November/December 2005
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Kohl Building Products All 8 Locations
The Lumber Yard All Locations www.thelumberyard.com
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Fagen’s Building Centers, Inc. Pittsburgh
Lezzer Lumber All Locations
412-323-2100
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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
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Windowizards All Locations 800-220-8707
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Andersen Windows, Inc. 100 Fourth Avenue North, Bayport, MN 55003 1-800-426-4261
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I Keystone Builder • November/December 2005
Call NOW to learn about our 31-Day Payback Builder Advantage Program
Keystone
Official publication of the Pennsylvania Builders Association®
b u i l d e r
Volume 2 • Issue 6 November/December 2005
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24
22
Contents
15
Here Today … Gone Tomorrow
18
Exploring Energy Series
22
Builder Case Study
Worksite theft not only causes big headaches, but also it can cost big money for builders. Find out how to protect yourself.
®
PRESIDENT James L. Conner Lawrence County BA, Mercer County BA VICE PRESIDENT Bradford H. Elliott HBA of Bucks/Montgomery Counties 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.
Learn why builders should consider ground source heat pumps systems to help with rising fuel costs.
Ray Venema’s savvy business background helps Susquehanna Builders Inc. become a successful company.
Departments Builders News Briefs • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •7 President’s Column • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •11 Association News • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •12 New Product Corner/Building News You Can Use • • • • • • •24
Members-Only Section In My View: Jeffrey E. Piccola, Pennsylvania Senate Majority Whip, discusses property rights. • • • • • • • • • • • • • • • • A On the Hill: Up-to-date legislative information for our members. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • B Ultimate Code Concerns: PBA expert answers common questions on the Uniform Construction Code. • • • • • • • • • • • • C Developers Briefing:
•••••••••••••••••••••••••••••••••••D
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 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 Eric C. Wise 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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I Keystone Builder • November/December 2005
Builders
News Briefs
Builders Provide Insight to Congress on Hurricane Cleanup and Rebuilding Efforts he National Association of Home Builders offered Congress several recommendations to address the immediate critical housing needs of Hurricane Katrina evacuees and the long-term reconstruction of housing infrastructure and supply in the aftermath of the storm’s extraordinary devastation. NAHB President David Wilson, a home builder from Ketchum, Idaho, urged the federal government to partner with the building industry to tackle the monumental rebuilding efforts during a Sept. 15 session with the House Financial Services Subcommittee on Housing and Community Opportunity. “The task of rebuilding is unprecedented, with more than a million people homeless or displaced,” Wilson told members of the
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House Financial Services Subcommittee on Housing and Community Opportunity. “While NAHB understands the immediate need to build temporary housing quickly, ultimately, it is important that quality housing is rebuilt and that community character is restored to affected neighborhoods.” Critical to the massive repair and replacement effort is the need for large amounts of building materials. To assist builders in their reconstruction efforts, Wilson said the federal government could help ease the impact of price spikes and shortages by rescinding tariffs on key building components. “Exorbitant duties imposed on Canadian lumber and Mexican cement, as well as new duties on Brazilian plywood, have increased the cost of housing and contributed to shortages of materials,” Wilson said, adding that the recovery from the four major hurricanes that struck the Gulf Coast region in 2004 is still incomplete, hampered by a lack of roofing, concrete and other vital materials.
Model Building Contracts Available on PBA Web Site Visit the PBA Web site to download a sample agreement form that members may use as a reference for creating their own contract with their customers. From the PBA main Web page, the model building contract is found through the Resources menu on the left of the page. Find the site at www.pabuilders.org.
PBA Opposes Bill Requiring Developers to File More Paperwork PBA opposes a bill amending the Municipalities Planning Code that would require developers to file applications with school districts. This legislation, HB 102, was proposed because some municipalities and some school districts refuse to communicate with each other. The association believes its members should not be responsible for failed intergovernmental communication. The land development and subdivision process is already overly burdensome, tedious and costly. This bill adds to these burdens and would further increase housing costs. For more information on this and other government affairs issues, contact Lou Biacchi at (800) 692-7339, ext. 3018, or by e-mail at lbiacchi@pabuilders.org.
Ambassador Founder Recognized as ‘Legend’ Marvin Zisman, founder of Ambassador Home Improvement in Harrisburg, was named a Legend of the Home Improvement Industry by the Home Improvement Management Summit. The late Zisman, nominated by PBA members, founded Ambassador, now a business with $8 million in annual sales that is operated by his son, Joseph Zisman.
Capitol Historian Helps Solve Photo Mystery aul Beers, the Pennsylvania Capitol historian, helped PBA staff solve the mystery person shown in this photo from the association’s archives. At right in the photo is Nolan Ziegler, the mayor of Harrisburg 1956-63. As we mentioned in the last issue, the others in the photo are (left to right) Pennsylvania Sens. Graybill Diehm, Harvey Taylor and Albert Pechan, all of whom served in the 1950s and 1960s. So, mystery man in the photo did not turn out to be a former PBA leader. The new mystery is why the photo was in the archives of PBA. ▲
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PBA Opposes Bill That Funds Land Trusts House Bill 183 allows local government bodies to form independent land trusts that Continued on page 8
November/December 2005 • Keystone Builder
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Builders
News Briefs
Continued from page 7
are supported by tax money. Under the provisions of the bill, township supervisors could create a land trust and name themselves as trustees. The bill does not require land trusts to open their properties for public use. PBA opposes the bill as it allows tax money to be used for preserving open space and impeding development. This bill passed a House vote and is being considered in the Senate. For more information on this and other government affairs issues, contact Lou Biacchi at (800) 692-7339, ext. 3018, or by e-mail at lbiacchi@pabuilders.org.
eral important reforms to the Endangered Species Act. The bill passed the U.S. House of Representatives with a 229-193 vote Sept. 29. The bill would strengthen existing law by enhancing species conservation and protection efforts, eliminating excessive environmental regulation and giving private landowners incentives to enact voluntary conservation measures.
lowed only the Pennsylvania Association of School Retirees on the unscientific list. The Home Builders Association of Metropolitan Harrisburg, with 829 local members, appeared 12th on the list.
NAHB Bemoans O’Reilly Comments
York, Poconos Associations Name Executive Officers
In a Sept. 21 interview with Donald Trump, television host Bill O’Reilly referred to large-scale corruption in the building industry and the use of shoddy materials. NAHB President Dave Wilson fired a letter defending the industry to O’Reilly the following day. Wilson said comments regarding the industry’s “profiteers” in the wake of stormrelated damage in the gulf coast region ran contrary to the organization’s pledge of $2 million toward rebuilding.
PBA and several other groups raised dozens of questions regarding the Chesapeake Bay Tributary Strategy during a pair of legislative hearings Sept. 20 and 21. Robert Fisher, chairman of PBA’s task force that addresses this proposed program, presented testimony on the association’s behalf. PBA joined agricultural, environmental and other groups in suggesting less costly ways to improve water quality in the Chesapeake Bay Watershed, a region that covers 33 Pennsylvania counties. PBA hopes legislators will slow implementation of the policy based on the strong opposition to the strategy and its questionable costs. “As it has been presented, the Chesapeake Bay Tributary Strategy will force Pennsylvanians to build their new homes and retirement homes elsewhere,” Fisher said. “The strategy will smother Pennsylvania’s Smart Growth initiative, choke nearly every possible addition of workforce housing and vex every municipal authority with astronomical costs that will oppress homeowners with
York County Builders Association and the Pocono Builders Association recently named new executive officers. Stacey Smith was named executive officer for York County BA. You may contact Stacey at (717) 767-2444, ext. 14, or by e-mail at stacey@yorkbuilders.com. Nicole Foleno was named executive officer for the Pocono BA. You may contact Nicole at (570) 421-9009 or by e-mail at pocbldrs2@enter.net.
