Strober-Haddonfield J.H. Brubaker, Inc. Lezzer Lumber MRD Lumber Co. Irwin Builders Supply Group All Locations All Locations Both Locations Irwin Easton 800-723-5546 www.lezzerlumber.com 570-366-0578 www.ibspa.com 610-252-6190 800-326-9562 724-863-5200 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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4 President’s message
16 PaCAH Success
Take action when it matters, not when it’s too late.
Photos from the 2007 PaCAH events that raised nearly $30,000.
6 Work site safety Paul E. Mashburn Jr. from the NAHB University of Housing discusses how contractors are responsible for everything and everyone on a jobsite, including their subcontractors.
18 2007 Builders Gala Registration form and details for the 2007 Builders Gala to be held Nov. 16 at the Nemacolin Woodlands Resort.
9 Working for a better UCC
19 Exploring Energy Tip Sheet
Representatives from PBA and others shared their experiences with the Uniform Construction Code during recent hearings.
Structural insulated panels speed construction, save energy.
10 Member helps family by listening to their needs Ray Fertig helps tailor home to meet needs, provide comfort for family of young girl who suffers from LennoxGastaut syndrome.
21 Reaching out Find out how you can use your company Web site to reach more homebuyers and set yourself apart from the competition.
25 Member spotlight
12 Marketing alternatives
Betsy Rosengrant–Stein of K.D Rosengrant Inc. proves she has nothing to prove.
Find out how community workshops can be your chance to show off, reach out and forge relationships.
26 Final word
14 Meet the Builder
Transportation impact fee map; member becomes first in Pennsylvania to earn the certified graduate associate; and book review of “Last Harvest” by Witold Rybczynski.
PBA will host its first-ever reverse trade show on Oct. 23 at The Woodlands in Wilkes-Barre.
Member Insider Member briefs . . . . . . . . . . . . . . . . . . . . . . A On the hill. . . . . . . . . . . . . . . . . . . . . . . . . . . B Sprinkler Update. . . . . . . . . . . . . . . . . . . . C Liability Insurance Guide. . . . . . . . . . . . . D
Keystone Builder cover designed by Chris Anderson
Keystone Builder
Industry experts weigh in on the question, “Just what are Pennsylvania residents trying to save?”
Volume 4 • Issue 5 • September/October 2007
8
Farmland Preservation
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.
I Keystone Builder • September/October 2007
The sky is falling: EVERYBODY PANIC
“Panicking when something really bad happens is counterproductive. The new Home Depot just down the street is having its grand opening sale — this is not the time to figure out a new strategy for your hardware store. It’s way too late for that.”
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he author of that quote from “The Big Moo,” a book of pithy, innovative business advice from 33 authors, argues that most of us wait until it’s too late to address a long-term problem. As an association, PBA cannot afford to wait when it comes to reaching out to elected officials. We simply never would have stopped an increase in the realty transfer tax or authorization for school districts to impose impact fees if we waited to reach out until legislators were ready to vote. Our actions work because we develop productive relationships over time and make our presence known. PBA members host local legislative events, advise legislative committees on housing issues and support campaigns of industry allies. Our efforts help legislators understand the importance of providing affordable housing for Pennsylvania’s work force and the bountiful share of the state’s economy stemming from homebuilding and home improvements. To continue its efforts in showing educating legislators about housing issues, PBA needs your help. We need you to sign up as a member of the Hammers and Gavels Club who’s willing to contact legislators about pending issues. We need you to attend legislative events hosted by your local associations. And now more than ever, we need you to protect your own bottom line by helping your local association exceed its goal for political action committee contributions. Regulatory changes and other government decisions could prove costly. In shaky economic times, that exposes some of our companies to conditions that could force them out of business. Support your association’s lobbying efforts to ensure your own future. As you plan for the final months of 2007 and next year, consider these words from “The Big Moo”: “Every organization that gets into trouble falters because it waited too long to do the stuff that should have been done a long time ago. Panic early, and your fire drills will actually pay off.” s
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Regulatory changes and other government decisions could prove costly. In shaky economic times, that exposes some of our companies to conditions that could force them out of business.
“
PBA Associate Vice President Rob Jones, Central Susquehanna HBA
President’s message
President Elect Ray Fertig, York County BA
By Stephen Black • PBA President
President Stephen D. Black, BIA of Lancaster County
Who is protecting your workers’ safety?
Photo illustration by Eric Wise
Contractors are responsible for ensuring job-site safety.
Your workers and subcontractors should have someone qualified looking out for their safety by correcting dangerous activity.
by Paul E. Mashburn Jr., NAHB University of Housing f a compliance safety and health officer from the federal Occupational Safety and Health Administration visited one of your jobsites, would it qualify for a focused inspection?
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Four safety hazards cause 90 percent of deaths, injuries An OSHA compliance officer will look for violations and potential hazards. If your company has an effective written safety program and a competent person responsible for implementing your safety program, then your jobsite may be eligible to have a focused inspection, which will save time. Focused inspections concentrate on OSHA’s four primary safety hazard categories: falls, struck-by, caught-in and electric shock. In residential construction, these hazards account for 90 percent of workplace deaths and injuries. The compliance officer decides which projects are eligible for focused inspections. The officer will make a comprehensive, resource-intensive inspection if he believes the contractor failed to make a commitment to safety and health.
I Keystone Builder • September/October 2007
Have a written safety, health program An effective safety and health program starts at the top, with management commitment to a zero-accident goal that begins with the owner of the company and is embraced by all of its employees. A written safety and health program is the next step. The program should explain the company’s commitment to safety and how employees and trade partners are responsible for integrating safety into every aspect of their jobs.
Contractors, subcontractors share responsibility OSHA will typically hold accountable the employer who has exposed his or her employees to unsafe conditions, as well as the employer who may have caused or created the unsafe conditions. For a single violation, OSHA officers may cite the creating employer (that caused a hazard), the exposing employer (whose employees are exposed to the hazard), or correcting employer (that was responsible for correcting a hazard).
