Construction TimesThe

April 2012

A publication of Northland Area Builders Association

NABA Board of Directors

Past President:Russ Smith, Russ Smith Construction715-462-4170

President:Ed Peterson, Peterson Construction715-866-7127

President Elect:Joe Gendrich, Culligan of Ashland715-682-6585

Secretary:Rick Harder, Northern Paradise Homes715-635-2299

Treasurer:Jim Perlick, Jim Perlick Construction715-635-7575

Directors:Jason Olsen, Peoples Bank715-634-2674

Kevin Miller, Northland Recreational Homes715-634-6366

Todd Knutson, Johnson Bank715-634-2611

Jeremy Lindgren, Arrow Building Center-Spooner715-635-2199

Open seat

WBA State DirectorsJack Sjostrom, Sjostrom Construction715-634-4427

Charlie Johansen, Johansen Electric715-634-3761

Open seat

NAHB National DirectorsJack Sjostrom, Sjostrom Construction715-634-4427

Open Alternate Seat

NABA StaffJennifer Johnson, Executive Officer

29148 Mail Road • Danbury, WI 54830

Phone: 715-259-3486 • Fax: 888-825-8073

Email: naba@centurytel.net

www.northlandareabuilders.com

Code of Ethics

Members of the Builders Association subscribe to the followingCode of Ethics:

n Subscribe to the By-laws of the State and NationalAssociations.

n Meet or exceed all State required insurance regulations.n Maintain a good credit rating in high standards.n Respond to consumer complaints, and act on these

complaints in a timely manner.n Continue to improve their skills and knowledge through

educational resources made available at a local, state andnational level.

n Employ other association members to assure the highstandards set by its members are maintained.

n Conduct themselves in a professional manner to maintainthe standards of the association.

n Comply, both in spirit and letter, with rules and regulationsprescribed by law and government agencies for healthsafety, and progress of the community

n Have a commitment to excellence.

MissionThe NABA, chartered in 1989, is a non-profit trade organizationcomprised of building and construction industry professionals inAshland, Bayfield, Burnett, Sawyer and Washburn Counties inNorthwestern Wisconsin. Promoting professional growth to itsmembers, the Association provides the resources to stay abreast ofour ever changing industry. Every member of the NABA is also amember of the Wisconsin Builders Association (WBA) and theNational Association of Home Builders (NAHB).

To maintain the highest professional standards, our membershipadheres to a Code of Ethics, monitors legislative issues, andpromotes affordable quality housing.

Need Help?Northland Area Builders Association 715-259-3486

www.northlandareabuilders.comNational Association of Home Builders 800-368-5242

www.nahb.orgWisconsin Builders Association 608-242-5151

www.wisbuild.orgWisconsin Department of Commerce 608-266-3151

www.commerce.state.wi.us/SB/

Become a fan of Northland Area Builders Association to receive industry news,updates and network with others in the industry.

What is Cloud Computing?Being "in the cloud" is the latest catchphrase intechnology discussions. It can refer to virtual serversthat allow users to access stored data via an Internetconnection. Providing access in this manner isfrequently referred to as using cloud-based or web-based services. Being “in the cloud” can also meanusing an application outside of a company’s firewall,such as conducting business with a smart phone ortablet (iPads).

Cloud Computing and the Construction Industry

The construction industry must balance back-officefunctions — billing, paying invoices, running financialreports, payroll, planning logistics — with the physicalpresence needed on the job site or in a client’s office.Today’s technological solutions must be able to serveusers in both work settings. Responses fromConstructech’s 2011 IT survey show constructioncompanies are reporting from the field as well as"carrying out project management, scheduling,punchlists, and time tracking tasks out in the fieldtoday."

Remote access allows staff to work from any locationwhile still managing their workload throughout theday. With the amount of consolidation,decentralization of offices, travel-based positions, andproject work being done in different regions of thecountry or even internationally, being able to offersolid remote access technology to employees is keyfor any successful construction company.

For many companies, solving this challenge meansmoving some of its applications to the cloud.

