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Your Business

Your clients

Your team

Your projects

Getting into Groupon

Relationship-based
selling

Billing by skill

Ranch house
remodel

your toolbox for success

Energy
Stars
Doug Selbys Meadowlark
Builders is flourishing
despite the demise of
Home Star and hes
not alone

JUNE 2011 | www.remodelingmag.com

For contractors, its an ATM.

The Owens Corning AttiCat Expanding Blown-In Insulation System is a fast way to help contractors get more
revenue out of any home improvement project. Todays homeowner is looking for a quick, affordable way to save on
energy costs.* As an added incentive, the 2011 Tax Relief, Unemployment Insurance Reauthorization and Job Creation
Act (H.R. 4853) offers homeowners a federal tax credit for insulation. Now homeowners can claim up to a $500
tax credit.** Thats money in the bank for homeowners and for contractors who offer re-insulation.

Go to www.owenscorning.com/atticat or call 1- 877- 658- 6362


to find out more about this opportunity. Youll receive a FREE
introductory kit including a special offer on the purchase of
an AttiCat Insulation machine.
Go to http://remodeling.hotims.com for more info
*Savings vary. Find out why in the sellers fact sheet on R-values. Higher R-values mean greater insulating power. * * For qualified energy-efficiency improvements. The federal tax credit cap is now $500. Consult
your tax advisor or visit www.energystar.gov for more information. Printed in U.S.A. March 2011. THE PINK PANTHER & 19642011 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK
is a registered trademark of Owens Corning. 2011 Owens Corning.

Go to http://remodeling.hotims.com for more info

Your job becomes more difficult when you dont have the right tools. Thats why Ford offers the
widest range of work vehicles* on the road, to make sure you get the right one. Durability and
dependability are only two of the reasons why Ford is the leader in commercial trucks. With a
variety of different options, your truck is as customizable as it is capable. Drive up to the top
of the tool chain at ford.com/commercial-trucks.
*Based

on division offerings. Excludes SUVs and cars.

Go to http://remodeling.hotims.com for more info

De

dic

a t ed P r o S
e

rv

i
ce
Re
ps

el

ive

ry*

Na

Fr e e

Jo

S
b-

ite

tio

nw i d e R e a c h

A completely new
and better experience
created for

YOU
The BehrProSM program
is built around PRODUCT,
SERVICE, and SUPPORT
a commitment to the needs
of professionals just like you.

Pro d
uc
ts

th
at

Pe

r fo

rm

EXPERIENCE

To learn how the BehrPro program can help you grow your
business call 1-877-776-3961, stop by The Home Depot Pro Desk,
contact your local Behr Rep., or visit us online at behrpro.com/rm
* Where available

Go to http://remodeling.hotims.com for more info

J U N E 201 1
V O L U M E

2 7

N U M B E R

f e at u r e s

48 Inventive Incentives
Improving home energy
efficiency and your bottom line

60 Before + After
Deep Energy Retrot: A small
house sees dramatic savings

69 How-To:

Facebook
Basics for building a Facebook
business page

Your Business

26

Some remodelers get


geared up for Groupon

Your clients

33

Free gutter-cleaning
promotion draws clients

Beware: customers using


check endorsements

Using SEO to help clients


find you online

Tracking gross profit

Remodeler as home
asset manager

Tips for building a


thorough estimate

FirstWord
Dashboard

37

Lighting

Warming to the idea


of designing with CFLs
and LEDs
Home
Performance

81

Efficiency on a budget
Energy-efficient condo
remodel; pilot program to
help homeowners fund
energy-efficient upgrades

Summertime fun for


your employees

Your projects

43

Dramatic exterior facelift


of a 1960s ranch house
Opening up a basement
to realize its potential

The case for using


background checks to
pre-screen employees

The interactive whiteboard: handy client


communication and
design tool

Paying field crew a higher


trade rate for time spent
using specialty skills
The benefits of laptops
on the jobsite

K+B

78

Opinion

17 Linda Case
17 Shawn McCadden
18 Richard Steven
20 Michael Anschel
20 Victoria Downing
22 Rick Provost

Your team

The value of insisting


on quality work at a
fair price

Using Google forms to


gather customer data

7
13

60

Products

84
88

Siding & windows


Moisture
management

85

Last Word

96

Good Form

Energy saving
checklist

Cover photo: Fabrizio Costantini/Aurora Select

remodelingmag.com

| june 2011 | remodeling

Build your business ... Maximize your success ...

...With the right doors, the right tools, the right choice.
To do the job right and unlock your real sales potential, you need
the right tools. Thats why Therma-Tru offers you more than
beautiful, quality, energy-efcient doors. You can count on us
for a variety of innovative solutions that generate leads, increase
customer satisfaction, and open the door to greater sales.
Tools such as our custom marketing program, installation
training, and showroom displays are all aimed at helping you
grow your business. Therma-Tru. Built by pros for pros.
Go to http://remodeling.hotims.com for more info

Visit us at www.thermatru.com
for more information.
2011 Therma-Tru Corp. All rights reserved. Therma-Tru is a registered trademark of Fortune Brands, Inc.

Find more online @


remodelingmag.com

S A L A L FA N O

Getting Warmer
Acting as if energy costs are
what they surely will soon be
there are two reasons
to use sustainable materials and undertake energy
retrots. One is a cold, hard
energy-payback calculation;
the other is a warm, fuzzy
save-the-planet attitude.
Often the payback period is too long, so a
lot of homeowners opt out. And to many,
the second reason is wishy-washy and
completely ignores economic reality.
A recent dinner conversation turned
these arguments on their head. I was talking
with Eric Zencey, an old friend who for
30 years has been thinking and writing
about something called ecological economics. This small but growing school of
thought would replace modern infinite
planet economic theory with one that
acknowledges that an economy is not a
perpetual growth machine.
Im not an expert, but heres the gist of
it. An economy extracts matter and energy
out of the environment and discharges
waste matter and energy back into it. Some
of these resources wood, soil nutrients,
animal and plant life are renewable
and could be sustainably sourced. Others coal, gas, oil, copper are nite
and in diminishing supply. The goods and
services we create from these resources
dont reect the true costs of their production, largely because ecological costs are
ignored. That underpricing leads to poor
economic decisions.

To give a familiar analogy, imagine a


remodeler who doesnt include the cost of
his spouses labor as bookkeeper. The omission makes overhead seem lower than it
really is. As long as the spouse continues to
work for free, the system works, but when
that labor has to be replaced by hired help,
the true cost is revealed. Unless prices go
up, the business fails.
The solution for the remodeler is
simple: include the cost of a spouses labor
in overhead. (Include your own labor, too,
while youre at it.) On a much grander
scale, there are ecological costs to modern
life and commerce that go uncounted.
When we build a dam, we lose a trout
shery. When we cut a forest, we lose
erosion protection.
At one point, Eric said that whether all
costs are accounted for or not, a lot of us
try to act as if they were. And it struck me
that those warm and fuzzy customers who
want to save the planet are doing exactly
that. So are those who, with every piece of
paper they recycle, acknowledge the value
of the tree. They cant always articulate it,
but their behavior signals that they have
already started to create a new economy.
The fact that someday the oil will run out
should inform todays decisions about how
and what and where we build. Before it runs
out, we need to use less fossil energy to keep
warm and get from place to place, and more
to build a post-petroleum economy.
Right now, solar-energy looks pretty
good. The sun isnt innite, but its close:
estimates are that it will keep producing
energy for another 5 billion years.
Thats warm and fuzzy enough for me.

Use the http://go.hw.net shortcuts


anytime to find online resources
C u r r e n t ly o n l i n e

Facebook
Interact with the REMODELING editors
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KBIS in Video
Designers and remodelers talk
about the market and leading
trends, including green remodeling
and design for aging in place
http://www.youtube.com/
RemodelingMagazine

SURVEY

Remodeling 550
Complete the online survey to
become eligible for our annual list
of the industrys largest companies
http://go.hw.net/r-550

Sal Alfano, Editorial Director


salfano@hanleywood.com

remodelingmag.com

| june 2011 | remodeling

your toolbox for success

Sal Alfano
Pete Morelewicz
Ingrid Bush
Stacey Freed
Mark A. Newman
Nina Patel
Lauren Hunter
Rhonda Hughes
Allison Levy
Scott Moneypenny
Jim Cory

Editorial Director
salfano@hanleywood.com
Deputy Design Director
pmorelewicz@hanleywood.com
Managing Editor
ibush@hanleywood.com
Senior Editor
sfreed@hanleywood.com
Senior Editor
mnewman@hanleywood.com
Senior Editor
npatel@hanleywood.com
Associate Editor, Products
lhunter@hanleywood.com
Art Director
Assistant Art Director
Associate Web Editor
Contributing Editor

Contributors
Michael Anschel, D.S. Berenson, Rich Binsacca,
Bruce Case, Linda Case, Victoria Downing, Andy Hannan,
Shawn McCadden, Rick Provost, Richard Steven,
Joe Stoddard, Sarah Susanka
Cathy Underwood

INSTALL CONFIDENCE.
INSTALL RINNAI.
Every Rinnai Tankless Water Heater now comes with
the industry leading 5 year labor warranty* and a
high quality service valve kit included with purchase.
Just a few more reasons why dealers and
installers have made Rinnai #1.

Johanna Daproza
Daisril Richards
January Felder
Fred Weisskopf
Betty Kerwin
Paul Ruess
Ann Russell
Lois Landa
Colleen Sullivan
Amy Barcomb
Holly Miller
Megan McCloud
Rick Strachan
Ron Spink
Kim Heneghan

www.rinnai.us

*Warranty (some restrictions apply): Heat exchanger limited warranty 12 years residential; 3 years when used in certain
recirculating systems; 10 years when used with a Rinnai hydronic furnace; 5 years in commercial applications. All other
parts: 5 years. *Labor: 5 years residential and 2 years commercial for Luxury/Ultra models when registered within 30
days of installation, 1 year all other applications. For more warranty details, visit www.rinnai.us or call 1-800-621-9419.

Go to http://remodeling.hotims.com for more info

search.
source.
learn.
connect.
ebuild.
ebuild.com

ebuild is the destination for construction pros searching for information about
building products. ebuild is a source
of unbiased coverage of new products,
trends and news. Pros visit ebuild to
learn how to do their jobs faster, safer and
easier. ebuild connects pros to product
manufacturers, experts and peers.

a 360 degree view of product information

Director Production and


Production Technologies
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Circulation Promotions
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Remodeling
Group Publisher Residential
Remodeling
General Manager Online
Residential Remodeling

HANLEY WOOD BUSINESS MEDIA


Andrew Reid
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& Database Development
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Train With Us to Expand


a Homes Livable Space.

Propane is always at home in the backyard. It delivers clean and dependable energy to outdoor
kitchens; ame and lighting effects; and it brings pool and spa water to the desired temperature more
quickly and efciently than electricity does.
Learn all about it and earn CEU credits by taking our free NARI-, NAHB-, USGBC-, and AIA-approved
course, Innovations with Propane Gas for Outdoor Residential Use at buildwithpropane.com/training.

Go to http://remodeling.hotims.com for more info

your toolbox for success

Rick Strachan

Ron Spink

Kim Heneghan

Helene Slavin

Bob Collopy

Jamie Volpe

Kay Ross-Baker

Trow Meier

Ron Hewett

John Magner

Stuart Smith

ADVERTISING SALES OFFICES


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416.598.0101 ext. 220
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For a Media Kit: Janet Allen, jallen@hanleywood.com
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Cost vs. Value Report:
The 201011 Cost vs.
Value Report is available free of charge at
costvsvalue.com

Go to http://remodeling.hotims.com for more info

Crown Point Cabinetry


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Full design service for your clients.

Let Crown Point provide:

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800-999-4994 www.crown-point.com

Fine Quality Custom Cabinetry


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CALENDAR

ON THE EDGE

To learn more about the cuttingedge of energy efficiency in residential construction, attend the
Summer 2011 Residential Energy
Efficiency Technical Update Meeting presented by the U.S. Department of Energys Building America Program. The meeting will
be held Aug. 911, 2011, in Denver.
buildingamerica.gov/meetings.html

Cartoon: 2008 The New Yorker Collection from cartoonbank.com. All Rights Reserved

GET WIND OF THIS

The 2011 Remodeling Show, the


industrys premier national
event, will once again co-locate
with DeckExpo this Oct. 1215
at Chicagos McCormick Place.
Registration opens online in
mid-June.

What a PITI

Lenders dont factor in home energy efficiency


when offering mortgages, but that may change
INSTALL A $6,000 GRANITE countertop and your clients home value increases. But add $6,000 in mechanical upgrades and insulation, and
their appraisal wont go up a dollar.
That kind of thinking has led
Sen. Michael Bennet (D.-Colo.) to
craft legislation, being referred to
as the Sensible Accounting for
Valuing Energy (SAVE) Act, that
would require lenders to consider
energy savings as well as principal,
interest, taxes, and insurance
PITI+E when offering mortgages.
On a basic level, if you buy or
build a more energy-efficient home,
youd have more money to pay a
mortgage, says Ken Gear, executive director of Leading Builders of
America, which represents 18 of the
largest home builders in the country.
Gear and other supporters of the
bill such as the Alliance to Save
Energy, the U.S. Green Building
Council, the RESNET (Residential

Average U.S. Homeowner Costs


20072008
$2,340
$1,897

$822

Energy

Property Homeowners
tax
insurance

Institute for Market Transformation

Energy Services Network), and


the Institute for Market Transformation believe that a host of
problems could be solved if SAVE
comes to fruition: protect taxpayers from foreclosure; create jobs;
drive demand for energy-efficient
homes; and expand the accessibility and affordability of energyefficient homes.

remodelingshow.com/attendee/
show-information.aspx

A Clarification on Referrals
Regarding Good Word, pp. 7981
in the May issue, about rewarding clients for referrals, attorney
Richard Feeley of Feeley Mediation &
Business Law says: Before launching any reward or referral program,
make sure that such programs are
not prohibited by state or local
laws or regulations. E.g., in at least
nine states Ariz., Calif., Conn., Md.,
Mich., N.D., Pa., R.I., W.V. home improvement or home solicitation sale
statutes prohibit a seller (including
remodelers) from providing any sort

of compensation (including gifts) for


buyers who give the seller referrals
or who otherwise aid in making a
sale to another person.
Several states also limit the
value of any gift a contractor
might give a prospective buyer
as an inducement to purchase
goods and/or services. E.g., Calif. $5;
Md. $25; Mich. $2.50; Pa. $2.50. Thus,
it is imperative that the remodeler
assure that any reward program
is compliant with state and/or local
laws and regulations.

nuermuodjleil.gre

Want to know
how to earn the
proper return on
your projects?
Turn to page 27

| juju 2011 | nuermuodjl

13

Go to http://remodeling.hotims.com for more info

Aftermarket equipment shown. Properly secure all cargo.

Callbacks?
Forget about it.

I trust KILZ primer for my crew.

