end ent o n other b uilding elem ents. These elem ents inclu d e b ut are n ot limited to wind ows, d o o rs, he ating and air co nditio ning eq uipm ent.
+ S oil b e aring ca pa city must b e a minimu m of 1500 psi.
CONCR ETE B LOCK + Use certified ASTM C90 lo ad b e aring u nits. Test re p o rts are availa ble by req u est.
R EINFORCING STEEL & GROUTING + US Grad e 60 is the minimum requirement for steel reinforcing bar. + When req uired, reinfo rcing ste el sho uld b e pla ced in the insid e third of the blo ck co re and that co re filled solid, full height with the pro p er gro ut.
DR AIN TILE & STONE FILTER FA B RIC + Helps ke e p the water away fro m the fo u ndatio n and must b e pla ced b elow the to p of the fo oting. + Drain tile can also b e pla ced insid e the str u ctu re b elow the co ncrete flo o r and covered with a pproved filter m embran e.
DAMP - PROOFING / WATER PROOFING
+ The drain tile is pla ced o n a minimu m of 2 inches of cle an cr ushed sto n e with a minimu m of 6 inches of cle an cr ushed sto n e pla ced a b ove to p of the fo oting. + Filter fa bric is pla ced o n to p of the sto n e to se parate the sto n e fro m the ba ckfill.
+ Must b e a pplied to the exterio r of the wall fro m the to p of the fo oting to the finished grad e.
BACKFILL
+ These are req uired by the IRC and several typ es of materials can b e used.
+ Use cle an ba ckfill and slo p e grading away fro m the ho use as dire cted in the IRC.
MORTA R + Typ e S o r M m o rtar sho uld b e used in m o rtar joints.
PENNSYLVANIA A CONCRETEE MASONRY Y ASSOCIATION PO B ox 4 • Le ban o n, PA 17042 Pho n e: 717-279-6346 • Fa x: 717-272-5147 • Email: jlb oyer@nbn.n et The Internatio nal Resid ential Co d e (IRC) is a minimu m standard. Che ck yo u r lo cal mu nicipality fo r additio nal co d e req uirem ents.
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Additio nal co nstr u ctio n2005 d etails will b e n e ed ed fo r co d e co mpliance. Illustratio n n ot to scale. I Keystone Builder • September/October
Fo r a listing of o u r m emb ers visit:
www.pacma.com
Keystone
Official publication of the Pennsylvania Builders Association®
Volume 2 • Issue 5 September/October 2005
b u i l d e r 10
21 24
Contents
10
PaCAH Fund-raiser
13
Seas of Change
16
In My View
Three PaCAH fund-raising events exceed expectations, raising a total of $35,000 to support the Pennsylvania Committee for Affordable Housing.
®
PRESIDENT James L. Conner Lawrence County BA, Mercer County BA VICE PRESIDENT Bradford H. Elliott HBA of Bucks/Montgomery Counties
Builders, remodelers and associates ride the wave of new technology and find that there are significant business benefits to getting on board.
ASSOCIATE VICE PRESIDENT Mary Pucciarella, Blair County BA TREASURER Kenneth L. Medina, Lebanon County BA SECRETARY Stephen D. Black, BIA of Lancaster IMMEDIATE PAST PRESIDENT Scott H. Cannon HBA of Chester/Delaware Counties
KEYSTONE BUILDER is published six times per year by the Pennsylvania Builders Association, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. POSTMASTER: Send address changes to Pennsylvania Builders Association, 600 North Twelfth Street, Lemoyne, PA 17043. SUBSCRIPTIONS: Subscriptions available through membership to the Pennsylvania Builders Association.
State Representative Tom Stevenson discusses how the “Requirement to Repair” law will benefit Pennsylvania consumers and builders.
Departments President’s Column • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 6 Association News • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 8 Legally Speaking • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •16 Remodelers Update • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 18 Builder Case Study • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 21 New Product Corner • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 24 Builders News Briefs • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 26
Members-Only Section Chesapeake Bay Tributary Strategy: Find out what Pennsylvania’s plan for improving the water entering the Chesapeake Bay will mean for builders. • • • • • • • • • • • • • A On the Hill: Up-to-date legislative information for our members. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • C
President’s
Keystone
Official publication of the Pennsylvania Builders Association®
b u i l d e r An Exclusive Publication of the PBA Keystone Builder magazine is published six times a year by the Pennsylvania Builders Association®, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. With the exception of official association announcements, the statements of fact and opinion that are made herein are the responsibility of the authors alone and do not reflect an opinion or philosophy of the officers or the membership of the PBA. Materials may not be reproduced without written permission from the PBA headquarters. Address Correspondence To: Keystone Builder 600 North Twelfth Street Lemoyne, PA 17043 Phone: 800-692-7339 or 717-730-4380 Fax: 717-730-4396 Web: www.pahomes.org
“Requirement to Repair” Can Help PA Consumers, and That Helps Builders James L. Conner or months, you’ve heard mention about how the PBA is advocating for Requirement to Repair legislation in our state. From my travels meeting with members, I recognize that many of you may not understand how this proposed construction dispute resolution process would work, or why we think it’s so important. It’s vital our members understand this issue, because we need your support. As Woodrow Wilson once said, “We cannot be separated in interest or divided in purpose. We stand together until the end.” We need “Strength in Unity” to get this legislation passed. So let me convince you why this legislation is good for our customers and, in turn, for builders.
F
A Strong Customer Focus Advertising does not imply acceptance or endorsement of the products contained in the publication. Publishing and advertising sales services provided by:
2929 Davison Rd. • Flint, MI 48506 Phone: 800-935-1592 Fax: 810-239-2231 Editor Scott Elliott Assistant Editor/Publication Director Jennifer McDermitt Advertising Sales Jeff Pinwar Graphic Design Jason Gabel For information on advertising in the Keystone Builder please contact Jeff Pinwar at 800-935-1592. Please support the advertisers who have made this publication possible.
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Message
Currently, when new homeowners have concerns about a perceived construction defect, their only option is to file a lawsuit. Those lawsuits can take years to resolve, and in the meantime,e their problem goes unresolved. Plus, even once the lawsuit is settled, it’s quite possible that when legal fees are subtracted from the final award, the dollar settlement won’t cover actual repairs. From the builder’s perspective, this is an unacceptable situation. Any time our customers are unsatisfied with a new home to which they’ve just taken the keys, it hurts our entire industry. Customer satisfaction is job one. Our proposed Requirement to Repair dispute resolution process would provide a tremendous opportunity to meet that goal. We builders have an additional concern that this legislation will help address: rising general liability costs. Admittedly, this situation is worse in other states. But why do we have to wait for this problem to become an epidemic to address it here? By lowering the number of construction defect lawsuits, Requirement to Repair legislation
I Keystone Builder • September/October 2005
PBA President will stem the increases we’re seeing in insurance costs. For those who may have doubts that the Requirement to Repair process will work, read on. We have proof. For starters, 27 other states have passed similar legislation — more than half the states in the country. It’s working in those states, and it can help consumers here, too.
Convincing Evidence One of the more recent states to pass such legislation — Colorado — provides concrete evidence that Requirement to Repair will deliver on its promises. Consider this: • The number of construction-related lawsuits in Colorado has dropped by 60 percent. • Consumer complaints are being resolved more efficiently, about half within six months. • Nearly two-thirds of all cases do not involve cash awards, demonstrating the needed repairs are being made. • Finally, the number of dispute cases actually has risen, indicating that homeowners find the resolution process easy to use and preferable to litigation. So how exactly would the process work? It’s simple, really. The law would establish a 75-day process for communications back-and-forth between the customer and the builder should a dispute arise. It would define a timetable for how long each party has to respond to the other, and it would define each party’s options during each step. When disputes arise regarding home construction issues, emotions usually run high. The Requirement to Repair process would take emotions out of the process by laying out
a clear-cut communications process, defining each party’s obligations and requiring communications in writing. Plus, litigation would always remain an option if all else fails. In fact, the threat of litigation would provide strong incentive for both parties to give the Requirement to Repair process their best effort. Would it work in all cases? Perhaps not. But the evidence from the around the country is that it could make a powerful difference. It would produce more satisfied customers, and it would keep more builders out on their job sites instead of in court — and isn’t that really where you want to be? Because its only when you’re building homes that your business remains strong.