How much do accidents cost? Direct Costs (paid by workers’ compensation insurer) • Medical expenses • Indemnity payments covering the injured worker’s salary
Indirect Costs (to your business) • • • • • • •
A recent Occupational Safety and Health Review Commission administrative court decision now bars OSHA from issuing a citation to a construction employer merely because it was a controlling employer, usually the builder in charge of the job. This controlling employer interpretation has been the grounds for nearly all citations issued to general contractors. Prior to this decision, OSHA cited builders for safety violations of trade contractors, regardless of whether the builder caused — or even knew about — the hazard. Despite this decision, builders should strive for safe working conditions for everyone on the jobsite— their own employees, trade partners, vendors, customers and invited visitors.
Most citations go to trade contractors In 2004-2005, there were 8,879 citations issued against general contractors versus 24,414 citations issued against trade contractors. This demonstrates the importance of our construction managers and superintendents focusing on trade contractor practices as a way to improve jobsite safety and ensure compliance with safety standards. Many small building companies wrongly believe that implementing a safety program is too difficult or too time consuming. Perhaps this is why small-volume builders are the source of most of the fatalities in residential construction. Jobsite safety is not just about avoiding a citation from OSHA. It’s about avoiding hazards. It’s about making sure that you have an effective safety program within your company — no matter its size. It’s about ensuring that your superintendents and construction managers are maintaining a safe, clean jobsite and that all your trade contractors and vendors use safe work practices. And finally, it’s about sending everyone home at the end of the work day to their families, safe and injury free. For more information, contact the NAHB Labor, Safety and Health Department (800) 368-5242, ext. 8507. s
Lost time of injured worker Lost time of other workers who stop work Lost time by foreman, supervisors and executives Cost of time spent on the injury by first-aid attendant and other staff Damage to equipment, tools and materials Incidental cost of interference with production Cost to employer under employee welfare and benefits system • Profit loss from decreased worker productivity, idle equipment • Cost of overhead Source: American Society of Safety Engineers, Journal of SH&E Research
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Just what are Pennsylvania residents trying to save?
by Naomi Gumprich-Munn ennis Satnick thinks Pennsylvania has gone too far in its bid to preserve the state’s farmland and is joining PBA members statewide in requesting a management audit of the agricultural usefulness of the land currently preserved. “We think preserving farmland that merely complies with the existing criteria is not doing the best for the commonwealth as a whole,” said Satnick, a developer from Sequoia Partners of Montgomery County and a member of the Pennsylvania state agricultural board. “It ignores good planning.” Preserving farmland in the commonwealth has been compared to apple pie and patriotism, and PBA supports the preservation of agricultural farmland, says Satnick. PBA members are questioning the difference between preserving agricultural operations and simply preserving space and are asking for a management audit of preservation procedures. “There’s no point in preserving a farm in 2007 to find in 2009 that it’s been abandoned and is now a junkyard. That wasn’t the intent,” said Satnick. “Let’s get an audit to see if the money spent to preserve this farmland has been wisely spent.” The audit will address several issues with farmland preservation, including, but not limited to, the following: the process used to select farms, how many preserved farms are actively engaged in agriculture, the number of acres necessary to deserve preservation, the length of time between evaluations for viability,
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I Keystone Builder • September/October 2007
soil conditions for viability, joint efforts between municipalities and the state’s preservation system and the removal of restrictions on preserved farmland.
We think preserving farmland that merely complies with the existing criteria is not doing the best for the commonwealth as a whole. — Dennis Satnick of Sequoia Partners While preserving farmland is often tied to agriculture’s economic impact in Pennsylvania, data from the state Department of Labor and Industry on Pennsylvania’s “targeted industry clusters” reveals that agriculture and food production in the state boasts 13,072 employers and 314,088 jobs, representing 5.7 percent of the state’s total jobs and paying average wages of $26,308. In comparison, building and construction statistics from the same database report 36,138 employers in that industry, supporting 347,795 jobs, representing 6.32 percent of the state’s total jobs and paying average wages of $40,927. The large amount of preserved farmland in Lancaster County has the remaining communities struggling to make high-density zoning decisions, according to Richard Brown, senior executive vice president of the Building Industry Association of Lancaster County. “I can tell you that housing affordability outside of Lancaster city and some
of the boroughs is nonexistent,” Brown says, “because of the extremely high cost of the land.” According to Brown the agricultural base in Lancaster County is strong, especially with the large population of Amish farmers. “Many of the municipalities do not want the density to be higher. It’s that typical NIMBY (not in my back yard) situation. It’s my acre, and I do not want those townhouses near me.” However, getting preserved farmland returned to developable land status is an uphill climb. “Easements in Pennsylvania’s program are for perpetuity,” said Douglas Wolfgang, director of the state department of agriculture, in the bureau of farmland preservation. “After 25 years from the date of easement purchase, the state board may extinguish an agricultural conservation easement if they determine that the farm is no longer viable agricultural land. “[But] this would likely be an impossible standard to determine, as all eased farms have value for some form of agriculture,” said Wolfgang. Satnick wants farm preservation to follow good planning, just like good development. “A planning component will reduce sprawl,” Satnick said. “Poorly planned preservation may lead to haphazard, leap-frog development,” he notes. “That’s not preventing sprawl, that’s creating it,” he said. s
Construction industry unites to support better administration of Uniform Construction Code
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epresentatives from PBA and several other interested parties shared their experiences with the Uniform Construction Code during hearings held before both state House and Senate committees in May.
Builders note major concerns • A technical advisory committee is needed to advise state government about building-code matters. • Certified independent code inspectors should be able to compete for business and should be not limited by exclusive contracts with local governments. • Building plan review and inspection fees should reflect the cost of inspection and review, not the cost of the project.
Experts should provide technical advice One primary interest of those testifying was House Bill 1096, which creates an advisory group to assist legislators in making decisions about code-related matters. Frank Thompson, president of Sweetwater Builders, said in his testimony that the PBA is “striving to keep the UCC uniform.” He said the association believes the code is working as it stands but would also support the creation of a review committee. “We envision that the advisory council, or as we suggest it be renamed the ‘technical review board’, provide a review and recommendation before the Legislature takes action on any bill that would amend the UCC,” Thompson said. He also proposed that the council needs to make sure all changes are appropriate for Pennsylvania. “The UCC is very sustainable,” Thompson said, “though the technical review board needs to get in place to help make any further changes less political and more technically appropriate.”
