January/February 2006
© 2003 Andersen Corporation. All rights reserved. 3079PC.
The window on the left was built in the 1930s. The one on the right, last week. Or was that vice versa?
Andersen® 400 Series Woodwright™ double-hung windows blend traditional style with Twenty-First Century technology. For the perfect look, choose from oak, maple or pine in standard sizes or custom dimensions for renovations. Visit andersenwindows.com or contact the dealer below.
L O N G L I V E T H E H O M E®
For complete information on the full line of Andersen SM products contact these Andersen Excellence Dealers.
A.D. Moyer Lumber, Inc. All Locations
John H. Myers & Son All 6 Locations
MRD Lumber Co. Both Locations
www.admoyer.com 610-367-2036
www.jhmson.com 800-637-0057
570-366-0578
Shelly’s Lumber Building Supplies All Locations
Klinger Lumber Co., Inc. Elizabethville
www.stockbuildingsupply.com
717-362-3311
215-723-5108
Fagen’s Building Centers, Inc. Pittsburgh
Stock Building Supply Myerstown & Paradise
Kohl Building Products All 8 Locations
412-323-2100
www.kohlbp.com 800-578-5645
J.H. Brubaker, Inc. All Locations
Lezzer Lumber All Locations
800-723-5546
www.lezzer.com 800-326-9562
Strober-Haddonfield Group Easton 610-252-6190
The Lumber Yard All Locations www.thelumberyard.com
Walter & Jackson All Locations www.walterandjackson.com 610-593-5195
Andersen Windows, Inc. 100 Fourth Avenue North, Bayport, MN 55003 1-800-426-4261
Any contractor knows
the products.
it’s not just about
It’s about getting windows
and patio doors when you need them. It’s about having access to people who know the product line and the building business.
Selling building materials is not rocket science, but serving the needs of contractors who buy them comes close.
Count on The Lumber Yard to add value to everything we sell. • Featuring high-quality AndersenŽ windows for over 40 years • 99% accuracy on AndersenŽ orders • Local inventory of AndersenŽ products • Professional design services on specialty windows • Free take-off and measurement services • Professional installation services available • Showrooms at select locations • Satisfaction guaranteed • On-staff window service technicians
)T AIN´T JUST ABOUT WINDOWS
www.thelumberyard.com
4
I Keystone Builder • January/February 2006
Keystone
Official publication of the Pennsylvania Builders Association®
b u i l d e r 24
10
18
Volume 3 • Issue 1 January/February 2006
Contents Meet Your President
10 Exploring Energy Series 16 21 Pressure Headaches Builder Case Study 24
Brad Elliott, PBA’s 2006 president, foresees numerous opportunities for homebuilders in 2006.
®
PRESIDENT Bradford H. Elliott HBA of Bucks/Montgomery Counties VICE PRESIDENT Mary Pucciarella, Blair County BA TREASURER Stephen D. Black, BIA of Lancaster IMMEDIATE PAST PRESIDENT James L. Conner Lawrence County BA, Mercer County BA
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 how builders can maximize energy efficiency and increase the comfort of a home with an airtight house. During period of low inflation, rising housing costs frustrate builders. Learn how to explain these costs to your customers. Bob Siegfried of Siegfried Construction can’t imagine being in business without help of builder associations.
Departments President’s Column • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 6 Association News • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •9
Members-Only Section Ultimate Code Concerns: PBA defends Uniform Construction Code to save money for builders and their customers. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • A Builders News Briefs
•••••••••••••••••••••••••••••••••••B
2006 Leadership Retreat: Destination Education provides the tools local leaders need to thrive at PBA’s annual leadership retreat. • • • • • • • • • • • • • • • • • • • • • • • • • C On the Hill: Up-to-date legislative information for our members. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D
President’s
Keystone
®
Official publication of the Pennsylvania Builders Association
b u i l d e r An Exclusive Publication of the PBA Keystone Builder magazine is published six times a year by the Pennsylvania Builders Association®, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. With the exception of official association announcements, the statements of fact and opinion that are made herein are the responsibility of the authors alone and do not reflect an opinion or philosophy of the officers or the membership of the PBA. Materials may not be reproduced without written permission from the PBA headquarters. Address Correspondence To: Keystone Builder 600 North Twelfth Street Lemoyne, PA 17043 Phone: 800-692-7339 or 717-730-4380 Fax: 717-730-4396 Web: www.pabuilders.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
Keep Your Association Working for You and Delivering Value ears back as I started my own business, Elliott Building Group, I had a few things to learn about the building industry and how to make my company successful. While I knew I had the foundation from my years as a project manager with Toll Brothers (itself a valuable lesson in operating a small business), it came to me that I could benefit from opportunities to share ideas with experienced building entrepreneurs. Even in an industry as competitive as ours, I was able to reach out to fellow builders and occasionally probe them with some questions over lunch. They helped me solve problems — in a way that PBA members can all help each other. As I begin my year as your statewide association president, I hope that we can develop new and expanded ways for our members to draw on the wealth of other members’ experience. PBA staff are available to further complement this: Doug Meshaw is one of the state’s leading experts in the building code, Keith Ashley quotes regulations chapter and verse (and explains them to us), Lou Biacchi keeps up with a dozen or more legislative issues at a time and the PBA field service directors work in concert with your local associations to improve its service to you. I started my business with houses built on spec and small developments. From my involvement with the HBA of Bucks and Montgomery Counties and PBA, I know many of you face similar issues. That’s why I want our association to be a problem-solver — and I hope a money-saver — for you.
Y
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.
6
Message
Opportunity Abounds One of the greatest lessons I have learned through my association involvement is that progress often takes time. In an ideal world, we could push through our ideal legislation quickly, and, after some work from PBA’s government affairs committee and our lobby-
I Keystone Builder • January/February 2006
Brad Elliott
PBA President ing efforts, get results in the time it takes to frame a house. In reality, today’s typical homeowner may move into his next house more rapidly than the time it takes to pass thoughtful legislation. For instance, PBA worked 10 years to pass the Uniform Construction Code, which finally was signed into law in 1999. Yet the code did not take effect until spring 2004. Understanding the realities of the environment in which we work, I realize that PBA will work toward goals in my presidency that may not be realized for a few years. Still, we must take every opportunity to present the case for our needs — that promote a healthy economy, growth throughout our state and make housing affordable and accessible for today’s Pennsylvanians. Creating workforce housing continues to challenge our industry, particularly in some areas of the state. As we work to defeat threats like the proposed hike to the realty transfer tax and ever-growing, costly regulation, we need to stress that these issues are not just about the profitability of our industry. We must act as stewards of our customers, continuing to remind government officials that regulation and other costs continue to reduce the number of residents able to afford their own homes. It is time for Pennsylvania to join other states like Massachusetts, Connecticut and New Jersey, and pass legislation that prevents local governments from exclusionary zoning practices that drive up the price of housing so that only the wealthy can afford a new home. On issues like the repeated proposals to raise the realty transfer tax as a new funding source, PBA has demonstrated its commitment to keep housing costs down for our cus-
tomers. We’ve spoken up and spoken articulately, and we need to continue these worthwhile efforts. Developers and builders face an array of costly environmental protection and site improvement requirements. State regulations implemented for different reasons come from separate departments that enforce them inconsistently across various areas of Pennsylvania. Local government officials often make matters worse by developing their own demands for site improvements and environmental requirements during the approval of our development plans.
I hope in years to come our leaders will see the value in creating a universal standard for improvements we must make when subdividing land and building homes. The value, of course, will be to constituents who seek affordable housing. In many cases, this also will produce a more sustainable environment by ensuring we don’t over-build the infrastructure supporting our development projects. Please join me as I work to make PBA membership more valuable to you professionally while the association proves its continuing worth to your business. ▲
Supporting the Housing Industry, Growing Your Business Premier Partners is a new program offered by PBA. The sponsorships from Premier Partners allow PBA to offer additional products and services to members expanding the value of membership. In return, the association provides Premier Partners with a comprehensive mix of opportunities to reach PBA members — at PBA events, on the PBA web site and through Keystone Builder magazine. Three levels of sponsorship — gold, silver and bronze — represent commitments of $10,000, $15,000 and $25,000. Visit our web site at partners.pabuilders.org for more information. In the course of your business, consider the following companies, who are Premier Partners of the Pennsylvania Builders Association.
SILVER LEVEL SPONSORS
A STABLEHOME in an
Country Classics Furniture/L & K Restorations, LLC These dual companies, a custom furniture shop and a full-service window restoration, replication and pre-finishing company, are based in Walnut Bottom. (717) 477-8606
UNCERTAIN WORLD.
Capital Blue Cross
Capital BlueCross provides for 21-county service areas throughout Pennsylvania with easy-to-use, comprehensive and innovative health care products for employer groups and their members. (717) 541-7000
Introducing the FrameWorks® Building Systems.
BRONZE LEVEL SPONSORS Eckert Seamans
Eckert Seamans Cherin & Mellott, LLC is a national full-service law firm based with officers in Harrisburg, Philadelphia and Pittsburgh. (717) 237-6000
USI Affinity
USI Affinity is a leading distributor of insurance and financial products and services and a partner with the Pennsylvania Builders Association Benefits Trust. (610) 537-1380
Federal Home Loan Bank of Pittsburgh
The Federal Home Loan Bank of Pittsburgh provides low-cost funding and opportunities for affordable housing and community development through financial companies. (412) 288-3400
2-10 Home Buyers Warranty
2-10 Home Buyers Warranty offers warranty protection for new, pre-owned and manufactured homes, covering the home, systems and appliances. (609) 760-4669 (southeast PA) (800) 488-8844 (Northeast & Central PA)
Builders Expo: Professional Strength
See us at the 2006 Builders Expo, Nov. 16, at the Giant Center in Hershey. (717) 232-5595
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 learn more about becoming one of PBA’s Premier Partners, please contact Bill Lapitsky at 800) 692-7339, or by e-mail at blapitsky@pabuilders.org.
