Keystone Builder - July/August 2006

July/August 2006

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Keystone

Official publication of the Pennsylvania Builders Association®

17

b u i l d e r 23

Contents Volume 3 • Issue 4 July/August 2006

15 Supporting the industry’s future Catch up with the times 17 19 Scrutinize now or pay later: 21 Interview tactics 23 Builder Case Study

21

Educational endowments, opportunities leave a legacy for the residential housing industry.

Builders find an increasing need to adapt to a multi-cultural work force.

®

President Bradford H. Elliott HBA of Bucks/Montgomery Counties Vice President Stephen D. Black, BIA of Lancaster County PBA Associate Vice President Rob Jones, Central Susquehanna HBA Secretary Ray Fertig, York County BA

Develop a system to verify applicants’ backgrounds for more effective management of your human resources.

Mistakes in the interview process lead to mistakes in hiring choices.

Cisney & O’Donnell’s two families have combined individual experience and talent to spawn more than 37 years of business success.

Treasurer Kenneth L. Medina, Lebanon County BA Immediate Past President James L. Conner Lawrence County BA Keystone BUILDER is published six times per year by the Pennsylvania Builders Association, Editorial Offices, 600 N. 12th St., Lemoyne, PA 17043.

POSTMASTER: Send address changes to Pennsylvania Builders Association, 600 N. 12th St., Lemoyne, PA 17043.

SUBSCRIPTIONS: Subscriptions available through membership to the Pennsylvania Builders Association.

Departments Builder News Briefs ..............................................6 President’s Column.................................................8 On the Hill.............................................................11

Members-Only Section Ultimate Code Concerns: A Q&A addressing members’ top concerns on code issues........................................................A Exploring Energy Series: Energy-efficient windows can save money...........................................................................B In My View: Rep. Lynn Herman discusses impact fees........... D July/August 2006 • Keystone Builder

I

Builders

News Briefs

Association membership swells thanks to membership drive

T

heir leaders challenged, and the members of 12 local builders associations delivered with 806 new members during the May Madness Membership Drive. While having a good time and building teamwork within their ranks, members of 12 builders associations pitched in to make the two-day drive a resounding success, with an overall membership gain of 20 percent among the participating local associations.

The drive’s results showed how members’ dedication and enthusiasm fuels a continued interest in homebuilders associations. PBA supported the local associations that sponsored and organized the drive, conducted using the proven methods of the Oliver Group. PBA thanks the hundreds of volunteers from participating local builders associations who worked to make the drive a success. PBA worked with the locals, raising more than $2,500 in incentives for new members.

Local builders associations added impressive numbers of new members, including 19 for Mifflin-Juniata (63 percent gain), 150 for Lancaster (26 percent), 66 for Lawrence County (58 percent), 27 for Lebanon County (8 percent), 128 for Metro Pittsburgh (19 percent), 139 for Bucks and Montgomery Counties (25 percent), 41 for Central (13 percent), 42 for Central Susquehanna (32 percent), 52 for Washington County (23 percent), 88 for Wayne County (57 percent), 53 for York County (7 percent) and eight for Clinton County (31 percent).

state has taken a firm stand prohibiting government from overextending its eminent domain powers,” PBA President Brad Elliott said. Both House Bill 2054 and Senate Bill 881 protect property rights of homeowners from the threat of eminent domain and enhance compensation available to those whose homes are taken.

HB 2054, whose prime sponsor was Rep. Glen Grell, R-Cumberland, gives property owners long-term rights to reacquire land taken through eminent domain if the land is not improved within 10 years.

SB 881, whose prime sponsor was Sen. Jeffrey Piccola, R-Dauphin, limits local governments from taking private property for commercial uses unless the property in question meets criteria that legally define what is a blighted area.

Three Rivers Builders Show exhibit space is running out! Reserve your space now!

Opportunities are available for businesses wanting exhibition space during the Three Rivers Builders Show to be held Thursday, Sept. 28, and Friday, Sept. 29, at the David L. Lawrence Convention Center in Pittsburgh. Exhibit space is $12.50 per sq. ft. and is available on a firstcome, first-served basis. To reserve a booth, please contact Dave Heiges at (800) 368-5242, ext. 8342, or via e-mail at dheiges@nahb.com.

Information is available at www.3riversbuildersshow.com. Builders Services Inc., the service arm of PBA, is teaming with the Builders Association of Metropolitan Pittsburgh and NAHB to produce the show.

Practical educational seminars and a packed exhibit floor are planned.

Pennsylvania writer publishes guide to construction code words and phrases Carlisle writer Ronald L. Kepner recently released the “Word and Phrase Index,” a 140-page reference book to help construction professionals use the International Residential Code and the International Energy Conservation Code. Kepner said he developed the index following his own struggles to quickly find topics within the code books.

The index includes references to the 2006 and 2003 editions of the code.

Order a copy of the Word and Phrase Index by contacting Kepner at (717) 258-5321 or by e-mail at ronkepner@aol.com.

PBA, local associations plan second membership drive for October Washington County Builders Association members rallied around the theme “Driven to be great” for the two-day membership drive in May. Membership grew 23 percent for the Washington local, as members mustered 52 new members to swell their ranks.

Seated (L to R): Monica Hamlin (Washington Federal), Suzanne McAnallen (Donley Brick), Bob Harris (Harris Elec. Contracting and WCBA President), Standing (L to R): Diane Bell (Dollar Bank), Charlie Begley (Begley Homes and Membership Chairman)

Rendell signs eminent domain bills into law Property owners in Pennsylvania will be better protected against abusive eminent domain practices as Gov. Ed Rendell signed a pair of bills May 4 that limit government power to seize property. “As a long-time supporter of personal property rights, PBA is pleased the

I Keystone Builder • July/August 2006

Building on the success of the May Madness membership drive that welcomed more than 800 new members, PBA leaders will support local associations with a second membership drive, now slated for Oct. 23-25.

PBA has again arranged training for local leaders with the Oliver Group, the firm that worked with PBA and local associations to make the May Madness drive a resounding success. Association leaders scheduled the training for Sept. 20 at a location to be determined.

Local associations that participated or paid for training for the first statewide drive can attend this training session at no cost. Associations that did not participate in the first training session will pay half of the training cost, and PBA will cover the other half. Regardless of whether they participated in the May drive, associations must pay a consulting fee of $35 to the Oliver Group for each new member.

Please call PBA at (800) 692-7339 and ask to be connected to your field service director for more information. s

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July/August 2006 • Keystone Builder

I

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 N. 12th St., 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 N. 12th St. 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.

PBA members are welcome to submit article ideas for upcoming issues of Keystone Builder. Suggestions for articles showing industry trends, providing information that will help members operate their businesses and other topics relevant to the industry are welcome.

Lead time for articles is two months prior to the issue date. Contact editor Eric Wise at (800) 692-7339, ext. 3003, or by e-mail at ewise@pabuilders.org.

Publishing and advertising sales services provided by:

2929 Davison Rd. • Flint, MI 48506 Phone: 800-935-1592 Fax: 810-239-2231 Editor Eric C. Wise Assistant Editor/Publication Director Jennifer McDermitt Advertising Sales Jeff Pinwar Graphic Design Michele L. Peterson 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.

I Keystone Builder • July/August 2006

President’s

Message

Work force housing: Pennsylvania’s workers deserve better opportunities to own homes

M

illions of Pennsylvania families show their faith in service providers every day as they leave their children at child-care centers. In Pennsylvania, plenty of families rely on their services, as the Census Bureau estimates about two-thirds of Pennsylvania’s 1.4 million children under age 10 come from working families.

Why are we willing to trust child-care professionals with our children during critical stages of their development but not willing to have these people as our neighbors? When communities set zoning requirements and other regulations that increase housing costs, this is one group of people likely to be forced out of homeownership.

In many parts of the commonwealth — especially counties surrounding Philadelphia and Pittsburgh — we are facing a crisis from a lack of affordable housing for the work force.

Our communities are not providing places for workers at varied income levels to live — certainly not in proximity to their jobs.

In the child-care example, pre-school teachers’ salaries start at $13,000, with an average salary of about $19,000. Child-care workers who are not teachers earn an average of just $16,000.

Without a spouse earning several times more than them, these workers would be hard pressed to afford a new home in Adams County, where the average new home cost $227,430 in February.

As builders, we have an opportunity to stand up for our clients and to educate our leaders about the work force housing crisis.

Despite many common misunderstandings about work force housing, we have the power to reach out to community and civic groups, the media and elected officials. Go to township meetings, speak at chamber of commerce events and spread the word about affordable housing to other local businessmen as you get the opportunity.

Work force housing is not about building low-income housing “projects.” The work

Brad Elliott

PBA President

We believe that as municipalities manage their local land-use, they should establish comprehensive development plans that provide housing choices and allow workers at various incomes to afford to live in their communities. force housing crisis will not be solved through government-funded development, nor are we suggesting it should be.

Instead, we support workers obtaining a better quality of life through home ownership.

We believe that as municipalities manage their local land-use, they should establish comprehensive development plans that provide housing choices and allow workers at various incomes to afford to live in their communities.

For us, as builders, work force housing is primarily an issue of development density.

