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?

     
  • Instant Respect

    Getting certified is hard work. Is it worth it?

     
  • Single-Line Success

    Adding a specialty business isn't for everyone, but it can be a real profit center.

     
  • Staying Power

    Employees are your greatest asset. What makes the best ones stick around?

     

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.

     
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    Diamond in the Rough

    A musician oversees every last detail of this whole-house remodel to create his own Graceland.

     

Cost vs. Value Report

  • Cost vs. Value Report 2006

    What's the payback for remodeling? Our annual report compares construction cost with resale value for 25 common remodeling projects in 60 U.S. markets.

     
  • New England Region

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

     
  • East North Central Region

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

     
  • West North Central Region

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

     
  • South Atlantic Region

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

     
  • East South Central Region

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

     
  • West South Central Region

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

     
  • Mountain Region

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

     
  • Pacific Region

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

     

Reader Panel

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    Reader Panel: Certifications

    Although the benefits of holding professional certifications seem obvious — they serve as effective marketing tools as well as a way of ensuring job quality, among other things — many remodelers have been slow to get certification for themselves and their employees.

     

SPECIAL SECTION

Financing

  • Home Improvement Financing: Resources

    Contacts for home improvement financing...

     
  • Loans of Your Own

    Not for everyone, in-house financing requires lots of cash, nerves of steel, and the ability to evaluate risk.

     
  • Money for Sale

    According to Bob Weickgenannt, president of Starcom Design/ Build in Columbia, Md., “If you want to give your customers the best service, you've got to have all the cards.” And, in the competitive remodeling market, your trump card may very well be your ability to offer financing.

     
  • Financing Q&A

    Does offering financing make a remodeler into a mortgage broker or a bank? Is there any investment risk? Lenders and remodelers answer these and other questions that are commonly asked by contractors contemplating offering financing.

     

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...

     
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    The Lowdown

    Published each November, our annual Cost vs. Value Report is among the most frequently cited research in the housing and real estate industries. It is also among the most widely misapplied, misquoted, and misunderstood research we undertake. Before the barrage begins again this year, I thought I...

     

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.

     
  • Internet Buzzkill

    Ever wonder what people are saying about your company? Visit the world of consumer-driven e-mail groups, Web sites, and community listservs that have become powerful arbiters of opinion about the companies to patronize — or to avoid.

     

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.

     
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    The Inevitable Slowdown

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

     
  • Figure This: Home Costs and Percentages

    Average price of a “typical middle-management home” (four bedrooms, 21/2 baths, family room, and two-car garage) in Minot, N.D., lowest of the 317 markets surveyed.

     
  • Local Forecast: Spec Invaders

    Bethesda, Md., remodeler Mark Scott has noticed the spec housing market dying in his area. The owner of Mark IV Builders — who got his start in commercial construction and moved into spec homes before switching over to remodeling —knows from experience that many of those builders will turn to home...

     
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    Cool Days Ahead

    The second-quarter report of the House Price Index (HPI) reveals another sign of a slowing housing market. Published by the Office of Federal Housing Enterprise Oversight (OFHEO), the report shows that house prices appreciated 1.17% — more than one percentage point lower than the previous quarter...

     

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.

     
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    Defining Culture

    For the past 18 months I have been able to step outside the system. I sold my company — Traditional Concepts, a high-end design/build firm on Chicago's North Shore —and have remained working as a sales consultant.

     

LINDA CASE

  • The Year Ahead

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

     
  • Shout It Out

    It's the annual planning season, and if you haven't created your 2007 business plan — or your business plan, period —I propose a fun, creative way to get started: brainstorming.

     

MARK RICHARDSON

  • Stress Test

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

     
  • Predicting Performance

    Making or losing money doesn't happen by accident. Results depend on how well you plan.

     

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.

     
  • Continuous Improvement

    We've all heard the adage, “If it ain't broke, don't fix it.” And how many times have you heard someone say, “It's good enough for now,” or “We don't have time to improve how we do it; we need to just get it done”?

     

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.

     
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    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.

     
  • The Safe Part of Green

    Demolition releases toxic residues, wood dust can be carcinogenic, and building materials often contain cancer-causing formaldehyde. Ready to get to work?

     
  • Shine On

    First impressions will always count, but final impressions are more likely to have an impact on referrals and repeat business.

     
  • Snapshot of Health

    A year-end tally form measures performance and spurs friendly competition.

     
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    Selling the Better Life

    Remodelers don't usually think of aging-in-place modifications as a chance to upsell, but Dan Bawden does. Earlier this year, his Houston-area company, Legal Eagle Contractors, opened The Idea Center: a home remodeled into an office/showroom equipped with aging-in-place innovations, from the front...

     
  • Jumping Off the Page

    When Gehman Custom Remodeling got a flattering writeup in the The Philadelphia Inquirer last year, president Dennis Gehman opted for a more animated alternative to conventional reprints.

     

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.

     
  • Competitive Edge

    About three years ago, Ray Gaines noticed that his company, Gaines Construction, in Easton, Conn., was only winning 50% of the projects it bid on. Then that figure dropped to 25%. Losing out on some sizable projects made him question his policies.