To find our other locations, visit us at www.strober.com January/February 2006 • Keystone Builder
I7
8
I Keystone Builder • January/February 2006
Association N e w s
ASSOCIATION NEWS Continued from page C
Leading Your Association in 2006 Bradford H. Elliott, President Brad Elliott, owner of Elliott Building Group, Langhorne, is the 2006 president of the 12,000-member Pennsylvania Builders Association. Before being elected as PBA president, Elliott served PBA in several other positions. He served as vice president, secretary, regional legislative officer, regional vice president and director. He also served as chairman of the Pennsylvania Committee for Affordable Housing and chairman of the regulatory affairs committee. Locally, Elliott is a member of the Home Builders Association of Bucks and Montgomery Counties, where he served as president, vice president and chairman of the land use committee, which later became the government affairs committee. He is also a member of the Building Industry Association of Philadelphia and Lehigh Valley Builders Association. Outside PBA, Elliott is treasurer and founding board member of Artist in Residence, a nonprofit organization that places professional artists in residence for public schools. His interests include sailing and skiing. Elliott is a magna cum laude graduate of Brandeis University, Waltham, Mass., where he received a bachelor of arts degree in sociology and a graduate of Sloan School of Management, Massachusetts Institute of Technology, Cambridge, where he received a master’s degree in management science. He lives in Bucks County with his wife, Robin, and three children. Contact Elliott by phone at (267) 852-4500 or at bhelliott@ebgmail.com.z
Stephen D. Black, Vice President Stephen D. Black, president of Stephen Black Builders in Lititz, is the 2006 vice president of PBA. Previously, he served as the association’s secretary, as a regional vice president and as a director. He served on the public relations/public affairs committee and as chairman of the workforce development committee. Locally, Black is a member of the BIA of Lancaster, where he served as secretary, vice president and president. Black received the Regional Vice President of the Year Award from PBA in 2003, and the Distinguished Service Award from the BIA of Lancaster in 2002.
Black and his wife, Gloria, have two children, Eric and Collette. Contact Black by phone at (717) 626-1778 or at steve@stephenblackbldr.com.
Rob Jones, Associate Vice President Rob Jones, vice president of Glick Associates, serves as the PBA associate vice president. Previously the Northcentral regional vice president and regional legislative officer, Jones also served on the former membership committee. He also has served as president and vice president of the Central Susquehanna Builders Association, where he was also a member of the home show committee. Jones is a member of the Associates Council and the Pennsylvania Housing Research Center Committee. He was named Regional Legislative Officer of the Year in 2002. Contact Jones by phone at (570) 743-7332, or at rjones@glicks.com.
Ray Fertig, Secretary Ray Fertig, vice president of Richard D. Poole LLC, is a member and past president of the York County Builders Association. He has served on the PBA board of directors and government affairs committee, as well as representing his region as a regional vice president. In addition to serving as the president of his local association, Fertig served as NAHB director, vice president, treasurer, secretary and director. He was chairman of the York County Parade of Homes committee. Contact Fertig at (717) 741-5270 or at rfertig@rpoole.com.
Kenneth L. Medina, Treasurer Kenneth L. Medina, a senior financial consultant with M & T Bank in Harrisburg, continues the second year of his term as PBA treasurer in 2006. Medina has previously served the association as a member of the Builder Services Inc. board of directors, as well as chairman of the BSI finance committee. He serves on the Associates Council, the Government Affairs Committee and the board of the Pennsylvania Coalition for Affordable Housing. Locally, Medina is a member of the Lebanon County Builders Association, where
he was instrumental in his local’s partnership with BIA of Lancaster in holding a joint Parade of Homes in 2006. He has participated in the local’s Habitat for Humanity Project, which he will continue again in 2006. A licensed member of the National Association of Securities Dealers, Medina holds a bachelor’s degree from Penn State University and a master’s degree from Lebanon Valley College. Contact Medina at (717) 652-5492, or at kmedina@mandtbank.com.
James L. Conner, Immediate Past President A member of the Lawrence and Mercer county builders associations, Jim Conner, owner of Conner Construction in New Castle, is PBA’s immediate past president. Conner has served PBA as president, vice president, treasurer, director and regional vice president. The recipient of the Small Contractor of the Year Award in 2001, Conner served on the membership and bylaws committees. Locally, Conner has been a member of the Lawrence County Builders Association for 18 years, where he served two years as president, was a national representative for five years and served more than a decade on the board of directors. He also served on the local membership committee, home show committee, and the reputable contractor committee. Contact Conner at (724) 658-2279, or at jconnerconst@adelphia.net.
2006 Regional Leadership Team PBA’s regional leaders support the association’s senior officers and serve as a link between local associations and statewide leaders. Both regional vice presidents and regional legislative officers are elected annually to serve members in their regions. Regional vice presidents attend local association meetings, co-chair regional meetings and serve on the PBA board of directors and executive committee. Regional legislative officers are vital in keeping PBA updated with members’ views on important issues, which help guide them as they work with the government affairs committee to formulate the association’s position. Continued on page 18
January/February 2006 • Keystone Builder
I9
by Eric C. Wise, Editor rad Elliott strolls into one of his company’s model homes with a walk that shows purpose beyond browsing or even checking in with his professional staff who are ready to greet potential home-buyers at the Fox Creek development near Easton. Elliott strides up the walkway with a driven, determined pace. His walk is no amble; he’s faster than the pace of runners getting their exercise in the development. As he reaches the house, he points out two landscaping flaws obvious to him during his dash to the front door. Poking through the home’s interior, Elliott is like a mosquito drawn to a lamp in the dining room. Yet it’s the dark bulb drawing his eye, and he checks to see if it’s tight in the socket. “We need a light bulb,” he notes.
B
10
I Keystone Builder • January/February 2006
Finding the dim bulb and landscaping flaws are automatic responses. They are unremarkable compared with dozens of other things he scans and dismisses — in place and immaculate to visitors who may be interested in a home at Fox Creek, available for $600,000 to $800,000. Home-buying prospects who glimpse Brad Elliott in action could grasp the origin of “the Elliott advantage.” The Elliott Building Group’s attention to detail and pride in craftsmanship stem from the company’s founder and namesake. Elliott makes certain the devotion to details extends beyond a marketing slogan and is followed out by everyone on his team. He knows it’s his name on the home. In this way, Elliott provides the dedication to excellence common to PBA members from hands-on, small builders to large-scale devel-
opers. As the association’s leaders saw in October during the PBA Leadership Retreat, Elliott brings the same intensity and attention to detail to his role in shaping the future of your association.
Elliott Completes 11th Year in Business as He Begins PBA Presidency Elliott, as all incoming PBA presidents, inherits a mix of challenge and opportunity that faces the homebuilding industry and the association. For instance, PBA called on its
membership twice in 2005 to defeat proposals to increase the realty transfer tax. Members are watchful and cautious as legislators continue to toy with contractor registration. As always, regulatory agencies struggle to develop strategies that protect the environment, keep workers safe and promote economic growth — we hope, without overburdening the building industry and its profitability. Elliott wants the Pennsylvania Builders Association to continue serving as a problem solving resource for its members. He points to the expertise of Doug Meshaw, PBA director of membership, whose knowledge of the construction code provides an example of the Continued on page 12
January/February 2006 • Keystone Builder
I 11
Brad Elliott
2006
PBA President Company: Elliott Building Group, Langhorne, Pa. Association Experience: Joined the Home Builders Association of Bucks and Montgomery Counties after founding his company in 1994. Now also a member of Lehigh Valley Builders Association and Building Industry Association of Philadelphia. PBA Leadership: Served as chairman of Pennsylvania Committee for Affordable Housing, chairman of the regulatory affairs committee, southeast regional legislative officer, southeast regional vice president, association secretary, association vice president and various task forces. Elliott pushed for the Committee of 75, which encourages corporate contributions to PaCAH. Local Builders Association Leadership: Founded his local association’s land use committee (later to become the government affairs committee), served as chairman of the land use committee, local vice president and president.
BRAD ELLIOTT Continued from page 11
type of service the organization can provide. Elliott wants PBA to provide a similar service for regulatory questions, providing expertise on environmental and other issues facing most developers and builders. One way this will happen is through the association’s Developers Council, which serves as a forum and problem-solver for developer members. Started in 2005, the council’s role will expand in 2006, as it serves members with its own newsletter, holds regular meetings and encourages developers to work through issues together. As the association continues to grow and provide these services, Elliott stresses that its greatest calling remains the services it provides to small and medium builders. In the current regulatory climate, it’s the big builders who have a tremendous advantage, he argues. PBA should support its core — those without such economies of scale — to help them survive and thrive in the business. Elliott calls overregulation the greatest challenge to the industry today. “We have to provide two main services,” he said. “We must advocate for the industry while educating our members on how to best do business in today’s climate.” Elliott said, “The best we can hope to do is slow down the pace of regulation.
Family: Married to wife Robin for 21 years, with three sons. Father and brother experienced in the homebuilding industry. Interests: Sailing, skiing and (regrettably yet unavoidably) golf. ▲
12
I Keystone Builder • January/February 2006
We need to provide builders the tools they need to be successful in an ever-changing regulatory environment.” The burdens placed on home builders are easily illustrated as Elliott compares the process of getting a permit today and when he started his business. Just 11 years ago, Elliott presented three plan sheets, a short application and a check (often under $1,000), and quickly had his permit. Today, he says, it takes 30 to 90 days and requires a check for $5,000 and a 5-inch stack of paperwork generated by four separate consulting professionals. To ease some of the restraints on builders, Elliott yearns for a time when Pennsylvania adopts uniform site improvement standards to be used by all municipalities across the state. Such a shift would result in four benefits: • It would provide uniformity with less confusion. • Site improvement requirements would be based on scientific standards, making sure they aren’t over-built or under-built. • Having such a standard would keep costs down for home buyers. • Ultimately, it would be better for the environment, too, by ensuring infrastructure is sized properly to the project.
Elliott’s Outlook for Presidency The key to understanding Elliott’s outlook for his presidency is how he got
involved with builders associations and how he thinks the association should work. Elliott’s involvement stems from the passion for the industry he shares with many members that led him to become active in the Home Builders Association of Bucks and Montgomery Counties. At this local association, he founded and served as chairman of the land use committee (later it became the government affairs committee). In 2000, he served as president. Elliott was instrumental in the hiring of the local’s first full-time government affairs director in 2001. His local involvement then grew into statewide leadership through the PBA. “I recognized the value of membership with the passage of Acts 67 and 68,” he said. “The locals were involved, but the driving force was PBA. Locally, we could get no support to beat the anti-growth movement.” With the passage of these bills, PBA avoided the worst of the anti-growth movement that was propelled by activists who seized on antisprawl emotions, particularly strong in southeast Pennsylvania. Elliott sees more opportunity for cooperation among builders from lower- and higher-growth areas of the state. In developing priorities and direction for PBA, Elliott relies on members.
