you - PBA Forms, etc.
Transcription
you - PBA Forms, etc.
A publication of the Pennsylvania Builders Association PRIMROSE HOMES An Outstanding Builder in Pennsylvania 2 | Keystone Builder • January/February 2013 2012 Officers President Warren Peter Vice President Larry Eberly Associate Vice President Elizabeth Dupuis Secretary Kevin Coutts Treasurer Richard Clawson Immediate Past President Ray Venema 2013 Officers President Larry Eberly Vice President Kevin Coutts Associate Vice President Betsy Dupuis Secretary Peter Gallagher Treasurer Joe Harcum Immediate Past President Warren Peter Keystone Builder Official Magazine of PBA Pennsylvania Builders Association 600 North Twelfth Street Lemoyne, PA 17043 Phone: 800-692-7339 or 717-730-4380 Fax 717-730-4396 www.PaBuilders.org Statements and opinions in thismagazine are the responsibility of the authors alone and do not imply an opinion on the part of the publishers. This publication is copyrighted and materials herein may not be reproduced without written permission. President’s Message by Warren Peter, PBA President Let’s make 2013 about reshaping our future My predecessors warned me that my one year as PBA president would fly by. Boy, they weren’t kidding! Though many issues vital to our industry tend to outlive the terms of your association president, I am pleased to report that we have been able to accomplish quite a lot in 2012, despite some challenges. • Successfully transitioned our new EVP, Jennifer Casey • Held a very effective Legislative Social on May 1 – hopefully the first of many • Hired Melissa Longenberger, Membership Coordinator • Hired Brent Sailhamer, Government Relations Director Brent and the rest of the GA team have had a great legislative run in 2012. Make sure to check out the GA update in this issue. I am confident that our staff is talented, capable and committed and I’m very proud of the team that they have become. In addition to providing you with an efficient and well-run organization, our priority going forward is to invest in the locals, work TOGETHER as a unified team and begin growing this association again. We need every one of you to help with this. Membership is every member’s job and we must find ways to recruit new members who can continue to steer this association and our focus in the very best interest of our industry. We know how much this industry contributes to positive economic growth in PA – help us tell that story. You have an opportunity in 2013 to help reshape the future of PBA. Join a committee or council. Get involved and share your ideas. Members who are active and engaged are the lifeblood of this organization and will be its future. Thank you for the honor of serving as your 2012 President. I want to thank the staff, the executive committee and the membership for the opportunity. I am very encouraged by the strength of the 2013 leadership team. I know that Larry Eberly and his team are committed to doing great things! I look forward to continuing to work with PBA leadership and with you, and wish all a happy and prosperous 2013. To view a digital edition of this issue please go to our website www.BuildersAndAssociates.com January/February 2013 • Keystone Builder | 3 in this issue... 10 Feature Story Primrose Homes An Outstanding Builder in Pennsylvania 3 President’s Message – Warren Peter ADVERTISER’S INDEX 5 Publisher’s Column Cardello Electric............................8 Allegheny Millwork........................7 Cranberry Supply Co., Inc.............7 6 Involvement Equals Victory 8 Collaboration at Work 10 Primrose Homes - An Outstanding Builder in Pennsylvania 16 Veria, Greece | Remodeling and Old City 18 Scenes From PBA Meeting 2012 22 PBA Recognizes Affiliate Members 23 OSHA Exec and Congressman Advocate for PBA 24 A Look Back Crescent Bath & Kitchens.............7 Lezzer Lumber...............................6 Norandex.....................................30 Old Republic National Title Insurance Co...............Inside Front Photography by Dimitri.Inside Back PBA 2012 Gala Awards...............22 PUBLISHERS Evelyn & Dimitri Ganas Contact information: Evelyn & Dimitri Ganas, Publishers KB Magazine 146 Hospital Road Gettysburg PA, 17325 (717) 334-2490 Fax 717-334-6628 26 Obama Wins Election Health Care Reform Law Here to Stay Photography Dimitri Ganas Gettysburg, PA 17325 29 How to Analyze the Performance of your Business Printing Marty Martinson WizePrint Printing Cortaro, AZ 4 | Keystone Builder • January/February 2013 From the publisher A couple of months ago, Melissa Etshied, PBA’s Director of Public Relations, contacted us about becoming the publishers of Keystone Builder, the official Magazine of PBA, and here we are with the first issue. Please let us introduce ourselves. We are Evelyn and Dimitri Ganas, with our home base in Gettysburg, Pennsylvania. We are new to this magazine, but certainly not new to the building industry in Pennsylvania. I have been a member of PBA, being a member of the Home Builders Association of Metro Harrisburg, and the B.I.A. of Lancaster County since 1985, every year through and including 2012. When I first joined in 1985 and until 2009 my membership was listed under Builder/Architect Magazine, the publication I did at that time. For five years during that time I also published Builder/Architect for Philadelphia and during those 5 years I was also a member of the Chester and Delaware Counties Association, and a member of HBAM when I published Builder/Architect Magazine for Baltimore. Dimitri came on board as my photographer for the Philadelphia Builder/Architect in 1990, later took over as photographer for the Baltimore and Central PA Builder/ Architects. Dimitri was a member of York Builders Association under Photography by Dimitri for a number of years. I resigned as a Builder/ Architect publisher in November of 2009 and in January of 2010, Dimitri and I came out with the first issue of our own magazine, Builders & Associates, a regional magazine for the building industry in Central PA, covering the area including Harrisburg, York, Lancaster, Reading, Berks County, Chambersburg, Gettysburg, and Hanover. We are very excited about this opportunity to expand state-wide and are really looking forward to making new friends as we work to serve the industry throughout the state. Our first goal with this publication is to make PBA happy by providing a first class venue for their news. This gives PBA the opportunity to make sure that each and every one of their members is totally informed about important legislative issues that affect each member as we are all striving to promote our businesses. Dimitri and I are not subsidized by PBA to produce this magazine so we depend totally on advertising dollars to make it possible to print. We want to take this opportunity to thank Vicki Shannon of the McNaughton Companies, and Scott Swartz, of Swartz Supply, for taking their time to introduce us to a number of potential advertisers. Also we would like to extend our thanks to Jeff Martin of Primrose Homes for his help in that regard. PBA has told us that they would like to have a spring and fall issue in 2013. We already have a couple of companies that have reserved ad space for those two magazines. If any of you reading this column would like to have your advertising message reach approximately 6,500 key players in the building industry throughout Pennsylvania, please, contact us at [email protected] or call 717-334-2490 and let us know. As you see we have started off with this 32-page magazine, but if advertising increases we will increase the number of pages in the magazine. Every issue will be on our web page www. BuildersAndAssociates.com with a link between all ads and the advertiser’s web page. We are very open to hearing from you about what else you would like to see in this magazine in addition to what you see in this first issue. See you at the Wyndham in Gettysburg in March, Evelyn & Dimitri January/February 2013 • Keystone Builder | 5 Involvement Equals Victory Brent Sailhamer, Director of Government Affairs Despite the outcome of the election, consider the numbers: • 5,117 get-out-the-vote (GOTV) locations in battleground states alone • 