Builders Endorse House Endangered Species Reforms The nation’s home builders applauded the progress of legislation that incorporates sev-
Builders Associations Rank in Top 25 Pennsylvania Builders Association placed second in a Sept. 23 ranking of trade and professional associations published in the Central Penn Business Journal. With 2,827 members in the five-county capital region, PBA fol-
PBA Questions Chesapeake Bay Proposal During Hearing, Summit
PBA Recognizes Cisney ennis E. Cisney of Cisney & O’Donnell in Huntingdon recently was honored with the Pennsylvania Builders Association’s 2004 Hammers and Gavels Club Award during a meeting of the Huntingdon County Builders Association. The Hammers and Gavels Club Award recognizes an outstanding contribution made in advancing PBA’s 2004 legislative agenda benefiting the housing industry and new homebuyers. Cisney, who is well respected for his work on behalf of the housing industry, was selected for his tireless efforts working with key legislative leaders. Cisney is one of the founders of Cisney & O’Donnell and has been with the company since its 1969 inception. The firm’s chairman and sales estimator, Cisney also is part of a large sales team and manages residential and commercial design-build construction projects. A member of the Huntingdon County Builders Association, Cisney served his local association as charter president and as a board director. At the state level, Cisney served as state director, while at the national level, he is a member of the prestigious 20 Club program. Denny serves on the board of directors of Huntingdon County Business and Industry. ▲
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I Keystone Builder • November/December 2005
PBA President James Conner congratulates Dennis Cisney for winning the 2004 Hammers and Gavels Club Award.
staggering sewer bills. It will cost Pennsylvania jobs.� The strategy’s estimated costs have topped $8 billion, yet it remains unclear how the Department of Environmental Protection plans to pay for it. Its detractors note the difficulty and high cost that municipal sewerage treatment facilities will face in reducing levels of nitrogen and phosphorous as specified in the plan. In the testimony, PBA suggested shifting additional money to agriculture in order to address the largest source of nitrogen, phosphorous and sediments into the bay’s watershed. Prior to the hearings, Keith Ashley, assistant director of governmental affairs for PBA, joined other interest groups during a Sept. 14 summit raising concerns with the nutrient trading program proposed as part of the Chesapeake Bay Tributary Strategy. DEP officials scheduled the summit as a forum that allowed affected organizations to air their concerns. Secretary Kathleen McGinty and other Department of Environmental Protection officials defended the department’s Chesapeake Bay Tributary Strategy. The strategy largely hinges on a nutrient trading program where sewerage systems that release water too nutrient-rich could trade credits with sewerage plants significantly under the limits of the plan or other landowners’ actions (mostly agricul-
tural) that reduce nutrients entering waterways. PBA contends the trading program was drafted without pilot programs or other evidence that it will work. While the strategy was drafted as a long-term solution, the supply of credits could dry up within the next decade.
Discussion Forums Added to PBA Web Site One valuable new feature of the enhanced PBA Web site at www.pabuilders.org is the
“Issues Forumsâ€? page in the member section. On this page are discussion forums for the Developers’ Council, UCC questions, stormwater management and more. These forums offer a place for members to share their thoughts, comments and questions about topics important to their business or local association. The discussion forums are for members only and require participants to log in. If you think of a topic you would like to see included, please contact Eric Wise at (800) 692-7339, ext. 3003 or ewise@pabuilders.org. â–˛
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November/December 2005 • Keystone Builder
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Robert Fisher expresses PBA’s concerns with the Chesapeake Bay Tributary Strategy during a joint hearing before state Senators Sept. 20 in Harrisburg. PBA joined seven other interested organizations that questioned the state Department of Environmental Protection’s proposed strategy for cleaning up the bay.
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I Keystone Builder • November/December 2005
President’s
Message
2005 Was a Banner Year for PBA ncredibly, there are only two months remaining in 2005, and PBA members should be proud — very proud — of the goals that have been met this year. Because of the dedication, commitment and effectiveness of the membership, our theme of “Strength in Unity” has become a reality that will carry forward, benefiting the association for years to come. We’ve all been so busy, between our business obligations and our volunteer service to the association, that there hasn’t been much time to take stock of all our efforts to advance the interests of the housing industry and our home-buying customers. But when you take the time to realize what’s been achieved during the past 12 months, it truly is inspiring.
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The Strength of Coalitions Our members and the PBA staff are to be congratulated for their exemplary teamwork displayed throughout the year. PBA is an active charter member of the PA Prosperity Coalition, and its achievements offer a vivid illustration of that teamwork in action. Thanks to a great deal of hard work and impressive research, the coalition’s Forward to Prosperity report provides a more scientifically sound document on which to base the state’s economic planning. Due to the work of the coalition, our state leaders, including the governor, no longer tout the Brookings’ Back to Prosperity report as a blueprint for public policymaking. That is a noteworthy achievement! On another issue, PBA has demonstrated to local governments our commitment to protect the integrity of the Uniform Construction Code by staunchly fighting ordinances intended to exceed code requirements. We fought for builders and new homebuyers as local officials drafted ordinances requiring fire sprinklers in new residential construction. While most any builder will install fire sprinklers when a homebuyer requests them, PBA has repeatedly explained in public forums our opposition to having sprinklers mandated by government. The expert
research that underlies the code identifies smoke detectors and fire alarms as a sound and cost-effective approach for protecting lives and property. In most localities. Fire sprinklers simply are not necessary, and they would add between $3,000 and $10,000 to the cost of a new home, limiting new home ownership.
James L. Conner
PBA President I have been proud to serve this association as president, and
A Long List of 2005 Accomplishments
I believe our theme for this year
Our list of successes doesn’t stop there. Pulling together, we’ve accomplished much in 2005: We launched PBA’s first Developers Council, providing a forum for developers to address shared challenges. In another first, we used Web technology to demonstrate Strength in Unity through an electronic letter writing campaign that stopped a misguided effort to raise the realty transfer tax for funding mass transit. We introduced a comprehensive UCC “fix-it” proposal to strengthen weaknesses in the implementation of the code evident during its first 18 months in existence. We have received approval to assist two projects helping to educate state judges about critical land-use issues, including development of a “bench book” for reference by judges. In another example of coalition power, we worked productively with other groups to ensure that more Growing Greener II funding was allocated to urban revitalization efforts, offering a better approach for relieving rural development pressures. A model building contract was developed by the Codes Task Force to help our members save time and ensure the protection of their business interests. Our July PaCAH fund-raising events were popular with the members. We were able to raise $35,000 during the events, plus an additional $55,000 was received from the local associations meeting their PaCAH goals. Not a bad weekend: $ 90,000 for PaCAH!
has been embodied in all we achieved. “Strength in Unity” — we’ve seen it work. Finally, Requirement to Repair legislation continues to make headway moving through the state legislature.
Every Member Can Take Pride As I reflected on 2005, I expected to find achievements I could hold as my own. Understandably, I wanted some assurance that my investment of time as president had been worthwhile to both PBA and myself. I have been proud to serve this association as president, and I believe our theme for this year has been embodied in all we achieved. “Strength in Unity” — we’ve seen it work. As the great industrialist Andrew Carnegie once said, “No man will make a great leader who wants to do it all himself, or to get the credit for doing it.” What we’ve achieved during the last year has only been possible because of the passion and commitment of our members. You are the heart of this association, and you provide the spark that drives us to success. As we enter 2006 and are faced with new challenges, let’s remember the lessons and accomplishments of the current year so that they will inspire us to even greater goals and continued progress forward. ▲
November/December 2005 • Keystone Builder
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Association ASSOCIATION NEWS Continued from page C
News
Manage Safety to Control Your Costs n today’s world, safety is king. Studies have shown that workers’ compensation and other insurance-related losses on the job site are very costly. They are costly, not only from the true dollar standpoint, but there are intangible costs as well. These intangible costs could include job interruption, quality issues, lack of help, unhappy customers, etc. The key to avoiding mishaps is to create a safety management program for your company to follow for each job. Make sure to require your subcontractors to follow the same process. If you can avoid or minimize losses, your increased efficiency will boost profits. Below are the key elements of a safety program.
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Elements of Construction Safety Management Construction Safety Management needs to include the following basic elements. How you develop and implement each is up to you. • Written policy and programs communicate your safety expectations and establish your level of skill.
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• Pre-job safety planning should start before the job and include a systematic review of the hazards and needed controls for each phase of the project. • Pre-task planning includes a job-safety analysis or huddle at the job site. For routine tasks, all employees should briefly meet and discuss the nature of the work to be done and the safety procedures to be followed. For tasks outside the norm, the leader should begin a job-safety analysis. • Safety and health training shows your employees the company commitment to safety and helps keep them safe on the job. • Hazard prevention and control should include inspections, forming a safety committee, investigating incidents and tracking employee performance. • Behavioral safety helps manage the decisions your employees make while performing their work tasks.
Examining Hazard Prevention and Controls Construction is a dynamic environment, and you need to constantly react to changing hazards. If you lose control of your job site, profitability will suffer. Inspections or audits should not be a negative or nit picking activity, but rather a method to evaluate how agile your company is at recognizing hazards and implementing controls. If deficiencies are noted, you should identify why and use that information to improve future performance. You do not want to wait until a monthly safety committee meeting to learn about hazards that need to be corrected and should have a regular process that allows employees to cause hazards to be removed. Save big picture items for the safety committee. On the job, do daily or weekly tool box talks over lunch or during breaks. It’s critical to investigate incidents, as failing to learn from past events will result in continuing danger unless you change the processes. Incident investigation should evaluate why the loss occurred.