“It should be a bubbling up of ideas from members to the board and to the executive committee,” he said. PBA leaders must recognize the opportunity they have because “members come and want to give their input.” Putting democratic principles in action, Elliott said, “I want to make sure people see value in attending board meetings.”
Elliott’s Foundation: Background in Building and Housing Led to Career as Developer Elliott’s background ties him to both building and housing, although he didn’t exactly follow his father in the business. “I used to visit building sites with my father on weekends.” His father worked in real estate investment and development. Elliott started his education earning a bachelor’s degree at Brandeis University in Waltham, Mass., and a master’s degree at Massachusetts Institute of Technology in Cambridge. He went to work with Toll Brothers, one of the nation’s largest builders. As he progressed from assistant project manager to senior project manager, Elliott learned more skills needed to operate a small business. “I call Toll Brothers my post-graduate work,” he said. He left the company to found his own in 1994. “Starting your own business is exciting and frightening,” he admitted. “You have ideas, but you’re not sure where you will go.” He began with 10 credit cards, and built a house on spec his first year. It wasn’t until he guided Elliott Building Group through its first development, Parkside Ridge (near New Hope) when the company “really got rolling.” While the 16-lot subdivi-
sion represents a smaller development, it was the catalyst to moving the company forward. Early in the company’s growth, Elliott was joined by partner John DiPasquale, who now serves as the company’s chief executive officer. “He brings a lot of energy, vision, and a lot of trust,” Elliott said of DiPasquale. The company now employs 60 people. In 2005, the company built about 200 homes, and Elliott said he would like to ratchet that up to 250 or 300 in 2006. “Our vision is to build 500 homes per year within three years,” he said. The company now has land in Pennsylvania, New Jersey, Delaware, Maryland and Florida. As your statewide association president, Elliott hopes to put his drive and attention to detail to work as he interacts with the association’s members and expands the benefits of membership. “It’s one of the few industries where you use all of your education — from kindergarten through graduate school — meeting a diverse group of people along the way,” he said. But this education is incomplete without the wealth of knowledge that comes with experience, a treasure held by builders’ groups, including PBA and local associations. For this to work, Elliott says, builders must feed information back into PBA so that members act to solve problems together. Elliott recalls how many veteran builders helped him as he ventured out with his own company. As homebuilders, he says, “We are very competitive, but also very supportive.” His energy, determination and enthusiasm leave little doubt that Elliott will make the most of his year as your 2006 president to make sure your association serves your needs and helps your business. ▲
January/February 2006 • Keystone Builder
I 13
Construction Services
• Land Clearing • Drilling & Blasting • Paving • Portable Crushing & Screening A Division of BRUBACHER EXCAVATING, INC.
825 Reading Road • P.O. Box 528 Bowmansville, PA 17507 717-445-4571 • www.brubacher.net
Brubacher Excavating, Inc.… Shaping the World We Live In…
We Are Growing From the Ground UP with more homes, more manufacturers and more of the products you want to see. GIANT Center Hershey, PA March 15-17, 2006 www.pahomexpo.com 888-242-7642 to register sponsored by:
Pennsylvania Manufactured Housing Association and the PA Propane Foundation
14
I Keystone Builder • January/February 2006
Ultimate Code Concerns PBA Defends Uniform Construction Code to Save Money for Builders and Their Customers State agency’s ruling supports statewide building standards in the UCC by PBA Staff he state Department of Labor and Industry in November ruled in favor of the homebuilding industry as it upheld uniformity of the statewide construction code by denying a township ordinance that would have exceeded the code and required fire sprinklers in all new homes in that township. It would have also required any existing structures to be retrofitted with sprinklers if an addition of more than 1,000 square feet were built. This decision reflects a precedent in the department’s rulings that has been made quite clear: Local ordinances that exceed the Uniform Construction Code will not be permitted unless clear and convincing circumstances that meet the criteria set forth in the act. PBA, the Home Builders Association of Chester and Delaware Counties and others challenged the Schuylkill Township (Chester County) ordinance on the grounds that it exceeded the requirements of the state building code and that local conditions did not warrant such an exception. “I want to make clear that the Pennsylvania Builders Association is not opposed to the use of fire sprinklers in residential buildings, but we think it should be the consumer’s choice to add sprinklers, not a government-mandated requirement,” said 2005 PBA President James L. Conner. “PBA is a strong advocate for affordable housing, and government-mandated fire sprinklers would raise new home construction costs by several thousand dollars. National research has shown that for every thousand-dollar increase in a new home’s cost, another 240,000 people are priced out of home ownership.” In issuing its decision dated Nov. 15, the Department of Labor and Industry noted that the state’s Uniform Construction Code does not mandate fire sprinklers in one- and twofamily homes and townhouses of three stories or less, yet the township’s proposed ordinance would have required such equipment. In issuing the ruling, the department concluded that the township did not provide “clear and convincing local climatic, geologic, topographic or public health and safety
T
circumstances or conditions in the Township to justify the exception.” By establishing uniform building requirements for residential construction across the commonwealth, the UCC is improving the safety, performance and energy efficiency of new homes. Pennsylvania’s building code was enacted by the state legislature in 1999 and went into effect in April 2004. “It’s easy to understand that the benefits that come from having a Uniform Construction Code arise from its consistent application across the state,” said Conner. “The code ensures the quality and safety of new home construction in Pennsylvania while maintaining affordability. If needless variances to the code are granted to various localities, the advantages of having a single building code for everyone will be lost, and municipalities will be able to halt growth by passing expensive ordinances. That’s why the PBA will continue to advocate for a single, uniform building code administered consistently by code officials across the state.” The Pennsylvania Builders Association prefers to leave decisions to national construction experts regarding whether local amendments to the Uniform Construction Code are necessary. These experts carefully evaluate the code to keep it up-to-date in order to protect the safety of people buying new homes, townhouses and apartments. Housing consumers should have the right to choose whether or not they want their homes to be built to exceed code standards. Schuylkill Township officials have 30 days to decide if they will appeal the ruling in the court of common pleas. The department’s decision is consistent with its ruling from May, when it denied a similar ordinance in Conewago Township, York County. The Conewago ordinance was to be applied to new construction including buildings exceeding 5,000 square feet, buildings exceeding 3,750 square feet housing flammable materials and townhouses.
These decisions build on the first attempt to exceed the code, which the department struck down last November. Dauphin County’s West Hanover Township enacted three ordinances that would have exceeded the code with amendments pertaining to garage and carport construction, smoke alarms and dwelling unit separation. Through the same reasoning as the more recent decisions — lack of unique local conditions justifying the excessive ordinance — the ordinances were disallowed. PBA members are encouraged to contact Doug Meshaw, PBA director of association and member services, at (800) 692-7339, ext. 3007, with questions on the code or to keep him informed of local government attempts to undermine the statewide building code through excessive ordinances. While local governments continue to challenge the code and threaten the benefits of its standardization throughout Pennsylvania, the leaders of PBA hope the department’s decisions will discourage many potential challenges to the code through local ordinances. ▲
Members Only • Keystone Builder
IA
Builders
News Briefs
News From Around the State Members Needed for PBA’s New Regional Land-Use Task Force BA seeks members to join its new task force concerning regional land use planning. At its Nov. 11 meeting, the board of directors voted in favor of devoting association resources to tackling this issue. Volunteers will help study regional land use issues and plan strategies to suggest to the board for further action. To join the task force or to learn more about it, please contact Keith Ashley at (800) 692-7339, ext. 3013, or by e-mail at kashley@pabuilders.org.
P
Tax Notice: You May Be Able to Deduct a Portion of Your Dues A portion of members’ dues payments may be deductible for ordinary and necessary business expenses (not as charitable contributions). Under federal law, dues that support lobbying efforts are not deductible as a business expense. Members are encouraged to contact local builders association executive officers to find out what portion of their dues payment from is eligible for 2005 and 2006.
Keystone Custom Homes Grant Provides for Safety Training PBA member Keystone Custom Homes has announced it will sponsor OSHA-certified training for five local associations. The cost of providing and marketing training sessions will be reimbursed for up to $3,000 at each of the associations involved. Eligible builders associations include Philadelphia, York, Lancaster, Bucks/Montgomery and Chester/Delaware.
Popular TradeSecrets E-Newsletter Reaches Broader Audience TradeSecrets, the PBA electronic newsletter, recently unveiled an updated look and reached out to a broader audience. In response to member interest, many more PBA B
I Keystone Builder • Members Only
members now receive this valuable member service and popular publication. Anyone may view TradeSecrets through the PBA web site at tradesecrets.pabuilders.org and all members with an e-mail address on file will now receive each issue automatically on alternating Fridays. Members may contact Eric Wise at (800) 692-7339, ext. 3003, or by e-mail at ewise@pabuilders.org to join the TradeSecrets e-mail list. Please contact Eric with your story ideas or with any questions and concerns about TradeSecrets, the web site or Keystone Builder.
Developers Council Plans Expanded Slate for 2006 PBA’s new Developers Council, launched this year, is planning expanded activities and services for 2006 to meet the needs of memberdevelopers. Goals for the next year include a new, customized electronic newsletter, enhanced networking opportunities and specialized meetings highlighting developers issues. To fund these activities, PBA has announced a fee schedule for Developers Council members: $500 for members overseeing up to $10 million per year in building projects; $1,000 for members developing projects with a total value up to $25 million; and $1,5000 for developers leading projects valued at more than $25 million. The next meeting is scheduled for Jan. 25; the location is not yet determined. Developers are strongly encouraged to contact PBA with their ideas for shaping the Council’s 2006 agenda. For more information, contact David Martin at (800) 692-7339 ext. 3002, or via email at dmartin@pabuilders.org.