Sometimes it’s been a challenge to get this message across, as some elected officials are unwilling to hear our definition of high-density workforce housing. When communities allow a developer to build a dozen townhouses on 10 acres, the community may end up with luxury townhomes, each with 2,800 square feet of interior space, cathedral ceilings and a $400,000 price tag. In the southeast, we’re often forced into building this type of home by the high costs from getting through the development approval process — and by zoning.

Hidden low-density zoning requirements block efforts to build higher-density areas and keep housing costs down. When builders try to develop areas zoned to accommodate higher densities, they find many local ordinances and state regulations that require minimum setbacks and actual land set-asides for environmentally sensitive areas. These requirements create de facto low-density zoning.

Unfortunately, builders experience more “downzoning” than municipalities planning for and allowing high-density areas. When local governments force us to build each house on an acre or more, new homes use much more land than when we develop more properties per acre. The population is spread out, pushing people farther from their jobs. Low-densities cost communities much more, as there are fewer taxpayers for each mile of road that requires plowing and maintenance. Spreading out houses this way also inflates the cost of providing sewerage. While detractors bemoan sprawl, they are slow to admit that building 80 houses on 100 acres is worse than building 200 houses on 80 acres with 20 left for open space. Allowing higher density areas for housing keeps homeownership costs down while slowing the pace of how much land is used for development. Finally, higher-density zoning also provides environmental benefits.

To correct the problem, we must move in the opposite direction. As a quick fix, municipalities could provide incentives to developers to encourage workforce housing; for instance Mount Joy Township in Lancaster County recently enacted a new zoning district that provides lot density bonuses in return for the builder providing a percentage of work force housing units. Ideally, a more comprehensive fix is needed. Municipalities should be required to meet a minimum average density, such as two units per acre. Thus, a township with 10,000 acres would need to have a comprehensive plan and zoning for at least 20,000 residential units.

Nothing would prevent the township from providing open space, but other land in the township would have to be zoned with sufficient density to make up the short fall from tracts that have zoning densities below the average. Under this concept, low-density zoned tracts could “sell” their extra density credits to high-density zoned tracts. This process would be fair to all land owners as well as provide townships with the tools needed to plan for growth areas and preserved open space and agricultural areas.

Finally, if municipalities choose not to accept their responsibility to provide the highdensity zoning needed for workforce housing, then Pennsylvania must pass legislation

similar to that used successfully in other states to encourage municipal governments to provide acceptable zoning densities and plan for high-growth areas. To accomplish this, a new law could make work force housing a criteria for receiving state grants, require a high-density mixed-use zoning district in each municipality, and require municipalities to meet work force housing quotas set by a state planning board based upon sound population and employment projections.

We would like to see changes that would provide automatic approval of work force housing overlay (in certain districts) for any subdivision that meets work force housing provisions, with 25 percent of the units designed to meet housing needs of families with incomes at 80 percent of the municipality’s median income. When approving commercial developments, townships could provide incentives to encourage them to provide for nearby work force housing. Finally, other tax incentives could support work force housing, including tax breaks for employers who offer employees down-payment assistance.

Please join us in bringing the commonwealth’s work force housing crisis to the attention of our leaders. Our customers and the citizens of Pennsylvania deserve it. s

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July/August 2006 • Keystone Builder

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On the

Hill

PBA works to clarify, improve existing legislation

by Jennifer McDermitt PBA Pushes for UCC “Fixes” to Ease Process

T

he Uniform Construction Code was adopted in 2004, and since that time, PBA and its members have identified several procedural problems. PBA aims to address these problems through its fix-it amendments in House Bill 881, proposed by Rep. Bob Allen, R-Schuylkill.

This bill would make the following procedural changes: • Improve the administration and enforcement of the code.

• Decrease the time of permit review if there is an architect’s seal of approval.

• Limit the delays on building plan approvals and inspections by creating a way to assign an alternate person to handle plan approval and inspection.

• Reduce the time for a municipal code appeals board to hear an appeal.

• Cap the charge for an appeal at $100.

• Define more clearly criteria for municipalities to exceed the code.

• Make needed technical amendments to the current law.

• Add an additional $2 fee that would create a special fund used for training contractors on the construction code.

Currently, the HB 881 is awaiting vote in the House Appropriations committee. As this issue goes to press, PBA is pushing for a House floor vote before the legislature adjourns for the summer.

secretary of the department, will consider the association’s practical, reasonable proposal.

PBA and various stakeholders are trying to persuade the department to change the

strategy’s requirement that new sewage treatment plants release no nitrates or phosphates into waterways. PBA and the Pennsylvania Continued on page C

A STABLEHOME in an UNCERTAIN WORLD.

Introducing the FrameWorks® Building Systems.

PBA submits Chesapeake Bay proposal; works to locate nutrient credits PBA continues to press the Department of Environmental Protection for changes to the Chesapeake Bay Tributary Strategy and suggest changes to the department’s strategy. First, the association and other interest groups proposed a new plan for sewage treatment plant upgrades.

The plan would address all plants within the watershed by 2015, admittedly behind the 2010 federal deadline. PBA hopes Kathleen McGinty,

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To find our other locations, visit us at www.strober.com July/August 2006 • Keystone Builder

I 11

03617-NAHB-3RiversAd+RegForm

5/30/06

2.18 pm

Page 1

REGISTER TODAY

THREE RIVERS BUILDERS SHOW SEPTEMBER 28-29, 2006 • PITTSBURGH, PA DAVID L. LAWRENCE CONVENTION CENTER

The 32nd annual Three Rivers Builders Show™, formerly known as the Building Industry Trade Show, is the single most important residential and light commercial building show in the region.

• Visit more than 250 booths showcasing the latest building products • Attend education sessions covering the latest best building practices • 4,000 building industry professionals are expected to attend, you don’t want to miss it!

www.3riversbuildersshow.com 12

I Keystone Builder • July/August 2006

Source Code

KB01

REGISTRATION INFORMATION First Name _______________________________________________ Last Name _______________________________________________________ Professional Designation ____________________________________ First or nickname to be printed on badge _______________________________ Company _________________________________________________________________________________________________________________ Address __________________________________________________________________________________________________________________ City ____________________________________________________ State ___________________________ Zip ____________________________ Telephone ____________________________ Fax _____________________________ E-mail ___________________________________________ Are you a member of a local home builders association? � Yes � No

If yes, enter local number ______________________________________

Spouse Registration: Please print your spouse’s name to register him/her. Spouse registration type will be equivalent to the primary registrant type.

The spouse badge will automatically include your company name on the badge.

Spouse’s Name: ____________________________________________________________________________________________________________

1. REGISTRATION OPTIONS

By 9/22/06

After 9/22/06

� Full Conference: Includes admittance to the educational seminars and exhibits on Thursday, September 28 and Friday, September 29, 2006.

$95

$95

� Exhibits Only: Includes admittance to the exhibits on Thursday, September 28 and Friday, September 29, 2006.

FREE!

$35

$ _______

$ _______

Registration Type (Please check)

Subtotal

2. PAYMENT INFORMATION Total the fees from Section 1.

TOTAL $ ____________

Select your payment information: � Check enclosed (made payable to Three Rivers Builders Show in U.S. dollars and drawn on a U.S. bank) for the fee indicated above. � Visa

� Mastercard

� American Express

CC No. _____________________________ Exp. Date (mo/yr) ____________ _______________________________________________________________ Name as it appears on card (please print) _______________________________________________________________ Authorized Signature

THREE WAYS TO REGISTER 1. Online: 2. Fax: 3. Mail:

www.3RiversBuildersShow.com 301-694-5124 (credit card payments only) Three Rivers Builders Show PO Box 590 Frederick, MD 21705-0590

Registration Questions? Call ExpoExchange at 301-694-5243.

Cancellation/Substitution Policy: All cancellation/refund requests must be received in writing to ExpoExchange Three Rivers Builders Show, PO Box 590, Frederick, MD 21705-0590 no later than close of business Friday, September 22, 2006. An administrative fee of $25 will apply to each cancelled registration.

Refunds will be issued after the show. Substitutions will not be permitted at anytime.

3. DEMOGRAPHICS IMPORTANT: Form cannot be processed without the following information. Indicate your company’s type of business by selecting up to three categories, in order of importance and placing the corresponding letters in the appropriate boxes.

Builder Classification A Builder-Single Family Spec B Builder-Single Family Custom C1 Builder-Multifamily for Sale C2 Builder-Multifamily for Rent D Builder-Manufactured Homes E Builder-Non-residential F Remodeler G General Contractor H Land Developer Associate Classification I Architect J Land Planning/Engineering K Interior Design L Legal Services M Computer Products & Services O Home Technologies P1 Project/Construction Lending P2 Mortgage Lending P3 Financial Services Q Insurance/Title R Marketing/Advertising/PR S Product Manufacturing/Rep T Property Management U Real Estate Broker/Agent V Dealer/Distributor Subcontractor/Specialty Trade W Carpentry X Electrical Y Flooring Z Landscaping 1 Plumbing/Heating/AC 2 Roofing & Siding 3 All Other Trades 4 All Other Occupations

Primary Secondary Tertiary

1. Indicate Your Business Title: � President & CEO � Owner, Principal or Partner � VP/General Manager � Construction Superintendent � Sales & Mktg. Mgr./Director � Architect, Designer, Engineer � Financial Manager/Director � Other (please specify): _________________________ 2. Indicate the Annual Volume of Business For Your Company: � Under $500,000 � $500,000 to $1 Million � $1 Million to $5 Million � $5 Million to $10 Million � $10 Million and over � No Construction Activity

GENERAL SHOW INFORMATION For general show information, including special events and educational sessions, please visit www.3RiversBuildersShow.com or call the Builders Association of Metropolitan Pittsburgh at 412-434-5690.

