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WE TAKE PRIDE IN HELPING BUILDERS PROTECT AND COVER THEIR ASSETS
AMERICAN INSURANCE ASSOCIATES, BLAINE INSURANCE SERVICES and CENTURY INSURANCE SERVICES are BIAW members and qualified agents of BIAW’s newest member benefit, the Building Industry Insurance Program (BiiP). As quail-
fied agents of BiiP, we can offer BIAW members competitive rates on builder’s risk, general liability and builders warranty products. Give us a call—it’s as easy as A-B-C— and see what we can do for you.
American Insurance AssociatesP.O. Box 850
Woodinville, WA 98072Shelli Lucus-Kennedy
Blaine Insurance Services838 Peace Portal Drive
Blaine, WA 98230Rob Bring
360-332-7300
EXPERIENCE. TRUST. RELIABILITY.Insurance Specialty Group offers
Builder’s Risk and General Liability
products, and Professional War-
ranty Service Corporation offers a
10-year Insured Builder Warranty
Program. ISG and PWC are expe-
rienced and trusted names you can
trust to protect your assets.
MBA of King & Snohomish Counties and Skagit/Island Counties Builders Associationmembers
BIA of Whatcom County member
HBA of Kitsap County and MBA of Pierce County member
Century Insurance Services3208 50th Street Court NW #104
Gig Harbor, WA 98335Susie Nelson253-851-9600
PAID ADVERTISEMENT2
EVP VIEWPOINTPRESIDENT’S PERSPECTIVE
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BUILDING INSIGHT//WWW.BIAW.COM
Keep it Simple:Housing supply and demand
Mid-year Summer Board BIAW members gather for awards, celebrations and meetings
Who We AreThe Building Industry Association of Wash-ington is the state’s largest trade association and represents over 8,000 member companies in the home building industry. Known as the “Champions of Affordable Housing,” BIAW is dedicated to ensuring and enhancing the vital-ity of the building Industry for the benefit of its members and the housing needs of citizens. 2014 Senior OfficersPresident Bob Johnson, CAPS, CGP Skagit/Island Counties Builders Association First Vice President Monty Smith, CAPS BIA of Whatcom County Skagit/Island Counties Builders Association Second Vice President Kevin KartakMBA of King & Snohomish Counties Skagit/Island Counties Builders AssociationMaster Builders Association Pierce Treasurer Dave Main MBA of King & Snohomish Counties Skagit/Island Counties Builders Association Secretary Patrick Hayes Skagit/Island Counties Builders AssociationMBA of King & Snohomish Counties Immediate Past President Audrey Borders BIA of Whatcom CountySkagit/Island Counties Builders Association BIAW StaffExecutive Vice PresidentArt Castle Administrative Services Director Jan Rohila Director of Insurance ProgramsFrank Romero Government Affairs Director Jan Himebaugh Building Insight questions/commentsCommunications and Publications Director Joshua [email protected] Building Industry Association of WA111 21st Avenue SW Olympia, WA 98501 360-352-7800 • 800-228-4229 www.BIAW.com
// EDUCATION HAS ITS ADVANTAGES 10
// MARKET DATA 18-19
// CUTS, SCRAPES & BUG BITES 5
// NAHB BEAM AWARD CALL FOR ENTRIES 12
// UNDERSTANDING NETWORK PROVIDERS 13
CONTENTS //3
AUGUST ‘14VOL. 24, ISSUE 8
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// WHAT IS A SPIKE? 9
SCHOLARSHIP WINNERSBIAW announces the 2014 scholarship winners
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Senator Sharon Brown addresses BIAW members during the BIAW Summer Board meeting General Membership Luncheon held in Pasco in June.
BUILDING INSIGHTwww.BIAW.com
// BOB JOHNSON CAPS, CGP
PRESIDENT
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TINGS They say ‘timing is everything’ or ‘what a difference a day makes.’ In
June, BIAW held its Summer Board meeting in Pasco. The weather was warm with sunny skies and temperatures in the 80s—it was a beau-tiful time for a golf tournament, and we enjoyed a lively Spike Party. This week, as I write this, my thermometer registers over 100 and there’s smoke in the air.
You may have wondered why BIAW Board meetings are held at various locations around the state. The Winter Board is a given, as we always hold it in Olympia to coincide with the Legislative Session. This provides BIAW members a chance to meet legislators on the ‘hill’, host our Legislative reception, and to thank those legislators who sup-port small business, the home building industry and help defeat bills
harmful to the building industry.The First Vice President, or President-elect, is given the opportunity to choose the meet-
ing location where they will be sworn-in, the Fall Board, and the Summer Board. I chose Pasco to try to provide some parity for our state meetings and travel distances for those who attend. The current BIAW leadership is mainly from Western Washington, but as a state association, I want all local associations to have an opportunity to attend our Board meetings and be represented. The Red Lion Hotel in Pasco also holds another draw for me personally. As I started in the trade as a bricklayer, the amount of masonry and the quality of brickwork at this facility is fantastic.
The Summer Board meeting was very productive for a number of reasons, starting with a premeeting retreat where members of the new Member Service Corporation met to establish operations criteria, policies, and transfer of responsibilities from the Washington Builders Benefit Trust (WBBT) as it winds down. WBBT is currently scheduled to dissolve in 2015 as the distribution of R.O.I.I. ® refund checks for the plan year 2011-12 are closed. Included with those refunds will be any money from the returned Resources/Peak lawsuit checks. As long as this process took, and the amount of money it cost, it lifted a load off our backs knowing it was finally going to be finished. Nearly 12,000 checks were distribut-ed, ranging from 1¢ to over $4200.
BIAW had been working from an interim budget since the first of the year, pending the outcome of the lawsuit and the final R.O.I.I.® Select adjustment figures. Fortunately, both results were positive. A budget for the balance of 2014 was presented to the Board and was approved.
