FEATURES

  • Ideas for low-cost marketing and advertising strategies

    According to experts, how much to spend on advertising can range from 2% to 16% of gross revenue depending on where you put your dollars — print, yard signs, Internet, TV. Knowing where to advertise means knowing which market to target, what differentiates your company from another, and what type...

     
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    2007 Business Benchmarking Survey

    How do remodelers measure their companies' financial performance? A relative few belong to peer groups that allow them to compare their numbers to those of similarly situated companies around the country. Others have more informal relationships with colleagues who trade information over a phone...

     
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    After the Fall

    Familiarity breeds confidence, sometimes to a fault, and it was 40 years and tens of thousands of incident-free cuts, into his career that one of Tim Sweeney's most seasoned, carpenters ran his thumb through a table saw.

     
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    Remodel for Change

    Flexible design comes from the understanding that homes outlast lifestyles. Family configurations change. Technology changes. “Things that suit our lifestyle today may not suit it 15 years or 150 years from now,” says Fernando Pagés Ruiz, owner of Brighton Construction in Lincoln, Neb., who...

     
  • Cathedral Builder Web Extra: John Abrams, In His Own Words

    Experience meets inspiration in the form of John Abrams, of South Mountain Company - a $7.5 million design/build firm in Martha's Vineyard, Mass. - and winner of the inaugural Fred Case Remodeling Entrepreneur of the Year Award. The qualities that won him that accolade are well on display in his...

     

Before and After

  • Before + After: Urban Renewal

    If houses were living things, this one would breathe a sigh of relief, with its new front porch extended as a thankful handshake. Downtrodden and neglected in its most recent history, its rooms cut up for office space and storage, the 1909 bungalow at the edge of a downtown Orlando historic...

     

Reader Panel

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    Survey on jobsite safety

    With all the challenges remodelers face running their businesses, it’s easy to take for granted those parts of the business that seem to take care of themselves. Jobsite safety is one such issue that is commonly overlooked — especially when your field crews are experienced and trusted members of...

     
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    Working With Professional Designers

    It's no secret that remodelers and architects have endured a historically adversarial relationship.

     

SPECIAL SECTION

Green Remodeling

  • Recycling opportunities are growing

    After a recent demolition, though, the remodeler found himself with huge steel girders and other scrap metal that he knew he had no use for. He called 20 different people to offer it for free, before he found someone willing to salvage it.

     
  • Getting green into the field

    Change is never easy, especially when employees feel they're suddenly being asked to turn away from familiar practices.

     
  • Spread the green word

    Once you've challenged yourself to be the greenest remodeler you can be, the next challenge is: How do you sell efficient, sustainable projects to customers? To remodelers making a foray into this niche, we advise leaving the green-wash mentality at the door.

     
  • Green remodeling is going mainstream

    As This Old House producer Deborah Hood says, people no longer need view green as experimental or expensive. "We're learning that green is basically just good planning and smart building." And green remodelers echo that sentiment. They're as likely to use words such as "high-performance" when...

     

Financing

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    A low credit score need not disqualify your customers

    As property values fall nationwide and lenders put more scrutiny on borrowers, more of your customers may get turned down for financing from first-tier lenders such as Wells Fargo or Bank of America. But that doesn't have to put them out of the game. Second-tier, or “subprime,” lenders specialize...

     
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    Deferred interest promotions are a great way to increase sales

    Retailers such as The Home Depot and Best Buy have found deferred-interest “same-as-cash” credit promotions an effective way to increase sales. The store lets the customer walk away with the purchase for no money down, and agrees to not charge interest if they pay in full before an agreed-on...

     
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    In financing, no one size fits all

    Most contractors find that people who finance home improvements tend to spend more than those who pay cash. Contractors who understand the various types of credit products and know how to present them will be more likely to lead the customer to make the decision to finance.

     
  • Home Improvement Financing

    Special Section on offering financing: Offering financing might be just the thing to give you the edge over all of the other companies competing for homeowners' business.

     

VIEW POINT

FIRST WORD

  • Running a remodeling business is a discipline

    I try not to get preachy in this column. While I see it as part of my job to point out where you might try doing things better or a bit differently, at heart I am an advocate for remodelers. Having been one myself for 20 years, I know how hard your job can be. You've already got employees, subs...