The Legislative Campaign Support for Requirement to Repair is growing. More than 40 legislators on both sides of the aisle have put their names on the House and Senate bills as original sponsors. But we do have opponents who feel threatened by this change in the status quo. Groups like the Pennsylvania Bar Association, the Community Associations Institute and the Pennsylvania Trial Lawyers Association contend that the bill is one-sided — that it will only help builders. In fact, as the result of our discussions with all these groups, we’ve suggested changes to the legislation to address their concerns. As it currently stands, this legislation is both consumer- and builder-friendly. It’s the classic win-win. Now here’s where you come in. We must spread the word that “Requirement to Repair” is good for Pennsylvania. Contact your legislators and voice your support for House Bill 1467 and Senate Bill 656. Write letters to the editor of your local newspaper. Encourage your friends, family members and employees to do the same. If you need additional information to support your case, visit our Web site at www.pabuilders.org and click on “Press Room” and then “Housing Issues,” or call our Government Affairs Division. I often take counsel in the wisdom of our nation’s leaders. Like the words of Andrew Jackson who once wrote: “Take time to deliberate; but when the time for action arrives, stop thinking and go in.” The time for action by our united membership is now. By showing Strength in Unity, we can get Requirement to Repair legislation passed into law. I hope I can count on your participation. ▲ September/October 2005 • Keystone Builder
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Association ASSOCIATION NEWS Continued from page C
News
PBA Remains Vigilant Against Threats to UCC by Allison Martin s news stories nearly every day proclaim, the nation and our state continue to enjoy economic benefits from an extended housing boom. Last year, for instance, there were more than 40,000 housing starts in Pennsylvania. The state’s builders are on a similar pace this year. During this period of rapid housing growth, the public can rest assured that the new homes currently being build across the commonwealth are solidly constructed. Thanks to the requirements of the Uniform Construction Code (UCC) in Pennsylvania, these new homes are of overall higher quality, are more energy efficient and are safer than the homes of previous generations. On behalf of its members, the Pennsylvania Builders Association (PBA) continues to carefully monitor local building ordinances that would exceed the requirements of the UCC. By doing so, the PBA ensures that the value of the Code to builders and homeowners is not weakened by unnecessary local regulations that would return the state to a patchwork of building standards — the situation that existed before the UCC became law in 2004. At this time, the PBA is in the process of challenging municipal ordinances in Carroll Valley, Schuylkill County and Washington, Pa. Earlier this year, on March 3, the state Department of Labor and Industry upheld an ordinance in Carroll Valley that requires residential sprinklers in new homes built in the borough. The PBA appealed that decision to the Adams County Court of Common Pleas on June 15. That case remains outstanding as the court has not yet rendered its decision. In Schuylkill County, hearings began July 13 for the PBA’s challenge of an ordinance in that municipality requiring sprinklers in all new buildings, including single-family homes. That hearing is quite extensive and, as of press time, was scheduled to continue on Aug. 19 and 26. Elsewhere, the city of Washington, Pa. has placed a PBA-challenged fire suppression ordinance on hold. The borough of Marcus Hook in Delaware County recently passed an ordinance requiring sprinklers in all buildings except singlefamily homes. The PBA chose not to
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challenge that ordinance because it was the association’s determination that the Marcus Hook situation fit the criteria that a municipality must meet in order to pass an ordinance that exceeds the UCC. This case demonstrates the reasonableness of the PBA’s UCC integrity program, which is only targeting for challenge those municipalities that propose ordinances unnecessarily exceeding the requirements of the state’s Uniform Construction Code. During the PBA’s July board meeting, board members voted to approve a list of 14 “UCC Fix-it” items that had been passed earlier that week by the Governmental Affairs (GA) Committee. The list includes several items the GA Committee identified as needing changes to address shortcomings in the implementation of the UCC. Some of the issues covered in the 14-item, fix-it list include a UCC amendment affecting water/sewer laterals, the excessive ordinance challenge process, the application of the Code to detached miscellaneous-use structures, the relevance of the Code in the case of non-structural alterations
and repairs, the involvement of third-party inspectors, and the information to be included in code inspection violation notices. During the July meeting, board members also voted to approve an additional $50,000 from the Industry Action Fund to allow the PBA to continue to challenge municipal ordinances across the state that exceed the requirements of the UCC. Additionally, the members approved a motion to spend part of that $50,000 on amicus briefs regarding thirdparty inspector cases in Westmoreland, Fayette and Erie counties. If you learn about a new building ordinance proposed in your area that would exceed UCC requirements, please contact Doug Meshaw with the PBA’s Association Member Services division at (800) 692-7339, ext. 3007, or by e-mail at dmeshaw@pabuilders. org. With the active involvement of its members, the PBA will continue to challenge all unnecessary exceptions to the UCC and, thereby, protect the value of the state’s uniform building code for the construction industry and the home-buying public. ▲
Put On Your Detective’s Cap: The PBA staff recently discovered this old photograph in our association archives, and we’d like your help identifying a person we believe is a former PBA leader, as well as the location of where the picture was taken, if possible. The first member to accurately identify the mystery person in this photo will receive a gift bag of popular PBA merchandise (valued at more than $25) and recognition in the next Keystone Builder magazine. The only clue we can provide is the identity of the three other people, who are (L to R): former state Senator Graybill Diehm from Lancaster County, former Senate President Pro Tempore Harvey Taylor from Dauphin County, and former Senate Majority Whip Albert Pechan from Armstrong County. The tall man on the far right in the dark suit is someone we believe to be a former PBA leader. Can you name him? Please send all entries to Lou Biacchi at lbiacchi@pabuilders.org or call (800) 692-7339, ext. 3018.
I Keystone Builder • September/October 2005
Copper Development Association
DO IT PROPER. DO IT COPPER. For technical assistance, training or promotional materials, contact:
Dale L. Powell REGIONAL MANAGER Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, D.C., West Virginia
P.O. Box 6687 Harrisburg, PA 17112-0687 Phone: 717-533-0353 Fax: 717-533-1688 E-mail: dpowell@cda.copper.org CDA is the information, education and technical development arm of the copper, brass and bronze industry in the United States.
Mitchell Isert (856) 829-0592
WHIRLPOOL / KITCHENAID / ROPER HOME APPLIANCES
September/October 2005 • Keystone Builder
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Poker run riders take a break at Whipple Dam State Park near Huntingdon, Pa.
PBA members and their families donned Hawaiian clothes and partied the night away during the Big Kahuna Beach Bash.
t the end of the day on Friday, July 22, the ear-to-ear grin on PBA President Jim Conner’s face told the whole story. All three PaCAH fund-raising events had bested expectations, raising a total of $35,000 to support the Pennsylvania Committee for Affordable Housing. (See sidebar story for the tale of the numbers.) At 1 p.m., the PBA kicked off two outstanding events: a motorcycle poker run and the PBA Builders’ Cup golf tournament — both brand new events for the PBA! The
Jim Rumbaugh, BA of Metro Pittsburgh, and Scott Cannon, PBA immediate past-president and member of the HBA of Chester & Delaware Counties, show off their new friend.
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poker run and golf tournament came off without a hitch and generated a positive vibe for the big evening event, the Big Kahuna Beach Bash, which ran from 6 p.m. until 11 p.m. The bash was a big hit, offering five full hours of delicious Hawaiian food, Polynesian music and entertainment and endless fun activities.
Just as important to PBA President Jim Conner as the money raised was the impact the three events played in bringing Pennsylvania builders together in solidarity — building “Strength in Unity.” As anyone who attended can attest, the day’s activities brought members closer and generated great memories for everyone involved. ▲
Members of the BA of Northwestern PA, the first foursome to win the PBA Builders’ Cup, show off their trophy. (L to R) Charlie Kasko, Jim Grieshober, John Maleno and Greg Ashton.
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I Keystone Builder • September/October 2005
PBA President Jim Conner of the Lawrence County BA takes his turn in the dunk tank.
Thank You to our PaCAH Partners he PBA would like to raise a salute to our Premier Partners and special event sponsors for their assistance making these events possible. The good times, and the tremendous success in raising money for PaCAH, would never have been possible without their generous support.
T Don Sell, Joe Capellupo and Cliff Kline of the HBA of Berks County relax in their golf carts before heading out on the course.
Putting contest winner Harry Bell of the Greater DuBois Area BA sunk two 50-foot putts to win the $200 prize.
Marty Gillespie of the BA of Metro Pittsburgh hangs 10 on the mechanical surfboard.
