J.H. Brubaker, Inc. Lezzer Lumber MRD Lumber Co. Strober-HaddonďŹ eld Group All Locations All Locations Both Locations Easton 800-723-5546 www.lezzerlumber.com 570-366-0578 610-252-6190 800-326-9562 Kohl Building Products Shelly’s Lumber The Lumber Yard All 8 Locations Moyer Lumber Building Supplies All Locations www.kohlbp.com Bethlehem All Locations www.thelumberyard.com 800-578-5645 610-868-2010 215-723-5108
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Volume 4 • Issue 2 • March/April 2007
PBA’s new secondary endorsement program aims to identify qualified workers.
4 President’s message
17 Caught in the web
It’s time to update the construction code.
Check out the PBA web site for convenient member resources.
6 Builder briefs Hidden taxes are no solution.
18 Energy Star
8 Bethlehem’s renaissance
Learn what qualifies a home to be Energy Star certified and how you can join with the program.
Eastern Pennsylvania’s Lehigh Valley ripens into one of the best markets for builders since 2000.
22 Homeowner ed
11 Bouncing back
Learn why providing clients with home warranties gives you an advantage.
Phoenixville, a town once on the decline, is blooming with redevelopment and a new vigor.
25 Member spotlight
11 Premier partners
Partnerships, in-house services create new opportunities for Donco Construction, a familyowned company.
Meet an elite group of businesses taking a leadership role in promoting the growth of the housing industry.
26 Member Rebate Program Find out how you can benefit from PBA’s Member Rebate Program.
Member Insider Member briefs . . . . . . . . . . . . . . . . . . . . . .A Legally speaking . . . . . . . . . . . . . . . . . . . . B On the hill. . . . . . . . . . . . . . . . . . . . . . . . . . . C Gaining an edge . . . . . . . . . . . . . . . . . . . . .D
Keystone Builder
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PBA invests in a qualified homebuilding work force
SECRETARY Gene Kreitzer, Lebanon County BA TREASURER Richard Clawson, Indiana-Armstrong BA IMMEDIATE PAST PRESIDENT Bradford H. Elliott HBA of Bucks and Montgomery Counties EXECUTIVE VICE PRESIDENT David Martin Editor Eric C. Wise Associate Editor Chris Anderson Assistant Editor/Publication Director Jennifer McDermitt Advertising Sales Jeff Pinwar Graphic Design Jason Gabel Address Correspondence To: Keystone Builder 600 North Twelfth Street, Suite 200 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.
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. Publishing and advertising sales services provided by:
2929 Davison Rd. • Flint, MI 48506 Phone: 800-935-1592 • Fax: 810-239-2231 An Exclusive Publication of the PBA Keystone Builder magazine is published six times a year by the Pennsylvania Builders Association®, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. With the exception of official association announcements, the statements of fact and opinion that are made herein are the responsibility of the authors alone and do not reflect an opinion or philosophy of the officers or the membership of the PBA. Materials may not be reproduced without written permission from the PBA headquarters. KEYSTONE BUILDER is published six times per year by the Pennsylvania Builders Association, Editorial Offices, 600 North Twelfth Street, Suite 200, Lemoyne, PA 17043. POSTMASTER: Send address changes to Pennsylvania Builders Association, 600 North Twelfth Street, Lemoyne, PA 17043. SUBSCRIPTIONS: Subscriptions available through membership to the Pennsylvania Builders Association.
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I Keystone Builder • March/April 2007
“H
idden” property taxes threaten to derail new homebuyers’ plans by cutting into their budgets. Legislators’ attempts to raise the realty transfer tax and impose hefty educational impact fees would impose de facto property taxes that would dash the hopes of many Pennsylvanians who dream of owning their own homes. While the goal of legislators is noble, their plan remains flawed. Paying for mass transit by boosting the realty transfer tax places bus and rail systems in peril of revenue shortfalls during slow housing markets. Plus, rural residents would subsidize transit systems that are concentrated in urban areas. That isn’t fair. In the case of educational impact fees, some officials see these taxes as a two-fold strategy, providing a way to arrest growth and offset property taxes. But educational impact fees are inherently unfair. Earlier generations did not pay for schools at settlement on their homes. Why is this acceptable today? The state is hungry for $1.7 billion to upgrade the state’s highway system and support mass transit. To maintain our highways and bridges, we should raise the gasoline tax or add a dedicated fee to vehicle registration earmarked for road improvements. If our leaders believe the state should support mass transit, then they should change our constitution to dedicate a portion of the gas tax for this purpose, too. At least the gas tax has a logical connection to transportation needs. In contrast, transit systems have no connection whatsoever with real estate transactions. Somewhere along the line, it seems we’ve forgotten that healthy communities with growing businesses and job opportunities also need a place for workers to live. We need to help our leaders understand the need for commercial and industrial growth — and affordable housing — in our communities. Support your local HBA and PBA’s efforts to expose this tax shifting plan that represents nothing more than a hidden property tax. Please contact your legislators and urge them to oppose bills allowing wider use of impact fees. The cause of affordable housing hangs in the balance. V
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The state is hungry for $1.7 billion to upgrade the state’s highway system and support mass transit. To maintain our highways and bridges, we should raise the gasoline tax or add a dedicated fee to vehicle registration earmarked for road improvements.
