Table of Contents December 2006

FEATURES

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  2006 Wage & Benefit Survey

  A good pay and benefit package helps remodelers attract and keep good employees. How does your company measure up?

   

Before and After

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  Near-Zero Tolerance

  Small spaces loom large throughout this green Minneapolis whole-house remodel. Every inch is accounted for.

   

VIEW POINT

FIRST WORD

• Better Deal

  In the spring of 1971, I was number-three man on a three-man crew building a custom home on a hillside in Peacham, Vt. I had never swung a hammer or used any power tools, so I was hired as a laborer and carpenter trainee — meaning I spent the first few weeks shoveling drainage stone, stacking...

   

IN PERSON

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  Strong Show

  For four days in October, more than 10,000 remodelers headed to the 2006 Remodeling Show in Chicago, where they attended seminars and clinics, networked with peers, and checked out hundreds of companies displaying their products on the showroom floor.

   

Dot Comment

• Get It Online

  Last month we featured the 2006 Cost vs. Value Report in a slightly different — and we believe much-improved — format from previous years.

   

News + Notes

• House Rules

  The transfer of power in Congress has broad implications for the building industry.

   

MARKET WATCH

• Figure This: Percentages and Prices in the Remodeling Market

  Decrease in median home price from September 2005, the biggest year-over-year drop since December 1970.

   

• Local Forecast: Thinking Positive

  It's fairly routine to hear people grumble about how the media only report bad news. It's much less common that those people do something about it.

   
• 

  The Inevitable Slowdown

  The third-quarter release of the Remodeling Activity Indicator (RAI) reflects a slowdown in the home improvement industry.

   

COMMENTARY

GUEST COLUMNIST

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  Group Think

  I used to think of “synergy” as one of those trendy words overused by motivational speakers and athletes. Lately, however, I'm discovering how synergy — multiple parts working in combination — can be profitable for a remodeling organization.

   

LINDA CASE

• The Year Ahead

  Resist the slowdown with your best people, their best ideas, and these four key elements of an annual plan.

   

MARK RICHARDSON

• Stress Test

  These strategies for addressing stress proactively will benefit you, your employees, and your company.

   

SHAWN MCCADDEN

• The Producers

  A well-run lead carpenter system works best for your team and your company when the production manager acts as a mentor rather than as a supervisor.

   

YOUR BUSINESS

Sales and Marketing

• A Unique Experience

  What distinguishes your company from the competition? The only thing no other remodeler can match is the unique experience that your company delivers.

   
• 

  Tour de Force

  The phones ring off the hook for about two weeks every fall at Phase II, says Rick Hjelm, president of the Lakewood, Wash., design/build company.

   

BOTTOM LINE

• Time Sheets

  An estimator anticipates the cost to produce a job, and a carpenter tries to complete that job within the estimate. If owners ask carpenters to turn in timecards on a daily basis, the hours associated with doing specific tasks will be more accurate.

   

• Bonus Trips

  How one remodeler uses a bonus program to cut down on extra trips.

   

BY DESIGN

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  Sketch Pad

  Archeologists may someday attribute the decline of a once-great civilization to the overabundance of suburban homes that typically feature peculiar two-story grand entry-ways that were never even used.

   

FIELD NOTES

• Better Outcomes Through Job Costing

  Job-cost reports are invaluable tools for keeping projects on schedule and on budget, and for improving remodeling processes. If a report shows that the project is starting to lose money, try these constructive responses.

   
• 

  Honest Scheduling

  Michael Howes of MCB Construction, Woodside, Calif., says the schedule is the most emotional part of the job.

   

GOOD FORM

• Doing the Early Work

  Many forms that remodelers use have war stories behind them; harrowing tales of how not having the form cost them thousands of dollars on a job, and how they've used it ever since.

   

Tech at Work

• Virtual Network Setup

  What if you could sit in your truck outside your favorite coffee shop and use the copy of Chief Architect software installed only on your office computer (located 50 miles away) to finish your project design, then print the drawing on a printer in your client's family room while you're driving to...

   

• Taking Measure

  After his national real estate investment and contracting seminars, California contractor Paul Minor used to get approached constantly by people asking for a ballpark estimate on their kitchen or bath project.

   

Ways + Means

• People + Skills: Reaching Out

  Sometimes it pays to work with a headhunter to find highly qualified employees.