1,792,261 newly registered voters • 125,646,479 personal visits or phone calls to voters More than 3.1 million individual donors $1 billion in total fundraising When you add the numbers up, you get a simple formula: involvement equals victory. The same is true for any organization; “We must all hang together, or surely we will hang separately.” The true strength of any organization is its size. Whether it results in purchasing power, cooperative benefits, or, in the case of advocacy, a stronger influence, the power of 100 is almost always better than the power of 1. Subsequently, the larger the organization, the easier it is on each Lezzer Lumber - Providing Qualtiy Products and Service Since 1927 w w w. l e z z e r l u m b e r. c o m 9 contractor locations across the state • Butler 724-282-3100 • Indiana 724-349-2281 • DuBois 814-371-9311 • Curwensville 814-236-0220 • State College 813-237-3511 • Pennsdale 570-546-8026 • Harrisburg 717-526-4781 • Lancaster 717-393-3605 • Manheim 717-665-3592 Commercial Door facitities in Williamsport, Manheim, State College and Curwensville Roof and Wall Trusses facility located in Curwensville Lezzer Insulation Services located in Pennsdale, Butler and Curwensville REQUEST A QUOTE FROM OUR WEBSITE 24 HOURS A DAY - 7 DAYS A WEEK 6 | Keystone Builder • January/February 2013 individual to play a role in those successes. And when it comes to government affairs, the same is true. For each victory that PBA claims, there are countless hours that many of our members dedicate to make sure efforts are successful. For many members, it’s just an hour or two here or there, but as an association, those hours turn into days and weeks, which is where the true strength of the organization is revealed. Elected officials are acutely aware of their constituency and know who to seek out for advice, assistance, and information. They also know what it takes to get things done and the amount of work that goes on behind the scenes. By getting involved, you not only identify yourself to elected officials, staff, and other leaders as a knowledgeable asset on builder issues, but also as part of a statewide association that carries with it political clout, a wealth of knowledge, and thousands of allies. “All politics is local.” When it comes to direct contact efforts, many folks, particularly those who have avoided the political process, are hesitant to get involved. And understandably so – politics always seems like such a headache, so why invite trouble? But the secret is that direct contact programs, like PBA’s Hammers & Gavels Club, is probably the single greatest weapon in lobbying and advocacy and the reason for nearly every victory. The strongest direct contact programs, developed in the early days of labor unions, had enormous power. Just the threat of such a program was often enough to produce results. Even today, elected officials know the capability of direct contact programs – how they can shut down phone lines, expose issues in local press, create a snowball effect and force a backlash of public support – and how dangerous those programs can be. The best part is that it’s incredibly easy (and FREE!) to join Hammers & Gavels Club and the benefits are immeasurable. The biggest commitment is finding a couple hours every year (that’s right, just a couple hours a year) to help out. The process is also simple, and only three steps: 1) Work with PBA staff to get a good idea of the issues that we face, as well as some background on your elected officials, 2) reach out to your own elected officials a couple times a year and let them know that, as a voting constituent, you are concerned about an issue, and 3) celebrate your victory! In return, you’ll get access to all kinds of opportunities and the best part? You choose your own level of involvement. Some members are happy just to make some phone calls and see a bill pass because of their action. Others get more involved and want to contribute, either to the Pennsylvania Committee for Affordable Housing (PaCAH) or the Builder Victory Fund (BVF). And still others want to play a stronger role, and choose to join the Committee of 75, an individual donor program for larger contributions. Whatever role you choose, you’ll know you’re helping “We built the kind of campaign that made people want to volunteer.” - Jim Messina, Campaign Manager for Obama for America thousands of home builders and millions of Pennsylvanians just through a couple hours a year. “If you’re not actively involved in getting what you want, you don’t really want it.” Every second of time that our members commit to a legislative victory is essential to that success, so whether you invest an hour or a day, PBA and our thousands of members statewide could not be victorious without you. But it is essential to be involved somehow. We have several ways to get involved. If you’re looking to learn more about the process and how legislation affects your business, then the Hammers & Gavels Club is for you! It’s free and easy and you decide how much time it takes. If you’re interested in becoming more invested in the political process, then consider PaCAH. Every local association and every region elect PaCAH representatives to make decisions about political contributions, support, and endorsements. If you’d rather just help out the cause, you can always contribute to the Builder Victory Fund, which helps raise awareness and fund issue-based campaigns. And finally, if you’re convinced that now is the time to make a difference (and it is), then consider joining the Committee of 75, a higher level donor program that makes a huge difference in who wins and who loses elections. In the end, the choice is yours. However you want to get involved, PBA is here to help. But doing something is better than doing nothing. Because by now, you know that involvement equals victory and PBA is building the kind of campaign that makes people want to volunteer. and Congratula�ons to Jeff Mar�n and all of the Team at Primrose Homes! Best wishes for con�nued success. Call or visit Allegheny Millwork & Lumber for all your Marvin Window needs. 1001 Muriel Street • Pi�sburgh, PA 15203 AlleghenyMillworkLumber.com 412·431·4224 HIC #PA025367 Congratulations to Jeff Martin and everyone at Primrose Homes January/February 2013 • Keystone Builder | 7 Collaboration at Work PennDOT and PBA. Positive change is happening. Developers working in the industry know that historically, the process involved in Highway Occupancy Permits (HOPs) could be trying. Working together, PBA and PennDOT have been able to implement positive change for both land owners and developers. Thanks to our volunteer Committee Chairs on this project – Mark Stanley and Mark McNaughton - for their leadership and commitment to making a difference on behalf of the building industry! Highway Occupancy Permits Background Overview Highway Occupancy Permits (HOPs) are required by the Pennsylvania Department of Transportation (PennDOT) for any developer building residential, commercial or industrial projects that requires access to a state-owned road. Prior to recent changes,the permitting process could be onerous. A traffic study, paid for by the developer, must be completed to determine the transportation impacts that will result from the project. The developer is responsible for the costs to mitigate transportation impacts (like an additional lane or installation of a traffic signal) that are identified in the study. If the study reveals an additional lane or more signal lights are necessary to handle added flows of traffic, the state will require the developer to cover those costs regardless of the amount of new traffic the development may add. Although in the case of local municipal planning, the municipality and the developer normally each pay a pre-determined “fair share” of project costs, the state does not rely on the same fair share standards. Looking to Streamline Processes and Get Back to Work Those in the home building industry that have survived the economic downturn know that it is critical to remove obstacles from the path of recovery wherever possible. In 2011, PBA members made it a priority PBA Committee Co-Chairs