For the first time in many years the National Association of Home Builders (NAHB) has a contested race for its 2015 Third Vice Chairman. Candidates Randy Noel (LA) and Dean Mon (NJ) were invited to BIAW’s Winter Board meeting for interviews. Randy Noel accept-ed, while Mon was able to attend BIAW’s Summer Board meeting. Both candidates were interviewed.
BIAW’s policy for endorsement was followed and an endorsement for Dean Mon was pre-sented to the Board and approved. It was noted that both candidates had strong support from BIAW and it was recognized that either would be very good for NAHB and BIAW. A formal resolution endorsing Dean Mon as the candidate for NAHB 2015 Third Vice Chair-man has been sent to NAHB.
Of all of the good things that happened at the Summer Board meeting, one of the highlights was the Excellence in Remodeling (EIR) Awards reception. This is a statewide competition that recognizes the state’s best remodeling projects and is open to all BIAW members (for a complete listing of winners, see the back cover page).
While the winning projects were remarkable, I felt it was unfortunate that just three of BIAW’s 14 local associations were represented (and all of these locals were located in Western Washington). I believe there are many qualified projects worthy of entry from more than one geographical area, and would love to see more locals participating in the 2015 awards. If your local association doesn’t have a Remodelers Council, get your local associ-ation Executive Officer involved. The EIR competition deserves better support from all 14 local associations.
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AUGUST ‘14VOL. 24, ISSUE 8
Last year, R.O.I.I.® Select incurred a substantial amount of workers’ comp claims due to injuries that were thought of as relatively small, insignificant, or insect bites but could have been avoided with first aid treatment.
While many of these claims were resolved as medical-only claims, claims that didn’t affect the employ-er’s experience rating or raise the employer’s workers’ comp rate they did impact R.O.I.I. ® Select and retro
refunds.Not to mention, the significant down time and lost
productivity when employees leave the jobsite to seek medical services. While an employer should never dis-courage an employee from seeking medical treatment or filing a workers’ comp claim, there is often a simple first aid treatment, when performed at the jobsite, that may avoid a more serious condition requiring treatment by a physician.
Many small cuts and abrasions go untreated and later become infected when bacteria enters the wound. An employee may also have an allergic reaction to a bee
sting or spider bite that could cause them to seek med-ical attention at a clinic or hospital.
To help your company reduce these types of injury claims, incorporate the following steps into your safety prevention program.
Or, better yet, schedule a company safety meeting on first aid preparation.
Step 1: Inform Employees of the Location of the First Aid Kit
Make sure all employees know where the first aid kit is
// BOB WHITE
R.O.I.I.® SELECT SAFETY SERVICES DIRECTOR
located, how to use it, and where specific items are locat-ed, such as bandages, disinfectant, and allergy medicines (some of which may be specific to individual employees). Additionally, be sure access to first aid supplies is conve-nient. Position the first aid kit on your jobsite close to where your employees actually work, otherwise it may be underused, and may result in future unnecessary costs to you.
Step 2: Communicate with EmployeesWhile employees are not required to notify employers
of medical conditions that could place them at risk of an industrial injury, keeping an open line of communication with your employees is important.
Asking employees if they’re al-lergic to bee stings or insect bites is very beneficial, both to them and you. Keeping proper medical treatment on hand can ensure their protection as well as yours. Specific medi-cines should be available and accessible.
Make sure employees know that reporting injuries to a supervisor is mandatory and administering first aid treat-ment for minor wounds and bites is company policy. If your first aid kit is easily accessible, it only takes a minute to apply a disinfectant and a bandage, or take an allergy medicine. Remember the old saying by Benjamin Franklin, “an ounce of prevention is worth a pound of cure,” or in this case, a simple spray may prevent a visit to the doctor’s office that could result in unnecessary time loss.
Also assign an employee to restock the first aid kit when supplies become low.
Remember, a little bit of preparation and forethought can go a long way in saving you and your employees valuable time and resources.
If you’re an R.O.I.I.® Select participant and have ques-tions regarding First Aid preparation or safety services, contact me at 360-352-7800, ext. 109 or [email protected].
If you are not enrolled in R.O.I.I.® Select and would like more information about the benefits of participation, please contact R.O.I.I.® Select Marketing Manager Lara Hastings at 360-352-7800, ext. 171 or [email protected].
Remember, a little bit of preparation and forethought can go a long way in saving you and your employees valuable time and resources.
CUTS, SCRAPES AND BUG BITESFIRST AID TREATMENT
EMPLOYEE COMMUNICATION AND ACCESS TO FIRST AID IS ESSENTIAL
BUILDING INSIGHTwww.BIAW.com
KEEP
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I read this article recently and while it is specific to a local development, the princi-pals it contains can be applied across the nation. I believe this piece represents the
current situation so well, I thought I’d share it with you as my Executive Vice President’s Viewpoint.
If you are a fan of The Office, you remember the advice that Michael Scott
gave to Dwight Schrute when it came to closing a deal? Michael told Dwight to “K.I.S.S.; Keep It Simple Stupid.” Michael Scott certainly wasn’t the sharpest tool in the shed, but he was on to some-thing when he realized the best ways to accomplish a task usually involved the simplest methods. This acronym, silly as it may be, is a cousin to another principle dating back over 200 years ago. The 19th century metaphysician Sir William Hamil-
ton is credited with coining the term Occam’s Razor. Like the K.I.S.S. acronym, Occam’s Razor promotes simplicity over complexity. It is the principle that in the absence of certainty, the sim-plest hypothesis or the hypothesis with
the fewest assumptions ought to be selected.When it comes to housing, the good news is that are some simple an-
swers. Slate‘s Reihan Salam recently wrote about San Francisco’s housing affordability conundrum (to put it lightly), tying astronomical prices to San Francisco’s stagnant housing supply in the face of incredibly high demand. Take it away, Mr. Salam:
Perhaps you believe, as many otherwise intelligent people do, that the law of supply and demand is somehow inapplicable to the hous-ing market. Consider the following. While San Francisco’s housing stock grew by 8.8 percent between 2000 and 2010, for an average annual growth rate just under 0.9 percent, the average annual growth rate of the housing stock in inner Tokyo was 2 percent. The shocking result is that while rents have been rising rapidly in San Francisco, they’ve been falling, albeit slightly, in Tokyo.