July/August 2006 • Keystone Builder

I 13

May/June

2005

2005 May/June

2005 May/June

Builder Case Study ness and later attended Pennsyl University to vania State further his knowled After graduat ge in this field. ing with a civil engineering degree, he soon began to take over the busines for his father and was named s owner in 1979.

Lending a Helpi

Zimmer Gro ve Homes, In c.

Owners build the American Dream throug h business ventu res, community

by Nikki Brand

R

programs and

oger Zimmer association and Bill Grove Born to Build involvement do not merely build homes, . they build the Seven years American dream. After ago, Zimmer “One of the things decided that and Grove their clients have working all day to make sure their 90 years that sets us apart others is that the of combined rience would from each time and resource perfect house, they donate expebe a great service house ourselve one of us could build an entire s the industry, to clients and s,” one in the commun to programs that help everyso they formed all of the trades Zimmer said. “We’ve learned ity have a nice Zimmer Grove Homes, Inc. and know everythi enjoy contribu The compan ting to the construc home. They into y building focuses family homes, a home. We have ng that goes on singlefor people who tion of homes but tors and supplier great otherwise might mercial building they also construct comafford them in s and our experien subcontracnot be able to s and are expand the Habitat for understa ce helps us remodeling end nd what they ing the Humanity program and helping people need to do. of their busines always put the , s. client first, and Our goal is to with disabilities in need — such as people some of the ways we help them — is by making homes in Christm rehabilitate or repair their sure most for their as in dollar and teachingthey get the “One of the aspectsApril projects. such subjects them about both of us really as quality and about our jobs like energy is Zimmer and dream,” Grove building the American Grove have almostefficiency.” predisposition said. “I think a genetic it’s to take a piece of land and build amazing to try. Both come entering the building induslasts a lifetime from families a house that began gatherin .I of builders and g experience has when they love to see the joy a family at an move Zimmer said his father was early age.

The two owners into their new home.” started working a builder and of Zimmer Grove he Inc. in Harrisb with Homes, After being intrigue him when he was 15. urg also devote supporting the a child, he attended d about the industry as industry. They lot of time to a presidents of are both past the became knowle Elizabethtown College and of Metropolitan Home Builders Association dgeable about practices and quality busines Harrisburg, but the standards help the industry their quest to and procedures s operating a busines prosper and of stop there — grow From (L to it includes involve doesn’t business manage s by earning a degree in R), Brian A. Hudson Sr., Pennsylvania director/CEO ment. executive Builders Associa ment in the of the Pennsy “I really enjoy putting Finance Agency lvania Housin National Associa tion and together a project helps a family tion of Home Pennsylvania presents a VisitAbility g that and the commu Builders. in certificate of nity,” Zimmer Grove’s father Zimmer ands service to Roger said.

Bill Grove. started helping was a builder, too, and he his father when years old. He he quickly got “hooked was just 14 ” on the busi-

14

I Keystone Builder • July/August 2006

ng Hand Zimmer and Grove are pioneer VisitAblity in s in the Pennsylvania Initiative — new program a organized by the Pennsylvania Housing Finance Agency (PHFA) Pennsylvania Housing Researc and the (PHRC) to build h Center homes that are accessible people with mobility to “We were very limitations. excited The staff of to be a part this program Zimmer Grove of ,” Zimme Pennsylvania Homes, Inc. Lieutenant Govern r said. “The program, and was proud or are Jeff Daniels came to build a also receive to the to dedicate the home for the d assistance home. We learned ceremony Chris Daniels , RE/MAX agent; Bill VisitAbility dous amount Grove, co-own from RE/MAX agents in , RE/MAX a tremenagent; Joy from John and Jeanne . From (L to Daniels, RE/MA er of Zimmer Grove we had to expand this experience because Motto; Gwen Homes, Inc.; R) assistant and X agent; Armstrong, our knowledge Roger Zimme design a home Zimmer Grove owners of the VisitAb of how to r, co-owner that meets the le home, Homes ing as presiden of Zimmer son with mobilit needs of a pert in 2003, Zimmer Grove Homes , Inc. administrative y , Inc. 2005 Pennsyl was named ble’ way. When impairments in an ‘invisivania Builder director you walk into of the highest honor of the PBA, you would never the for a builder memberYear — the said their involve builders associa know this was home, ment in “It was a great in the PBA. with special tions a home helps honor homeow accomm allows them because the memners and bers voted for to share knowle Zimmer Grove odations.” me dge builders and Homes, Inc. shows their respectto receive this award; it learn from them. with other builders across was one of six the “We are interes tion of my knowle for me and their appreci program. Jeanne state to participate in the ted in helping adge of home homeowners, future issues,” said building and I believe chased the house and John Motto, who purZimmer, who them through we Zimmer Grove is currently the PBA regiona were ecstatic our association represent completed, l vice preside about their new ment,” Zimme involvent for the mid-eas region. “It is home. r a great reward t future homeo said. “The current and for my efforts.

Zimmer and wners are affecte ” Grove support regulation and d by overPBA projects numero cost us increases. and Owners Reco involved in in new program don’t hesitate to particip the associations Being gnized for ate s. stay up-to-d also helps us NAHB founded In the 1980s, when the Association ate on the Involvement hurt our busines issues that could help Builder program Certified Graduate or s.”

Although they , Zimmer was Zimmer and graduates and one of the first work, their efforts are humble about their hard also became protect homeo Grove work tirelessly to an instructor.

Grove, who years of contribu have not gone unnoticed. After wners and the serves on the getting involve ting to the PBA, industry by tors for the HBA board of direcd in influen including servcing govern ment official past president of Metro Harrisburg as the s about numero representative Grove us issues. and is a lifetime said he and Zimmer have relationships developed with several legislators who help suppor t the industr y.

“Many associa tion members in fighting the Realty Transfe got involved educated homeow r Tax. We also ners on how them,” Grove it would affect said. “Since many types of issues affect homeow of those our involvement ners, we believe offer our clients in the associations helps us the best. It makes ference when a big difgreater number s of builders homeowners and get involved in influencing islators about legproposed regulati ons.”

Whether it’s through their munity involve business, comment or associa tion, Grove and tion participaZimmer say they love what they do and look Bill Grove and in the industry forward to many more years Homes, Inc. Roger Zimmer happily . “Keeping up seven years combined on this changing industry their experie ago. is challenging, evernce to form and I see our but Roger Zimmer Grove jobs Grove said. “Neitheas exciting and rewarding,” r of us could being in any ever imagine other industry .”

Ultimate

Code Concerns

Are carbon monoxide detectors required under the International Residential Code?

N

o, carbon monoxide detectors are not required under the code, and PBA opposes attempts to require detectors outside the code.

The International Codes Council ruled against adding carbon monoxide detectors to the residential code for six years. As the technology currently exists, carbon monoxide detectors are far too likely to either sound an alarm when there is not danger or fail to detect a danger. As such, they provide a false sense of security. In addition, the devices malfunction often, use substantial amounts of battery power and are installed ineffectively in many cases.

To further prove the false sense of security, First Alert, which makes the Onelink brand detectors, recently recalled models after it was discovered they drain power from batteries too quickly, which could prevent a hazard if they are not replaced.

Residential building experts cannot agree on standard appropriate placement of carbon monoxide detectors within a home to provide the best protection. Requiring these devices without scientifically backed guidelines for placement — on ceilings or walls, and at what height on the walls — would provide haphazard protection.

In addition to problems with the devices themselves, there are other reasons carbon monoxide detectors are not included in the code.

Today’s homes are far less likely to present carbon monoxide dangers than homes built in past decades. New homes are well insulated, have efficient central heat, and are well ventilated. Required mechanical ventilation in new homes dramatically reduces the potential for carbon monoxide poisoning. Improved technology provides for furnaces and water heaters that are far safer than old, poorly maintained equipment. Fireplaces in new homes have an outside air supply. Energy and fire protection requirements in new homes minimize airflow from attached garages in houses.

There is currently a proposal in the Pennsylvania House of Representatives that would exceed the code and require carbon monoxide detectors in new homes. House Bill 1677, introduced by Rep. John Payne, R-Dauphin, would classify violations as

misdemeanor crimes. PBA believes the bill would be more successful in selling detectors than in providing protection for Pennsylvania residents, under the reasoning supplied by the International Codes Council.

What parts of the International Fire Code have been adopted

by Pennsylvania?

Currently Pennsylvania has only adopted the core of the 2003 International Fire Code — none of the appendixes have been adopted by the Department of Labor and Industry and will not be in the foreseeable future.

Can a township add a proposal to exceed the building code in an unrelated ordinance change request?

Municipalities may not make changes in the building code without following the process established in the act. Municipalities do have the option of changing codes not related to building — which can range from stormwater runoff management to sewerage system operations.

Are illegal ordinances a problem in specific regions of the state?