Ken LaFontaine Jr. - Crew Foreman


& Pro Painter for 20 years

Unhappy customers translate into headaches you dont need, and time
you dont have. Trust KILZ primers to deliver reliable results every
time. Whatever the challenge, there is a KILZ primer to handle it. Nasty
water stains, tannin bleed-through, weathered siding, bold colors
not a problem. You dont need callbacks. You need KILZ primers.

www.kilz.com
Go to http://remodeling.hotims.com for more info

L I N DA C A S E

Dramatic Arts
Rehearsal empowers your
sales performance

Photos: above, Mark Robert Halper; right, David Sharpe

jr, thitc budjl trr


aggressive!
No, if anything, hes
being too soft.
Ive just nished
facilitating two meetings
where we spent a halfday demonstrating and working on
how a contractor might handle certain
sales situations.
We role-played. A group member
would set up an issue he was having
difficulty with. Then hed play the
remodeler, and another member would
be the prospect or client.
Whether its how you answer the
phone, take a lead, ask a prospect to
move forward with the sale, or handle
an unhappy client, role-playing is a
great teaching tool that can be used
throughout your company. But it does
take getting used to.
LESSON LEARNED
Heres what I learned:
Theres nothing better than hearing
from others how they handle what
we stumble over. For instance, we
were asked to offer suggestions to
a remodeler who sells extremely
high-end projects to the wealthy.
Hed leave the rst meeting telling
prospects to call if they wanted to
proceed. We had to think about his
clients and his selling style. Still, we
were able to work through a scenario
that invites clients to take the next
step without feeling pushed.
It was clear that most of us have one
selling style while our buyers have a
number of different buying styles.
If we are highly detailed in our
selling, well appeal to the engineer
type but bore the creative and style|

oriented prospect. So it was interesting to hear from a table of remodelers (with differing buying styles) as
to what they would want to know
and hear. Somehow the seller has to
find clues as to how the prospect
wants to buy.
Some of the demonstrators were
somewhat weak on questioning. They
needed to learn to listen better for
cues that would tell them: what the
real motivation for the project was,
who the decision-maker was, what
budget range would satisfy, what
previous remodeling experience the
prospect had (with what outcome),
what factors (budget, design, remod-

eler reputation) would inuence the


decision, and when did the project
need to be signed (or designed) in
order to meet the prospects time
line. Theres so much the professional
remodeler must communicate to set
his company apart from run-of-mill
contractors that listening sometimes
takes a back seat.
Role-play and youll be surprised what
you learn and how fast you learn it.
Linda Case is founder of Remodelers
Advantage, a national company that
gives remodelers the tools to achieve
profitability and success. 301.490.5620;
linda@remodelersadvantage.com.

Read more
opinions at:
http://go.hw.
net/r-opinion

S H AW N M C C A D D E N

Integrating Technology
One way to magnify
efficiency
eija nuermuounc hivu
shared with me their
desire to bring technology into their businesses. Although they
are looking for specic
software and hardware
suggestions, their biggest concern is
making sure the implementation is successful. When I ask them how they will
measure success, most dont know how
to answer. Successfully implementing
technology requires proper planning.
Here are three key considerations:
1) Who will measure the success
of the implementation? Even if you
think everything is going or went ne
nuermuodjleil.gre

during implementation, your employees may not agree. Before starting,


meet and discuss expectations on
what the technology will do for the
business, the employees, and your customers. Discuss not only the benets
you expect but also the anticipated
challenges and concerns.
Doing this rst should help you
choose between available options and
address challenges at the beginning
not when you are in the middle of the
implementation. Also, discussing the
plans with your employees in advance
might help identify the naysayers
before they do any damage.
2) At what point in the process will
you set up the software? In my experience, most remodelers would not be
able to write out how they do business
continued on page 18
| juju 2011 | nuermuodjl

17

Shawn McCadden, continued

R I C H A R D ST E V E N

in a logical order or fully explain things


to a new hire. Because of this, setting
up software will be time-consuming
and may be frustrating as well because
the person setting it up may also be
learning the software at the same time.
I suggest that the owner or manager
learn and set up the program before
introducing it to employees. The
reason: Its likely that how you initially
set it up and use it will change over
time, requiring your employees to
relearn the program or gure it out
on their own. If you or your manager keep changing your mind about
how you will use the new software,
employees may lose condence in the
business and/or the technology.
3) Are you planning to fully or
partially automate your business?
Decide if you want one program that
will do everything or if you will use
multiple programs. If you can nd a
good solution, I recommend a single
program. Integrating independent
programs isnt easy, even with a staa
IT specialist. Plus, the more software
programs you use, the more often you
and your employees will repeatedly
have to enter the same information.
Also, decide if you are really ready
to automate your business. Real
automation not only moves manual
tasks to technology but also requires
that business is done in a specic
sequence; what I call a forced ow.
A predened forced ow maintains a more consistent and accurate
process for your business and staa. If
you have been using the just-get-itdone mentality, micromanaging the
activities of your employees and the
sequence of their actions, you may
not be ready for technology, particularly an all-inclusive single solution.

The Meet of the Matter

Shawn McCadden founded, operated, and sold a successful design/build


company. A co-founder of the Residential Design/Build Institute, Shawn now
speaks at industry events and consults
with remodeling companies. shawnm@
charter.net.

18

rejuneermo | dlme 2011 |

Ways to make management


meetings more effective
cive yul nruppen management meetings in
favor of more urgent
tasks? Think again. Dont
chuck the baby with the
bath water.
Tracking your numbers has no value in itself; the value
lies in reviewing and acting on them.
Management meetings provide the
opportunity for such review and
action and are an important means
of working on your business.
Some tips:
Set a regular meeting schedule.
If you dont, the meetings are too
easily put oa. Regular meetings are
the backbone of a good management
system, and, like regular vehicle
maintenance, they prevent crises.
Other appointments, even clients
and sales calls, should defer to your
management meeting schedule.
Summarize relevant information.
A spreadsheet packed with numbers
and abbreviations is a collection tool
not a communication tool. Turn data
into knowledge through accurate,
clear summaries. Distributing these
summaries in advance, along with a
written agenda, enables participants
to prepare so that meeting time can
be as efficient as possible.
Have three meetings per month.
Regardless of company size, hold a
sales, a production, and a nancial
meeting at least once a month.
SALES meetings should review and
compare to goals:
Number of inquiries and target
leads; previous month and YTD
List of preliminary contracts signed
the previous month
Signed construction contracts,
including value and job category
rejuneermojio.guj

List of currently open sales les


with projected closing dates
List of projected contracts to be
signed within the next two months

PRODUCTION meetings should


review and compare to goals:
Status of every job currently in
production
Projected schedule for each job over
the next month
Date the next job could move to
production
Date the next job must start in order
to use resources protably
Job cost reports for every job completed since the previous production meeting
FINANCIAL meetings should review
and compare to goals:
Projected cash receipts over the
next two months, including source
and timing
Cash ow over the next two months,
highlighting any shortfalls
Budget report, highlighting actual
gross margin for previous month
and YTD
In my experience, management
meetings are best facilitated by the
respective department manager
(sales, production, nances) because
collecting, organizing, and presenting
the relevant data ensures familiarity
with the details for which that particular manager is accountable.
Properly identied, each bit of data
you review, each metric, is a window
into a signicant area of company
performance. As a client recently
observed, The real value of meetings is in preparing for them. And
this is just as true if youre wearing
all those hats in your company.
Richard Steven, president of Fulcra
Consulting, helps remodeling companies
create and use effective management
plans. richard@fulcraconsulting.com.
|

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MICHAEL ANSCHEL

Pure Folly
tse wi suje euee
are chasing energy
eyciency retrots youd
think there was a pot of
gold at the end of the
net-zero rainbow. Too
bad the pursuits just as
foolish as chasing rainbows.
Blasphemy, some might say. How
can an environmentalist not throw
himself on the energy retrot bandwagon? Easy. I follow the four laws of
ecology: 1. Everything is connected,
2. Everything goes somewhere,
3. There is no free lunch, and 4. Nature
knows best. Understanding that the
home is a system within a system
within a system that operates under
more complex lines of impact than
BTUs consumed, I understand the
danger of strapping blinders on and
pursuing a single-minded goal without
considering the systemic implications
of such actions.
In focusing our conversation on
BTUs and watts saved, we may be
making the situation worse. We
already know that trying to show
ROI with dollars for anything other
than the most basic of operations is
a losing proposition.
What is needed is a systems
approach to reducing emissions that
measures greenhouse gas (GHG)
released as well as total environmental impact of the fuel source. The
data isnt hard to nd, but it doesnt
allow for a one-size-ts-all policy for
the country and it points an ugly nger
at some states, which would be politically unpopular.
Speaking of data, according to the
Department of Energy, buildings consume roughly 40% of the energy in this
country and homes account for roughly

20

rejuneermo | dlme 2011 |

50% of that use. If most of housings energy use is electricity, and the majority
of homes that have a heavy heating demand are using a fuel source other than
electricity to provide that heat, whats
the value of increasing insulation?
The hard truth is that we can reduce GHG emissions from homes
by 40% without spending a dime,
rotting out homes, or creating danger-

ous indoor environments by simply


changing our behavior toward electricity consumption.
Michael Anschel is owner and
principal of Otogawa-Anschel Design
Build, serves on the board of Minnesota Greenstar, and is CEO of Verified
Green. He can be reached at michael@
verifiedgreen.org.

For the fulllength version


of this article:
http://go.hw
.net/r-opinion

V I C TO R I A D OW N I N G

New Do
What do we need to
do differently?
ecerumes tiehrmo
about how the new reality is here so wed all better do things diaerently if
we want our businesses
to survive. But what
exactly do we need to do
diaerently? Here are a few ideas:
Review performance metrics more
often. Smart business owners are
embracing the numbers like never
before. Where they used to review
reports monthly, now its weekly. And
in addition to reviewing the standard
nancials historical information
theyve added reports to help forecast
the future with information on sales,
collections, cash ow, and more.
Communicate more often and more
in depth. In 99% of the businesses
I work with, staa numbers have
been cut. Everyone has additional
responsibilities, so they must work
with increased productivity and efciency. One way management can
rejuneermojio.guj

help is with a disciplined approach to


meetings both team meetings and
individual huddles. In these sessions,
managers learn to delegate eaectively
while employees are able to ask questions, greatly reducing the potential
for mistakes. And fewer mistakes
mean greater prots for the company.
Analyze options closely before
spending a dollar. Ive heard many
company owners saying that since
trimming the fat, theyve discovered
they can live without things they once
thought essential. This new attitude
has opened many remodelers eyes to
how they spend their money.
Invest in sales training. This will let
you better compete with the lowpriced companies that have cropped
up since the downturn. You cant
compete on price; you have to win by
building value, showing that the higher price will deliver the best result.
Doing things diaerently? Thats
a start.
Victoria Downing is president of
Remodelers Advantage. 301.490.5620.
remodelersadvantage.com.
|

Photos: David Sharpe

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R I C K P R OVO ST

In the Cross Hairs


The target: improper
classification of workers

Twin Blade Utility Knife

egac egr, eeoraegcura


introduced two bills that
target classication of
independent contractors. The Employee
Misclassication
Prevention Act would
penalize employers that misclassify
employees as independent contractors. The Fair Playing Field Act of
2010 would end the current moratorium on IRS guidance regarding worker
classication and would increase tax
RIGHT TO KNOW
penalties for misclassication.
And last, but not least, theres a proBoth bills were referred to composed rule called the Right to Know
mittee and arent likely to be reintroUnder the Fair Labor
duced this year. But that
Standards Act, which
doesnt mean the battle
In one year, the
will require employers
is over.
to perform an analysis
government lost
all their independent
HOMING IN
$4.7 billion in fed- of
contractors and notify
The Department of Labor
them of the reasons for
(DOL) has placed a high
eral income and
classifying them as such.
priority on reducing
employment tax
So if you use indepenworker misclassication
and has identied the
revenue through dent contractors, dont
that a written
construction industry as
improper classi- assume
contract will be sutcient
one of the main offenders.
Although commercation of workers to immunize you from
the efforts of the DOL
cial, industrial, and
Estimate from the General
or its partners. Since
home building rms will Accountability Office
neither the DOL nor the
obviously be rst in the
IRS has a bright line test, you should
DOLs sights, all contractors that use
familiarize yourself with the similar but
independent contractors will be subdifferent factors each department uses
ject to this enhanced focus. The DOL
plans to redouble its efforts to combat on a case-by-case basis to determine IC
status and to make sure your business
worker misclassication by funding
practices are compliant.
state grants to improve data-sharing
between states and the IRS (and other
Rick Provost has more than 20 years
federal and state agencies).
experience helping to build the counIn its 2011 budget, the DOL calls for
trys largest design/build franchise
a joint Labor-Treasury initiative to
network. He is now a principal in SMI
coordinate federal and state efforts,
with 100 new hires focused on misclas- Safety, a safety consulting and staffing
business. rickp@smisafety.com.
sication and litigation. The 2012

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budget allows for a high-performance


award program for those states most
successful at prosecuting employers. The bonuses paid will be used to
upgrade states programs for detection
and enforcement.
The DOLs We Can Help program
encourages workers to notify the
department if they think theyve been
improperly treated by an employer.
To deal with the resulting increase in
investigations, the DOLs Bridge to Justice program refers claimants to private
trial lawyers through the American
Bar Association which has spiked
misclassication litigation.

22

rejuneermo | dlme 2011 |

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Whats the Deal?


Number up before joining the latest discount craze
cu niyt ihcer his Groupon oaer
ended, Dino Kotrides, owner of Rochester RBC Design Build Renovate, in
Rochester, N.Y., had 25 appointments
scheduled, 1,400 hits to his website, and
a pile of cash outcomes that might
cause remodeling company owners to
drop everything and jump in.
Not so fast.

months of purchase. That means


15 weeks of non-stop design work,
acknowledges Kotrides, who
thought he might sell 25. But he is
optimistic, condent that hell be
able to pull it oa.

WHAT WORKS
Groupon consultants help merchants figure out what type of deal
ON OFFER
works best in their market and they
Groupon is the daily deal site that partspace out similar oaers. We want
ners with local businesses
to make sure each week
to oaer discounts to Grouhas a diaerent mix, says
pon members. Kotrides
Nason, a Groupon
to Chad
oaered design services.
spokesperson. We dont
What we normally do for
want people to compete
$200, we oaered online for
against each other.
$50, he says two hours
Groupon consultants
of Groupons
of face time split between
create the copy, put a listare redeemed ing online, and handle the
a prospects home and
Kotrides owce followed by The New York Times
credit card transactions.
two hours of design work.
Merchants receive buyer
He was surprised when he sold 150 in
names and voucher numbers to help
three days.
with redemption. Its usually a 50-50
The deal has to be used within eight earnings split between the merchant

85%
90%

and Groupon. Kotrides deal brought


in $7,500; he got $3,750. He admits that
wont cover the costs for the amount of
time he and his staa will put into it, but
if trends hold and he converts his usual
number of leads to projects, he gures
that he will have spent about $100 per
lead the same as he would have spent
without using Groupon.
He also admits, however, that if he
had a staa designer to pay Kotrides
is doing design now he might take
a pass [on using Groupon] because of

BYLAW | D.S. BERENSON

Deposit Dilemma
more checks these days with
a something extra on them.
Im referring to the growing
use of check endorsements
by customers a restriction
written on the checks front or
back. Usually they are on checks mailed to
you; customers think it may slip through your
accounts receivable. Many times the contractor cashes the check without ever seeing or
understanding the restriction.
The endorsements that cause the
most problems for my contractor-clients
are the restrictive and the conditional.