Any traded good (like housing) exists in a market; in a free market, the price of that good is set by the demand from consumers for that good, as well as the supply of that good. If demand goes up and supply is held constant, the price of the good goes up. If the supply stays constant but demand drops (how many VHSs could you buy today if you walked into a thrift store with $10?) then cost drops. If demand goes up and supply
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attle
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14 increases to keep pace with demand, costs will likely remain steady.
This principle applies to housing costs. It just does. And yet, many people remain skeptical that this relationship exists. I am not sure why this is the case, though I suspect it may have something to do with the inherent simplicity of the supply/demand relationship.
The housing issue is complex, so the answer for housing affordability must be complex! It couldn’t possibly be explained by such a simple concept! In point of fact, the housing issue is complex. An individual making 60% or less of the AMI may not be able to rely on the market to produce affordable housing. Government intervention is a part of the answer, including the housing levy and targeted sub-sidies for construction and tax abatement. But at the end of the day, unless we are ready to accept major tax hikes, the government will never have the capital to build enough affordable housing to actually make a dent in housing prices. The bulk of the solution will be market-driven.
This discussion is, of course, relevant to Seattle. Anyone looking for a new apartment or considering purchasing a home in Seattle right now is acute-ly aware of how crazy the market is. Seattle rents jumped 4.1% in the second quarter of 2014 alone. “But,” you ask, “isn’t Seattle going through a construc-tion boom?” Yes, it is. But remember, supply is only half of the equation.
The fact is, demand for Seattle living has not just matched supply, it’s blown past it. This explains the faulty logic by those who claim all the new, expen-sive apartments are driving prices up. They’re simply correlating what they see: Lots of construction and price increase all at once. In point of fact, the construction boom is the only thing keeping housing prices from spinning off into their own San Francis-co-like universe.
Both cities are highly attractive places where lots and lots of people want to live (read: demand). Yet neither is willing to sacrifice an ounce of “character” or “view protection” to allow enough new housing to meet that demand (read: supply). Even still, San Francisco, a city with 200,000 more people than Seattle, is building less new housing than we are. Is it any wonder they are, as Reihan Salam puts it, “America’s largest gated community”?
Seattle is currently on the same path, making similar mistakes San Francisco made decades ago. But it is not too late for a course correction. With the right policies in place, we can remain an incredibly vibrant, attractive city and provide housing at more reasonable prices for our citizens. I, for one, am grateful for Seattle’s growth and its attractiveness to the country and the world. Let’s celebrate that we don’t have a shrinking popula-tion like Cleveland and Detroit. And let’s work hard to be more welcoming to the newcomers who bring life, wealth and culture to our communities.
// ART CASTLEEXECUTIVE VICE PRESIDENT
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AUGUST ‘14VOL. 24, ISSUE 8
State Senator Sharon Brown, R-Kennewick was BIAW’s guest speaker for the Summer Board meeting’s General Membership Luncheon in June and what she said should bring hope and encouragement to the members of BIAW. Senator Brown’s presentation highlights a contingent of Washington State representation that has demonstrated commitment to growing Washington’s economy, restraining regulation, and who understands the invaluable benefits of a strong Washington home building industry.
While Senator Brown spoke on many issues that directly affect our economy and industry, such as the potential gas tax increases, she made a special effort to emphasize and point out the size and importance of our industry. As you can see in the charts, her numbers on the amount of money and jobs that the home building industry bring to Washing-ton are complimentary to our own. She pointed out that in 2011 there were 18,450 single-family building permits issued in Washington State resulting in more than 41,000 full time jobs.
Sen. Brown also covered the governor’s recent Executive Order 14-04, issued on climate change, that would create a 21-member task force to design a cap and tax program for 2015. She spoke about how this would not only create more taxes and regulation, but also expand the bureaucra-
cy in new and inexorable ways. This task force does not include anyone from the small business community and would dramatical-ly increase the cost of electricity. This would also allow the govern-ment to attempt to pick winners and losers, manipulate the market, and set us down a path that has been historically unsuccessful. All of this while our state is already the third greenest in the country, creating inefficiency when we should be focusing on innovation, business, and technology. The re-sulting bureaucracy and regulatory climate would create an unneces-sary burden and barrier to entry for the market.
Education was also a focal point or Senator Brown’s presentation, pointing out a growing gap between skilled workers and current/future industry demands.
One of the most important areas she addressed, however, is the fact Washington needs a better approach to transpar-ency in permitting. This would help streamline the building industry creating more efficiency and less of a headache for BIAW members. She was quick to point out that Wash-ington should do everything in its power to support and protect the home building industry that brings 3.1 billion in state and local revenues to Washington, rivaling even Boeing.
Senator Sharon Brown, R-Kennewick, addresses BIAW members during the Summer Board General Membership Luncheon.
REVENUE GENERATORSTATE’S 3RD LARGEST
BUILDING INDUSTRY’S IMPACT ON STATE AND LOCAL ECONOMIES
Senator Brown’s presentation focused on the impact of the building in-dustry on the state’s economy and how the government should not be a barrier to job creation by adding or raising taxes. Unfortunately, the gover-nor’s recently enacted climate change executive order would do just that.