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PBA ASSOCIATE VICE PRESIDENT Rob Jones, Central Susquehanna HBA
President’s message
VICE PRESIDENT Ray Fertig, York County BA
By Stephen Black • PBA President
PRESIDENT Stephen D. Black, BIA of Lancaster County
Hidden taxes: Lawmakers renew the threat in 2007
Builder briefs New report about mold released The Pennsylvania Mold Task Force recently completed and released its report to the Pennsylvania General Assembly. The task force examined the issue of mold, its assessment, its remediation and its effects on human health in indoor environments. The objectives of the report were to improve the understanding of issues related to mold buildup in the indoor environment and to reduce the negative consequences associated with the performance of mold assessment and remediation by individuals and groups lacking the qualifications to perform quality work. The full report is available on the PBA web site at www.pabuilders.org, under the members section.
Carbon monoxide detectors remain hot topic in 2007 PBA and other industry representatives defeated an attempt during 2006 to require carbon monoxide in all new homes in Pennsylvania. Touted by Rep. John Payne, R-Dauphin, this bill would have exceeded the requirements of the International Residential Code. Building experts have reviewed carbon monoxide detectors each year for nearly a decade, rejecting them for inclusion in the building code because they are not accurate enough to provide suitable protection. Six other states — Illinois, New York, New Jersey, Minnesota, Massachusetts and Connecticut — have new carbon monoxide detector requirements in 2007. The National Safety Council has continued to push for laws in states that do not require carbon monoxide detectors.
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I Keystone Builder • March/April 2007
Installation for new PBA president set for March Mark your calendars for the 2007 Installation Banquet honoring Stephen Black and the PBA leadership team. The event will be held Friday, March 9 at the Hotel Hershey. Dinner will begin at 6 p.m. with reception and entertainment immediately following. Admission is $75 per person and the RSVP deadline is March 5. For more information, please contact Mary Ann Jackson at PBA, (800) 6927339, ext. 3019, or by e-mail at mjackson@pabuilders.org.
Court says any certified building code official may perform UCC building inspection The Commonwealth Court reversed a Fayette county court’s decision Dec. 6, ruling that North Union Township’s refusal to recognize building inspections by a state certified inspector other than the municipality’s contracted inspector did not follow the intent of the Pennsylvania Construction Code Act. The court ruled that although the act allows municipalities to hire certified construction code officials or third-party agencies for “administration and enforcement,” the act does not prohibit any state certified inspector from performing code inspections, which are separate and distinct from the administration and enforcement of the act and regulations. The court noted that accepting inspections from any certified construction code official in good standing benefits builders by ensuring the availability of qualified inspectors. PBA leaders expect an appeal of the Commonwealth Court ruling to the state Supreme Court. V
March/April 2007 • Keystone Builder
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by Cathrine Nederostek Pennsylvania Builders Association astern Pennsylvania’s Lehigh Valley ripened into one of the best markets for builders since 2000. While developers have plenty of interest throughout the region, Bethlehem is now getting its share of development. Infill development and a downtown renaissance transformed a city whose future was left uncertainly by the slow demise of Bethlehem Steel. When Bethlehem Steel closed its doors for good, buildings were made available in all areas of the town. Just recently, builders are revitalizing the city with new home developments and industrial businesses. Bethlehem Steel, once the secondlargest producer of steel in the United States and employer to 30,000 laborers, supplied shipyards and freight cars, and helped contribute to Allied efforts in the world wars. “The city was a steel town; it just attracted people,” says Chris Bennick who is head of Lehigh Valley Habitat for Humanity. Bethlehem Steel’s 2001 closing capped years of decline. Businesses began to close or move to other areas. Recently, however, builders began to see an opportunity to rebuild the town and accommodate residents and business’ needs. For starters, the Bethlehem area is an ideal location — Interstate 78 is close for commuters who are going to New York or New Jersey. The progression of Bethlehem has grown immensely from its industrial days to present. To begin with, Bethlehem is divided into two areas. Downtown Bethlehem has gone through most of the town’s revival. Builders were able to preserve the historical features of the town using high-end restaurants and shops. The other area, on the other side of the Lehigh River, is known as South Bethlehem. This area is where much of the steel plants were located. With the steel industry dying, many buildings were unoccupied and left prone to vandalism. Chuck Hamilton, executive officer for Lehigh Valley Builders Association, says, “This is truly a later version of the Pittsburgh waterfront and the years of unused steel production facilities lining the waterfront. Like Pittsburgh’s southside years ago, Bethlehem’s southside became a run-down, low-end housing
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Continued on page 10 March/April 2007 • Keystone Builder
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EAGLE, PA (610) 321-0970
EASTON, PA (610) 252-3142
To find our other locations, visit us at www.strober.com
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I Keystone Builder • March/April 2007
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MEMBERINSIDER March/April 2007
Member briefs
Are you protecting your workers’ privacy?