PBA pushes for competitive inspections During the hearings, the construction contractors voiced their support of hiring certified independent inspectors, instead of allowing municipalities to establish inspection cartels. The state’s Commonwealth Court ruled in December that municipalities cannot prohibit homeowners from using any state certified inspection service. “(It’s) a great opportunity to create open competition among inspectors,” Thompson said during the hearing. He noted the PBA is working hard to keep the UCC uniform and is in favor of allowing contractors to hire certified independent inspectors. “Municipalities are legally accountable for what occurs when they opt in (to the code), and if they have no control over the
try will suspend an inspector’s license for biased or inconsistent inspections,” Biacchi said. “This provides stronger consumer protection because inspectors will not risk their careers by showing favoritism.”
We envision that the Advisory Council, or as we suggest it be renamed the ‘technical review board’, provide a review and recommendation before the Legislature takes action on any bill that would amend the UCC. — Frank Thompson, president of Sweetwater Builders inspections or even if the inspectors have the right credentials, it’s kind of a Wild West scenario,” said Bob Buddenbohn, executive officer of the Pennsylvania Association of Building Code Officials. “When you have a homeowner or a contractor who is making the choice of who to inspect and pass their work, there’s a conflict of interest because you’re going to be searching for an inspector to give you the result you want.” “That’s sheer speculation,” said Doug Meshaw, PBA director of member services. “Our contractors aren’t trying to get away with anything. They want inspectors to check their job to make sure it’s done right.” Lou Biacchi, PBA director of government affairs explained that under Pennsylvania’s construction code act, municipalities and their inspectors cannot be held responsible for errors by code inspectors, unless malicious intent is proven. “In contrast, when municipalities opt out of code enforcement or allow independent certified inspectors, the state Department of Labor and Indus-
Builders mull excessive local fees, timely review Increasing or introducing competition among certified inspectors may help remedy two problems emerging in building code administration: timeliness and fees. “The current situation has not provided consistent quality and timely plan review and inspections making the UCC less than uniform,” Thompson said. “Proper certification and continuing education of inspectors and plan reviewers is at the heart of uniformity and quality of services. Competition will reduce excessive costs and provide quality service by using independent certified inspectors.” Inspection fees vary widely in the state. Thompson commented that usually the fees charged by municipalities for administration are reasonable but there are “horror stories.” Under Pennsylvania law, fees must cover expenses related to plan review and inspections, not feed the coffers for other municipal projects. PBA members balk at fees based on the cost of the project. “The cost of reviewing a plan and inspecting a job site does not change because one homebuyer chooses more expensive fixtures and appliances than another,” Biacchi said. Construction industry representatives discussed excessive fees during the hearings, beseeching legislators to authorize a state agency to investigate excessive fees. s September/October 2007 • Keystone Builder
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Fertig helps tailor home to meet needs, provide comfort for family by Katie Zimmerman ust over one year ago, John and Natalie Gilmore of Hanover were searching for a builder who could not only build them a new home but possibly even give them a new life. The Gilmores’ 6-year-old daughter, Lili, suffers from Lennox-Gastaut syndrome, a severe form of epilepsy. The disorder leaves Lili at the developmental stage of a two-year-old, and she experiences four types of seizures. Because of her impeded cognitive and physical development, Lili requires constant care from her parents or nurses. As the Gilmores looked to build a new home, they knew they would need someone with the construction ability and the compassion to help alleviate some of their struggles through additions and alterations to a standard home design. Natalie and John strived to find a builder they could trust with this project, and they found their answer in Ray Fertig. “It was like ‘Yes, this is the guy,’” Natalie said. “He gets it. He is Ray Fertig a good person and really wants to help.” Fertig, vice president of Richard D. Poole LLC, first met the Gilmores at the York County Builders Association home show last year. After discussing their wants and needs, Fertig made it his top priority to build a home that would be as convenient and accessible as possible for the Gilmore family. Fertig even made the effort to take the couple to a home in Maryland that he thought had a desirable layout for their new home. Placement of the bedrooms, accessibility between rooms and opportunity for alterations made the layout a perfect fit for the Gilmores. As construction began, the Gilmores worked with Fertig to adapt this plan to their needs. First, the hallways were made wider to increase maneuverability around the house. The placement of an elevator in the home was also essential, giving Lili access to all floors. The elevator was one of several gifts the Gilmores received when building their new home. Friends of the couple started a foundation, Lili’s
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I Keystone Builder • September/October 2007
Lift, in honor of Natalie and John’s courage, dedication and love as parents. Lili’s Lift helped pay for the elevator. The Lumber Yard and Bradco Supply both donated building materials including siding, roofing and railings found in the home. Comcast provided discount cable to the family and PM Computing helped install a customized video system throughout the house. This video surveillance is not only critical to the family and nurses in terms of keepings tabs on Lili, but to her doctors as well. Lili’s doctors will gather information from the videos concerning her seizures that will help with her ongoing treatment. The Gilmores, who moved in over the summer, said they are thrilled with Fertig’s ability to think of the little things that now make their life so much more convenient and manageable. The garage floor has been elevated to eliminate the need for stairs leading into the house. Extra padding placed underneath some of the floors acts as additional cushioning if Lili should fall. Windows fill the back of the home overlooking a beautiful meadow and pasture, a very peaceful and calming scene. The basement of the Gilmore home has been converted into a playland for Lili, complete with plenty of toys and painted scenes on the walls. There is even a swing that hangs from a steel beam in the ceiling, so Lili can enjoy the feelings of playing outdoors in the safety of her own home. That’s not to say Lili doesn’t get outdoors. Lili loves to have fun and swing on her play set, which is easily accessible from the home’s walkout basement. In Lili’s bedroom, her bathtub has been raised to make bathing her more manageable, and a built-in changing table fits perfectly along a back wall. Lili
is also able to enjoy an aquarium built right into a wall beside her bed. “We just can’t say enough about Fertig and everyone who contributed,” Natalie said. “Everything is just so much more easy and convenient, we can really just enjoy now.” s
Lili’s Lift helps families with expenses related to disabilities, medical conditions
Since aiding the Gilmore family, Lili’s Lift has continued to grow and help other families in similar situations. Through building materials, capital and in-kind donations, children with disabilities and their families are realizing their dreams of a one-time home renovation project that will change their lives. Lili’s Lift is a nonprofit corporation. Donations to Lili’s Lift are 100-percent tax deductible. For more information on Lili’s Lift and how you can help deserving families, please visit www.lilislift.org.