     
  • Growing Use of Health Savings Accounts

    A health savings account (HSA) helps individuals save for future medical and retiree health expenses on a tax-free basis.

     

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.

     
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    Universal Principles

    “It was good timing,” says Peggy Mackowski, since her husband and company co-owner David Mackowski was working on his CAPS (Certified Aging-in-Place Specialist) designation through the National Association of Home Builders.

     

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.

     
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    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.

     
  • Know Your Numbers

    One of the most dangerous characteristics remodelers seem to share is lack of familiarity with — if not outright apathy toward — their numbers.

     

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.

     
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    Welcome to Web 2.0

    Seemingly overnight, something remarkable has happened. The next generation of Web-based applications — Web 2.0 — has arrived. Many of these are useful for remodelers, and many are inexpensive or free.

     
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    Wireless Wonder

    He calls it his “crackberry” —that's how addicted Anthony Cucciniello is to his Black-Berry. He's never without it, and he has given the handheld wireless device to each of his project managers, lead carpenters, and office staff.

     

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.

     
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    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.

     
  • People + Skills: Partner Tips

    Growing up, brothers Joel and Neil Kristianson couldn't have been more different. “We were four years apart … enough to make sure that all we did was bug each other and fight,” Joel says. Yet, years later, they're in business together as owners of Crimson Design & Construction, Naperville, Ill. —...

     
  • In-Home Negotiations

    Always be careful with pricing models and the impact of discretionary price reductions. What you want is for Johnny Sales Representative and Bobby Sales Representative to each be able to visit Mrs. Jones separately, price the same job, and come up with the same price for that job (subject, of...

     
  • Better Building Through Science

    It's not rocket science, but it is a link between building science and diagnostic testing, says Walt Harwood of the new home-performance division he runs for Neil Kelly Designers/ Remodelers, in Portland, Ore. “We do it to create homes that are comfortable, durable, safe, and cost-effective.”

     
  • Finding Mature Workers

    AARP's Deborah Russell, director of workforce issues, and The Herman Group's workforce futurist Roger Herman offer these suggestions for hiring older workers.

     
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    Mature Hiring Practices

    Although the labor pool for the trades is tight, most remodeling companies wouldn't go looking for workers in the over–55 crowd. “But the maturity that comes with an older worker is particularly valuable in this field,” says Roger Herman, workforce futurist and CEO of The Herman Group. “In most...

     

BIG50

CLOSE UP

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    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.

     
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    Profile: Tony LaPelusa

    After 42 years in the northwest Chicago suburb of Niles, Ill., LaPelusa Home Improvement (Big50 1992) could lay claim to any chunk of the sprawling Chicagoland market. But the company's target audience is within a two-mile radius of its office and showroom.

     

FACE OFF

  • Face Off

    Do you use Internet lead-generating companies?

     

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...

     
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    Second Look: Garett Radke

    The year 1989 was significant for Garett Radke. He was named Big50, went through a divorce, and took a trip that would change his life. He was running a $500,000 design/build company with three employees when he went on vacation to the Caribbean island of Nevis.

     

SOLUTIONS

KITCHEN AND BATH

DESIGN CLINIC

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...

     
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    Bath Lighting: Mirror Lamps, Brushed Nickel Fixtures and Sconces

    Nickel finishes gain popularity for their cool styling and subtle complement to exposed plumbing.

     

Management

  • K+B Project Costs

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

     

REPLACEMENT

ROOFING

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    Sell Like a Pro

    Having a genuine love for people and being a good talker are excellent attributes to have when it comes to entering the sales profession. But that's just the start. Many folks share those attributes but fail miserably at selling.

     
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    Recycling the Roof

    Roof tear-offs account for an estimated 11 million tons or about 53 million cubic yards of landfill waste each year. And, according to the Environmental Protection Agency, asphalt shingles represent up to 10% of residential jobsite waste. These are all big enough figures to stimulate developing...

     

Windows

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.

     
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    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.)...

     
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    Gypsum, Backerboard, & Underlayment

    Products from National Gypsum, Carlisle Coatings and Waterproofing, Georgia-Pacific, and MP Global Products.

     
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    Tools: Saws, Pressure Washers, Chalk Reels, and more.

    Remodeling Magazine staff selects the best new tools. For effective jobsite clean-up in a small package, try the 2,200 psi Ultra Compact Pressure Washer (model HU80520), available exclusively at The Home Depot. The machine features a 11/8-inch tubular roll cage that protects the Q45 Briggs and...

     
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    Holiday Gift Guide: iPod Docking Stations, Catalogs, and Photo Players

    Products from Bosch, Panasonic, and World Vision.

     

TRENDS

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    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.

     
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    Rays the Roof

    Can reflective roofing materials help homeowners beat the heat?

     
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    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...

     
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    Toasty Toes

    Heat up your sales — and your clients — with radiant floor heating installations.

     
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    State of the Industry: WPCs

    Wood-plastic composites are steadily chipping away at the pressure-treated wood market.

     

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.

     
  • Endgame

    Are you preparing adequately to finance your future?