PBA, working in conjunction with the state’s Department of Labor and Industry, has been successful recently stopping municipalities from illegally exceeding the UCC. While no region in the state is more prone to code abuse than any other, PBA continually monitors municipalities’ attempts to overstep their legal boundaries.

While legislation relating to UCC changes has been stalled due to the recent primary elections, PBA has been on the winning side of several UCC challenges recently.

Several municipalities have attempted to exceed the code illegally by requiring sprinkler systems to be installed in singlefamily residential units used for rental purpose. The department responded to officials from Collingdale, Aston Township and Folcroft, all in Delaware County; and Sharon Hill, Jefferson County; with cease and desist notices. The department reminded these officials of the process required to exceed the code.

Exeter Township and Shillington Borough, both in Berks County; Washington Township, Northampton County; and Schuylkill Township, Schuylkill County; are all still awaiting final decisions regarding attempts to exceed UCC regulations. s

PBA welcomes your UCC questions for upcoming issues of Keystone Builder Please send to Eric Wise at ewise@pabuilders.org or Keystone Builder, 600 N. 12th St., Lemoyne, PA 17043.

Members Only • Keystone Builder

I

Exploring Energy

Series

Part five: Energy-efficient windows Choice of products for the most eye-catching part of the building envelope can save money, add to homeowner comfort.

by Nikki Brand

T

he saying “throwing money out the window” aptly describes people who make poor decisions when choosing windows for their homes. Paul M. Zeigler, an expert from the governor’s Green Government Council and state Department of Environmental Protection, said that heat gain and loss through windows accounts for as much as 2030 percent of the average home’s heating and cooling needs — depending on the amount of window space in the house. It is a myth that a home must have few windows to save energy; homes just need efficient windows.

Understanding the best window features Energy Star classifies Pennsylvania as being in the northern region of the U.S., which indicates a stronger need to heat the home efficiently than to cool it. A U-Factor listed on the window indicates how well the window insulates. The lower the U-Factor, the better the window performs. Typical UFactor values range from 0.25 to 1.25, and Energy Star requires a U-Factor of .35 or greater for windows and doors to be certified in northern regions.

“The material that a window frame is made of has a huge impact on how much heat travels through the frame, which effects overall window energy performance by 20-30 percent or more, depending on the size of the window,” Zeigler said.

Energy Star-certified windows use wood, wood composites, vinyl and Fiberglas for frames. Aluminum window frames are not recommended because the aluminum readily conducts heat, and when the weather is cold, frames can become cold enough to condense moisture or frost on the inside surfaces of the window frame.

Multiple panes, also called glazings, improve the energy efficiency of windows, but adding other advanced technologies is necessary to achieve the greatest efficiency. The Efficient Windows Collaborative, a nonprofit organization whose members manufacture and promote energy-efficient windows, can provide information to builders, or homeowners, to help them choose the best windows for their climate.

The organization says that the principal mechanism of heat transfer in multilayer glazing is thermal radiation from a warm pane of glass to a cooler pane.

“Double- or triple- pane windows, and suspended thin film type windows, increase

Guidelines for tax credits:

• Available for qualifying windows, skylights, storm windows, exterior doors and storm doors that are installed from 2006-2007.

• Windows and skylights, or exterior doors qualify for the credit if they meet Energy Star or International Energy Conservation Code standards.

• Storm windows qualify if they meet the International Energy Conservation Code, in combination with the exterior window over which they are installed, for the applicable climate zone. Pennsylvania is in the northern zone.

• For windows, skylights and storm windows, the credit is for 10 percent of the purchase price, no more than $200.

• Homeowners are advised to keep the manufacturer’s certification statement and purchase receipts as proof for the IRS, in the event they are audited.

I Keystone Builder • Members Only

the number of air spaces in the window thereby reducing direct-heat transfer,” Zeigler explained.

One window technology that helps Pennsylvanians is high-solar-gain, lowemittance coatings. Low-E coatings are microscopically thin, virtually invisible, metal or metallic oxide layers deposited on a window or skylight glazing surface primarily to reduce the U-Factor by suppressing radiative heat flow. High-solar-gain, Low-E coatings allow as much heat from the sun as possible to enter the house as clear glass.

High-solar-gain coatings offer the greatest energy savings in northern regions.

“Selective Low-E coatings reflect the sun’s heat in the summer and retain indoor heat in the winter but have the added benefit that they also maximize the amount of natural daylight that enters your home,” Zeigler said. “Tinted glass does not improve the energy performance of a window. Tinted glass reduces available daylight and increases glass surface temperature in the summer, which are both undesirable from an energy and comfort standpoint.”

Some energy-efficient windows have argon, krypton, or other gases between the panes.

These nontoxic gases provide better insulation and a lower U-Factor. Many windows qualify for Energy Star certification using only air.

Windows with spacings in between the panes of at least 1/2 inch for air or argon fill, and at least 3/4 inch for krypton, perform best.

A spacer keeps a window’s glazing layers the correct distance apart. Aluminum spacers used in the past have been replaced by warm edge spacers made of steel, foam, Fiberglas, or vinyl. Unlike aluminum, materials used today lower the U-Factor and prevent condensation.

Weatherstripping has also improved during the last 20 years. More durable, better performing plastic weatherstripping is used in most Energy Star qualified windows. Remodelers can help homeowners improve the efficiency of existing windows and doors by adding, or suggesting the client add, weatherstripping to their windows and doors. Caulking around the inside and outside of windows and doors can also prevent air exchange.

If Energy Star storm windows certified for the northern region are installed over Energy Star windows certified for the northern region, they qualify for a tax credit. Storm windows are not as beneficial when installed with energy efficient windows, such as doublepane insulated, as they are with older windows. Remodelers whose clients cannot afford new windows could suggest storm windows to conserve energy.

“Adding storm windows is not quite as good as upgrading to a double-pane insulated window but it is close — so the energy savings that will result is nothing to be ignored,” Zeigler said.

“One big factor is that storm windows, if installed properly, caulked and sealed around the edges (with the exception of two small weep holes at the bottom to let summer wind driven rain escape from the window sill) will significantly cut down on air leakage and infiltration through old leaky windows. As long as the storms are installed tight and are the right size, they stop the drafts and still create that desirable insulative dead air space between the main window and the storm.”

Zeigler said when owners of historic homes don’t have the money to buy custom-made windows that match the home’s original windows, adding storm windows over the old windows can increase energy efficiency while keeping the historic look.

Why buy energy-efficient windows?

“Energy-efficient windows offer homeowners improved thermal comfort, reduced condensation, reduced UV fading, and lower energy bills,” Fortney said. “These qualities can be used in marketing to gain a competitive edge over other builders. Sometimes builders use windows to showcase the quality in their product.”

Fortney said homebuyers often understand discussions about windows better than other parts of the building envelope, such as sealants they have never heard of before.

Builders may also have their client’s attention on this subject because windows are an expensive part of the building envelope, thus typically carefully chosen.

What peaks the interest of most homeowners is the money they will save on monthly utility bills. “A homeowner can save as much as $300-500 per year in heating and cooling costs by replacing old single-pane windows with energy-efficient Low-E double-pane or Low-E triple-pane windows,” Zeigler said.

To put the importance of keeping heat inside the house in the winter in perspective, the non-profit organization Alliance to

Save Energy estimates that in 2006, more than half of Pennsylvania residents’ energy bill will be dedicated to heating their homes. Comparing 2005 to 2006, the Alliance to Save Energy claims that the average energy bills for Pennsylvania homes heated with natural gas or heating oil will increase by about $275. Average energy bills for homes heated with propane will increase by approximately $200. When windows and doors are more efficient, the home can be adequately heated and cooled with smaller furnaces.

Energy savings and comfort go hand in hand.

It’s a lose-lose situation when an uncomfortable homeowner is either unhappy or spends more money to be happier. “With a Low-E coating on the window, sitting by the window can be more comfortable,” Fortney said. “Sitting by a 40 degree window can be cold. If you feel cold, you will turn the thermostat up.”

Help with selecting windows Windows that have the Energy Star and National Fenestration Rating Council certification labels are the most energy efficient. The National Fenestration Rating Council is a nonprofit organization that administers a uniform, independent rating and labeling system for the energy performance of windows, doors, skylights and attachment products. Labels include ratings in one or more categories that can help builders compare products. Builders should look for a low U-Factor, a low air-leakage number, and a high condensation-resistance number (which is measured between zero and 100). A Solar Heat Gain Coefficient number, a measurement of how well a product blocks heat caused by sunlight, will also be listed. Energy Star guidelines state that any Solar Heat Gain Coefficient number is acceptable for the northern region. s

On the Hill Continued from page 11

Municipal Authorities Association estimate plant upgrades will cost $850 million, far more than the department’s $380 million estimate. In addition, PBA members remain unconvinced that the nutrient credits trading program will cover needs for plant capacity and new treatment plants.

PBA is also actively locating nutrient credits for purchase by members if they need them to meet nutrient discharge limits. PBA will issue a fact sheet this summer to explain the trading program and how members will use it. The association will announce the publication of the fact sheet in TradeSecrets. It will be available for download on the association web site at www.pabuilders.org, or by mail. To request a copy, contact your field service director or call Keith Ashley at (800) 692-7339.