Mark Stanley and Mark McNaughton, Michael Dzurko, PennDOT Program Manager, Highway Occupancy Permits, and Glenn Rowe P.E., Division Chief, PennDOT 8 | Keystone Builder • January/February 2013 to establish a committee focused on working with PennDOT on the Reform of the Highway Occupancy Permit Program. Key items to address were: Access impacts and Indemnification Fair Share Fast forward to a year later, and Meanwhile, Governor Corbett made PBA’s Committee co-chairs both reforming state government a key couldn’t be more priority of his adminpleased. “Right from istration. This included the start, PennDOT’s cutting the size and “We are lookwillingness to talk, cost of government, ing for ways to listen, and address ensuring efficient use do things more concerns set the of taxpayer dollars and tone for what came re-examining how the efficiently,” next,” said Mark state works with em- Glenn Rowe, P.E. McNaughton. Mcployers and business. PennDOT Naughton gives a lot “We are looking for of the credit to the ways to do things more Department Secefficiently,” said Glenn Rowe, P.E. retary Barry Schoch. “He was in the PennDOT Division Chief, Traffic private sector at one time and underEngineering and Permits.” Under stands the business end of things. He Governor Corbett, streamlining the allows his staff to share his philosopermitting process through the use of phy and be receptive to moving in a technology became a top priority.” more collaborative direction.” In August of 2011, with the ePerRegarding the collaboration from Penmitting process already underway, nDOT’s perspective, “It’s about being co-chairs of PBA’s Reform PennDot’s a good partner, making the overall Highway Occupancy Permit Program process less onerous and supporting Committee, Mark McNaughton and economic development,” said Glenn Mark Stanley, set up a meeting with Rowe. the PA Department of Transportation’s Access impacts and Secretary Barry Schoch and Deputy Secretary, Scott Christie. Indemnification Certain instances may require a PBA supports PennDOT’s role and developer indemnify the Department understands the need to have rules as part of the permitting process. For and a process in place to protect the instance, if the developer proposes infrastructure, ensure safety, and to to construct a turn lane in front of help minimize defaults and risks. someone else’s property, the developHowever, PBA members wanted to er is required to obtain the impacted discuss ways to improve the existing property owner’s approval. If they are process and to work together with the unsuccessful at securing approval, the Department in support of economic developer has the option to indemnify development. The intent of the meetthe Department in order to proceed ing was to discuss working toward a with obtaining a permit. more collaborative, less adversarial working relationship with PennDOT, As a matter of policy, PennDOT and a streamlined process for Highrequired the developer to obtain perway Occupancy Permits (HOPs). mission by way of a release form that the impacted property owner signs. The form releases the Commonwealth from all suits, damages, and claims that may arise as a result of granting the permit. PennDOT was asked to reconsider their policy because many developers found it difficult to obtain signatures. Nine months after the initial meeting, PennDOT issued a Strike-off Letter to implement a more workable process and form. Included in the changes are an access approval procedure worksheet, which provides clear step-bystep direction to the applicant, and a sample approval letter. According to McNaughton, “The new form makes all of the difference. It encourages open communication between the developer and impacted property owners. Property owners now understand what they are signing.” According to Stanley, “One of the significant changes to the Indemnification agreement was the narrowing of the scope of the indemnification that owners were asked to sign. Previously the indemnification section of the agreement covered claims, damages and costs that could arise out of the “construction, design or use of the structure or facility that is the subject of the Permit.” In working with the Department, the PBA Task Force was able to significantly narrow the scope of the indemnification to claims and damages that only identified property owners could assert under the Eminent Domain Code. From a builder’s perspective, these changes are significant for several reasons. First, the potential claimants are limited to the property owners identified on Exhibit “A” to the Indemnification AgreeContinued on page 28 January/February 2013 • Keystone Builder | 9 Primrose Homes An Outstanding Builder in Pennsylvania J eff Martin, Primrose Homes, recently was featured in Pittsburgh Magazine with his Home of the Year, a 5,300 sq. ft. Victorian dream home for a client in the Lake MacLeod, neighborhood of Gibsonia. The splendid home has an infusion of sustainable green design concepts with all the style of a traditional older Victorian home, including wraparound porches and distinct architectural features. Jonathan Iams, owner, said, “The detail in the fireplaces makes me feel like I’ve been transported to a modern version of a 100 year old home”. 10 | Keystone Builder • January/February 2013 Upper Left Jeff Martin – Owner, and Adam Stickle General Manager Lower Left The Queen Anne Victorian that was the winner of BAMP’s Housing excellence awards in 2011 for the best single family home in Pittsburgh. Upper Right Four level Tuscan inspired home. Winner of the best single family home under $2 million for the Builder Association of Metropolitan Pittsburgh Housing Excellence awards Lower Right Period appropriate fireplace surround and office trim build ups for this Victorian Queen Anne home January/February 2013 • Keystone Builder | 11 The owners also said they enjoyed working with Jeff Martin and his team at Primrose, appreciating their positive approach and enthusiasm for the project. Primrose Homes is a design/build company committed to delivering a great value to all clients. Projects range from luxury homes to large renovation projects, to high-end office build-outs. Jeff Martin says “When building, we don’t build houses we build homes. We are committed to delivering value to clients by providing a highly professional team that operates under the directive: Build a home as if it were for your own family.” In 2011 Primrose Homes received the Housing Excellence Award for Best Single Family home over $1,000,000 and the Best Single Family Green Home over $500,000. Above and Upper Right The stunning custom kitchen cabinetry in all of these photos was created by Heart of the Home Designs from the Meadville, Pa area. Lower Right The lower level bar has a contemporary flare. 12 | Keystone Builder • January/February 2013 Primrose specializes in researching the most cost effective building materials and developing an individual style home for each client. Primrose Homes utilizes the beautiful custom cabinetry from Heart of the Home Designs, in their exceptional homes. Heart of the Home is owned and operated by Jeff Martin. The Award-winning home has a highly-efficient geo-thermal heating and cooling system by Iams Consulting, LLC. The system included domestic hot water, geo-thermal derived radiant flooring, high efficiency plumbing fixtures, PEX piping systems, LED lighting, LUTRON Homeworks lighting controls and a Creston home Automation system. The house is 50% above code for energy efficiency. Pete and Melissa Blackwood of Blackwood & Associates created the interior design and landscaping for the home. CornerStone Designs, a Seattle based firm, with a niche for design, created the design of the lovely Victorian-style home. Jeff Martin started Primrose Homes 9 years ago. Prior to that Jeff’s entire career was in the steel business. When close friends built a home, doing all of the work themselves, while living with him, Jeff fell in love with the process. Jeff and his wife decided to build a home for themselves and then founded Primrose Homes and continued to build. Primrose builds on the client’s lot or buys a lot to build on. Primrose does not get involved