One construction company, True Value Homes (TVH),based in India, is able to give any employee with propercredentials access to these applications through asecure, web-based environment. Before the move,TVH was running operations on 17 sites, andemployees could only work in the office so all papersneeded to be brought into the central office forprocessing and approval. Whereas TVH once had 100personal computers for 100 employees, now 500 userscan access its web-based applications.

"We want to make sure that our employees get thebest out of their workplace," Arun Nehru, TVH’sdirector, said. "What we are telling employees is that[wherever you need to work], the applications areavailable from the office, home or [onsite].

Collaboration Between Contractors, Owners/ClientsLeveraging cloud-based services also extends beyondthe workings of a single construction company. AsConstructech’s 2011 IT survey notes, "today’sconstruction professional also needs to be highlycollaborative. The word ‘team’ has taken on a wholenew meaning in the construction industry. Every teamneeds to obtain a high level of transparency andaccountability for the property owner. Overall,construction companies will be more collaborative,using technology to connect all project team members-from trade partners to general contractors to owners-in one central location."

Cloud Computing and Construction Management:What Can it Do For your Business?

Jon Witty, Vice President, Sage Construction and Real Estate

Yet, it is highly unlikely that each of the project teammembers uses the same back-office businessmanagement applications. So, as general contractors,trade partners and owners individually look to the webto streamline business operations, identifying thekinds of technology that will enable the secure andtimely exchange of project information between allinvolved should be determined at the planning stage.

MobilityConstructech’s 2011 IT survey indicated thatcontractors will then take project information "out tothe jobsite with mobile devices as well as applying ahost of applications on these mobile devices."The growing trend of utilizing mobile technologies inthe construction industry supports the surveysfindings. However, the type of device varies. Accordingto the survey, "the smart phone is still one of the mostcommonly used devices at the jobsite (81% of surveyrespondents). Laptops (69%) and tablets (26%) alsoreceive a significant response." Given the advances inand adoption of tablets such as Apple’s iPad over thepast two years, growth is anticipated in the use of thetablet in the construction industry as well.Given the fast moving area of mobility, today’sbusiness management solutions need to support thehighly mobile workforce of the construction industrytoday and into the future.

Leveraging Today's Technology for the FutureDoes that mean that your construction company needsto scrap everything it’s using today for new cloud-

based applications? In the current economy, manycompanies are looking towards extending theapplications that they are using today into the cloudwhere it makes the most sense.

Jon Witty is the Vice President and General Managerfor Sage Construction and Real Estate, which is adivision of Sage Business Solutions (SBS). A formerMicrosoft executive with more than 25 years ofexperience in the technology and ERP marketsincluding the construction and project managementvertical, Witty is responsible for driving Sage’s businessstrategy and initiatives in the construction and realestate market. For more information visitwww.sagecre.com.

Share your accomplishments, awards, and announcements withfellow members. Send your news tojennifer@northlandareabuilders.com and we will be glad toinclude it in the newsletter.

April 3rd Networking Night - Burgers, Brats & Buildersat Northern Paradise Homes in Trego. We’ll providethe meat, soda and water. Please bring a dish to passand a lawn chair. Everyone welcome and we will havegames for the kids. $5/person (kids 12 and under free).Please be sure to RSVP to the NABA office so that wecan be sure to have enough food on hand.

Riding Lawn Tractor Raffle TicketsCongratulations to Lori Welter of Hayward! Lori wonthe NABA Riding Lawn Tractor raffle and purchasedthe winning ticket at the NABA Family Ice Fishing Event.Thank you to all the members who promoted the raffleand sold or purchased tickets. We raised nearly $400for the NABA Scholarship Fund after expenses.

Home Expo 2012The 2012 NABA Home Expo has wrapped up. Despitethe beautiful weather, many vendors reported qualityleads and NABA will gain several new members as aresult of their participation in the Home Expo.

However due to the lack of member involvement andsupport for the event, the NABA Board of Directors willbe reviewing this event to determine if it is costeffective to pursue for 2013. In 2012 only 20% of theparticipating vendors were NABA members. If you areinterested in serving on a planning committee or haveinput into this event, please contact the NABA office.

New Member PublicationMember Matters will be created, printed and mailedquarterly to all members. The main focus of the newpublication will be various member benefits andfeatures. It will also showcase new members, memberto member discounts and services, and members inthe news. If you have an item that you want to befeatured in the new Member Matters or offer a specialservice or discount to fellow members, we want tohear from you.