Some states now require that employers list no part of their employees’ Social Security numbers on pay stubs or direct deposit statements to protect employees from identity theft. While Pennsylvania has no law with this specification, some accounting experts recommend companies voluntarily remove full or partial Social Security numbers from payroll statements to protect workers’ privacy.
Associate members: Get involved in the Associates Council to get more from membership PBA encourages each local builders association to appoint a representative to the Associates Council, much as they now do for the government affairs committee. The Associates Council works to ensure the needs of associate members are being addressed; it also oversees the growth of PBA’s Premier Partners sponsorship program, which is raising nondues revenue to support association programs. The council meets on Saturday mornings during PBA board meeting weekends. Contact Scott Elliott at (800) 6927339, ext. 3010, or via e-mail at selliott@pabuilders.org to join the council and make a difference in your association.
State releases plan for funding land conservation projects The state Department of Conservation and Natural Resources released its plan for public investments in land preservation. The report, released in December, predicts that local and county governments will spend $300 million for land preservation during the next four years, in addition to $90 million in state-backed Growing Greener funding for open space preservation. The department will give priority to projects that preserve land near state parks and forests, tracts with threatened ecosystems and habitats, areas vital to water conservation
PBA submits comments about tributary strategy documents Members of PBA’s Chesapeake Bay Tributary Strategy task force provided comments on several documents regarding implementation of the strategy by the state Department of Environmental Protection. As state officials continue progress on the strategy, they will soon meet with federal regulators from the Environmental Protection Agency. For more information, please contact Keith Ashley at (800) 692-7339, ext. 3013, or by e-mail at kashley@pabuilder.org.
and future sites for public recreation. PBA has posted the report on its web site, www.pabuilders.org.
Join task force to guide the Commonwealth ‘Forward to Prosperity’ PBA’s forward to prosperity task force will reconvene in 2007 to continue work that started with the report by the same name issued in 2005. PBA needs members to guide this task force as it plans a study of whether housing “pays its way” by providing a net gain to communities through taxes and increased community equity. For more information, please contact Amy Parr at (800) 692-7339, ext. 3004, or via e-mail at aparr@pabuilders.org.
Volunteers needed to improve building code administration PBA invites members interested in improving the implementation of the Uniform Construction Code to join a task force continuing the association’s efforts. Gov. Rendell signed PBA’s UCC fix-it bill this year, but further improvements are needed. PBA leaders also are looking for a new chairman for this task force. For more information, please contact Amy Parr at (800) 692-7339, ext. 3004, or via e-mail at aparr@pabuilders.org.
Builders Benefits web site provides information you need Visit the new web site created by Builders Benefits Inc., the new health insurance program created for the members of the Pennsylvania Builders Association Benefits Trust. PBA’s board of directors has endorsed this innovative new program to provide competitive health insurance rates for its members. Members are encouraged to call the Builder Benefits hotline at (888) 221-2550 with questions.