in creating developments. However they do build spec homes. Primrose’s price range is in the seven figures. Currently Primrose has a $2,000,000 spec home for sale. Primrose just finished a big home in Ligonier and also does a lot of high end remodel work in the three to four million dollar range per project. Primrose keeps a staff of skilled January/February 2013 • Keystone Builder | 13 craftsmen on hand to handle their jobs. Working with their sub-contractors on a long term basis also insures consistency of quality on all jobs. Some of these companies have done every home that Jeff Martin has built. Jeff’s sub-contractors and employees are trained to work as a team. Next year Jeff Martin will be president of the Builders Association of Metro Pittsburgh. He is enthusiastic about celebrating the 75th anniversary of BAMP while he is their president. To earmark their 75th anniversary they will be holding a dinner dance and interviewing each past president, thus documenting their history in the building industry. BAMP has a goal of constructing a “Handicap” playground in Mellon Park, if they can acquire the necessary funding. Another community service project BAMP recently finished was a remodel project for a Marine vet, John Kasky, who completed a 2nd deployment to Iraq and has four children. The remodel included a new kitchen, bath, flooring and garage doors. Jeff Martin is also active in the Pennsylvania Builders Association, serving on their board of directors. Jeff Martin has been at the helm of Primrose Homes for 9 years and is proud to say his company grew every year in sales. Jeff’s son-in-law, Adam Stickle, helps run the building company and is general manager of Heart of the Home Designs, their cabinet company. It is quite apparent that Jeff Martin and Primrose Homes are among Pittsburgh’s finest. Our congratulations to an “Outstanding Builder,” Jeff Martin, Primrose Homes. 14 | Keystone Builder • January/February 2013 Upper Left Foyer area featuring several arched top openings that are appropriate for that style of architecture Lower Left A master bath shower that continues the arched top features. Above The two-story great room offers amazing views of the lake. January/February 2013 • Keystone Builder | 15 top left Variegated12”x12”walltile withhandcraftedmarblelistellomake thiswalk-inshowersomethingspecial. Theflooringis2”x2”mosaicfloortile. Acustomshowerwithbodysprays andhand-heldsprayprovidescomfort forthisclient.Theskylightsbringin abundantnaturallight. top right Awalk-indoorlessshower waschosenbyExcel’sclientinthe historicdistrictofHarrisburg.Allceramic tileisrustic,individuallyhandcrafted tilewithunevenedgestoprovidean olderlook.Handpainteddecoinsertsof iridescentglasstileisusedintheniches. camera and lens on the second day) and I Acustomwatertowerandrainshower This page and most of the photos Thispageandthefirstfour was not able to bring back any pictures.arealsopartoftheproject. We on the opposite page show restored by Dimitri Ganas, Architectural Photographer picturesontheoppositepage shot some pictures with a friend’s point andbuildings, keeping the original stone bottom showrestoredbuildings, shoot camera and some with my iPhone butof theExcelreceivedaPyramid ByDimitriGanas,Architectural buildings and road surface. camera and some with my iPhone, but On our trip to Greece and the Island Awardforthisluxurybathwithbird’s keepingtheoriginalstone nothing to show here. Photographer Color contrast varies from subtle earth of Santorini in 2010, I was plannothing to show here. eyemapleveneercabinetry,stained tones toofthebuildingsandroad strong yellows and blues. However, on a previous trip to Greece In thetolast the magazine, I ning getissue someofreally great photos. surface.Colorcontrastvaries keeps the style of the However, onwhere a previous trip toresides, GreeceI concretecountertop,onyxbacksplash, to the city my brother shot The architecture mentioned goingdifficulties on a Greek andvesselbowls.Theopenbeam Howeverthat duewe towere technical fromsubtleearthcolorsto area intact and transfers you back to a to some the city where my brother now pictures of the old town of Veria.structureandawaterfeature,notseen vacation to the island Santorini in on ( a strong wind, 50ofmph of more, differentstrongyellowsandblues.The time and era just a few blocks resides, I Veria shot some pictures ofinthe Today, is a modern city the northern inthispicture,addtothedramaof September I mentioned that knocked I might from the town square. The picture architecturekeepsthestyleof the top ofand a hill in Santorini, oldpart town of Veria. Veria of Greece butToday it dates backistoaancient on the far right of the opposite page thisproject. theareaintactandtransfers down my tripod to with camera and lens modern have some pictures show you. However, the 6northwestern partVergina, times. city It is in about miles away from shows ayoubackinadifferenttime finished project next to one ontothe seconddifficulties day) and I(awas not wind, able due technical strong of where GreecePhillip but itII, dates back to ancientthe PhotoscourtesyofExcelInterior that didanderajustafewblocksfrom not survive the elements. father of Alexander bring back any pictures. 50to mph or more, on the top of aWe hillshot in times. It is about 6 miles away from Concepts&Construction. Great, lived, had his palace, was murdered thetownsquare. - Photos by Dimitri Ganas some pictures with a point-and-shoot Santorini, knocked down my tripod with Veria,Greece– Veria, Greece - Remodeling an Old City RemodelinganOldCity 2016 Builders 12 & Associates Magazine Nov/Dec 2010 Builder • January/February 2013 | Keystone used today as residences and businesses. and buried.where Just about 30–40 years of Verginia, Phillip II, father more and more remodeling projects Through my photography business, I see ago archaeologists dug up the royal Alexander the Great, lived, had his rather than new construction. Many of a trend the last 2–3 years to photograph tombs and burial ground and now it is a palace, was murdered, and buried. the projects that I photograph involve more and more remodeling projects museum, all 30 underground a hill. Just about - 40 years inside ago archaeremodeling of newer structures built rather than new construction. Aologists unique, dug must-see museum for anyone up the royal tombs and in the 1950s or later but I alsoMany pho-of the projects that I photograph involve interested in ancient history. burial ground and now it is a musetograph quite a lot of restoring and remodeling of newer structures built in um, all isunderground inside hill. A remodeling of old buildings especially Veria also one of the citiesa that the 1950s or laterinbut photograph unique,Paul must-see museum for to anyone old farmhouses theI also Lancaster area. Apostle went and preached quite a lot of restoring and remodeling of interested in ancient history. the people and converted them to I find it very fascinating to observe old buildings especially old farmhouses Christianity. place Veria is alsoYou onecan of see the the cities thatthat the differences but also the similarin the Lancaster area. labor and materials supplied and used work with a limited done Paul used Paul to preach thepreached local people. Apostle wenttoand to in thethe contract ities of restoring/remodeling five year warranty. A copy of this warranty can be viewed on Excel’s find it very fascinating to observe people andwent converted cultures, thousands of The city throughthem manyto Christi- by Idifferent website, excelremodeling.com the differences but also the anity. You can see that and Paul miles apart. I enjoy takingsimilarities picture of of transformations overthe theplace centuries restoring/remodeling done by different Theare comment from Diane Cliff Craver,this recent summed used to preach to the local and people. typeExcel and Iclients, hope you enjoy seeing there a lot of old buildings, some cultures, thousands of miles apart. up how clients feel about Excel. “Our experience with your company was them. several centuries old, most of them in one The city went through many transfortruly a delightful and rewarding experience. YourI enjoy company waspictures