Bill introduced to clarify and update workers’ compensation law Rep. Mark Mustio, R-Allegheny, introduced a bill to update the state workers’ compensation law that would clarify rules for independent contractors. House Bill 1215 ensures that general contractors are not liable for uninsured subcontractors when those subcontractors are not covered by workers’ compensation insurance.

Builders currently face insurance cost increases if their workers’ compensation insurance carrier deems some of their subcontractors to be employees. Mustio’s bill clearly defines sole proprietors as independent contractors, reinforcing the existing act’s exemption for these oneperson companies.

Section 302 of the Workers’ Compensation Act holds general contractors liable for the workrelated injuries suffered by the employees of their subcontractors unless the subcontractor already carries workers’ compensation insurance.

Under HB 1215, independent contractors may register with the state Department of Labor and Industry to certify their status.

Pennsylvania law already allows certification for corporate officer and religion exemptions.

When an independent contractor certifies he or she is exempt from the act, the independent contractor will be barred from filing a claim against his or her general contractor.

To prevent misconduct, HB 1215 prohibits coercion and collusion in the filing of certification affidavits and provides strict penalties for violations.

HB 1215 sets strict penalties for anyone who falsifies documents or forces employees to falsify their status as independent contractors.

PBA has joined a coalition to support this bill. PBA members hope the House will vote on it prior to its summer recess. s

Members Only • Keystone Builder

I

In My

View

Quick fixes have huge ‘impact’ on communities

by Rep. Lynn Herman

L

ately in our state, the term “impact” has come to mean a purported negative effect that development has on communities. General perception has it that growth yields trouble; however, this is not the case across our commonwealth.

Currently, the Pennsylvania Municipalities Planning Code provides for planning and zoning by second- through eighth-class counties and all municipalities, except for cities of the first and second classes. The code also authorizes the adoption and amendment of comprehensive plans and zoning ordinances by counties and municipalities, the adoption and amendment of subdivision and land development ordinances by municipalities, joint municipal zoning and the imposition of transportation impact fees. A municipality may impose transportation impact fees on new development to generate funding for transportation capital improvements attributable to new development. Impact fees on new homes do not exist in state law, although the concept does have some support.

In this and previous legislative sessions, Pennsylvania lawmakers have introduced bills that propose development impact, or excise, fees as a means for local governments and schools to generate revenue to cover the costs of providing government services and school facilities and programs for new residents. This may not be a responsible approach to managing our communities.

It is easy to place blame on the new guy in town. However, nailing down solutions that do not lock the door to homebuilding and homeownership is what we ought to be doing. Because when you bury the rhetoric and look at statistics about homebuilding in Pennsylvania, you will see many direct and indirect positive impacts that result from building and buying homes.

Homebuilding contributes significantly to local, regional, state and national economies.

Statistics from the Pennsylvania Department of Labor and Industry reveal that the construction of 1,000 single-family homes generates

I Keystone Builder • Members Only

2,448 jobs in construction-related industries, approximately $79.4 million in wages and more than $42.5 million in federal, state and local tax revenues and fees.

Home buying produces another set of significant economic development data. For example, statistics from the department show that in the first year of home ownership, families spend an average of $8,905 to decorate and improve their homes. This is money is being invested in local economies.

Why, in a state where there are fewer growth areas than there are places in need of jobs, should we consider enacting barriers that potential investors and citizens will see as unnecessary hurdles? Based on relocation research information, in some areas of the nation, potential homebuyers are told to take into special consideration whether the community they want to build in has implemented “impact fees” on new lots. Truth in advertising is a good thing, of course; but such notice also begs a few questions: How many would pay thousands more to build a house in a community with impact fees? How many people can afford to do it?

All citizens should share in the costs for improvements in public education and public services. After all, in many communities, costs for administration, salary and benefits in our public schools and for repairing and upgrading infrastructure are not new issues of concern. They were relevant concerns before development was proposed. So, why “tax” the new guy on the block under the guise that his move to the community is creating a drain on services? Why surcharge senior citizens entering new retirement centers or building small retirement homes? Why surcharge young couples just starting out? Such an imposition could have folks deciding whether to remain in homes they can no longer navigate with ease, to stay in rental units or to relocate to another region or state that does not apply excise fees. The result would be stagnation for Pennsylvania’s boroughs, cities, towns and townships.

The answer to local government finance problems is not about penalizing homebuilders and homebuyers through a proposed quick fix that might look good on paper but is destined to create problems more severe than those we are trying to fix.

The answer to local government finance problems is not about penalizing homebuilders and homebuyers through a proposed quick fix that might look good on paper but is destined to create problems more severe than those we are trying to fix. Rather, it is about digging in to the multi-tiered and gritty issues involved in running communities and schools to nail down real solutions, fair solutions.

Fortunately, Pennsylvania has not been quick to act on imposing development impact fees. Legislators have continued to work on tough related issues, such as school funding, land use planning, municipal infrastructure and tax reform that will permit school districts and local governments to continue providing necessary services without increasing pressure on local taxpayers and new residents. This, in my opinion, is the preferred method to responsible community building, and it is the approach I will continue to advocate. s Lynn Herman, R-Centre, is the chairman of the House Local Government Committee.

Supporting the future of homebuilding Educational endowments, opportunities leave a legacy for the residential housing industry

(L to R) J. Roger Glunt (Photo courtesy of Jamey Stillings Photograph Inc.), Robert Hankin and Bohumil Kasal, Ph.D.

by Jennifer McDermitt

Y

ears ago, most homebuilders learned their trade on the job, working for family businesses or small local companies. A lot has changed in the last 30 years, however, and today, most homebuilders learn the trade through a mix of education and hands-on training. Although today’s homebuilders are eager for educational opportunities, many feel that the educational community has been surprisingly slow to recognize this trend.

“It is shocking to me how few schools have homebuilding programs” said Bruce Silver, president of the National Housing Endowment, the philanthropic arm of the National Association of Home Builders. “We’ve decided to make it our goal over the next 10 years to encourage two- and four-year schools to create residential construction programs.”

Not everyone has been slow to recognize the need for education in this industry. In the late 1970s, the late Bernard (Bernie) Hankin, a homebuilder in Pennsylvania, recognized the need for education in the homebuilding industry and decided to do something about it.

According to his son, Richard Hankin, Bernie saw what he termed a lot of “amateurs” in the field. He felt that although many schools offered an engineering division, none of the area educational institutions recognized homebuilding as an important component — and possible direction — for the students’ education.

“My father loved what he did, and he wanted homebuilding to be elevated to a topic of education,” Richard said. Bernie donated money to Penn State University, which started initially as two homebuilding courses and today is a complete residential housing program at the university with several courses, as well as a certification program.

Richard said, “It’s so great to see what has evolved from my father’s dream.” Richard says the Hankin family continues to be involved at Penn State today and offers scholarships to deserving undergraduate students in the program.

The Bernard Hankin Professorship in Residential Building Construction was established at Penn State in 1979 and was funded by a $1 million endowment by Bernie Hankin. In 1988, this position became the Bernard and Henrietta Hankin Chair in Residential Building Construction. The goal of the Residential Building Construction Program is to prepare young engineers for a career in the residential construction industry.

The residential building construction program entails undergraduate and graduate courses and a research program in the area of residential building construction. The courses can lead to the housing certificate that represents a formal recognition of the student’s qualifications. This certification program is designed to better prepare students for a career in the housing industry. The program consists of courses that already exist, but the objective is to ensure that a minimum program of related courses is completed.

Students may enter the certificate program during their fifth semester of school. The housing certificate provides an added credential showing specialized knowledge.

Another PBA member, J. Roger Glunt, has been instrumental to the development of educational opportunities for residential construction students. At the conclusion of his term as NAHB president in 1993, PBA

established an endowment in Glunt’s name at Penn State through the National Housing Endowment to thank him for his representation of the state at the national level.

The J. Roger Glunt Graduate Fellowship provides graduate students an opportunity for research in residential construction while providing money to cover travel, research and educational expenses. Glunt fellows generally have a bachelor’s degree in architectural or civil and environmental engineering or related disciplines. Some areas of research for fellowship recipients have included the following: • In-site evaluation of existing buildings • Light-frame residential structures under wind and earthquake loads • Building envelope performance • Laminated wood frames under dynamic loads • Shear-wall performance Glunt says that the initial endowment sparked a lifelong commitment to philanthropy and the support of education. “The industry is so good to us, and I realized that I could change people’s lives by giving back,” said Glunt.

“That gave me a rush and made me want to do more.” Glunt continues to raise money for the Glunt Fellowship, and when his sister, a former nurse, passed away a few years ago from cancer, he donated money in her honor to the University of Pittsburgh’s School of Nursing, his family’s alma mater.

According to Mark Fortney, director of the Pennsylvania Housing Research Center at Penn State, it’s because of people like Hankin and Glunt that Penn State has been able offer such a wide variety of courses. Penn State is also the only school of engineering in the state to offer a NAHB student chapter at the university.

The NAHB Student Chapter at Penn State collects and distributes funds for scholarships and for travel to the annual NAHB convention each year. To date, some 67 scholarships and 55 travel grants have been awarded. These funds have been Continued on page 18

An investment at the educational level is an investment in the future of our industry. What started with a couple courses has turned into an entire program, and although the housing certificate is our latest offering, we hope to continue to offer more educational opportunities as long as we have the strong support of the industry.