Associate Vice President Mary Pucciarella of the Blair County BA gets dunked, but not before raising $1,600 for PaCAH.
Thank you to our Premier Partners: Builder Expo — Nov. 17, 2005 Capital Blue Cross Eckert Seamans Federal Home Loan Bank of Pittsburgh PNC Bank USI Colburn Thank you to our PaCAH event sponsors: American Sentinel Insurance Group Audiomax Blue Cross of Northeastern PA Brookside Lumber Carpet & Tile Liquidators Conrad Siegel Actuaries Eastern Alliance Insurance Group 84 Lumber Heat & Glo Fireplaces Keystone Builder magazine Legg Mason SEI Simon Lever Stephens & Lee United Concordia
Members of Tuika’s Polynesian Island Magic performed throughout the night during the Big Kahuna Beach Bash. PBA President Jim Conner of Lawrence County BA shakes hands with Curtis Lentz of the Indiana-Armstrong BA at the end of the poker run. Conner and Lentz worked together to plan the event.
September/October 2005 • Keystone Builder
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I Keystone Builder • September/October 2005
by Jennifer McDermitt very couple of decades, some pioneering technology comes along that dramatically changes the way people do business. For most people in the building industry, this has been happening a lot more frequently lately than just “every couple of decades.” It seems as though, every couple of years, something new comes out that bills itself as the latest and greatest. It can be intimidating and confusing to try to know which technological advancements can help you run your business and which ones are just a waste of money. Whether you are a small builder, large builder, remodeler or real estate agent, there have been some significant advancements in technology that can help you run your business smoother and more efficiently. Here are four stories from people around the state who are successfully incorporating technology into their businesses. Their stories are proof that no matter your profession or company’s size, riding the wave of new technology can dramatically benefit your business.
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Small Builder Builds a Home From Afar When Jim Conner, owner of Conner Construction, PBA president and member of the Lawrence County BA, was first hired for a home addition, he never could have imagined that he would finish almost the entire job without the customer seeing any of it. However, thanks to a digital camera and e-mail, Conner was able to do just that. “The customer was relocating to Lawrence County from Philadelphia and had purchased a local home from a Realtor,” said Conner. “He needed additional space in the home and wanted to add 840 square feet with a wrap-around porch.” The customer asked his Realtor for a builder referral, but the builder he was referred to didn’t handle additions, so Conner’s company was mentioned. Conner met with the customer and his wife and, after only 45 minutes of discussion, Conner was hired for the job.
I never could have imagined I would be using a PDA (personal digital assistant) or a laptop. Now, I can’t imagine my life without them. In fact, I am looking into purchasing BlackBerry devices for my company, and that is pretty big stuff for a small builder like me. You just don’t realize the potential of your business until you embrace technology. — Jim Conner, owner of Conner Construction, PBA president and member of the Lawrence County BA
Continued on members only page B
September/October 2005 • Keystone Builder
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I Keystone Builder • September/October 2005
THE
CHESAPEAKE BAY ver time, the Chesapeake Bay’s ecosystem has suffered, primarily from excess nutrients (phosphorus and nitrogen) and sediments. This presents ramifications for Pennsylvania builders, because approximately 50 percent of Pennsylvania’s total land area is located in the Chesapeake Bay watershed. Pennsylvania makes up about 35 percent of the total land area covered by the entire Chesapeake Bay watershed. So, part of the solution to restore the health of the bay may have implications for how the state’s builders manage their construction projects. In 1983, the states of Maryland, Virginia, Pennsylvania, the District of Columbia and the Environmental Protection Agency (EPA) entered into an agreement with the Chesapeake Bay Commission (CBC) to protect and restore the waters of the Chesapeake Bay. Then, in 2000, a new agreement was signed by the CBC, by states included in the Chesapeake Bay Watershed, by the District of Columbia and the EPA. The 2000 agreement contained a number of commitments to further ensure the protection and restoration of the Chesapeake Bay.
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In 2000, the Chesapeake Bay was placed on the federal “impaired waters” list, thus requiring a total maximum daily load (TMDL) to comply with the Federal Clean Water Act. The 2000 agreement sought to avoid the TMDL process by achieving water improvements by 2010.
Pennsylvania makes up about 35 percent of the total land area covered by the entire Chesapeake Bay watershed. So, part of the solution to restore the health of the bay may have implications for how the state’s builders manage their construction projects. The 2000 agreement specifically says that “ … by 2010, correct the nutrient and sediment-related impairments in the Chesapeake Bay and its tidal tributaries sufficiently to remove the Bay and the tidal portions of its tributaries from the list of impaired waters under the Clean Water Act.”
Tributary Strategy
Anticipating the 2010 TMDL deadline, the Chesapeake Bay partners have developed nutrient and sediment load allocations and new federal and state water quality standards. The new Chesapeake Bay water quality standards are based on three criteria: dissolved oxygen, chlorophyll-a and water clarity. The Chesapeake Bay partners also agreed to specific reductions in nutrient and sediment loads to the bay. The new reductions were equally distributed between Pennsylvania and other bay states, with each state receiving new cap load allocations. The total nutrient and sediment load then was equitably distributed to each tributary and jurisdiction in the bay watershed.
A Costly Proposition The total capital costs to implement all bay state strategies is estimated to be $28 billion, including $2.7 billion in annual costs for operation and maintenance, incentives and land rentals. Total capital costs to implement the strategy in Pennsylvania are estimated to be $8.2 Continued on members only page D
Nutrient and Sediment Loads Based on 2002 Implementation Total Nitrogen in Pounds per Year
Total Phosphorus in Pounds per Year
Sediment in Tons per Year
Land Use Delivered Load Agriculture . . . . . . . . . . . . . . . . . 53,663,000 Forest. . . . . . . . . . . . . . . . . . . . . . 22,659,000 Point Sources. . . . . . . . . . . . . . . . 12,487,000 Developed . . . . . . . . . . . . . . . . . . . 7,538,000 Mixed Open. . . . . . . . . . . . . . . . . . 7,272,000 Septic Systems . . . . . . . . . . . . . . . 4,023,000 Open Water . . . . . . . . . . . . . . . . . . 1,567,000 Total. . . . . . . . . . . . . . . . . . . . . . 109,209,000
Land Use Delivered Load Agriculture . . . . . . . . . . . . . . . . . . 2,249,000 Forest . . . . . . . . . . . . . . . . . . . . . . . . 117,200 Point Sources . . . . . . . . . . . . . . . . . . 630,200 Developed . . . . . . . . . . . . . . . . . . . . 245,100 Mixed Open . . . . . . . . . . . . . . . . . . . 298,100 Septic Systems . . . . . . . . . . . . . . . . . . . . . . 0 Open Water. . . . . . . . . . . . . . . . . . . . . 40,400 Total. . . . . . . . . . . . . . . . . . . . . . . . 3,580,000
Land Use Delivered Load Agriculture . . . . . . . . . . . . . . . . . . . . 794,200 Forest . . . . . . . . . . . . . . . . . . . . . . . . 193,900 Point Sources. . . . . . . . . . . . . . . . . . . . . . . . 0 Developed . . . . . . . . . . . . . . . . . . . . . 52,500 Mixed Open . . . . . . . . . . . . . . . . . . . . 71,300 Septic Systems . . . . . . . . . . . . . . . . . . . . . . 0 Open Water . . . . . . . . . . . . . . . . . . . . . . . . . 0 Total. . . . . . . . . . . . . . . . . . . . . . . . 1,111,900
Members Only • Keystone Builder
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TECHNOLOGY Continued from page 13
“We were on the same page about a lot of things, and they had heard some nice things about us, so they felt good about going with us,” said Conner. “From that point, I started designing the addition. But since they were so far away, I had to fax the plans to them for approval.” Once the plans were approved, Conner began excavating, and e-mail became his main point of contact with his customer. Because the customer traveled so much for his work, Conner would receive questions and approvals through e-mail, and Conner says although this was a foreign way for him to do a job, it worked out nicely. “I didn’t have much exposure to fax and e-mail before that job, but I got used to it very quickly,” he said. “We did everything by e-mail. The customer e-mailed the bank to cut me checks for the things I needed, he e-mailed questions, and he even e-mailed me the specs on a new television he purchased so I could build a custom entertainment center.” In order to keep the customer’s wife in the loop on the progress of the new addition, Conner says they would take digital pictures and e-mail the photos to her. In fact, the only time the wife ever traveled to see the project was when it was nearly finished and she needed to choose the finishing touches for the interior. “They were great to work with, and I learned a lot about technology by taking on that project,” said Conner. Since then, Conner has discovered other forms of technology to help him run his business. “Electronic communication is the wave of the future. People are busy today, and if they can’t find you on the Internet or communicate with you that way, they lose interest. We have created a Web site, and we find that people often visit it and send us an e-mail. A lot of those contacts end up turning into business opportunities.” Conner says that although he never thought he would be doing some of the things he is doing, he is eager to continue to research new technology now that he sees the benefits. “I never could have imagined I would be using a PDA (personal digital assistant) or a laptop,” said Conner. “Now, I can’t imagine my life without them. In fact, I am looking into purchasing BlackBerry devices for my company, and that is pretty big stuff for a small builder like me. You just don’t realize the potential of your business until you embrace technology.” B
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Large Builder Learns How to Streamline the Process Although technology can make your life easier, it also has a tendency to complicate things — just ask Brad Elliott, owner of The Elliott Building Group Ltd., PBA vice president and member of the HBA of Bucks & Montgomery Counties. After venturing into the world of e-mail, PDAs and cell phones, Elliott was more connected — but felt his life was more complicated. “My partner started using a PDA two years ago, and I swore I would never go there,” said Elliott. “But when I became a senior officer at PBA, they purchased me one, and I got very comfortable with it. My life also has become more e-mail-based over the last four years, and I practically live on my cell phone.”