Help incoming legislators learn about key housing issues PBA’s government affairs committee is looking for members willing to reach out and build relationships with new members of the General Assembly. If you know any of Pennsylvania’s new officials holding state office and are willing to reach out on behalf of the building industry, please contact Amy Parr at (800) 692-7339, ext. 3004, or via e-mail to aparr@pabuilders.org. V Member Insider • Keystone Builder
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Legally speaking
Understanding changes to Pennsylvania’s Mechanics’ Lien Law by Loudon L. Campbell 2. The new law allows sub-subcontractors to file mehe 1963 Mechanics Lien Law provided property ownchanics’ liens. Under the old law, only the first tier of ers with an unfair advantage in construction, repair subs (subs in direct privity with the general contractor) and improvement projects. Act 52 of 2006, which were permitted to file a mechanics’ lien. The new law took effect Jan. 1, amends the law and tipped the balance appears to allow certain “subcontractors” to file liens. In of power in favor of contractors and subcontractors. short, it permits any person who has first tier subconThe crucial changes are as follows: tractors to file a lien, effectively extending lien rights to 1. The new law renders advance lien waivers void exsecond tier subs. cept in certain instances. Under the 1963 law, owners 3. The new law extends the deadline to file a mechancould have a waiver of liens filed with the county proics’ lien claim. Under the old law, the period in which a thonotary in advance of the start of work for a construcmechanics’ lien must be filed is four months following tion or repair project. That waiver substantial completion of the work. was required only to be signed by The new law lengthens the filing the general contractor. The waivperiod to six months, giving contracThe new amendments to er, however, not only cut off the tors and subcontractors more time to the Pennsylvania Mechanics’ file a lien claim. general contractor’s right to file a Lien Law will present mechanics’ lien against the owner, 4. The new law makes it possible it also effectively cut off the right for subcontractors to file a mechanchallenges to owners and of the project subcontractors to do ics’ lien for work done on repair or contractors alike. It will so. The new law renders these adimprovement -projects. Under the take time for procedures vance lien waivers void except in old law, in order for a subcontractor certain circumstances. to file a mechanics’ lien for repair to be developed and The main exception to the new or improvement projects, they had implemented to effectively rule is for residential projects valto give the owner notice of their indeal with mechanics’ lien ued at less than $1 million. For tent to file the lien before the work lower valued projects, the old rule was completed. This rule effectiverights, so all parties should still applies. Accordingly, home ly prevented subcontractors from begin to think about revised filing a lien because, due to a perbuilders may not see the full beneconstruction fit of the new mechanics’ lien law. vasive lack of awareness of this reAnother exception exists with quirement, subcontractors waited draw procedures. respect to commercial construction until after the work was completed projects and large residential projto attempt to file the notice. The ects when the project is bonded by the general contractor new law eliminates the preliminary notice requireto meet the claims of its subs. Under that circumstance, ment, allowing subcontractors to file liens after the the lien rights of subs may still be waived in advance as work has been completed. under the 1963 law. Some of these new advantages to contractors and Additionally, both contractors and subs can effectively subcontractors are undermined, however, by provisions waive their lien rights at the point of payment, which is of the new law that favor construction lenders. For exsimilar to the existing practice of requiring subs to sign ample, under the old law, mechanics’ liens took priority a “release” of liens in exchange for payment. Such a lien over other liens. Under the new law, provided it has been waiver would still be valid to the extent that payment properly recorded, a lender’s purchase money mortgage has been received. Accordingly, payment draws might or statutory open-end mortgage will take priority over become much more complicated than in the past. Ownall subsequently filed mechanics’ liens. The new rules ers will want to ensure that the general contractor has don’t mean that mechanics’ liens are not effective, it just paid all subcontractors, and that all subcontractors have means that the lender gets paid first out of any proceeds delivered written waivers. While the details of this new of the property. administrative process have yet to be defined, it’s clear The new amendments to the Pennsylvania Mechanics’ that additional time and manpower will be necessary to Lien Law will present challenges to owners and contracverify receipt of all required payments and waivers. It tors alike. It will take time for procedures to be developed is possible that the payment process could eventually and implemented to effectively deal with mechanics’ lien evolve into a sit-down closing (similar to a real estate rights, so all parties should begin to think about revised purchase), in which the owner, general contractor and construction draw procedures. all subs meet to simultaneously exchange documents For more information, contact Loudon L. Campbell at and payments. (717) 237-6028. V
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I Keystone Builder • Member Insider
Gaining an edge
Use these six marketing strategies to stay afloat in uncertain times by Jim Groff, president, Baublitz Advertising ver the past several months, we have all heard reports that the building industry faces uncertainty during 2007. To be sure, there are also bright spots; for example, the long-term forecast calls for sales over the next decade to be even stronger than those over the previous 10 years. However, any serious player in the building industry can’t simply wait on the sidelines hoping for the next boom cycle. By embracing the six critical marketing strategies below, companies in our industry will have a platform for creating a program designed specifically to tackle the challenges of the current environment.