West Branch Susquehanna BA Supports Penn College Students Penn College Construction Association, a student organization affiliated with NAHB, will attend and compete in events at the International Homes Builders Show in January, thanks to the support of a local builders association. Ray Venema, second vice president of West Branch Susquehanna BA, pledged $1,000 to support the students, sparking the interest of
State Officials Begin Review of Drinking Water Regulation, PBA Eyes Process Officials from the state Department of Environmental Protection have begun updating regulations concerning safe drinking water. The review, part of a larger plan to update the state environmental regulations covered in Title 25, will address four primary goals. These include meeting federal requirements, amending regulations to improve data quality, coordinating these regulations with others that address drinking water and clarifying requirements to improve compliance. More information on this process is available here from the department. You may also contact Keith Ashley at (800) 692-7339, ext. 3013, or by e-mail at kashley@pabuilders.org.▲
PBA Membership Opens to Employees of Member Firms
PBA membership has been opened to thousands of workers in the construction trades as the organization created a new affiliate member category. PBA’s board of directors voted to amend the Article IV of its bylaws during its November meeting. Affiliate membership allows employees of current PBA members to access PBA member benefits for $25 per year. Benefits will include a subscription to PBA’s Keystone Builder magazine, access to member-only sections of the PBA web site, and eligibility for service on PBA committees and task forces in non-leadership positions. For more information, contact David Martin at (800) 692-7339 ext. 3002, or via e-mail at dmartin@pabuilders.org. ▲
Destination Education Provides the Tools Local Leaders Need to Thrive PBA members hold their arms out as hypnotist Anthony Gailee tested the crowd to find the best subjects for hypnotism.
Danny Cox was the second ifty local leaders keynote speaker of the weekend, from builders associapresenting on Saturday. Cox tions throughout shared techniques for improving Pennsylvania gathered Oct. efficiency with innovative leader21 and 22 in State College ship and teamwork techniques. for the Pennsylvania Builders This year’s educational sesAssociation annual leadersions covered financial manageship retreat. Anthony Gailee (back) ment, relations with government In the opening keynote shows how relaxed officials, communication with the address, nationally-recognized PBA’s volunteers media, UCC developments, and speaker Anthony Galie became when they PBA services available from field demonstrated hypnotism with were hypnotized. service directors. a few brave volunteers. Galie From left: Thad Wendt, PBA staff led a full slate of discussed how successful peoDanielle Policare and educational sessions at the conferple often use forms of selfKenn Medina. ence to help leaders understand hypnotism — although they their role in PBA and how to better serve never recognize it as such — to gear themmembers. Lou Biacchi, director of governselves up for an important meeting or for just ment affairs, unraveled the lobbying, legislastarting the day. While Galie and PBA memtive and regulatory processes. Pat Miorin, bers had fun with the volunteers, the session chief financial officer and assistant executive featured solid information to help members get the most from themselves. vice president of the PBA, explained the
F
financial responsibilities of being an association officer. Scott Elliott, director of public relations and public affairs, led a session that provided the basics for dealing with the media, including giving media interviews. Public relations staff members Megan Roby and Eric Wise complemented this presentation, covering preparing effective news releases and effectively speaking in public. Arlene Kerner and Rob Milne, two of PBA’s three field staff representatives, shared information about how local associations can get the most from PBA through the field service directors. Friday’s sessions ended with dinner and entertainment from Earl David Reed. After dinner, Reed introduced himself to many conference attendees, having fun as he worked his way through the group and joked with PBA members. Prior to the leadership retreat, The PBA Executive Officers Council provided executive officers free Microsoft Excel and NAHB Web Membership System training. ▲
Brad Elliott of Elliott Building Group in Langhorne, the 2006 PBA president, welcomed PBA leaders and executive officers to the 2006 Leadership Retreat.
The 2006 PBA leadership retreat seminars are available 24-hours-a-day on the Web at pabuilders.org. Choose “Member Education” from the Resources menu at the far left of the page. A new page will open with links to highlights from the sessions provided by the PBA staff.
PBA Holds November Board Meeting Jim Conner, 2005 PBA president, leads the discussion during the association’s board of directors meeting in November. Key issues at the meeting included the election of officers and representatives to NAHB, addressing challenges to the UCC. The board also decided to oppose an increase to the realty transfer tax and it adopted policy positions about eminent domain and mold.
Members Only • Keystone Builder
IC
On the
Hill
Builders Buck Tax Onslaught Against Home Buyers Association takes position on contractor registration bill, supports property rights against abusive eminent domain.
Proposed Tax Changes of Great Concern to PBA tate legislators debated dozens of bills during October and November as they tried to remedy the real estate tax burden that smothers Pennsylvania property owners, especially homeowners. PBA called its members to action twice nearing the end of the year to defeat proposals that would shift the tax burden to limited classes of taxpayers. First, the association geared up to oppose a move to increase the realty transfer tax. PBA and the Pennsylvania Association of Realtors agreed that shifting the tax burden for funding schools onto the shoulders of new homebuyers is unfair, and funding for education should be equally shared by all residents in the state. In addition, an increase would give Pennsylvania the distinction of being the state with the steepest realty transfer tax (combined state and local), which could be a major deterrent to prospective homebuyers — and employers — in our state. More than 400 people participated in PBA’s online letter-writing campaign to contact legislators in opposition of the realty transfer tax hike backed by the Republicanled Commonwealth Caucus. Pennsylvania’s Republican-controlled House of Representatives decidedly voted against Commonwealth Caucus proposals in late November, leading the prime sponsor to withdraw the package before a final vote. As this issue went to press, association leaders voted to oppose a proposal to expand the state sales tax to include a variety of services. The proposal, expected to be introduced as an amendment to Special Session House Bill 1, specifies several construction-related services that will be taxed, in addition to professional services including legal, real estate, and accounting. The association would support a revenue neutral increase in the personal income tax tied to a decrease in school property taxes. This is seen as a broader-based, fairer proposal. PBA opposes bills that target
S
new homebuyers (like realty transfer tax) or specific, limited classes of taxpayers. PBA members are also concerned about proposed changes to mortgage interest deductions and state and local tax deductions. According to NAHB, a presidential commission report calling for the overhaul of the nation’s tax code is the biggest tax hike for homeowners ever proposed. It would replace the deduction for mortgage interest with a much more limited 15 percent tax credit and would eliminate deductions for state and local taxes and home equity loans. PBA will be helping members keep a close eye on this and other tax issues.
PBA Offers Amendments to Contractor Registration Legislation For 12 years, PBA has successfully opposed any and all legislation related to contractor registration. A new bill, SB 1000, has surfaced in the Senate that is backed by Sen. Robert Tomlinson (R-Bucks). The bill, as written, exempts new home builders and applies to home improvement contractors. Although PBA opposes this bill, its opposition may be removed if two amendments are attached to the bill. PBA proposes the following amendments: • PBA would pay for group registration, similar to the PA One-Call system. This would allow PBA members to avoid paying the $50 fee and registering individually with the attorney general. • The establishment of statewide contractor registration would prohibit preclude any local attempts to require contractor registration or licensing.
Eminent Domain Update PBA expects that Pennsylvania lawmakers will pass legislation protecting homeowners from abusive uses of eminent domain. Like their compatriots in many other states, Pennsylvania legislators proposed bills to limit the right of local governments to seize property following the U.S. Supreme Court
ruling in Kelo v. New London, announced June 23. PBA members and property rights advocates balked at the ruling’s contention that property may be condemned for “public purposes.” In some cases, this broader definition allows the government to take private property, which is then turned over to another private party that intends to use it in a way that would increase the local tax base. PBA is awaiting movement for two bills in the state legislature regarding eminent domain. The first bill, Senate Bill 881, prohibits the exercise by any government authority to employ the power of eminent domain to take private property in order to use it for private commercial enterprise. This bill was introduced by Sen. Jeffrey Piccola (R-Dauphin) and is co-sponsored by three legislative leaders, Sens. David Brightbill (R-Lebanon), Robert Jubelirer (R-Blair) and Noah Wenger (R-Lancaster). The second bill, Senate Bill 897, amends Title 26 (Eminent Domain) by creating the Eminent Domain Code to provide a complete and exclusive procedure and law to govern all condemnations of property for public purposes and the assessment of damages. The legislation, introduced by Majority Leader David Brightbill (RLebanon), provides for a procedure to condemn, which would be brought in the court of the county in which the property is located or, if the property is located in two or more counties, in the court of any one of the counties. PBA supports these bills and will push to strengthen the protection offered to Pennsylvania property owners. Additionally, a bipartisan majority of the U.S. House of Representatives passed a bill this November that would withhold federal funds from municipalities seizing property in order to build their tax base. PBA continues to watch legislation relating to eminent domain across the state and nation. PBA is eager to hear from its members on this topic. Please contact Lou Biacchi at (800) 692-7339, ext. 3018, or by e-mail at lbiacchi@pabuilders.org. ▲
Want more information about any of these topics? PBA updates its members in a biweekly electronic newsletter that is now available to all our members. To view TradeSecrets, visit the PBA web site at www.tradesecrets.pabuilders.org and follow the TradeSercrets link under “Press Room.” You can also send an e-mail to Eric Wise at ewise@pabuilders.org to receive the newsletter by e-mail.
D
I Keystone Builder • Members Only
I
January/February 2006 • Keystone Builder 15
Exploring Energy Series
Part Two: Tight Building Envelopes Builders Can Maximize Energy Efficiency with Airtight House by Nikki Brand onstructing a house with a tight building envelope is one of the best starts to helping the home be comfortable and energy efficient. Making sure each component of the home fits together tightly, using dense insulation products, and sealing even the smallest gaps in the structure are tactics builders can use to make sure the house is appropriately sealed. However, builders must strike a balance between building a virtually airtight house and allowing the home to have enough ventilation to promote good air quality. With some extra care, builders can fulfill their clients’ goals of conserving energy resources, saving money on heating and cooling bills, and helping their families have a comfortable and healthy living environment.
C
Sealing the Envelope There are many ways to tighten the building envelope. Fiberglas is still a popular insulation product, but there are many other options, such as spray foams. Ed Carr, is president of the Comfort Home Corporation, a company that specializes in evaluating how well a building is sealed. He performs any additional work needed to seal the home and measures the increments of improvement between its pre- and post-sealing work. The company’s Comfort Home program is offered at a discount to PBA members. “The major approach to getting the building shell secure is to make sure all of the components are tight and create an air barrier,” Carr said. “The framing contractors need to do the framing and blocking as well as can be done, and then we do air sealing and identify where extra sealing is needed.” Mark Fortney, director of the Pennsylvania Housing Research Center, said that some of the most important places to seal gaps and prevent penetration to the building envelope are areas leading to the attic. He said that since heat rises, looking for possible air leaks in plumbing vents, pull-down stairs to the attic and recessed lighting can help. Door and window frames can also leak, according to Fortney, but air leakage out the top of the house is a greater contributor to energy loss. J. Roger Glunt, president of Jayar Construction Company uses another method — Icynene — to seal the building envelope. 16
Icynene is a brand name for polyicynene, an open-cell foam insulation that is sprayed into walls, floors and ceilings. It is an effective air barrier, minimizing air leakage that can lead to mold, mildew and other building envelope damages, and Icynene insulates and “draft proofs” a building at the same time. In addition, it is an effective “breathing” air barrier that can adjust with the building to maintain a seal against energy-robbing air leakage for the life of the building. Convective air movement inside wall cavities is virtually eliminated, providing more uniform temperatures throughout the building. The result is superior quality construction, with higher comfort levels at lower thermostat settings and lower heating and cooling costs. “When I first started using Icynene, it was a premium product, but in the last five years, 90 percent of my clients want to use Icynene,” Glunt said.