“You can do business anywhere (with a wireless PDA). When I have a break at a PBA meeting, I can answer e-mail, and my customers have no idea that I am not in the office, sitting at my desk.” — Brad Elliott, owner of The Elliott Building Group Ltd., PBA vice president and member of the HBA of Bucks & Montgomery Counties Elliott says that while these devices have made his business better, they’ve made his life more difficult. “I have one address book on my cell phone, one on my PDA and one in my e-mail. It’s very hard to keep everything straight, and I found myself double-booking appointments. Plus, every time I got a new contact, I have to enter it in three places,” he said. Elliott and his partner decided to make the jump to BlackBerry devices. BlackBerry gives you the functionality of your mobile phone along with e-mail and text messaging capabilities. It allows you to communicate quickly and efficiently, and you can be organized — BlackBerry devices offer a convenient organizer, complete with integrated address book and calendar. And with browser capabilities, you can easily access information on the Web. “With my BlackBerry, I get my e-mails instantly, I only have one address book, and I can answer my calls from anywhere,” said
Elliott. “And, if I am sitting at a light (in traffic), I can get rid of all the junk mail I receive, so that when I am back in the office, I don’t have to deal with it.” Elliott says his BlackBerry has revolutionized his business. “You can do business anywhere. When I have a break at a PBA meeting, I can answer e-mail, and my customers have no idea that I am not in the office, sitting at my desk.” Although Elliott raves about his BlackBerry device, he does note the down side. “As we get more and more into instant communication, we have to learn to turn it off. It’s too easy to work all the time when everything is at your fingertips, and there has to come a time when you just stop. A BlackBerry is great and horrible for Type A personalities,” he jokes. “I don’t know how we ever operated our businesses without technology.”
Remodeler Uses Technology to Handle the Basics Instant communication is one of the most popular reasons business owners incorporate technology into their companies. However, technology also can help with some of the basics of running a company, like accounting, scheduling, tracking expenses and payroll. Barry Dennis, a remodeler and member of the York County BA, spends a lot of time researching and upgrading his computer systems and software. “I started getting into computers back in 1986, which was pretty ahead of most, because I had an interest in technology,” said Dennis. “Back then, the computers were pretty primitive, but for that time period, it seemed amazing.” Dennis hoped to find a computer system and software that would allow him to take a picture of a home and show the customer what an addition to that home might look like. After a lot of research, Dennis discovered the Amiga system, which allowed him to design/build. Now, 10 or more systems later, Dennis still is looking for new software and better systems. “It’s kind of a hobby of mine,” he said. The system Dennis currently is using allows him to maintain the basics of his business electronically. Dennis is able to do expense tracking, production costs tracking, scheduling and accounting. He says that his ability to track costs has made him a better business owner. Continued on members only page D
On the
Hill
PBA and Partners Help Shape Spending Priorities for Growing Greener II orking with its coalition partners — 10,000 Friends of PA and the Pennsylvania Housing Alliance — the PBA was successful in its efforts to have more Growing Greener II funding targeted for urban revitalization and brownfield redevelopment programs. This effort followed on the heels of the public’s May ballot approval of a $625 million bond for environmental projects as part of the state’s new Growing Greener II program. The coalition successfully made its argument to state legislators that urban revitalization projects were worthy of significant environmental funding because of the impact they would have by improving the urban environment and taking development pressure off of rural areas. The list of how the $625 million will be spent during the next six years is as follows: • The Department of Community and Economic Development (DCED) was allocated $50 million — instead of the original $30 million — over six years for Main Street programs and downtown redevelopment related to smart growth. • The DCED will receive $5 million annually for brownfield remediation. • Up to $10 million annually was allocated for a historic preservation tax credit/grant program. The PBA believes this will help its builders/remodelers who work to restore historic home sites. • The General Fund will receive $2.5 million annually for reimbursement of sales tax holidays for sales of energy efficient appliances. This will be particularly helpful to people in remodeling and heating and air conditioning businesses. • The Department of Agriculture will receive $80 million over six years for farmland preservation. • The DCED will receive $90 million over six years for open space conservation.
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PBA Continues to Advance Requirement to Repair Bill The PBA led an informational hearing before the House Urban Affairs Committee
on June 25 regarding the subject of Requirement to Repair legislation. The hearing provided an opportunity for PBA and National Association of Home Builders experts to explain to legislators the potential of House Bill 1467 to reduce constructionrelated lawsuits, hold down building costs and maintain new home affordability. The bill outlines a process, with guidelines and time frames, that would encourage builders and homeowners to work out their differences about construction defects without going to court. During the hearing, opposing comments were made by the Pennsylvania Bar Association, the Insurance Federation of Pennsylvania and the Community Associations Institute.
The PBA believes the only time the government should take land for non-public use is in instances of urban blight — if the owner refuses to improve the blighted property and the municipality has a private developer with an interest in revitalizing the area. After the hearing, the PBA continued discussions with these opposing groups to draft compromise language that could benefit both builders and consumers. For instance, one of the new proposed amendments to the bill addressed the concerns of the Insurance Federation by giving consumers an additional 15 days, for a total of 30 days, to decide whether or not to accept a contractor’s offer to make a repair. Another proposed amendment by the trial lawyers would remove language to limit the amount of money a consumer could receive during a lawsuit if that consumer had previously rejected a reasonable settlement offer from the builder. The PBA continues to oppose this amendment because it provides less incentive for the consumer to accept an offer by the builder and, as such, will be less of a deterrent to construction-related lawsuits. House Bill 1467 was not passed by the House before its summer recess. The PBA is
continuing discussions with groups like the Insurance Federation and the PA Bar Association to produce compromise language and plans to reenergize its efforts to move the legislation this fall.
Legislators and PBA Want Eminent Domain Limitations The PBA and some legislators share a desire to see some aspects of eminent domain limited in Pennsylvania. Eminent domain allows the government to take land for public use if the landowner is given fair compensation. This power usually is used to acquire land for public roads, schools, government buildings, utilities and other public purposes. In the Supreme Court case of Kelo vs. New London, the court ruled that municipalities may take private land by eminent domain and give it to a private entity under the justification that the new owner will pay more taxes, create jobs or otherwise improve the local economy. Rep. Thomas F. Yewcic (DCambria/Somerset) has introduced House Bills 1835 and 1836, which the PBA supports. These bills would amend the rules for municipalities, stating that while municipal governments may take land by eminent domain, they may not turn that land over to “a non-public interest,” or use eminent domain to increase the tax base. The PBA believes the only time the government should take land for non-public use is in instances of urban blight — if the owner refuses to improve the blighted property and the municipality has a private developer with an interest in revitalizing the area. The PBA also is focusing on limiting the abuse of eminent domain powers for open space preservation. The PBA is proposing a requirement that municipalities identify those properties they seek to condemn for recreational and open space on their official map adopted under Article IV of the Municipalities Planning Code. The PBA will be testifying during hearings about eminent domain before the House State Government Committee in August. (See related eminent domain information in this issue’s “Legally Speaking” column.) ▲
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TECHNOLOGY Continued from members only page B
“Now that I can track jobs, I have much more accurate estimating, and that has made a difference in my business,” he said. Besides the business management software, Dennis also has gone through several design/build programs and is happy with his current program, Chief Architect, which is a CAD program. “Chief Architect allows me to help my customers envision what they want in their homes, and I am amazed at how the design programs have advanced over the years,” he said. For the future, Dennis hopes to build a Web site to attract more customers, which is part of his new marketing plan. He says he also will continue to research new software to help run his business. “I use the winter months to research, because it is slower,” said Dennis. “The great thing about computers is that you can start with a simple program and, as you learn it, you can advance to some of the more complicated ones. I think of it as self-development for my business.”