26

rejuneermo | dlme 2011 |

You cant

In the restrictive endorsepennies on the dollar. This is


ment, a customer prints some
cancel the effect often referred to as an accord
limit on how the check can be
and satisfaction in the law,
of restrictive
used, e.g., For Deposit Only,
and crossing out the restricwhich means it cant be used
language
tive endorsement and cashing
by the contractor for any other
the check anyway is not likely
merely by
purpose or endorsed over to
to make any difference.
anyone else.
crossing it out
The conditional endorseAnother common restrictive
ment is another common tacendorsement is Paid in Full, which can be
tic, although this is something we often see
more of a problem than you might expect. If
on the down payment check. An example:
a disgruntled customer slips a paid in full
Payable to Smith Remodeling after the wincheck past your accounting department and dows are installed. Banks wont take these
checks (if they catch them) since the bank
you deposit it, you may have just settled out
has no way of knowing when, or if, the condithe debt without even knowing it even for
rejuneermojio.guj

Illustration: Chris Gash

CONTRACTORS SEEM TO GET

BENCHMARK | BRUCE CASE

the cost. Although he knows his time


as an owner is valuable, he views the
Groupon campaign as a worthwhile
investment of his time and an ewective
way to market.
Its been a good experiment, he
says, a good marketing tool, which
got his name in front of the 135,000
Rochester Groupon members. We
got great exposure. Repercussions
could come into play a year from
now. Stacey Freed

Get Your Group On


Run your numbers, i.e., your usual
cost-per-lead, to see if Groupon will
be worth your time
Create strategies to convert leads
to future business
Cap the number of buyers so you
are not overwhelmed

Photo: David Sharpe

tion is ever going to be satisfied. Your bank


will usually kick back the check a week or
two after you have deposited it.
Educate your accounting/deposit
personnel to scan incoming checks and
to flag checks with extra language on
them before they get into your deposit
envelope. D.S. Berenson is the Washing-

ton, D.C., managing partner of Johanson


Berenson LLP, specializing in the home
improvement industry. 703.759.1055,
info@johansonberenson.com.
This article is for informational purposes only and should not be construed
as legal advice.
|

Gross Matters
Not everything performs to plan. Track gross profit to
find out whats working, whats not, and why
i ora rc rnk lrut
Compare percentages (not dollars).
into selling a remodelSubtract direct job costs from the
ing project. Assuming
sales price, then divide by the sale
we can encourage a
price to get gross prot percenthomeowner to call us
age. This number is the best way to
in the rst place, we
compare returns across projects of
move from consultadiwerent sizes.
tion to design and estimating, then to
Track estimated vs. actual. This
selections and options, and somewill help you understand why some
times to therapy. Finally, if everything teams meet or exceed estimated gross
falls into place, we move to craft.
prot more consistently than others
Given all of that energy, its important (see chart, below). It also helps when
to earn a proper return on all of the
comparing jobs by size. Our estimated
remodeling projects we sell.
gross prot shrinks as job size grows
Enter gross prot, the number that
because of the inherent esciencies of
enables us to determine protability
doing larger projects. By comparing
by project. Why is that important?
gross prot for various job sizes, we
Knowing our gross profit is critical in
can track performance and determine
determining how much we need to
where our sweet spot lies.
mark up our direct job costs to arrive Increase gross profit. One way to
at the proper sales price. Its also the
do this is by increasing markup, but
basis for comparing our estimates to
thats discult in this environment.
our actual performance. And because
Consequently, we have focused on
we can measure gross prot on each
nding innovative ways to reduce
project, we can spot trends related
direct job costs. Bruce Case is
to lead carpenters, designers, project
president of Case Design/Remodeling.
managers, and to diwerent project
bcase@casedesign.com.
types and sizes.
Gross prot gives
Actual vs. Estimated Gross Prot
us insight into how
well were performing
Actual GP%
Estimated GP%
60%
each month and each
quarter, so we arent
waiting until the end
40
of the year to see if
we make money. And
when there are prob20
lems, we can zero in
on them quickly and
ewectively. In short,
0
knowing our gross
Total
Team 1
Team 2
Team 3
prot gives us peace
of mind.
In this example, actual overall gross prot is outperformHere are some
ing estimates, but Team 2 is not performing well. Analysis
tips for tracking
stemming from this kind of comparison could lead to adjustgross prot.
ments that will help to boost Team 2s performance.

nuermuodjleil.gre

| juju 2011 | nuermuodjl

27

Change Adds Up

Know Your Lines

Brian Butler credits the spreadsheet


with having helped his company cut
down on change orders due to unforeseen issues. He includes additional
money in the budget for these types
of situations, crediting the client if
that money isnt used. Id rather write
someone a credit than write them a
change order, he says.

Building a thorough estimate, one line at a time


bojuon ermmn bodlidne, in Allston, Mass.,
uses a 160 line-item spreadsheet to estimate
projects, reviewing the spreadsheet after
project completion to ne-tune its process
and periodically checking with trades for
updated pricing, owner Brian Butler says.
Each section of the sheet is based on
Construction Specications Institute project divisions, starting with site work and
foundation and ending with interior nishing. Every construction division has its own
tab, Butler says. E.g., the insulation tab covers all types of insulation that could be used
on a project, including rigid roof, ridge wall,
spray foam, blown cellulose, berglass batts,
recycled denim batts, etc. When we are
cost-coding this way, Butler says, we can
get that much more granular on our over/
under and look back at jobs for things that
worked well and things that didnt.

Butler tailors the spreadsheet for each project type.


Cape Cods, he says, have massive roofs with a much lower
wall-insulating budget, while
Victorian houses might have an
insulation section 20 lines long due to turrets, overhangs, balconies, and cantilevers.
I can gure in square footages for all facets
of the house, including roof area, basement,
attic ceiling knee walls, etc., he says.

2011, HOMER TLC, Inc. All rights reserved.

OPEN-BOOK LEADS
Butler credits the estimator he hired two
years ago with eshing out each project
division. The spreadsheet is a key aspect
of the companys pre-construction preparations and is especially helpful for the
companys energy-efficient focus. We
work every proposal out of this spread-

sheet, Butler says. It also helps clients stay


within budget because the remodeler can
easily eliminate segments of the design
from the spreadsheet for updated numbers.
The spreadsheet is part of the companys
open-book method, with costs and markup
fully disclosed to clients. It highlights the
companys professionalism and helps to
weed out clients who dont appreciate the
detailed process. Some people zone in on
every single line item, Butler says. The
amount of pre-construction time spent arguing line items it qualies the lead. Sometimes you have to walk away. Nina Patel

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TECH@WORK | JOE STODDARD

googles eree ofce suite, Google


Docs, includes
document management, a word
processor, a presentation package,
a basic drawing program, and
a simple spreadsheet that has a
cool Web trick called forms.
Forms lets you create Webbased forms for gathering information. Add questions using a
simple Web interface and then
publish your form by e-mail or
by embedding it in a website.
The usual types of questions/
responses are available: singleline text for gathering names
and contact info; multiline text

2011 Solutia Inc. LLumar and LLumar logo are trademarks of Solutia Inc. All text, graphic and image rights reserved. Visual renderings are for illustrative purposes only;
actual appearance of windows treated with LLumar window lm may vary.

L L U M A R

Use free Google forms to gather data from your customers

for longer answers; select from


a list; multiple choice; and scales
and grids, where users can rank
or categorize. And you can insert a section header and some
basic logic so that a question can
lead to a new page.
Google has several templates
that make the form attractive.
Each form has a submit button that writes respondents
answers to a Google spreadsheet thats automatically set up
as a simple at database. This
can be exported as a delimited
le where elds are separated
by commas, for example and
imported to other programs. Or
use Googles one-click summary to generate a graphical

20
%

of organizations are
currently using public
cloud computing
Tech Journal South survey

summary of responses.
You can also use forms to:
Embed a Contact us or
How can we help you? form
on your website set up to e-mail
your salesperson
Set up customer satisfaction

E N E R G Y - S A V I N G

surveys that you can send


via e-mail
Survey users of appliances
or other equipment you install
to see what they like/dislike
Follow up warranty service
calls with a form
Gather referrals
While Id like a little more
exibility, for the most part,
Google has hit a home run. Its
simple enough and powerful
enough that you can collect
meaningful business information. http://docs.google.com
Joe Stoddard is an industry
consultant helping remodelers be
successful with their technology.
twitter.com/moucon; jstoddard@
mountainconsulting.com.

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In the Gutter
A way to connect with past clients
tre gapizzi, rwner rf Capizzi Home Improvement, in Cotuit, Mass., was jogging on the beach in
San Diego when he had an idea: His company would
offer to clean gutters for past customers for free.
That was in December 2008, at a time when remodeling companies were scrambling to nd leads for
salespeople and work to keep eld crews busy.
My staff thought I was out of my mind, Capizzi
recalls. But I was thinking about the time-share
people, he says. They give you a free night in a
hotel, and in return for that you sit through their
presentation. If you didnt know anything about
their business model, youd think theyd go broke.
But its one of the most successful programs imaginable.
THE DEAL
For the period of the promotion, Capizzi Home Improvement offers free gutter cleaning to the rst 50 past customers who respond to its postcard mailer. In return, the
homeowner agrees to hear a sales presentation.
In the rst year, the promotion generated $300,000 of
work, at a cost of about $4,000 for the postcard and the labor
in the roughly two-hour gutter cleaning a marketing cost
of less than 1.5%. The company repeated the promotion at the
end of 2010 and into this year. Jobs generated average $3,500
and range from repair and maintenance work to the occasional

Illustration: Kyle T. Webster

I SEO You

Make it easier for clients to find you

SINCE THE ANSWER TO Where did


you find that? is often, I Googled
it, businesses work hard to be
top-of-page. The goal: Optimize
the chances that the searching
spiders find your company.

job in the $20,000 to


In the rst year, the
$40,000 range.
Capizzi says that the promotion generated
key to the promotions
$300,000 worth of work
success is leveling
with prospects, which
he does with Reason Why copy on the postcard, which
explains why its worth it for us to help you. In addition, the
owner set a time limit on the promotion. The company relaunches Free Gutter Cleaning whenever it needs additional
leads. Two factors make for success: Youve got to have the
back-end to support what you do, and you have to have the
right people running the leads, Capizzi says. Jim Cory

Even if a Web developer works on your


site, you should know enough about search
engine optimization or SEO to be able to ask
the right questions, says Josh Lowery, owner
of We Make Nice Websites, in Rochester, N.Y. He suggests looking at the
following to improve SEO.
Fresh content: Blogs and their
comments count as new content.
Facebook and Twitter updates help.
Backlinks: These are links to
your site from elsewhere. Some
are worthier than others. A lumberyard
connection is juicier to the spider than a
hairdresser backlinking.
Keywords: Relevancy raises your rank.
Instead of saying We do remodeling,
reerdeoinleal.gre

specify kitchen remodeling, etc.


Density: Keep keyword density between
1.5% and 3%. Over 5.5% and Google considers it spam: If 800 words in a 2,000-word
document are kitchen, youll be demoted.
URL and title tag: The address (URL)
is important, but the title tag browser
label for individual pages may be more
important. Code each page with a specific
title tag using keywords to make it easier
for the spiders to find.
H1 and <p> tags: H1 is code for header
tag and <p> is for paragraph. Its not
enough to bold a word, for instance. Text
must be coded. Search engines see these
as more important sections and are more
likely to hit on them. Stacey Freed

| june 2011 | reerdeoinl

33

AT YOUR SERVICE

Winning the
Bid Wars

Consult Then Construct


Stop playing the waiting game
for many remodeeers a lot of time is
tied up in waiting for homeowners to
call. Even if youre actively marketing
and networking, youre still waiting for
homeowners to seek you out. Veteran
remodeler turned consultant Dave
Lupberger wants to change that: Weve
lived with a reactive business model;
the homeowner calls and we come,
Lupberger says. Lets create a proactive
business model. We call and we come.

Like Rye, Billy Webb, owner of Dandy


Handymen Remodeling, a full-service
company in Roanoke, Va., contacted existing clients. He also has approached insurance agents, several of whom include
his brochure in their mailings. Realtors
are another good connection. Webb creates a quarterly maintenance program
with clients and plans to hire a full-time
person just for HAMP projects.

PAY IT FORWARD
Relationship-based selling is not new,
SERVICE-ORIENTED
and most remodelers do small jobs for
When your 401(k) is tanking, you call
existing clients, but HAMP (about a
your nancial adviser. For many people,
$600 investment) formalizes the activity
a home is their largest nancial asset. Yet
and includes consulting. HAMP offers
where is the adviser helping to maintain
a series of questions, lays
that investment? Therein
out the various meetings,
lies the premise behind
and gives a specic plan
Lupbergers Home Asset
for those meetings, says
Management Program
Paul Sanneman, founder of
(HAMP), a tool he says
Dream Business Coaching,
can help remodelers to
of adults agree
who helped Lupberger
change behaviors.
that buying a home
develop HAMP. (It doesnt
I now position myis the best long-term
self as a resource, says
cover energy audits, but
investment a person
Milt Rye, owner of Ethan
users are encouraged to
can make
Home Repair, in Everett,
partner with auditors.)
Wash., who uses HAMP
All the information goes
with existing clients. I look at vitals and
into a Home Asset Notebook. Lupbergcheck that systems are working properly
er envisions remodelers having 50 of
... see whats going to happen down the
these books on their shelves, representroad. Using HAMPs checklists, Rye
ing a half-million dollars worth of work
helps clients prioritize projects, scheduleach year. And when a client sells the
ing, and costs. He is able to bundle and
home, the information can be passed to
the new owner. Stacey Freed
schedule projects at his own pace.

81%

34

remodeerno | jlne 2011 |

remodeernomao.gom

WE DONT GET SIDING replacement jobs


very often because, unlike specialty
companies, we charge for bids. Also,
unlike most contractors in our area, we
insist on removing the old siding and
non-structural sheathing. This means
that our price is usually quite a lot higher.
Recently a prospective
client agreed to pay
our bid fee for a siding
replacement job. Things
have been slow, but
we bid with our normal
attention to detail, prepared
to lose to a lower bid. Instead, we got
the job even though we were the highest bid because, as the client told us,
we were the only company proposing
to do the job right. She also asked us to
price out replacement windows, making
a relatively small job a good deal larger.
During the job, we replaced some
rotting studs and added insulation to
areas that had none. This may well have
gone undetected and unrepaired if wed
left the old siding and sheathing in place.
The client was thrilled with the improved
comfort of her home.
We got top scores on the clients
GuildQuality survey and she wants us
to remodel her master bathroom next
year. Plus, she has referred two other
prospective clients.
In tough economic times, it can be
tempting to lower standards to compete
on price. This client taught us the value
of insisting on quality work at a fair price,
even if that price is above that of the
competition. Hugh Stearns is president

of Stearns Design Build, in College Station, Texas, which uses GuildQuality surveys to monitor customer satisfaction.

