FEATURES

  • The Liability Insurance Crisis

    A decade of soft pricing, extravagant claims, and investment losses has the insurance industry scrambling to recoup profits, and residential construction is the first casualty.We call it the 'battlefield,'" says Susan Brodahl, a Washington-state insurance broker, confirming reports that remodelers...

     
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    Mediterranean Makeovers

    Although the construction and layout of these houses, known as Mediterranean or Spanish style, are most suited to the climates of southern California, Florida, Texas, and Arizona, the style has since gained popularity across the country.The design includes stucco siding, clay roof tile, wrought...

     

Before and After

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    Before+After: Southern Comfort

    Atlanta remodeler Danny Feig-Sandoval started working on this house in 1996 and hasn't left. Over the years, the owner of Small Carpenters At Large and his crew have worked on the kitchen, baths, study, attic, and garage. "I think there's only one bedroom in the house we haven't touched," he says.

     

VIEW POINT

FIRST WORD

  • Crystal Ball

    In response to the stress and pace of the runaway expansion of the '90s, remodelers are deliberately slowing down. That means figuring out what you're good at, then being more selective and learning to turn down work that doesn't fit your business goals.

     

News + Notes

  • Wallboard Manufacturer Puts Asbestos Claims to Rest

    New NGC (dba National Gypsum Company) recently announced a $347 million settlement that will protect it from present and future liability claims stemming from lawsuits against the recently bankrupt Asbestos Claims Management Corporation.

     
  • A Look Back

    Looking back on trends and changes over the past year, I find it difficult to separate what's going on in the larger world from the home remodeling industry. Mark Richardson is president of Case Design/Remodeling, Bethesda, Md., (301) 229-4600, mrichardson@casedesign.com.

     
  • Lead Paint Case Still Unresolved

    The suit sought to hold the makers liable for lead poisoning in approximately 35,000 children in the state since 1993. Officials in at least six other states are contemplating bringing lawsuits against companies who once manufactured lead paint.

     
  • Mold on the Hill

    Mold has long been a hot-button issue in the remodeling industry. The bill's sponsor, Rep. John Conyers Jr. (D-Mich.), became interested in the issue after one of his staff members moved into a home that had a mold problem.

     

MARKET WATCH

  • Sluggish Recovery

    At 49.3 in the third quarter, the RMI for current conditions is down from 52.7 in the second quarter; the Future Expectations Index dropped to 48.0 from 52.2 a quarter earlier. Consumer confidence Consumer confidence fell for the fifth straight month in October. Second mortgage interest rates were...

     

COMMENTARY

GUEST COLUMNIST

  • Jury of Your Peers

    When my husband and I started our remodeling business in 1978, he was a craftsman and I knew some bookkeeping. I remember Paul working all day on a site, then estimating and meeting with potential clients at night.

     

LINDA CASE

  • 'Tis the Season

    Gary Stokes of ADR Builders, a remodeling company in Timonium, Md., is a great gift giver. Take each individual employee to lunch during 2003 for the express purpose of learning more about that person.Create a safe psychological environment where each worker feels welcome to suggest solutions and...

     

WALT STOEPPELWERTH

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    Dandy Handymen, Part 2

    Partly because handymen have traditionally been solo operators, professionalism is an issue in the industry.That will mean that successful companies will provide a higher level of service -- and it will usher in an increased respect for handyman companies, as well as increased pay for the services...

     

YOUR BUSINESS

Sales and Marketing

  • Marketing Check-Up

    Like other business owners in the wake of September 11, Skeeter Coleman watched his business revenues drop off this year, from $2.6 million in 2001 to less than $2 million. Coleman hired a marketing consultant to help him create a strong brand identity by tweaking the company logo and rethinking...

     
  • Gym Night

    Rosemont Remodeling owner Ed Sutherland went to the gym to bulk up his business. "I couldn't have done any better as far as dollars spent and the people I want to talk to."

     
  • Living Large

    A Web site can multiply your business presence, but more likely it's just the icing on the cake, the final stroke that solidifies your reputation. With that philosophy, design/build remodelers Sharon and Jeff Rainey, owners of Home Equity Builders in Great Falls, Va., launched a postcard campaign...

     
  • Selling Feasibility Studies

    For many salespeople, the best way to make a sale is to ease their way into it.The study's cost can become part of total project cost if the client proceeds, so you can argue no additional money is spent.

     

BOTTOM LINE

  • Start a Retirement Plan

    A Keogh will do nicely if you're incorporated, but sole proprietors and partnerships need to look into traditional or Roth IRAs. --Howard Scott is a business writer and small business tax preparer in Pembroke, Mass.

     
  • The Selling Price is Right

    There are two common ways to use a percentage to arrive at a selling price that includes gross profit. Selling price for the same estimated costs as in the above example is still $3,732 ($2,650 x 1.4085).

     
  • The "Doomsday" Ratio

    As the name implies, this liquidity ratio is the most demanding because it measures current liabilities against cash alone. --Judith Miller is a Bay area construction business consultant and trainer.

     

BY DESIGN

  • Grand Entrance

    During the remodel of a 1960s ranch-style house in Texas, architect Dave Fazio used the entryway to introduce the contemporary rectangular theme that runs throughout the house. To meet the homeowners' desire to bring light into the house, Fazio created a wall of fixed glass panels set in a...