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1. Stake out your position In the near-term market, you need to maximize your potential with every prospect and retain every customer possible. That means you have to justify your existence — every single day. Start by making sure you — and everyone on your team — can answer these questions clearly and convincingly: % Where do you have an advantage over your competitors? % How can you credibly claim superiority or uniqueness? % Why should a customer choose you? As you hone your message, also seek to focus your market.
2. Market smarter with market intelligence It’s imperative to engage in some sort of formalized dialogue with your customers to determine what they care about most and how to convey your strengths to them. This is a step many companies neglect. An investment in market research often winds up making a marketing program more cost-effective, because it enables a company to focus dollars on messages and tactics that work best.
3. Revitalize your marketing plan During the planning process, reevaluate each and every tactic you want to include. Focus your efforts — and your budget — on those tactics that work. Be sure to create a formal marketing plan to guide your effort. Without it, you risk procrastination, “mission drift,” and a lack of cohesion.
4. Do more than sell The very best marketing plan will not replace new products or services as an engine of growth. New offerings and renewed service commitment can increase sales from existing customers. Remember also that by taking care of your current base, you’ll stymie the efforts of competitors who seek to lure your customers away.
5. Get serious about the web Consider this: 90 percent of those working in the construction and building materials industry call the web their preferred source of information. In our industry, the web is the great equalizer — the antidote to marketing for smaller companies that don’t have a big media budget but do have a strong brand, product or service. The web may be the most cost-effective, flexible medium available to you. Neglect it at your peril.
6. Leverage human capital During times of uncertainty, customers find comfort in personal relationships and face-to-face encounters. Allocate your time to solidify your existing customer base and forge new relationships. To maximize the value of this time, arm yourself with the right support for personal selling — professionally produced sales materials that reflect your key messages. Another key: ensure that your entire staff understands the role they play as brand ambassadors.
It’s only business … your business Every player along the supply chain should recognize that, throughout 2007, doing “business as usual” will lead to lower revenues. We urge every company in the construction and building materials industry to approach marketing with greater care, precision and forethought than ever before. Those who do may find themselves capturing additional market share that could pay huge dividends when the market rebounds later in 2007. Those who don’t? They’ll be playing catch-up — if they’re playing at all. Jim Groff is president of Baublitz Advertising, a marketing firm that has focused on the building and construction materials industry for the past 30 years. He can be reached at groffjc@baublitz.com. V
[NOTE: This article has been excerpted from a longer white paper, which includes greater detail and specific action strategies. To download a free copy, visit www.baublitz.com, and select the “Marketing Intelligence” link.]
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S & S Development Company is now finishing its French Creek Townhomes project. Thanks to infill development and brownfields reclamation, 150 homes overlook the creek whose banks were once dominated by the steel company.
Continued from page 13
hills overlooking French Creek and replacing the steel company’s decaying buildings. This project demonstrates the potential in redeveloping brownfields sites. New Phoenixville town houses proved so popular that eager homebuyers camped out in cold weather to be the first in line. A developer sold 70 homes in just one weekend, which drove the price up to $200,000 without a model home to show. A few months later, 24 condos sold out within minutes to people who camped out two nights. “Phoenixville is unique because of its revitalization,” Rob Powelson, president and government affairs director of the Chester County Chamber, said. “People from all over are greatly benefiting the area. The landscapes and historical features are still a major part of this town.” 16
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Under this approach, we’re using our resources more wisely to help communities like Phoenixville and improve the quality of life for our citizens. These investments will serve as the catalyst for future growth and revitalization projects, and will open the door to new opportunities.
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PHOENIXVILLE
Gov. Ed Rendell announced on Sept. 9, 2006, that Pennsylvania would invest $1 million in the ongoing revitalization of Phoenixville. “Under this approach, we’re using our resources more wisely to help communi-
ties like Phoenixville and improve the quality of life for our citizens,” Rendell said. “These investments will serve as the catalyst for future growth and revitalization projects, and will open the door to new opportunities.” Back in 2005, Rendell awarded $1 million to renovate three blocks of Bridge Street in Phoenixville with improvements including street lighting, brick pavers, trees, trash receptacles and benches. In 2006, Pennsylvania’s total investment exceeded $186.4 million since January 2003. Today, Phoenixville’s downtown is momentous. There are antique shops, florists, art dealers and other small businesses that create the downtown’s warmth. There are also fine restaurants and a restored Colonial Theatre. “Phoenixville is way ahead as opposed to years ago,” Powelson said. V
Clemleddy Construction builds its Edgemont home to the national Energy Star standards.
Energy Star homes attract buyers
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nergy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy that works to help homeowners save money and protect the environment through energy-efficient products and practices. Results are already adding up. Americans, with the help of Energy Star, saved enough energy in 2005 alone to avoid greenhouse gas emissions equivalent to those from 23 million cars — all while saving $12 billion on their utility bills.