Illustration: Joel Castillo; statistic source: Pew Research Center survey, 2011

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Past Imperfect
Background checks protect
you and your company

Fun in the Sun

Illustration: Zohar Lazar

Warm weather means summertime fun for your staff


Like many companies, Normandy also
sueeertiee, and the livin is easy.
holds its company picnic in the summer
So the song says, but your staff and crew
with the added incentives of games and
work hard year-round and nows the
contests with prizes, food, as well as pony
ideal time to treat them to a little sumrides, face painters, bouncy houses, and
mer fun that wont break the bank.
the juiciest summertime perk of all, a
While many companies celebrate
watermelon-eating contest.
summer with an altered workweek
The boys of summer are a favorite at
every other Friday afternoon off or some
Baugher Design & Remodel, in Birmingvariation thereof that wont work for
ham, Ala. They all go to a Birmingham
your eld crew. Can you picture your
Barons baseball game, and if its
clients in the midst of their half-nished
25 cent hot dog night,
remodel scratching
all the better! CEO Rob
their heads as your
Other year-round perks Baugher says that his
workers leave for
favorite perk has been
the weekend around
training/classes/
a guys-only night out
lunchtime? It wouldnt
certications
at the local cineplex.
inspire condence
mileage
Every Thursday we
or referrals.
prot sharing
watch a movie that our
Michael Anschel,
cell-phone plans
wives would not care
principal at Otogawa tools/tool allowance
about seeing, Baugher
Anschel Design-Build,
explains, adding that
in Minneapolis, and a
frequent Reerdeoinl blogger, has never he and the guys eat all the junk food
they want without anybody telling them
thought of employee perks as seasonal.
to watch their weight. Male bonding
He gives employees a day off on their
birthday with just one rule: they must re- at its best! he enthuses. Since everyone
lax or have fun. I guess one of the perks
gets home in time to take out the garat our company is unlimited unpaid time
bage, walk the dog, or run errands, their
off, he says. In other words, its OK to
wives dont care. This might be saving
call in healthy because the sun is out and
my marriage! he adds.
you want to go kayaking or biking.
Cincinnatibased Meyer Brothers &
Chicago areas Normandy Builders
Sons once purchased a cow and divvied
takes the fun into its parking lot for a
up the pieces among the staff, creating
series of lot lunches where the manag- a new way to have a beef with your boss!
Mark A. Newman
ers grill a variety of meats for the staff.
|

reerdeoinleal.gre

WHETHER ITS AN employee embezzling from your company or a salesman


smelling like an open bottle of whiskey,
a company that doesnt pre-screen
employees does so at its own peril.
Unfortunately, in the construction
industry, people move around a lot.
Its just good business to really know
who youre hiring, says Richard Feeley,
president of Feeley Mediation & Business
Law, in Marietta, Ga., and a REMODELING
contributor. You could be interviewing
someone you think is the cats meow but
two years ago in another state they got
into some serious trouble.
There are a number of online companies that can do basic background
checks, but Feeley
recommends
contracting with a
professional firm
that knows exactly
what to look for.
Feeley also cautions
cost per candidate
against ignoring
for a background
any red flags that
check
could show up in an
employees past because the only thing
worse than not finding a past indiscretion when one exists is finding one and
ignoring it.
John Aurgemma, co-president of
Rhode Island Home Improvement, in
Warwick, R.I., says that his company does
its vetting in-house. What gets on the applications are those employers the candidates are happy with, he explains. What
they leave off is the most damaging.
Feeley says that a firm specializing in
such investigations can usually do the job
for between $50 and $100 per candidate,
and online sources cost even less but are
probably less thorough. Aurgemma adds,
You do the best job you can and you
hope and pray that what you see is what
you get. Mark A. Newman

50 to
$
100

| june 2011 | reerdeoinl

37

Bill by Skill
Paying field crews a higher rate for the hours
when they use specialty skills
eagh of the folr eld crew at
Mack & Sons Services, in Wellington,
Ohio, has a trade specialty. But crew
members are called on to use a variety
of skills for the companys remodeling
projects, and Mack & Sons cant afford
to pay them a high
trade rate for every
This system is
hour they work. So,
especially helpful
vice president Josh
during winter downMack says, they are
time when cash ow
paid the trade rate
is lower and the team
when they are
might be doing shop
applying their
maintenance or
specific skills and a
cleaning trucks
lower base rate for the
other work they complete. If the electrician is sweeping or
helping to hold cabinets, he gets the
base rate. If hes doing electrical, he
gets the trade rate, Mack explains.
Mack has found that the trade rate

often gives crew members more motivation to


sell homeowners additional work that requires
their skill. Theyre the
ones in peoples homes,
he says. Theyre more
suited to be the salesperson than anybody else.
The crew use a daily
planner to track trade
hours, providing Mack
with their total trade hours each
month. Mack might cross-reference
these totals with job budgets, but he
primarily relies on the honor system.
The additional (skilled) rate is paid
out as a monthly bonus.
Each employee has a different
trade rate, which is based on their
particular skill and level of experience. Mack says he tells the crew, If

you want more money, you need to take


on more responsibility. To that end, he
puts one of his eld crew in charge of
each project, alternating them so that
each learns to work with the others. He
also likes that he has staff with a range
of skills and who vary in age, so he can
pair them up to nd the best combination for each job and they can learn
from one another. Nina Patel

ANDY HANNAN

Our superintendent, Jim Yingling,


wanted to test the
usefulness of a laptop on the jobsite,
so we invested
$300 in a computer. During the nine months that
he has been using the computer,
it has improved communication
and increased efficiency among
all parties involved in a remodel.
Architects: Most architects
are better about getting back to
you by e-mail than by phone
some respond almost immediately. We send them photos of
jobsite details with questions,
and they can respond with a PDF
of the drawing.
Clients: Clients are more

38

remodeerno | jlne 2011 |

Trial effort shows laptops can aid communication on the job

tech savvy than ever before


and expect quick responses to
questions. Jim exchanges e-mail
with clients, usually to follow up
on something we discussed at
a weekly meeting selections,
change order pricing, delivery
status, or allowances.
Some clients are very visual
and prefer photos, details, or
both. Jim copies me and Mark IV
president Mark Scott on the
e-mails. This helps me stay in
the loop without being actively
involved and creates a record of
communications. I e-mail clients,
but for problems I call them so
that I can hear their tone of voice
to judge their response.
Office: Though we do not
provide wireless access for the

Communicating
electronically
lets other staff
stay in the loop
without being
actively involved
laptop, most clients allow Jim to
use their wireless/wired systems
through a temporary password.
He fills out digital forms on the
laptop, including daily logs, site
notes, and change orders. During
our biweekly superintendent
meetings, I download information
from Jims laptop to the office
remodeernomao.gom

computer, which gives me a


chance to review the job without
doing a site visit. The digital forms
allow us to quickly create a storage disc at the end of the job.
Suppliers: Most salespeople
send us invoices/orders/estimates by e-mail. Jim also tracks
orders and downloads product
specification sheets from manufacturer websites.
Though I was initially
concerned about personal use
of the laptop on the jobsite
and our superintendent being
overwhelmed with information,
the reality is that the benefits far
outweigh the concerns. Andy

Hannan is production manager of Mark IV Builders, in


Bethesda, Md.
|

Illustration: James Yang

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Ranch Dressing
Gables elevate the facade of this 1960s ranch and bring natural light to the interior
errse reerdeoinl & gustre hrees, in Davis, Calif.,
and a team of designers and subcontractors joined forces
to transform this house from a 1960s ranch to what company owner Marty Morse says was dubbed California
contemporary with Asian inuences.
The customers request for a great room with high ceilings to replace the original 8-foot ceilings, as well as additional windows and some seismic upgrades, meant that
it was more cost-effective to replace the existing structure
with new walls and a new roof. Once the decision was
made to add a center cathedral gable to the originally at
roof, the team also added gables to either side of the home
to maintain its symmetrical look.
BEFORE

Morse and architect Ron Vogel completed the layout and


design. The details and nishes were a collaborative effort
between Morses company, the owners niece who is also
a designer and a team of subcontractors.
The stucco exterior nish, cement tile roof, and slate
ooring enhance the simple, clean lines of the house. To
help make these design decisions, the remodeling company
created a specication board to show how the materials
would look together.
Morse says that, as with most ranch remodels, these
homeowners wanted a more open feel for how they live
today, with a great room and a kitchen at the heart of
the home. And this remodel delivers. Nina Patel

See more project photos at


http://go.hw
.net/r-projects

after

Gables

The front door opens into a dramatic great room (about 1,000
square feet, open plan, broken
into zones) at the center of the
home. The remodel enlarged
the entrance, adding gables
with clerestory windows and
skylights to admit abundant
natural light to the interior,
while the gables reinforce
the symmetry of the facade
on the exterior.

Roong

Photo, after: Terry Nathan Photography

The homeowners wanted a


low-maintenance exterior, so
remodeler Marty Morse chose
durable cement tile (from
Monier) for the roof because it
holds up well in the Californian
heat and rain. The low-prole
product maintains the clean
lines of the homes exterior. The
tiles grayish color has some texture, which adds interest. I cant
imagine any other roof on top of
this house, Morse says.

Flooring

The colors in the natural


African slate beautifully
complement the homes color
palette, so the slate is used
extensively: in the front yard
and backyard, and inside the
entryway, where it helps to
dene the entry area in the
open-plan great room.

reerdeoinleal.gre

Doors/windows

A local door shop in Davis custom built the solid wood front
door, which is framed in black
and features custom glass.
The xed gable and clerestory
windows are custom to t the
space; other windows are
standard sizes (all Pella Corp.).
Windows are wood interior
(stock pine) with a custom stain
to match the cherry cabinets
inside the home.

Stucco

A common exterior nish in California, stucco helps create the


clean lines and the monolithic
look that denes this project, enhancing the continuity between
house and yard. The remodeler
worked closely with the stucco
contractor creating samples to
get the nish just right a very
ne hand-nished texture that
appears almost like plaster. For
depth, the painter applied two
shades of paint: a regular coat,
then a second coat that was
sponged on by a specialist.

| june 2011 | reerdeoinl

43

With the columns gone,


the existing beam (now
reinforced with steel
channels and trimmed
out with wood) is about as
unobtrusive as it can be.

Open Up

An existing concrete lip


has become a narrow
display shelf and a natural
stopping point for the
wainscot paneling.

Realizing a basements potential


IN THE SEATTLE

home that builder


Paul Vassallo and
his wife, Jeremy,
bought, the basement had potential
as a great space for
their three active
boys. Paul has decades of building experience, so he could view the space poorly
placed columns, exposed joists, dingy paint
and see what was possible. Understanding what can actually be built is especially
critical in a basement remodel, which often
requires structural alterations and modifications to plumbing, wiring, and ductwork.
These were just the sort of changes the Vassallos employed, along with clever built-in
cabinetry. Adapted with permission from

Not So Big Remodeling by Sarah Susanka,


published by The Taunton Press (2009).

The valance above the new


built-in cabinets hides ductwork and establishes a trim
line that continues around
the room. The depth of the
valance matches the depth
of the ceiling beam.

Support
Remove a column, and
you have to beef up the
beam it supported. Here
C-shaped steel channels
were bolted to either
side of the wood beam.
The entire assembly
was then trimmed
out in wood. Supply
air ducts were placed
between the joists.

Hardwood
oor
Suboor
Existing joist
Bolt
Wood trim conceals
beam and C-channels

Steel
C-channel
Existing solid
wood beam

Joist

Supply duct
installed
between joists

Drywall
nished
ceiling

Interactive whiteboard makes design hands-on for clients

SMART is one of several companies that make interactive boards, which range in price from about $1,200 to
$10,000 depending on projector choice and board size.

when annette and Larry Parrish, coowners of Parrish Construction, in Boulder, Colo., saw a SMART Board interactive whiteboard at a trade show eight

Wood Out of Water


44

remodeerno | jlne 2011 |

years ago, they knew they had found a


new tool for helping clients understand
and visualize project design. You can
put up blueprints and take a pen or
your ngers and write on it. You can
redo your drawings, Annette says.

to touch the board with a nger or


stylus similar to that of a touchpad on a
laptop or handheld digital device, says
Jeffrey Thompson, a SMART Certied
Master Trainer and Promethean dealer
at AV Solutions based in Rochester, N.Y.

PAPER TRAIL
An interactive whiteboard made by
companies such as SMART, Promethean, and PolyVision lets you interact
with your computer on a whiteboard
surface so you can erase, write-on,
make changes all of which can be
saved. Your computers image is
displayed on the whiteboards touchsensitive surface ... which allows users

VIRTUAL SHOWROOM
The Parrishes use their whiteboard not
only for design but as a virtual showroom, for staff meetings, budget and
training meetings, and seminars.
Because its connected to a computer, any software you have works on
the board. And when its time for some
staff bonding, Annette says, they show
movies. Stacey Freed

Dick Kawaleks solutions for Keeping the Wood Out of the Water, page 48, in the April issue, got readers talking.
See readers comments at http://go.hw.net/r-projects.

remodeernomao.gom

Photos: top, Ken Gutmaker; lower left, SMART Technologies; illustration: The Taunton Press, 2008

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REMODELING talked with a few of your friends and colleagues from


around the country to find out how they are taking advantage of
these resources while turning a tidy profit in the process.
See page 54

48

remodeerno | jlne 2011 |

remodeernomao.gom

Inventive
Incentives
Remodelers and Department of Energy officials alike are raving about a variety of government
incentives both old and new to improve the performance of U.S. homes.
Learn how you can improve customers energy efficiency and your bottom line.

Photos: clockwise from top right, Narayan Mahon/Aurora Select, Ty Milford/Aurora Select,
Fabrizio Constantini/Aurora Select, Jared McMillen/Aurora Select; illustration: Doug Ross

| BY MARK A. NEWMAN |

Just because the Home


Star cash cow was put
out to pasture by Congress doesnt mean all
hope is lost. Thanks to
the almost $800 billion
that the Obama administration injected into
the U.S. economy via
the American Recovery
and Reinvestment Act
of 2009 (ARRA), grants,
incentives, and other
|

options are out there.


The remodeling industry can be instrumental in helping the
DOE achieve its goals
of retrotting 1 million
homes by the time the
ARRA funding runs
out in 2012. Remodelers are already trusted
to be in the home to do
the work, says Kathleen Hogan, Deputy

reerdeoinleal.gre

Assistant Secretary for


Energy Efficiency, DOE.
They have a great opportunity to add to what
they are already providing the homeowner
and serve as effective
agents for energy efficiency to meet some of
our national objectives
for saving energy and
reducing greenhouse
gas emissions.
| june 2011 | reerdeoinl

49

INVENTIVE INCENTIVES

Government Assistance
Theres no time to mourn Home Stars demise according to the DOE
officials who spoke to REMODELING. Here are some programs you can
participate in now ... but youd better act fast.

ous standards from state licenses and


certications to experience and even
nancial stability.

Following the Money

The Recovery Act invested a total of


$787 billion into the U.S. economy in 2009.

Of that, $632.2 billion has been spent as of


March 25, 2011.

The Department of Energy was allocated


$33.79 billion, of which only one-third
$13.46 billion has been paid out.

The Home Energy Score is part of the Recov-

ery Through Retrofit initiative, which is a portion of the Recovery Acts almost $80 billion
allocated to energy and the environment.

