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Features

  • Group Therapy

    Erik Anderson of Winston-Salem, N.C., had only been in business for four years when, he says, “I realized I couldn't continue working at this pace. We thought if we worked hard, we'd earn a good living. We were working really hard and we were hitting a brick wall.” That's when he joined one of the...

     
  • Contract Killers

    Sound business practices and solid customer relations are key to keeping yourself out of court while still collecting every dime that's owed to you. So, too, is choosing your clients carefully, so that you're working for people who aren't looking to pull one over on you.

     
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    Before+After: Changes of Plan

    The 2,000 square feet of space in this 1967 ranch house had small rooms and an awkward flow. After living with the unsuitable space for 20 years, Mike and Helen Moskal began looking for a new house, but they ultimately decided to stay and remodel.

     
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    The Business of Design/Build

    In June, six design/build remodelers got together to talk about the business. Eavesdrop on their conversation.

     
  • For Love & Money

    So what if you can't recite your vows after all these years. You remember the gist. “For better or worse. In sickness and in health. In accounts payable and receivable.” Wait. What was that last one? Doesn't sound familiar? Well, if you and your spouse share ownership and management of your company...

     
  • 2004 Cost vs. Value Report

    This is the eighteenth anniversary of our Cost vs. Value Report, which compares the cost-to-construct for a selection of 18 common remodeling projects with the added value those projects bring at resale. Read on to learn about the current resale conditions in 60 markets.

     
  • Business Happens

    Milestones as goals can be tangible, like moving from being an employee to being self-employed or hiring your first office person or first lead carpenter. But they can also be less tangible, like spending more time with your family, working only 50 hours a week, or taking a two-week vacation...

     

Cost vs. Value Report

  • Roof Replacement

    Project Description: Remove existing roofing to bare wood and dispose of properly. Install 30 squares of fiberglass asphalt shingles with new felt underlayment, galvanized drip edge, and mill-finish aluminum flashing. Average percentage of cost recouped for this project is 80.8%. Read on to find...

     
  • Attic Bedroom

    Project Description: In a house with two or three bedrooms, convert unfinished space in attic to a 15-by-15-foot bedroom and a 5-by-7-foot shower bath. Add a 15-foot shed dormer and four new windows. Insulate and finish ceiling and walls. Carpet unfinished floor. Extend existing heating and central...

     

Other Articles

  • Group Therapy

    Erik Anderson of Winston-Salem, N.C., had only been in business for four years when, he says, “I realized I couldn't continue working at this pace. We thought if we worked hard, we'd earn a good living. We were working really hard and we were hitting a brick wall.” That's when he joined one of the...

     
  • Contract Killers

    Sound business practices and solid customer relations are key to keeping yourself out of court while still collecting every dime that's owed to you. So, too, is choosing your clients carefully, so that you're working for people who aren't looking to pull one over on you.

     
  • RM041201067L1.jpg(90)

    Before+After: Changes of Plan

    The 2,000 square feet of space in this 1967 ranch house had small rooms and an awkward flow. After living with the unsuitable space for 20 years, Mike and Helen Moskal began looking for a new house, but they ultimately decided to stay and remodel.

     
  • RM041101108L1.jpg(90)

    The Business of Design/Build

    In June, six design/build remodelers got together to talk about the business. Eavesdrop on their conversation.

     
  • For Love & Money

    So what if you can't recite your vows after all these years. You remember the gist. “For better or worse. In sickness and in health. In accounts payable and receivable.” Wait. What was that last one? Doesn't sound familiar? Well, if you and your spouse share ownership and management of your company...

     
  • 2004 Cost vs. Value Report

    This is the eighteenth anniversary of our Cost vs. Value Report, which compares the cost-to-construct for a selection of 18 common remodeling projects with the added value those projects bring at resale. Read on to learn about the current resale conditions in 60 markets.

     
  • Business Happens

    Milestones as goals can be tangible, like moving from being an employee to being self-employed or hiring your first office person or first lead carpenter. But they can also be less tangible, like spending more time with your family, working only 50 hours a week, or taking a two-week vacation...

     

View Point

  • Trading Casas?

    Flip on your TV on any given night, and you'll no doubt find people eating cockroaches, exchanging family members, and selecting their spouse from a group of complete — but attractive! — strangers.

     
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    RAI Shows Continued Growth

    Third-quarter data compiled by the Joint Center for Housing Studies at Harvard University indicate that homeowners continue to spend heavily on improving and repairing their homes.