What is an Energy Star qualified home? Homes that earn the Energy Star certificate must meet guidelines for energy efficiency set by the U.S. Environmental Protection Agency. Energy Star qualified homes are at least 15 percent more energy efficient than homes built to the 2004 International Residential Code. Through Energy Star, builders and other home industry professionals can differentiate themselves in the market. New homes that qualify as Energy Star provide greater comfort and durability for homebuyers. In addition, Energy Star qualified homes help protect the environment by reducing the greenhouse gas emissions associated with global warming. 18
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Energy Star qualified homes can include a variety of energy-efficient features, such as effective insulation, high-performance windows, tight construction and ducts, efficient heating and cooling equipment and Energy Star qualified lighting and appliances. Any home three stories or less can earn the Energy Star label if it has been verified to meet EPA’s guidelines for energy efficiency. This includes site-constructed homes, attached or detached homes, single or low-rise multifamily residential buildings, manufactured homes, systems-built (e.g., SIP or modular) and log homes, existing homes or retrofitted homes. Here is a list of features typically found in an Energy Star home: % Effective insulation — Properly installed, climate-appropriate insulation in floors, walls, and attics ensures even temperatures throughout the house, less energy consumption and increased comfort. % High-performance windows — Energy-efficient windows employ advanced technologies, such as protective coatings and improved frame assemblies, to help keep heat in during winter and out during summer. These windows also block damaging ultraviolet sunlight that can discolor carpets and furnishings.
% Tight construction and ducts — Sealing holes and cracks in the home’s “envelope” and in duct systems helps reduce drafts, moisture, dust, pollen and noise. A tightly sealed home improves comfort and indoor air quality while reducing utility bills. % Efficient heating and cooling equipment — In addition to using less energy to operate, energy-efficient heating and cooling systems can be quieter, reduce indoor humidity and improve the overall comfort of the home. Typically, energy-efficient equipment is also more durable and requires less maintenance than standard models. % Lighting and appliances — Energy Star qualified homes may also be equipped with Energy Star qualified products: lighting fixtures, compact fluorescent bulbs, ventilation fans and appliances, such as refrigerators, dishwashers, and washing machines. These Energy Star qualified products provide additional energy savings to the owner. % Third-party verification — With the help of independent Home Energy Raters, Energy Star builder partners choose the most appropriate energysaving features for their homes. Additionally, raters conduct onsite testing and inspections to verify that the homes qualify as Energy Star.
PBA PROGRAM Continued from page 19
associations then must be aligned with the student chapter. The local association should sponsor some activities for
the student chapter, invite students to its meetings and encourage its members to participate as advisors or members of the endorsement review team. PBA will need members and educators from all parts of Pennsylvania to
assist in the evaluation process by visiting schools interested in gaining the association’s endorsement. To pass the qualification test, the technical schools’ individual programs must meet appropriate criteria for facilities, equipment, instructors, curriculum and instruction, placement and post-graduation success. Under certain circumstances, schools will be reevaluated to maintain their certified programs. Just under 10 student chapters in Pennsylvania have already aligned with local builders associations. These programs may apply for endorsement and could be approved to test students and award certifications in May. PBA’s work force training and education committee hopes to reach out to additional technical school programs so they may offer certification during the next school year. PBA will announce names of programs approved for endorsement as they are approved. For additional information about this program, contact Arlene Miller, PBA field service director, at (800) 692-7339, or by e-mail at amiller@pabuilders.org. V
Join the 600+ members already in the PBA Workers Comp Program 3URJUDP $GPLQLVWUDWRU EK McConkey & Co, Inc Contact: Tisha O’Donnell 717-505-3153 todonnell@ekmcconkey.com www.ekmcconkey.com/pba.htm
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It’s easy - contact us and we’ll have a local agent get a quote for you. 20
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March/April 2007 • Keystone Builder
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Homeowner education
Promote the home warranty advantage by Nikki Brand n the competitive business of building and remodeling, providing homeowners warranties is one way to distinguish your company from competitors. Warranties can put you and the homeowner at ease, as liability insurance doesn’t cover all of the problems that occur after a project is completed. There are warranty options to fit any builder’s needs and budget. “Lawsuits are very prevalent in this day and age,” said Sue Palkovic, vice president of marketing for Residential Warranty Company. “A 10-year written and insured warranty takes care of requests for frivolous repairs.” About one third of new homes come with a warranty, usually calculated into