BUILDING INSIGHTwww.BIAW.com
8
What is a Spike? In home building terms, it’s a nail or fastener strong enough to hold everything together. An appropriate analogy for BIAW’s Spikes; they support and unite us and keep us strong as an organization. Often, it’s the ‘how’ of the Spike pro-gram that seems a bit mysterious, so let’s simplify the steps and give every member the opportunity to get involved in the process.
Basically, the Spike program is an essential mem-bership recruitment tool; members talking to mem-bers, or potential members, about the benefits of joining or renewing their association membership.
To become a Spike recruiter you’ll need energy, enthusiasm, and a solid knowledge of association benefits along with the desire to share that information with other industry professionals. Assuming you have energy and enthusiasm, the “knowledge” portion can be gained from a variety of sources including your local association staff, the member that recruited you, or one of the many BIAW Spikes shown on these two pages. It’s easy to spot Spikes, and here’s why: they’re wearing a Spike pin, shirt or jacket!
Why become a Spike? You earn visibility (look at these two pages – your name could be here!); you expand your business relations; gain recognition by your peers; and, distinguish yourself and your company at the local, state, and national levels. There are many other reasons to become a Spike including the great parties and trips. So, how does the program work?
How Do I Earn Spike Credits? Spike credits are earned when you sponsor a new member into BIAW. Credits may also be earned when a member renews their member-ship the first time and subsequent years; or you sign up a new mem-ber and they sign up for a NAHB council membership. In addition, during certain times of the year (NAHB membership recruiting drives, for instance) you can earn double or even triple credits.
How Do I Become a Spike? To become a Spike, the candidate must have earned at least six Spike credits. Continue recruiting and you will earn Life Spike status (25 total Spike credits). If a Life Spike’s membership lapses, their accumulated credits will be reinstated when membership is reinstated.
Finally, Spikes are a spirited and highly competitive group, always keeping an eye on their position or ranking within the Spike “family.”
// JAN ROHILA
ADMINISTRATIVE SERVICES DIRECTOR
MEMBERSHIP MEMOWHAT IS A SPIKE?GET INVOLVED BIAW TOP SPIKES
as of June 30, 2014NAHB New Member Report
New NAHB Member YTD TotalBIAW Member Count Credits CreditsBob Smith Advanced Ins. Solutions 21 35 1408.25 Patrick HayesSuperior Slabjacking 21 31 569.0 Myra WilliamsBaskets by Myra 16 22 819.0 Ott GaitherGaither Homes, LLC 14 20 127.0 Dennis PoppeCapital Benefit Services 14 18 988.0 Jason LawrenceLawrence Custom Homes 12 16 59.0 Garth TrimbleKAYU-YV 11 14.50 363.0 Steve CoryFidelity National Title 10 12 510.50 Kevin KartakAAA Kartak Glass & Closet 10 12 1466.75 Adam ZimmermanSummit Asset Strategies 10 10 373.0 Kelly CoonsCornerstone Contractors 9 11 83.0 Beth MaddenMadden Industrial Craftsmen 9 11 955.25 Bob MoeSkagit Drywall 8 12 1217.0 Sherry SchwabHCS Construction Services 8 10 1183.50 Ron PelsonTraditional Designs, Inc. 8 10 68.0 Alex DudkoUnique Design & Const. 8 8 85.0 Bob JohnsonWard-Johnson Masonry & Tile 7 19 685.0 Joel RabeEvergreen Building Products 7 11 173.5 Yvonne TerzenbachInland Professional Title 7 9 26.5
See SPIKE on page 11
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AUGUST ‘14VOL. 24, ISSUE 8
SPIKE PARTY ENCORE
Spike Party Revelers [A] Skagit/Island Counties BA member Ted Clifton with MBA of King Snohomish Counties members JD Thueringer and Darylene Dennon brainstorm for a team name. [B] BIAW of Clark County members Mary Siegel and Cathy Bartz wear pink well during the pre-Spike Party festivities. [C] Gary Wray of Skagit/Island County BA gets encouragement from fellow team members. [D] HBA of Kitsap “Team Kitsap” members are in sync as each player’s feet must touch the beach ball during the “hula ball” competition. [E] MBA of KS Counties member Don “the Godfather” McDonald gets last minute instructions for the “twerk” event. [F] HBA of Tri-Cities member Nancy LaPierre gets her groove on during “beach ball relay” as her son Kyle LaPierre gets a laugh on.
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SPIKE from page 10
If that’s you, then here are three numbers you need to know when determining a Spike’s ranking: n New Member Count The actual num-
ber of new members recruited into BIAW for the current year.n New Member Credits
One credit for each new member recruit-ed, plus additional credits awarded by NAHB for special promotions and events (i.e. double credits during National Mem-bership Month) for the current year.n Total Spike Credits
The new member count, plus, new mem-ber credits, plus, retention credits earned for renewing members, plus cumulative credits you have earned since you became a Spike.
BIAW utilizes NAHB’s new member credit report to determine the annual BIAW Top Spike contest winners.
So, whether you are a seasoned Spike with hundreds of Spike credits under your belt or are still working toward those first six magical credits, you now understand the process. It’s all about communication, talking about the ben-efits of joining BIAW and promoting the value of membership.
If you have questions regarding the Spike program, please contact me at 360-352-7800, ext. 101 or [email protected].
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BUILDING INSIGHTwww.BIAW.com
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EDUCATION PROGRAM POSTGAIN AN EDGETAKE A COURSE
// AMANDA FIELDS
EDUCATION PROGRAM MANAGER
BIAW is proud of the role its Education Program has played in assist-ing members in obtaining their professional designations, achieving
their continuing education requirements, and providing necessary technical and educational knowledge. Our programs are designed to improve business performance and increase professional credibility. At the same time, it provides consumers with a recognizable standard to judge the com-mitment to professionalism in your company.