Real Estate Agent Discovers Real-time Benefits Ask anyone in the real estate industry, and they will tell you it is fast-paced. With the strength of home sales and the competitive nature of the industry, anything real estate agents can have that sets them apart from their competitors is a huge benefit. Paul Graham, a real estate agent with Brownstone Real Estate Co. and a member of the Lebanon County BA, has found that not embracing technology in his industry is the fastest way to put yourself out of business. “I will be 60 years old in September, and even I recognize the need for technology,” said Graham. “Every year, a new crop of young people are out there looking to buy. They are used to this technology, and they expect the people they are working with to understand it as well. If you don’t, they will go somewhere else.” During the 12 years Graham has been an agent, he has seen a lot of change, but he is happy to see technology make its way into the real estate industry. “When I first got into this business, we were just getting into computers. Today, we have an Internet-
based system that is ‘real time.’ The minute I list your home, agents and the public can view it,” he said. Graham’s company also has purchased companion software to stay competitive. “We bought additional software that allows us to put in certain qualities of a home the customer wants. When a home is listed with those qualities, the software flags it and sends an e-mail to me and to the customer. More and more, we are refining our search to find the perfect home for our customers,” Graham said. Like many others in the industry, Graham also has discovered the beauty of the BlackBerry. He said, “With my BlackBerry, I no longer have to spend time playing phone tag with my customers. They can reach me whenever they need to, wherever I am.” Graham says that technology has increased his productivity, and he is surprised to see others in the industry reluctant to make the leap. “We are living in a faster and faster world, and even my 80-year-old mother recognizes it and has an interest in technology. It’s time to get on board, or you aren’t going to be competitive, and the rest of us are going to leave you behind.” ▲
CHESAPEAKE BAY Continued from members only page A
billion. Pennsylvania’s costs are higher than the other bay watershed partners. This is due to the fact that the Susquehanna provides half the freshwater flow to the bay, and Pennsylvania contributes the highest nitrogen loading. Considering the $28-billion price tag to meet the pollutant reduction goals, the Chesapeake Bay Executive Council has called for the establishment of a Chesapeake Blue Ribbon Finance Panel. The panel has been tasked with identifying innovative solutions for financing the multibillion dollar bay restoration. The graphic (see bottom of members only page A) shows the total nitrogen, phosphorus and sediment loads delivered to the bay based on the 2002 implementation of the Chesapeake Bay Tributary Strategy and the accompanying percentage of pollutants from all land uses. It’s significant to note that the data in the table indicate that agricultural activities, not construction, produce the vast majority of pollutants entering the bay. Chesapeake Bay tributary strategies have been developed independently by each bay D
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watershed partner on a watershed basis. Strategies identify non-point source best management practices and point source management options, which will reduce nutrient and sediment loadings to the bay and meet the cap load allocations assigned to each jurisdiction. The strategies call for reducing nutrient and sediment loads to the Chesapeake Bay from a variety of sources such as agriculture, wastewater treatment plants, urban stormwater, septic systems and air. Pennsylvania’s tributary strategy was crafted to meet its nutrient and sediment cap load allocations for both the Potomac and Susquehanna watersheds.
A Plan of Action for Pennsylvania Pennsylvania’s non-point source pollution reduction strategy includes agricultural best management practices, retrofits to wastewater
treatment facilities, urban stormwater management and air emission controls. Nitrogen and phosphorus contributed by point sources will be reduced by allocating annual nutrient cap loads through the existing National Pollutant Discharge Elimination System (NPDES) permitting process. Approximately 190 significant point source dischargers will be affected through their NPDES permitting. Pennsylvania will use an “adaptive management” approach to implement its tributary strategy. The crux of this approach is to apply financial and human resources where they will do the most good and to be flexible enough to adapt to changing needs. More information about Pennsylvania’s Chesapeake Bay tributary strategy can be found at www.dep.state.pa.us. Select “Subjects” and then “Chesapeake Bay.” Questions may be directed to Keith Ashley at the PBA by calling (800) 692-7339, ext. 3013, or by e-mail at kashley@ pabuilders.org. ▲
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September/October 2005 • Keystone Builder 15
Legally
Speaking
U.S Supreme Court Decision Has Major Impact on Private Property Rights by Loudon L. Campbell, Esq., Eckert, Seamans, Cherin & Mellott, LLC and PBA Legal Counsel he United States Supreme Court recently issued a controversial 5-4 decision expanding the power of eminent domain. In its decision in Kelso v. City of New London, the Court ruled in favor of the government and allowed the city’s condemnation of private property to be taken and conveyed to a private developer for economic development. The city of New London, CT desired to redevelop about 90 acres of land that was neither in a slum nor in a blighted area. As part of an area-wide development plan, the city sought to take private homes and transfer ownership to a private developer for the purposes of building a business and technology park. In support of the condemnation, the city argued that the project would increase property taxes, produce needed new jobs, encourage access to the city’s waterfront and build momentum for the revitalization of the downtown area. Government has the power of eminent domain, which is the ability to take private property to be used for a public purpose.
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In My
Typically, private property is taken by eminent domain when necessary for the construction of roads, bridges, tunnels, utility lines, hospitals, airports, terminals, etc. When private property is taken by the government for a public purpose, the government is required by the U.S. and state constitutions to pay “just compensation” to the property owner whose land has been taken. In this case, the issue was whether the taking of private property by the city was for a “public purpose” when it was to be given to a private developer for an apparent private purpose, but where the public would realize some benefit from the economic development aspects of the project. The Court agreed with the Connecticut Supreme Court, which had previously ruled that “public use” is interchangeable with “public purpose,” and that broad deference should be given a legislative determination that such a public purpose existed in the areawide development plan. The precedent established by this case is that the government may take land from a private owner and give it to another private owner as long as the government can show some benefit to the public. The decision
resulted in an outcry from property rights advocates who suggest that the decision will enable government to abuse their eminent domain powers and take private residences, or any undeveloped land, for the purpose of developing commercial properties that will certainly produce more property taxes than residential uses. The Court’s decision did point out that many state courts hold narrower definitions of “public use,” and the states are free to further limit the power of eminent domain. This has prompted a flurry of bills to be introduced in state legislatures, including Pennsylvania, seeking to narrow the definition of public use. In other applications of eminent domain, some developers in Pennsylvania also have complained that local governments have condemned private land for public parks or other purposes in order to stop proposed development projects. Builders and developers should remain alert to the possible exercise of eminent domain that will thwart development, as well as condemnations that might replace private residences with public-purpose development. Editor’s Note: The PBA supports legislation that will address municipal abuse of eminent domain powers. ▲
View
‘Requirement to Repair’ Law Will Benefit Pennsylvania Consumers and Builders by State Representative Tom Stevenson (R-Allegheny) he current litigation process for resolving construction defect disputes between homeowners and home builders is overly expensive and time consuming, to say the least. That’s why I am pleased to be the prime sponsor of House Bill 1467, which is specifically designed to reduce both wasted time and unnecessary expenses by providing a fair and
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impartial mechanism to resolve these claims before they reach the courtroom. For far too long, the courts have been the lone route for a homeowner and builder to settle any disputes that may arise. Due to the current homebuilding and renovation boom that is sweeping the nation, the time could not be more perfect for Pennsylvania to join 27 other states in enacting this type of “Requirement to Repair” legislation to prevent even more onerous and expensive lawsuits.