true to of this type taking part of the city, downtown, surrounded mations over the centuries and there its word in every way. Excel promised work to be done in a clean, by thea modern structures and severand I hope you enjoytimely seeing them. are lot of oldcity buildings, some fashion with open channels of communications and you did!” buildings. al centuries old, most and Marian Birth expressed similar sentiments, “Why do we ofKeith in one part I them just wanted to show keep coming back old to Excel for home improvement projects (four in all)? In of the city, downyou some of these addition toand thehow factthey that town, surrounded by we have always been satisfied with the results, we buildings modern strucare always pleased with have beencity restored the the process.” tures and buildings. lastExcel’s mission few decades and is to “improve lives…by providing a convenient and enjoyable I just wantedremodeling to show experience. We will focus on you and your unique needs. will design and build a project that is just right for you some of We these Thelastpictureon old buildings and thispageshows howThebathremodelseenherehasglazedcabinetry,granite they have been top afinishedproject restored the last few countertops,showerwallswithrecessednicheshelvingandglass nexttoonethatdid decades and used windows. notsurvivetimeand today as residencPhotocourtesyofExcelInteriorConcepts&Construction. theelementsandis es and businesses. waitingitsturnto bottom ThroughThewalk-inshower,Bertchcabinetry,honedgranite my photogberestored. countertopsandglazedslateflooringareimpressiveinthisspacious raphy business, I see luxurybath. a trend the last 2-3 PhotosbyDimitri years to photograph PhotobyDimitriGanas. Ganas. Builders & Associates Magazine Nov/Dec 2010 13 January/February 2013 • Keystone Builder | 1721 Scenes from PBA Meeting November 2012 at Cranberry Twp 18 | Keystone Builder • January/February 2013 January/February 2013 • Keystone Builder | 19 20 | Keystone Builder • January/February 2013 January/February 2013 • Keystone Builder | 21 PBA Recognizes Affiliate Members Melissa Longenberger, Membership Coordinator As many associations struggle to recruit and retain members and convert them to active, participating individuals, PBA is opening the doors to affiliate members throughout the state to encourage the next generation of our members. Some local associations and NAHB have recognized affiliate members for years as a way to reach more individuals at member businesses. Many times the main contact - that holds the membership - is the owner, president or CFO, who may not have the time to be actively involved in the builders association. With an affiliate membership employees can receive the same benefits, access and involvement that the primary contact enjoys. An affiliate member is any employee of a builder or associate member of the same local association. If you have employees that you would like to see more involved in your local association and Pennsylvania Builders Association, or are an employee yourself, reach out to your local today and ask if they recognize affiliate membership. 2012 GALA Awards Recognizing PBA’s Industry Leaders - Builder of the Year - Associate of the Year - Best Local Newsletter - Best Community Service Project (NEW!) - Builders & Shakers Award (NEW!) Easy, online nomination forms - �ind the link at pabuilders.org pabuilders.o Deadline is January 7, 2013!!! 22 | Keystone Builder • January/February 2013 OSHA Exec’ and Congressman Advocate on Behalf of PBA Members in Susquehanna Valley Bombarded by reports of OSHA staff exceeding authority and ethical boundaries, EO Reva Dunkle enlisted the support of Representative Tom Marino, who has called for an investigation. As Reva Dunkle, Executive Officer of the Central Susquehanna Builders Association (CSBA) started getting complaints from members in her local area about OSHA compliance officers using intimidation, inappropriate behavior, animosity against their businesses, and incorrect or falsely charged citations, to name a few infractions – earlier in 2012. Dunkle listened to her members, collected information and documented everything. CSBA contracted Dr. Janine McCartney, a 23 year veteran safety engineer, and ex-OSHA Consultation staff, to teach construction safety classes. McCartney was asked to look at the complaints. She evaluated many reports from contractors per OSHA’s field operations manual and OSHA directives. McCartney found clear violations of both, and that inspectors “have exceeded their authority.” Dunkle and McCartney have been working tirelessly, during this past year to accurately document the historical record of complaints, so one body of knowledge would be assembled. Dunkle also has formally instituted a Hotline at CSBA to document complaints. Marino (R-10) during two town hall meetings. Marino, who has been a tireless advocate for his constituents, listened to his PBA member constituents and acted swiftly after learning of the allegations. On October 22, Marino called for action in support of home builders and contractors in a letter to OSHA Assistant Secretary David Morris Michaels. “I fully support the role of OSHA in • An OSHA staff member left gifts for management after an inspection, and detained employees against their will in the OSHA staffer’s personal vehicle. On October 26, Rep. Marino’s office put out a press release announcing his call for an OSHA investigation. “We received the letter, and we are reviewing it,” a U.S. Department of Labor spokesperson told The Sunbury Daily Item. As of the printing of this publication, we are not aware of any official statements from OSHA. Dunkle and McCartney have been working tirelessly, during this past year to accurately document the historical record of complaints. Dunkle was successful at getting the attention of Representative Tom reducing workplace hazards,” Marino wrote in the letter, “but the reports of misbehavior by OSHA inspectors are stunning, and OSHA should immediately and thoroughly investigate these incidents.” Specific allegations include: • Improperly documented citations, such as issuing two citations for a single act; • Falsely reporting facts as the basis for a citation; • Unnecessarily prolonged and warrantless inspections; and • Allegedly committing sexual harassment for unwarranted and unwelcome attention to a female construction worker. Without the assistance of Representative Marino, the PBA members would have no hope of obtaining justice. Much gratitude goes to Representative Marino and his staff for stepping up to a government entity without hesitation on behalf of his constituents in the building industry. “Tom Marino is an honorable man and a great leader,” said Ray Venema, PBA’s Immediate Past President and a builder in the Williamsport area. PBA is also grateful to Reva Dunkle for fighting on behalf of her members and taking the right steps in a situation that was unprecedented, difficult and very uncomfortable. PBA will keep you informed on the progress of this story as new information becomes available. Look for updates via your PBA e-mail newsletters and social media, like Facebook, twitter and LinkedIn. January/February 2013 • Keystone Builder | 23 A Look Back… W ith the 2011-2012 legislative cycle now at a close, we can look back at one of the most tumultuous and fast-paced periods for Pennsylvania’s home builders. While the past two years have seen a continued struggle for home builders to operate at the level of days gone by, they also strengthened the unity of builders through resolve and a cooperative effort to fight back against restrictive government mandates that threatened to kill the industry. We’ve highlighted a few of the most notable successes that PBA members helped achieve in the past two years: sylvania Construction Code was the keystone victory for PBA this legislative cycle. The Act removes the sprinkler mandate that was placed into the code by the automatic adoption process and also made changes on how the adoption process works. A huge win for PBA members and builders across the state, this legislation saved millions for the industry and sent a strong message about the need for reduced