There is more money misspent than spent on energy efficiency. — Ed Carr, president of Comfort Home Corporation There are many other insulation products for builders to use. Some of them are cellulose — which can be used in a dry or wet form — and urethane. These are just some alternatives to Fiberglas, and these wet insulation options are often denser. Polyurethane is a spray-applied foam that is known for its air sealing properties and strength. When sprayed into a wall or attic, it forms an extremely effective air seal and adds rigidity to the structure. Polyurethane helps eliminate drafts and provides improved humidity control due to its closed cell structure, which is impervious to moisture and reduces dust and pollen allergens within the structure. Polyurethane provides up to 40 percent energy savings as compared to traditional insulation methods. Another option is loose-fill cellulose fiber insulation, made from recycled paper products such as newspapers and telephone books that are pulverized into a fibrous material and chemically treated for fire and pest resistance. This is typically blown into walls, and
I Keystone Builder • January/February 2006
when tightly packed into walls, research has shown that it can reduce a house’s overall air leakage rate by as much as 50 percent. Some loose-fill cellulose is intended for damp application. Called “stabilized” cellulose due to its semi-rigid texture and resistance to settling, these products require special installation equipment that mixes water into the insulation as it is blown into place. Sometimes a small amount of adhesive is added. When installed in wall cavities, the wet cellulose sticks and forms a monolithic batting, acting as a single pre-cast piece of solid insulation spanning the wall. These products, and others like caulk, can be used to seal the outside and inside of areas around walls, electrical, plumbing, lighting, bathtubs, fireplaces, ductwork, doors, windows, roofs, basements, crawl spaces, garages, and even places like joist cavities between floors. So why are homeowners spending extra money on products like Icynene, and why are companies like Comfort Home Corporation staying busy with ensuring home energy efficiency? There are several reasons, but the rising cost of energy expenses makes spending the extra money even more attractive to some homeowners.
Promoting Comfort One of the reasons builders are spending more time and money on making sure they have a tight building envelope that exceeds energy efficiency requirements is to provide the homeowner with more comfort. Insulation slows down the conduction of heat through walls, ceilings and floors in both winter and summer. It was first used extensively during the 1940s and 1950s, not to save fuel (which was relatively inexpensive), but to increase comfort. “There is typically a 30-50 percent air loss in a home,” Fortney explained. “The number one reason for a tight building envelope is comfort, followed by reducing noise and lowering energy bills.” Carr said that when people feel cold, they look for a draft from a window or door. Replacing windows or doors that leak can eliminate drafts that directly cause discomfort for the homeowner, but he said only about 5 percent
of energy efficiency can be improved by replacing doors and windows. “Major air leakage is through the top of the house — the ‘chimney effect,’” Carr explained. “There is more money misspent than spent on energy efficiency.” So, while tight building envelopes increase comfort, energy efficiency is also increased. Proper insulation and sealing gaps in the home also make a good sound barrier. “People can’t see the tightening of a home, but they could feel more comfortable and it reduces noise transfer into the house,” Fortney said. “Reducing the sound from outdoors is good for houses in places such as near airports.”
Saving Money
A tight building envelope can also improve air quality by sealing out allergens, dust and preventing mold. However, sealing a house too tight can make air quality unhealthy by sealing in pollutants. “The question is, how tight is too tight?” Fortney said. “Homes need some air ventilation. For instance, placing fans in bathrooms where there is moisture buildup is important.” Glunt said his company uses the motto, “Insulate tight, ventilate right.” He said they use heat recovery ventilation. A heat-recovery ventilator, sometimes called an air-to-air heat exchanger, differs from conventional vents and fans. With standard ventilation, air circulates through static, open vents or is expelled by fans, such as those used in bathrooms, kitchens and attics. When room air escapes or is expelled, the energy that was used to heat or cool it is wasted.
▲
With the rising cost of heating a home, the energy efficiency resulting from a tight building envelope is becoming almost as important as the comfort it provides homeowners. The spray foams can be more expensive but often pay for themselves in the utility savings homeowners experience. They are better than the old phenolic foams that often caused boards to shrink, warp or decompose. Glunt said since the Icynene he uses expands to 100 times its initial volume to seal every part of the home, it helps homeowners use less energy to heat and cool their homes, which also increases the life of heating and cooling equipment. He said it tightens the building envelope to reduce energy bills by 50 percent and even contributes to meeting to Energy Star mortgage requirements. In some cases, builders are eligible for a $2,000 tax credit for each home they build that provides 50 percent energy savings for heating and cooling over the 2004 International Energy Conservation Code and supplements. At least 20 percent of the energy savings must come from building envelope improvements. Carr said the Comfort Home Program his company offers was developed using extensive research with experienced builders and subcontractors who examined air filtration control, proper HVAC equipment sizing and system design, and inspection of sample building shells and mechanical systems during construction. The performance of homes that used the program was reviewed and is tested so well that Carr said the company can guarantee the energy savings. “We calculate the amount of fuel units the homeowner will use and guarantee lower energy bills,” Carr said. “Since 1984, we’ve worked on in excess of 100,000 homes, and this guarantee has worked well for us.”
Improving Health
What a tight building envelope should do: • • • • • • • • • • •
Control heat flow Control air flow Control water vapor flow Control rain penetration Control light, solar and other radiation Control noise Control fire Provide strength and rigidity Be durable Be aesthetically pleasing Be economica
An HRV can save 75 percent or more of that wasted energy. As it pushes out stale air, it pulls in fresh air, and — with little or no mixing of the two air streams — it transfers the heat or chill from the outgoing air to the incoming supply. The fresh air arrives pre-heated or pre-cooled and, with some units, pre-humidified or dehumidified.
Testing is Key Many companies use equipment that test homes to locate inefficiencies in the building envelope and prove that they are fixed. This allows the builder to see that the work was completed correctly and can provide solid proof for homeowners, who can’t actually see energy loss.
One of the pieces of equipment that is used to measure how well a building is sealed is a “blower door.” The basic blower door consists of a powerful variable-speed fan, mounted in an adjustable panel that temporarily fits in a doorway. It is used to move air through the building in a controlled fashion. Pressure gauges connected to the fan measure the rate of airflow required to maintain the building at a certain pressure. This controlled airflow is used to find specific leaks. Carr said Comfort Homes also uses infrared equipment that can detect leaks the human eye cannot see. “We do infiltration testing in the beginning and then at the end to prove the changes that have been made,” Carr said. “The builder should have standards and trained people to do the work, and they should verify that the building is tight after it is completed. We do testing to identify what the incremental improvement is.” Communicating the many benefits of using special practices and products to ensure a tight building envelope can be enough to interest some homeowners, but marketing tips can be found elsewhere and using the Comfort Home program is one way builders can learn marketing tools. The Comfort Home program is a nationally recognized, new-construction, premier home program. It is one of the most technically advanced residential energy efficiency programs available and has been offered as a PBA member benefit since 1999. The program combines proven energy conservation techniques and a solid marketing approach that makes it easier for builders to construct and sell energy-efficient, comfortable homes. Homes built through this program use 25 to 40 percent less energy for heating and cooling than standard homes. To the benefit of consumers, this program is backed by a comfort and energy consumption warranty. This warranty is backed by the Comfort Home Corporation, not the builder. The warranty guarantees homeowners that during the first year their family lives in the house, Comfort Home will correct heating and cooling deficiencies in any area of the residence. The homeowner’s energy usage is guaranteed for three years, so long-term problems can be corrected. PBA members who participate in the program have cited the warranty as a tremendous marketing tool they can offer new homebuyers at no additional cost. The Comfort Home program can be used by PBA members regardless of the size of homes they build. For more information, contact Ed Carr at (800) 367-7223 or visit www.comforthome.com. ▲
January/February 2006 • Keystone Builder
I 17
ASSOCIATION NEWS Continued from page 9
Southeast Serving: HBA of Chester/Delaware Counties, HBA of Bucks/Montgomery Counties, BIA of Philadelphia, HBA of Berks County, Lehigh Valley BA RVP: Joe Dolan, president of Reading-based Dolan Construction, is a member and former vice president of the HBA of Berks County, where he has served on the board of directors, and led the following committees: legislative, ethics and carpenter apprentice. He also served on the Parade of Homes and bylaws committees. Dolan served as the Southeast RLO in 2004-05 and also on the government affairs committee and board of directors. Contact him at (610) 372-4664, or at jdolan@dolanconstructioninc.com. RLO: Ron Agulnick, owner of Ronald M. Agulnick LLC, is a member of the HBA of Chester and Delaware Counties, where he held the position of solicitor and served on the legislative action committee and various task forces and subcommittees. Agulnick received the Associate of the Year Award from his local association and the same award from PBA. Agulnick is a PBA life director and served on PBA’s government affairs committee, Industry Action Fund subcommittee, bylaws committee and various task forces. Contact him at (610) 692-2611 or ragulnick@yahoo.com
Southcentral Serving: Franklin County BA, BA of Adams County, BIA of Lancaster County, York County BA RVP: Lawrence Yanover, Yanover & Sons Inc. begins his first year as regional vice president. He is a member of the York County BA. RLO: Larry Eberly, owner of Larry Eberly Builder, past president of Franklin County BA, begins serving as regional legislative officer in 2006. Eberly also served as vice president, secretary/treasurer and board member at his local association. He led his local association’s membership committee as chairman and show committee as co-chairman. He was honored as a Builder Member of the Year in 2002 and Grand Spike winner in 1999. In addition to his Greencastle-based business, Eberly teaches at the Franklin County Career and Technical Center as an adult education carpentry instructor. Contact him at (717) 860-0619 or leberly@innernet.net.