     
  • Mixed Message

    This year marks the 20th anniversary of REMODELING's Cost vs. Value Report. It began as a way to help our readers answer two important questions on the minds of most remodeling customers: How much will my project cost, and will I get most of my money back if I have to sell?

     

IN PERSON

  • Remodeling show returns

    This year's Remodeling Show in Las Vegas promises to deliver once again, featuring new elements along with the kind of top-notch programming for which the Show has become known. Many old favorites return this year revamped to suit a quickly changing marketplace.

     

News + Notes

  • Energy efficiency gains ground

    Energy-efficient remodeling is definitely where the market is headed.

     
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    Responding to natural disasters

    Final tallies on the destruction due to October's wildfires in Southern California were not available as of press time, but estimates in early November ranged from 1,500 to 2,500 homes destroyed, with more than a half-million acres burned.

     
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    Dissecting the Market

    The third-quarter release of a key indicator reveals that remodeling activity was down by 1.4% over the most recent four-quarter period.

     

MARKET WATCH

  • Rate cut not cure for the flagging housing market

    The September 18 cut of a key interest rate should keep the trouble in the subprime lending market from dragging the economy into recession, but experts caution that it is not the cure for the flagging housing market.

     

COMMENTARY

GUEST COLUMNIST

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    Consider outsourcing bookkeeper

    As your business grows, you may find you need a full-time bookkeeper. But before you prepare to hire someone to take on the job, consider outsourcing this business function.

     

LINDA CASE

  • Fielding your remodeling team

    Most of us aspire to have one distinguished career. Few of us dream of having more than one. Julius Lowenberg was a stunningly successful coach before he started to build his equally impressive remodeling company in 1979. Today, even after selling his company, the Texas businessman can't seem to...

     
  • A Spirited Send-Off

    Many remodelers give clients some sort of holiday gift as a thank-you for business. Michael Spreckelmeier, owner of Progressive Builders, in Fort Myers, Fla., elevates this tradition to a higher level. His system builds upon company culture by having staff work together to customize gifts for...

     
  • Time to review your business practices

    With the start of every new year, your P&L goes back to zero. January 1 is always a clean slate, but 2008 looms as a particularly powerful incentive for reviewing your business practices, rethinking your assumptions, and evaluating your personnel. Here's how some remodelers I know plan to confront...

     

MARK RICHARDSON

  • Habits that breed success

    There are many factors that help define success--but there is one common denominator: successful remodelers develop habits that breed success.

     
  • Embracing green building

    These days, the buzz about "green" is evident everywhere. It is also appearing more frequently in the remodeling industry, but owners of remodeling businesses are still asking themselves how to embrace the subject and make it an integral part of their company culture.

     
  • Among many exceptional remodeling company owners, what makes one business leader stand out?

    It's easy to use the words “leadership” and “success” without thinking too much about them. When we speak or hear these words, we have a clear sense of what they mean. And, like the concept of “quality,” given examples of specific people or organizations, we can usually identify those who fit these...

     
  • Women in the trades are notable exceptions

    In remodeling, the stereotype of the male carpenter or tradesman persists. Women in the trades are notable exceptions, so much so that some remodeling companies draw attention to the fact that they have female crew members to demonstrate how progressive the company is.

     

SHAWN MCCADDEN

  • Relentless Hope

    Optimists by nature, most remodelers are also good, caring people — admirable traits that often, unfortunately, conflict with one another. Because we're optimists, we want things to work out, such as new hires and big projects. Because we care, we want to give the employee or the client plenty of...

     
  • Employees might surprise you with their solutions

    Fans of the old TV show M*A*S*H will remember Radar O'Reilly, the affable young corporal with an almost otherworldly ability to anticipate needs and provide answers before anyone even got around to asking.

     

YOUR BUSINESS

Sales and Marketing

  • Joining networking organizations

    In a business where good leads are critical, joining networking organizations is a no-brainer. But finding the right fit can be a challenge.

     
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    A name to reflect the company

    After years of operating under a particular company name, many remodelers find themselves at a crossroads. Perhaps the name no longer has the same ring it did a few decades ago, or the company has taken a new direction.

     
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    Open House as Marketing Tool

    After completing a whole-house renovation in an affluent area of north Arlington, Va., Sagatov Associates hosted an open house to share the beauty of the project and meet other potential clients in the area.

