Table of Contents January 2008

FEATURES

• What Remodelers Need To Know About Their General Liability Insurance Policy

  Your general liability insurance policy may cover less than you think. Don't be caught off-guard.

   
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  Remodelers Worry Where They'll Find Workers

  Hundreds of thousands of construction jobs will be created in the U.S. during the next several years. Many remodelers are beginning to wonder whether they'll be able to fill even a few of those positions with the kinds of employees they feel comfortable sending into clients' homes.

   

• Web Extra: Compelling Online Recruiting

  Click here to see the language used in the craigslist ad that Spectacular Home Remodeling used to hire apprentice carpenter Jenna Miller. Scroll down for more examples.

   

• Training Program Gets Apprentices Up To Speed

  A well-planned training program gets apprentices up to speed.

   

• How Will Remodelers Find the Next Generation of Workers?

  We'll address finite solutions to the remodeling workforce in the February issue of REMODELING. In the meantime, we asked some of our sources to think big. Here's some of what they had to say.

   

Reader Panel

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  Survey on liability insurance trends

  The results of this month’s Reader Panel survey show some encouraging trends in the industry with regard to liability insurance: 96% of respondents reported carrying some type of commercial liability insurance. Among these, virtually all reported carrying a general liability policy.

   

VIEW POINT

FIRST WORD

• Strategies For Staying In Business During Difficult Times

  That sound you hear is home prices falling. Even in places where prices are holding or still rising, homeowners are acting as if they were falling. Here's what you can do to stay afloat.

   

News + Notes

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  New Worker Classification Laws in Illinois, New Jersey

  Recent legislation in Illinois and New Jersey places new emphasis on proper classification of construction employees in those states. The impact of these new laws on remodelers could be as major as a complete restructuring for some companies, and as minor as a clerical inconvenience for others.

   

MARKET WATCH

• Local Forecast: Controlling Cash Flow With Communication

  John Hanson says he doesn't necessarily ascribe Hanson General Contracting's recent cash flow problems to an economic slowdown, but it's a decent bet that the two are related.

   
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  LIRA Foretells Further Slowdown

  The Leading Indicator for Remodeling Activity (LIRA) echoes what many have already predicted: The industry slowdown will continue well into 2008.

   

COMMENTARY

GUEST COLUMNIST

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  Advice for Hiring the Right Person the First Time

  Wouldn't you agree that hiring staff is somewhat like buying a good bottle of wine?

   

LINDA CASE

• Resilient Michigan Remodelers Survive Market Plunge

  The remodeling economy in most of the country is sluggish and weak. Remodelers are working harder for less. Successful years are still possible, but only for those who plan carefully and work their plan.

   

MARK RICHARDSON

• How To Fine Tune Your Marketing Strategy

  Are your marketing costs rising while your number of leads is falling? If so, you are not alone. Some of the biggest, most successful companies in the industry are struggling with this issue.

   

SHAWN MCCADDEN

• Employees Need to Learn to Solve and Prevent Problems

  There's a little bit of the Lone Ranger in every remodeling entrepreneur. Enable your team to solve and prevent problems, so you can ride off into the sunset.

   

YOUR BUSINESS

Sales and Marketing

• Having a Marketing Meeting

  While it's common to hold staff meetings to discuss sales, new company policies, or updates on jobs, few remodelers are scheduling one type of meeting that is guaranteed to bring in more business: the marketing meeting.

   
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  Market With Great Photos

  It's no secret that good photographs of your work can serve as an excellent marketing tool. Whether you use the photos for advertising, brochures, or a portfolio, quality photographs can do much of the selling for you.

   

BOTTOM LINE

• Product Selection Schedules Prevent Costly Delays

  The best way to handle project selections — and the price you charge for them — is to have all the products chosen prior to the start of the job.

   

• 2008 Mileage Rate

  The Internal Revenue Service offers updated optional standard mileage rates, used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

   

• Q+A: Do You Negotiate Discounts with Dealers?

  I like telling my clients that when they go into one of my suggested sales centers, they will be given my price. However, I pass my dealer discounts on to them. I want them to see the prices I'm paying for their goods.

   

BY DESIGN

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  Take Care When Vaulting Ceilings and Adding Dormers

  When remodeling an old house, what can be more tempting than to vault the ceilings or add a large dormer? The attic joists don't seem to be doing much.

   

FIELD NOTES

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  Remodeling Companies Work More Efficiently By Keeping A Close Eye On The Schedule

  With the remodeling market slowing down, one remodeling company is running leaner by focusing on being more efficient.

   
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  Reward Carpenters for Craftsmanship

  Once the punch list is complete, many carpenters walk away from their projects with little more than memories. Some remodelers, however, are giving more glory to their craftspeople, boosting morale and recognition in the process.

   

GOOD FORM

• Room Addition Job Checklist Makes Site Visits More Efficient

  It seemed that after every jobsite visit, some piece of information crucial to accurate, timely estimating was, inevitably, forgotten.

   

Tech at Work

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  Microsoft Office 2007 Delivers

  Why shell out $150 to $700 per seat for Microsoft Office 2007 when there are a bunch of free “productivity suites” already available? For starters, it's the best “office system” there is. I've been using Office 2007 for six months and feel I've barely scratched the surface of what's possible with...