I Keystone Builder • November/December 2005
Were you unable to see the hazard? Did you not know how to protect against the hazard? Did you see it and not protect against it? Why? Your purpose here is not to place blame but to correct the process. Remember, though, that the accident is not the punishment, and if failure to comply with rules or policies led to the loss, you need to enforce the policy. Safety performance can be measured at two levels: inputs and outputs. Inputs are efforts done before a loss to prevent it. Outputs are failures (losses) or near failures (near hits). Losses are predictable and are usually related to failures that occur at a predictable rate. That is to say if you allow something to be done unsafely enough times, an accident will occur. If we want to reduce the chance of loss, we need to maximize the number of times we control hazards as they arise. The point of performance tracking is to identify those things that must be done right if we want to be safe and then monitor how many times and how well we do them. Reward good performance and correct lessthen-stellar performance. Successful safety programs involve your employees. Make them a stakeholder and give them responsibility for safety. They will respond if you allow them to participate. This article was submitted by E.K. McConkey on behalf of Eastern Alliance Insurance Group. Eastern Alliance is the insurance carrier for the PBA Workers’ Compensation Insurance program. Located in Lancaster, Eastern Alliance issues the policies, handle claims and provide risk management. E.K. McConkey serves as the program administrator. Located in York, E.K. McConkey is responsible for marketing and administration. For a quotation, please contact Steve Buterbaugh, vice president of E.K. McConkey, www.ekmcconkey.com, or by phone at (717) 755-9266. He will put you in touch with a local insurance agent in your area. ▲
November/December 2005 • Keystone Builder
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Thursday, November 17th, 11 a.m. to 8 p.m. The Giant Center at Hershey Park CENTRAL PA’S ONLY “BUILDING-TRADES-ONLY” SHOW Copper Development Association
DO IT PROPER. DO IT COPPER.
• Carving stations, peel & eat shrimp, deli-buffet, desserts, beer and soft drinks; from noon through the day. • The Expo is for building industry professionals ONLY, it is not open to the public. • $25 in advance; $35 at the door. Price includes entrance to the exhibit hall, all seminars, all food and refreshments.
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.
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I Keystone Builder • November/December 2005
• New Tools • New Materials • New Techniques • New Contacts • New Opportunities • Old Friends • New Friends • Good Food • Cold Beer • Good Times
In My
View
Protecting Property Rights by Jeffrey E. Piccola, Pennsylvania Senate Majority Whip aybe the members of the Supreme Court are unfamiliar with the saying, “Home sweet home,” or possibly they have never heard that “a family’s home is their castle.” I make these observations in light of the court’s most recent trampling on the deeply cherished values of the American people. Like many in our country, I have been outraged at the court’s decision in the case of Kelo v. City of New London. This case involved a fairly simple set of facts. In a 5-4 decision, the Supreme Court supported the city of New London, Conn., which seized the homes of an unblighted working class neighborhood for private developers to construct a riverfront hotel and office complex. The New London homeowners appealed to Connecticut’s Supreme Court, but a divided court ruled against them, and they appealed to the U.S. Supreme Court. Sadly, these homeowners were not to find help at the Supreme Court. Rather, five liberal justices, led by Justice John Paul Stevens, decided that they would no longer enforce the constitutional requirement that government can only take an individuals’ property for a truly public purpose. Instead, the majority of the court decided that they would leave the determination of what is a “public use” solely to the governmental entity taking the property. Justice Sandra Day O’Connor, writing for the four dissenting justices, stated, “Under the banner of economic development, all private property is now vulnerable to being taken and transferred to another private owner, so long as it might be upgraded …” According to O’Connor, the majority has “effectively delete[d] the words ‘for public use’” from the United States Constitution. This is a frightening and unacceptable situation. As someone whose 83-year-old mother still resides in the home my father helped design and build 57 years ago, I know the
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heartfelt feeling one can attach to a home. I do not see the court’s decision as merely a mistaken application of constitutional law. I view it as an attack on the rights of individuals to be protected from out-of-control and activist courts. But all is not lost. The United States Supreme Court stated in its decision that state lawmakers have the authority to provide greater protection to property owners than what the court is willing to provide. Consequently, I have introduced the Property Rights Protection Act (Senate Bill 881) to restore the traditional balance in eminent domain cases for Pennsylvania. Specifically, my legislation will ensure: (1) Government only takes an individuals’ private property when it is absolutely necessary for a public use and not to turn it over to a private party for economic development; and (2) The definition of “blight” in state law will be amended to ensure that the designation of property as blighted will not be abused by government. Blight will be defined narrowly to only deal with health and safety concerns and the abandonment of property. Property owners deserve to have their property rights protected, especially from government takeover for economic development purposes. With the help of the people of our commonwealth and the votes of the lawmakers they have elected, we can protect the cherished values that underlie the saying, “Be it ever so humble — there is no place like home.” Sen. Jeffrey Piccola (R-Dauphin), the Senate majority whip, represents Pennsylvanians in Dauphin and York counties. Currently the chairman of the Senate Rules and Executive Nominations committee, he also serves on several senate committees: Consumer Protection and Professional Licensure, Education, Judiciary, and Labor and Industry. ▲
Property owners deserve protection from abusive uses of eminent domain. Government should not take over private land for economic development.
Members Only • Keystone Builder
IA
On the
Hill
PA Prosperity Coalition Achieves Success A Prosperity Coalition continues to raise awareness of its Forward to Prosperity report that focused on taking advantage of economic opportunities in Pennsylvania and recognizing the sources of the state’s challenges to growth. The coalition found serious flaws in a 2003 Back to Prosperity report from the Brookings Institution that the coalition refuted with its report. The coalition drew the attention of 18 legislators during a House Local Government Committee hearing in late August. At this hearing, coalition members reviewed the major findings in the Forward to Prosperity report and explained how the report was developed.
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Despite efforts since the 1960s, fragmented local planning continues in Pennsylvania. We must find some way to transcend local balkanization to make better planning decisions. — Dr. Michael L. Young, testifying on behalf of Forward to Prosperity, which was produced by his firm, Michael Young Strategic Research.
— Scott Cannon, PBA immediate past president and owner of Cannon Custom Homes, based in Glen Riddle.
about Forward to Prosperity. Michael Young, Ph.D., elaborated on the research methods his firm used to formulate the report and stressed the opportunities for boosting Pennsylvania’s economic health through Forward to Prosperity’s nine key recommendations. Other participating coalition members included representatives from the Pennsylvania Manufacturers Association, the Pennsylvania Association of Realtors and the Associated Pennsylvania Constructors. The hearing was taped and later broadcast on the Pennsylvania Cable Network. In addition to its success at the hearing, the coalition won support for its Forward to Prosperity report at the Sept. 16 Westmoreland County Smart Growth Summit. Two presenters at the event accused each other of taking liberties with their research data and misrepresenting facts, while at the same time praising the Forward to Prosperity report. The summit provided PBA and the coalition with tremendous positive exposure for its report. PBA staff distributed more than 140 copies of Forward to Prosperityto government leaders from western Pennsylvania. ▲
ened from public use to the new concept of “public purpose.” Because of this ruling, anyone who owns property is now at risk of having that land taken for a much broader purpose than public use. In addition, the government can use this ruling to stop growth and use it against a property owner if someone convinces elected officials that he or she has a better project for generating tax revenue than what the property owner had in mind. PBA supports the separation of taking land public use and taking land for “public purposes.” The association will support bills making this distinction while keeping the public use claims as rare and “public pur-
poses” forbidden. The association will oppose bills that give additional authority to claim private property for “public purposes.” PBA participated in a House State Government Committee hearing to share the association’s position on eminent domain. As eminent domain bills progress through the General Assembly this fall, PBA staff will continue to push to preserve property owners’ rights. The task force, headed by Chairman Ron Agulnick, is open to your input and welcomes additional members. If you would like to join the task force, contact Jill Pento, legislative assistant, at (800) 692-7339 Ext. 3028 or jpento@pabuilders.org. ▲
The hearing was crucial for the coalition, because it demonstrated widespread interest in the coalition’s findings, especially considering strong committee attendance when the General Assembly was not in session. The hearing also proved to be important in getting the support of state legislators, who were educated on the flaws in the Brookings report’s finding that “sprawl” is the state’s No. 1 economic problem. After the presentation, legislators had the opportunity to ask questions. PBA President Jim Conner explained how the coalition developed its report, and Immediate Past President Scott Cannon addressed common public questions
Where Brookings erred, we believe, is in its claim that sprawl is a cause of Pennsylvania’s economic malaise. Sprawl is not a cause — it’s an effect. It’s an effect of all the shortcomings we mention in our report’s nine recommendations.