     
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    Researching Women's Purchasing Habits

    Earlier this year, Kleber and Associates Marketing and Communications, in collaboration with StandPoint Marketing Research, conducted research on the economic power women have acquired in recent years.

     
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    Marketing rules to conduct business by

    Although it has been in business since 1966, Kerzner Remodeling and Construction still faces stiff competition in the active Oconomowoc, Wis., remodeling market.

     

BOTTOM LINE

  • Good accountants can be helpful advisers

    For many remodelers, their accountant acts as a narrow-focused clerk. Good accountants, however, can be helpful advisers. With their specialized training, varied experience, and big-picture viewpoint, accountants make natural partners.

     
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    The 412(i) plan is a retirement investment option for small-business owners

    The 412(i) plan is a retirement investment option for small-business owners with a high, stable income who need to catch up on adding funds to their retirement savings.

     
  • Be sure that your price meets the client's idea of value

    Potential clients are always looking for the highest cost-versus-value ratio on their remodeling projects. You need to be sure that your price meets their idea of value. Include questions on your lead sheet that will help you evaluate a potential client's definition of value.

     
  • A remodeler reaches out for training grants

    Owner Richard Doyle and his staff of six at Bryce & Doyle, in Rochester, N.Y., have been learning how to improve the company — for free. Doyle found out about a state grant that provides businesses with training funding. “The idea is that if they help a business grow, that business will hire more...

     

BY DESIGN

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    Restorative Venture

    Bringing an old home into the 21st century is a delicate balance of preservation, renovation, and restoration. “Sometimes the original design is the best design, and restoration, rather than renovation, is the best design approach,” says Ruth Kantar of Sage Builders.

     
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    An ode to brick

    My favorite building material may be brick, but like many builders, I don't often have a chance to use it in a way that highlights its inherent qualities and potential. I need to work on that.

     

FIELD NOTES

  • Practices for shoring up morale

    The market slowdown has made job security a real concern for many remodeling professionals. If you foresee slowdowns, I suggest these practices for shoring up morale:

     
  • Bottoms Up

    Monthly production meetings at Basnett Design-Build-Remodel had a tendency to wander and to produce too few action items. So Jim Basnett and his production team at the Littleton, Mass., company, set a day and time, and created an agenda and a required attendance list.

     
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    Earn thousands more by selling small remodeling jobs

    Besides earning a salary for full-time production responsibilities, the two project managers at Kanon Group, in Towson, Md., can earn thousands more by selling small remodeling jobs that don't require a designer, including basements, bathrooms, and some kitchens.

     
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    Use “man lifts” for any work higher than a step ladder

    According to OSHA, ladders are the No. 1 cause of construction accidents. Having had my own accidents, injuring myself and marring the surfaces of homes, I have put away the ladders in favor of trailer-mounted portable “man lifts” for any work higher than a step ladder.

     
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    A simple bulletin-board system keeps all eyes on the ball

    Mission control at Mark IV Builders is the production board, a visual representation of all current projects, their supervisors, their schedules and status, and their current to-do items.

     

GOOD FORM

  • Meeting agenda for production team

    To keep monthly meetings on task, Basnett Design-Build-Remodel in Littleton, Mass., created this form based on suggestions from the project supervisors in the field.

     
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    Preparing in the event of a major storm

    After Hurricane Isabel ripped through the Virginia Peninsula in 2003, employees at R.A. Jones Inc. Building and Remodeling realized that they could do more to be prepared in the event of a major storm.

     

Tech at Work

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    Creating your own network database

    Creating your own network database doesn't have to be complicated or expensive. Thanks to Microsoft Office Groove 2007, a collaboration software program that comes with most Microsoft Office packages, creating shared workspaces and storing group-accessible documents is no longer just for the...

     
  • Using BuilderHelper.com, a Web-based construction management tool

    Before he began using BuilderHelper.com, a Web-based construction management tool, Cory Hogan admits that his company's scheduling process was “a mess.”

     

Ways + Means

  • Finding the right people

    One of the most difficult aspects of building a business is finding the right people. So when a slow marketplace threatens the need for layoffs, most savvy businesspeople fight it tooth and nail.