government mandates on a struggling industry sector. (Act 52 of 2011) – After establishing the Home Improvement Contractor Protection Act (HICPA) in 2008, PBA and the legislature worked to improve on the existing law by creating the Home Improvement Account. This legislation goes a long way to help improve the HICPA for retailers, contractors and consumers, ensuring that customers are adequately protected when undertaking home improvement projects. More importantly, it establishes a process for the Attorney General’s office to collect fees in a restricted account and use that funding for enforcement. As we move into 2013, the Attorney General’s office will have the adequate resources they need to aggressively focus on home improvement contractor enforcement. While the past two years have seen a continued struggle for home builders to operate at the level of days gone by, they also strengthened the unity of builders. • Permit Extensions (Act 87 of 2012) Act 87 addresses the state’s Fiscal code, and also extends previously approved state and local building-related permits until July 2, 2016. In days when financing is tighter and markets are sluggish, maintaining approved building permits for projects is critical to home builders’ success. • The bill maintains that the running of any permit which was approved or which expired between December 31, 2008 and July 2, 2013 will be automatically suspended until July 2, 2016. This extension includes erosion & sediment (E&S) control permits, Clean Streams Law permits, and Sewage Facilities Act permits. • Sprinkler Mandate (Act 1 of 2011) – The removal of the sprinkler mandate from the Penn- 24 | • Data Quality Act (Act 60 of 2011) – Act 60 amends the Regulatory Review Act to make sure state agencies use acceptable data in developing new regulations. Previous to its passage, agencies relied on unverified evidence to support the need for new and proposed regulations, which often resulted in unnecessary restrictions on businesses, particularly homebuilders. As one of the industries most susceptible to overregulation, home builders worked to ensure a fairer process, which now requires empirical, replicable, or testable data. • Home Improvement Account Keystone Builder • January/February 2013 • Municipal Abuse (Act 154 and Act 155 of 2012) – A long-time focus of PBA members, Act 154 and Act 155 of 2012 take the first steps to addressing continued concerns of municipal billing abuse. The bills protect builders by allowing more time to review and dispute invoices, establishing limits on required securities for public improvements, and assessing penalties on municipal engineers who overbill builders. While more efforts will continue in the future, the legislation sent a firm message to municipalities who financially exploit builders. PBA also achieved a number of other victories for the home building indus- try, both through individual efforts and cooperative efforts with industry partners, including: defending against DEP regulation of water well construction, allowing municipal joint boards of appeal for building codes concerns, defending against the application of sales tax on construction-related services, and requiring state agencies to determine the financial impact on small business before the creation of any new regulation. Around the Corner… With 2013 comes a renewed opportunity to improve the climate for home building in Pennsylvania. The 2012 elections did little to change the makeup of the legislature in Pennsylvania – the House of Representatives will remain in Republican control by a 111-92 majority, while Democrats picked up three seats in the Pennsylvania Senate, reducing the Republican majority there to a 27-23 margin. Pennsylvania also elected the first female and Democrat as Attorney General in Kathleen Kane. Kane has pledged to focus on consumer protection issues, which is encouraging for strong enforcement of the HICPA. Other issues that will be of concern in 2013 and beyond are: • Property Tax Reform – One of the hottest topics in Pennsylvania for the past four decades, property tax reform advocates were led by Rep. Jim Cox in 2012 with his proposal, House Bill 1776. Unfortunately, the bill failed to make it past the House, owing in large part to its non-uniformity in its application of sales tax and its inability to capture sufficient revenues to fund Pennsylvania’s public education system. • In 2013, PBA will be a stronger voice in the conversation on property tax reform, particularly due to the recent work of the Property Tax Reform Task Force. As always, the goal will be to protect builders while advancing the cause of improving the real estate and home building industries by eliminating or reducing this burdensome tax. • Environmental Restrictions – An issue of concern for nearly every PBA member, environmental concerns affect every region of With 2013 comes a renewed opportunity to improve the climate for home building in Pennsylvania. Pennsylvania. From mine reclamation and water well construction in western Pennsylvania, to erosion & sediment control and protected waters in the eastern region, the environmental restrictions on builders have many faces. As the Commonwealth struggles to comply with its commitment to the Chesapeake Bay Tributary Strategy through Total Maximum Daily Loads (TMDLs) and Watershed Improvement Plans (WIPs), PBA members are constantly working to reduce its harmful effects on business. • In the coming session, PBA will continue to focus on these issues, particularly to loosen the overly restrictive regulations of Title 25 Chapter 102, which governs erosion & sediment control. Coupled with this will be PBA’s continued involvement in monitoring and providing feedback on the DEP’s new Permit Decision Guarantee Program, which will go into effect, guaranteeing a definitive turnaround time for permit review. • Municipal Abuse – With the passage of Act 154 and Act 155, PBA sent a clear message that municipal billing abuse was a concern for builders and an issue that needs resolution. In the coming session, PBA will continue to work on this issue, focusing on limiting pass-through billing by municipal engineers. Because of the strong work that PBA members did on this issue this year, a coalition of stakeholders, including PBA, the Pennsylvania State Association of Township Supervisors, the American Council of Engineering Companies of Pennsylvania, and the Pennsylvania State Association of Boroughs, continues to focus on a solution to this issue. In addition, PBA will also be focusing on a number of issues to improve the business climate for home builders. By working together with industry stakeholders, we can advocate for builder-specific issues as well as larger issues that affect a wider range of Pennsylvanians, including: home mortgage protection and reform, changes to the Planned Communities Act, defense of buyer/seller contracts/ transactions, and transportation improvements. January/February 2013 • Keystone Builder | 25 Obama Wins Re-election Health Care Reform Law Here to Stay A Brought to you by Pennsylvania Builders Insurance Program fter hard-fought campaigns by both candidates, President Barack Obama has been re-elected for a second term in office. Obama’s victory in the election, along with last summer’s Supreme Court decision upholding the health care reform law, cements the Democratic Party’s dedication to the legislation. While opponents of the law have called for its repeal, health care reform’s supporters consider the legislation to be the major achievement of Obama’s first term. Obama’s re-election, along with continued Democratic control of the Senate, means that implementation of the law will now continue without additional roadblocks. What Do Employers Have To Do Next? With the landscape of employer-provided health care potentially changing over the next few years, employers should consider their future plans related to their role in employee health care. They may have to make some big decisions about whether to continue providing coverage to their employees. The “pay or play” penalties provide some incentive for employers to continue coverage, since they will be at risk for