The Weatherization Assistance Program


received $5 billion in ARRA funds, $1 bil-

lion for training and technical assistance.


To date, approximately $2.7 billion has
been spent nationwide. As of March 2011,
457,868 low-income families have had their
homes retrofitted through WAP.

The BetterBuildings Program received


$450 million under the Recovery Act, of

which $105.5 million has been spent to date.

Partnerships under the Building America


Program are funded with annual appropriations, not through the Recovery Act. In fiscal year 2010, the program received nearly
$40 million.

50

The Advanced Building Systems program received a total of $67 million ($14 million spent
to date) to advance research focused on the
systems design, integration, and control of
buildings for both new and existing buildings.

remodeerno | jlne 2011 |

Read more
about home
performance
programs at
http://go.hw
.net/features

A $500 million grant program to


develop innovative approaches to
retrot homes on a large scale, BetterBuildings has a goal of 120,000 homes
upgraded by the programs end in 2012.
We know what needs to be done to
perform energy-efficient retrots that
can save 10, 15, 20% on energy savings,
says David Lee, supervisor, Residential
Integration Program, Building Technologies Program, DOE. Where weve had
difficulty is in promoting home energy
Weatherization
retrots to homeowners and making it
Assistance Program
enticing for them. Funds have been disWAP has been a part of the DOEs
bursed to 41 grantees across the nation
home improvement arsenal for almost
states, cities, counties, regions, and
30 years. The Weatherization
even utilities that are exploring stateAssistance Program received $5 billion,
of-the-art methods to reach the general
of which $1 billion was set
public and to encourage
aside for training and
homeowners to retrot
The Residential
technical assistance,
their homes.
Buildings Program
says Jennifer Somers,
Lee hopes that the
received nearly
team lead, Training and
program will continue
$24 million
Technical Assistance/
to thrive long after the
($11 million spent
policy adviser, Office
ARRA funds are gone.
to date) to provide
of Weatherization and
Ultimately we want
technical support for
the Recovery through
people to recognize the
Intergovernmental ProRetrot task force
importance of energy
gram, Energy Efficiency
efficiency to improve the
and Renewable Energy,
DOE. Approximately $850 million was quality of their lives as well as to reduce
distributed to the 58 grantees, and DOE their energy bills, he says.
retained about $150 million to fund the
WAP National Weatherization Training Building America
and Technical Assistance Plan.
Already a part of the DOE budget,
A community action program (CAP)
this program is not funded by ARRA.
administers WAP locally and acts as
Its a research program working with
liaison between contractors and the
builders, contractors, and remodelers
families seeking assistance. The CAP
to bring technologies to market, Lee
also vets contractors based on varisays. This year we have a $20 million

remodeernomao.gom

Illustration: Doug Ross

BetterBuildings

Go to http://remodeling.hotims.com for more info

INVENTIVE INCENTIVES

Home Performance
with Energy Star
More than 75,000 families have had their
homes improved through Home Performance with Energy Star (HPWES). The
program uses a whole-house,
house-as-a-system
approach to improving the homes energy
efficiency and comfort, while helping to
protect the environment. According to
Hogan, the programs goal is to
give homeowners the condence
they need that high-quality work is going
to be done in their homes.
After a retrot, homeowners enjoy
fewer drafts, consistent temperatures
across rooms, improved ventilation and
humidity control, and lower utility bills.
A local sponsor (state energy office, utility, or nonprot energy-efficiency organization) ensures that participating contractors maintain high standards. This
typically includes providing specialized
training and conducting quality assurance inspections to verify that HPWES
projects are performed correctly.
Contractors can get training via the
same programs that the government has
set up for WAP. The building science,
whether youre working on weatherization or home performance, is the same,
Somers says. Our efforts now allow
for professional guidelines not just for
weatherization but for every residential
energy market.

52

remodeerno | jlne 2011 |

Point Value
Will a scorecard push homeowners to retrot?
In the same way that people boast about their cars MPG rating, some in the
home energy sphere are hoping consumers will one day try to one-up each
other with their Home Energy Scores.
Launched in late 2010 by Joe Biden as part of the recommendations stemming from last years Recovery Through Retrofit, the HES program is running
until late June as a pilot in 10 states. [The Home Energy Score] is basically
designed to quickly and in an affordable way show homeowners how their
home performs, how it compares to others in their area, and what they might
do to improve it, says Joan Glickman, DOE project manager for Home Energy
Score. The score, if implemented, will not be mandatory.

TAKING SIDES
Some in the remodeling and home energy industries take issue with the
evaluations, noting that the assessment doesnt require a blower door test and
doesnt produce a detailed custom report. Glickman says that the pilot phase is
being used to refine what were doing.
Those who worked on the programs creation say its important to remember
that the HES is not an audit but an assessment or rating, and it is deliberately
simplified. This simpler inspection gives you a snapshot of your home at a
particular time, says Cynthia Adams, executive director of LEAP (Local Energy
Alliance Program) in Charlottesville, Va., one of the pilot providers. If the goal is
to keep costs down and provide homeowners with information on energy improvements they can do in their home, a diagnostic audit is more expensive and
time-consuming. [The HES] is simpler to explain to people and a good first step.
Its likely that homeowners particulary home sellers will appreciate the
score and the education theyll get with it. All sides agree that, if implemented,
its not the score thats most important but that homeowners will be motivated
to take action and that there will be incentives to help them such as tax credits
and funding options like the new PowerSaver loan (see page 81) and mortgage
lending rules that consider energy savings (see page 13). Stacey Freed

The HES program pilot phase ends this month. DOEs Glickman encourages
contractors to voice their opinions at homeenergyscore@ee.doe.gov.
Score Card

Those with RESNET


or BPI credentials
evaluate a homes
energy assets, and
grade the home on a
1 to 10 scale. Homeowners are shown
their score, suggested improvements,
how the score might
improve if they
made changes, and
savings estimates
based on average
state utility costs.

remodeernomao.gom

Illustration: Doug Ross

budget and about 60% of that is going


into retrot research on existing homes.
Were also asking the teams to look at
innovative deployment models to highlight the retrot techniques that are more
efficient, less costly, and less burdensome
to the contractor.
Building America projects require a
buy in by the remodeler. Fortunately,
these projects can benet a remodeler in
many ways, from getting retrot experience to having access to DOE data at the
conclusion of each project.

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VIEW DEMO

INVENTIVE INCENTIVES

Energy Stars
Home Stars untimely demise dealt the remodeling industry quite a
blow. Fortunately, there are a variety of incentives, grants, and other
programs that can not only increase your client base but boost your
prot margin as well. Some contractors have even launched new
businesses based on the work these initiatives have brought them.
If it worked for them, it could work for you. Find out how these
remodeling pros turned lemons into lemonade.

Meadowlark Builders
Ann Arbor, Mich.

AVERAGE COST OF A JOB

$10,000
TYPICAL MARGIN

35%
START-UP COSTS

$500,000
TYPICAL CONTRACTING
CYCLE 1 month
FIELD VS. OFFICE 5 to 8

54

remodeerno | jlne 2011 |

homeowners who could apply for unsecured personal


loans to make energy-efficient home improvements in
the range of $1,000 to $12,500. The loans have a fixed
APR below 7%.
They had to do some wrangling with banks to get
them to finance it, but once that happened the program
started working pretty quickly, Selby says, adding that
Michigan Saves is a real shining example of private
and government concerns working together to create
something that works.

remodeernomao.gom

Photo: Fabrizio Constantini/Aurora


Select; illustration: Doug Ross

BY THE NUMBERS

Doug Selby, CEO of Meadowlark Builders, is


more than a tad disillusioned that Home Star
is not an option. Its a little disappointing that
the federal government would rather give out
huge oil subsidies that make companies like
Exxon pay zero in taxes but they wont throw
the home performance industry a bone, he
says. We could make a ton of new jobs and
the taxpayers would get a huge return on their
investment over time. Its incredibly shortsighted and stupid.
Meadowlark Builders has flourished despite
Home Stars demise. Selby says his company
has seen its business double due to incentives
offered by the state and federal governments
working in concert with local utilities and area
banks. He especially credits the Michigan Saves
Home Energy Loan Program with keeping
Meadowlark Builders afloat. I dont think wed
be in business without them, he says. Meadowlark is deemed a Michigan Saves authorized contractor, the only type allowed to do
the work. Aside from meeting a litany of
requirements and certifications, these contractors
can also initiate the loan application process.
Partially funded by a three-year grant from
the DOE along with Better Buildings for Michigan, as well as with various state, regional, and
municipal entities, Michigan Saves began
with about $12 million in a loss reserve
fund. This helped persuade area banks to
make $90 million worth of credit available to

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INVENTIVE INCENTIVES

Carmel Builders
Milwaukee

BY THE NUMBERS
AVERAGE DIRECT JOB
COSTS $7,500
TYPICAL JOB COST
MARKUP 56%
AVERAGE NET $11,700
START-UP COSTS Minimal
TYPICAL CONTRACTING
CYCLE 3 weeks
FIELD VS. OFFICE 2 to 2

Tom Weiher, president of Carmel


Builders, has not had time to mourn
Home Stars death; hes been too busy
with the slew of upgrades coming his
way via Wisconsins Focus on Energy
initiative. Its a win-win situation, Weiher says. Its
grown our business as weve introduced it to a lot of
people. Once you establish a good relationship with the
homeowner, youre the first company they think of when
its time to remodel.
Apparently a lot of homeowners thought of Carmel
Builders first: Weiher estimates that the company has
added $75,000 to its annual bottom line since it began
performing these upgrades. Referrals from those jobs
alone have generated an additional $150,000 and our
indicators are that well double that this year, he says.
Focus on Energy is funded by Wisconsin citizens
via their utility bills. The rebates are issued once the
upgrades are completed and approved. The entire
process begins with an evaluation by an independent
home performance consultant. Then Carmel Builders
steps in. As an allied partner, it gets the recommendation from either the evaluator or from Focus on Energys website. Weiher adds that all it took to become a

partner was the time to register and to have a couple


of employees trained in specific processes.
The energy upgrade work gives Carmel Builders
a foot in the newly weather-stripped door for other
potential remodeling projects. In some cases, Weiher
says that the upgrades go a bit above and beyond
what the independent evaluator recommended. E.g.,
if new weather stripping is needed around 25-yearold patio doors, it would be beneficial for all parties to
replace the doors altogether. While the customer gets
a better-insulated door and frame, Carmel Builders
earns a bigger margin.
Aside from using the upgrades to turn new clients
into repeat customers, Weiher has also leveraged them
as an incentive for clients contemplating a standard
remodeling job. Carmel Builders offers to pay for the
evaluation once the customer has signed a formal design/build contract. If its a $200,000 job, I can afford
to cut a $750 check, Weiher says.

Better Buildings Performance


Brian Kephart, president
and CEO of Better Buildings Performance, says
that if it hadnt been for
the DOEs Weatherization
Assistance Program, we
wouldve dissolved [BBPs
sister company, Better
Buildings Systems] three
years ago. Not only did
BBS flourish, it spun off
BBP to specialize in home
performance upgrades.
The WAP program proved
to be a lifesaver when the
commercial construction

56

remodeerno | jlne 2011 |

industry in Las Vegas all


but dried up about five
years ago.
The company didnt
just suddenly sign up
with WAP and the phone
started ringing; Kephart
relied on his connections
within the industry and
the contacts he made
working with DOEs Building America. BBS was a
part of a team of contracting resources who all
had a part in funding the
Building America projects

remodeernomao.gom

Photos: top, Narayan Mahon/Aurora Select; left, Jared McMillen/Aurora Select

Las Vegas

with the DOE. The projects were facilitated via a


50/50 partnership where
the other partners were
essentially investors in
a residential project and
Building America provided matching funds.
It was the companys
Building America experience that caught the
eye of HELP of Southern
Nevada, the community action program that
administers the local

continued on page 58
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INVENTIVE INCENTIVES

Neil Kelly Co.


Portland, Ore.

AVERAGE DIRECT JOB


COSTS $13,000
TYPICAL MARGIN

N/A
START-UP COSTS $15,000
TYPICAL CONTRACTING
CYCLE 2.5 months
FIELD VS. OFFICE 12 to 1

Better Buildings Performance


WAP initiative. According
to Kephart, the Building
America projects provided the opportunity his
company needed
to become a preferred
WAP contractor.

58

remodeerno | jlne 2011 |

he says. Between having the home


performance division and acquiring
a business [Seattle Design Build] in
Seattle, Im finding my way out of
this damn recession.
That way out would not
have been so easy had it not
been for the incentive programs that are encouraging
Oregonians to green their
homes. The Energy Trust of
Oregon provides incentives to consumers that are
financed through monthly utility
bills from Portland General Electric,
Pacific Power, NW Natural Gas, and
Cascade Natural Gas. Aside from
the cash payouts that homeowners
receive, there are also a variety of tax

credits for most of the upgrades.


Kelly also works with Clean
Energy Works Oregon, a statewide
program that began in Portland
as a result of $20 million in ARRA
funding, and thats what launched
us up to the $1.3 million in business,
he says.
Kelly believes that the energyefficient retrofit industry is not a fad.
We will be back in those houses
in 10 years to do a deeper retrofit,
he says. The reality is that energy
prices are going to keep going up
and based on that and global warming, deep energy retrofits will be
the standard in 10 to 20 years, if not
sooner. Any remodeler not getting
into this business will be left behind.

continued from page 56

He stresses that, all things


being equal, BBS could
have gotten onboard with
WAP without the Building
America connections,
but it was the experience
the company and crew
gained while working
on those projects
that made them
more appealing. To
qualify, BBS had to meet
standard state certification guidelines
as well as financial

capacity. Because they


are federal dollars, the pay
cycle is lengthy, he says.
Sometimes it gets up to
60 or 90 days and some
have made it over 200
days. They pay, but the big
question is when.
WAP has proven to
be profitable on a large
scale. Not only that, but
BBS employees are putting the skills they learned
on WAP jobs to use on
retail projects and other

private-sector jobs.
The result has been
about 200 retail retrofits,
which Kephart says are
extremely profitable.
Were netting about 4.5%
to 5% net profit in weatherization alone, he says.
Overall, we have about
7% profitability on all projects, which is completely
different from about five
years ago. But 7% is better
than what I get at the bank
in the long term.

remodeernomao.gom

Photo: Ty Milford/Aurora Select; illustrations: Doug Ross

BY THE NUMBERS

Tom Kelly, president of Neil Kelly


Co., didnt just jump on the home
performance bandwagon, he took
the drivers seat. Get Kelly talking
about the weatherization division
that Neil Kelly Co. started four years
ago and you can see where his passions lie. Im a person who believes
that global warming will continue
to get our attention in ways we
dont even understand yet, he says.
Theres a tremendous amount of
satisfaction in being a part of the
solution to that.
Kelly also likely finds
satisfaction in the business
that retrofits have brought
to the company: in 2009
NKC pulled in $480,000
in home performance
jobs. In 2010 that number
was $1.3 million, and Kelly indicated that after a lengthy appraisal
of jobs on the horizon, 2011 is going
to double last years numbers. Like
everyone in the industry, weve been
pretty challenged by the economy,