— Mark Fortney, director of the Pennsylvania Housing Research Center

July/August 2006 • Keystone Builder

I 15

Catch up with the times Builders find an increasing need to adapt to a multi-cultural work force

by Nikki Brand

T

he National Association of Home Builders reported in May that 32 percent of construction laborers are foreign-born. Of the Mexicans who have arrived in this country since 2000, 15 percent work in construction. The steady increase of Mexican and other Hispanic individuals entering the U.S. could be good for the building industry, as shortages in laborers have been reported. The U.S. Census Bureau and Builders Economic Council surveys found that in 2005, more than 50 percent of all builders consistently report either severe or some shortage of carpenters, and more than 40 percent are concerned about the availability of roofers.

Spanish classes for builders Stephen Black, owner of Stephen D. Black Builders in Lititz and vice president of PBA, has been in business for 28 years and has seen the number of Spanish-speaking workers in the industry increase. He works with subcontractors who employ Spanish-speaking workers, such as masons.

“About six months ago, we found someone to teach our employees basic Spanish in construction. It was a customer that we’re building a house for who spoke Spanish,” he said.

Black believes good communication is essential on the jobsite and wanted more people to know Spanish than one person. Safety is an issue when few people on a jobsite know how to communicate with a worker who speaks another language, or whose English skills are limited. In a 2005 study of Occupational Safety and Health Administration reports in New York, 2,547 construction site inspections indicated that almost half (48 percent) of workplace accidents involved a worker who spoke a foreign language on the job.

Black said his employees are interested in learning Spanish, and there have been no problems working with Spanish-speaking laborers. Builders may find that their employees feel more comfortable when they are able to effectively communicate with all co-workers. With more than 1 million Hispanics entering the U.S. every year, an opportunity to learn Spanish can appeal to workers who can also use the language skills off the job.

“As long as we get the work done with good workmanship, working with Spanish-speaking workers isn’t a problem at all. We have found the people we’ve worked with to be very good workers,” Black said. Retention is always priority for builders, and being able to work well with Spanish-speaking employees, and making these employees feel comfortable on the job, is another bonus of having all employees learn at least the basics of Spanish.

Black checks with his subcontractors to make sure that their employees can legally work in the U.S. He has also worked with Russian and Portuguese people.

Serving the No. 1 minority in the U.S. Operating a successful business in the future may mean more contact with Spanish-speaking people, whether working alongside them or dealing with them as clients. U.S. Census Bureau statistics state that as of 2003, there were

39.9 million Hispanics living in the U.S., and that group is the largest minority group. With the changing demographics of the U.S., Black said he expects to build houses for more clients who speak Spanish. He encourages other builders to provide lessons in basic Spanish to their workers. The need for builders to use Spanish led the Harrisburg Area Community College to offer Workplace Spanish classes for commercial construction and home builders and contractors. Builders can check local community colleges or a list of adult community programs for courses on Spanish.

In December 2005, NAHB announced statistics for the percentage of workers in the building industry who are native born and how many are from other countries. In Pennsylvania, 95.25 percent of workers are native born, 1.93 percent are from the Americas, 1.51 percent are from Europe, 1.26 percent are from Asia and .05 percent were listed as “other.” The number of workers from the Americas is predicted to increase steadily.

Builders need to stay in compliance with the law “As you’ve seen in the media, there has been a heightened interest by the Department of Homeland Security to enforce laws relating to immigrants,” said David Crump Jr., director of legal research in the NAHB Construction and Liability Research department. “The restaurant industry has the largest number of immigrant workers, agriculture is second, and the construction industry has the third largest number.”

Every employer must complete an Employment Eligibility Verification Form I-9 at the time they hire a new employee, whether the employee is an American citizen or not. While this law has been in effect for two decades, the government has been concentrating on enforcing the law more than it did in the past.

Continued on page 18 July/August 2006 • Keystone Builder

I 17

Catch Up with the times Continued from page 17

“The builder isn’t responsible for completing or monitoring the I-9 forms of their subcontractors, but what general contractors should know is that they cannot knowingly use workers through their subcontractors who are illegal aliens,� Crump explained.

Four supervisors for Fischer Homes in Crestview Hills, Ky., were arrested May 9 for allegedly being aware that 76 of their laborers were undocumented workers. They were charged with harboring illegal aliens for commercial advantage or private financial gain, with a maximum possible punishment of 10 years in prison and a $250,000 fine. The 76 workers in question were also arrested. The U.S. Immigration and Customs Enforcement released statements to the media that the arrests were not a random illegal alien roundup, but that the company had been under a criminal investigation for more than one year. A spokesman for the enforcement agency said the agency will no longer tolerate corporate supervisors who harbor illegal aliens, no matter how small the company.

Completing the I-9 form allows employers to verify the identity and work authorization of all persons who are hired. Employers are required to keep a completed Form I-9 on file for each of their current employees who were hired after Nov. 7, 1986.

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Crump said that Section 1 of Form I-9 (information supplied by the employee) must be completed and signed by the employee at the time of being hired. Section 2 of Form I-9 (the employer’s review and document verification) must be completed and signed by the employer (or an authorized representative) within three business days of the hiring. Employers are required to retain each Form I-9 for one year after the employee is terminated, or for at least three years from the date of the hire, whichever is later.

Crump said the NAHB encourages employers to periodically review their paperwork. They should make sure they have all of the correct paperwork and that the work authorization hasn’t expired for any of their employees. If they find incomplete paperwork, they can complete it at that time. Corrections to Section 1 (employee information) should be made by the employee, or made in the employee’s presence, and then initialed and dated by the employee.

Corrections to Section 2 (employer review and document verification) should be made by the employer or an authorized representative. “Do not backdate your paperwork,� Crump advised. He said after builders initial changes and put a date on the form, they can put a note that they had inadvertently not completed the paperwork originally.

The Immigration and Customs Enforcement Agency can perform audits of a company to inspect their paperwork. By law, the agency must give the employer a three-day notice of the audit. “Builders should know that they have the right to be represented by an attorney. It may be best for them to refer to an attorney if they have an audit,� Crump said.

If any deficiency or illegality is found, Immigration and Customs Enforcement Agency will issue a Notice of Intent to Fine to the employer.

Form I-9 paperwork violations are subject to fines of between $100 and $1,000 per infraction. More serious violations, such as hiring unauthorized aliens, are subject to steeper fines. Arrest and imprisonment are possible for those who are found to have engaged in a regular pattern or practice of willful violations. An employer has 30 days to contest the Notice of Intent to Fine by requesting a hearing before an administrative law judge. For more information about completing I-9 forms, visit www.osha.gov/pls/ epub/wageindex.download?p_file=F6844/I9_Handbook.pdf. s

Education news Continued from page 15

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provided by the PBA, NAHB, the Builders Association of Central PA, the Glunt endowments at Penn State and the National Housing Endowment, the Hankin family and several Pennsylvania companies. The NAHB Student Chapter also participates in local Habitat for Humanity initiatives. On average, there are about 33 student members per year. “An investment at the educational level is an investment in the future of our industry,� said Fortney. “What started with a couple courses has turned into an entire program, and although the housing certificate is our latest offering, we hope to continue to offer more educational opportunities as long as we have the strong support of the industry.�

Supporting education in the homebuilding industry has never been easier, thanks, in part, to the NHE. Individuals interested in making contributions can do so directly to the NHE, saving themselves the time, trouble and paperwork of donating directly to an educational institution.

Donors can specify a college or university as a recipient or can make a general donation to the NHE, who will determine where the money is needed most and distribute it accordingly. To learn more about the NHE or to make a donation, visit www.nationalhousingendowment.com or contact the NHE at (800) 368-5242, ext. 8483. s

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I Keystone Builder • July/August 2006

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Scrutinize now or pay later: Develop a system to verify applicants’ backgrounds for more effective management of your human resources.

by Nikki Brand

A

person who uses drugs or has a criminal record often has no problem lying about the information he or she provides on a job application or during an interview. Along with a good face-to-face interview and solid references, builders can be more confident in their hiring choices by performing background checks and drug screenings.

The minimal amount of time and money spent to take these steps in the hiring process can save a company thousands of dollars in lost productivity, medical claims, theft – and sometimes, in hiring a replacement.

The cost of performing background checks has dropped dramatically due to an increase in the number of vendors who are staffed and equipped to do them efficiently. As costs go down, even small employers are able to afford them. Technology has made it easier for employers to acquire personal data.

✓

History can repeat itself A builder can hire a reputable company to perform criminal history, Social Security card, credit, education, and driving record checks.

Hiring professionals to perform the checks is helpful because these companies know all of the laws that must be followed during the checks and know the processes to perform the checks.

Builders can ask applicants to sign paperwork authorizing these checks when they complete their job applications. Each type of check must be outlined in the paperwork the applicant signs.

If an applicant refuses to consent to a reasonable request for information, employers may legally decide not to hire the worker on that basis. They can also let applicants know that a drug test will be required if they are offered a job. With this knowledge, some applicants may choose not to continue the application process, which will save the

employer the time and money of performing background checks.

“Background checks are important,” said Lou Csabay, president of the consulting division of The Sharrow Group in Yardley, Pa., a management and consulting search firm that works exclusively with the residential home building industry nationwide. “Workers can steal, commit crimes, assault people on the job and lie about their education.”