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the prices for all of a builder’s homes. Warranties are a strong sales tool that often help both builders and homeowners by setting up a resolution process. Palkovic said that homeowners sometimes ask for repairs that are personal preferences, such as having a wall repainted, so it is helpful for builders to have a warranty that clarifies what is covered. Palkovic said that the warranty books RWC gives clients have thorough explanations of what is covered, what the builder will do to repair the problem, and what changes in a home can be expected, like minimal cracks in masonry. RWC offers a 10-year major structural defect warranty that covers one year of workmanship, two years of coverage
on selected mechanical systems and 10 years of coverage on major structural components. Builders can also choose a 10-year designated structural elements full-coverage warranty that lists specific measurements and tolerance limits to determine the 10-year structural coverage, one year of coverage on workmanship and two years of coverage on selected portions of mechanical systems. Palkovic said RWC realized several years ago that builders needed a menu of warranty options to choose from and has created a 12-year insured warranty for Pennsylvania that follows the state’s statutes and is priced at a flat rate regardless of the price of the home (a small fee is charged for homes in excess of $1 million). The policy includes a dispute
The quality of work builders and remodelers put into a home can be controlled — the quality of the materials they use and products they install can be out of their hands. Here is the estimated lifespan of common home components, which vary by make and model, and can be affected by homeowner use and care:
Appliances:
Countertops:
Heat pump:
Siding:
• • • • • •
• Laminate — 10-15 years • Wood/butcher block counters — 20+ years
• 15 years
• • • •
Dishwasher — 10 years Dryer — 14 years Freezer (standard) — 16 years Microwave — 11 years Range — 14-19 years Washer — 13 years
Bathrooms: • Fiberglass bathtub and shower — 10-15 years • Toilet — 50 years
Cabinetry: • Kitchen cabinets — 15-20 years • Medicine cabinet/bath vanity — 20 years
Doors: • Screen — 25-50 years • Interior (solid corewood) — 30-life • Exterior (protected overhang) — 80-100 years • Garage door — 20-50 years
Electrical: • Copper wiring — 100+ years • Insulation — lifetime
Finishes:
Ceilings:
• Paint, plaster and stucco — 3-5 years • Sealer, silicone and waxes — 1-5 years
• Suspension — lifetime • Acoustical — lifetime
Floors:
Central Air Conditioning: • 15 years
Chimney, fireplace and brick veneer:
• Oak or pine — lifetime • Carpeting — 11 years • Marble flooring — lifetime
Furnace (gas or oil): • 18 years
• Lifetime 22
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Landscaping: • • • • • •
Wood deck — 15 years Brick and concrete patio — 24 years Concrete walk — 24 years Asphalt driveway — 10 years Swimming pool — 18 years Fence — 12 years
Plumbing: • Sink (porcelain) — 25-30 years • Facets (high-quality) — 15-20 years
Roofing: • Asphalt, wood shingles and shakes — 15-30 years • Slate — 50-100 years • Asphalt composition shingle — 15-30 years
Shutters: • Aluminum (exterior) — 3-5 years • Wood (exterior) — 4-5 years • Plastic/vinyl (exterior) — 7-8 years
Gutters and downspouts — 30 years Wood — 10-100 years Aluminum — 20-50 years Vinyl — 50 years
Smoke detector: • 12 years
Stairs: • 0-100 years
Walls: • Brick and stone — 100+ years • Drywall/plaster — 30-70 years
Water heater (electric): • 14 years
Window screens: • 25-50 years
resolution process and free mediation; binding arbitration is available. One company, 2-10 Home Buyers Warranty has fine-tuned its programs during the past 26 years. Homes enrolled in the Home Buyers Warranty Program receive the 2-10 HBW Warranty, which includes10 full years of third-party, insurance-backed structural defect coverage for load-bearing components, as defined in the warranty; two full years of surety coverage for system defects in wiring, piping and ductwork in electrical, plumbing, heating, cooling, ventilating and mechanical systems; and one year of surety coverage against defects in workmanship and materials. There are differences in the programs companies offer, so builders should make sure they are clear on the details of the program. Under a 2-10 Home Buyers Warranty, builders may be covered for issues like ground movement, which may not be
covered under liability insurance or other warranties. Joan Riordan, general counsel for 2-10 Home Buyers Warranty said the company assists homeowners and builders in resolving warranty disputes, and if necessary helps the parties initiate arbitration. “Builder-members of the HBW Program also receive complimentary comprehensive educational programs designed to explain to builders essential techniques and actions required to manage their risks, whether these risks lie with subcontractor relations or site safety, to name a few,” she said.