Educating the Masses: BIAW’s nationally, award-winning Education Program has survived major challenges over the years but still remains on top! In 2013, BIAW held 109 classes with over
1,269 attendees. Moving into 2014, BIAW made extensive efforts to schedule education classes conservatively, helping to avoid cancella-tions and market over saturation.
Partnership with Local Associations: The Education Program will con-tinue its partnership with our 14 local associations while offering quality education courses and non-dues revenue sources. This year, the program returned the most revenue sharing resources, over $17,000, to our local associations since 2010 for its 2013 education course offerings. When you attend a local association-hosted course, your local association earns money and thereby is able to offer additional benefits to their members.
$5 Scholarship Program: In 2010, the BIAW Education Committee implemented a new method of providing financial assistance to the Scholarship Program. By setting aside five dollars for each class at-tendee we have raised nearly $10,000 for scholarships.
BIAW Real Estate School: Did you know BIAW has its own Real Estate School? We do! Many courses are approved for real estate, appraiser, insurance, and legal continuing education credit.
2015 Education Schedule: We are currently scheduling classes for the 2015 calendar year. If you are looking for a specific education class in your area, please request them via your local association. If you are an instructor in the home building industry and have a class or seminar you believe would help our members statewide, please contact me. We are always looking for courses to improve and expand our curriculum.
Invest in your future and your local association by attending a BIAW education course. Professional growth is vital at all career levels, and BIAW is committed to improving and sharpening your skills to keep you at the top in your field. If you have questions regarding the BIAW Education Program, contact me at 360-352-7800, ext. 114 or [email protected].
BIAW EDUCATION SCHEDULE AUGUST 27-28 .......................................................................... OSHA 10.........................................................................................Tacoma27 ........................... Haz. Com. /Globally Harmonized Sys..........................................................................................Tacoma28 ................................... L&I Compliance Safety Training.........................................................................................TacomaSEPTEMBER 9-10 ...Certified Erosion & Sediment Control Lead (CESCL)................................................................................. Bellingham10 ...CAPS 1: Marketing & Communication Strategies....................................................................................Vancouver11 ........................................................CESCL Recertification................................................................................. Bellingham11 ....CAPS 2: Design/Build Solutions for Aging-in-Place....................................................................................Vancouver12 ...............Business Mgmt. for Building Professionals....................................................................................Vancouver17 ..............................Construction Contracts & Lien Law.......................................................................................Bellevue18-19 .............................................. Universal Design/Build.........................................................................................Tacoma23 .. How to Survive and Succeed as a Subcontractor!............................................................................ Mount Vernon23 ..... Construction Wars: The Contractor Strikes Back............................................................................ Mount Vernon24-25 .......... Green Building for Building Professionals....................................................................................... Olympia24-25 ................................................................................CESCL....................................................................................... Spokane26 ........................................................CESCL Recertification....................................................................................... SpokaneOCTOBER1 ..................................................................Negotiating Skills.........................................................................................Tacoma1-3 ......................Certified New Home Sale Professional.......................................................................................Bellevue8-9 .....................................................................................CESCL....................................................................................Vancouver9 ...................................... L&I Compliance Safety Training..........................................................................................Yakima10 ........................................................CESCL Recertification....................................................................................Vancouver15 ........................................................................ Design/Build....................................................................................... Olympia15 ...CAPS 1: Marketing & Communication Strategies.......................................................................................Bellevue16-17 .......... Green Building for Building Professionals..........................................................................................Yakima16 ....CAPS 2: Design/Build Solutions for Aging-in-Place.......................................................................................Bellevue17 ................Business Mgmt. for Building Professionals.......................................................................................Bellevue21 .......................... Haz. Com. /Globally Harmonized Sys....................................................................................... Vacouver21-22 .......................................................................... OSHA 10....................................................................................Vancouver22 ................................... L&I Compliance Safety Training ....................................................................................Vancouver23 ...............Business Mgmt. for Building Professionals..........................................................................................Yakima23-24 .......... Green Building for Building Professionals.........................................................................................Tacoma23 ...........................The Power of Understanding People.......................................................................................Bellevue29 .............................Construction Contracts & Lien Law....................................................................................... Spokane29-30 ................................................................................CESCL.........................................................................................Tacoma30 ................... Estimating for Builders and Remodelers.......................................................................................Bellevue31 ........................................................CESCL Recertification.........................................................................................Tacoma
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AUGUST ‘14VOL. 24, ISSUE 8
SUMMER BOD RECAP
[A] Golf tournament participants Sean Birtch, Joe Rabe, George Eide, Troy Rideb and Colin McCarty monkey around during a break in the competition. [B] Remodeler Chair Wayne Keffer, CGR, CAPS, presents Howard Chermak, CGR, CAPS, an Excellence In Remodeling award for the Bath $40,00 - $70,000 category. [C] Golfers JD Thueringer, Monty Smith, Keith Pitsch, Audrey Borders, and Melissa and Joseph Irons enjoy some sunshine and good company during the tournament. [D] Golf sponsor Dennis McNamara of Decked, greets golf participants on the first hole. [E] EIR winner August Bergdahl, CGR, CAPS, of Crescent Builds receives an EIR award for the Commercial over $250,000 category. [F] NAHB Third Vice President candidate Dean Mon addresses BIAW members during BIAW’s General Membership Luncheon.
THANK YOU SPONSORS
Spike PartyLuxury Ticket Level - $1000AAA Kartak Glass & Closet
Puget Sound Energy
VIP Ticket Level - $500 PrintNW
General Admission Level raffle prize or gift card donation
Baskets by MyraCreative Elegance
Independent Scentsy Consultant Jessica Matriotti
MBA of King & Snohomish Counties HBA of Kitsap County
Lower Columbia Contractors Association N. Peninsula Builders Association
Olympia Master BuildersWayne Crider/Skagit/Island Counties BA
Soaring Eagle, Inc.Spokane HBA
Joe & Lynn TanasseHBA of Tri-Cities
BIA of Whatcom Co.
