Table of Contents November 2005

FEATURES

• Following the remodeling rules

  Remodeling is by its very nature a contentious process. But there is no magic bullet to protect against run-ins with customers or, worse, with their lawyers. The best protection, many remodelers agree, is as simple as establishing the rules and then making sure everyone follows them.

   
• 

  Top employees set standards

  Each of these employees has been given a certain amount of autonomy by the company owner; each has backup and support from colleagues; each has had training and experience in his or her field, which can be passed on to others; and each buys into the company's culture and vision.

   

Before and After

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  Urbieta Construction is a Dayton success story

  Juan and Carmen Urbieta share a successful remodeling company and a persistent, ambitious and, so far, elusive dream: that the best is yet to come for the Huffman Historic Area of Dayton, Ohio.

   

Cost vs. Value Report

• 2005 Cost vs. Value Report

  What’s the payback for remodeling? Our annual report compares construction cost with resale value in 60 markets.

   

• Replace Windows

   

• Two-Story Addition

   

• Sunroom Addition

   

• Replace Siding

   

• Replace Roof

   

• Master Suite Addition

   

• Major Kitchen Remodel

   

• Minor Kitchen Remodel

   

• Home Office Remodel

   

• Family Room Addition

   

• Deck Addition

   

• Bathroom Remodel

   

• Bathroom Addition

   

• Attic Bedroom Remodel

   

• Basement Remodel

   

VIEW POINT

FIRST WORD

• Putting the wisdom of crowds to use

  Every time you use the search engine Google, you're putting the wisdom of crowds to use. Google's proprietary algorithm surveys Web links and treats every link as a kind of “vote.” It gives more weight to linking pages that are themselves important by virtue of the number of “votes” they get, then...

   

IN PERSON

• Next Time Around

   

• Review of 2005 Remodeling Show

  At this year's Remodeling Show in mid-October, thousands of remodelers from around the country gathered in Baltimore to take part in seminars and certification programs, network with others in the industry, and check out the hundreds of companies demonstrating and discussing their products on the...

   

News + Notes

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  Carpentry With Heart

  Carpenters are a complex breed. Most have — or quickly develop — a tough outer image, the better to blend into the locker-room atmosphere found on most jobsites. But beneath that shell, you'll often find the softer side of men who become attached to the materials they use, who care deeply about the...

   
• 

  Hurricane exposes construction shortcuts

  Houses one-mile inland escaped the devastation of Katrina's storm surge, but they still faced an invisible enemy — wind. Where the waves stopped, the wind continued.

   

• American College of the Building Arts

  Those lamenting the death of the American craftsman will be heartened to hear of the opening of the American College of the Building Arts (ACBA).

   

MARKET WATCH

• Figure This

   

• Uncover the pattern in your market

  Economic indicators such as housing starts, employment rates, and new home sales are often recommended as a tool that contractors can use to predict future business. But there are no hard and fast rules that say how growth or stagnation in these areas will affect the remodeling industry. Without a...

   
• 

  Back on the Bright Side

  After a substantial drop last quarter, residential remodeling and repairs made a nice recovery, according to the latest release of the Remodeling Activity Indicator (RAI).

   

COMMENTARY

GUEST COLUMNIST

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  Teach and Ye Shall Learn

  I started Lauten Construction in 1987, and it has grown steadily into a high-end remodeling company. By industry standards, we have a lot of employees — 20 — for our gross volume, just over $2 million in 2005. I suppose this is at least partly because I enjoy seeing and being involved in the...

   

LINDA CASE

• Creating a healthy company atmosphere

  When you started your business, hiring another employee was a huge step. But you added a carpenter to free you up to sell jobs, order materials, and do the bookkeeping, such as it was. Over the years, you made your daughter-in-law your bookkeeper, your son your salesperson, and you made that first...

   

MARK RICHARDSON

• How to grow your business

  If you ask a remodeler -- or any businessperson, really -- if he or she would like business to grow without having to spend a fortune on more marketing, few will decline. The real question isn't whether or not to grow your business, it's how to do it.

   

YOUR BUSINESS

Sales and Marketing

• Understanding the prospect's needs

  Salespeople often attempt to prescribe the solution to a prospect's needs before really understanding those needs. For example, a prospect says they want a bigger, brighter, more modern kitchen. Your inclination is to discuss the job from the physical perspective — how big it could be, what...

   

• Producting a successful newsletter

  A quality newsletter, sent regularly, is one of the best ways to present yourself as a trusted professional. It helps you develop and maintain relationships, say thanks for referrals, make announcements, publish testimonials, and notify clients of home tours. Three elements make a successful...

   

• Web site critique for Bridge Street Building & Design

  A strong marketing program consists of many elements that deliver a consistent message. Ruth Lozner, an associate professor of design and marketing at the University of Maryland, reviews Bridge Street's Web site.

   

BOTTOM LINE

• Learn financial discipline

  New York law requires that contractors place deposits in an escrow account, but Nash says that it's a good idea for any remodeler. He places deposits for jobs in a separate account: “Any deposit we get can only go toward the expenses for that job,” he says. “Don't put that into your working...