Membership Notes

Annual Golf ScrambleMay 22, 2012 • Butternut Hills (Sarona)

12:00 pm Pitch & Putt Contests1:00 pm Shotgun Start

5:00 pm Dinner & Awards

$80/golfer includes golf, cart & dinner$150 Hole Sponsor plus $25 prize includes one complimentary

golf registration

Visit www.northlandareabuilders.com/?110540to register online

Wetlands Bill signed into lawGovernor Walker recently signed into law the wetlandreform bill (SB 368) that has been in the work for the pastyear.  You may also recall that this was one of the majorpieces of public policy that we have wanted to get done toclose out the 2011-2012 session and a major provision thatmembers lobbied on during Business Day in Madison 2012.

“Wetlands protection and economic growth can beachieved when the regulators and the regulated work to-gether towards a common goal of fostering both,” Kedziesaid. “SB 368 will serve as a new starting point for morecooperation between the private and public sector andmaking the wetlands program more efficient, effective,and balanced.”

The bill streamlines the wetlands permitting program byallowing the Department of Natural Resources to createGeneral Permits for small activities occurring in or nearwetlands, and focus more of its efforts and resources onthe higher-profile and sensitive wetlands activities. The billcreates more certainty within the process to apply for andreceive a decision for a wetland permit, and mirrors manyof the wetlands permits currently issued by the federalgovernment.

UDC change goes to Governor Walker's deskIn mid-March the state Assembly concurred on Senate Bill453 (SB which will make much needed reforms to theUniform Dwelling Code Council (UDC).  The UDC is theadvisory council that takes input from citizen members onchanges to the one and two family code.

SB 453 reduces the members on the UDC from 18 to 11because a number of seats on the UDC have been vacantin recent years and will allow the council to be moreefficient in their deliberations.  The bill also deletes“slotting” of members which will WBA and members tosubmit applicants who are builders, remodelers andsuppliers to get more “in the field knowledge” on the council.

TenPas/Deschane talk WallbracingRecently the Small Business Regulatory Review Board metfor the first time in the Governor’s conference room andone issue they took up was WBA’s objection to the currentwall bracing rule.

Brad TenPas, past chair of the WBA Code Committee,traveled to Madison to testify on the rule with WBA Execu-tive Vice-President Jerry Deschane.  TenPas was able togive an “in the field” perspective of the rule while De-

schane gave the history of the rule and the fact that stateslike Pennsylvania have already moved back to the 2003wall bracing standard.

The board was asked by Deschane and TenPas to recom-mend to the Department of Safety and Professional Servic-es (DSPS) that they issue an emergency rule to go back tothe pre-2003 code on wall bracing.

The board seemed receptive to the request but will betaking some more time to further study the issue.  Thewallbracing issue will again be on their next meeting agen-da and we are very hopeful of a positive recommendationfrom the new group which is chaired by WBA memberRepresentative Michelle Litjens (R-Oshkosh).

Senator Galloway to resign: Senate to split 16-16Nothing short of a political bombshell was dropped recentlywhen freshman state Senator Pam Galloway (R-Wausau)announced her resignation from the state’s upper house.

“Today I am announcing my retirement from the Wisconsinstate Senate,” Galloway said.  “After a great deal of thoughtand consideration, I’ve decided to put the needs of myfamily first. My family has experienced multiple, suddenand serious health issues, which require my full attention.Unfortunately this situation is not compatible with fulfillingmy obligations as state Senator or running for re-electionat this time.”

This announcement would lead to an even 16-16 split in thesenate, however in reality it means little since the senateis done with their work this session.

Galloway was facing a recall election this summer.  Therewill now be some legal wrangling on whether that shouldproceed or a special election should be called by GovernorWalker to fill the open seat.

Regardless of what election moves forward, recall orspecial, the prospects for the GOP to remain in the majorityin the state senate were made much more complicated bythe sudden Galloway announcement.

BIC opening, local under 500 membersCurrently the Building Industry Council, a separate 501(C)(4) social welfare organization that promotes soundpublic policy through education and grassroots lobbyingand is associated with WBA, has an opening for an activemember from a local that has fewer than 500 members.