Golf Tournament Avila Associates Baskets by Myra
Dawson Lane RCI, Inc.Decked
Drake Associates OMB Remodelers Council
Phase II, Inc. ProBuild, KennewickPuget Sound Energy
GOLF TOURNEY, EIR AWARDS, GUEST VISITOR
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BUILDING INSIGHTwww.BIAW.com
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Launched in 2011, the National Association of Home Builders (NAHB) Builders Engaging Associate Members (BEAM) award is pre-sented to the one builder member who best personifies the associ-ation’s motto of “It’s good business to do business with a member.” The national winner is a builder member who knows the value of the services offered by associate members and the importance of builders and associates working together, as a team, to strengthen our associ-ation and our industry.
The BEAM award is bestowed by a committee of associate mem-bers, with emphasis in recognizing this element vitally important teamwork, and presented at the Associates Awards Breakfast during the International Builders’ Show.
The award encourages builders to use the goods and services offered by associate members in preference over non-members. The goal of the award is to have one builder from each state presented to the NAHB Associates Committee for consideration.
BIAW is asking for each of our local associations to submit one builder for consideration. BIAW will judge all applicants and then submit one builder as the state’s nominee. The NAHB Associate Members Committee chooses up to 10 finalists and one recipient for the NAHB BEAM Award. Unfortunately, BIAW has not yet received a BEAM application. BIAW should take pride in our members and our state; considering the quality and quantity of our members, we should be one of the top contenders for the award. We highly encourage our local associations and members to make a submission.
The winner is selected based on the following: local association activity (10%), state association activity (10%), community projects (20%) and builder evaluation forms (60%). The final decision will be based on the greatest percentage of associate members used by the builder as well as the builder’s relationship with those associ-ates. Each associate member identified on the nomination form will be contacted, and the builder’s relationships will be rated based on
loyalty, ethics, trust, communication, and consideration. This means every builder, regardless of size, has an equal opportunity to become the proud recipient of the presti-gious NAHB BEAM Award.
In 2014, NAHB Associates reviewed and streamlined the application process which can be download from the BIAW homepage at www.BIAW.com.
The application instructions have also been enhanced to provide more information on how to complete the application and how the nomination process works.
For more information or assistance, con-tact BIAW Associate National Director Linda Mosier-Vaudt at 360-754-0300.
Deadline for completed applications to BIAW is September 19, 2014.
BIAW IS NOW ACCEPTING APPLICATIONS FOR PRESTIGIOUS NATIONAL AWARD
NAHB BEAM AWARDNOMINATE A BUILDER
PAID ADVERTISEMENT
You may have heard the technique of removing moisture (using dehumidifiers and fans) during the construction of homes is under assault by a ”patent troll.”
Contractors in Oregon and Washington have been sent letters because, according to the company, drying a home’s frame is now their patented intellectual property. The firm is asking contractors for as much as $150 for each building permit.
BIAW is working with the National Associa-tion of Home Builders to combat this threat.
If you have used any technique to dry your houses prior to 2002 and are willing to speak with NAHB attorneys, please contact BIAW Executive Vice President Art Castle at 360-352-7800, ext. 103 or [email protected]
If so-called patent trolls like this are allowed to continue, the impact regionally and nationally could be in the multiple of millions of dollars.
PATENT TROLL UPDATE
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AUGUST ‘14VOL. 24, ISSUE 8
Take control of your health care and costs by accessing your information online.
Register for your health plan’s online member services and take advantage of quick, easy access to your account and personal information. When registering, you choose your own username and pass-word, so you can be confident that your personal information stays secure. It only takes a few minutes to register.
Have your Health Plan ID card handy, then:
REGENCE MEMBERS: Go to www.myRe-gence.com, choose New Member Registra-tion and complete the form.
ASURIS MEMBERS: Go to www.myAsuris.com, choose New Member Registration and complete the form.
Registering gives you access to valuable services that make using your benefits easier than ever. After you log in and click My Navigator:
Use the My Account section to review and manage your account, for example:
n Request a new ID card or view your coverage.
n Choose Claims to see your most recent health care claims.
n Click Provider Search to look for doctors and create your personal list of providers.
n Select ER Alternatives to locate urgent care centers, walk-in clinics or retail clin-ics near you.
The BIAW Health Insurance Program is your trusted advocate for all your health insurance needs. Contact our team today for answers to your questions.
n 800-545-7011, ext. 1237 n [email protected] n CapitalBenefitServices.com
CLICK. COMPARE. DONE
ONLINE RESOURES
IN-NETWORK AND OUT-OF-NETWORK PROVIDERS EXPLAINED
UNDERSTANDING NETWORKS
// WILL COMPTON
CAPITAL BENEFIT SERVICES Guest Columnist
As it becomes more and more vital for individ-uals to take ownership of their own insurance plans, understanding your insurance provider network is a critical component. A provider net-work is a list of health care providers and facil-ities (doctors, hospitals, etc.) that are contracted to work with your health insurance carrier. Pro-viders on this list are considered “in-network,” while those not on the list are “out-of-network.”
When a certain provider is contracted with a provider network, this means they will provide
services at a certain price, agreed upon between them and the plan carrier. While most plans allow you to see providers regardless of their association with the contracted network, there are often sig-nificantly higher out-of-pocket costs for services received outside of the network compared to inside the network.
So if you know that out-of-network benefits may cost you more, what can you do about it? A great place to start is searching the provider network online. Regence BlueShield has an excellent online tool to help you find a doctor in your area or to check if your current doctor is in their provider network. Check it out at www.Regence.com/find-a-doctor.