PBA Task Force Keeps Watch Over Eminent Domain Issue n an effort to protect members’ interests in the area of eminent domain, PBA has formed a task force to monitor all legislation regarding the issue. Eminent domain, recognized in both federal and state constitutions, provides government the power to condemn private property and take title for public use, provided owners receive just compensation. According to the June 23 U.S. Supreme Court ruling in Kelo v. New London, the government has more freedom in condemning property, as the standard for condemning property slack-
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UCC Legislation Aims to Ease Process BA members see the benefit of the Uniform Construction Code and will continue to benefit from its implementation as it sets standards for all municipalities. The code saves builders the time and expense of learning and complying with varying codes. PBA continues to support builders as they learn the code, with in-house expert Doug Meshaw available to answer questions on complying with the code. While the implementation of the code in April 2004 demonstrated its many positives, the code also faces a series of challenges and difficulties, which is why the PBA’s UCC task force backs legislation to amend the code. PBA’s suggested changes, covered by 14 amendments, will give more definition to the code, and help minimize the delays members face in obtaining building permits, applications and inspections. The task force identified the following three key areas that need to be addressed: • Local officials push for strict local codes. While the code sets statewide standards, local officials have tried to pass ordinances that exceed the code. Nearly all of these ordinances are unjustified, and, if adopted, would hurt the affordability of housing. PBA supports curbing local authority in creating ordinances, as the association will end up challenging most undue changes that exceed the code. • Municipal delays in inspections. Builders face costly inspection delays from inspectors interpreting the UCC differently and a shortage of qualified inspectors in some areas of the state. • Building Permit Surcharge. Although this topic is not addressed in the PBA’s 14 amendments, the task force is considering merits of a proposal that would place a surcharge on building permit applications to pay for building code training through the PA Housing Research Center. That money — from surcharges ranging $2 to $5 — would be used by the center to offer these training opportunities to builders.
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Members discussed this surcharge, as well as the other UCC issues, during regional meetings held statewide in September and October. The issue then will be debated during the November board meeting in State College. PBA members hope that by incorporating the 14 proposed amendments, the code would meet its original intent, providing consistency and clarity in building standards. ▲
Ultimate Code Concerns
PBA Expert Answers Common Questions on the UNIFORM CONSTRUCTION CODE Q: Under the UCC, what inspections are needed for residential home building? A: At a minimum, five inspections will include: • Foundation, often preceded by a footer inspection • Plumbing, mechanical and electrical system • Frame and masonry • Wallboard • Final inspection Municipalities may require other inspections to comply with the UCC. If the final inspection shows that the building is in compliance with all of the required ordinances, a certificate of occupancy is issued within five business days.
Q: May I use alternative materials and methods other than those listed in the code books? A: Yes, but the International Code Council or an ISO-approved agency, including architectural firms, can approve alternative materials and methods. The UCC also allows for use of the International Performance Code, which provides more flexibility but has a more complex approval process. Alternative materials and methods must produce the same structural strength as those permitted in the code books.
Q: How long will I have to wait for an inspection? A: Municipalities that opt in will set their own notification times — check with them. The response of third-party certified inspectors will vary. In good existing code programs, standard practice is advance notice of 24 hours. The state Department of Labor and Industry plans to ask for 72 hours advance notice to conduct inspections because of limited financial resources and personnel.
Q: Is there a time limit after I submit a request for a building permit in which the township must give me an answer? A: Act 45 clearly states that building code officials must grant or deny a permit application within 15 business days of the
filing date for residential plans or the application is deemed approved. The limit is 30 days for commercial plans. Both parties may agree to extend the deadline by a specified number of days. A permit can be issued for part of the project. However, this does not assure that the building code official will issue the permit for the entire structure. The work still must be done to the code requirements, and you must get the appropriate inspections.
Q: Is a vapor retarder required under a garage floor? A: According to the 2003 International Residential Code Section R506.2.3, a vapor retarder, which is a 6-mil polyethylene or approved vapor retarder with joints lapped not less than 6 inches, should be placed between the concrete floor slab and the base course or the prepared subgrade where no base course exists. However, the code provides an exception for garages and other unheated spaces. The vapor retarder may be omitted from garages, utility buildings and other unheated accessory structures. (This provision is a change from the 2002 IRC, which only allowed detached garages to be built without the retarder).
Q: Is an automatic door closer required on the door separating the garage from the living space? A: It is required if you use a fire-rated door. Section R309.1 of the 2003 International Residential Code requires that openings between the garage and residence be equipped with solid wood doors not less than 13⁄8 inches in thickness, solid or honeycomb core steel doors not less than 13⁄8 -inches thick or 20-minute fire-rated doors. If you use the 20minute fire-rated door, then you are required to use an automatic door closer. Doug Meshaw, PBA’s director of association and member services, helps builders solve problems and save time by answering their questions on the Uniform Construction Code. Members may contact Doug at (800) 692-7339, ext. 3007, or by e-mail at dmeshaw@pabuilders.org. ▲
Members Only • Keystone Builder
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Developers Briefing
When Regulators Say They Are Rewriting the Rules, Developers Need to Take Notice by Keith Ashley
PBA keeps developers updated on regulatory changes and other challenges that will affect their business through the new PBA Developers Council.
key dimension of the many challenges faced by residential and commercial land developers in Pennsylvania is the everchanging array of government regulations that affect their business. Voluminous regulations not only add to the cost of residential home construction, but also they make it increasingly difficult for smaller developers to keep up with never-ending changes and the associated mountains of paperwork. For larger developers, too, governmental regulations are a burdensome part of doing business. In either case, before the bulldozers roll, builders and developers have plowed through relentless red tape, with diagrams, forms and detailed plans. Seeking to help PBA members more efficiently navigate the evolving regulatory labyrinth, the association created a Developers Council to promote the exchange of ideas and provide an opportunity to hear from experts on topics important to their business. Meeting every few months, this new Developers Council already has offered programs on stormwater management, the Chesapeake Bay Tributary Strategy and upcoming changes to Title 25 affecting environmental regulations. These are all critical issues that could affect your way of doing business and your bottom line. Challenges that might appear overwhelming to a single developer are less intimidating when tackled by a group of developers providing different perspectives and business experiences. PBA’s Developers Council seeks to tap into this vast resource by providing a venue for discussions between developers to identify solutions in the most expedient manner possible, minimizing the time demands for participants.
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Your Eyes and Ears on DEP Activities During the most recent Developers Council meeting in late September, members were briefed on discussions currently underway at the state’s Department of Environmental Protection to update Title 25 of the Pennsylvania Code. That’s the section of the code dealing with environmental protection.
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Developers need to pay attention to these government-led discussions, because they have implications for residential home construction and could lead to higher development costs.
Changes Affecting Sewage Regulations In 2005, the department began its regulatory makeover by first focusing on sewage treatment. Knowing the department was drafting new regulations, PBA submitted a specific list of suggestions for improving sewage regulations. Why is this subject of such importance for developers? Well, for instance, the department is cagey when approving on-lot septic systems. Many building lots are denied sewage approvals because regulators from the department contend some technologies used for onlot systems will fail. As another example, the department often has required larger drainage or infiltration areas than are actually required by regulation. This has increased costs for builders, and ultimately homebuyers, with some of those excess costs running into thousands of dollars. In the case of on-lot septic systems, we expect that the department may require new denitrification technology. A single unit to reduce nitrogen levels released into the ground could cost builders from $5,000 to $10,000. Costs of specific systems are hard to gauge as the department has yet to approve any denitrification systems for Pennsylvania. The department’s proposed regulations for sewage treatment were expected in October or November, but had not yet been released as this issue went to press.
Upcoming Stormwater Manual In addition to its ongoing review of Title 25, the department is preparing a best management practices manual concerning stormwater control. Under the provisions of the draft version of the manual, builders must tightly control water runoff at building sites both before and after development. While the manual carries less authority than regulations, department officials already have
used it to affect the performance, type and location of stormwater structures on project sites. In other words, some changes suggested by the manual are likely to increase costs for the building industry.
The Developers’ Council Is Your Resource Changes to other environmental regulations are expected in several other areas that directly affect the building industry. Proposals affecting water quality, water resources, erosion and sedimentation control are forthcoming. By participating in PBA’s new Developers Council, members can stay abreast of changes in this area without having to make a large commitment of time. Additionally, by attending council meetings, members gain a voice in plotting the council’s course by prioritizing issues. This is your chance to use the power of PBA and its broad membership to get answers to issues affecting your business. The next Developers Council meeting is scheduled for 11 a.m., Jan. 25, in Harrisburg. For more information, contact PBA Executive Vice President David Martin at (800) 6927339 ext. 3002, or via e-mail at dmartin@pabuilders.org. The greater the participation by our developer members, the more you and your peers will benefit from the issues debated and the solutions proposed. Keith Ashley is the assistant director of government affairs for the Pennsylvania Builders Association. Members may contact him at (800) 692-7339, ext. 3013, or by e-mail at kashley@pabuilders.org. ▲
Challenges that might appear overwhelming to a single developer are less intimidating when tackled by a group of developers providing different perspectives and business experiences.