A request to perform a criminal history check is often done by employers. Because an arrest record is, by definition, not evidence of criminal guilt, it is recommended that such information not be used as definitive grounds for rejection. Social Security cards can be purchased for $100 on the street, so a builder should verify that the Social Security number the job candidate gives them is valid. This check provides an extensive address history, as well as the name or names that are associated with the use of the Social Security number, and will help the employer know where a criminal record check needs to be done.

Social Security number verification can be important in cross-checking information listed on a prospective employee’s application or resume. For example, if the applicant claims to have lived in Lancaster for the past six years, but the check only finds an address in New Castle for the person for the past four years, it would be a red flag.

Verifying the education a person claims to have can be part of a background check. Csabay said that it is important to also verify an applicant’s licenses. If it is a requirement by law that workers performing particular job tasks have certain licenses, verification is a must.

Chris Zampogna, general manager of Camp Hill-based JFC Staffing Associates, said he recommends collecting a driving record report if driving is part of the person’s job description.

He said that the Pennsylvania State Police or Driver and Vehicle Services at PennDOT can usually provide a report for $10-15 within 24 hours. Csabay added that an employer should always check the record of a person who will be driving a company vehicle.

An employer may consider information contained in the public record from a workers’ compensation appeal in making a job decision only if the applicant’s injury might interfere with his or her ability to perform required duties. Builders may want to save time by

outlining the responsibilities the applicant would be required to perform for the job, including the physical requirements, instead of spending the time to check workers’ compensation appeals. An example is including such words in the job description as “Employee must be able to lift 50 pounds.”

✓

Gauge responsibility with credit checks “A person’s credit record will sometimes show you how responsible and reliable they are,” Zampogna said. “If they have horrific credit and are behind on basic things, such as utilities, it can show a pattern of responsibility.” He said employers may want to reserve credit checks for job candidates with certain job responsibilities — if they will have access to cash, credit cards or personal financial and identification information.

Employers who perform credit checks must follow the Fair Credit Reporting Act. The Federal Trade Commission outlines the rules for requesting credit checks on its web site, www.ftc.gov. The employer must notify each applicant in writing that a credit report may be requested and must receive the applicant’s written consent, which can be part of the paperwork given to them with the job application. Before rejecting an applicant based on credit report information, the employer must make a pre-adverse action disclosure that includes a copy of the credit report and the summary of consumer rights from the Fair Credit Reporting Act. Once an employer rejects an applicant, they must provide an adverse action notice if credit report information affected their decision.

Federal law prohibits employers from discriminating against applicants because they have filed for bankruptcy.

A reputable credit reporting agency must be used for credit checks. The three major national credit bureaus are Trans Union, Experian and Equifax. If a company is used to perform all of the background checks, they can perform the credit check as well.

✓

Drug screening can save hundreds of dollars Statistics from the February 2006 issue of Contractor Magazine indicates that the 2005 National Survey of Drug Use and Health showed that 12.8 percent of construction laborers, 17.2 percent of construction supervisors and 17.3 percent of other construction workers currently use illicit drugs. The report revealed that 19.9 percent of construction Continued on page 20

July/August 2006 • Keystone Builder

I 19

Scrutinize now or pay later Continued from page 19

laborers, 12.7 percent of construction supervisors and 20.6 percent of other construction workers are heavy consumers of alcohol.

The American with Disabilities Act of 1990 does not prohibit drug testing. An employer can choose not to hire a person who has screened positive for drugs if the company has a written policy. The most common test used for drug screening is urinalysis. This test can detect several drugs, should be reviewed by a doctor if the sample tests positive for a drug, has a high level of accuracy, and typically provides results in 24 hours.

Rob Quigley, executive director and general council of Drug Free Pennsylvania, helps businesses develop and implement drug-free workplace programs. The organization currently has approximately 250 active members, including builders.

“People in the building industry are concerned about workplace safety, decreased productivity, workers’ compensation claims and medical costs,” Quigley said. “These are certainly valid concerns.”

He said problem drinkers are absent from work four to eight times more often than normal. Drug users are absent from work an

average of five days per month due to substance abuse. When they do show up, substance abusers are 33 percent less productive and cost their employers $7,000 annually.

Drug and alcohol abuse doesn’t mix with some of the dangerous job tasks associated with homebuilding. Quigley said drug-using employees are 4 percent more likely to be involved in workplace accidents and five times more likely to file a workers’ compensation claim. In fact, 38-50 percent of all workers’ compensation claims are related to substance abuse. Substance abusers also cost their employers more money in medical costs since they are three times more likely to use medical benefits than other employees.

Builders who hire drug users will need to set aside time in their busy schedule to “baby-sit” their employees, as Quigley explained that 80 percent of drug users steal from their workplaces to support their habits, and substance abuse is the third leading cause of workplace violence.

“One of the reasons builders tell me they don’t do drug screening is because of the cost,” Quigley said. “If you look at the grand scheme of things, you can’t afford not to test for drugs.

We are part of a consortium and can help builders get competitive pricing at labs. If they tell us a lab is charging them $60 for urinalysis, we might be able to get them a price of $37-40.”

“Some builders say their competitors don’t test for drugs, but testing should be a point of pride for a company,” Quigley said. “There is a tremendous amount of evidence that people who use and abuse drugs seek out employers who don’t do drug testing.” Abusers have set up web sites to share lists of employers that do not test.

Drug Free Pennsylvania can also help companies customize a written policy for their business, which legally must be in place before drug testing. “People find our assistance in writing a policy to be extremely helpful,” Quigley said. “It scares me that some people get a template policy and plug their business name into it, because that isn’t acceptable.”

Builders must adhere to laws concerning writing these policies. Lawyers can also help builders draft a policy, which can include a post-employment program. Policies must outline such details as what constitutes drug use and what actions will be taken if an employee is found to have used drugs. s

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I Keystone Builder • July/August 2006

For more information on how FHLBank can support you, call Bill Miller of our government affairs office at 1-800-288-3400.

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contractor on your hands. If he says ‘no,’ he will usually follow up with several reasons why.”

Roger Fiehn, president and chief executive officer of Roger Fiehn & Associates, in Houston recommends that when employers narrow down the job candidates they are interested in by applications and resumes, they have them take a personality test.

PBA offers online personality assessments through its web site. Employers provide a web link that sends the applicant to a site where he or she completes an online questionnaire, typically in 15 or 20 minutes. The system generates a 20page summary of the person’s style with guidelines for effectively managing him or hiring choices her. These assessments utilize the researchin es k ta is m to lead based DISC personality models. Visit the PBA web site, where you will find information about ood employees are essential to a DISC assessments from the “resources” menu on company’s success. Builders without the left side of the page. their own human resource managers Fiehn recommends the Orion test to his can use these guidelines to work toward clients, which has approximately 100 quesbecoming an interview guru. tions, can be completed by the applicant online Lou Csabay, president of the consulting and can be scored on the employer’s computer. division of The Sharrow Group in Yardley, “The computer testing assesses how well they works exclusively with homebuilders nationwill work with other people, identifies their wide. He said one mistake he sees employers work habits, timeliness, and views on safety make is failing to have job candidates complete and mind-altering substances,” he said. Test an application. A job application provides the results will outline suggestions for follow-up employer with basic details about the candidate questions to ask during the interview. and can also include a place for the candidate to sign their authorization for background checks.

Posing the right questions Contact information, including asking the When a review of applications yields several applicant for the best way to reach them, is good good candidates, the phone interview is one to have on hand. Applicants can be asked for way to narrow down who to interview in references and their contact information on the person. “I love phone interviews; they really form. Csabay said failing to ask for references is save time for everyone involved,” said Chris a mistake. While he prefers to contact references Zampogna, general manager of JFC Staffing the candidate has chosen, some builders prefer Associates. “It is a fantastic way to make sure to contact the candidate’s former employers. that there is mutual interest. Conduct the phone NAHB’s “Human Resources Management” interview just as if they were sitting in front of brochure, available on the biztools section of its you — ask the same types of questions and web site at www.nahb.org, outlines tips on you’d be surprised how much you can learn on interviewing job candidates. Dave Stormont, the phone without taking too much time.” president of Stormont & Co., in Kitty Hawk, Zampogna said his company will sometimes N.C., was interviewed for the brochure, and interview the applicant over the phone twice said he begins job interviews by discussing the before scheduling an in-person interview. names of local builders for which the applicant When it’s time for face-to-face interviews, has worked. “Chances are, I’ll know a couple Csabay said only one person at a time should of those builders,” Stormont said. “I’ll call interview the applicant. He said group them and check the guy out regarding quality, interviews are distracting and make applicants dependability, integrity, etc. I put a lot of nervous. “The interviews should be conducted weight on what my fellow builder has to say.” by the person who is supervising the job and their boss, such as the construction manager Tony Zimbelman, owner and general manager and the chief of operations,” he said. Csabay of Zimbelman Construction in Wichita, Kan., said having one or more peers do interviews is said he asks former employers if, given the also a good idea. Interviews should always be opportunity, whether they would hire the done in a place where there are no distractions. applicant again. “If the reference says, ‘yes,’ Continued on page 22 you might have a decent employee or trade

ctics a t w e i v r e t in Polish your Mistakes in the

ss

interview proce

by Nikki Brand

The questions that can be asked during an effective interview are endless. Open-ended questions are the best type to ask. Here is a sampling of questions to ask during interviews:

• What was the first/last job you worked on? What did you learn from that experience?