I Keystone Builder • September/October 2005
Last session, Pennsylvania had Requirement to Repair legislation before the General Assembly, and it garnered wide bipartisan support from more than 60 co-sponsors. Again in 2005, both my bill and a similar piece of legislation (Senate Bill 656), introduced by state Senator John Gordner (R-Bloomsburg), continue to receive equal amounts of enthusiasm on both sides of the aisle. That’s because there is no “catch” in this legislation. There are no lopsided benefits —
just a fair and equitable way to resolve disputes in the home building industry, without the extraordinary cost of litigation. Again, other states are seeing the benefits of this approach firsthand. A national study reveals people in states with Requirement to Repair legislation have actually taken advantage of this new and easier system, and the average number of monthly cases filed in court has dropped dramatically. For example, since adopting similar legislation, Colorado has seen a 60-percent drop in homeowner lawsuits. With Colorado in mind, the passage of House Bill 1467 and Senate Bill 656 could mean saving millions of dollars for Pennsylvanians. A relatively straightforward system, Requirement to Repair requires a homeowner to work directly with their builder to resolve disputes before they can sue. The requirements include: • A builder must respond to any written request to address a homeowner problem. If safety is a concern, a faster response is required. • Builders can offer to resolve the problem, reject the claim or offer a settlement. In replying, builders must tell owners what the repairs will be and provide a timetable. • If a builder rejects the claim, fails to respond, or doesn’t comply with the process, the homeowner can immediately file a legal action. As I indicated earlier, the alternative to this fair process is the status quo: expensive legal bills and lengthy court battles. To do nothing also would ignore the fact there’s a growing crisis in Pennsylvania’s home building industry with general liability insurance. Not only is this insurance becoming more expensive, but there are more and more exclusions. To make matters worse, fewer companies are writing policies, so insurance options in the marketplace are dwindling. Homebuilders are running out of options. Meanwhile, homebuyers are being forced to spend a great deal of money on legal costs if they have an issue with their homebuilder. Some cases can drag on for years. Most awards aren’t enough to even cover court costs for homeowners. Put it all together, and you have litigation that is driving up builders’ costs, the price of buying a house, and significantly delaying a family’s right to enjoy their dream home. If we enact Requirement to Repair legislation, legal action would be only the last resort, and Pennsylvania homeowners would enjoy the same effective construction dispute resolution process currently available in more than two dozen states. In fact, all Pennsylvanians will benefit from the reduced burden on our court system and the boost to our economy
Due to the current homebuilding and renovation boom that is sweeping the nation, the time could not be more perfect for Pennsylvania to join 27 other states in enacting this type of “Requirement to Repair” legislation to prevent even more onerous and expensive lawsuits. when the cost of business — in this case, building — is relieved of unnecessary charges that are passed on to Pennsylvanians through higher construction costs. With more than 40,000 housing starts in Pennsylvania during 2004, and tens-of-thousands of dwelling renovations, it’s my goal to
bring home this win-win situation to both Pennsylvania homeowners and builders alike. I intend to work diligently on this issue during the fall and look forward to working with my colleagues in a bipartisan fashion to deliver real litigation relief to Pennsylvanians, and, most importantly, peace of mind to homeowners. ▲
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Remodelers
Update
Changing with the Times Harvard Study Analyzes Past and Future Trends in Remodeling by Nikki Brand emodelers not only change and update structures, but the industry itself constantly is being changed and updated. The Joint Center for Housing Studies at Harvard University published a report during the spring of 2005 that includes an overview and statistics about the remodeling industry in the U.S. during the years leading up to 2003. “The Changing Structure of the Home Remodeling Industry” report indicates that the future of remodeling is bright. However, it also cautions that trends are changing, including the age groups that will be spending the most home improvement dollars in the future. The report highlights, as well, the growing number of people who are tackling remodeling projects themselves.
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Fastest Growing Markets The report states that the fastest growing remodeling markets are in the Sunbelt, but besides Washington, D.C., Pennsylvania has experienced the fastest growth in the Northeast region, with 16.2 percent growth in permit values in both Pittsburgh and Philadelphia. The study attributes the rising home improvement rate in the Northeast to older housing stock, generally higher household incomes and the scarcity of land for development in prime locations. To continue a high growth rate, the report states that remodelers need to understand the increasing importance of the high-end market, the evolving structure of the industry and the changing demographic environment.
The study reports, “With the rapid appreciation of the existing stock, together with the increasing size and quality of newly constructed homes, the number of high-value homes is approaching eight million.” Because of this, during the years between1995 and 2003, owners of high-value homes have increased their home improvement spending from $3,600 to $5,000 annually.
Changing Customer Demographics The demographics of the industry are evolving, too. For years, the baby boomer generation (in their 40s and 50s) has been the largest group spending money on home improvements. But, as this generation ages, generation Xers (in their late 20s and 30s) represent a growing segment of the remodeling market. From 1995 to 2003, the number of genX homeowners has nearly tripled to 12.4 million, while their total remodeling expenditures have increased more than fivefold to $28 million. However, even as baby boomer households are getting smaller, they still account for more than half of all remodeling expenditures. They spend more money on projects than genXers, and genXers are doing more remodeling projects themselves. The structure of the industry also is something remodelers need to understand. Remodelers have begun to move toward specialization — only about a quarter of remodelers across the U.S. are full-service businesses and the rest offer more specialized services. Going forward, remodelers also need to decide, based on the region in which they do business, if marketing to minorities is a priority. A large number of minority families in the U.S. is buying and remodeling homes. Homeownership by minorities is up 54 percent since 1995. Aggregate improvement
spending by minority homeowners reached $19.6 billion in 2003.
What the Future Holds The report paints a fairly bright future for the remodeling industry. However, it isn’t easy to predict the impact of factors such as the risk connected with home price inflation and rising mortgage rates. The study indicates that unless there is a large drop in home prices, a big increase in mortgage interest rates, or some other drastic change in the economy, the rate of home improvement growth should continue to increase by at least 3 percent annually, the same as it has during the past 10 years. The report indicates that rapid home price appreciation and the surge in home equity have produced an increase in high-end home improvements. House prices have moved up sharply in metropolitan areas, in part because of higher-quality construction, extensive amenities and the larger average size of newly built homes. Developable land in metropolitan areas is in short supply and is becoming more expensive, and there are more stringent land-use restrictions. If this trend continues, homeowner demand for high-end improvements should continue. The report estimates that the number of U.S. households will increase by at least 12 million from 2005 to 2015 — almost 10 percent more than was recorded during the 1990s. The number of homeowners also is expected to grow by at least 11 million, with minorities accounting for 46 percent of that gain. The study hypothesizes that: “With a strong growth in the number of homeowners and in household income, the prospects for residential improvement and repair spending seem bright.” The report states, “Indeed, American homeowners are likely to keep setting new records in residential repair and remodeling activity.” To view the entire study, visit www.jchs.harvard.edu. ▲
Besides Washington, D.C., Pennsylvania has experienced the fastest growth in the Northeast region, with 16.2 percent growth in permit values in both Pittsburgh and Philadelphia. 18
I Keystone Builder • September/October 2005
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TEPES
Builder Case Study
Construction Company Inc. Second-generation builder finds niche in attached-singles market. by Jennifer McDermitt ne of the hardest, yet most important, things a builder can do is to find a niche. Lou Tepes Jr. of Tepes Construction Company Inc. discovered that finding a niche gave his business new life, and he proved that, after more than 45 years in the industry, it’s never too late to change your business focus. “A lot has changed over the years in this business,” said Tepes. “The biggest change, however, is the homebuying market. Almost 90 percent of our customers are baby boomers, so we came up with a product that meets the needs of this growing market.” Tepes builds specialty duplexes, but he refers to them as “attached singles” because the homes are not mirror images of each other. These homes appeal to the baby boomers because of their ease of mainte-
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nance, and they are becoming a major part of Tepes’ business. “Boomers can live independently in these homes and personalize them with their own choice of colors and yet not hassle with association fees or too much upkeep,” said Tepes. “These attached singles, especially the twin ranches, are becoming very popular, and, thanks to word of mouth, we’ve done very little advertising.”