People constantly steal things when they walk through model homes, not to mention the ‘theft of services’ we experience when people use our Dumpster to get rid of mattresses or whatever else they have. This can really be expensive, and it has caused us to add a ‘theft’ category in our cost breakdown, which eventually shows up in the cost of our homes.
Worksite Theft Causes Big Headaches, Costs Big Money for Builders
— Marshal Granor, Granor Price Homes, Horsham
by Jennifer McDermitt heft violates business owners, socking them with the cost of replacement materials and tools, while tying up employees and adding hours to the project. Criminals who commit theft always seem to be one step ahead of business owners, causing those owners to choose between spending lots of money to deter thieves or face the financial consequences of not protecting their goods.
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Unfortunately, building is one industry that sees more than its fair share of theft. Because most of what builders do is at outdoor, unprotected lots and most of what is left on those lots is expensive equipment and tools, thieves have a pretty easy time ripping off the average builder. But while it may be easy and profitable for thieves to steal from your next worksite, you, as a builder, are not
helpless. There are some very simple, and cost-effective, ways to protect your worksite that will, in turn, protect your profit margins and your sanity. “Builders need to recognize theft as a problem and make it part of their business culture,” said Glen Sider, operations manager for the National Equipment Register. “Too Continued on page 16
Tips to Preventing Worksite Theft • Avoid storing equipment off premises overnight unless it is in a secured area. If equipment must be stored overnight, consider leasing or renting space at a secure self-storage facility. • Store equipment on premises in a locked building equipped with double-cylinder dead bolts and monitored security alarm. Some contractors store equipment in converted overseas shipping containers. Make sure they are padlocked and protected by padlock shields. • In high-crime areas, consider hiring a security guard or use closed-circuit television surveillance systems. Watch dogs can be used when accompanied by a trained handler. • Enclose each equipment storage area with a security fence. Good fencing is an essential element in good site security, and all construction sites should be securely fenced. But remember, good fencing requires constant monitoring and maintenance. The fence should be installed to nationally recognized standards. A clear zone of at least 5 feet should be maintained around all fencing. • Restrict access to equipment storage areas to designated workers. Provide security keys stamped “do not duplicate” to these workers. • Keep equipment storage buildings and surrounding areas well lit and free of hiding places, such as shrubbery, trees or other visual obstructions. Nighttime lighting is essential. Lighting should be elevated to eliminate dark areas and should be visible from adjacent streets. Where possible, position lighting so that it does not limit the view or create glare problems to persons who routinely check the area. • During large projects, have tool-and-stores depots permanently staffed. Require workers to sign in and out when tools are required. Use and identification pass card to identify people working on and visiting the site. ▲ Source: Construction Equipment Security, produced by the Florida Partnership for Safety and Health.
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HERE TODAY… Continued from page 15
many in the industry put their heads in the sand about the issue, and if it hasn’t happened to you yet, it’s only a matter of time before it will. The fact is, worksite theft is on the rise, and builders provide a ripe environment.”
Worksites Ripe for the Stealing So why so much hype suddenly about worksite theft? Sider says that we are hearing more in the press about work site theft for a couple of reasons, one of which has to do with the automobile industry. “Cars are getting harder and harder to steal, so equipment is quickly becoming an easy and profitable endeavor for thieves,” he said. “Even eBay has a part of its site dedicated to equipment now. Equipment theft is low risk, too, because it is not a top priority for police, which makes it even more attractive.” Sider says that the building boom that so many states are experiencing is also contributing to increased theft. “It’s pretty simple — more building, more theft. The fact is, we are getting more reports than ever before, so we know that this is not just something the press is hyping. This is real,” said Sider. DeWalt, a leading manufacturer of power tools, discovered in a recent research study that jobsite security is the #1 concern among professional contractors. These findings are supported by existing industry research and
expose an estimated $1 billion in annual losses. Actual losses are believed to be much higher, as the estimate excludes thefts that builders absorb. With lofty deductibles and the specter of premium hikes, some builders would rather pick up the replacement costs themselves. Bill Pugh, marketing manager at DeWALT, said he was not too surprised at the results of the study. “Materials costs have risen, making the theft of everything at a worksite that much more attractive. Let’s face it; worksites are relatively easy targets, so as more thieves figure this out, the problem continues to grow,” said Pugh.
If You Can’t Beat ’Em, Laugh About It After 35 years in the business, Marshal Granor, Granor Price Homes in Horsham, has seen his share of theft, but he still considers himself lucky. He hasn’t had too much over the years, and he tries to look back on his experiences with a little bit of humor. “We had one situation where we were losing lumber at a site,” he explains. “The stuff was disappearing left and right, so we decided to hire security guards to work three shifts a day. The first two shifts were easy to fill, but we had a hard time with the night shift, so we finally settled on a young guy. We found out after a while, however, that he was sleeping on the job, so we called him in. “When we told him he was fired, he said ‘You can’t fire me, or I’ll tell the police about your insurance scam.’ We were dumbfounded,
Most Commonly Stolen Equipment – 2004
Source: National Equipment Register 2004 Equipment Theft Report
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but we finally got him to tell us that a homeowner in the area was taking the lumber and putting it in his garage, telling the security guard that he was working for us and he was hiding the lumber so we could make insurance claims. He even got the security guard to help him carry the lumber!” Granor laughs about the situation now, but he says theft at all levels is a real problem in his business. He said, “People constantly steal things when they walk through model homes, not to mention the ‘theft of services’ we experience when people use our Dumpster to get rid of mattresses or whatever else they have. This can really be expensive, and it has caused us to add a ‘theft’ category in our cost breakdown, which eventually shows up in the cost of our homes.” Ralph Luttrell of Luttrell Homes in Elizabethtown also tried hiring security guards for his sites, but had no more success than Granor. “Unfortunately, you not only have to protect yourself from people in the neighborhood, but you also have to worry about the workmen on the site,” said Luttrell. If they need an extra two-by-four for their home, they just take it from the site. We hired security guards, but when they fell asleep, the stuff still disappeared,” he said.
Inside the Mind of a Thief Sider says that theft stories such as the one told by Granor are common, and they are great examples of why you need to better protect your worksite. “About half of the claims to insurance companies are for equipment, and only about 10-15 percent of that equipment is ever recovered, versus 60-65 percent of automobiles. This is a serious problem.” Sider cites reasons as to why equipment is rarely recovered: • The delay in theft discovery and reporting • Inaccurate or non-existent owner records • The lack of pre-purchase checks in the used equipment market • Limited resources that law enforcement can dedicate to equipment investigations • The difficulty of equipment investigations due to the complexities in equipment numbering systems • The lack of information available to law enforcement Sider says that reducing worksite theft, and increasing equipment recovery, is a matter of keeping good records and thinking like a thief. “You need to keep track of what you own. Know your serial numbers, because people often give the wrong numbers. When
someone finds the equipment, you never get it back, because you didn’t give the right numbers. Consider using the National Equipment Register, too, so you have a chance at getting your equipment back.” Pugh says that theft protection can be as simple as using common sense. “You have to take the time to make it harder for thieves. Take the keys out of the machines at the end of the day, lock your stuff up, and set the alarm. These are easy things, but they are often overlooked,” he said. Pugh also recommends DeWalt’s Sitelock product. Sitelock features a portable base unit and five wireless sensors. It is a user-friendly, self-installed system that can be customized for different jobsites. Through the base unit, stationed in an indoor location (most often the jobsite trailer), the remote sensors can be programmed individually to monitor key assets and areas on the jobsite. If an intruder tries to enter a secured area, disturb a piece of protected equipment, or remove a sensor, the alarm activates and a signal is sent via wireless technology to a monitoring service.
Once Bitten, Twice Shy Granor says that his theft experiences have definitely changed the way he does business, but he marks them up as learning experiences and hopes that some good comes out of them. “We have a lot of trailers on site now to keep things locked up, and we do a better job of working with the police department,” said Granor. “We’ve also learned to absorb most of the costs of theft, because we have large deductibles, and we view insurance as something to use for catastrophes.”