     
  • Demo for a Cause

    This is the giving season, and there are ways you, as a remodeler, can play Santa Claus for families in need. You won't get milk and cookies, but you don't have to dress up, either.

     
  • Safety Violations

    If you cut corners on your scaffolding, it turns out you're not alone; improper scaffolding was the most frequently cited violation of construction and remodeling standards by OSHA.

     
  • Good Show

    The 2004 Remodeling Show, held in October in Chicago, was the best-attended ever, registering a record 12,147 attendees. And if bigger means better, this year's Show was the best in quite a while.

     
  • The Diderot Effect

    A remodeling project that fixes up one section of the home can lead homeowners into realizing the rest of the house pales by comparison.

     
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    Can-Do Attitudes

    For the two weeks leading up to Thanksgiving, the Broadway stage and the Met will have to share the Big Apple spotlight with … sculptures made out of canned food.

     
  • Bad Air?

    Jordan and his wife, Juanita, allege that the moisture caused some $2.6 million worth of damage due to rot and mold.

     
  • OSHA Can You See

    Home builders in Arkansas are scrambling after getting word that OSHA will be conducting random inspections at residential construction sites in the coming months.

     
  • Insurance By Association

    The nation's small businesses serve as the engine of our nation's economic growth,” says Michael Strauss, director of legislative communications at the NAHB. “But spiraling health care costs have hit small-business owners disproportionately hard.”

     
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    Masters of Disaster

    Imagine every one of your jobs has two clients, and that the last thing they planned on doing together is a remodeling project. Imagine also that they can't agree on the scope of work, the budget, or the schedule, and that at your initial meeting, one client is always in a state of extreme...

     

Commentary

Linda Case

  • Finding Your Way

    In a successful company, the company “way” creates the platform for everyone's success in their job, success in delivery to the client, and success for the company's continued operation. But that “way” must allow leeway for change and input and empowerment. In most challenges, there is no major...

     
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    Giving Thanks and More

    It is a time to reflect on what we have — and for most of us, it is bountiful. I've been gathering stories of remodelers and how they share their bounty by supporting their communities. I am amazed by the frequency and the diversity. Many remodelers work with an existing charity like Habitat for...

     

Mark Richardson

  • Passion Plays

    About every two weeks, we host a day-long event called “Discovery Day” at my company. It's designed as a time to share with prospective partners and other companies with whom we have or are contemplating forming an alliance, our insights on the industry and consumer trends, and to explain how our...

     
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    Juggling Act

    Next time you're at the circus or a county fair, watch the jugglers. The juggling usually starts with just one object rhythmically bobbing up and down. Soon the jugglers add a second, then a third, and sometimes a fourth or more. How do they do it? How can they pay attention to four or five balls...

     

Walt Stoeppelwerth

  • Computers, Technology, and Remodeling

    The computer industry has greatly evolved. Hardware and software are incredibly sophisticated. We have desktop computers, laptops, handhelds, and pocket PCs. E-mail communication has made huge strides; video e-mail and Blackberrys are showing up at companies of all sizes As software becomes more...

     
  • Training Tracks

    In the old days, specific training was almost nonexistent. The production manager would check the jobsite every day or so. Usually there were two carpenters and one or two helpers. Granted, products were simpler to install and less expensive. And companies didn't subcontract much beyond electric...

     

Guest Columnist

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    Risking Change

    Too often I have found myself in a conversation at the lumberyard with other builders who mention how hard it is out there and how difficult clients can be. I've been in business for six short but rewarding years. I've had both slow and lucrative times. I can understand the frustration of my fellow...

     
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    Don't Fear Big Remodeler Inc.

    Recently, I talked with a friend and fellow remodeling company owner. He was furious that another, much larger remodeling company had, in his mind, tried to poach one of his longtime employees. I don't know if the employee was approached or that employee approached Big Remodeler Inc. In the scheme...

     

Your Business

Ways + Means

  • Call Me

    It's 5:30 a.m. and your cell phone rings. The last person you want to hear from is a client. Unless you're Norman Gavin. He has a 24-hour answering service that directs calls to his cell phone when no one is in the office. His cell is always with him, he says, “because it's necessary to take care...

     
  • Balancing Act

    How do I hold my team accountable for specific, measurable results with- out being perceived as overbearing and demanding?

     
  • Celebrate Craft

    “We want our carpenters to love their craft and not get bogged down in administration,” says David Amundson, owner of TreHus Builders. Instead of a lead carpenter system, this Minneapolis design/build firm has used a “master carpenter system” for the past 15 years.