The most common reasons builders forgo warranties “One of the most frequent reasons given for not providing a warranty is that the builder has never had a construction defect claim and is convinced he will
never have one,” Riordan said. “This is a false sense of security. Builders do not intentionally build substandard homes. Problems can and do occur even in the best-built homes.” Some builders believe their work will be covered by their general liability policy, which is not always true. “Builders’ obligations to their customers are defined by state law; unfortunately, many builders do not fully understand their liability,” Riordan said. “Remodeling work is no different than new-home construction. Mistakes happen. It is reassuring to the homeowner to know that their remodeler stands behind his work.” Remodeling warranties are offered by some warranty companies. A Gallup poll suggests that 79 percent of homebuyers and sellers rate home warranties as most important, behind location, design, and financing options — a statistic that builders might want to keep in mind. V
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I Keystone Builder • March/April 2007
Member spotlight
Donco Construction
Partnerships, in-house services create new opportunities for family-owned company. by Jennifer McDermitt onco Construction has done a lot of maturing since its inception in 1964. The company moved into its second generation of family operation, changed its customer base from the first-time to the move-up homebuyer, and added services and partnered with other businesses to create better opportunities for the growing company. Gary Lenker, vice president and director of operations, says the changing market created the need for a new focus. “We were primarily an affordable home builder for a number of years, working with lending institutions to bring the dream of home ownership to first-time buyers,” he said. “Honestly, I wish we could have continued in that market, but the cost of land today has made that very difficult,” he added. Lenker says the company still builds some affordable housing, but the majority of the 35-50 homes it builds a year is for the move-up buyer. Affordable housing is still an issue close to Lenker’s heart — he sits on the board of directors and serves as vice chairman for the Pennsylvania Housing Financing Agency, an organization that is dedicated to providing affordable housing for older adults, families of modest means and persons with disabilities.
D
Serving the next generation Lenker’s father, Gene, and uncle, Don, started Donco Construction in 1964, and although Lenker says he was always around the business as a youth, he officially joined the business in 1976 after earning his associate’s degree
Business quick facts: Donco Construction • • • • • •
Owner: Donald Lenker, president Years in business: 43 years Number of homes built per year: 35-50 Counties of operation: Dauphin, Cumberland, York Local association: HBA of Metro Harrisburg Association involvement: Gary Lenker, vice president and director of operations, served as the president of the HBA of Metro Harrisburg, regional vice president and president of PBA and life director for the NAHB • Awards: Pennsylvania Builders Association 1992 Builder of the Year Award and 2002 Distinguished Achievement Award and NAHB’s 1997 National Voluntary Energy Efficiency Program Award • Company motto: “The builder with bright ideas!”
in business administration and real estate from Harrisburg Community College. Lenker has seen many aspects of the business change since that time, and perhaps the most significant change has been in the customers themselves. “This next generation of homebuyers is more educated, more demanding and more impulsive,” he said. “They expect you to be there every step of the way, and we have been able to achieve that.” Today, Lenker’s uncle is involved, although Lenker’s father has since retired. To better serve this new generation, Donco Construction has created its own in-house real estate company, which also serves to better market the homes Donco Construction builds. Lenker says Donco has also become involved in affiliated business arrangements with title companies and lending institutions. “When it comes to homebuilding, there are so many areas that cross over into each other,” Lenker said. “Partnering with these companies allows us to make the process simpler for our customers.”
Thinking outside the box Lenker says it’s easy to get wrapped up in your own company, but in the late 1970s, when his local school district proposed a $500 per unit residential tax, he realized the importance of association involvement. “I and others in my community enlisted the help of the Home Builders Association of Metro Harrisburg and the Pennsylvania Builders Association, and we were able to defeat the tax,” Lenker said. “That really showed me the power in numbers and what the association does for our industry.” After that, Lenker says he was hooked. He has served as president of the HBA of Metro Harrisburg, regional vice president and president of PBA, and life director for the National Association of Home Builders. In addition, Lenker serves on the Dauphin County planning commission and as chairman of the Tri-County Regional Planning Commission. Donco Construction has also won several awards including PBA’s 1992 Builder of the Year Award and 2002 Distinguished Achievement Award, as well as NAHB’s 1997 National Voluntary Energy Efficiency Program Award. Lenker says his love of building and his desire to be involved in the industry goes back to the satisfaction he felt building homes for the first-time buyer. He said, “Meeting the needs of a family and giving them a home — there’s really nothing like it. That hasn’t changed for me, regardless of who the customer is.” V March/April 2007 • Keystone Builder
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