Pennsylvania Among Top 10 States in Thefts Reported* 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Texas North Carolina California Florida Pennsylvania Georgia Illinois Missouri South Carolina Indiana
* Large Equipment Theft Source: National Equipment Register 2004 Equipment Theft Report
Recovered Equipment – 2004 forklift dozer 2% 3% excavator 3% generator 3% loader 4% tractor
mower attachments 1% 1% other 4% skid steer 48%
10% backhoe 21%
Granor says that he also keeps a clean worksite now. “Sloppiness leads to problems,” he said. “A neat and secure site helps, because if people see trash, they throw trash there. And, if they see chaos, they assume it is easy to steal from you.” Luttrell also learned from projects that were plagued by theft. He said that numerous thefts at his larger developments gave him an idea. “We decided to put a model home on the property that faced the entire development,” Luttrell said. “We stocked the refrigerator full of sodas and snacks and mentioned to the police officers in the area that they were welcome to stop by the model homes. The officers would pull their cars into the garage and stay awhile because of the refreshments. I can tell you that we caught a lot of thieves just having that policeman in the model home keeping an
Source: National Equipment RegisterFigure 2004 Equipment 4 Theft Report
eye on the property. I could spend a lot on sodas and snacks for what we saved in theft!” Pugh says it’s important to make friends in the neighborhood in which you build. “These people are the eyes and ears of the neighborhood, so get to know them. They could be the ones who identify a thief for you later on, and once they know you, they may keep an eye on things for you, too.” He says that no matter which precautions builder choose to take, general awareness of the problem is the key to reducing theft. “Although theft is on the rise, contractors are realizing it’s a problem, and they are getting smarter, too,” he said. “There are simple things you can do and there are more products available to help you protect yourself, so in the end, the smart contractor will prevail.”▲
Insurance Claims 1996-2003 Source: National Equipment Register 2004 Equipment Theft Report
2003 2002 Theft
2001
Other *
2000
Collision
1999
Fire Damage
1998
Vandalism
1997 1996 0
10
20
30
40
50
60
Figure
% of Total Claims
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Exploring Energy Series
Part One: Ground Source Heat Pumps Systems Builders Can Suggest Systems to Help with Rising Fuel Costs by Nikki Brand ith the rising cost of natural gas, and oil, energy-efficient heating and cooling systems are important to conserve resources and lower a homeowner’s bills. Ground source heat pump systems, or geothermal pumps, are an excellent option that builders may suggest homeowners have installed during the construction of their home. Builders often rely on subcontractors to install these systems, from drilling to duct work, just as subcontractors often install other heating systems. Geothermal systems can lower a homeowner’s heating and cooling bills by as much as 70 percent. Although the upfront costs of the system are significant, the systems pay for themselves in as few as three years. There are three main types of systems — closed loop, open loop and direct exchange. Unique physical and natural features of the building site dictate which type of system is best to use.
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How a Closed Loop System Works Closed loop geothermal systems are becoming the most common type, and they also can be used for businesses. When properly installed, they are economical, efficient and reliable. Closed loop systems may feature piped coiled horizontally and vertically, based on the needs of the site. “Slinky” coils and pond loops also are used, but less often. Horizontal closed loop installations are generally most cost effective for small installations, particularly for new construction where sufficient land area is available. These installations involve burying pipe in trenches dug with backhoes or chain trenchers.
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Up to six pipes, usually in parallel connections, are buried in each trench, with minimum separations of a foot between pipes and 10-15 feet between trenches. The length of loop piping varies depending on ground temperature, thermal conductivity of the ground, soil moisture and system design. Some heat pumps work well with larger inlet temperature variations, which allow marginally smaller loops. Water (or a water and antifreeze solution) is circulated through a continuous buried pipe. The constant temperature of the earth heats or cools the circulating water loop as needed to balance the building’s year-round, heating-and-cooling requirements. A compressor and heat exchanger are installed inside the home. Once the pipe enters the house, a compressor and a heat exchanger concentrate the energy and release it inside the home at a higher temperature. In the summer, the process is reversed and hot air is extracted from the house and put into the earth, cooled and then pumped back into the house. Ductwork distributes the heat or cool air to different rooms. Electric power operates the unit’s fan, compressor and pump. So, unlike conventional systems, geothermal systems do not burn fossil fuel to generate heat — they simply transfer heat to and from the earth. If the room needs heat, the homeowner turns it up, and heat is pumped from the water loop into the room. If the room needs air conditioning, he or she turns the thermostat down, and excess heat is pumped out of the room into the water loop. Homeowners aren’t the only people struggling with rising energy costs. Large commercial buildings are faced with high bills now, and
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depending on the type of business or number of staff members, they always deal with large bills. Vertical closed loops are preferred for commercial buildings because the land area required for horizontal loops would be prohibitive. Vertical loops also are used for homes. For instance, this may be needed where soil is too shallow for trenching. Vertical loops also minimize the disturbance to existing landscaping. For vertical closed-loop systems, a U-tube (more rarely two U-tubes) is installed in a well drilled 100-400 feet deep. Because conditions in the ground may vary greatly, loop lengths can range from 130-300 feet per ton of heat exchange. Multiple drill holes are required for most installations, where the pipes are generally joined in parallel or series-parallel configurations. “Slinky” coils — overlapping coils of polyethylene pipe — also can be used in a closed loop system. The slinky coils are used to increase the heat exchange per foot of trench, but require more pipe per ton of capacity. Two-pipe systems may require 200 to 300 feet of trench per ton of nominal heat exchange capacity. The trench length decreases as the number of pipes in the trench increases — or as slinky coil overlap increases. In obviously rare cases, pond closed loops can be used. When the house or building to be heated or cooled sits near a pond or stream that is deep enough and with enough flow, closed-loop coils can be placed on the pond bottom. Fluid is pumped just as for a conventional closed-loop ground system. Where conditions are suitable, this type of system is economical and safe for aquatic life. Continued on page 20
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EXPLORING ENERGY Continued from page 19
How an Open Loop System Works Open loops require a well with substantial capacity, making this type of system unsuitable for most homes. Homes that hook to a city water system do not have the option of using an open-loop system. In an open-loop system, ground water is drawn from an aquifer through one well, it passes through the heat pump’s heat exchanger, and is discharged to the same aquifer through a second well at a distance from the first. Generally, two to three gallons per minute per ton of capacity are necessary for effective heat exchange. The transfer action between the wells earned the openloop systems its nickname, “the pump and dump system.” As in the closed-loop system, an electrically-driven compressor and heat exchanger concentrate the energy and release it inside the home at a higher temperature. Loops should not be placed close to a septic bed. Although it seems helpful for the system to remove heat from the septic bed, a septic bed requires heat to help with microbial action to break down the sewage, which weeps from the system. If the heat is taken away, the microbial action can stop, and it may harm the septic bed. To prevent this problem, drillers know to stay away from the septic drainfield.
How a Direct Exchange System Works Direct-exchange geothermal systems use the earth as an energy reservoir, taking advantage of the constant 52-degree temperature at about 4 feet below the surface. Copper tubes running underground carry a refrigerant that circulates into and out of a home. A compressor unit induces heat exchange, and heated or cooled air is distributed through an air handler. By running tubes underground, the heattransfer medium in geothermal systems always enters a home at 52 degrees, unlike other systems that are exposed to much hotter and colder outside air temperatures. Once inside the home, the compressor concentrates and delivers the heat. To increase efficiency further in the airconditioning season, waste heat can be transferred to the water heater. Research indicates that geothermal systems reduce heating and cooling cost an average of 30 to 60 percent when compared to air-source heat pumps. According to studies conducted by utility companies, the greatest savings are provided 20
by direct-exchange geothermal heating and cooling systems, since they burn no fuel and consume no energy beyond the electricity required to operate the compressor and the fan used to circulate the air.
Rash said propane and fuel oil would have to drop to 50 cents per gallon to compete with geothermal systems. What sets direct-exchange systems apart from other geothermal systems is the fact that only one transfer is required for heat exchange, compared to the two steps required in waterbased systems. In direct-exchange systems, the refrigerant is distributed through copper tube, which is in direct contact with the earth heat source for effective thermal transfer. Water-based systems rely on two transfer stages, requiring about twice as much energy, as well as a circulating pump, which is not necessary for directexchange systems. The copper tube used in direct-exchange systems is an excellent heat conductor — much more efficient than the plastic tubes used in water-based systems. This conductivity enables copper systems to work more efficiently with smaller-diameter tubes than those used in plastic systems, so bore holes are smaller, reducing excavation and installation costs.
How to Market Geothermal Systems to Home Buyers When builders communicate the benefits of geothermal systems to clients, it shows they care about their clients because they want to help them save money on utilities. geothermal systems also create a more comfortable environment, which builders also want to provide for their clients. PBA Member Mike Rash, vice president of Morrison Inc., a Duncannon-based company that has installed 3,000 geothermal systems since 1981, said his company has packets of information they will give to builders. The information in these packets help explain how the systems work and the many advantages of having a system installed. One of the biggest selling points is probably the cost savings geothermal systems offer clients. Rash said one example is that it could cost $500 a year to heat a 2,000-square-foot home with a geothermal system, compared to $1,500 with an oil furnace. Rash said propane and fuel oil would have to drop to 50 cents per gallon to compete with geothermal systems.