Wisconsin Builders Association Updateyour member dollars at work

These days every business is looking forways to trim budgets and save money. Tohelp with this, NABA has partnered withthe National Purchasing Partners - HomeBuilders Purchasing Program. Thispartnership will allow even our smallestNABA member companies to takeadvantage of special discounts just for theconstruction industry from VerizonWireless, Staples, and more. To find outmore about the program and how to starttaking advantage of the savings, pleasecontact the NABA office for yourregistration information. There is no costto join for NABA members. Visitwww.northlandareabuilders.com and clickon the HBPP logo to download a flyer &instruction sheet with registration details.

Let your membershipearn you money back

Members of Congress will be Home for Two Weeks forSpring Recess!Starting April 2, Congress will be home for two weeks.There are still big issues facing our economy, and thehousing economy in particular, that Congress has yet toaddress.  We need to keep our lawmakers focused on thehousing crisis and urge them to be proactive in their re-sponse.

Please take a moment to coordinate with your local andstate HBAs and set up meetings with your Members ofCongress at their district office during these two weeks ofrecess.

Over the break, we ask you to continue to push two issues:the passage of AD&C credit legislation, which will allowhome builders to gain access to construction credit, andlegislation to improve EPA’s lead paint rule.

As always, tax reform is a hot topic in Congress.  Be sure toremind your Members of Congress to protect the MortgageInterest Deduction in any tax reform proposals theyendorse, as well as preserve the Low Income Housing TaxCredit.

To assist you in your meetings, talking points, lists ofco-sponsors and other pertinent information can be foundat www.NAHB.org/indistrict. If you have any questionsplease contact us at builderlink@nahb.org.

In order for the housing industry to gain solid footing, weneed Congress to act now!

NAHB Senior Officers Discuss Key Housing Issues withCongressional LeadersNAHB Chairman Barry Rutenberg and First Vice ChairmanRick Judson this week conducted two days of meetings withDemocratic and Republican leaders in both chambers ofCongress to urge lawmakers to pursue a strong nationalagenda for housing. The NAHB Senior Officers reiteratedthe importance of housing and homeownership to theeconomy and stressed that there can be no economicrecovery without a housing recovery.

On Capitol Hill, Rutenberg and Judson met with severalinfluential lawmakers from both sides of the political aisle,including Senate Majority Leader Harry Reid (D-Nev.);Senate Minority Leader Mitch McConnell (R-Ky.); House

Majority Leader Eric Cantor (R-Va.); Rep. Steve Israel (D-N.Y.), chairman of the Democratic Congressional CampaignCommittee; and Rep. Carolyn Maloney (D-N.Y.), the rankingmember of the House Financial Services Subcommittee onFinancial Institutions and Consumer Credit.

Discussions focused on the need to enact policies thatwould provide a stable and affordable supply of credit forhome buyers, home builders and rental housing and toreduce or eliminate unnecessary regulations to makehomeownership more affordable for firefighters, teachers,police officers and other middle-class families.

Seeking to build bipartisan consensus for housing prioritiesamong Washington power brokers, the two NAHB SeniorOfficers also held productive meetings with Sen. PattyMurray (D-Wash.), the chairman of the DemocraticSenatorial Campaign Committee, and Sen. John Cornyn(R-Texas), the chairman of the National RepublicanSenatorial Committee.

Financial Services Roundtable Hears From NAHB ChairmanSpeaking at the spring meeting of the Financial ServicesRoundtable this week, NAHB Chairman Barry Rutenbergprovided the home builder's perspective on a variety ofimportant subjects concerning both of our memberships.The Financial Services Roundtable represents majorfinancial services companies involved in banking, insuranceand investment products and services.

In a panel discussion on "reviving the housing market,"Rutenberg answered questions regarding the current stateof the industry, efforts that the private sector andgovernment need to take to promote a housing andeconomic recovery, and ways to responsibly expand loanmodifications and reduce the inventory of foreclosedproperties, among other subjects.