InspIratIon Becomes realIty
One Manufacturer One Estimator One Installer
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Illustration by Samantha Dellinger
Community workshops can be your chance to show off, reach out and forge relationships 12
I Keystone Builder • September/October 2007
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keyless locks and tips to keep your home safe. February — Interior design and decorating You hired a decorator for your model home, so ask him or her to take the workshop attendees on a tour. The decorator can explain design ideas while showing off his work — not to mention yours. March — Landscaping Homeowners are eager to pick up tips from professional landscapers about maintaining their lawns. Landscapers Continued on page 14
Holding a community workshop — a free seminar open to the public — allows you to strut as you create a buzz.
W W W N O R A N D E X R E Y N O L D S C O M
by Eric C. Wise, Editor ublic relations and marketing could be the cornerstone of your success in today’s ever-tightening market pressure. Unfortunately, when the business climate dims, business owners trim public relations and marketing spending when they need it most. Businesses earn the biggest return by cultivating relationships and setting themselves apart. Marketing and public relations are proven to yield long-term results. Some marketing efforts reach many people without building any relationships or generating local buzz about a business. Other efforts may prove memorable while detracting from the company’s image and professionalism. In contrast, holding a community workshop — a free seminar open to the public — allows you to strut as you create a buzz. Workshops build awareness of your company and developments by bringing in the public. Host them one Saturday a month at your model home, your office, the home of a satisfied customer or even at a local vocational school. Smaller builders and remodelors may want to hold workshops in alternating months or jointly sponsor workshops with another builder. Here’s the plan: Hold one community workshop each month, draw on your business relationships to host workshops and watch your relationship capital grow with community interest. All builders and remodelors deal with dozens of specialists, subcontractors and suppliers during the course of his business. When setting up these arrangements, you can easily request them to host a workshop in the coming months. Send postcard invitations to your customers, including homeowners, remodeling customers and all leads. Also, send announcements and invitations to local news media. Other than invitations, you will have little expense — minimal cost for refreshments and the time of one or two staff members greeting the attendees. Your location and type of business will determine what workshops to hold. Use the sample schedule to plan your own workshops. January — Home security Invite a home security company or locksmith to discuss security systems,
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September/October 2007 • Keystone Builder
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Community workshops Continued from page 13
are eager to earn the business of homeowners and their associations. April — Insurance needs Few insurance agents would turn down a chance to explain their services to a group of homeowners who are sure to have questions about the bewildering world of insurance. May — The lending process Make it easy for your customers to learn about financing a new home or improvements to their existing home with this workshop. June — Allergies Do you offer options that allow people with allergies to customize a home to their needs? Invite a local allergist to discuss home options that minimize the effects of dust mites, mold and other problems. You can discuss choices available in your homes, including central filtration systems, floor coverings, types of paint and climate/humidity controls. July — Deck, driveway and gutter maintenance
Invite some resourceful tradesmen to discuss proper care of decks, driveways and rain gutters. August — Getting your home ready to sell
Community workshops are your chance to shine, but let the event take over. Remember, you are building relationships that will increase the awareness and reputation of your company. Enlist a local partner in real estate to lead this session, helping your customers to prepare for a move. September — Do-it-yourself questions and answers Provide a panel of three to five tradesmen to answer homeowner questions about repairs and improvements.
October — Appliances Lead a tour of your model home showing off well-equipped kitchens, bathrooms and other appliances. November — Dry wall repair While it may not help you avoid all calls about nail pops, hosting a session about simple repairs of such problems could reduce some calls. December — Energy efficiency Few homeowners live in homes with the energy efficiency of today’s homes. Invite suppliers to discuss the insulation, heating and air conditioning systems in your homes. Community workshops are your chance to shine, but let the event take over. Remember, you are building relationships that will increase the awareness and reputation of your company. If you allow a workshop to become a sales session, you lose credibility and momentum. Keep that in mind, and your guests will keep you in mind when they or their friends need your services. s
Plan to attend PBA’s “Meet the Builder” event DATE: Oct. 23 • TIME: 4-8 p.m. • WHERE: The Woodlands, Wilkes-Barre September 28-29, 2006 • pittSburgh
DaviD L. Lawrence convention center
PBA is holding its first-ever reverse trade show event for the northeast region. Builder members gain exposure to a diverse group of suppliers to ensure their current vendors are competitive, while associate members get the opportunity to meet face-to-face with builders. Meet the Builder is open to all PBA members and is sponsored by PBA’s Associates Council. Builders attend for FREE and won’t want to miss this money saving opportunity! Associates pay $75 to attend (includes heavy hors’deouvres and limited bar) and get the chance to capture the business of PBA’s builder members. Interested in sponsoring this event? Visit www.PaBuilders.org or contact Megan Roby at (800) 692-7339, ext. 3027, for details.
TO REGISTER OR FOR MORE INFORMATION, PLEASE VISIT WWW.PABUILDERS.ORG OR CALL (800) 692-7339. 14
I Keystone Builder • September/October 2007
MemberInsider September/October 2007
Member briefs
Associate members to compete for your business at ‘Meet the Builder’
Supreme Court ruling removes roadblock to development
Based on extremely popular reverse trade shows conducted in neighboring states, PBA is planning a new event, “Meet the Builder,” for the northeast region on Tuesday, Oct. 23, at The Woodlands in Wilkes-Barre. These types of events are called reverse trade shows because builders staff the booths and are visited by associate members promoting their goods and services. The events have proven popular because builders and associates both benefit. Builders gain exposure to a diverse group of suppliers that ensure their current vendors are competitive. Associates benefit by having the opportunity to meet face-to-face with homebuilders. Plus the food and activities make for a fun time. Be a part of this special event and see what all the excitement’s about! Meet the Builder is open to all PBA members and is sponsored by PBA’s Associates Council. For more information, visit www.PaBuilders.org, or contact Megan at PBA, (800) 692-7339, ext.3027. Please note that the date for Meet the Builder was changed after the July issue of Keystone Builder was printed; the correct date is Oct. 23.