I Keystone Builder •November/December 2005
Allen Lawver, president of Apex Geothermal in Shaefferstown and a PBA member, has been installing geothermal systems since 1978 and notes the phenomenal savings of using the systems. “The cost savings is 30-60 percent on heating bills, 20-70 percent on cooling bills, and $350-600 per year on water heating bills,” he said. “Payback time” for installation of a geothermal system on an existing house is about three to five years. However, the system is already paying for itself on day one for new homeowners. For instance, if new homeowners finance the geothermal system, it could add $40 a month to their mortgage payment. But using the system could save them $50 a month in utilities, so they’re saving $10 per month to use the system. Clients who have the system installed also comment on how comfortable the interior of their home is. Lawver said traditional heating systems blow very hot air out of ducts, and then the rooms start to cool, compared to the geothermal system which blows a steady stream of air at a comfortably warm temperature. He also said clients like how quiet the system is. He said in the summer, when people are sitting on their decks, there is no loud motor in their yard to listen to since everything is indoors. Another positive aspect of the geothermal system is that it is environmentally friendly. “Geothermal heat has no exhaust, no emissions — it is the greenest form of energy at this time,” Lawver explained. Rash said that the system relies on solar energy, as heat from the sun is naturally stored in the ground. The ground remains a constant 52 degrees year round in Pennsylvania. It’s that heat that the geothermal system harnesses and concentrated in winter, far more efficiently than air source heat pumps. The same 52-degree ground temperature provides the cooling needed in the summer. The longevity of the geothermal systems makes them attractive to homeowners. None of the systems require much maintenance or updating. Since the unit’s fan, compressor and pump are housed indoors and away from harsh weather conditions, they usually last for 20-plus years. The high-density polyethylene pipes used in closed- and open-loop systems last for 50-75 years, and the copper pipes used in directexchange systems could last even longer. One of the reasons may be that the pipes are not affected by chemicals normally found in soil. Usually, periodic checks and filter changes are the only required maintenance. In open-loop systems, poor water quality can cause mineral deposits to build up inside the heat pump exchanger, so periodic cleaning may be required for that reason.
Who uses geothermal systems? Rash said it is people young and old, business owners and homeowners. He said although the systems have been available for years, he noticed a growing interest around June 2004 — possibly because of the energy cost savings. Plus, he said after the systems have been in place for 10 years or more, people may be more comfortable with the systems because they have proven to be safe and effective. “Young people are having the systems installed, but older people are too for either the cost savings or because they believe it will help with the resale of their home,” Rash said. “It definitely helps with the resale of a home.”
Rash said Morrison has installed the systems on prisons, schools and other buildings that are larger than homes, but most clients are homeowners. Lawver said his company works with builders to install the system during phases of the construction process. The drilling is done after the excavation is completed, the duct work is done after the roofing and framing are completed but before the electrical work. The finish work is done after the drywall is in place. “Since fossil fuel prices have gone up so drastically, it might be a good selling point for builders to talk to their clients about geothermal heat pumps,” Lawver said. Builders can contact their local ground source heat pump system installer to
▲
Going the Geothermal Route
How Does Your Heating System Add Up? • Oil-fueled furnaces operate at 85-88 percent efficiency • Gas-powered furnaces operate at 93-96 percent efficiency • Air-to-air conventional heat pumps operate at 200-300 percent • Ground source heat pumps operate at 360-420 percent receive brochures or other information they can discuss with their clients. Interested builders may also visit www.geoexhange.com. ▲
GSHP Systems Can:
▲
• • • •
Save 30-60 percent on heating bills Save 20-70 percent on cooling bills Save $350-600 per year on water heating bills Start paying for itself immediately for new homeowners • Pay for itself in 3-5 years for the owners of existing homes
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Raffle event to benefit the Foundation For Housing. All attendees are urged to purchase a chance to win this dream car. Tickets are available via your local association, NJBA or at the AC Convention Center for only $10 each (no limit).
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Exhibitors Reserve NOW at www.abconvention.com November/December 2005 • Keystone Builder
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Builder Case Study
Susquehanna S
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Builder’s savvy business background helps company’s success soar by Nikki Brand nowing how to build isn’t the only skill that makes a construction company thrive. Ray Venema’s background in marketing, sales, long-range planning, goal-setting and budget balancing helps keep his company operating smoothly and efficiently. Top his business sense with the personal attention he gives every client and you’ve got the formula for a great company. Venema was born and raised in Montoursville, and after going to college and working outside of the area, he returned to the small town in 1997 to build his family a house. Working with the builder ignited his passion for the home building industry, and he
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started his own company. Susquehanna Builders now does business in a 60-mile radius of Lycoming County, where about one in five of his customers are buying their first homes, and the rest are moving up into higherend homes. Members of the local West Branch Susquehanna Builders Association recognized the company for its excellence by giving it the 2004 Builder of the Year Award after Susquehanna’s fourth year in business.
Learning Along the Way to Company Ownership Venema spent many years learning about the business worl, and the building industry, before he started his own
Some companies have clients deal with a sales person who is different from their color coordinator, and a different land manager, and a different construction manager. People like being involved with me instead of being handed off to someone else. My involvement is one of the reasons we get referrals. Being involved with the owner, and being involved with one person, makes people comfortable. — Ray Venema, Susquehanna Builders 22
I Keystone Builder • November/December 2005
company. His journey toward collecting this valuable information began with an interesting choice in colleges. He attended St. Mary’s University in Halifax, Nova Scotia, on a basketball scholarship. He said at the time, he thought the away games would provide him with a great opportunity to travel. He earned a bachelor’s degree in business administration and, after college, held jobs for different materials manufacturers, where he accumulated sales and marketing experience. “In 1989, the owner of Ausherman Homes asked me if I wanted to work for him,” Venema said. “It was during a recession period in the U.S., and he wanted me to manage his loan portfolios. Over the next year and a half, we renegotiated all of our loans and kept the process going. I gained a tremendous amount of knowledge.” He managed the sales and marketing department and later,
company operations. The company had about 130 employees and Venema streamlined processes to make operations more efficient. Noting this success, Floyd Grayson of Grayson Homes tapped Venema to become his vice president of operations and charged him with rebuilding the sales force. “At both Ausherman and Grayson, we placed a lot of emphasis on training,” Venema said. “We worked on quality control, quality management and goal setting. He moved back to Montoursville in 1997. Venema said working with builder as his new home was completed sparked a passion within him for the industry. He analyzed the Williamsport market and found little home building activity. He also discovered it was a good market for “moveup” homes. He started constructing spec houses and building a good reputation before incorporating the company in 2000.
Keying on Involvement with People From his experiences, Venema has learned that contact with clients is essential, and supporting the community provides marketing opportunities. “When I did financial or long-range planning at past jobs, I hardly ever saw my customers,” Venema explained. “And at many companies, clients never see the owner. I am involved with every aspect of my business. Some companies have clients deal with a sales person that is different from their color coordinator, and a different land manager, and a different construction manager. People like being involved with me instead of being handed off to someone else. My involvement is one of the reasons we get referrals.” Venema takes the opportunity to network and learn from other builders. He serves as
second vice president, membership coordinator and special events coordinator for the West Branch Susquehanna Builders Association. He believes every home builder could benefit from building association programs. “Being involved in the association helps me stay aware of changes in regulations, environmental issues and laws,” he explained. “Instead of being reactionary, I am prepared to deal with the issues. I get enjoyment out of getting a chance to excel in my leadership skills. I help bring awareness of our association to the community. I also like the networking opportunities I have with others in the industry. I enjoy talking to my competitors about codes and other things in common that we deal with, and I extend my hand to them and tell them that my door is always open.” Venema also is a member of the NAHB’s Builders 20 Club, part of a NAHB intiative that helps builders draw on peers’ knowledge to improve their companies’ efficiency. As part of Builders 20, Venema meets with this group of builders from non-competing areas of the country for training and discussing industry issues. Using public relations tactics learned at past jobs, Venema has found ways to advertise his company while also contributing to the community. One example is when he donated three available lots to Habitat for Humanity for building homes. He said having Susquehanna Builders’ name on a sign on the property created exposure for the company. When funds fell short, Susquehanna Builders also pledged money to the Pennsylvania College of Technology to send students to an NAHB skills program. “Pennsylvania students rank high in the nation in this program, and as builders, we need to make sure these students have monetary support for training,” Venema said. “We need to have good builders in the state.”