Blending the Old With the New Tepes came into the family business at a young age, working for his father since the time he was in the 8th grade. His father, Lou Tepes, an immigrant from Austria, started the business in 1952, and, after a heart attack in 1976, Tepes Jr. took over the family business full-time when his father retired. When Lou
Jr. retires, his son Tim, the current vice president of Tepes Construction, will be the thirdgeneration builder in the family. Tepes is surprised at how much the industry has changed since the early days. “Originally, when you were a builder, you were truly a builder, not a contractor. My father had his own crews, and the only thing he didn’t do inhouse was plumbing and electrical. Today, we subcontract out most of the work, and we only have seven people on the payroll versus 30 like my father had,” said Tepes. Tepes says although much has changed, there is one aspect of the business he is proud to have kept up. “My father was a designer and a draftsman by trade. He trained me to be the same, so I still design my own homes. I think that sets us apart from a lot of other builders today,” he said. Continued on page 22
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BUILDER CASE STUDY Continued from page 21
Tepes has, however, blended modern technology with his love of design. “I design on a CAD system now, and it is a lot faster and easier. I still love to see those designs come to life, though, which is why I enjoy custom designing so much.”
Serving the Full Spectrum of the Homebuying Market Tepes says that the baby boomer customers he serves are unlike any senior market he has seen before, which is why he came up with the uniquely designed “attached singles.” “These boomers are an active group,” said Tepes. “They want to stay in their homes longer, and they want those homes to be customized.” Currently, Tepes is working with an assisted living center to build 44 twin ranch homes that will be available for rent. Seniors can rent the homes and live independently until they need to move into the neighboring assisted living center.
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I Keystone Builder • September/October 2005
Trust Alpha to bring your creative interiors to life.
6510 Chapmans Road Allentown, PA 18106-9200 610-530-7525 Fax: 610-530-7528 Visit our Web Site: www.alphadrywall.com
Although Tepes serves many people in the senior market, he says his company also serves a full spectrum of customers, building everything from affordable starter homes to luxurious million-dollar homes. Tepes is in the process of finishing a project known as Parkway West in Coply, PA, which contains 162 twin homes and 30 townhouses, with 30 more to go. Also, in the North Hills of Allen development, Tepes currently is finishing up 90 twins for phase I, with an additional 80 units planned for phase II. Tepes says finding new markets and market niches is important, especially in today’s competitive environment. “The Lehigh Valley of Pennsylvania has been discovered. National builders are coming in and buying land at inflated prices, which can make it difficult to compete. You have to find something that sets you apart,” he said.
A lot has changed over the years in this business. The biggest change, however, is the homebuying market. Almost 90 percent of our customers are baby boomers, so we came up with a product that meets the needs of this growing market. — Lou Tepes Jr. of Tepes Construction Company Inc.
A STABLEHOME in an UNCERTAIN WORLD.
Introducing the FrameWorks® Building Systems.
The Many Rewards of the Building Industry Tepes’ hard work and dedication to the industry has been recognized many times. He has been named “Builder of the Year” two times by his local association, the Lehigh Valley Builders Association, in 1997 and 2005. Tepes is very involved in the building industry at the state and local level, something which he says is very important for his business. “The biggest benefit I find with association involvement is the networking,” Tepes said. “Builders, by nature, tend to not want to communicate with each other. They are afraid they might give away some secrets. But when builders get together within the association, they talk about ways to solve common problems, which I have found very helpful in my business.” Another key to Tepes success is his high level of customer service, which is a source of pride for him. “We like to say that ‘home building is our profession, and a satisfied customer is our pride.’ If we have to go back to a home four years after we build it, we will. We want to provide customers with a quality home and service it when needed, and I think this builds goods relationships with customers.” ▲
Strober Building Supply
MORRISVILLE, PA (800) 234-2581PA MORRISVILLE, (800) 234-2581
LIMERICK, PA (610) 495-3295 EAGLE, PA (610) 321-0970
FORKS TOWNSHIP, PA (610) 252-6190 EASTON, PA (610) 252-3142
To find our other locations, visit us at www.strober.com September/October 2005 • Keystone Builder
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New Product Pittsburgh Corning’s New Lightwise® Aluminum Clad Wood Window Offers an Idea That Really Fits Pittsburgh Corning invites builders, architects and DIYers to add glass block and hassle-free luxury to their homes with its new Lightwise® Aluminum Clad Wood Window. Stemming from the successful Pittsburgh Corning Lightwise® Vinyl Glass Block Window, the new aluminum-clad wood window offers similar features while presenting an alternative, aesthetic option where vinyl may not be the best fit. The new aluminum-clad wood window frame comes pre-assembled with Pittsburgh Corning glass block. Builders, remodelers and DIYers can quickly and easily place the window into an opening, like a traditional paneglass window. Its built-in nailing fins quickly anchor the window. In addition to easy installation, the aluminum-clad wood window offers beautiful aesthetics. Instead of mortar, silicone bonding between glass blocks is used for a dramatic “all-glass” look. Additionally, homeowners can specify the popular DECORA® or IceScapes® patterns to create varying designs and degrees of privacy and light transmission. Lightwise Aluminum Clad Wood Windows are available in 78 sizes and can be ordered from any authorized Pittsburgh Corning Glass Block distributor, home center, pro dealer or lumberyard. For more information, call Pittsburgh Corning’s Glass Block Resource Center at (800) 624-2120 or visit www.pittsburghcorning.com.
Construction Professionals Get New “Draft” Pick to Protect Against Air and Moisture A national trend in the construction industry is the use of house wraps to increase energy efficiencies. However, when gaps form in the seams between wraps, the efficiencies and benefits are lost. 24
Corner To provide construction professionals with a superior tape product for house wrap seams, Intertape Polymer Group, the largest tape manufacturer in North America, introduces its Contractor Grade Sheathing Tape to help protect against air and moisture infiltration. Designed to work on all house wraps, Intertape’s Sheathing Tape provides the tightest seal for applications exposed to a wide range of temperatures. Consisting of a biaxially oriented polypropylene backing, coated with a pressuresensitive acrylic adhesive, the new tape: • Prevents air infiltration • Seals panel joints in foam insulation • Secures lap edges • Repairs rips and tears in roll and batt insulation • Eliminates drafts around window and door openings The largest tape manufacturer in North America, Intertape Polymer Group Inc., develops, manufacturers and sells polyolefin plastic, paper packaging products and complementary packaging systems. For more information, visit the company’s Web site at www.intertapepolymer.com.
Rollex Unspools New Aluminum Trim Coil in Multiple Colors
Siding systems manufacturer Rollex Corporation has launched the COLOR SELECT™ series of aluminum trim coil in multiple colors formulated to blend with popular siding colors from other major manufacturers. COLOR SELECT™ trim coil is targeted to distributors, retailers and contractors who need trim coil colors to blend with other siding brands. Rollex designed 23 colors for use with the Ashland-Davis, CertainTeed and Wolverine family sidings, and 18 are designed to mirror Alcoa siding colors. Aluminum trim coil is used on vinyl and aluminum siding and soffit projects to cover exposed wood, like fascia boards, for which there’s no prefabricated cladding. It’s also
I Keystone Builder •September/October 2005
used for flashing interior and exterior corners and other junctures and to create accent moldings. The product is cut to length and shaped on the job site. COLOR SELECT™ trim coil is 24 inches wide and is packaged in 50-foot rolls. For product sales and information, contact Rollex Corporation at (800) 251-3300, marketing@rollex.com or visit their Web site, www.rollex.com.
Loctite® Exterior Power Grab® Construction Adhesive Offers Environmentally Friendly Alternative for Exterior Projects
Loctite® Exterior Power Grab®, an innovative new latex-based, VOC-compliant exterior construction adhesive, features an initial tack that is nine times stronger than traditional construction adhesives. This advanced adhesive formulation offers users increased working advantages by providing high initial tack, requiring no flashing off and only minimal bracing. In addition, Loctite® Exterior Power Grab® meets or exceeds the following builder specifications, including ASTM C-557, ASTM AFG01, ASTM D 3498 and ASTM D 4300-01. Loctite® Exterior Power Grab® is an advanced construction adhesive designed for both interior and exterior use on many surfaces such as concrete, brick veneer, treated lumber, plywood and drywall. Its weatherresistant formula makes it ideal for exterior projects such as decking, fences, concrete bonding, gazebos and a variety of other applications. Additionally, the adhesive can be used for interior applications since it has low odor, is paintable and cleans up easily with water. Loctite® Exterior Power Grab® construction adhesive meets all of the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating criteria, providing a high-strength bonding solution for
green builders or discerning DIYers. Loctite® Exterior Power Grab® premium environmentally friendly construction adhesive is available at Lowe’s. For more information about Loctite brand products, call (800) 321-0253 or visit the Web site at www.loctiteproducts.com.