The U.S. Supreme Court ruled in favor of the National Association of Home Builders in late June, overturning a lower court’s 2005 decision and leading to a faster path through regulatory approvals. In the case, NAHB v. Defenders of Wildlife, the court ruled that federal regulators reviewing compliance with the federal Clean Water Act may turn control over to state permitting authorities without considering development impact on endangered species. This additional review, which now may be bypassed, delays development for a few months to more than a year, adding significant costs.
Green building seminar planned for October Learn how green homes provide buyers with lower energy costs and higher value during an affordable seminar sponsored by the West Branch Susquehanna Builders Association. Offered through NAHB, the two-day program is scheduled for 8:30 a.m. to 5 p.m., Oct. 19-20 at the Pennsylvania College of Technology in Williamsport. Participants will learn how green homes provide buyers lower maintenance, better indoor air quality and better long-term value. Instructors will also discuss techniques for competitively differentiating your home products by stressing increased indoor environmental quality, as well as energy and resource efficiency. Participants earn 16 hours towards the CGA or CGB designations. For more information, please contact the West Branch Susquehanna BA at (570) 326-4211.
Several brands of defective truck tires recalled Defective truck tires, sold under brand names Westlake, Compass, Telluride and YKS, are the subject of a recall following accidents — one involving construction workers and the other involving an ambulance. According to a recent article from The New York Times, faulty manufacturing of the Chinese-made tires leads to tread separation, which may cause accidents. Hundreds of thousands of these tires were imported into the United States. To obtain more information about this recall, call (908) 687-0559. s
Visit
at www.pabuilders.org
Member Insider • Keystone Builder
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2007 Spring legislative wrap-up PBA triumphs over legislation that threatened affordable housing
On the hill
• School notification act: PBA fought to amend House Bill 71, which originally required developers to notify school districts and send economic impact statements related to housing developments. PBA members sought to require municipalities to notify school districts about new housing developments. PBA convinced the legislators to remove the economic impact statement provision and shift the notification requirement to municipalities. • Realty transfer tax: PBA, along with the Pennsylvania Association of Realtors, scored a huge victory in its fight against increasing the RTT to pay for mass transit. An RTT increase was debated in the final hours of session, and PBA would like to thank all those who participated in its call to action and contacted their legislators.
PBA initiatives succeed during first half of 2007 • Anchor bolts: Senate Bill 437, PBA’s legislation that fixes the IRC provision regarding anchor bolts, was finally signed by the governor on June 27. Now known as Act 9 of 2007, this will save about $3,000 in the cost of a new home by avoiding excessive requirements for foundations unsuitable for Pennsylvania’s climate and geology. • Data Quality Act: Senate Bill 752 passed the Senate on June 20 and now sits in the House State Government Committee. The legislation will help ensure the use of current and reliable data, studies and scientific research by state agencies during the promulgation of new regulations, and PBA will push for committee action in the fall. • Home improvement contractor registration: A compromise between PBA, state Sen. Robert Tomlinson, R-Bucks, and the attorney general’s office resulted in the June 5 Senate passage of SB 100, which increases consumer protection without overburdening contractors. PBA expects the House to consider SB 100 in the fall. Another contractor registration bill, HB 507, may be considered also. PBA opposes the creation of a guaranty fund in HB 507.
Industry pushes for more changes as the General Assembly returns in September • Farmland preservation: While PBA supports the preservation of agricultural farmland, members are questioning the difference between preserving agricultural operations and simply preserving space. To ensure fair practices, PBA and its members are asking for a management audit of state preservation funding procedures. • Mechanics’ Lien Act: PBA will push for House consideration in the fall for Senate Bill 726, which passed the Senate on June 18. SB 726 will change the residential construction exclusion regarding waiver of liens by repealing the $1 million residential construction contract exclusion and replacing it with an exclusion of residences of three or fewer stories in height, not including basements. • Work-site theft: PBA has been working on a legislative remedy for costly work-site theft with Rep. Eddie Pashinski, D-Luzerne, who introduced House Bill 1742, known as the Scrap Material Theft Prevention Act. HB 1742 outlines identification requirements for sale of scrap materials to scrap processors and recycling facility operators. s
I Keystone Builder • Member Insider
Builders:
Fire sprinklers in homes are the consumers’ choice by Naomi Gumprich-Munn ennsylvania builders dodged an unneeded mandate in June when building code officials voted against a proposal to add a fire sprinkler requirement to the International Residential Code. “NAHB opposes any proposal to mandate fire sprinklers in the body of the IRC,” said Frank Thompson, advisor to NAHB’s construction codes and standards committee and a former president of PBA. While PBA members are always willing to install fire sprinklers at the customer’s request, they oppose mandated sprinklers because homebuyers do not believe they are needed. Consumers prefer to choose options for their homes, and they often prefer to not risk damage from malfunctioning sprinklers. Some contractors also are concerned about their liability in the event of malfunctioning systems. The upfront costs of installing fire sprinklers can considerable. According to the U.S. Census Bureau, the average size of homes built in 2005 was 2,434 square feet. This estimate doesn’t include basements, which must be protected by sprinklers, according to ancillary portions of the UCC. Even as installation costs dropped below $4 or $5 per square foot, the cost of fire sprinklers deters many homebuyers from choosing to install sprinkler systems. In addition to installation costs and the possible damage caused by leaking malfunctioning systems, the separate high-pressure water line required in many municipalities adds a recurring cost to homeowners, even if the sprinklers are never used. “We want to make sure that the public knows that mandating fire sprinklers is not necessarily the answer to increasing fire safety,” Calli Schmidt, NAHB environmental communications director, said.