     
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    Avoid insurance premium mistakes

    Those workers' compensation and general liability insurance policies you're holding are really just estimates. Six months after they expire, an auditor will knock on your door looking to figure your actual premium amount. It's based on exposure or, for workers' comp, how many people you have on...

     
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    Helping clients envision how things will look

    About 10 years ago, Jay Riordan, owner of Dream Design Builders in San Diego, realized that while developing a design, he wasted a lot of time going back and forth between a client's home and the office. On one particularly difficult project with a slew of adjustments, he says, “We finally sat down...

     
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    Writing job descriptions

    When Dave Myers joined J. Francis Co. in Pittsburgh, the company had no job descriptions. “Everything was loosey-goosey,” he says. But after several peer review meetings, one group member told them to get serious or get out. “We were in business 14 years before we wrote our first job description,”...

     
  • People + Skills: Meetings Make it Stick

    It used to be that when Ben Morey, president of Morey Construction in Long Beach, Calif., wanted to share information with his staff, he'd do what many of us do: He'd write a memo.

     
  • Limits on telemarketing

    About 140 million phone numbers are listed on the National Do Not Call (DNC) registry, but confusion remains for telemarketers and consumers, particularly regarding cell phones. Here are the facts:

     
  • Keeping clients informed

    Homeowners sometimes complain that their remodeler didn't show up for days at a time and they didn't know why, or that they weren't aware of what they might need to do to facilitate the remodeling process. It all comes down to communication.

     
  • Working from home

    Michael Carey, owner of Carey Contracting Corp. in Iron Mountain, Mich., says, “We believe we're only here to make a living so we can live life. A solid family life is first.”

     
  • Former remodeling business owners make ideal employees

    When Michael Wilkinson owned a small remodeling company, he worked, he says, probably 15 hours a day “doing all the work in the field and in the evenings going out on estimates, seeing people, writing up contracts and bids. Eight years of that.”

     

BIG50

CLOSE UP

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    The Alexander Group found its “comfort zone”

    Ask most any remodeler about the long-term goals for his business and you'll be sure to find at least one common denominator: the desire to get the company to the point that it operates without the active participation of the owner. Alex Dean, of The Alexander Group, in Kensington, Md., is no...

     
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    Patrick Benkowski of Roadrunner Custom Remodeling

    Since trading the chilly winters of Milwaukee for the hot summers of Arizona, Patrick Benkowski has never looked back. The former owner of Custom Design Associates, and a Big50 in 1991, settled in the booming Phoenix market six years ago. “I loved the Midwest, and my family is back there, but I...

     

SECOND LOOK

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    Second Look: Paul and Nina Winans

    As exit strategies go, Paul and Nin Winans' was both specific and open-ended. In 1998, 20 years after founding Winans Construction in Oakland, Calif., "we agreed that by December 31, 2008, we would be out of the business," says Paul. This summer, well ahead of schedule, the couple sold the highly...

     
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    Second Look: Mark Labourdette

    When Mark Labourdette was named Big50 in 2001, his company, GGHR Inc., revolved around him. He thought there must be a better way to be in business, without being the business.

     

SOLUTIONS

KITCHEN AND BATH

DESIGN CLINIC

  • Raising awareness and expanding knowledge of universal design

    The Universal Design Alliance (UDA), in Suwanee, Ga., is a nonprofit group committed to raising awareness and expanding knowledge of universal design.

     
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    Envisioning the kitchen of the future

    The kitchen in Epcot at the Walt Disney World Innoventions pavilion envisions what the future kitchen will be like. The 100,000-square-foot pavilion at Walt Disney World Resort in Florida is an interactive environment providing hands-on exhibits.

     

SPEC BOOK

Management

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    Baby boomers represent a huge market opportunity

    In January 2006, the first wave of baby boomers turned 60. Over the next several years, some 75 million of that generation will reach or approach retirement age. For remodelers, this represents a huge market opportunity. Scott McCollum of McCollum Associates, in Dallas, and Bob Bell of Bell's...

     

REPLACEMENT

Windows

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    The trouble with historic windows

    Recreating the craftsmanship of the past is always a challenge for remodelers with clients who want to preserve the traditional feel of an older home. Windows are an especially tricky area. The look of historic windows can be critical to the character of an older home, but preserving or replicating...

     

SUSTAINABILITY

GREEN SPEAK

  • Green Home Tour Sets an Example

    The Green Built Parade of Homes features seven new houses with green elements that meet the guidelines established by Green Built North Texas.