BY THE NUMBERS
AVERAGE DIRECT JOB
COSTS $7,500
TYPICAL MARGIN/NET

13% / 4%
AVERAGE NET $11,700
START-UP COSTS $25,000
TYPICAL CONTRACTING
CYCLE 60 days
FIELD VS. OFFICE 8 to 3

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Under My Skin

BEFORE

Prenished ber-cement
lap siding and new asphalt
comp roong with extended
rakes and eaves and new
gutters not only deliver
durability and good looks
but also mask a signicantly
upgraded thermal envelope.

during

BEFORE
after

Adding
Muscle
| BY RICH BINSACCA |

Photos: after (top), Matt Teuten/Aurora Select

sealing techniques, fenestration,


To passersby, the little house
on the corner of Shirley Avenue and claddings that reduced the
homes energy use by nearly
and Hilltop Drive in Millbury,
Mass., looks like it got a new roof 60% and created a comfortable
indoor environand a fresh paint job.
ment and earned
But beneath that skin Deep Energy Retrofit
LOCATION: Millbury, Mass.
the owners a sizable
of new ber-cement
SIZE: 1,196 square feet; 1.5 stories
with
conditioned
unfinished
rebate from the local
lap siding and asphalt basement
utility. The scope also
composition roong
COST: $93,000 (less $42,000
utility rebate)
included extending
is a lot of new muscle, COMPLETED: December 2010
REMODELER: Synergy Companies
an existing dormer
too. Synergy ComConstruction, Leominster, Mass.
along the entire back
panies Construction
of the house and
applied a Deep Energy Retrot to the 1950sera,
upgrading the heating and coolCape-style house, an integrated
ing system with right-sized
combination of various insucapacity per the homes vastly
lations, weather barriers, airimproved thermal shell.
Rich Binsacca is a freelance writer in Boise, Idaho, whose articles appear in several Hanley Wood magazines.

eerooellngrgg.cor

| june 2011 | eerooellng

61

BEFORE
after

Beeng Up
of 2-inchthick foil-faced polyisocyanurate foam panels to the roof
and sidewalls, as well as a ash of
spray foam and R-30 batt insulation
to the attic rafter cavities. Battens
fastened to the outer insulation
layers provided a nailing surface for
the new siding and roof nish.
For the conditioned basement,
Synergy insulated the inside of the
concrete walls to R-20 with 3-inch
thick foam panels and applied expanding spray foam insulation to the
backsides of the mudsill. Meanwhile,
the slab oor was built up using a
drainage mat, a polyethylene vapor
barrier, and R-10 2-inchthick foam
insulation panels all taped and
sealed at each stage and joint. A new
tongue-and-groove suboor tops the
assembly to accept the owners eventual choice of nished oor materials.

Extending the Dormer


With the budget tight, the owners set aside
their plan to extend the existing center dormer along the rear elevation until Synergy
Companies Construction suggested simply
framing and insulating the enclosure so it
could be finished inside later. Although this
added about $7,000 to the budget (including beefed-up framing to support the extra
load) it also added valuable square footage
upstairs without changing the homes overall
footprint. The suggestion also ensured that
the benefits of the DER would be preserved.
Otherwise, cutting into the shell later would
have compromised the envelope we had created, Synergys CEO Gary Bergeron says.

BEFORE

Ending Ice Dams


Synergy Companies Construction extended
the rakes and eaves of the new roof past the
horizontal plane of the sidewalls to even out
the temperature across the roof surface and
to eliminate the formation of ice dams at the
gutter line and potential moisture problems. Clients are always amazed as they
look around at their neighbors ice dams
and realize they no longer have to deal with
this issue, Bergeron says.

A Better Shell

Encompassing the roof,


sidewalls, and conditioned
basement, the DER specs
created a superinsulated and
airtight shell using a variety of
products including triple-glazed
windows. All joints and corners
at every stage and every layer
are taped and/or sealed to effectively block thermal transfer.

62

remodeerno | jlne 2011 |

remodeernomao.gom

Photos: top right and bottom left, Matt Teuten/Aurora Select

Creating a tight and insulated building envelope is the cornerstone of


a Deep Energy Retrot. To qualify
the home for the maximum $42,000
rebate from the local energy utility,
the project addressed the roof, sidewalls, and basement with various
combinations of insulation, weather
barriers, sealants, and fenestration.
Synergy Companies Construction
rst removed the old comp roof and
vinyl siding to reveal and clean up
sections of the roof deck and sidewall sheathing.
To inhibit air and moisture inltration, a self-adhering membrane
covers the roof deck, and housewrap
covers the sidewalls. The roof membrane overlaps the housewrap and
the housewrap extends past the mudsill to create a continuous barrier.
Synergy then applied two layers

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BEFORE
after

The Deep Energy Retrot program


(see sidebar, below) also supports the
use of upgraded heating and cooling
equipment and fresh-air ventilation
to promote healthy indoor air quality
all of which are part of this project.
Existing inefficiencies: A 30-yearold oil boiler provided baseboard heating and drove a conventional water
heater. But the boiler was no match for
the drafty home, resulting in temperature swings from room to room. A
pellet stove helped, but only a little.
Correct capacity: A mini-split
system is right-sized for the superinsulated home; a pair of air handlers are
ducted to every room and powered by
a heat pump outside, maintaining the
house at an even temperature. A controlled fresh-air ventilator maintains
healthy indoor air in the tight house.
Tankless job: A natural gasfueled
tankless water heater now serves the
entire house, providing hot water with
far fewer carbon emissions.

Layered Approach
Laying it on thick (and tight) for a high-performance shell

Air/Moisture Barrier

A self-adhering membrane
over the roof deck (black
sheeting) overlaps the white
housewrap on the sidewalls
for a continuous air barrier
over critical joints.

Deep Energy Retrofits


Since 2009, National Grid, a
regional electricity and natural
gas utility serving the Northeastern U.S., has dispensed approximately $354,000 in rebates to
homeowners who qualify under
its Deep Energy Retrofit program.
That the money has been
divided among just seven homes
to date an average of more
than $50,000 each speaks as
much to National Grids commitment to fulfill the intent of

64

remodeerno | jlne 2011 |

Massachusetts Green Communities Act of 2008 as is does to the


programs economic impact on
energy-conscious homeowners,
remodelers, and products suppliers hampered by the recession.
The program is funded by
a state-mandated surcharge
on the energy bills of National
Grids 1.2 million electricity and
825,000 natural gas customers
in the Bay State. It leverages the
expertise of Building Science

Insulation Panels

Two layers of 2-inchthick,


foil-faced foam panels are
applied over those barriers,
with each joint and corner
taped and sealed per layer.

Corp. and has qualified


36 contractors to help homeowners achieve at least a 50%
savings in their energy demand.
DERs focus on a comprehensive, integrated approach
to insulation and tight building
techniques, HVAC, water heating,
and fresh-air ventilation, resulting
in healthier indoor air, fewer and
lower-cost repairs/replacements
of systems and exterior finishes,
and greater housing value.
To qualify for the rebate, applicants must present a proposal,
remodeernomao.gom

Triple-Pane Windows

New windows (sans A/C


units) were installed over the
second layer and ashed and
tape-sealed to the panels;
jamb extensions create deep
window sills inside and
new napping spots for the
owners cats.

secure at least $50,000 in their


own funding, and participate in
promotional efforts such as open
houses to spur interest. All of the
projects have a key renovation
driver, such as major remodeling
or replacement of an aging roof,
says Ed White, vice president of
Energy Products for National Grid.
Designed to run through 2012
for customers in Massachusetts
(and through this year in Rhode
Island), the program had 30
homes in the application pipeline
as of late April.
|

Photos: courtesy Synergy Companies Construction

Right-Size It

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[ STEP 1 ]

Need It?
Five years ago, if you built and marketed a website, people would visit it,
says Marty Gould, president of Focalize
Consulting. Now its not so simple. Social media has changed how people use
the Internet, Gould says. A company
website is no longer a destination
its just part of the online ecosystem.
Gould says that a homeowner curious about a remodeling company may
well visit Facebook before checking
out the companys website. Facebook
interactions give the prospective client
a feeling for the companys culture,
attitude, and reputation.

Mike Patterson agrees. I created


my Facebook page because it seemed
to me that a website only was too
static, says the president of Patterson
Builders-Remodelers, in Gaithersburg, Md. Clients who are interested in what I have to say, who like
my style, those people have already
developed a bond with me and qualied my company before weve even
met face to face. That rst sales call
is more like chatting with a neighbor
than selling something.
Key to success: Check around
Facebook to see if your competitors
are there. If they are, chances are you
should be too.

[ STEP 2 ]

Plan It
A cardinal sin of social media is having a public platform and not using it.
One of the biggest mistakes a company can make with Facebook is to
start and then just stop, says Corey
Perlman, owner of Web consultancy
eBootCamp. Leaving your page
hanging on the vine doesnt just look
bad, it also invites spammers, which
really diminishes your brand.
Once youre prepared to spend time
building and using a Facebook page,
determining who will manage the page
and its content is the next important
step. At Meadowview Construction, in
Georgetown, Mass., company president
and self-described social media junkie
David West manages the companys
Facebook page. My personality comes
through, West says, and the page has
a fun, funny tone thats reective of me
and my business.
But Gould says business owners
shouldnt feel obligated to shoulder all the Facebook responsibility.
Everyone in the company should
be empowered to be a content
provider, he says. Remodelers can
outline with employees what type of
content belongs on the site and how
to share it in a way that will keep
users engaged.
Key to success: Facebook posts
should reect the companys personality while staying relevant and
professional. Use common sense
and decorum.
continued on page 72

Resist Temptation

70

remodeerno | jlne 2011 |

examples of construction dos and donts, articles about


trends, or news in our area. I try to be an information source,
even if they dont hire us.
Ben Thompson, president of Thompson Remodeling, in
Grand Rapids, Mich., says communicating on Facebook can
help to build relationships offline. Facebook is great for checking in with clients and seeing whats going on in their lives,
he says. Then, when you meet them out in the world, you can
engage them on topics you know are important to them.
Perlman says that once a company has effectively
engaged its fanbase, then youve earned the right to softly
promote your business.

remodeernomao.gom

Illustrations: Tom Deja

Web experts and Facebook users agree on one thing: a Facebook page should not be considered a primary sales tool.
Business owners have to see Facebook less as a billboard and more as a platform for engaging their community, says Corey Perlman, owner of eBootCamp. When I use
Facebook, I ask myself how our company can help people,
even if they dont hire us. You have to make it about the
people using the page. Not about yourself.
David West agrees. Facebook lets you show people who
you are personally, says the president of Meadowview
Construction. I can tell someone Im trustworthy, but on
Facebook I can post information that illustrates that, like

SOLUTIONS THAT ARE THE DIFFERENCE BETWEEN


BEING CALLED BACK AND BEING INVITED BACK
There's completing a project. And then there's building relationships. At Sherwin-Williams, we know that a
project is more than just a job, which is why remodelers count on us as a trusted partner. Our wide range of
quality paint, stains, concrete coatings, equipment, supplies, and ooring help you exceed customer
expectations and maximize prots.
With convenient locations, expert color selection tools, discounts and even EPA RRP certication sessions, we
can assist you with any facet of your project. Sherwin-Williams is the single-source supplier that allows you
to quickly move on to the next job without the worry of callbacks. Unless, of course, those callbacks
include dinner.
Call 800-524-5979 to have a representative contact you or visit sherwin-williams.com/pro.
Go to http://remodeling.hotims.com for more info

2011 The Sherwin-Williams Company

Continued from page 70

[ STEP 3 ]

Facebook. Fast.
Build your page faster than you can say status update

Build It
Building a page is the easiest part of
the Facebook process. Follow the four
quick steps at right and youll be part
of the social media world in no time.

Visit www.facebook.com/pages and click the Create Page button on the far right.

Key to success: Be prepared to


populate your page with content right
away so your rst fans have something to see. Project photos, seminar
and event dates, and a welcome
post are good options to start with.

[ STEP 4 ]

Share It
Facebook has built-in tools to help
you invite friends to like your page.
Beyond that, businesses should add a
Find us on Facebook link, badge, or
Facebook logo to their site, newsletters,
print ads, and other communications.

Choose the type of page you


want to build. The Local Business or Place option makes
sense for most remodelers.

Fill in the blanks with your basic


company contact information,
agree to Facebooks Terms of
Service, and click Get Started.

Key to success: Once your page has


25 fans, visit facebook.com/username.
There, you can create a custom URL
that will make your page easier to
nd. Remodeerno can be found at
facebook.com/RemodelingMagazine.

[ STEP 5 ]

Use It
New social media users often wonder how frequently they should post.
Perlman says theres no magic number,
but once a day is a good rule of thumb.
Vary the time of day that you add
content, he advises. If youre always
posting at 9 a.m., you will only reach
people who are also on Facebook at
9 a.m. Users who check their page at
lunch might never see your posts.
Luke Syers, marketing coordinator
at Highcraft Builders, in Fort Collins,
Colo., posts as often as good content
presents itself. Facebook, he says,
doesnt have to be time-consuming.
Social media is a task I t in between
other work, Syers says. I always make
sure to post at least one item on Facebook, LinkedIn, and Twitter on a weekly

72

remodeerno | jlne 2011 |

Rejoice! Youve done it! Once your page is up, Facebook walks you through
everything from adding a prole photo to inviting people to like your page.

basis. I do spend a little extra time trying


to network with other local companies
by liking their pages or following them
and hoping they return the favor.
West prefers a higher posting
frequency. If you think people will see
everything you post, youre wrong, he
says. He estimates that most users only
see about one third of the posts on their
feeds in a day. Using that estimate, West
says, if you want people to see one
post from you every day, you have to
post three times.

But users shouldnt feel pressured


to post multiple times a day. The company should update as often as it can
come up with things that are of interest
to the people who its trying to cultivate
as customers, he says.
Key to success: Use page insights and
post analytics to monitor the types of
posts that generate the most feedback,
and even the days or times of day that
seem to be most popular among your
pages fans.
continued on page 74

remodeernomao.gom

Look for companies mentioned


in this article at
facebook.com
/meadowview
construction
/thompson
remodeling
/highcraft
builders
/ebootcamp
/patterson
.builders
.remodelers.llc
and focalizenow
.com.

Go to http://remodeling.hotims.com for more info

Page Anatomy

Facebook page administrators have special tools only they can view
Edit Page

Most Facebook interactions will happen


through the Wall, but page administrators can
click Edit Page to update everything from the
companys contact information to managing
user permissions to updating the prole picture.

Admins

Page administrators (admins) can add and edit


content on a Facebook page. The page creator is
the default admin and can allow or invite other
users to be admins. The admins list is not viewable to general page visitors.

Use Facebook As ...

Facebook allows pages to act as individuals.


By choosing to Use Facebook As [your page],
administrators can post and interact with other
users as the page, rather than as a person.

Insights

This tool allows admins to view user activity on


the page. Insights include everything from the
number of likes (formerly called fans) and
post views to page user demographics.

Likes

Admins can view the names of all the fans


of their page here. The list can be sorted by
individual people who like the page or by other
pages that like the page. For instance, if your
tile setters company has a Facebook page, your
page can like their page and vice versa.