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“You don’t need fire suppression if you’ve got an effective prevention program,” said Calli Schmidt, NAHB environmental communications director. “There are many more cost-effective measures, including installing and maintaining hardwired smoke alarms. You don’t need fire suppression if you’ve got an effective prevention program,” she says. Schmidt says that while the issue centers on public safety, mandatory installation of fire sprinklers gives false sense of security to the wrong people. “People think that they’ll reduce the number of fire deaths by mandating fire sprinklers in new homes, but that’s not where the majority of fires happen.” “Today’s homes are dramatically less susceptible to fire, thanks to the UCC standards for electric wiring, heating and cooking equipment and fire-resistant building materials,” Doug Meshaw, PBA director of member services, said.
In addition, the International Residential Code uses proven standards for smoke detectors in new homes and requires windows and doors that allow for emergency escape. According to U.S. Fire Administration and National Fire Protection Association data, the vast majority of home fire fatalities occur in older homes where there are no operational smoke alarms. In fact, 88 percent of the fatal fires in singlefamily homes between 2001 and 2004 occurred where there were no working smoke alarms. Thompson says the NAHB will continue to press the ICC to develop a lower cost alternative to the current sprinkler systems, even though they will not be mandatory. s Member Insider • Keystone Builder
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A guide to selecting general liability insurance
by Naomi Gumprich-Munn o matter how long you’ve been in business, purchasing the right general liability insurance for your company should be made with a lot of thought and research. “The key to choosing a general liability policy is an insurance company that understands the construction industry and has developed a policy to meet those needs,” said Carolyn Littlefield, chief executive officer of Florida Home Builders Insurance in Tallahassee. Liability insurance protects your company against lawsuits from customers, employees, subcontractors, property owners and others. Claims may come from something your business may have done, or didn’t do, and may have resulted in injury or property damage. Your insurance would pay for these claims against your company and defend you if a lawsuit goes to court.
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Choosing the right policy Look for the following qualities in your prospective insurance company: • A sound financial history • Industry expertise
Board approves endorsement of insurance program PBA’s board of directors approved a new program July 21 that will allow builder members to get better rates on several types of insurance. Florida Home Builders Insurance has provided insurance services to homebuilders in Florida for 10 years and is a wholly owned subsidiary of the Florida Home Builders Association. Florida Home Builders Insurance will modify its successful program for Pennsylvania and plans, by Sept. 1, to roll out offerings for general liability, builder’s risk, property/casualty and limited auto insurance. This will give Pennsylvania homebuilders additional insurance options not available to them now and will compliment the existing workers’ compensation program managed by E.K. McConkey.
I Keystone Builder • Member Insider
• Coverage designed to meet your needs (Many contractors have stringent insurance coverage needs that not all insurance companies can meet.) • Covers your current or planned operations, i.e. residential, commercial, multi-family. Many companies exclude specific types of construction. • A claims department experienced in the types of claims you might face
Premium Factors Your company’s history and situation will affect the cost of your insurance. • Your rating — Insurance policies for your company are rated to determine how much you’ll pay. Everything about your company is evaluated, including sales, payroll and subcontractor costs. • Prior losses — If you’ve had losses, be ready to explain what steps you’ve taken to reduce the chances of similar situations in the future. • Experience — The amount you pay will be affected by how long you’ve been in business. Preparing a brief summary of your relevant experience will help reviewers determine how much to charge you.
How to get the best rates “The more agents and underwriters know about your operations, the better chance they can find the best product at the most competitive price,” Littlefield said. Other ways to decrease your costs are to have a good safety program in place, use written contracts with all subcontractors and make sure your subcontractors carry general liability insurance as good as yours.
How to find the best company Do not use the business directory in your local phone book or message boards at the supermarket. These aren’t the best places to find reliable insurance providers. Ask your friends or networking contacts for a referral, and don’t be afraid to ask detailed questions about the company. Make sure you compare similar policies and prices before you make a decision. After all, you’re not only taking a risk doing business, you’re placing your company’s financial safety on the line. s
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2007 PaCAH summer events raise nearly $30,000
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BA members raised nearly $30,000 July 20 during the 2007 PaCAH fundraisers, which included a motorcycle poker run, golf tournament and evening outdoor festival, all in the State College area. These events serve as this year’s primary fundraisers for the Pennsylvania Committee for Affordable Housing, which contributes to the campaigns of political candidates who recognize the importance of homebuilding to the state’s economy and support housing issues. About 170 members and guests enjoyed the evening’s festival held at the beautiful Stone Valley Recreational Area. The event featured live music, competitive games and two auctions. PBA would like to thank members for their generous support of this worthwhile cause. s
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I Keystone Builder • September/October 2007
Whatâ&#x20AC;&#x2122;s in it for you as a BuiLDEr?
Additional Income/Profitability for builder partner through Title Insurance premium fees and other fee income.
Faster turnaround of documents creates efficient follow-up for builder partner and homebuyer.
Provide superior customer service for the builder partner.
Enhanced Quality Control at the real estate settlement or closing.
Fully Compliant with Federal Government RESPA Laws.
RegisteR today to attend A distinguished tradition will begin at Nemacolin Woodlands Resort Nov. 16. PBA is pleased to announce a prestigious awards ceremony honoring the best in Pennsylvania’s homebuilding industry: the firstever Builders Gala. Dust off that formal wear — it’s an event you won’t want to miss. Complete the registration form below
Registration fee
CONTACT INFORMATION
$75 per person, includes dinner and one complimentary drink
Name(s) ______________________________________________________ Address _______________________________________________________
Registration deadline
City ___________________ State _______________ Zip _____________
Nov. 2, 2007
Phone __________________ E-mail _______________________________
Additional details/questions
PAYMENT OPTIONS Check (payable to PBA) _____ Visa _____ MasterCard _____ Cardholder’s name ______________________________________________ Card No. ________________ CRV No. ________ Exp. date ________ Signature ______________________________________________________ Billing address __________________________________________________ _______________________________________________________________ Please return this form to PBA at 600 N. 12th St., Lemoyne PA 17043 or fax to (717) 730-4396. Confirmation letters and tickets to the event will be mailed Nov. 2.