Asked to define what needs to be done to reduce theinventory of Real Estate Owned (REO) property that iscurrently on bankers' books, Rutenberg noted NAHB'ssupport for efforts to develop programs for investorpurchase of foreclosed homes that will then be held off themarket for a period as rental units. He also said that NAHBbelieves that changes must be made to ensure that smallerinvestors -- including home builders who know theircommunities -- can invest in these properties, and providedseveral key recommendations in this area.

National Association of Home Builders Updateyour member dollars at work

Rutenberg also talked at length about the need to reformappraisal practices and oversight to ensure that appraisalsreflect true market values, and explained NAHB'srecommended plan for reforming the housing financesystem.

In all, Rutenberg’s invitation to speak at this special forumrepresented a fantastic opportunity to continue our workwith the nation's top banking, insurance and investmentexecutives on efforts to get housing and the economy backon track.

IRS Makes It Easier to Qualify for Expired 45L Tax CreditThe IRS has updated its list of software that is applicable tothe New Energy Efficient Home Tax Credit (45L), the onlyfederal incentive available for efficiency in new homeconstruction. The 45L credit provides a $2,000 tax credit tobuilders and developers for the construction and sale ofhomes that achieve a 50% improvement in energy efficiencyover the 2004 International Energy Conservation Code. Thecredit expired at the end of 2011 and has not yet beenrenewed for 2012.

The new IRS 45L software programs offer buildersadditional flexibility in qualifying for the tax credit and issomething that NAHB has long been pushing for.

The 45L tax credit and the Existing Home Retrofit Tax Credit(25C), which provides consumers a tax credit of up to $500for the purchase of qualifying energy-efficient products,both expired on Jan. 1.

Both 45L and 25C are traditionally renewed by Congress atthe end of each year as part of a package of expiring taxcredits. Commonly referred to as “tax extenders,” thispackage has become more difficult to pass due to thegovernment’s fiscal belt-tightening.NAHB continues to seek an extension for both the 45L and25C tax credits, but any congressional action is unlikely tooccur until after the 2012 elections.

Dues payments to Northland Area Builders Association arenot deductible as charitable contributions for federalincome tax purposes. However, dues payments may bedeductible as ordinary and necessary business expense,subject to exclusion for lobbying activity. Because a portionof your dues is used for lobbying by NAHB ($30) and WBA($46.90), 16.19% of the total dues, or $76.90 is notdeductible for income tax purposes (2012).

The Weekly Job Report is distributed to NABAmembers every Monday. Each report contains asummary of bidding opportunities throughout theNABA region with links to detailed reports containinginformation on receiving plan documents on theMembers Only side of the Association’s website.

Members were emailed their user names andpasswords for logging into the NABA website. Contactthe NABA office for assistance or to retrieve yourinformation. If your membership lapses, your log ininformation is deactivated.

With the Census Bureau estimating that the 60+ population

will grow to 73 million by the end of the decade and NAHB

predicting that the aging-in-place remodeling market will

be between $20 billion and $25 billion, panelists of the

recent webinar, "Build Profit and Possibilities With Home

Health Technology," discussed how builders and

remodelers can get traction in the market through the

application of universal design principles and assistive home

health care technologies.

"As builders, we are all looking for an edge or a way to

differentiate ourselves from the competition," said Tony

Crasi of The Crasi Company, a design/build firm based in

Cuyahoga Falls, Ohio.

Rather than cut profits to stay competitive as a builder, Crasi

diversified into the aging-in place market, particularly since

an overwhelming majority of seniors — as many as 89%

according to some surveys — indicated they want to remain

in their homes as they age.

"What we are trying to do is meet the challenging needs

facing people as they grow older and apply building

principles such as accessible design, good planning and the

assistive technologies associated with in-home health and

wellness," he said

Crasi admitted that he ventured into the market of home

and assistive technologies "kicking and screaming" because

he was unfamiliar with the technologies. "Now, I'm using

the technology to gain an edge on the market and stay in

business."

Getting Started Crasi recommended that builders and

remodelers work with electronic systems contractors

(ESCs), who will help them address the market's needs. "An

experienced ESC will, no doubt, showcase where the

opportunities are. ESCs are like any other expert contractor,

but a one-on-one partnership is key."