   

• Work + Life: Leader Time

  I'm struggling with how much time to spend in the office vs. time in the field. Aside from cloning myself, how can I balance what feels like the need to be both places at once?

   

• Hiring Tips

  For effective hiring, “You should have your campaign going all the time and try to snag folks even though you may not immediately need them,” says Mike Denker, vice president of Hopkins and Porter, in Potomac, Md.

   

• Pre-Qualify for Best Hire

  Finding good tradespeople “is difficult in a metropolitan area where success in the school system is defined as ‘percentage college-ready,' implying that those not college-bound are not successful,” says Jerry Liu, owner of DG Liu Contractor, in Kensington, Md.

   
• 

  The Right Move

  Brothers Ethan and Chris Landis, owners of Landis Construction, had home offices for the first 13 years of their company's existence, and then had temporary offices adjacent to their current office for two years.

   

BIG50

CLOSE UP

• 

  Profile: William Bartlett

  William Bartlett's Home Rebuilders has come full-circle, in a way. While the $7 million Atlanta, Ga., company is rebuilding tear-downs and doing high-end remodels (the average job size is about $300,000), it's also getting back to its original bread and butter.

   

SECOND LOOK

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  Second Look: Bill Simone

  Bill Simone (Big50 2001) says that he now spends three to five hours a week working at his remodeling company, Custom Design & Construction, in Los Angeles. But he's still very much a part of the home improvement industry; he haunts trade shows as chairman of HomePlus Finance, a sub-prime lender...

   

SOLUTIONS

• Q+A: Tools of the Trade

  What kind of tool allowance or program do you have for employees?

   

KITCHEN AND BATH

SPEC BOOK

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  Toilets

  Just because everyone uses them every day doesn't mean all toilets are the same. Whether clients are looking to meet special requirements, such as ADA-compliance or hygiene needs, or simply seeking an upgrade in design or functionality, there's a model available to “dethrone” previous versions of...

   

Management

• K+B Project Costs

  What are the product and materials costs for kitchen and bath projects in your area?

   

SUSTAINABILITY

GREEN SPEAK

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  HVAC Upgrade

  When a client wanted to “go green” remodeling a small bathroom in a 1920s house, AJ Stones of AJ Stones Design Contracting, Pittsburgh, showed how overhauling the heating system could increase comfort in every room and pay off in significant energy savings over the long term.

   

• Head of the Class

  NKBA continuing education promotes green design principles.

   

GREEN SPEC

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  Surface Treatments

  Remodeling Magazine staff picks the latest products. Made from naturally mold-resistant inorganic fiberglass, the Spider Custom Insulation System is a formaldehyde-free, spray-in insulation that completely fills wall cavities, eliminating gaps and voids where energy can escape. Spider's thermal...

   

PRODUCTS

IN FOCUS

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  Safety Equipment: Theft Alarms, Work Gear, Goggles, and more.

  Products from DeWalt, Timberland Pro, North Safety Products, and Elvex.

   
• 

  Rough Hardware

  Remodeling Magazine staff picks the latest products..Bosch. Produced with Bosch's own carbide for quality and consistency, 78 new router bits have been added to the product line now spanning more than 550 bits. The new additions are useful in many applications, including cabinetry/joinery, straight...

   

• Rev Up for the New Model Year

  No matter its capability as a workhorse, starting the New Year with a dirty, dented, or rusty truck could leave clients thinking less of your ability to be careful and considerate of their own property. (Not to mention, your company logo is much more noticeable on a shiny, up-to-date vehicle.)...

   

TRENDS

• 

  The Hardly Wired House

  With the flip of a switch, the leading man dims the lights and the stereo plays mood music. Seem futuristic? Once just a movie fantasy, now home automation product manufacturers say on-demand control of lighting, audio, temperature, and more, is becoming more popular in the remodeling market.

   
• 

  Rays the Roof

  Can reflective roofing materials help homeowners beat the heat?

   
• 

  Purely Tasteless

  If a tall glass of water containing dirt, metals, and bacteria doesn't sound refreshing to you, you're not alone. Though the Environmental Protection Agency and water suppliers regulate drinking water contaminant levels, tap water can contain traces of everything from lead and arsenic to waterborne...

   

LAST WORD

Bench Mark

• Benchmark: Clean It Up

  Good management depends on the ability to quickly spot problem areas and make necessary corrections. That's true on the jobsite and in the office.