Table of Contents January 2003

Features

• Taxing Endeavors

  New federal tax laws were designed to stimulate the economy. One of the most difficult -- and often overlooked -- aspects of tax planning involves reconciling the objectives of deferring or reducing federal taxes with the liability for state and local taxes.

   

• All Boxed Out?

  For better or for worse, the large home improvement retailers are changing the face of remodeling.

   

• Solving the Labor Problem

  According to the Bureau of Labor Statistics, demand for construction workers will grow 13.3% by 2010. "The employee can't work for you unless he or she has valid work authorization," she says.

   

Before + After

• 

  Self-Employed Doesn't Equal Hassle-Free

  When a remodeling contractor works for himself, every headache associated with designing and building a project disappears, right? "The [Scott] Building needed a tremendous amount of work," says Joseph Cacioppo, of JPC & Associates, Architects, the Long Island architect Jaworowski worked with on...

   

Reader Panel

• Reader Panel: Salary and Benefits Survey

  Average hourly pay for a lead carpenter nationwide is $24.63, according to our sampling of 646 remodelers with payrolls. Average production manager pay is $27.81 an hour.

   

Other Articles

• Taxing Endeavors

  New federal tax laws were designed to stimulate the economy. One of the most difficult -- and often overlooked -- aspects of tax planning involves reconciling the objectives of deferring or reducing federal taxes with the liability for state and local taxes.

   

• All Boxed Out?

  For better or for worse, the large home improvement retailers are changing the face of remodeling.

   

• Solving the Labor Problem

  According to the Bureau of Labor Statistics, demand for construction workers will grow 13.3% by 2010. "The employee can't work for you unless he or she has valid work authorization," she says.

   

View Point

• Things Are Looking Up

  The Conference Board's index went from 79.6 in October to 84.1 the following month. According to the U.S. Bureau of Labor Statistics, the seasonally adjusted unemployment rate for construction workers this October is nearly 10%, up significantly from 8.3% a year ago.

   

• Magazine for a Growing Market

  In October of last year, Hanley-Wood, REMODELING's parent company, launched EL NUEVO CONSTRUCTOR, the only Spanish-language magazine in the construction industry bringing readers up-to-date information on topics of interest.

   

• Suits Still Threaten Paint Makers

  It's been 25 years since lead paint was banned following reports that exposure to the paint caused health problems in children. ICI has been dismissed from 16 suits in the last year, including Rhode Island's.

   

• Deck America, The Home Depot Sign Agreement

  Deck America of Woodbridge, Va., has announced that it will sell several deck models through approximately 70 Home Depot stores.

   

• Michigan Remodeler Aids Woman in Need

  This winter marks the first in four years that 62-year-old Rashid Alimi can rest comfortably in her home. Mat Vivona Jr. of Father & Son Construction in Troy, Mich., heard about Alimi from contacts he has at a local television station.

   

• Home Improvement Tops Consumer Complaint List

  A national survey has named home improvement the leading source of consumer complaints for the second time in three years. The survey results frustrated Julius Lowenberg, president of NARI.

   

• Stand and Be Counted

  The Census also conducts regular economic surveys, and last month began mailing an economic survey to remodeling contractors. Until now, the Census has collected data from construction firms involved in commercial, industrial, and institutional work, or from new home builders.

   

Commentary

Linda Case

• The Best-Laid Plan

  No one seems to have a good idea about how 2003 will shape up from a business standpoint. Let's hope your business planning's not nearly so unclear.

   

Mark Richardson

• 

  Best Defense

  With a good defense behind them, the offense can make pressure-free decisions and can even take some risk. They can concentrate on making the sale, knowing that production will back them up. The results of a first class production team will live well beyond the project completion.

   

Walt Stoeppelwerth

• Design/Build Does It All

  The design/build concept is growing in popularity among remodeling companies and consumers alike. In the early days of remodeling, few if any companies were able to design as well as build their projects.

   

Guest Columnist

• Building By Numbers

  Over the years, I've tried to find a method of looking at my company's records that could render an accurate picture of our financial profile. Ultimately, with a good analysis of accurate data, I hoped we could make changes in how the company did business that might significantly improve our bottom...