The knowledgeable team at Capital Benefit Services, BIAW’s Health Insurance Program Administrator, is ready to answer all your em-ployee benefit questions about provider networks and more. Visit us online at www.capitalbenefitservices.com or give us a call at 425-641-8093 to get a quote today.
Your partner in health care, Capital Benefit Services, is committed to supporting BIAW members and helping them find employee benefits that are both affordable and provide certainty in an ever changing and uncertain health insurance environment.
Get answers to your health insurance questions by contacting me at Capital Benefit Services.
n 800-545-7011, ext. 1237 n [email protected] n CapitalBenefitServices.com
BUILDING INSIGHTwww.BIAW.com
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BUILDING PERMITSWA
NAHB/FIRST AMERICAN LEADING MARKET INDEX
US CENSUS BUREAU STATISTICS
BUILDING INSIGHTwww.BIAW.com
A
SINGLE MULTI MAY YTD MAY YTD FAMILY FAMILY 2014 2014 2013 2013 BENTON 61 7 68 364 114 596CHELAN 23 0 23 70 17 71CLALLAM 9 0 9 50 18 51CLARK 158 108 266 1,180 299 1,301 COWLITZ 7 0 7 39 13 42DOUGLAS 12 0 12 60 15 39FRANKLIN 23 12 35 206 55 310GR. HARBOR 3 0 3 15 8 26ISLAND 11 0 11 82 18 75JEFFERSON 10 0 10 39 7 29KING 359 1,144 1,503 5,622 1,349 4,167 KITSAP 33 0 33 126 45 188KITTITAS 20 0 20 59 19 58LEWIS 10 0 10 39 14 41MASON 9 0 9 34 11 38OKANOGAN 13 0 13 44 14 35PIERCE 221 172 393 1,403 240 1,301SAN JUAN 11 0 11 32 8 37SKAGIT 19 0 19 100 28 105SKAMANIA 3 0 3 18 1 10SNOHOMISH 189 147 336 1,346 457 1,627SPOKANE 96 0 96 512 113 468STEVENS 0 0 0 1 1 1THURSTON 72 2 74 348 69 295WALLA WALLA 8 0 8 33 11 27WHATCOM 29 18 47 187 35 258WHITMAN 5 0 84 89 52 268YAKIMA 14 0 14 50 5 41
WA STATE 1,428 1,694 6,635 12,219 3,036 7,289
Editor’s Note: In calculat-ing the LMI, NAHB utilizes employment data from the Bureau of Labor Statistics, house price appreciation data from Freddie Mac and single-family housing permits from the U.S. Census Bureau.
Visit NAHB’s EyeOnHousing.org for more discussion on economics and housing policy.
HOME SALES SURGE AFTER SLOW FIRST QUARTER
Housing news continued to improve as pending home sales surged following a slow first quarter. Home prices also contin-ued to move higher but at a more moderate pace, suggesting the extra push caused by investors may be slowing. Economic news, however, was mixed. Consumer confidence increased in response to improving labor market conditions. On the other hand, new estimates from the first quarter revealed a steeper decline in real GDP. Early indications are that real GDP will re-verse course from a dismal first quarter and gains in housing will continue the pace set before the end of 2013.
Pending homes sales posted the biggest month-over-month increase in four years. The Pending Home Sales Index increased 6.1% in May. The increase in pending home sales follows a healthy increase in existing home sales and a Cen-sus report showing a surge in new home sales. In May, new single-family home sales increased 18.6% from April.
The first quarter of 2014 continued to disappoint as the Bureau of Economic Analysis released its third estimate of real GDP. According to the release, real GDP contracted at a 2.9% seasonally adjusted rate. The second estimate showed real GDP decreasing by 1%. The poor result is largely due to declining inventories, exports, and fixed investment. Housing’s contribution to real GDP was 15.6% in the first quarter of 2014, which is low compared to historical standards. Real GDP and housing’s share of real GDP are expected to grow in the second quarter.
RANK METRO AREA JUNE OVERALL June May April Metro Area Permits Prices Emp June May Apr
40 42 43 Wenatchee .68 1.47 .94 1.03 1.03 1.03
73 64 48 Kennewick .71 1.28 .94 .98 .99 1.03
83 81 75 Spokane .58 1.37 .93 .96 .97 .93
89 92 85 Seattle .56 1.37 .94 .95 .95 .96
107 104 104 Bellingham .28 1.56 .93 .92 .93 .93
160 165 161 Olympia .37 1.33 .92 .87 .86 .87
167 163 166 Mt. Vernon .41 1.25 .93 .87 .86 .86
177 175 165 Yakima .36 1.26 .94 .85 .86 .86
207 188 188 Bremerton .29 1.28 .92 .83 .84 .84
234 237 241 Longview .33 1.17 .94 .81 .81 .81
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MAY ‘14VOL. 24, ISSUE 5
NWMLS STATISTICAL SUMMARY BY COUNTIES MARKET ACTIVITY SUMMARY - AUGUST 2014
SF HOMES PENDING MONTH’S & CONDOS LISTINGS SALES CLOSED SALES SUPPLY New Total Number Number Average Median This Same Mth Listings Active Pending Closings Price Price Month Year AgoClallam 104 445 68 51 $214,421 $210,000 8.73 8.7Clark 79 166 57 64 $300,118 $234,250 2.59 2.9Cowlitz 172 548 130 79 $182,357 $170,000 6.94 5.1Ferry 16 73 1 4 $163,875 $156,750 18.25 36.5Grant 126 536 92 84 $178,546 $159,544 6.38 8.55Grays Harbor 197 823 103 84 $137,635 $131,900 9.8 12.53Island 210 785 196 142 $308,854 $258,250 5.53 7.11Jefferson 95 440 51 51 $275,159 $230,000 8.63 11.13King 4,228 5,609 3,953 3,109 $511,181 $410,000 1.8 1.73Kitsap 599 1,462 493 409 $312,665 $250,000 3.57 3.85Kittitas 141 514 86 60 $309,422 $222,450 8.57 7.82Lewis 161 643 116 66 $155,916 $145,000 9.74 13.6Mason 206 774 127 82 $179,768 $167,300 9.44 13.38Okanogan 97 515 45 24 $233,583 $168,250 21.46 21.55Pacific 84 458 57 24 $161,445 $143,500 19.08 18.76Pierce 1,699 3,815 1,555 1,085 $254,897 $229,950 3.52 2.89San Juan 72 434 25 23 $409,946 $329,000 18.87 42.6Skagit 247 823 231 153 $277,771 $230,000 5.38 4.75Snohomish 1,710 2,764 1,545 1,220 $339,040 $313,375 2.27 1.75Thurston 593 1,402 481 355 $248,856 $236,000 3.95 3.54Whatcom 506 1,617 377 290 $304,840 $270,625 5.58 5.63Others 199 696 120 99 $263,266 $217,000 7.03 7.89MLS TOTAL 11,541 25,342 9,909 7,558 $376,397 $299,335 3.35 3.22