New Laminate Collection From Nevamar: A Flying Leap From the Ordinary The new laminate collection from Nevamar is full of striking designs, woodgrains and colors. One dozen new designs inspired by worldwide influences headline a collection that is tailor-made for inspired design.
Reflective of Nevamar’s exciting new laminate choices is Sasanami. Inspired by the precious metal used in Japanese jewelry, this pattern is a magical mix of gold, silver, copper and blue. It’s a contrast in harmony — warm versus cool — and yet it seems in perfect balance. Nevamar’s new collection also features a group of striking woodgrain patterns of uncommon woodgrain structures and unusual colorations to make a dramatic statement, especially when paired with certain neutrals. All new patterns are available in high pressure laminates as well as LamMates™ TFM (thermofused melamine) panels. All Nevamar™ high pressure laminates offer years of easy-care performance due to the exclusive, award-winning Armored Protection™ Surface,
which gives the laminates superior durability, abrasion and scuff-resistant properties. For complete details, call (800) 638-4380, e-mail your request to nevamar.marketing@ nevamar.com or visit www.nevamar.com. Continued on page 26
Interested in advertising in
Keystone
Official publication of the Pennsylvania Builders Association®
b u i l d e r Call Jeff Pinwar at 800-935-1592.
September/October 2005 • Keystone Builder
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Builders
News Briefs
by Allison Martin
2006 Leadership Retreat Focuses on Education he 2006 Leadership Retreat will be held Oct. 21-22, 2005, at the Nittany Lion Inn in State College. The retreat, titled “Destination Education,” will provide professional development for executive officers and incoming presidents. Each educational session has been fashioned to enhance participants’ leadership skills while providing the necessary tools to ensure the success of local associations. EOs and incoming presidents will receive a complimentary “round-trip ticket” to attend the retreat at no charge. There will be a nominal charge for others who wish to attend. Early registration by Sept. 15 will qualify participants for a prize drawing. For retreat reservations, contact Jennifer Bertolette at (800) 692-7339, ext. 3001. For hotel reservations, contact the Nittany Lion Inn at (800) 233-7505. Hotel rates are $105 single occupancy, $115 double occupancy. The PBA will pay 100 percent of the room cost if shared. If you are not sharing a room, the PBA will pay 50 percent of the room cost.
T
2006 Board Meetings Announced The PBA Board of Directors has announced the dates and locations for its 2006 board meetings. The first meeting will be held Feb. 23-25 at the Doubletree Hotel in Philadelphia. The second meeting will be held
July 27-29 at the Westin Convention Center in Pittsburgh. The 2006 PaCAH fund-raiser also will be held during this weekend. The final board meeting of 2006 will be held Nov. 9-11 at the Hotel Hershey in Hershey.
PBA Web Site Launches Discussion Forums One feature of the new PBA Web site at www.pabuilders.org is the “Issues Forums” page in the member section. On this page are forums for the Developers Council, the Uniform Construction Code, stormwater management, on-lot sewage, the Associates Council and more. These forums provide a place for members to share their thoughts, comments and questions about important topics. The forums are for members only and require that participants log in. If you think of a topic you would like to see added to the forum page, please contact Eric Wise after August 22 at (800) 692-7339, ext. 3003 or ewise@pabuilders.org.
PA Manufactured Housing Association Holds Expo The Pennsylvania Manufactured Housing Association will hold its annual HOMExpo show March 15-19, 2006. The show will be held at the Giant Center in Hershey. The first two days are being designated as industry days, while the last two days will focus on the consumer. For more information, contact Karen DeSio at (888) 242-7642 or karen@pmha.org.
Developers Council Meeting Scheduled The next Developers Council meeting will be held on Sept. 28 at the Radisson Hotel in Camp Hill. The meeting will begin at 10 a.m. For more information, contact David Martin at (800) 692-7339, ext. 3002, or via e-mail at dmartin@pabuilders.org.
National Building Museum Celebrates 25 years The National Building Museum in Washington, D.C. is celebrating its 25th anniversary. The museum explores the world we build for ourselves — from our homes, skyscrapers and public buildings to our parks, bridges and cities. Through exhibitions, education programs and publications, the museum seeks to educate the public about American achievements in architecture, design, engineering, planning and construction. The museum has several special exhibits planned, including one titled “Liquid Stone: New Architecture in Concrete.” On Sept. 15, the museum will hold a film exhibit called “Architectural and Engineering Marvels on Film.” The museum will hold its Festival of the Building Arts on Sept. 17. The festival includes many hands-on activities for both children and adults. Museum hours are Monday-Saturday 10 a.m.-5 p.m. and Sunday 11 a.m.-5 p.m. For more information, visit the museum’s Web site at www.NBM.org, or call (202) 272-2448. ▲
Building News You Can Use NEW PRODUCT CORNER Continued from page 25
Moen’s New Web Site Can Assist Builders with Specifications and Designs Moen Incorporated has launched a new Web site, www.builder.moen.com, designed to help builders and their customers with the specification process, as well as offer design center tools and links to critical product information. The Web site allows builders to cre26
ate, manage and save customized sell sheet graphics that expedite the selection process for homebuyers. In addition, it provides an easy, efficient and organized means for builders to present standard and upgrade product options. The Sell Sheet Creator allows builders to produce professional-quality, customized sell sheets that highlight the features and benefits, styles and finishes of products available, including easy-to-read upgrade options. The builder can individualize the sell sheet layout by adding a company logo or pricing infor-
I Keystone Builder •September/October 2005
mation, for instance. Once created, the sell sheets are saved in an online account and can be downloaded as PDF files for future reference. The Design Center Tips and Tools section of the Web site contains design ideas, merchandising best practices, plan-o-grams and photographs, and lifestyle questionnaires and space-planning ideas for homebuyers. For more information, call (800) BUYMOEN or visit www.moen.com. ▲
Y OU
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Whatever you build, wherever you build it, you really should take a look at propane. It fuels the whole house cleanly and efficiently, from the furnace and cook top to the water heater. It’s now faster and easier to put in. And with thousands of propane companies nationwide, there’s always a ready supply whenever you’re ready to build. To learn more about this exceptional energy, just give us a call.
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717-441-6040
September/October 2005 • Keystone Builder
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Behold the Barrington® Fiberglass Door Collection from Masonite, defining a new level of luxury in fiberglass entry systems. • HIGH-PERFORMANCE FIBERGLASS & HARDWOOD DOOR BEAUTY Specially engineered fiberglass door facings provide maximum protection and durability. The surface of a Barrington® door produces an authentic wood door appearance by utilizing Masonite’s new, variable depth, wood-grain texture that finishes easily and beautifully. Barrington will not dent and resists splitting, cracking and warping. • CUSTOM GLASS FRAMES & ARCHITECTURALLY CORRECT ALIGNMENT Glazing frames have been specifically designed to match the panel moulding in both profile design and width. All raised moulding profiles align vertically on the surface of the door to avoid overlapping onto the surface of the stile. • RAISED MOULDING Distinct raised moulding is standard on all Barrington doors – reminiscent of hand-crafted hardwood doors. • PROPRIETARY DECORATIVE GLASS DESIGNS Barrington features a stunning, proprietary collection of Specialty™ decorative glass. Unlike typical fiberglass doors with glass inserts, Barrington doors are factory-glazed with custom-sized inserts to yield wider glass and narrower stiles & rails – similar to authentic hardwood doors.
Distributed by Bridgewater Wholesalers, Inc.
“Three locations to serve your millwork needs” 210 Industrial Parkway Branchburg, NJ 08876 (800) 242-7207
299 Mulberry Drive Mechanicsburg, PA 17055 (866) 717-7660
M
Barrington®
asonite’s new Barrington® Fiberglass Door Collection defines a new level of luxury in fiberglass entry systems. Barrington’s distinct raised moulding and outstanding wood-grain texture, reminiscent of hand-crafted hardwood doors, impart unbelievable warmth and elegance to any home. All Barrington doors are factory-glazed with a stunning, proprietary collection of Specialty™ decorative glass. By combining dramatic decorative glass with impressive raised moulding and detailed wood-grain texture, Masonite’s Barrington Door Collection represents a new dimension of beauty in fiberglass entry systems.
3000 Transport Street Richmond, VA 23234 (866) 294-7979
To locate an independent retailer near you visit our website at: www.bwimillwork.com
Masonite and Barrington are registered trademarks of Masonite International Corporation. Specialty is a trademark of Specialty Building Products., Inc.