   

Your Business

Ways + Means

• Hooking Clients Early

  David Merrill, president of Merrill Contracting, Arlington, Va., has worked with architects for years -- and sometimes he would even get the jobs they asked him to consult on. Merrill decided to make a major change in the way he deals with the architects.

   

• A Cut Above

  At its "Spring Training" each year, Sun Design Remodeling Specialists, Burke, Va., brings its 25 employees to JLC Live in Baltimore and, offsite, contracts a speaker or speakers to give insight into how great companies operate.

   

• Hire Learning

  Several years ago, Kerry Butler, president of Butler Construction, Kelso, Wash., decided it was time to "make the company young again." In the spirit of the new attitude, and following some new hires, Butler decided he wanted as many of his eight carpenters as possible to become CGRs. At a weekly...

   

• A System for Zero Receivables

  Prior to becoming a remodeler, I learned selling and hands-on management from a smart carpet merchant in San Diego. In addition to letting the client know how much you appreciated the opportunity to deal with them, let them know you'll also appreciate their prompt payment because you need to meet...

   

Bottom Line

• Off-Site Human Resources

  Seven years ago, the insurance agent for Scott Strawbridge's Ft. Lauderdale, Fla., remodeling company called to tell him it was time to pay his workers' comp insurance. To find out if a PEO is licensed to operate in your state, visit www.napeo.org, the Web site of the National Association of...

   

Sales + Marketing

• Sales Workshop: Building Relationships

  Qualifying questions tell you what prospects look for in a relationship; trial closes tell you if you're building one.Poor or improper communication results in an unfavorable value judgment and a drop in perceived value, leaving the prospect two choices: To go elsewhere or to do nothing.The only...

   

• A Network For Referrals

  Over three years, Nasse Chachoff of A.C. General Contractors, Cincinnati, has won nearly $180,000 worth of work from referrals received from a local networking group that has chapters nationwide.Among those in Chachoff's 17-member Business Network International (www.bni.com) chapter are a CPA...

   

• Make That Phone Ring

  Our clients in Los Angeles, Chicago, and New York City received almost twice as many results from targeting a specific need vs. a general approach. Custom, as opposed to canned, newsletters are on point for this marketing tactic.

   

• The Little Things

  Two design/build remodelers used to contracting $400,000 to $500,000 projects discovered that to win smaller jobs, they needed to downsize their approach, whether in a presentation binder or in direct mail.

   

Field Notes

• Q+A: Collection Time

  If there is a problem and the clients withhold the payment, it gives the project manager an opportunity to talk with the client to find out what's wrong so the problem can be corrected immediately. My lead carpenter will often collect payments.

   

By Design

• Book Author Seeks Built-In Details

  Author Carol Abrahamson invites architects, interior designers, and other home design professionals across the country to submit their designs for possible publication in her forthcoming book, Extraordinary Homes: Built-in Convenience Features That Make Any Home Truly Special.

   

• Is Your Design/Build Business Well Insured?

  Contractors and designers have stepped up to meet this demand, but many do so without a complete understanding of the risks and responsibilities they may be assuming in design/build contracts.Traditional liability insurance policies do not cover all (or in some cases, any) of these potential...

   

• Stay Professional

  Rick Hjelm, president of Phase II in Lakewood, Wash., noticed several incidents where employees had difficulty saying no to clients. In one instance, a carpenter sided with the client on an issue, which pitted Hjelm against the homeowner.

   

Tech@Work

• Top Advice on a Budget

  Tom Couvillion, BizMat marketing manager, says the self-help tool for small and large businesses is made possible by interactive software. Instead of having to wing it, or go with their gut, they can contact us," says Jason Plotkin of BizMat, who adds that the site also provides resources, such as...

   

• Digital Camera Buying Tips

  A 3-mega-pixel camera produces excellent 8x10 prints, good 12x16s, and so on.For example, every 2x digital (electronic) zoom cuts image resolution and clarity in half.