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I Keystone Builder • September/October 2007
Please contact Megan Roby at PBA at (800) 692-7339, ext. 3027, or visit http://BuildersGala.PaBuilders.org
Exploring Energy Tip Sheet
Structural insulated panels speed construction, save energy by Katie Zimmerman irst introduced in 1935, structural insulated panels have earned their place as an accepted building technique that offers builders labor savings while reducing homeowners’ energy costs. SIPs, made of foam plastic insulation sandwiched between outer skins of oriented strand board or plywood, provide energy savings when used for floors, walls and roofs of light commercial and residential buildings. SIPs are now used more often in residential construction, in addition to their use for post-and-beam construction. SIP manufacturers often provide builders with floor plans that can be adapted to the homebuyers’ needs. In addition, the manufacturer helps adapt plans intended for wood framing. From the plans, the manufacturer produces the panels routed for electrical connections. Plumbing can be piped through SIPs, although most pipes are found in interior walls.
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Benefits of SIPs • Go up faster than traditionally framed buildings. • Are ready to install on jobsites, eliminating jobsite operations. • Save money for builders through decreased construction and labor costs. • Reduce jobsite waste during construction. • Reduce heating and cooling costs for homeowners and may even qualify them for energy-efficient mortgages and higher appraised values. • Lead to better air quality in homes by filtering for allergens and dehumidifying the air.
SIPs and the Uniform Construction Code Under Pennsylvania’s building code, builders must have plans using SIPs approved by an architect. The International Code Council approved SIPs for the next edition of the International Residential Code, to be published in 2009. If a local code official is unfamiliar with SIPs, their pending inclusion in the code should help ease any concerns. For more information, visit the Structural Insulated Panel Association’s website at www.sips.org. s
Disadvantages of SIPs • Homes with SIPs require air exchange through a mechanical ventilation system. • Give off the odor of oriented strand board, but only during construction. • Carry sounds more throughout the home. • May be challenging to install, especially SIP hip roofs. • Require builders to learn installation techniques different from wood-frame construction. • Are hard to cut or modify once made without compromising the structural integrity of the wall. • Are more expensive than frame walls. The majority of warnings about SIPs can be easily resolved with some consideration, precise planning and proper installation of SIP systems. Accurate installation, while sometimes difficult and requiring an expert, is imperative to reap the benefits of SIPs. Although SIPs can cost more money up front, it is likely the energy saved in the long run will mean more money saved in your pocket overall. September/October 2007 • Keystone Builder
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Use a company web site to reach more homebuyers
by Kim Barger or more builders, creating a web site has become a necessity for reaching todayâ&#x20AC;&#x2122;s tech-savvy homebuyers. Customers may not know all that goes into installing stairs, but most web users can spot a clunky, outdated web site. A good web site can prove to be a huge benefit to a company and can lead to new customers and increased sales. However, a poor web site can portray an undesired, unprofessional image, eventually resulting in lost business. So how can you make sure your web site is working for you? And how can you ensure that your web site stands out?
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Continued on page 23 September/October 2007 â&#x20AC;˘ Keystone Builder
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Construction Survey Land Clearing Drilling & Blasting Mass Earthwork Utilities Concrete Curbing Paving E & S Controls
Contact: Joe England ď ˇ 717-445-4571 www.brubacher.net
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company Web site Continued from page 21
Make your web site look professional One of the most important things to keep in mind when creating a web site is to keep it simple. This means that visitors to the web site should be able to easily find the information they need. Jill Allan, business manager for the Meritage Group in Pittsburgh, said, “One of the main factors we considered when building our web page was providing the most requested information in an easy to use format.” Web visitors will like a site more if they can find what they need in one or two clicks from the main page. The main page should prominently display the company’s phone number, address and an e-mail link. Business sites often build contact information into templates so contact information is available on every page. Many sites use electronic forms to gather information from prospective customers, but since impersonal forms turn off some people, it’s advisable to have e-mail available. Listing email addresses provides a level of convenience for existing customers with a specific question, in case they don’t have their contact’s business card handy. A big mistake that people often make when creating a web site is to go overboard with special effects. While these effects may seem unique and catchy, too many detract from the company’s marketing message and make web sites load slowly. One or two effects are okay, but stay away from multiple spinning or flashing graphics. Some other ideas to help keep your web site looking professional include: • Keep all the pages consistent • Use colors that are pleasing to the eye • Do not overcrowd pages • Keep the content current
A good web site can prove to be a huge benefit to a company and can lead to new customers and increased sales. However, a poor web site can portray an undesired, unprofessional image, eventually resulting in lost business. as well as local builders associations’ web sites. PBA keeps its site updated with pertinent information for homeowners and homebuyers, a useful resource for builders’ customers.
Web site promotion After their web sites are up and running, builders should promote their sites. After the web site is established, they should add its address to business cards, letterhead, brochures and advertisements. There’s no such thing as promoting a company’s online home too much.