   

• Streaming Video Gives Remodeler An Edge

  When Steve Gray, of Steve Gray Renovations, in Indianapolis, went into business two-and-a-half years ago, he was looking for a way to differentiate his company from the competition. He began by establishing a presence where few remodelers in his area had: the Web.

   

Ways + Means

• People + Skills: Group Effort

  Jeff Titus, president of Titus Built in Wilton, Conn., had two key positions to fill: office manager and production manager. He knew the importance of hiring right and was determined not to rush the process. But he also knew that if he followed the traditional route, he'd have to invest a lot of...

   

• Watch Out for Telemarketing Fines

  In November 2007, the Federal Trade Commission (FTC) reported a sweeping crackdown on several large companies accused of violating the requirements of the National Do Not Call (DNC) Registry, resulting in six settlements collectively imposing nearly $7.7 million in civil penalties.

   

• Get All the Information You Need

  Good ideas are often born when one person shouts, “Enough!”

   

• Hitting a Big Financial Mark

  Four years ago, Ocean Breeze Awnings and More in Surfside Beach, S.C., hit the $1 million gross revenue mark for the first time. CEO David Powers wanted to find out which neighborhoods were spending the most money with the company, so he studied his data.

   

• Mission: Not Impossible

  Walt Disney Co.'s mission statement is “To make people happy.” Wal-Mart's is “To give ordinary folk the chance to buy the same thing as rich people.” Reaching this level of deceptively simple prose requires time and energy. But in the end, the words become both rudder and anchor.

   

BIG50

CLOSE UP

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  Profile: Kelvin and Susan Pierce

  Three years ago, Kelvin and Susan Pierce (Big50 1993), owners of Commonwealth Home Remodelers, in Vienna, Va., decided to hire a full-time estimator for the company.

   

SECOND LOOK

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  Second Look: Patrick Crowley

  For 18 years, Patrick Crowley (Big50 1994) has remodeled medical offices. Crowley Medical Office Interiors in Johnston, R.I., offers design, construction, and cabinetry, creating one-stop shopping for doctors and dentists. He now offers a franchise that taps this expertise.

   

SOLUTIONS

• Making Plans for a New Year

  A few of the BIG 50 answer questions about the new year.

   

KITCHEN AND BATH

DESIGN CLINIC

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  Innovative Dining Table Design

  As part of this kitchen remodel, project planner and designer Adrienne Morgan of Mosby Building Arts, in Kirkwood, Mo., designed a dining table with a lighted pedestal to provide the clients with a place to entertain and to display their collection of Lalique glass.

   
• 

  Out-Swinging Door Makes Small Powder Room Bigger

  Architect Doug Walter, contractor Tom Owens, and interior designer Kristi Dinner teamed up to modernize this tiny powder room. The key to gaining more space was replacing the in-swing door with an out-swing unit.

   
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  Small Powder Rooms Require Creative Storage Solutions

  Remodelers find ways to use every inch of usable space in small powder rooms.

   

SPEC BOOK

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  New Colors for Countertops

  Considering they'll be seen and used every day in the most high-traffic rooms of the home, selecting just the right countertop for a kitchen or bath can be a daunting task. But an array of new color introductions from several manufacturers helps increase the likelihood of clients finding their...

   

PRODUCTS

FIRST LOOK

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  First Look: Faucets; Water Heater; Washer/Dryer; and more

  The Duet Steam washer and dryer pair naturally steams out stains, wrinkles, and odors in minutes without pre-treating or chemicals, according to the manufacturer.

   

IN FOCUS

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  In Focus: Interior Trim

  The maker brings its product line indoors with reversible vinyl wainscoting. Made entirely from high-strength PVC composite, the material is ideal for protecting halls and other high-traffic areas from wear and tear.

   
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  In Focus: Chief Architect, Master Builder, and other software.

  Specifically designed for residential and light-commercial construction, Chief Architect X1 helps enhance productivity and offers users photorealistic 2-D and 3-D plan views.

   
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  In Focus: Hardwood Flooring; Vinyl Flooring Tile; and more.

  Instead of carpet in the family room, tile in the kitchen, and hardwood in the den, many homeowners (especially those whose homes have open floor plans) are opting for expansive areas of a single flooring material. As such, choosing a floor that will pull together a large space without being...

   

TRENDS

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  Laminate flooring provides exotic looks with convincing construction.

  Homeowners used to have three options for laminate flooring: oak, light oak, or dark oak. But current top-selling products allow your clients to get rare, in-demand, or high-priced looks within their budget, says Milton Goodwin, Armstrong's general manager of laminate.

   
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  Fiberglass Doors Add Style to Entryways

  You won't see fiberglass doors on a run-way in Milan, but door manufacturers do take style seriously. Many homeowners are upgrading their entry systems with custom art-glass inserts, wood finishes, and other options. Fiberglass door manufacturers are capitalizing on that fact with choices galore.

   
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  Cabinets In Every Room of the House

  With builders and remodelers trying to create unique spaces that set their projects apart, cabinet manufacturers are adapting and are touting the flexibility of their products outside of the kitchen and bathroom.

   

LAST WORD

Bench Mark

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  Calculating Revenue

  What was your total revenue last year? It's a simple question, but you'd be surprised how different the answers can be. To establish meaningful benchmarks it's important to always compare apples to apples — or at least red apples to green apples instead of some other fruit. That means agreeing on...