significant penalties if they do not. However, employers may decide that paying the penalty is more cost-effective than continuing to pay the ever-increasing costs of health care for employees and their families. On the other hand, uncertainty among employees about the quality and cost 26 | of individual health coverage continues to make employer-provided health coverage an attractive recruiting and retention tool. Because of these advantages, most employers plan to continue offering coverage for now. The additional uncertainty for employers, with compliance obligations hinging on court decisions and the political process, has made many companies hesitant to make any largescale changes. Whatever their future decisions may be, employers that will continue to sponsor group health plans for the near future must prepare for upcoming deadlines. Significant health care reform provisions with looming effective dates include: • Summary of Benefits and Coverage. Health plans and issuers must provide an SBC to participants and Whatever their future decisions may be, employers that will continue to sponsor group health plans for the near future must prepare for upcoming deadlines. beneficiaries that includes information about health plan benefits and coverage in plain language. The deadline for providing the SBC to participants and beneficiaries who Keystone Builder • January/February 2013 enroll or re-enroll during an open enrollment period is the first open enrollment period that begins on or after September 23, 2012. The SBC also must be provided to participants and beneficiaries who enroll other than through an open enrollment period (including individuals who are newly eligible for coverage and special enrollees) effective for plan years beginning on or after September 23, 2012. • 60-Days’ Notice of Plan Changes. A health plan or issuer must provide 60 days’ advance notice of any material modifications to the plan that are not related to renewals of coverage. Notice can be provided in an updated SBC or a separate summary of material modifications. This 60-day notice requirement becomes effective when the SBC requirement goes into effect for a health plan. • $2,500 Limit on Health FSA Contributions. The health care law will limit the amount of salary reduction contributions to health flexible spending accounts to $2,500 per year for plan years beginning on or after January 1, 2013. • W-2 Reporting. Beginning with the 2012 tax year, employers that are required to issue 250 or more W-2 Forms must report the aggregate cost of employer-sponsored group health coverage on employees’ W-2 Forms. The cost must be reported beginning with the 2012 W-2 Forms, which are issued in January 2013. • Preventive Care for Women. Effective for plan years beginning on or after August 1, 2012, non-grandfathered health plans must cover specific preventive care services for women without cost-sharing requirements. Calendar year plans must comply effective January 1, 2013. • Employee Notice of Ex changes. Effective March 1, 2013, employers must provide a notice to employees regarding the availability of the health care reform insurance exchanges. HHS has indicated that it plans on issuing model exchange notices in the future for employers to use. • Additional Medicare Tax for High-wage Workers. In 2013, health care reform increases the hospital insurance tax rate by 0.9 percentage points on wages over $200,000 for an individual ($250,000 for married couples filing jointly). Employers will have to withhold additional amounts once employees earn over $200,000 in a year. What Guidance Will We See? Regulations on a number of issues remain outstanding. The regulatory agencies responsible for implementation and enforcement of the health care reform law—the Departments of Labor, Treasury and Health and Human Services—began issuing additional guidance once the Supreme Court upheld the law. Additional guidance is expected now that the election is over. Issues that will likely be addressed in future guidance include: • Employer Pay or Play Mandate. The agencies are expected to, and have indicated that they will, issue more guidance for employers to help them determine how to comply with the shared responsibility provisions of the law. • Automatic Enrollment. The Department of Labor is required to issue regulations implementing the rule requiring large employers that offer health coverage to automatically enroll new employees in the health plan (and re-enroll current participants). • Nondiscrimination Rules for Fully-insured Plans. Under health care reform, non-grandfathered fully-insured plans will not be able to discriminate in favor of highly-compensated employees with respect to their health benefits. The IRS delayed the effective date of this rule for additional regulations, which have yet to be issued. government will step in and set up exchanges for states that fail to establish their own exchanges. Many states have delayed implementation and will need to accelerate their efforts if they want to run their own exchanges. Challenges For Implementation As we get closer to full implementation of the health care reform law, questions linger about whether the framework is in place for all pieces to be operational by their deadlines. Insufficient staffing of the responsible agencies is one potential issue, along with employer and state government hesitation or inability to implement certain parts of the law. Compliance efforts are likely to pick up now that the election is over. PBIP will continue to monitor progress of the health care reform law and its implementation and will keep you informed of important developments. This PBIP Legislative Brief is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2012 Zywave, Inc. All rights reserved. EAS 11/12 State governments may also take further steps to establish the health insurance exchanges required by the health care reform law. The federal January/February 2013 • Keystone Builder | 27 Collaboration Continued from page 9 ment. This was not the case under the prior arrangements. Second, it allows the builder to fairly and accurately identify the parameters of its potential exposure and make a business decision to proceed with a project or not. Under the prior indemnification it was fairly difficult to calculate the potential financial exposure under the indemnification. With economic conditions that all builders are confronting, this change is significant and will have positive impacts on the industry moving forward.” “Personal indemnification was a killer,” said PBA committee co-chair Mark Stanley. “What we have been able to accomplish in nine months’ time represents a significant and positive change for owners and developers. It is clear that from the top-down, the Governor recognizes how this industry can impact the economy and these changes allow for a more user-friendly process, which gets business moving.” Fair share The Fair Share aspect of the agenda will require some legislative work, but the Committee and PennDOT continue to communicate on this issue and PBA’s Governmental Affairs staff are working in conjunction with the County Commissioners Association to continue building the platform for moving forward. occupancy permits are now being processed in less than half the time compared to PennDOT’s old paper-based system, which means less down time for businesses and faster job creation.” According to Rowe, “Until last October, permit applications were submitted by hand or mailed to PennDOT Looking Forward offices. Now the process is entirely “Profound changes are happenelectronic and offers a great deal of ing and the work is ongoing,” said transparency. Applicants can easily PennDOT’s Glenn Rowe. PBA and check to see where in the process their PennDOT will continue to work together to affect positive change and permit status is, comments and attachments can be included in the review business growth. Both parties agree that working together allows them to process as well. Permits that used to draw upon the others’ knowledge base take 30 – 45 days to review are now by taking advantage of tools and skill being returned in 10 days.” sets unique to each. Most important- PennDOT’s ePermitting system for ly, collaboration is efficient, forms Highway Occupancy Permits was new relationships, and substantially recently presented with a regional improves the end result. Best Use of Innovation Award from ePermitting Saves Time the American Association of State Highway and Transportation Officials & Money (AASHTO). Also, Governor Corbett “PennDOT’s new ePermitting process presented the Governor’s Innovator is a perfect example of my commitAward to two PennDOT employees, ment to make state government more Glenn Rowe, and Roger Riley for responsive and less bureaucratic,” their roles in developing PennDOT’s said Governor Corbett. “Highway new electronic ePermitting system. 