     

FIELD NOTES

  • Online Safety Training

    Companies can now use online safety courses to provide employees with up-to-the-minute OSHA training while tracking records and proof of compliance. Rochester, N.Y-based Element K, through a partnership with Vivid Learning Systems, offers the Workplace Safety Library online safety training with...

     
  • Trail to Success

    Remodeler Mark Sass assigns his carpenters 14-foot enclosed trailers to attach to their trucks for tools and equipment. "It's a reward for working to grow the company and themselves," Sass says.

     
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    Sending Field Staff to Trade Shows

    Trade shows usually have educational programs to provide a wide variety of training. You may have a few questions about sending your field staff to shows.

     

Tech at Work

  • Building a Better Web Site

    Assume prospects know nothing about working with a contractor. This way, your company is instantly the most qualified and, so far, the easiest to work with.Show pictures and plans and explain why prices differ.

     
  • A Useful Digital Sketcher

    The InkLink tracks the position of the pen on the paper and sends the result to either a computer or PDA (personal digital assistant). --Joe Stoddard, a technology consultant to the construction industry, can be reached at stoddard@cbczine.com.

     

Ways + Means

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    Ten Commandments for Subcontractors and Vendors

    The Reijnen Company in Bainbridge Island, Wash., focuses on very large, very complex remodeling and custom home projects. Because these resources are outside his direct control, Reijnen wanted to be sure that all of their subs and vendors clearly understood exactly what was expected of them.

     
  • Life Expectancies

    When one of Marty Schirber's 1,287 former clients is thinking about buying a house, the Minneapolis contractor is often called in to give his opinion.In addition, when clients sell the house, they usually recommend that new owners contact Schirber and his company, Castle Building & Remodeling...

     
  • Executive Decisions

    Leadership, Joss points out, "is defined not by your title, but by taking an action."About three years ago, management, recognizing that many of those best practices originated among carpenters and laborers in the field, began soliciting their input and inviting them to planning meetings.

     

BIG50

FACE OFF

  • Naming the company after yourself

    It would be fine with me to change the company name to accommodate this, when the time comes for me to sell.Ben Auger, Auger Building Company, Portsmouth, N.H., Big50 2001

     

Live + Learn

  • The Elderly's Statesmen

    If you want to study a company that took a fresh look at an old industry, or that knows how to find and train employees who take customer service to heart, consider Sunrise Assisted Living. Paul and Terry Klaassen learned about the senior care options available in this country when Terry's mother...

     
  • Looking In

    Drywall contractor Dennis Redden has two beefs with contractors: Jobs frequently aren't ready when scheduled, and GCs don't pay promptly.Redden, of Rightway Construction in Oakley, Calif., has six employees and works with about 30 contractors, doing 10 jobs a year for each. They yell and scream to...

     

SOLUTIONS

  • 20/20 Hindsight

    The stock market slump affected sales in our target market, Silicon Valley, as residents lost the portfolio liquidity to fund home remodeling projects. Doug Dwyer, DreamMaker Bath & Kitchen, Waco, Texas, Big50 2000

     

KITCHEN AND BATH

SPEC BOOK

  • Ceramic Tile With European Flare

    Current ceramic tile designs echo an American sense of proportion and style, but with a distinctly European flare. Rustic textures and colors on floors, walls, and surfaces create a welcoming effect in kitchens and baths, while cool metallic accents maintain a sleek look.

     

Management

  • Tub Liner Franchises

    For kitchen and bath dealers, buying into a tub liner franchise can expand their business into a new area and position them to serve the middle market.Linda Brakel, vice president of franchise operations for Bath Fitter (www.bathfitter.com), says the product sells in residences in all areas --...

     

PRODUCTS

IN FOCUS

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    Efficient HVAC Put Homeowners in the Comfort Zone

    Few systems in a home are as important as its heating, air conditioning, ventilation, and air treatment systems, and few systems cost the homeowner as much to maintain and use each year. According to the Department of Energy's Annual Energy Outlook 2002 with Projections to 2020 report, energy...

     
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    Tool Storage Products - 2002

    The ToolPak FannyPak organizes small tools with three internal partitions and tool loops in the lid. The Cargobat Storage System cargo tray fits into the canopy of most truck caps and mounts on the truck's bedrails, leaving the truck bed unobstructed.

     
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    Truck Accessories

    The Ducks Unlimited LSII hard tonneau cover is equipped with a lift assist system that makes opening and closing the cover easy, says the company. Also pictured is the Ducks Unlimited CX series truck cap.

     

READERS CHOICE

  • Reader's Choice

    Jeff Bangs has been installing Corian in countertop applications for 13 years and has found the material easy to repair, allowing homeowners to maintain their countertop's appearance through the years. 6.0 Contact Management & Business Software, by Best Software Company, www.act.com.

     

TRENDS

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    Taming the Wilderness

    The garage has traditionally been one of the least organized spaces in the home, surpassed only by the attic. Photo: Courtesy GarageTekGarageTek's Tek-Panel PVC wall panel system comes with a variety of accessories for storage.

     

LAST WORD

Bench Mark

  • Benchmark: Fair Compensation

    In the March 2001 issue, we set the benchmark for owner salary at 10% of gross revenue. Fortunately there are lots of other perfectly legal ways for company owners to compensate themselves.