More information PBA offers, at no cost to members, an informative web site seminar to expand on these ideas and answer members’ questions. PBA will make this seminar available to any local association or region with at least 10 members scheduled to attend the session. Members should contact their local executive officer to arrange a seminar with Scott Elliott, PBA director of public relations and public affairs. s
Make it stand out While special effects on a company’s main page are not the answer to making a web site better, adding features inside the site may be, especially if used to provide customers with insight about your products and services. “By supplying a virtual tour on our web page, potential customers can view our products, enabling us to make sales before our model homes are built,” Allan said. Another feature you can include on a company web site to make it stand out is a link to a mapping web site, such as Google maps, to show where its office or developments are located. This can save potential customers a time-consuming step and will also prevent them from leaving the web site to retrieve this information. Customer testimonials and photo galleries of projects help project a company’s image online. These features will provide a better idea of the work and services the company provides. Web designers must remember to size photos so they load quickly and appear sharp on the site. Finally, builders should tout their membership in professional organizations with both logos and links, ideally on their companies’ main page. Association membership builds company credibility. PBA encourages members to use its logo on your web site and link to the PBA web site at www.PaBuilders.org
The Best Choice For All Your Building Needs Proud Supplier of ELK Roofing Products to K. D. Rosengrant
toll free
2608 Keyway Drive, York, PA 800-743-5491 tel 717-741-4644 www.bradcosupply.com
September/October 2007 • Keystone Builder
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Strober Building Supply MORRISVILLE, PA (800) 234-2581
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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Member spotlight
K.D. Rosengrant Inc. Betsy Rosengrant–Stein proves she has nothing to prove by Jennifer McDermitt rom a very early age, Betsy Rosengrant-Stein of K.D. Rosengrant says she was always “ the only girl on the team.” Whether it was the youth soccer team or the U.S. Coast Guard, Stein was forced to work harder to prove herself among her male counterparts. So when she joined her father’s remodeling business in 1997, she knew it wouldn’t be easy to be a woman in a male-dominated industry. As she learned the business and prepared to take over, she only had one request of her father, “Early on, I told my dad that if I made a mistake, please tell me in private and don’t undermine me in front of the guys,” she said. “He understood, and he always respected that request.”
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There’s no place like home Stein’s father, Karl Rosengrant, started K.D. Rosengrant in 1960, calling himself a “general contractor” and taking on any job that presented itself. Through the years, Rosengrant focused on remodeling and the business experienced a great level of success. When another contractor advertised his business as “York’s No. 1 contractor,” Rosengrant adopted his own slogan: “We are York’s No. 2 contractor. (When you’re No. 2, you try harder!)” “Ironically, that contractor went out of business a few years ago,” Rosengrant-Stein said. “We decided to keep the slogan, though, because it is just part of who we are.” Rosengrant-Stein grew up in her father’s business, going along on jobs and often performing a good portion of the “grunt work” during her high school years. Stein says it was perhaps that “grunt work” that turned her off to the building industry, so following her high school graduation, Rosengrant-Stein enlisted in the U.S. Coast Guard. Rosengrant-Stein enjoyed her time in the Coast Guard, however after five years in the service and after meeting her husband, Stein started to consider joining the family business and returning home. “The Coast Guard gave me an appreciation for what I had and what a wonderful opportunity was waiting for me,” she said.
Business quick facts: K.D Rosengrant Owner: Betsy Rosengrant-Stein, president Years in business: 47 years Number of remodeling projects per year: 100 County of operation: York Local association: York County Builders Association Association involvement: Rosengrant-Stein is the current president of the York County BA. She is the local’s first female president • Company’s slogan: “We are York’s No. 2 contractor. (When you’re No. 2, you try harder!)” • • • • • •
Rosengrant-Stein returned to the business in 1997, asking her father to teach her the inner workings of the business. When Rosengrant was considering retirement in 2002, Rosengrant-Stein offered to buy the business. Today, Rosengrant-Stein runs the business with the help of her father and her husband. “My father was ready to take a backseat but not completely leave the business,” said Rosengrant-Stein. “He works about three days a week and likes to do a lot of the estimating with me. My husband, John, joined the business in 2003 as my operations manager, and he has been a great addition to the company.”
Giving 100 percent in all that she does Rosengrant-Stein says that no matter what she does, she gives 100 percent, which is why she was so adamant to serve as president of her local builder’s association, York County BA, once she learned about all the great work the association does for the industry. “A lot of presidents are asked to serve, but I didn’t want to wait to be asked,” Rosengrant-Stein said. “I stepped up and said, ‘Hey, what about me?’” Rosengrant-Stein loves the industry and appreciates the joy she brings her customers. “A lot of homes in York County are over 40 years old, so the potential for improvement is pretty high,” said Stein. “I love that that I get to see immediate results from the fruits of my labor, which is the best part of remodeling.” Rosengrant-Stein credits her parents for her passion and dedication. “My parents always supported me,” said Rosengrant-Stein. “Whether I was the only girl on the soccer team, one of few females in the Coast Guard, or the first female president of the local association, my parents always told me I could do whatever I wanted to do, and that is something I strive to do for my nine-year-old daughter, Ashley, as well.” s September/October 2007 • Keystone Builder
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Final word
Where in Pennsylvania? Municipalities with transportation impact fees are shown in yellow.
Source: Pennsylvania Department of Transportation
Book Review Member becomes Pennsylvania’s first certified graduate associate Michael Kurpiel of Strober Building Supply recently became one of a select group of building industry professionals nationwide and the first in Pennsylvania to earn the certified graduate associate designation, identifying him as one of the building industry’s top professionals. To earn the designation, Kurpiel successfully completed an intensive series of six eight-hour courses. The program’s curriculum incorporates training on a range of topics including business management, emerging technologies and market trends. “Taking this certification program was an extremely important step in expanding my builder sales knowledge and increasing the customer service skills that strengthen business relationships,” Kurpiel said. “Selling a product, labor or service is the easy part of sales. Understanding how you fit within the builders’ company, and helping them stay in business, is the challenge.” 26
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Last Harvest discusses developer’s experience in Chester County by Eric Wise In “Last Harvest: How a Cornfield Became New Daleville,” Witold Rybczynski follows the transformation of farmland in Londonderry Township, Chester County, into a neotraditional development. Also the author of “Home,” Rybczynski paints a full picture of the cumbersome process of land development — explaining the principles of neotraditional development with its neighborhood and community-centered layout. He details the construction of Seaside, the trendsetting development in Florida and discusses the character of homes in Chestnut Hill, where he lives. Last Harvest is peppered with comparisons, interesting facts and detail that provide a rich understanding of today’s building and development. The book spotlights the experiences of Joe Duckworth, president of Arcardia Land Company in Wayne, as he worked to fulfill his vision of creating New Daleville as a traditional neighborhood development. In less than 300 pages, Rybczynski explains the difficulties of developing land in Pennsylvania and some of the ways Duckworth worked to overcome opposition. Overall, he provides a sympathetic look at the challenges builders and developers face in operating their businesses. s