Southwest Serving: Monongahela Valley HBA, BA of Metro Pittsburgh, BA of Fayette County, Washington County BA 18
RVP: Ronald Cole, president of JJS Contracting in Uniontown, is a member of the BA of Fayette County, where he served as treasurer, vice president and president. Cole also served as membership committee chairman and on the local PaCAH committee. He continues in his second year as RVP, after serving as RLO in 2004. Contact him at (724) 438-8668 or jjscontracting.inc@verizon.net. RLO: Charles Begley of Claysville-based Begley Home Improvement serves as the regional legislative officer. He is a member of the Washington County BA. Contact him at cbegley@mail.mlynk.com.
Scott Cannon (left, 2004 PBA president) and Jim Conner (far right, 2005 PBA president) congratulated Charlie Miller (middle left) of York County BA and Austin Mostoller (middle right) of Somerset County BA for earning the life director designation.
capacity to the board for the Pennsylvania Builders Association Benefits Trust. Contact him at (814) 443-6631 or wirsing@zoominternet.net.
Mideast Serving: Huntingdon County BA, HBA of Metro Harrisburg, Mifflin-Juniata County BA, Lebanon County BA, Schuylkill County BA RVP: Vicki Shannon, executive vice president of Harrisburg-based McNaughton Homes, serves as regional vice president. She served as president, vice president, treasurer and secretary at the A of Metro Harrisburg, where she was also a member of the government affairs, personnel, political action, by-laws and Parade of Homes committees. She served as a PBA board member since 2004. She is also a member of the York County BA. Contact her at (717) 2344000 or vshannon@mcnaughtonco.com. RLO: Roger Zimmer, president of Zimmer Grove Homes of Harrisburg, served as the 2003 president of PBA and continues his service in 2006 as a regional legislative officer. A life director of PBA, he served PBA as vice president, secretary and treasurer. He is a member of the government affairs committee and previously served on the bylaws and executive committees and was a trustee for PaCAH and the Pennsylvania Builders Association Benefits Trust. Contact him at (717) 545-7704 or zghomes@comcast.net.
Midwest
Northeast
Serving: Clearfield County BA, Blair County BA, Indiana-Armstrong BA, HBA of the Alleghenies, Somerset County BA, Greater DuBois Area BA, Elk and Cameron Counties BA RVP: Linda Schreiber moves from regional legislative officer to regional vice president in 2006. She is a Realtor with Re/Max Results Realty Group and a member of the Blair County BA, where she served as a board member and secretary. In Blair County, she served on the social, golf and gallery of homes committees. On the state level, she participated in the former editorial review board and served on the government affairs committee and public relations/public affairs committee. She is also a director for the Allegheny Highland Board of Realtors. Contact her at (814) 946-9355 or lms8423@aol.com. RLO: Chauncey C. Wirsing of Wirsing Builders in Somerset is now in his second term as president of the Somerset County BA as he begins as a PBA regional legislative officer. Wirsing previously served two years as vice president for his local and chaired the homeshow committee. He has also served in an advisory
Serving: Lackawanna HBA, Carbon County BA, BIA of Northeastern PA, Endless Mountains BA, Pocono BA, Pike County BA, Wayne County BA RVP: Joe Peterson, president of Hanover Homes North in Wilkes-Barre, will serve as 2006 regional vice president. His local association experience includes serving two years each as president, vice president, secretary and treasurer with the BIA of Northeastern PA. He is also a member of Lackawanna HBA, Wayne County BA, Pike County BA, Pocono BA, Central Susquehanna BA and Lehigh Valley BA. He has served eight years on the PBA board of directors. Contact him at (610) 433-7124. RLO: John J. Holahan, president of Liberty Homes Custom Builders, is a member of the BIA of Northeastern PA and served as president of the Pocono Builders Association for two years. Holahan also serves on the board of directors for the BIA of Northeastern PA and is a Hammers and Gavels award winner. On the state level, he served on the PBA government affairs and public relations/public affairs committees. His PBA experience includes service as
I Keystone Builder • January/February 2006
Continued on page 26
Y OU
BUILD THE HOUSE .
P ROPANE
PRETTY MUCH DOES EVERYTHING ELSE .
Whatever you build, wherever you build it, you really should take a look at propane. It fuels the whole house cleanly and efficiently, from the furnace and cook top to the water heater. It’s now faster and easier to put in. And with thousands of propane companies nationwide, there’s always a ready supply whenever you’re ready to build. To learn more about this exceptional energy, just give us a call.
PENNSYLVANIA PROPANE FOUNDATION
717-441-6040
January/February 2006 • Keystone Builder
I 19
To request a FREE Demo CD e-mail: democd@icynene.com or contact your local Icynene Licensed Dealer
STATE COLLEGE, PA Rehm Insulation 814-237-4529 www.foammen.com
Sweet Dreams Thanks to Icynene® Imagine being in control of client satisfaction, quality construction, and profits all the time. It all begins with a dual-performing insulation that helps you take control of air leakage and deliver
unparalleled results. Icynene® spray foam insulation and air barrier system provides builders with an airtight
ALLENTOWN, PA Acoustical Spray Insulators Inc. 610-797-9272 www.asispray.com CANTON, PA Air Tight Insulators 570-673-6101 PITTSBURGH - ERIE, PA InsulRight 800-895-8784 www.insulright.com
solution
to superior building envelope performance while keeping projects on track and on budget. Your homes will be the talk of the town. Icynene® helps homeowners take control too… They can control the quality of the air they breathe.
DUNCANSVILLE, PA Insulserve, LLC 866-467-8579 www.insulserve.com
They can also control their spending by saving up to 50% in energy costs every month. Drive your business to
healthier profits by giving homeowners what they want.
Want proof? For the 2nd year in a row, Icynene® is the insulation of choice for the 3 major demonstration homes at the 2006 Builders’ Show: THE NEW AMERICAN HOME®, NEXTGEN’s “Safe & Sound” Demonstration Home and “Behind the Walls” at Reed’s Show Village. Visit us at the 2006 International Builders’ Show to find out how you can drive
healthier profits. Booth number W6371 Icynene® – We'll change the way you think about insulation.
20
I Keystone Builder •January/February 2006
Call NOW to learn about our 31-Day Payback Builder Advantage Program
by Nikki Brand
During Period of Low Inflation, Rising Housing Costs Frustrate Builders any Americans are happy that the rate of inflation on everyday products is low, but workers in the building industry aren’t smiling at the rising cost of doing their jobs. The cost of housing is outpacing the cost of inflation, and the cost of building materials is becoming a frustrating problem. In a September 2005 press release, National Association of Home Builders Chief Economist David Seiders reported that a strong demand for housing and constraints on its supply propelled single-family house prices in the second quarter of 2005 to an annual rate of appreciation of 12.8 percent, according to the House Price Index released Sept. 1 by the Office of Federal Housing Enterprise Oversight. House prices were up by 13.4 percent on a year-over-year basis, the largest four-quarter increase in more than 25 years. A high demand from foreign countries for metal products and other building supplies has caused a rise in prices for new homes over the past year. Natural disasters have also caused short supplies and a rise in prices since late summer. “Building supplies aren’t as plentiful, because they are going to relief efforts,” said Phil Friday, a spokesperson for the Pennsylvania
M
Housing Finance Agency. “A finite amount of supplies raises the price of supplies. There is also a huge demand for products of all types in other countries, such as India and China.” It appears that due to the disruption of natural gas markets, caused by hurricanes Katrina and Rita, the producers of PVC pipe responded with quick price increases. The Engineering News Record reported that PVC sewer pipe prices increased 3.4 percent in November, following a 12.4 percent increase in October. Cement increased by 0.5 percent from October to November and is 5.4 percent more expensive than in fall 2004. Steel increased 3.7 percent between October and November and has increased in price a whopping 9.3 percent since fall of 2004. These rising costs are forcing builders to decide whether to place some of the financial burden on their clients, but their clients may have a difficult time understanding why they need to pay more to have their home built when they are paying less for other goods.
Consumer Price Index Versus Producer Price Index According to the Consumer Price Index, the cost of the average everyday goods is not increasing at the rate that housing costs are.
The cost of products like food and clothing is also not increasing as much as the Producer Price Index indicates that building materials are increasing. The Consumer Price Index measures changes in the retail prices of a constant market basket of goods and services that are purchased for consumption by urban households. The index also includes user fees, such as water and sewer service, and sales and excise taxes paid by the consumer. Income taxes and investment items, such as stocks and bonds, are not included. Prices for the goods and services used to calculate the Consumer Price Index are collected in 87 urban areas throughout the country and from about 23,000 retail and service establishments. Data on rents are collected from about 50,000 landlords or tenants. These prices are collected throughout each month and compared to previous months or intervals in time. An example of the slow inflation of a category of goods compared to the high inflation of the housing industry is that, according to the Consumer Price Index, there was only a 0.3 percent increase in the cost of food and beverages between September and October, and actually a decrease of 0.4 percent in apparel for those two months, but the cost of Continued on page 22
January/February 2006 • Keystone Builder
I 21
PRESSURE HEADACHES Continued from page 21
housing rose 0.9 percent between the same two months. Some of the items on the Consumer Price Index that are subgroups of housing are shelter, fuels and utilities, and household furnishings and operations — all of which contribute to acceleration. Shelter costs, which declined 0.1 percent in September, rose 0.5 percent in October. The indexes for rent and owners’ equivalent rent increased 0.4 and 0.1 percent, respectively. The index for fuels and utilities registered its second consecutive large increase — up 4.4 percent in October after increasing 4.2 percent in September. The index for natural gas increased sharply for the fourth consecutive month —up 14.0 percent in October. During the last 12 months, charges for natural gas have risen 45.3 percent. The index for electricity rose 0.7 percent in October. The Producer Price Index is a different index than the Consumer Price Index. It measures the price that manufacturers charge for their goods, unlike the Consumer Price Index that measures what the consumer pays to buy the goods. It is helpful to the building industry, because it measures changes in prices of building materials. Producer price indexes measure the average change in prices received by domestic producers of commodities in all stages of processing. A Producer Price Index is an output price index, that is, it measures price changes received by manufacturers of a product. It is neither a buyer’s index nor an input price index — it does not measure the cost of producing that item. Producer Price Index data are based on selling prices reported by establishments of all sizes selected by probability sampling, with the probability of selection proportionate to size. Individual items and transaction terms from these firms are also chosen by probability proportionate to size. Producer price indexes are based on a monthly sample of about 75,000 quotations, resulting in publication of over 10,000 different indexes each month. According to the Producer Price Index, the cost of some building materials has increased by double-digit percentages since last year. For instance, the cost of oriented strand board has increased by 50 percent between Oct. 2004 and Oct. 2005 — in fact, just between September and October 2005, the price of oriented strand board increased by 23 percent.