Recipe for a Good Future Venema has all of the pieces in place at his company to continue succeeding in business. He makes a budget for each project and tracks expenses through the process. Venema said that unlike some builders, he analyzes the budget and asks himself where costs are moving, tracks how many hours are worked on each project, and keeps revenues up by evaluating everything. He also said that the company’s warranty work is half a percent of its revenue, another plus for the company’s bottom line. Venema’s wife, Sharon, does the accounting for Susquehanna Builders, but he has no other direct employees — just tradesmen, many of whom work exclusively with him. He’s also offered his son, Eric, an opportunity to work in the industry, but he isn’t giving him any special favors. “Eric is 20 and this is a great experience for him, but he is a subcontractor,” Venema said. “I wanted him to be independent of me so he would be held accountable for his work.” Venema hopes his work in the community and advertising efforts through avenues such as television commercials will help his business to expand into other communities and have a greater market presence. ▲
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November/December 2005 • Keystone Builder
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New Product Hilti Jig Saw with Barrel Grip Adds Control to Cut The new Hilti WSJ 850-EB Jig Saw delivers maximum cutting power, increased precision and added control, so comfort isn’t compromised for accuracy. The jig saw’s barrel grip allows the user to get closer to the work for more precise cuts. A unique counterbalance reduces vibration by up to 60 percent, while the soft grip further dampens vibration. The hands-free blade removal with keyless blade change saves time and allows for easy blade changes and safer handling of hot or broken saw blades. Hilti jig saws are the most powerful jig saws available, and the new 8.4 amp WSJ 850-EB is no exception. Its Smart Power system maintains constant blade speed under load to significantly reduce cutting time even in thicker materials. The saw’s OptiCut Action, which is the unique combination of a longer blade stroke and active orbital action, enables the removal of more material on each upward stroke for more aggressive cutting to get the job done in less time. For more information on Hilti products, call Hilti Customer Service at (800) 8798000, or visit www.us.hilti.com.
Corner a cooler, drier and more functional work shirt than the standard cotton T-shirt. After extensive jobsite research, Gorgonz discovered that more than 60 percent of construction workers bring multiple T-shirts to the jobsite each day to change out of wet, clingy shirts as they work. To build a better work shirt, Gorgonz developed the new Evaporative Cooling Technology fabric. The natural fibers quickly absorb perspiration, thereby leaving the skin dry. The synthetic fibers force the perspiration to the surface of the shirt. Airflow comes in contact with the perspiration and quickly evaporates it. The majority of seams on the Performance Work Shirt are reinforced with heavy-duty stitching, while the shoulder region contains a second layer of ECT fabric. Vented side panels allow maximum air circulation within the shirt. The Performance Work Shirt also has an odor neutralizer built into the fabric. The shirt was designed with multiple pockets on the chest and left arm to hold smaller items that cannot be easily stored in a tool belt or pants’ pocket. The pockets on the shirt are secured with hook and loop closures so items don’t fall out. For more information on Gorgonz products, call (877) 725-4386, or visit www.Gorgonz.com.
100 percent via a wall-mount, touch-button control panel. At its lowest setting, 10 percent, the HeatLogic heat management system removes 85 percent of heat radiating from the Perennia into the hearth room. The HeatLogic system controls heat levels by producing an adjustable cool air curtain between the Perennia’s dual glass front design. The system draws fresh air from either inside or outside the home to establish and maintain the air curtain. Increasing or decreasing the amount of heat from the fireplace involves varying the air circulation intensity, which washes away the radiant heat from the inner glass front and either distributes it into another room, furnace duct system or expels it outside the home. The Perennia is a 30,000-BTUs input/hour, direct-vent gas fireplace that is 41 inches wide by 38 inches high by 22 3⁄4 inches deep. It is available with two wide fronts in a variety of finishes. For more information, call (888) 427-3973 or visit www.heatnglo.com.
Liberty FrenchClad Doors Usher in Nature While Still Being Durable
Heat & Glo Perennia Fireplace Good Year Round
Gorgonz Introduces Cooler, Drier Work Shirt
Gorgonz Performance Work Gear recently introduced the next generation in work wear apparel with the new Performance Work Shirt, 24
The new Perennia gas fireplace from Heat & Glo enables homeowners to treat themselves to a roaring fire in any climate, any time of year. Using a patented HeatLogic heat management system, the Perennia lets homeowners adjust the amount of heat radiating from the fireplace without diminishing flame height or quality. Homeowners can adjust Perennia’s heat output level in 10 percent increments up to
I Keystone Builder •November/December 2005
Pollard Windows manufacturer of the Liberty Collection vinyl-clad wood windows, has engineered the Liberty FrenchClad Door
to enhance interiors with radiant light while still being durable and maintenance free. By combining Low-E Argon filled insulated glass and a Hi-Q Warm Edge spacer with a durable, maintenance-free PVC exterior, Pollard’s Liberty FrenchClad Doors provide maximum light without sacrificing energy efficiency or security. Pollard’s Liberty FrenchClad Doors are available in a choice of three standard grill configurations — colonial, prairie and provincial or a custom configuration. Multiple hinging options for single or double openings suit any application. The classic hardware, made of stainless steel, has the added security of a three-point locking system. For more information, call (800) 8464746 or visit www.pollardwindows.com.
New Fypon Trim Provides Versatile Alternative to Wood
The Fypon PVC Trim is a new alternative to using wood, but is as dense as pine. It is available in woodgrain and smooth styles, plus beaded boards and corner boards. The trim is insect, mold and mildew resistant and water repellent. It is easy to maintain, cut and fabricate, repair and install. Available in 5⁄8-inch, 3⁄4-inch and 1-inch thickness, sheet rock stock can be used for trim applications and architectural millwork in residential and commercial projects. It can be made into a variety of products, including door and window trim, soffit, fascia, rake boards, battens, pilasters, frieze boards and wainscoting. Preassembled corner boards are available in 4-by-4 inch by 10-foot, and 6-by-6-inch by 10-foot configurations and can be used to cap the corners of homes and to provide a finishing trim for siding. Bead board is 1⁄2 inch thick and pre-machined with a surface v-groove. For more information, call (800) 446-3040 or visit www.fypon.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.
A STABLEHOME in an UNCERTAIN WORLD.
Introducing the FrameWorks® Building Systems.
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 November/December 2005 • Keystone Builder
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NEW PRODUCT CORNER Continued from page 25
New Durock Products Help Ensure Integrity of Tile Installations USG has introduced a new family of Durock Brand mortars, mastics, grouts and accessories developed specifically for use with the company’s Durock Brand Cement Board and Fiberick Brand Aqua-Tough Tile Backboard. Durock’s four new mortar formulas will cover needs of most ceramic tile installations. The choices include latex-modified fast set, high-performance mortar; medium-set, high-
performance mortar; multi-purpose mortar; and flexible thin-set, high-performance mortar. The tile mastic options available include high-performance, multi-purpose and commercial-grade mastics.
New latex-fortified grouts are available in both sanded and unsanded versions, available in white or gray. For more information, call USG at (800) USG-4YOU, or visit www.usg.com. ▲
Building News You Can Use Forefront Software Now Does Truck Ticketing
Dexter + Chaney has integrated BMG Seltec’s Site Automation truck ticketing software into its Forefront Construction Management Software, giving aggregate and asphalt suppliers and construction companies, a seamless quoting-to-invoicing system. Information obtained about jobs, materials and customers is entered only once into the system, where it resides in a single location for invoicing purposes. Information flows automatically between the Forefront and BMG Seltec’s applications. Integration of the BMG Seltec with Forefront software creates a single, continuous process that eliminates multiple steps between quoting, ticketing and invoicing, thus increasing accuracy of customer billing, reducing frustration and enhancing job and company profitability. A single point of data entry into the system eliminates errors that 26
typically result from multiple entry of the same data. The integrated Forefront quote-to-billing system improves productivity. In older timeconsuming operations, information entered at the main office is faxed to the scale house, where it’s entered a second time into the system. Later, office staff must match information on paper tickets to customers for billing. For more information about Forefront, call (800) 875-1400 or visit www.dexterchaney.com.
Sullair Introduces Literature on AirMetrix Program Sullair Corporation has developed new literature outlining the AirMetrix program, a systems
I Keystone Builder •November/December 2005
approach that examines individual components of an air system and how they work together. The literature describes the seven components of the program, systems controls, products, air audits, system monitoring, down stream products, CustomerCare and AirTility. The literature also explains how this systems approach drives lower energy usage, helps factories run more smoothly, and cuts maintenance and utility costs. The six-page, four-color brochure shows how a review of both the supply side and demand side of the air system helps ensure constant, steady pressure and uninterrupted workflow. AirMetrix literature is available by calling Sullair at (800) SULLAIR or visiting www.sullair.com. ▲
November/December 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
3000 Transport Street Richmond, VA 23234 (866) 294-7979
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.
To locate an independent retailer near you visit our website at: www.bwimillwork.com
Visit us at booth 22 & 23 at the Builder Expo in Hershey, PA
Masonite and Barrington are registered trademarks of Masonite International Corporation. Specialty is a trademark of Specialty Building Products., Inc.