   

• Pulling out of a financial hole

  In 1999, Stephen L. Nash of Upscale Remodeling in Freeville, N.Y., began taking his eight-year-old company to the next level. He moved from his home office into a rented space and hired two salespeople and an office manager.

   

BY DESIGN

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  A Good Mixer

  Designer and remodeler Fu-Tung Cheng wouldn't quibble with the use of Corian, granite, or Silestone in a kitchen, but he's wary of the way the kitchen and bath industry has stuck to those materials to drive design.

   

FIELD NOTES

• Completing the punch list

  What makes a great client grumpy? The never-ending punch list. Remodelers tend to think that the problem is the client who keeps adding to the list. I believe the problem is usually us. By never really completing the punch list, remodelers create distrust.

   

• Day laborers pose opportunity, challenge

  Remodelers around the country are wrestling with a dilemma that could be either an answer to their labor woes or a potential employment nightmare: day laborers. Many contractors see these workers, who gather on sidewalks and street corners to solicit jobs from passers-by, as an inexpensive and...

   

Tech at Work

• 

  Working With Digital Images

  For remodelers, digital photography has less to do with cameras and more to do with communication. Using a digital camera and the Internet, issues that used to take days or weeks to resolve with meetings and site visits can now be handled in minutes.

   

Ways + Means

• How to monitor your employees

  Many small-business owners feel that they shouldn't have to “baby-sit” their employees. After all, the people that have been hired are all professionals. They know what has to be done. They don't need monitoring. Is this a realistic or an effective point of view?

   

• Keep warranty in compliance with federal law

  It can be easy to get into problems if your warranty is not in compliance with federal law — even if you are fulfilling customer claims.

   

• Imparting culture at Talmadge Construction

  To impart company culture to everyone at Talmadge Construction, Aptos, Calif., owner Jeff Talmadge came up with what he calls “Quiet C,” a concept that he believes differentiates his company from others.

   

• Keep eye on insurance requirements

  The insurance/risk management industry, like nature, abhors a void. If someone's not insured, the industry will find a way to fill that hole.

   

BIG50

CLOSE UP

• 

  Interview with Robin and Michael Muscardini

  After 27 years in business, Robyn and Michael Muscardini (Big50 1991) decided to sell their Oakland, Calif., company, Creative Spaces, to Dan Cohen, an employee who has been with the company since its start. The couple now resides in Sonoma and devotes time to other interests.

   
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  Profile of John McCloskey of J. Francis Co.

  Sky-high housing prices have pushed home ownership beyond the reach of millions of workers, including many in the remodeling field. “These people are in the business of renovating all day long,” says John McCloskey (Big50 2005), who owns J. Francis Co., Pittsburgh. “For them not to own their house...

   

FACE OFF

• To reward clients for referrals or not

   

SOLUTIONS

• Dealing with difficult clients

  How do you deal with difficult clients?

   

KITCHEN AND BATH

DESIGN CLINIC

• 

  Angled Solution

  When Konstantin Romenskii's clients approached him to remodel two adjacent bathrooms, they were thinking of just updating the finishes. But once his crew had demolished both rooms, Romenskii had an inspiration: If he redesigned the floor plan and added an angled wall between the rooms, he could add...

   

SPEC BOOK

• 

  Bath Lighting

  Fashion meets function in this season's array of bath lighting options. Matching fixture finishes is no longer a problem with the variety of nickels, steels, pewters, and bronzes available. Unique glass designs can add pizzazz to a new bath.

   

Management

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  Exclusive showroom by referral only

  A New York supplier is responding to the demand for kitchen and bath products and design with a sleek, expansive showroom.

   
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  A showroom to grab attention

  When remodeler Tracey Bail began to renovate a building for his new showroom, he knew he wanted something that would grab the attention of passersby and instantly communicate the work of Bail Home Services & Construction.

   

REPLACEMENT

ROOFING

• 

  Beware what lies beneath the roof

  Every re-roof requires a close inspection of the substrate. Incidental roof leaks, particularly ones that go unnoticed, can delaminate plywood sheathing or cause OSB to swell. The worst cases result in patches of rot.

   

Windows

• 

  Preserving Old Windows

  In an old house with single-glass panes in rattling wooden sash, there's usually just one obvious choice —replace these sad sash windows with secure, tight, energy-efficient units that have operable screens, tilt-out options for cleaning, and maintenance-free exteriors.

   

PRODUCTS

IN FOCUS

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  New wall products

   
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  Rough Hardware

   
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  New tool products

  Tools just keep getting better. Power tools are making the most of technology, while hand tools are employing user-friendly ergonomic designs. Here are some of the latest and best.

   

TRENDS

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  Faucet makers add filtering systems

  It's easy enough to get filtered or purified water these days. If you don't want to deal with a bottled water service, you can buy pitchers that will filter your tap water, or go one step further and add a purification system to your faucets.

   
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  Products incorporate anti-bacterial properties

  Germ paranoia among consumers seems to have reached an all-time high. That makes the home-improvement market a perfect breeding ground for products that promise to shield homeowners from ever-present microbes.

   
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  Glass designs boost décor

  Decorative windows and art glass are bringing a new sparkle to the window industry.

   

LAST WORD

Bench Mark

• Calculate economic scenarios

  With all the uncertainty about the economy, now is the perfect time to play “What if” with your business.