     
  • Check It Out

    Several years ago, Dale Nikula's Encore Construction laid a tile floor in a client's first-floor entryway. The client had picked out the tile with Nikula, who was then in sales. Construction began, and the client decided on a different tile. She and Nikula spoke about the change but never...

     
  • By Law: Understanding Financing

    Very often, the ability to offer financing options to your customers is a significant factor in closing the sale. In part one of this series (September 2004), we reviewed open-end credit and direct closed-end credit. Here, we examine perhaps the most common form of financing a home remodeling sale:...

     
  • Charting a Course

    Ken Kumph, owner of Premier Builders, was disturbed by the subjectivity in his company's yearly employee review process. “We'd sit down and talk using boiler plate questions,” he says, which would “prompt discussion about things like reliability and quality. And [employees would] get a raise based...

     
  • Raising the Customer Service Bar

    The good news is there are a thousand options. The bad news is there are a thousand options,” is what Tricia Sinn tells her clients in regard to product selection. That bit of news, from the customers' perspective, might be enough to send them over the edge. Luckily, for Sinn Construction and...

     

Bottom Line

  • Insuring Tools

    Most business insurance covers the office structure and some property but may have limited coverage for tools and equipment. If your policy does not cover off-site equipment, you should consider inland marine coverage. This is a separate insurance that can be purchased as a stand-alone or endorsed...

     
  • Expansion Plans

    If you're looking to expand your remodeling company, investment banker Scott Sanderson has some advice for you. The managing director of Goldsmith Agio Helms, a Chicago investment banking firm, recently helped a remodeling company find funding for expansion through an equity firm.

     
  • Overtime Regulations

    The Fair Labor Standards Act (FLSA) requires overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.

     
  • Base Pay to Bonuses

    Steve Farrell, president of The Farrell Co., Los Altos, Calif., pays his field crew a lower-than-average base salary, and they like it. That's because he then hands out yearly bonuses — big ones. Last year he distributed one that more than doubled one employee's salary.

     

Sales + Marketing

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    Making Product Campaign Cards Work

    Direct mail helps maximize leads, and, later, sales. While 81% of Americans read newspapers, 96% have phones, and 98% have TVs, everyone has a mailbox.

     
  • Sales School 101

    The time to ask is the third or fourth day of an eight-day project. That's when the homeowners see things coming together — things you promised to do. I

     
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    Marketing Workshop/Before+After Hanging Out

    Critique courtesy of Ruth Lozner, M.F.A., who has been an associate professor of design and marketing at the University of Maryland in College Park for 18 years.

     
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    House of Cards

    A card deck service that targets owners of homes valued at more than $500,000 has returned solid leads for Washington, D.C.–area remodelers.

     
  • Have a Nice Trip

    Looking for a way to close sales or spur salespeople on to closing more business? Consider MVI Marketing's “Mini Vacations”

     
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    Add One Cube, Stir Architects

    Architects are intrigued by origami. And by high-profile architects. Contractor David Adams discovered that with a unique marketing gimmick that has roots in the sixth-century Asian art of paper folding. It helps that the gimmick also depicts the work of some renowned architects, among them New...

     
  • The Craft of Cross-cultural Sales

    Working with diverse cultures requires understanding how individuals in those cultures make decisions. If you don't, you risk losing business and turning off prospects. Here's how I've worked with people of diverse cultures.

     

Field Notes

  • Playing It Safe

    Construction companies do not spend enough money on safety incentive programs. That's according to Greg Perricone, a safety specialist for Aon, a national construction-based insurance company in Pasadena, Calif. “If they take a small portion of what they are putting into capital projects and put it...

     
  • Efficient Change Orders

    Change orders rarely come neatly wrapped. At my company, we complete a form in the office based on information we receive over the phone, estimate the cost of the change, and then present it to the client. We try to respond within one day, but our other work often takes precedence.

     
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    Giving Spirit

    A carpenter at DeCiantis Construction had his tools stolen from his truck while it was parked in his driveway. His vehicle insurance didn't cover the loss because he had not specified the tools in his policy. His coworkers came to the rescue, donating their tool allowances to help him replace what...

     
  • Hiring Right

    Upper-level field staff should be included in the hiring process for a new employee who will become part of their team. Most lead carpenters are not familiar with hiring. Here are a few tips to help them evaluate potential employees during an interview.

     
  • Building Futures

    The Florida Home Builders Association (FHBA) recently launched the National Future Builders of America (FBA) construction education program. “Through the FBA program, we can identify students interested in construction and provide them leadership and training skills necessary to help ensure the...