Post Analytics

To keep tabs on how posts are performing, take


a look at the analytics under each post. Impressions measures the number of times a post has
been rendered on users browsers. The feedback
percentage is based on the number of likes
and comments on that post.
Perlman says Insights and analytics can
be useful, but dont watch them too closely. If
you look at the data week-in and week-out, its
like looking at your stocks too closely, he says.
Instead, watch them over time and make sure interactions are good and increasing. That can help
you nd your rhythm of what and when to post.

Still have questions about the


details in this
article or about
something not
mentioned here?
Message us on
Facebook, or
e-mail lhunter@
hanleywood.com

Dual Personalities

74

remodeerno | jlne 2011 |

ness owner maintain a personal prole on Facebook


for friends and family while simultaneously building
professional relationships on the company page.
Fear not: neither the twain shall meet (unless
you want them to). Personal friends must like your
company page in order to interact with it, and fans
of your page must specically request to be your
friend (or you, theirs) for either of you to see interactions on your personal proles.

remodeernomao.gom

Illustration: Tom Deja

Many business owners wrestle with the question of


how best to interact with clients and prospects on
Facebook. Should you be friends on your personal
prole? Create one prole for personal use and one
for business? Or is a company page the way to go?
Facebooks Terms of Service helps answer those
questions, specically stating that users may not
create more than one personal prole. As such, a company page is usually the best option. It lets the busi-

Find a New Direction...


AND Get There.

I want to hire an ofce manager... or


should I hire a lead carpenter?
I dont know who to hire rst.

e more
able to provid
I want to be
ees. Where
oy
pl
em
y
m
benets to
do I start?

I should have
taken more tim
e
with the estim
ating. Now wh
at
am I going to
do?

The 2011 conference program features intensive training in core business practices every contractor must
SRVVHVVSOXVDKXJHQXPEHURIEUHDNRXWFODVVHVWROOWKHJDSVLQ\RXUOHDUQLQJQHHGVZLWKPRUHLQWHUDFWLRQDQG
SHHUWRSHHUQHWZRUNLQJ'HYHORSHGLQSDUWQHUVKLSZLWKDJURXSRIH[SHULHQFHGFRQWUDFWRUVIDPLOLDUZLWKWKH
GDLO\RSHUDWLRQVRIVPDOODQGODUJHFRPSDQLHVour 2011 program can help you build a solid road map to
successFXVWRPL]DEOHWR\RXUEXVLQHVVJRDOV





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%HRQHRIWKHUVWWRH[SHULHQFHWKLVZKROHQHZDSSURDFKWRHGXFDWLRQ Registration opens mid-June!

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$OORI7KLVIncludes8QOLPLWHG7KUHH'D\([KLELW+DOO$GPLVVLRQ

CHICAGO 2011
Exhibit Hall: October 1315 /// Conference: October 1215
Lakeside Center at McCormick Place /// Chicago, IL USA
RemodelingShow.com /// 866.860.1964

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BRIGHT

IDEAS

On a Mission

Take Your Temperature


Get an incandescent look with LEDs and CFLs
BY NOW, CONSUMERS are used to seeing
pig-tailed compact fluorescents (CFLs),
finned LEDs, and other unique shapes
in the light bulb aisle. The legislated
phase-out of incandescent lighting
begins in 2012, and numerous options
are available to fill the void.
Still, some homeowners
are concerned that CFLs
and LEDs will create a cold
and sterile world, lacking the
warm glow were used to.
Not so, lighting manufacturers say. According
to Kichler Lighting, LEDs
produce light output with

To watch Lauren
Hunters interview with Jeff
Dross, hold your
reader over this
barcode.

75% less watt consumption than incandescents without compromising brightness,


light reach, or warmth. Jeff Dross, the
companys corporate director of education
and industry trends, puts concerns to rest
with a lesson in Color Temperature 101.
On the Kelvin temperature scale, the 2,800 K
3,100 K range is ideal for
residential applications.
Additionally, Dross says, look
for a high Color Rendering
Index (CRI) of 80 to 100 to
help ensure that colors under the light are precise and
correct. Lauren Hunter

The Right Light

The Kelvin scale, illustrated above, is the unit for measuring


the color temperature of a light source. Warmly glowing lights
measure lower on the Kelvin scale, while higher numbers indicate a blue or white color temperature. To address homeowner
concerns that high-efficiency bulbs glow too blue, more LED
and CFL bulbs are being introduced in the warmer range.

The four-light Hyde Park T Mission chandeliers stylized lanterns accent a range of
Mission and Craftsman architectural styles.
Features include:
Beige lanterns with blue accent art glass
in a geometric design
Mahogany bronze powder-coat hardware
Standard size of 25 inches wide by
35 inches tall
Custom sizes, styles, and colors available
Meyda Lighting | 800.222.4009 | meyda.com

Smarter Dimmer

The C-L dimmer family works with


incandescent, halogen, CFL, and LED
bulbs. Engineered specically to address
issues commonly encountered when dimming CFLs with standard dimmers, the
C-L product line incorporates advanced
circuitry that can handle high-efficiency
bulbs, as well as a mixed load of light
sources on the same circuit.
Lutron | 800.588.7661 | lutron.com

Tuning in to a New Channel


KitchenBathChannel.com offers a suite of marketing tools
for K&B pros that includes a
YouTube video channel and an
application for smart phones to
help consumers nd K&B professionals in their area.

78

remodeerno | jlne 2011 |

The app provides a free listing


of 15,000 professionals, as well
as paid subscription levels for
designers and remodelers ($200
gold, $300 platinum) that offer additional benets such as the ability to include photos and video.

Pro subscribers can


categorize their companies
by room/specialty (kitchen,
bath, deck, etc.), and by
the products they carry
(cabinets, countertops, etc.).
The creators hope that as more

remodeernomao.gom

consumers visit the


site, KitchenBath
Channel.com will
increasingly become
a destination for
homeowners, driving more consumers to K&B pros via the app.

More details
about this
app at http://
go.hw
.net/k+b

Can You Handle the


For most of us, its harder to perform when the
pressures on. The same is true for ventilation
fans. In a typical installation, the build-up of
static pressure can result in reduced airflow.
But a Panasonic WhisperGreen with
SmartFlow technology helps to deliver a
consistent CFM output even at .25" w.g.,
the standard required by ASHRAE 62.2 and

most current building codes. A WhisperGreen


fan is also remarkably quiet, and incredibly
energy efficient. In fact, that's why weve been
named an Energy Star Partner of the Year. No
pressure, but we challenge you to nd a better
fan than a Panasonic WhisperGreen.
Learn more at panasonic.com/remodeling

Go to http://remodeling.hotims.com for more info

COUNT ON US
1,350 locations. All 50 states. 300 showrooms. 17,000 associates.
58 years in business.
At Ferguson, its true that our inventory is huge with thousands of your top items in stock every day.
And we ll your orders accurately and right away. But there is one thing we supply that plumbing professionals
have come to rely on again and again for over 58 years - our people. Our associates make certain you can count on
Ferguson - where friendly service, expertise, and a willingness to go the extra mile are never in short supply.

FAUCETS
FIXTURES
APPLIANCES
LIGHTING
Go to http://remodeling.hotims.com for more info

FERGUSON.COM
Nobody expects more from us than we do
2011 Ferguson Enterprises, Inc. All rights reserved.

Efficiency on a Budget

Condo receives cost-effective energy makeover


the rwner rf this condo, in Lyons,
Colo., came to Dusel Custom Builders
to remodel her kitchen and to address
energy-esciency issues revealed by
an energy audit. The goal: an energyefficient home on a $25,000 budget.
Company owner Clay Dusel says
the team used the original audits
infrared images to identify leaks in
the thermal envelope but worked
with another consultant, Mark
Bloomeld of Sustainably Built, to
make decisions about upgrades.
The condo, part of a four-unit building, offers energy-esciency advantages,
Dusel points out, because theres less
exterior wall to insulate. And, he adds,
as energy prices climb, an insulation
package is an easy sell to homeowners.
For the interior walls where Dusel
removed drywall, he lled the stud
bays with Icynene open-cell spray
foam and added -inch rigid foam to
form a thermal break under the new

drywall. In areas where the existing


walls remained intact, he removed the
exterior T1-11 siding, installed 2-inch
rigid foam, then replaced the siding.
He didnt use this method on those
walls where he had added Icynene to
the interior because the exterior faces
were complicated, and replacing the
siding was cost-prohibitive.
Condensation resulting from the
35-year-old condos poorly vented
berglass-insulated ceiling had caused
the roof sheathing to rot. The roof had
already been replaced; Dusel sprayed
Icynene foam between the rafters. He
also pulled up sections of the subfloor
and sprayed foam on the rim joists.
Once the remodel was complete,
the homeowner hired a solar contractor to install photovoltaic panels
(photo, top right). Due to the other
energy upgrades, the solar system
was 40% smaller than originally
designed. Nina Patel

The client wanted more


windows for natural light
(above). The team chose two
types of window. Southfacing walls use local
supplier Serious Materials

triple-pane windows, with


a high solar heat gain coefcient to allow winter sun to
warm the house. Other windows are more cost-effective
Marvin Integrity berglass.

Power Full
FHA program to help owners make energy upgrades
IN LATE APRIL, HUD Secreteray Shaun
Donovan and U.S. Department of
Energy Secretary Steven Chu unveiled
a two-year pilot program designed
to help consumers fund home energy
improvements.
With the Federal Housing Authoritys
PowerSaver program, eligible homeowners may borrow up to $25,000 at
fixed rates between 5% and 7% for as
long as 20 years to finance retrofits
such as high-efficiency windows and
doors, heating and ventilating systems,
solar panels, geothermal systems, and
insulation and duct sealing.

30,000

Loans are available


used as an incentive
from 18 regional and
Number of homeowners for homeowners to
local banks for qualified
make energy efficiency
expected to take advanborrowers: those who
upgrades. While energy
tage of the PowerSaver
own and live in their
audits wont be mandaloan pilot program
single-family detached
tory, participating
home, are a solid credit
lenders will encourage
risk, and do not have negative equity
homeowners to get them.
in their home. FHA will back the loans
Dont confuse the PowerSaver loan
but will only cover up to 90% of the
with Fannie Maes energy improvement
loan amount in the event of default. Its
mortgage, which folds the costs of
improvements capped at 10% of the
important that people have skin in the
homes post-improvement estimated
game, says Bill Armstrong, treasurer
market value into the mortgage
of the National Association of Realtors,
amount itself. Stacey Freed
who is glad to see this type of vehicle

reerdeoinleal.gre

| june 2011 | reerdeoinl

81

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SIDING + WINDOWS

Mix & Match

Stylish design ideas sure to boost curb appeal


weve sard rt before, and well
say it again: Homeowners are
increasingly investing in ways
to make their existing home
designs work better for them
since many owners are deciding
to stay put rather than move.
But good design doesnt stop
at the kitchen, the bathroom,
the clever under-stairs storage,
or the creative shifting of room
functions. Exteriors must also
work hard. More than offering safety from the elements,
siding boosts curb appeal and,
when done well, wraps the
house like a gift that homeowners get to open every time they
pull into the driveway.
Siding programs such as
Ply Gems Designed Exterior
(designedexterior.com) and
Exterior Portfolio by Crane
(exteriorportfolio.com) have
had great success in giving
contractors and remodelers
easy access to siding design
ideas and the products to
bring those ideas to life.
Building on this mix-andmatch concept, the collection of products on this page
represents a range of products
currently available. Choose
one item from each row
and youre on your way to
a new stylish exterior design.
Lauren Hunter

Find this article


at http://go.hw
.net/r-products
to see a slide
show with
complete details
for these and
other siding
products.

84

remodeerno | jlne 2011 |

Structure EPS

CraneBoard

HardieShingle

Laurel Cavern Ledge

LedgeCut33

SureTouch

VersaWrap

Kleer

IQm Trim

Get an R-value boost from insulation behind 16 colors in standard


or long lengths. Mastic by Ply Gem |
800.788.1964. | mastic.com

Accent an array of siding with


four region-inspired color blends.
StoneCraft | 888.580.6448 |
stonecraft.com

A weighty 8x8-inch column size


was introduced to meet customer
demands. Versatex | 724.857.1111 |
versatex.com

A range of new darker colors


makes for a bold design palette.
Exterior Portfolio by Crane |
800.366.8472 | exteriorportfolio.com

Three color options let users lend a


dry-stacked linearity to any project.
Eldorado Stone | 800.925.1491 |
eldoradostone.com

Choose from 18 proles of PVC


molding for that nishing touch.
Kleer Lumber | 866.553.3770 |
kleerlumber.com

remodeernomao.gom

Available in three edge proles and


27 colors to offer texture to designs.
James Hardie | 888.542.7343 |
jameshardie.com

A unique backing system helps


stones install like color-by-number.
Simply stack and grout. Oldcastle |
877.506.2745 | suretouchusa.com

An itegrated n and J-channel


help boards work hard in all
17 colors. IQm | 888.289.1169 |
iqmtrimboard.com

IN THE SPOTLIGHT: SALVAGED MATERIAL

Testing Vinyl
After the Vinyl Siding Institute
(VSI) defined insulated vinyl
siding to mean siding with
rigid foam insulation integral
(attached) to the panel, more
verification steps followed. We
knew we needed to look into
testing to determine the R-value
of insulated vinyl siding, says VSI
president and CEO Jery Huntley.
Being internationally accepted,

ASTM C1363
is the standardized testing method for Thermal
Performance of Building
Materials and Envelope
Assemblies, including
insulated vinyl siding
we knew we could ask our members to test to ASTM C1363 and
the results would be reliable.
Huntley says that all 12 VSI
manufacturer members in the
U.S. and Canada are making insulated vinyl siding, and all are testing to ASTM C1363 to determine
their products R-values.
The organization next wants
to develop a program that would
certify insulated siding to validate a minimum R-value. Weve
seen so much greenwashing in
the building industry, Huntley
says. But by adhering to these
testing standards, we know our
members are laying a good, honest foundation to help consumers meet their energy-efficiency
goals. Lauren Hunter
|

Reclaimed Rustic
Part of the Custom Wood Line, reclaimed wood windows and doors are made from
Douglas fir originally used for fencing, barns, houses, and factories. Some of the material is sourced from snow fences previously used to prevent snowdrifts on highways,
which speaks to the materials durability. Exterior cladding is available for added
protection, or users can mix-and-match planed finishes on windows with weathered,
skip-planed, or planed finishes on doors. Jeld-Wen | 800.877.9482 | jeld-wen.com

Composite Introduction
The Aeris Collection of windows and patio doors
includes the CX900 composite series in double-hung,
casement, awning, slider, bay, bow, and architectural
styles. The window is designed to offer the aesthetics
of wood without the maintenance. Features include:
A pine wood interior and co-extruded exterior
Solid-core frames and sashes
Exterior capstock available in six colors
Interior finishes: choice of 16 paint colors or 16 handapplied stains
Available options include simulated divided lites
ProVia | 877.389.0834 | aeriscollection.com

Safely Shuttered
Deployed electronically using a computer or Android smartphone, Home Manager ST users can schedule and program their
storm protection shades individually or in groups and can also
control compatible lights, sensors, and thermostats. Though
ideal for use in second homes where deployment can occur from
thousands of miles away, all Wisp storm shades can also be operated manually. The high-impact shades are made from a tightly
woven synthetic fiber and weather-resistant, pliable coating
for strength and flexibility in the face of 200 mph winds.
Wisp Windows & Doors | 877.939.9283 | wispwindow.com
reerdeoinleal.gre

| june 2011 | reerdeoinl

85

National Association of Home Builders

NAHB has always represented remodelers on


Capitol Hill with the power of:
Residential constructions largest PAC
More than 160,000 builder, remodeler and associate members nationwide
NAHB members also get economic data, market research, public relations resources,
educational opportunities and more.