Ric Johnson of Right at Home Technologies, an ESC based

in Waynesfield, Ohio, who provides home automation,

energy management, entertainment, security and health

and wellness services, said assistive technologies - such as

remote monitoring, cognitive exercises for brain

stimulation, prescription and medicine reminders - can help

residents stay in their homes much longer.

"Meet with all parties involved — the mother, father, son,caregivers, medical staff and others — so that both the

builder and ESC can create a comprehensive plan together

and build based on the customer's specific needs," Johnson

said.

"Go over their medical needs," he said. "Talk about

Industry News

Aging-In-Place: A way to differentiate yourself from the competition

"Go over their medical needs," he said. "Talk about their

exercise habits, if it's applicable. You want to create spaces

and install technology that add value to the routine in their

daily lives and make it easier."

Crasi said that builders, remodelers and ESCs should discuss

more than the home owner's needs when reviewing options

with families and caregivers.

"Talk about lifestyle and hobbies — and be sensitive to the

individuals involved during the interview process," he said.

"It's very important to be sensitive to the older person when

meeting with a group. It's easy to forget that, regardless of

where their level of comprehension lies, they need to be

included and welcomed into the discussion."

Comprehensive discussions are needed, Crasi said, because

"we are not medical professionals. If there are some issues

that are beyond our scope of knowledge, we need to be

made aware of them."

He cited the example of the need for more suitable flooring

for a client who uses a walker or shuffles when he walks.

"These types of details need to be established," Crasi said.

"Everything should remain familiar and comfortable for

owners of the home," Crasi said.

Building and Remodeling Opportunities Johnson said

clients generally have two possibilities — they can downsize

by building a new home, or they can remodel their existing

home so it better meets their needs as they age.

He said he worked with a builder using universal design

concepts "such as a no-step entry, everything on one level,

wider entry ways and more lighting."

With such a home, Johnson said, "there is no need to modify

the house as the owner ages. It can be prepared in advance."

He said the technology infrastructure can be pre-wired in

the home and, when the need arises, the home owner can

add appropriate technologies, such as "a telephone system

that works independently without a handset so, in an

emergency situation, there is no need for the home owner

to try to get to the phone or find it."

Johnson said that the second option of remodeling the

home for aging-in-place enables home owners to "keep

their memories of living in their house as they age, but they

maintain their health as well."

Options for the home owner, he said, can include opening

up the home for more natural light options and having all

the necessities on the main level and leaving the second

level for guests. Home automation systems can be added

to control the lighting or send temperature information to

smart HVAC systems.

Also, providing elderly home owners or their adult children

with peace of mind are security systems that monitor for

any intruder who might come into the home and also

safeguard against the occupant wandering away.

Remodeling a home for aging-in-place and including

assistive technology help the home owners on several

levels, Crasi said.

Both panelists said adult children can also remodel their

homes with aging-in-place features to accommodate an

elderly parent moving in with them.

An aging parent can help defray the cost of the renovation,

and the improvements to the home can be considered

cost-effective if they are less expnsive than nursing home

care or they increase the value of the property.

The panelists also pointed out that assistive technology

features can be installed at manageable cost. Crasi and

Johnson said they worked together on an affordable home

project where they provided lighting control, HVAC and

security for roughly $1,500.

"In the aging-in-place market where there is a great deal of

technology associated with care, the builder creates a

custom living space, and the ECS provides solutions to

aging-in-place realities," Johnson said.

Missed a publication?Past issues of the following publications are now

available on www.northlandareabuilders.com/?110260.If you aren’t receiving these publications, please contact

the NABA office to update your email address or faxnumber.

The Construction Times 2012 - monthly electronic newsletter about general Association activities and industry news.The Home Builder Public Policy Post - monthly electronic newsletter about housing advocacy and legislation.Economic Indicators - monthly electronic newsletter about housing economics.Membership Matters - quarterly mailed newsletter about membership benefits and services.Weekly Job Report - weekly electronic summary with links to projects out for bid in the five counties NABA serves andsurround communities. Members must log into the Members Only portion of the NABA website to view.

2012 NABA Legislative Session Recap - electronic summary of housing and business related bills and voting records ofyour elected officials