     
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    Trash to Truck

    Three years ago, the city of Kensington, Md., stopped allowing Dumpsters on streets. In nearby Rockville, a $1,500 bond for Dumpsters on the street is now required. Contractors must also submit a plan to the city review committee to explain traffic flow around the receptacle.

     

By Design

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    Design/Build Basics

    It's interesting to note that even in companies that consider themselves design/build, 41% of the owners say they do their own design work.

     
  • Color Shift

    When thinking about color, it's essential to understand that colors shift: Depending on what base colors are contained in a particular paint color, that color may look lighter or darker or more or less vibrant when viewed alongside other colors.

     
  • Color Primer, Part 2

    Choosing the right colors for a space can be a complicated process. Ultimately, the needs of the space and preferences of the client, not a canned formula, will lead to the best solution. Still, there are a few facts and rough guidelines that can help in the selection process.

     

Tech@Work

  • The Evils of E-mail

    On the one hand, e-mail is the No.1 Internet application. On the other, e-mail can cause more problems than it solves.

     
  • Your Call

    Cell phones have moved rapidly from being accessories to being necessities, especially in the remodeling business.

     
  • Build That Wall

    Internet advertisers want to bombard you with pop-up ads. Hackers might need to “borrow” your computer to mount an attack on another server. Or they might be “phishing” for credit card numbers. Or not. A good percentage of Internet mischief is nothing more than kids somewhere testing their...

     
  • Match CAD to the Job

    Spending a little more on niche-specific CAD is often money well spent.

     

Good Form

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    Into the Archives

    As anyone who has ever been audited by the IRS can tell you, it's important to keep a paper trail. Then again, as anyone who has ever had a home office can tell you, keeping too much stuff is no good either. The middle ground is ideal.

     

Big50

Close Up

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    Profile: Ken Moeslein

    Swingline Windows has been exhibiting at the Pittsburgh Home and Garden show for 17 years. But this past March was the first time the company didn't build a booth but, rather, towed its exhibit onto the show floor.

     
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    Profile: Carl Hyman

    Alure Home Improvements of Hicksville, N.Y., attributes its growth from a sales volume of $18 million in 2002 to $27 million in 2004 to Partner Points, a program that promotes repeat and referral business. About 12 years ago, president Carl Hyman (Big50 1993) began promoting profitable referral and...

     

Second Look

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    Second Look: Jim Friedman and Paul Ryan

    While their new construction business is still just 50% of their jobs, they have grown into multi-million dollar projects. New offices in Hawaii and Napa Valley focus on commercial construction and wineries, while the original San Francisco office focuses on projects requiring complete gutting and...

     
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    Second Look: Candi and Troy Hilton

    This past spring, Stilwell, Kan., remodelers Candi and Troy Hilton (Big50 2003) started planning for the future. Avid sailers and more comfortable in warmer climes, they decided that in 15 years they'd shut down their business and retire. By the end of the summer, they were living in Florida...

     

Solutions

  • Solutions: Corporate Talk

    Most Big50 we talked with understand how their companies are organized, although few could specify all the pros and cons of every alternative. For those details, they all bow to the advice of their accountants and attorneys.

     
  • Solutions: Internal Medicine

    We have certain standard jobsite procedures, but we encourage our staff to find better and timesaving ways. Once they determine a better solution, we examine it and get input from all our staff to see if they agree. In some cases, they'll even improve upon the original idea. We then implement the...

     

Other Articles

K+B

Design Clinic

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    Best-Laid Plans

    The large expanse of counter space gives two people enough space to work without bumping into each other. This layout has an open side that usually leads to the adjacent family room or breakfast area or a combination of the two. “The cook is not isolated,” Rose says. The other side of the U is a...

     

Management

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    Central Station

    Chaden Halfhill is both a sculptor and a remodeler, so it's only appropriate that his residential designs reflect his artistic side. For this master suite bathroom, the owner of Silent Rivers in Urbandale, Iowa, created an elegant and eye-catching central tower to hold the sink and tub.

     
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    What's in a Name?

    From the minute Dan Luck took over Modern Kitchen in 1989, the name of the company bothered him. The family-owned company had been around since 1963, and the moniker had limited it ever since. “It says modern and it says kitchen,” Luck says. “People would ask if we did entertainment centers and...

     
  • New Year Hues

    Industry experts at the Color Marketing Group have selected the color palette for homes in 2005 — colors that “convey a respectful, serious nature, yet touch the soul.” CMG's color professionals noted that the “spa” experience adds a spiritual nature to color and refreshes, rejuvenates, and...