King, Snohomish, Pierce and Kitsap Counties
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Yearly
2007 4869 6239 7192 6974 7311 6876 6371 5580 4153 4447 3896 2975 66883
2008 3291 4167 4520 4624 4526 4765 4580 4584 4445 3346 2841 2432 48121
2009 3250 3407 4262 5372 5498 5963 5551 5764 5825 5702 3829 3440 57863
2010 4381 5211 6821 7368 4058 4239 4306 4520 4350 4376 3938 3474 57042
2011 4272 4767 6049 5732 5963 5868 5657 5944 5299 5384 4814 4197 63946
2012 4921 6069 7386 7015 7295 6733 6489 6341 5871 6453 5188 4181 73942
2013 5548 6095 7400 7462 7743 7374 7264 6916 5951 6222 5083 3957 77015
2014 5406 5587 7099 7325 8055 7546 41018
HOME SALESNORTHWEST MULTIPLE LISTING SERVICE
AUGUST ‘14VOL. 21, ISSUE 8
B
WA
B
NWMLS Four-County Puget Sound Region Pending Sales, SF and Condo Only counties reported are represented in state totals. Permit data is most current available as of press time. For a complete listing of current and archived building permits, click Online Resources at BIAW.com The information pro-vided is published by the Northwest Multiple Listing Service (NWMLS), it covers 21 counties in the state of Washington and is headquar-tered in Kirkland. Effective with January 2014 reports, NWMLS is calculating months of inventory using closed sales, rather than pending sales.
A
Popping Prices With bank lending very weak outside of commercial and industrial loans, global growth lackluster, Europe on the verge of deflation, a slightly ap-preciating US dollar and the number of unemployed workers still elevated, conditions don’t suggest a rapid rise in inflation. That said, the most likely place for systematic inflation to appear would be healthcare, housing and wages. Follow them closely but expect no major near-term rise.
—Elliott F. Eisenberg, Ph.D. GraphsandLaughs, LLC
www.econ70.com
Building Industry Association of Washington
111 21st Avenue SW • Olympia, WA 98501
360-352-7800 • Fax: 360-352-7801 800-228-4229 • BIAW.com
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2014 EDUCATION PROGRAM SCHOLARSHIP WINNERS MAKENZIE COWELL MEMORIAL SCHOLARSHIP
BIAW is proud to announce the 2014 BIAW Mackenzie Cowell Memorial Scholarship recipients. The awards were announced during the BIAW Summer Board meeting held in Pasco in June.
Winners hailed from around the state and demonstrated a significant level of skill, dedication, and motiva-tion worthy of the scholarship. Their continued education and future careers will be an asset to both the
home building industry and state. “Reviewing and assessing the applications makes these
awards special because I understand what an impact this pro-gram makes on the lives and careers of these students,” said BIAW Education Committee Co-Chair Jim Breidenbach, CGR, CAPS. “We really do make a difference.”
BIAW would like to thank the Scholarship Review Com-mittee who spent hours reviewing and evaluating the appli-cations: Jim Breidenbach, CGR, CAPS, Darylene Dennon, Ron
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Joshua Amundson .............................................. Vancouver ........................................... Civil Engineering ......................... $3,000
Tomas Frey ........................................Central Washington University ........................ Civil Engineering ......................... $2,000
Aegir Olsen.............................................University of Washington ....................Construction Management ............... $2,000
Lance Evans .............................................. Central WA University ............Business Management and Marketing .... $1,500
Brendan Ameluxen-Coleman .............. Central WA University .......................Construction Management ............... $1,500
Samuel Ray Adams ..............................WA Engineering Institute ................Civil Engineering Technologies ........... $1,000
Dimitri Onishchenko .......................Highline Community College .................. Mechanical Engineering .................. $1,000
Gloria Evstatieva ............................ Eastern Washington University ............................ Engineering .............................. $1,000
Penelope Partridge ..............................Evergreen State College .................Business Leadership/Sociology ........... $1,000
Kyle Johnson ..........................................University of Washington ............................. Business Finance ......................... $1,000
SCHOLARSHIP WINNERS
BIAW EDUCATION PROGRAM
Perkerewicz, Linda Mosier-Vaudt, CAPS, CGP, CGA, Liz Coker, Bill Allen, Tom Richter, and Wendy D. Cowell.
The ten awards were chosen based on the applicant’s field of study, extracurricular activities, and building industry work experience.
This will mark the fourth year of the annual Mackenzie Cow-ell Memorial Scholarship Awards, named to honor a vibrant young woman, violently taken just as she was beginning her loved career.
If you are interested in more information about the BIAW Scholarship Program and its activities, contact BIAW Education Program Manager Amanda Fields at 360-352-7800, ext. 114 or [email protected].