Why Has Housing and Building Costs Increased? Some idea of why the cost of housing has risen is that the cost of utilities has increased 22
because of a shortage of fuel after the hurricanes, and low mortgage rates played a part in inflating the cost of property. Three theories on why the cost of building has increased is that there has been a high worldwide demand of supplies from countries like China, the hurricanes have made building supplies in short supply, and suppliers are charging more for deliveries because of the high cost of fuel after the hurricanes. In a report by National Association of Home Builders regarding building materials after hurricane Katrina, economist Michael Carliner states that the markets for different products deal with shortages in different ways. He used the example that the prices of commodity wood products, unbranded steel products and other similar products rise to whatever levels are needed to force supply and demand to be equal. Products like concrete, windows, insulation and gypsum wallboard are more likely to be subject to allocations and shortages, with price changes implemented over longer periods and announced in advance. Shortages, allocations, and delays may affect builders’ costs more than changes in prices. Carliner reported that the hurricanes shut down production facilities for some building products. Oil and gas operations that provide raw materials and energy for the production and distribution of building materials were also shut down. Water and land transportation, and the supply of electricity, was disrupted. Even if the damage to energy facilities proves to be minor, the temporary shutdowns mean that inventories will not provide an adequate cushion ahead of winter demand. This will affect not only the cost of energy, but also asphalt, PVC pipe, and other oil- and gas-based building products. Damage to water transportation is also a factor, although ports in and around New Orleans are becoming operational much faster than earlier estimates. In addition to hurricane damage, there is another wrinkle affecting water transportation in the upper Mississippi. As reported in Engineering News Record on Sept. 26, drought in the Midwest has reduced water levels and limited capacities of bulk loads of cement, aggregates, asphalt, steel and other building materials. That is likely to add to problems of availability and put additional upward pressure on prices into 2006. Katrina blew down a huge number of trees. The U.S. Forest Service estimates the blowdown as 15 to 19 billion board feet of timber, and describes that as enough “to produce 800,000 single-family homes and 25 million tons of paper and paperboard.” Rita also struck heavily-forested areas and blew down additional timber. Unfortunately, it is unlikely that more than about 20 percent of the blown-down timber
I Keystone Builder • January/February 2006
How to Help Your Clients Deal with Rising Costs Give them a detailed report of everything you do, and every product, costs. If some materials are especially high, explain any factors that may have caused this — resources depleted by the hurricane, cost increases because of high demand, etc. Use an allowance system. If one of their allowances doesn’t cover the product they want, shop around for a better price or suggest a similar product that will be a good substitute. will be successfully salvaged during the six- to nine-month window before it becomes unusable because of insects and rot. The damaged forests are also vulnerable to fire. Ray Venema, owner of Susquehanna Builders in Montoursville, said that when hurricane Katrina hit, he bought enough oriented strand board to cover about three houses because he knew the price would go up, and he was right — it increased by double digits. “The suppliers add a surcharge to all deliveries because of the cost of fuel,” Venema added. “As far as supplies, there hasn’t been anything that hasn’t increased in price by at least 10 percent. The cost of anything that has a derivative of oil — particularly resin — has increased the cost of products that it is used in. The cost of vinyl siding has increased about 25 percent.” Brian Durbin, who owns Durbin Construction in Altoona with his brother Scott, said he has to pay his hourly employees more, and he pays more for the gas they use to drive their personal vehicles for work. Of course, an increase in the cost of oil and fuel has not only increased prices for builders, but has also made the cost of housing rise because it costs more to heat homes. Low mortgage rates have given homeowners the ability to spend more on a home and caused an increase in the price builders pay for lots. The Office of Federal Housing Enterprise Oversight reported that between the first quarter of 2004 and the first quarter of 2005, the land appreciation rate in Philadelphia was 15.4 percent and in Lebanon was 13.1 percent. An increased worldwide demand for building supplies, and products like metal that make building supplies, has been a problem for builders that started even before the hurricanes. “Metal started to be a worldwide demand problem about a year ago,” Venema said. “I’ve
seen the price of electrical wiring almost double in price.� Carliner said that prices for metals tend to reflect global markets rather than just U.S. or North American supply and demand. He said steel product prices jumped, beginning in 2003, largely thanks to China, where about a third of the world’s steel is used and where there was a large increase in steelmaking capacity. As in the U.S., most new steel plants in China were designed to use recycled steel. Unlike the U.S., China doesn’t have a lot of old cars to provide scrap, so they’ve been buying steel scrap, as well as copper scrap and aluminum scrap, from around the world. Not only did that produce a large increase in scrap prices, but it also drove up shipping rates, because so many ships were carrying the scrap to China. The Construction Cost Index indicates that the cost of cement in November was up 5.4 percent per ton from last November. Carliner said that China uses more than a third of the world’s cement. Even though they continue to export to the U.S., the Chinese import from other countries that might otherwise supply more of our needs. Chinese demand for cement has had less impact on cement supply in the U.S. than their demand for shipping to move cement, steel and many other products.
Explaining Increasing Costs to Clients Building a house is usually the biggest expense people will have during their lifetimes. With the cost of their new home being so expensive already, clients may want a detailed explanation of why their building project is costing them more than they had originally planned. Durbin said he has had to increase the prices he charges clients for the light commercial and residential remodeling projects his company completes. One reason is he has to pay more for gas and more for labor. “We explain to clients that we have a higher cost of doing business,� he said. “Costs are going up everywhere for every business. I think people are aware of this and expect to pay more.� To save his clients from “sticker shock,� he is very detailed about the cost of every part of their project. “We also try to make them a part of the process,� Durbin said. “We have them there when the plumber is there, when the electrician is there — that way they can understand it better.� Venema said he has clients choose allowances for different projects in the home — everything from wells to windows. He said they use as many as 15 allowances.
“Many builders use a price escalation clause, but I try not to use that because once the client goes to the bank, that’s usually all of the money that they’re going to get,â€? he said. “Sometimes the money in the allowance doesn’t cover what they want, and sometimes they get a credit back. If I think the client is paying too much for something, I’ll try to find another supplier with a better price or suggest a product that may not be their first choice but is still a good product.â€? Although the cost of building products should decrease, and the rate of land appreciation is already starting to slow, 2006 may still be a year of high construction costs. Detailed reports of what each product that is used in a building or remodeling project costs, and an explanation of how the increase in the cost of fuel affects transportation and delivery costs, can help clients see the increases in each item. Explaining why products cost so much, such as a rise in demand worldwide or from natural disaster rebuilding, or from production facility damage or product damage due to the hurricanes, may help clients better understand why their bill is so high. Helping clients stay within their budgets may be harder than ever, but being honest and upfront with a customer will always keep them on your side. â–˛
TH !NNUAL
:(Âś5( 025( 7+$1 $ :$55$17< &203$1<
3!6% 4(% $!4%
! "
!PRIL n $/. 4 -)33
30%#)!, '5%34
!TLANTIC "UILDERS #ONVENTION
*OHN 3TOSSEL
s )NDUSTRY %DUCATION 0ROGRAM 4RACKS s "UILDERS :ONE $ANCE #LUB FEATURING h4HE .ERDSv n SPONSORED BY 7ELLS &ARGO (OME -ORTGAGE s !UCTION -ANIA s (ANDS /N $EMONSTRATION #LINICS TO DATE )NSTALLATION OF -ANUFACTURED 3TONE 3TUCCO 7INDOW &LASHING 7OOD 7INDOWS n SPONSORED BY 4HE 3TANDARD 'ROUP s 2ESERVE 9OUR "OOTH 3PACE .OW n $ON T MISS THE OPPORTUNITY TO SHOWCASE YOUR COMPANY PRODUCTS *OHN 3TOSSEL WILL SPEAK AT THE .*"! )NDUSTRY !WARDS ,UNCHEON ON 7EDNESDAY AT PM
&UTURE %XHIBITORS !TTENDEES
2EGISTER ./7 AT WWW ABCONVENTION COM OR CALL .*"! 0RIME LOCATIONS ARE MOVING FAST
! " # ! $ % !
Atlantic Builders Convention January/February 2006 â&#x20AC;˘ Keystone Builder
I 23
Builder Case Study
Remodelor can’t imagine being in business without help of builder associations. by Nikki Brand ob Siegfried understands the importance of great customer service, quality work and promoting a good reputation for his remodeling company. What he doesn’t understand is why anyone in the industry would hesitate to join his or her local builders association. Siegfried founded his company 13 years ago after years of experience in the building industry and has never stopped learning. Involvement in the Mercer County Builders Association, Pennsylvania Builders Association and National Association of Home Builders has provided him with the opportunity to take classes and acquire knowledge that helps him meet challenges head-on. “Through our involvement in the NAHB and the Remodeler Council, I have achieved my Certified Graduate Remodelor and Certified Aging in Place Specialist designations,” Siegfried said. “I don’t feel challenged any more or less than most small businesses, but I do think life is a bit easier because of my staff’s involvement in our local, state and national builders associations and the Remodelors Council. I
B
24
occasionally wake up as early as 4 a.m. and feel refreshed and ready to go. When I get to my office, I feel smug all day knowing that I am probably three to four hours ahead of my competition. I get the same feeling belonging to the PBA. The PBA keeps me on top of my game.” Becoming a builder may have been in Siegfried’s blood. His father was a union carpenter, and as a child, he helped him replace roofs and build porches and garages on the weekends. He took accounting classes in college, but he realized it wasn’t the field for him. After serving in the Marine Corps during the Vietnam War, he started slowly learning more about the industry by working at 84 Lumber. After selling lumber, he began selling manufactured homes on the wholesale and retail level and even owned a manufactured housing park. “I started selling lumber again but solely to builders, and I got interested in the industry and learned more about it,” Siegfried said. “I started working for builders and then, at age 46, started my own business. Some people thought I was crazy to start my own business at that age, but it was the best thing I’ve ever done. I wish I had done it earlier in life.”