   

Big50

Close Up

• Profile: Kathy Wheatley

  Wheatley Associates (Big50 1992) uses a team approach to growth. The growth stems from forming a team that includes a licensed architect, a certified interior designer, an accredited cabinet space planner, a certified kitchen and bath planner, and a registered landscape architect.

   

Second Look

• Second Look: Bernie and Rhonda Gump

  After 70-hour weeks working at his remodeling firm and his property management company, both operating under The Burnell Group name (Big50 1996), Bernie Gump decided it was time to give one up. "I feel like I have things under control vs. feeling like it was a hurricane," Gump says.

   

Solutions

• Suppliers and Demand

  I spread out my window and door purchases between two suppliers. In terms of materials and supplies, I give about 70% or 75% to a single lumber supplier, because he can serve our account very well.

   

Other Articles

• Face Off: Should field crew members wear company uniforms?

  Should field crew members wear company uniforms? We want our crew to present a professional image. We give them button-down shirts and golf shirts, and we also provide logoed work jackets to wear in the winter.

   

K+B

Design Clinic

• Dealing With Multiple Shower Fittings

  Whether it's panel units or custom, designers need to educate themselves before specifying a multiple-fittings shower.The unit has three programmable settings for temperature and sequence of spray outlets.Designer Howard Miller likes the ESS because the single unit can replace multiple valves and...

   

Management

• Appliance Distributors Serve As Educators

  As full-service appliance distributors create interactive showrooms that help homeowners understand and choose products, they're branching out into all sorts of areas and services previously unheard of.

   

Spec Book

• 

  Surfacing Materials Get Back to Nature

  By Stephani L. Miller. Nine colors join the quartz surfacing palette: Quay cream, Coswell cream, Carlisle gray, Bath blue, Wilshire red, Oxwich green, Stafford brown, Derby brown, and Burton brown. Cosentino U.S.A. Silestone quartz surfacing is available in seven new colors: Ivory Coast, ebony...

   

Replacement

Roofing

• The Proof's in the Profits

  There's an old joke: How do you make a million dollars in the remodeling business? --Phil Rea, Phil Rea & Associates, offering professional speaking, money-making newsletter, Sales Pitch, and a powerful monthly sales meeting by phone to over 1,500 remodeling salespeople nationwide.

   

• Upsell the Roof

  Re-roofing the entire home when you build an addition is a smart proposal for you and your clients.Finding shingles to match is not a problem when Waller Construction, Lakeland, Fla., is building an addition. But if the roof has less than five years left in it, says secretary-treasurer Mark...

   

Windows

• Window Problems: Who Pays?

  Someone's on the phone with a complaint about the windows you installed in their addition, what was it, three years ago? Production manager Rob Dagley estimates that maybe one in 20 calls requesting warranty work at Rhino Builders, Kansas City, Kan., have to do with service on a window.

   

Products

Reader's Choice

• 

  Reader's Choice

  Remodeler: Robert Earl, CR Company: Casa Linda Remodeling, San Antonio Product: KraftMaid Cabinets, www.kraftmaid.com. Remodeler: Eric Borden Company: ESB Contracting, Toms River, N.J. Product: LWO Corp.'s Woodway Deckrail, www.woodwayproducts.com.

   

In Focus

• 

  Interior Trim Products

  A wide variety of wood species are salvaged from old mills, barns, factories, and warehouses and recycled into baseboard, paneling, crown molding, wainscoting, and more to re-create historical styles or achieve contemporary profiles.

   
• 

  Garage Doors and Gizmos

  This line of garage door openers now includes a chain-driven unit, the Martin DC 2500. Part of the Early American Collection of carriage-style garage doors, the Presidential Series includes eight wood designs inspired by American presidents.

   
• 

  Software

  As software solutions for the construction industry continually evolve into more sophisticated business tools, contractors may find it difficult to decide what will work best for their companies. Whether switching to a different software system or shopping around for the first time, contractors...

   

Other Articles

• Worth the Risk?

  One measurement is what Les Cunningham of Business Networks calls the "risk quotient." "It's a lot easier to go upside down with a company that's too big than with a company that's small," says Cunningham.