Learn more: nahb.org/whynahbr

Scan this QR code for more information.


Henkel Corporation 2011

Go to http://remodeling.hotims.com for more info

Download the OSI


Color Cross Reference
at mobile.osipro.com

MOISTURE MANAGEMENT

SWITCH IT UP

Product: Water-Powered Back-up Sump Pumps

Have a product you love


or recently
had a reason
to switch
brands? E-mail
lhunter@
hanleywood
.com with
your story.

a power oltaoe was all it took for


one of Paul Hamtils clients to come
calling. Their power had gone out for
an extended period of time, and they
didnt realize that their sump pump
failed at some point during that time
frame, says the co-owner of Hamtil
Construction, in St. Louis. In addition
to cleaning up the mess, the company
replaced the primary sump pump and
sold the family a back-up pump as well.
Hamtil says he usually recommends that clients invest in a backup sump pump and that he prefers
using water-powered back-ups to
battery-powered units.
Battery-powered back-ups are
more common because theyre easier
to install, Hamtil says. I dont use
them because homeowners rarely
think about maintaining them and
changing the battery. If the battery

dies, the equipment is useless.


In choosing a water-powered
back-up, Hamtil recently made the
switch from Zoellers HomeGuard
Max 503 to Libertys SumpJet SJ10
(shown). I prefer using Zoeller
for primary sump pumps, but their
back-up unit had a lot of parts and
pieces to assemble, and a piece of
tubing that sometimes got pinched or
twisted if the sump pit was tight, he
says. There was a lot of potential for
something to go wrong over time.
The Liberty unit comes in one piece.
You just hook it up to the water supply and its ready to go, Hamtil says.
Theres a lot less chance of a failure
due to issues with parts and pieces, and
that was worth switching for. Hamtil
notes that Zoeller has since introduced
a one-piece water-powered back-up
pump. Lauren Hunter

Fewer parts and


pieces makes for
easier installation of the Liberty
SumpJet SJ10.
LibertyPumps
800.543.2550
libertypumps.com

Code Check
While St. Louis remodeler Paul Hamtil
prefers water-powered back-up sump
pumps for their reliability, he notes
that some localities require pulling a
permit and hiring a plumber to install
them. Battery-powered back-ups can
often be installed by anyone without
the need for a permit.

Smart Sensor

Cavity Filler

Dry Feet

Unlike most humidity sensors, the


WhisperControl Condensation Sensor
detects heat and humidity based on
dew point for more accurate operation.
New fan or fan/light combination units
can help meet a range of green building
standards. Panasonic | 866.292.7292 |
panasonic.com/ventfans

Suitable under multiple cladding types,


the StoEnergy Guard cavity wall system
helps boost energy efficiency while
maintaining drainage. The DrainScreen
mat component facilitates moisture
escape, helps dry out humid air, and
improves the R-value of the wall. Sto
Corp. | 800.221.2397 | www.sto.com

Delta Footing Barrier material resists


the capillary rise of moisture into
foundation walls. The three-ply material
includes a needle-punched polyester
fabric that mechanically bonds with
concrete, preventing the wicking of
water. Cosella Drken | 888.433.5824 |
cosella-dorken.com

REMODELING (ISSN 0885-8039) Volume 27, Number 6, is published monthly by Hanley Wood LLC, One Thomas Circle NW, Suite 600, Washington, DC 20005. Copyright 2011 by Hanley Wood LLC. Opinions expressed
are those of the authors or persons quoted. Reproduction in whole or in part prohibited without written authorization. REMODELING is sent free of charge to qualified readers involved in the remodeling industry. Publisher
reserves the right to determine recipient qualification. Out-of-field subscription rates: US and possessions: $44.95; Canada $59.95 (Canadian dollars); all other countries $65 (US funds). Single copy price: $8.00 except
Buyers Guide, $10. For subscription information, write Circulation, REMODELING, PO Box 3494, Northbrook, IL 60065-9831. Canada Post Registration #40612608/G.S.T. number: R-120931738. Canadian return address:
Pitney Bowes Inc., PO Box 25542, London, ON N6C 6B2. Periodicals Postage Paid at Washington, DC, and at additional mailing offices. POSTMASTER: Send address changes to REMODELING, PO Box 3494, Northbrook, IL
60065-9831. Member: BPA Worldwide (BPAWW) and American Business Media (ABM).

88

remodeerno | jlne 2011 |

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Go to http://remodeling.hotims.com for more info

With Aac, you know that if your employees get hurt or sick they will have a safety net. Aac
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Aac makes your benets

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Visit aac.com/sweetbenets, and see what all the buzz is about.

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be available as group policies. Group coverage underwritten and offered by Continental American Insurance Company. Policies may not be available in all states. Aac pays cash benets direct to the insured, unless assigned. Aac
processes most claims in an average of four days. For Continental American Insurance Company, the average is ve days. There may be indirect administrative or other costs.
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THE INDUSTRY SOURCE remodelingmagazine.com


OFFICIAL PUBLICATION OF THE REMODELING SHOW

October 2007

For his innovation, humanity,


and unshakable commitment
to sustainability, John Abrams
receives the first

Fred Case
Remodeling
Entrepreneur of
the Year Award
page 80

Event Collateral

Media Kits

Direct Mail

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Recruiting Packages

Presentations
Deconstructing
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What, exactly, is a design/build company?

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remodeerno | jlne 2011 |

f o r m o r e g r o d l c t r n f o o o t o h t t g : // r e m o d e e r n o . h o t r m s . c o m

SPECIAL ADVERTISING SECTION

Classifieds

FOR
INFORMATION
on how to be a part of the next
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section, contact Maura Jacob at
678.451.8627.

search.
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ebuild is the destination for construction pros searching


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| june 2011 | reerdeoinl

93

A2012007
General Conditions
of the Contract
for Construction

Build with an added layer of protection.


PLUS download the all-new Guide for Sustainable Projects, FREE at aia.org/sustainableprojectsguide

Take peace of mind to the next level with AIA Contract Documents. We are pleased to announce the new D503-2011, Guide for Sustainable Projects, including
Agreement Amendments and Supplementary Conditions. This guide provides users with a valuable reference tool when using key AIA standard contracts like A201-2007,
the most widely used Owner/Contractor agreement in the industry, to help address the unique concerns of sustainable construction. This includes information on
certication systems, codes and legislation affecting sustainable design and construction projects. It also includes model language to assist all project participants
in appropriately allocating risks and responsibilities. AIA Contract Documents are easy-to-use, widely accepted, and fair and balanced for all parties involved.

Download the new Guide for Sustainable Projects and learn more about our full
library of Contract Documents at aia.org/contractdocs or call 800-242-3837.
Go to http://remodeling.hotims.com for more info

Be More Than a
Remodeler

AD INDEX

For more information, go to http://remodeling.hotims.com.


Advertiser

Page

Advertiser

Page

3M ScotchBlue Painters Tape

42

NAHB

Aac

90

Nissan Commercial Vehicles

75

AIA Contract Documents

94

NT Window*

55

Andersen Windows and Doors

C4

OSI Quad Advanced Formula Sealant

87

OSI WINTeQ System

21

Arrow Fastener

11

AW Hastings/ Marvin Windows and Doors* 65

Owens Corning

AZEK Trim

Panasonic

BehrPro
Bosch

73
4
59, 67

PERC
PPG Industries

86, 89*

C2, 35
79
9
24-25

Calculated Industries

10

RAM Trucks

CertainTeed

32

Remodeling Show / Deck Expo

Crown Point Cabinetry

12

Rheem

eShield Technologies

41

Rinnai

Ferguson

80

Samsung Smart Inverter

51

Fiberon

53

Sherwin-Williams

71

Ford Commercial Trucks


GMC Business Central
GreenExpo365.com

14-15
55*, 76

2-3

Site Commander

65*, 82

31

Stanley Bostitch

22, 23, 40

45*, 66

The Energy Conservatory

95

Heartland Siding by ProVia

29

The Foundry by The Tapco Group

77

JELD-WEN Windows and Doors

57

The Home Depot

28

Kilz

16

Therma-Tru Doors

Leaf Solution

39

Thermo-Tech*

Liquid Nails Adhesive

83

TimberTech

Llumar

30

Trex Transcend

68

Loctite PL Pro Line

19

Veranda ArmorGuard

C3

Milgard Windows and Doors

36

Xpanse Greater Outdoors*

89

MoistureShield

63

*Issue mailed in regional editions.

6
45
46-47

The Minneapolis Blower Door


is The Leader in Airtightness
Testing for Home Performance
Contracting
Blower Door tests are used to
measure the airtightness level
of building envelopes, diagnose
and demonstrate air leakage
problems,
estimate
natural
infiltration
rates, estimate
efficiency
losses from
building
air leakage,
and certify
construction
integrity.
When you know how much the
house is leaking and where, you
will be the better informed and
better prepared contractor.
For more than 20 years, the
Minneapolis Blower DoorTM
has been recognized as the best
designed and
supported building
airtightness testing
system in the
world. Combined
with new features
such as Cruise,
specialized
accessories and
complete testing procedures
developed by The Energy
Conservatory, the Minneapolis
Blower Door is the system
of choice for utility programs,
energy raters, HVAC contractors,
builders, insulation contractors
and weatherization professionals.
Make the Minneapolis Blower
Door a part of your Home
Performance Contracting
business.
The ENERGY
CONSERVATORY
DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE

For more information call 612-827-1117


Or visit www,energyconservatory.com
Or email info@energyconservatory.com

Go to http://remodeling.hotims.com for more info

Auditing Efficiency
Checklist helps identify common areas where energy can be saved
remodeeer jeff oeeeer, owner of
Built Right Renovators, in Amityville, N.Y., uses the checklist below as a customer service tool that
helps to distinguish his remodeling
business in a competitive market.
The checklist audits the condition of common areas where homes
waste energy and water. Geller
couples it with a free Green Home
Conversion Kit tubes of sealant

and cans of spray foam insulation,


among other items, for spot DIY
energy-efficiency improvements
brought as a leave-behind on a rst
visit to a prospect.
The offer of the free kit helps
get me in the door, Geller says.
I ask if I can conduct the audit
when Im there, a tactic that often
leads to a redenition or expansion of job scope. It usually reveals

improvements that cost less and


have a better return on investment
than the cosmetic remodels Geller
is called to estimate and, he says,
it positions me as an expert,
creating trust that goes beyond
the price of the job. Geller prices
the items he identies for improvement depending on existing
circumstances. Rich Binsacca is a
freelance writer in Boise, Idaho.

Seal Up

Air leaks through the exterior envelope are most obvious


at mechanical service penetrations, such as where lines
for natural gas, water, and
electricity enter the house. In
fact, all penetrations into the
envelope should be sealed
with caulk or expanding
foam insulation.

Strip It

Few doors have perimeter


weatherstripping, says Jeff
Geller; that, or it has worn
away or shows gaps that
render it ineffective. His
Conversion Kit includes a
roll of weatherstripping, but
usually not enough to cover
the extent of what the
audit uncovers.

Low-Cost Option

Owners with old windows


often balk at the cost to
replace them for energy
efficiency, so Geller offers to
apply a thin layer of clear
plastic over the inside panes
that shrinks to the window
as a thermal barrier.

96

remodeerno | jlne 2011 |

Green Home
Conversion Audit
EXTERIOR AIR LEAKS
Cracks in the siding
At windows and doors
At kitchen and bath vent fan louvers
At dryer vents
Holes for mechanical services and equipment
Openings along the underside of the
lowest course of siding
Other unsealed openings
WEATHERSTRIPPING
All exterior doors and storm doors
Door sweeps and thresholds
INTERIOR AIR LEAKS
At the top of the foundation wall
At the wood framing that runs above,
around, and through doors, windows,
and baseboards
At electrical receptacles and switches
mounted on exterior walls
At replace(s)
At laundry chutes
At attic hatchway doors and pull-down stairs
At whole-house fan installations
At pipe and wire chases
At the HVAC lter
WINDOWS
Leaks in main oor windows
Leaks in 2nd oor windows
Leaks in basement windows
Leaks in storm windows
Unused windows that could be sealed off
Potential candidates for plastic energysaver
CLEANING AND MAINTENANCE
Refrigerator coils
Furnace lter(s)
Baseboard heater laments
Ducts
Obstructions at A/C condenser

INTERFACE OF SIDEWALL/
PORCH/GARAGE WALL
Leaks in bottom of wall(s) and door(s)
(s)
Leaks in wall penetrations
Missing or inadequate
te insulation
insul
ICE DAMS
Evidence of ice dams (visual inspection
from the ground)
Recessed can lights intruding attic space
Skylight or roof window penetrations
Vents and exhaust penetrations through
the attic
Proper roof ventilation
Proper attic insulation
ATTIC SEALING
Holes from conditioned space below for
mechanical runs
Air spaces around lighting xtures,
electrical junction boxes, and exhaust fans
Where partition walls intersect with the
attic-oor framing
Bulkheads over kitchen and bathroom
cabinets
At chimneys/ues adjacent to or through
attic
ATTIC INSULATION
Depth of attic insulation
Coverage of attic insulation
Dormers, bonus rooms, or above an
attached garage
Around attic door and/or pull-down stairs
WATER CONSERVATION
Age of water heater (debris to be drained?)
Missing or inadequate pipe insulation
Missing or inadequate water heater
insulation
Low-ow showerheads
Faucet aerators
Sweating or leaks around toilets

remodeernomao.gom

Cause for Catastrophe

Common in the Northeast, ice


dams form when snowmelt
freezes and dams up at uninsulated or unvented eaves.
As the ice melts, water can
wick under the shingles and
down the sidewalls, leading
to extensive (and expensive)
rot. Soffit to ridge venting and
adequate attic insulation help
to mitigate the problem.

Heat Loss

Up to 65% of a homes heat


loss is through the attic.
Sealing and/or insulating
penetrations into the attic
oor and roof can eliminate
most of that thermal transfer
and reduce heating energy
use in conditioned spaces.

Energy & Water

Insulated hot-water pipes


not only mitigate heat loss
through the pipes but also
help reduce the time it takes
hot water to reach a tap or
showerhead (lag time),
which saves water, too.

NOW, WITH A 140 DOG-YEAR WARRANTY

Go to http://remodeling.hotims.com for more info

New Veranda ArmorGuard capped composite decking is so durable, its backed by


a 20-year stain and fade warranty. Thats 20 human years for your customer. Plus, unlike
wood or traditional composite decking, it will resist mold and mildew. Veranda is installed with
ArmorGuard Hidden Fasteners for a smooth, fastener-free surface. Plus, its easy to clean and
comes in a choice of rich natural tones, namely Nantucket Gray or Brazilian Walnut. Veranda
ArmorGuard is available exclusively at the Home Depot. Learn more at goveranda.com.

AVAILABLE AT

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