     
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    Kitchen and Bath Market

    Kitchen remodeling is expected to increase by 9.8% in 2004, to a total of $10.57 billion. High-end kitchen remodeling (more than $15,000) will drop slightly to 118,796 jobs, but spending on those jobs will increase to $4.09 billion.

     
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    Dual Heat

    Remodeler Byron Ledworowski installed a combination radiator/towel warmer to bring heat and comfort to a client's kitchen. The owner of Li'L American Builders, Middleton, Wis., was originally going to use radiant floor heat, but the floor construction would have made it a complicated task. His HVAC...

     
  • End of the Selling Cycle

    We've covered prospecting, the initial contact, qualifying the client, the presentation, and meeting objections and concern. The final two steps of the seven-step selling cycle are closing the sale and referrals.

     

Spec Book

Replacement

Decks

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    Pre-Fab Deck Railings

    In the past decade, a wide variety of residential deck railing systems have entered the market, replacing site-made wood components with PVC, polyurethane, stainless steel, aluminum, cable, and glass. Nearly all of the makers of composite decking, including CertainTeed, CorrectDeck...

     

Siding

  • Goal Tending

    (1) How much is your average contract? (2) How many selling days are there in the month? How many of those days will you be working? (3) What's your closing ratio? How many folks do you need to see to sell a job? (4) How many prospects can you see in a day? A week?

     
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    This Old Vinyl

    Old vinyl or aluminum exteriors aren't like wood-based cladding, which can be completely restored with some energetic scraping or conscientious paint stripping, followed by a top-notch paint job.

     

Products

Trends

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    Not “Plain Gray”

    Regarded as the fastest-growing segment of the concrete industry, decorative concrete now is making its way into projects of all sizes and budgets as color and texture experimentation has revived interest in the category. Once only found in high-end homes, colorful concrete can be molded into any...

     
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    Across the Universe

    Baby boomers spend more money on remodeling projects than any other segment of the population, according to a report by Harvard University's Remodeling Futures Program. Adding universal design features, however, is usually not on their agenda, nor do many remodelers think of it as a priority.

     
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    Propane Power

    Could propane be the saving grace for homeowners who want to save energy and money? “Heating water is about 20% [of a home's] annual energy cost. Switching to propane or gas can save homeowners money,” says Jim Hitzemann, chairman of the Propane Education & Research Council's Homebuilder...

     
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    Sealed with a SIP

    The race toward the energy-efficient home is on, and it looks like SIPs are gaining ground. Structural insulated panels consist of an expanded polystyrene core sandwiched between two OSB panels. According to a survey conducted by the Structural Insulated Panel Association (SIPA), 12,000 mostly...

     
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    First-Class Fiberglass

    When it comes to remodeling an entryway, it's unlikely that a homeowner will want to replace an old wood door with a new wood door. According to research conducted by Therma-Tru, wood doors are replaced by steel or fiberglass doors 58% of the time. Of those who chose a fiberglass replacement, 62%...

     

Reader's Choice

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    Reader's Choice: Glossed Over

    Stephen Ortado of Historic Structures specializes in restoration projects, so he's not looking for quick and easy when it comes to products. Case in point: He uses a paint that most contractors wouldn't touch. He first discovered Dutchlac Paints in a wooden boat magazine 12 years ago when he was a...

     
  • Reader's Choice: That's Personal

    Being able to offer clients something your competitors can't is a real coup. That's part of what made Todd Jackson take notice when he first heard about My Design Build Project. MBDP is a Web-based service that allows a remodeler to provide individual Web sites for their clients, giving them access...

     

On the Job

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    Subtle Soffit Vents

    We pay as much attention to the quality of our exterior trim as we do the interior trim on the upscale houses we build, so we don't want to see ugly strip vents or round metal button vents messing up the soffits. Instead, we've come up with a nice-looking detail that provides plenty of roof...

     

In Focus

First Look

Other Articles

  • The Measuring Stick

     
  • Measuring Managers and Employees

    Whether you're starting to think about regular employee performance reviews or want to revamp a casual process with something more formal,

     
  • Best Estimates

    Sound estimating is the backbone of any remodeling business, whether you bid competitively or negotiate a design/build contract. We spend a lot of time benchmarking financial standards and processes; estimating deserves equal attention.

     
  • By the Numbers

    It's been three years since we published an index of Benchmarks. This updated version is organized by topic and includes dates for any Benchmark column that discusses the topic.

     
 
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