     
  • Company becomes known for green building

    One of the first green projects done by Jackson Remodeling was driven by a client, who not only specified the products but also researched purchasing and installation and suggested trade contractors. That was in 2000. Now, the Seattle company is known for its green projects.

     
  • Benefits of bio-diesel

    After researching alternative fuels, Craig Kersemeier, president of K-tech Kleening, in Schofield, Wis., chose to switch from diesel to soy-based diesel. He chose this fuel because it does not require any engine conversions.

     
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    Tool Runner

    A few years ago, Travis Semmes worked for a company building houses in remote locations on the coast of central California. The crews had to use fuel generators to power their tools.

     

GREEN SPEC

PRODUCTS

FIRST LOOK

IN FOCUS

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    The latest in trucks & accessories

    The latest in trucks & accessories.

     
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    In Focus: Safety Equipment

    A few featured items in safety equipment.

     
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    In Focus: Rough Hardware

    Nails, blades, and foundation products.

     
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    Gypsum, Backerboard, & Underlayments

    Manufactured with the maker's TemShield mold-protection system, ComfortGuard interior gypsum board features a mold- and water-resistant core and facers, independently tested against ASTM mold-resistance standards.

     
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    Holiday Gift Guide: Treats, Toys, Messenger Bag, and more

    As you get ready to close the books on 2007, take the opportunity to thank your staff and clients for another successful year in business. For the crewmembers who went above and beyond, or the homeowners who made you happy to head to the jobsite each day, check out these holiday-season gift...

     
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    Professional fastening tools are essential

    After homeowners choose the finishes and fixtures they want for their updated homes, it's up to remodelers to make the vision a reality. Having a set of professional fastening tools is essential. And, of course, we can't overlook the importance of saws in the construction equation. From slicing to...

     

TRENDS

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    Light Tech

    As more manufacturers offer lower-priced lighting-control products, builders and remodelers have the opportunity to make system packages an option or upgrade to their designs. According to the Consumer Electronics Association, 57% of home builders offered automated lighting controls in 2006, up an...

     
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    Small Gets Big

    Thanks to battery technology advancements, cordless tools pack more power, and new improvements are driving them to become more compact, as well. “The actual motor performance is getting better, and we have the ability to deliver more power out of a smaller motor,” says Shane Moll, Milwaukee's vice...

     
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    Strong Side

    Though vinyl remains the least expensive and most used siding, fiber-cement continues to make strides in the market. Known for its higher-end appearance, durability, and green qualities, fiber-cement is expected to lead siding in growth through 2008, reaching almost 14 million squares, according to...

     
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    Considering appliance color options

    Avocado green may be out, but homeowners are again considering appliance color options far beyond “biscuit.”

     
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    Urinals provide a water-saving opportunity

    Many men are reclaiming their homes' dens, garages, and basements as “man caves” where testosterone rules. And what fixture is better suited to defining the man cave than the urinal?

     
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    Flexible design keeps homes functional

    Remodeling is a sign that a home isn't meeting its owners' current needs. But, that doesn't mean the design update ends when those particular needs are met.

     

LAST WORD

Bench Mark

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    Under normal circumstances, overtime costs about the same as straight time

    When employees work overtime, you are obliged to pay them time-and-a-half. That sounds expensive, but OT hours don't really cost 50% more than regular hours. In fact, under normal circumstances, overtime costs about the same as straight time.

     
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    Protect the Net

    Remodelers around the country are finding the current economic climate difficult at best; most are scrambling to find ways to maintain what they had previously thought was secure — their net profit.

     

OTHER ARTICLES

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    National and international teams create zero-energy houses

    Twenty college and university teams entered zero-energy houses in the Solar Decathlon held in October, in Washington, D.C. The houses were evaluated in 10 categories including architecture, engineering, livability, heating and cooling, water heating, and powering lights and appliances.

     
  • In Remodeling "Town Hall," Remodelers Share Challenges

    How do you control costs in a down market, or when job costs run over budget? What's the hardest part about growing your company? How do you motivate production staff? What's your opinion of cost-plus pricing? In a "town hall meeting" for remodelers, the owners of three successful but very...

     
  • The Remodeler's Two Roles

    The difference between you and your clients is smaller than you might think.