• Please describe the worst situation you ever had to fix on a jobsite. How did you rectify the situation?

• Tell me about some of your accomplishments at past jobs.

• Tell me about your average project.

How long would it take? Who did you report to?

• What motivates you to put forth your greatest effort?

• Ask about their suitability to work in the environment: Can you work outside? Can you work on weekends?

• What work pace do you like to work at?

• Are you good at multi-tasking?

• How good are you at follow-through and follow-up?

• What is your criticism tolerance?

• How assertive are you on the job?

• In what type of company do you flourish best?

• Under what type of boss do you like working?

• Why did you leave your last job (or why do you want to leave your current job)?

• What salary are you/were you earning?

Did you receive any bonuses?

G

July/August 2006 • Keystone Builder

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POLISH YOUR INTERVIEW TACTICS Continued from page 21

There are certain questions that are illegal to ask on a job application or during an interview.

These questions include inquiries about age, marital status, religion, national origin and veteran status. An employer cannot ask a person about disabilities but can ask the candidate if they can fulfill job requirements, such as lifting 50 pounds. For a complete list of questions that are illegal to ask, check national labor laws. All employees who will be performing interviews should know these laws.

Csabay said a common mistake interviewers make is they “talk to the resume,” as in, “So I see you worked for John Doe Builders.” He said interviewers should ask for the candidate to explain their accomplishments in “metrics,” such as the number of error-free deliveries they made at their last job, the number of teams they trained or how much money they helped the company save.

Zampogna said employers should explain the job requirements and the work environment thoroughly and ask the applicant how their experience relates to the job. He said they should always ask why the person is leaving their job or has left their job. He said often, employers don’t ask for an exact salary and bonus history, which is a mistake. Zampogna said employers should ask

the candidate for a copy of their last W-2 form to confirm their past wages.

Csabay said employers shouldn’t place much importance on a job candidate’s body language during an interview since an interview is in an artificial environment, and it can cause nervousness. However, Zampogna and Fiehn said they believe the candidate’s ability to make eye contact during the interview should be noted.

Questions should always be worded clearly and should be asked one at a time. Interviewers should avoid wording that might influence a particular answer. At the end of the interview, the candidate should be asked if they have any questions or would like to add any comments.

Interviewers should take notes during the interview, but not let it distract them from keeping the interview flowing. Adding more notes immediately after the candidate has left the interview is also a good idea. All people involved in interviewing candidates should thoroughly discuss their notes and thoughts together.

Building a star team How well a job candidate will work with other people, how their personality will mesh with the personalities of people already

employed with the company and their work ethic can be assessed with tests like the Orion test. The test can help employers who are seeking specific types of workers, such as an employer who wants to hire a person who can work well with little supervision if needed or a person who has the traits of an effective and organized leader. On the Orion test, the person is asked to rate what level they agree or disagree with the statements.

Such statements include: • New methods or ideas disrupt my work patterns and slow down the company.

• I am not a very courteous person, but I have my reasons.

• I am best described as a loner and a non-joiner.

• I push hard for success.

• I love the challenge of any game.

Having peers involved in the interview process also helps employers decide if the job candidate will be a good addition to the staff.

Builders should evaluate their interviewing process after each candidate is hired and make changes as necessary — there is always room for improvement. There are also consulting firms that are familiar with the building industry that can help with the interview process. s

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I Keystone Builder • July/August 2006

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Case Study

Cisney & O’Donnell Cisney & O’Donnell’s two families have combined individual experience and talent to spawn more than 37 years of business success.

by Jennifer McDermitt

A

nyone who’s ever owned and operated a family business will tell you it’s difficult. From power struggles to communication problems, family businesses are wrought with challenges. So it’s hard to imagine that a “multi-family� business could run so smoothly, as is the case with Cisney & O’Donnell. Take the everyday challenges of an ordinary family business and throw another family into the mix, and you’d assume that things could get ugly, but according to Denny Cisney, owner of Cisney & O’Donnell, the two-family dynamic that is his company is actually where the company draws its strength. “We always say that the Cisneys and O’Donnells brought all their different talents to the table when we started this company, and that is what has kept us strong over the years,� Cisney said. “We’ve always been able to sit down in a meeting, talk about the necessary business issues and leave the room without bringing the business home. It’s not always easy, but we do it, and that’s why we’ve been able to do what we do for so long.�

We’ve always been able to sit down in a meeting, talk about the necessary business issues and leave the room without bringing the business home. It’s not always easy, but we do it, and that’s why we’ve been able to do what we do for so long. — Denny Cisney, owner of Cisney & O’Donnell Cisney says the decision to leave his job was excruciatingly difficult, because of the risk associated with running your own business. “I don’t regret it, even though I would probably be retired by now,� jokes Cisney.

Continued on page 24

Tiptoeing into the industry The Cisneys and O’Donnells are not people who rush into anything, which is exactly how they approached the building industry. In the late 1960s, Cisney was working at a glass manufacturing plant in what he describes as a “really good job.� As a favor to his wife’s friend, Cisney got the friend’s husband a job at the same plant, and the four became fast friends. The friend’s husband had been remodeling for a few years, and as time went on, Cisney joined him while still maintaining their jobs at the factory. “The remodeling jobs funded the two families’ hobbies and vacations, and because we worked swing shifts back then, we could do quite a bit of work around our schedules,� said Cisney.

After a couple of years, however, the remodeling jobs became more steady, leading Cisney and O’Donnell to make the leap and start a full-time remodeling business: Cisney & O’Donnell Inc. located in Huntingdon.

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July/August 2006 • Keystone Builder

I 23

Cisney & O’Donnell Continued from page 23

Other family members soon joined the business — Frank O’Donnell in 1971 and Cisney’s brother Perry in 1972. Both became part-owners in the business.

Taking the steps toward succession Some of the faces at Cisney & O’Donnell may have changed since those early years, but the business still remains strongly rooted in the two families. Denny Cisney remains the owner and Frank O’Donnell remains on the board of directors. The original partner left the business, and Perry Cisney relocated to another part of the state a few years ago.

There are some new family faces at Cisney & O’Donnell as well.

Cisney’s two children, Denny Jr. and Melissa, have joined the business and are poised to take over the company with one other longtime employee, Toby Hood. Cisney says they are in the process of working toward a succession plan. “It’s difficult removing yourself from a business, but I have no doubts about the abilities of the next generation, and I look forward to relinquishing my responsibilities.”

In addition to the two families’ presence, Cisney says there are many other things about his business that haven’t changed in its 37 years.

Cisney says that they have always strived to accomplish two goals: a high level of customer service and the ability to forecast market trends and adapt the business based on those trends. “We always approach each project as if it were our own money and take precautions to make sure that we are getting the best value,” said Cisney.

Cisney & O’Donnell’s work hasn’t gone unnoticed. In 1995, they were voted into the Big 50 Hall of Fame for remodelers by Remodeling magazine. In addition, Qualified Remodeling magazine has named them

24

I Keystone Builder • July/August 2006

several times as one of the top 500 remodelers in the nation, and in 2002, Cisney & O’Donnell was voted one of the top 101 remodelers to work for by Professional Remodeling magazine.

Today, Cisney & O’Donnell does some custom building, approximately three to five homes a year, even though Cisney says his company avoided homebuilding for many years because of the level of difficulty associated with scattered-site building. After studying area retail trends and seeing a need, Cisney & O’Donnell opened a pool division 20 years ago, including a retail pool supply store. However, the company’s heart is still in remodeling, and they currently undertake about 75-150 remodeling jobs per year.

Not taking the industry too lightly Cisney may have a good sense of humor, but there are two things that he takes seriously: his association involvement and continuing educa-

tion. Cisney feels that being involved in a builder association is vital to the future of this industry.

“I strongly believe in a grassroots approach to decisions that affect our business and our livelihoods,” he said. “We are the ones doing this day in and day out, and we need to take the time to share our thoughts and experiences with the decision makers.” Cisney feels that one of the best ways to do this is through association membership.

Cisney & O’Donnell is a member of the Huntingdon County Builders Association, Centre County Builders Association and Blair County Builders Association. It is also through his association membership that he has pursued his continuing education. Cisney has taken the accreditation courses through NAHB to earn the Certified Graduate Remodeler designation. Cisney says he encourages his staff to participate in industry seminars and training courses. “With today’s technology changing at warp speed, you have to stay on top of it or be left in the dust,” he said.

In addition to association membership and continuing education, Cisney credits his business’ success on good customer service and community involvement. “We work hard to earn our customers’ respect,” he said. “We also believe in giving back to the community through programs such as Habitat for Humanity or the United Way, because people like doing business with companies who are involved in the community.”

Most importantly, Cisney says his family and coworkers are the real reasons behind the success of Cisney & O’Donnell. “No one can do this alone,” he said. “We are a close family and a close company, and it takes a lot of good people to sustain this kind of fortitude for all of these years. I’m very proud of that.” s

July/August 2006 • Keystone Builder

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I Keystone Builder • July/August 2006

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