I Keystone Builder •January/February 2006
Jack of All Trades Siegfried describes his full-service remodeling business as being market driven. Located in a rural area of eastern Mercer County, he said that he has to be flexible on projects to have a steady work flow. “The projects we do are whatever our customers want,” he said. “We do everything from repair storm doors to $297,000 remodeling projects. We’ll even clean gutters, but this helps us form a relationship with people, and they think of us first when they need a remodeling project done.” Siegfried says he enjoys the challenges of remodeling. He believes it is more difficult than building a new home because workers have to match up different materials, deal with the original builder’s mistakes and work while the family is still living on the premises. Siegfried said he’s not sure if he does anything special to set his business apart from the rest, but respecting his clients is one of the ways he keeps his business going. “We return phone calls and keep appointments,” Siegfried said. “Is this unusual or inno-
vative? Absolutely not, but it is very effective. As a child, my mother taught me to say ‘please’ and ‘thank you’ and to not be rude. Arriving late — or not at all — for an appointment and failing to return calls is rude. This industry is still in its infancy and not all businesses are run at a professional level. Remember to say ‘please’ and ‘thank you’ and walk on the sidewalk, not on the grass (even if you must take an extra 20 steps) when going to an appointment, and above all, say ‘I respect your home’ by wearing booties over your shoes when you step inside your customer’s home.” Siegfried’s treatment of his clients and the good work his diverse crew does was honored by his local association when they received the Builder of the Year award in 1999. He said there are many aspects of his job that he enjoys, but seeing the results of his hard work is one of his favorites. “The town we live in, and do a lot of work in, is small, and there is hardly a street where we haven’t done work,” he said. “Everyday when I drive through town, I can see the results of our labor. I think it’s the instant gratification of feeling proud of what you’ve built that I enjoy the most. The reason my business is successful is because of the usual things — great employees, dedication, hard work, good subcontractors and so on. But I think the real key to success is to work like you don’t need the money. By that I mean never put money in front of quality. I find that somehow, if I do the absolute best job I can, the money always seems to find me.”
Benefits of Joining Builders Association Are Priceless Siegfried can’t imagine operating his business without the help of the builders associations with which he is involved. He wants all builders to understand how much these organizations have to offer that can help all businesses prosper. “I wish everyone would belong to a builders association,” Siegfried said. “It would upgrade
their business. The networking opportunities are probably one of the most important benefits of belonging. Getting to know your fellow builders, exchanging ideas, finding out who are good subcontractors and developing friendships with suppliers, bankers and Realtors are all invaluable benefits.” Siegfried is involved in the PBA’s regional meetings and supports events to raise funds for the PBA’s Political Action Committee on Affordable Housing. He was president of the Mercer County Builders Association for the past two years and has served on the board of directors for several years. He said learning about such subjects as new codes is one benefit of being a part of the association. “The exposure you get from being involved in the association is great, but that is secondary to what you can learn,” he explained. “Keeping current with the codes through the PBA’s help is so important in today’s changing atmosphere. There is so much happening at our local meetings — from guest speakers to business-related seminars — that you learn something every time that you show up. There are hundreds of people who are excellent craftsmen, but they don’t know how to run a business. People need to understand their costs to stay in business, and they can learn from being involved in the associations and taking classes. I tell people that I am a businessman who happens to be in the business of remodeling. There is education available to you that you just can’t get if you aren’t involved in the association.” Siegfried’s daughter April Kisamore is the office manager for his company. He believes that they may be the only active father-daughter team in the nation who have their CGR designations. Information from the CAPS program Siegfried completed should be useful for him in
the future, as Pennsylvania has one of the highest populations of senior citizens in the country. He does a lot of work for people older than 60 and said he would like to see the CAPS program develop more. Siegfried feels there are a variety of opportunities for people in the building industry to continuously expand their knowledge and skills. “I learn something new every day,” he said. “Every year I go to the remodeling show, and I find it an excellent place to learn. Their choices and sheer number of seminars and classes offer everything from soup to nuts. Just when I think I can’t learn anything more from the classes, I do. I have taken my office manager and lead carpenters to the show and been able to find appropriate classes for all of them.”
So Much to Do, So Little Time For Siegfried, giving back to the community is as important as giving back to the building industry. One task that he places great importance on is serving on the board of directors for his local housing trust fund, a group that searches out and helps fund projects that provide housing for people who can’t afford it. Siegfried Construction has sent speakers to local Rotary Club meetings and supports local fire departments, a little league baseball team and the American Heart Association HeartWalk. The company also sponsors a classroom to buy books for the children, and Siegfried said his daughter, April, and wife, Donna, volunteer to read books to the children. Siegfried said, “My wife, Donna, is supportive of my busy schedule, but I hope to slow down in the next 10 years and let April and my son, Aaron, take over more responsibility. However, I have to admit that I could never completely leave this business, because I love it so much.” ▲
The exposure you get from being involved in the association is great, but that is second to what you can learn. Keeping current with the codes through the PBA’s help is so important in today’s changing atmosphere. There is so much happening at our local meetings — from guest speakers to business-related seminars — that you learn something every time you show up. — Bob Siegfried, Siegfried Construction January/February 2006 • Keystone Builder
I 25
ASSOCIATION NEWS
Northwest
Continued from page 18
Serving: BA of Northwestern PA, Lawrence County BA, Mercer County BA, Tri County BA RVP: James E. Grieshober, owner of J.E. Greishober Plumbing and Hydronics in Erie, serves as regional vice president. Grieshober is a PBA life director, former regional legislative officer and PaCAH trustee. He served his local as associate vice president and at-large member of the executive committee for the BA of Northwestern PA. At the local association, he has been active with the remodelors council, membership and golf committees. Contact him at (814) 864-9883 or jeplumb@surferie.net. RLO: Paul Bell, owner of Paul C. Bell Builder in Cooperstown, will serve as 2006 regional legislative officer. Bell is a member of the Tri County BA, where he served as vice president. He served as a PBA board member and was nominated to the PBA government affairs committee as member at large. In 2003, PBA named Paul C. Bell Builder its Small Contractor of the Year. Bell served 16 years in the military and is a veteran of the Persian Gulf War. He was a carpentry instructor at Triangle Tech in DuBois for six years. Contact him at (814) 374-4398.
regional legislative officer, board member and membership chairman. Contact him at (570) 646-4600 or jholahan@ptd.net.
Northcentral Serving: BA of Central PA, Central Susquehanna BA, West Branch Susquehanna BA, Northern Tier BA, Clinton County BA RVP: Ray Venema, president of Susquehanna Builders in Montoursville will serve his first year as regional legislative officer in 2006. He served as second vice president, first vice president, membership coordinator and special events coordinator for the West Branch Susquehanna BA. Venema has been active in his local’s strategic planning efforts. He was named Builder of the Year by his local in 2004. Contact him at (570) 433-3556 or susqbldr@aol.com. RLO: Chris Schoonmaker of S & A Homes in State College serves as regional vice president for this part of the state. He is a member of the BA of Central PA. Contact him at (814) 231-8560 or cschoonmaker@sandahomes.com.
Defining the Future of Modular Construction
PBA’s Louis Biacchi Honored for his Work Promoting Affordable Housing The Housing Alliance of Pennsylvania recently honored Louis Biacchi, PBA director of government affairs, for his work promoting affordable housing in the commonwealth. Biacchi worked with the Housing Alliance in support of important vacant and blighted property legislation, the realty transfer tax, local housing trust funds and addressing community opposition to affordable housing development. Well-respected and admired, Lou is known as a straight-shooter, “we can disagree without being disagreeable.” He has been an invaluable resource to the affordable housing community.
More than 35 years of modular construction experience Recognized as a technical innovator in modular structure manufacturing Has produced more than 12,000 custom designed homes and commercial structures including: • single-family homes • offices • condominiums • motels • education centers • medical clinics • convenience stores • dormitories
Quality will always be key at Haven Homes. S E RV I C E A R EA S : VT, NH, NY, MA, RI, CT, NJ, PA, OH, DE, MD, VA, WV, NC, SC, GA, FL
Haven Homes Inc. 570 962 2111 • fax 570 962 3181 www.havenhomes.com • email: info@havenhomes.com 554 Eagle Valley Road • Route 150 • P.O. Box 178 Beech Creek, PA 16822
26
I Keystone Builder •January/February 2006
Entries Sought for 10,000 Friends of Pennsylvania 2006 Commonwealth Design Awards Builders with Pennsylvania projects featuring outstanding and responsible design are invited to participate in the 2006 Commonwealth Design Awards, a prestigious juried competition presented by 10,000 Friends of Pennsylvania. The Commonwealth Design Awards, to be presented in Harrisburg in June 2006, will recognize projects that successfully demonstrate sound land use principles throughout the State of Pennsylvania — development and redevelopment projects from urban to suburban to rural. In addition to meeting 10,000 Friends’ objectives, submissions must be located in the Commonwealth of Pennsylvania and must have been built or under construction since Jan. 1, 2004. In addition, Silver Awards and Commendations may be granted to projects under construction or proposed since Jan. 1, 2004. Multi-phase projects may be evaluated and awarded based upon achievements during a specific phase. Deadline for submission is Feb. 10, 2006. Please visit the 10,000 Friends web site, www.10000friends.org, to print the official entry form and to review more detailed information on eligible submissions and project types. If you have difficulty downloading the forms, please call 10,000 Friends at (215) 985-3201.▲
Contact Jeff Pinwar at (800) 935-1592 ext. 118 or jpinwar@printcomm.com
January/February 2006 â&#x20AC;˘ Keystone Builder
I 27
Not just another pretty face.
It’s amazing the way a Woodgrain Door transforms a home and reflects your character. But they aren’t just beautiful – they’re beautifully built, providing years of strength and durability. Woodgrain doors are available in a variety of species, styles, sizes and panel combinations, allowing you to express your own unique style. Visit our website at www.woodgrain.com
Distributed by Bridgewater Wholesalers, Inc. “Four locations to serve your millwork needs”: 210 Industrial Parkway Branchburg, NJ 08876 1.800.242.7207 3000 Transport Street Richmond, VA 23234 1.866.294.7979
299 Mulberry Drive Mechanicsburg, PA 17050 1.866.717.7660 28 Track Drive Binghamton, NY 13904 1.800.942.6149
visit us at www.bwimillwork.com