14% Increase in Building Permits, Year-to-Date Pennsylvania 2012 Single Family Home Permits Jan 739 Feb Mar Ap May Jun Jul Aug Sept Oct YTD 1036 1170 1350 1390 1382 1248 1211 1220 1349 12,095 Pennsylvania 2011 Single Family Home Permits Jan Feb 1329 822 28 | Mar 906 Ap May Jun Jul Aug Sept Oct YTD 1006 1062 1102 1015 1121 1158 1045 10,566 Keystone Builder • January/February 2013 How to Analyze the Performance of Your Business By David Coffman, CPA/ABV/CFF, CVA How is business? It is the superficial question many people ask business owners in lieu of the standard “how are you.” Few really care about or even listen to your response because they know it is just meaningless chitchat. But do you really know how your business is performing? That means more than just sales growth or profitability trends. Have you ever done an in-depth analysis of your business? Here’s how you can. SWOT Analysis A common and long-standing tool is to list your strengths, weaknesses, opportunities, and threats (SWOT). It is a simple concept that makes lots of sense. Knowing your SWOT is important and useful information. Strengths and weaknesses measure internal performance and competence. Opportunities and threats assess the level of risk from external conditions. There are many articles about SWOT, but because this type of analysis is so broad and each business is so unique, it is difficult to describe how to apply it to any specific situation. One simple SWOT method is to divide a sheet of paper into four sections. Draw a vertical line down the center and a horizontal line across the middle of the page. Use the top left section to list your strengths, bottom left for weaknesses, top right for opportunities, and bottom right for threats. Then prioritize the items within each section by importance. Whether you should focus on fixing the negative things or developing the positive ones is a ‘glass half empty or half full’ kind of debate that depends on your attitude and perspective. Either way a SWOT analysis really doesn’t provide much guidance. Many attempts at a SWOT analysis fall flat when the enormity of the task is realized. Where do you start? What factors should be considered? Where should you focus? SWOT analysis is a great tool, but users need some guidance and structure to make it work. fessionals. The Five Forces method is basically a refinement of the external part of a SWOT analysis. So it makes sense to combine these tools to create a hybrid method. Factors to Consider For any analysis to be worthwhile, it must consider all aspects of the business. There are many factors that are common to virtually every type of business. To insure that no significant factor is overlooked, the analysis must be structured. Internally, five business sectors should be analyzed: 1) management, 2) workforce, 3) sales and marketing, 4) operations, and 5) financial. Externally, each of the five forces needs to be evaluated. Since every business is unique, the specific factors within each sector must be tailored specifically for the business being analyzed. Have you ever done an in-depth analysis of your business? Here’s how you can. Five Forces Analysis In his books “Competitive Strategy” and “Competitive Advantage”, Michael Porter introduced the five forces of competition. They are the: 1) bargaining power of customers, 2) bargaining power of suppliers, 3) threat of new entrants, 4) threat of rivalry from existing competitors, and 5) threat of substitution. The five forces provide a framework that makes external risks easier to grasp and evaluate. Combining SWOT and Five Forces Both SWOT and Five Forces are analytical tools that are widely used by consultants, researchers and other pro- Rating the Factors After the specific factors are established, the business must be rated by each factor. Each item should be rated in two ways: 1) the importance of the factor to the business, and 2) the business’s competence (internal) or risk level (external). Rate the importance using an alphabetical scale from A to E, with A indicating very important and E not important. Rate the competence or risk level using a numerical scale from 1 to 5, with 1 being very proficient or not vulnerable and 5 being deficient or very vulnerable. January/February 2013 • Keystone Builder | 29 Categorizing the Results Using the dual rating system the results can be categorized by priority. Important, but deficient or very vulnerable (A5) factors may be life threatening. Important, and proficient or not vulnerable (A1) factors are core strengths. The results between the extremes are classified into: critical flaws, moderate weaknesses, potential weaknesses, neutral, potential strengths, and secondary strengths. cially for owners whose expertise and time lies in running the day-to-day operations. The hybrid method, described above, provides a framework that breaks the task into manageable pieces, and automatically prioritizes the results. N O R Analyzing your business will show you how and where to improve its performance. Then when someone asks you,”how is business”, you will have something worthwhile to say, even if they aren’t listening. David Coffman, Business Valuations & Strategies PC, 717.234.7060 A N D E X Plan of Action Each category helps determine what needs to be done and when. Life threatening factors must be addressed immediately. Critical flaws come next. Moderate weaknesses aren’t killers but correcting them can greatly improve performance. Potential and Analyzing your business will show you how and where to improve its performance. secondary strengths should be evaluated to determine if it they are worth developing. Core strengths are what the business does best. Too many core strengths indicate that either business resources are being spread too thin or the analysis wasn’t objective. Relying too heavily on one core strength can turn into a big weakness if the business environment changes in ways that make the strength much less important or even irrelevant. From groundbreaking to breathtaking. Visit one of these locations : 749 Roble Road, Suite 2 allentown, Pa 18109 (610) 266-8640 (800) 950-9558 Fax (610) 266-8697 5247 d SimPSon FeRRy Road mechanicSbuRg, Pa 17050 (717) 697-9209 (800) 252-4201 Fax (717) 697-9501 Conclusion Analyzing the performance of a business is a tough task to tackle, espe- 30 | Keystone Builder • January/February 2013 Your Norandex distribution center is fully stocked with quality building products for the outside of a home. But there’s something else inside that builders fully appreciate. It’s the knowledge, experience and caring attitude Norandex employees bring to the job every day to help area builders better do their job. For siding, roofing, windows, doors and more, builders turn to Norandex for breathtaking results. 1090 highway 315 wilkeS-baRRe, Pa 18702 (570) 824-9879 (800) 955-9339 Fax (570) 824-9848 www.norandex.com Architectural, Commercial & Aerial Photography Project by RF Hager Construction Photo by Dimitri Ganas Exteriors& Interiors Project by Carlson Construction, Inc. Photo by Dimitri Ganas Project by Garman Builders – Cabinetry provided by Swartz Kitchens & Baths Photo by Dimitri Ganas Call, and i will be happy to meet with you and discuss how professional photography can help you. 717.334.2490 Fax: 717.334.6628 Email: [email protected] January/February 2013 • Keystone Builder | 31 Project by RF Hager Construction – Cabinetry provided by Swartz Kitchens & Baths Photo by Dimitri Ganas YOUR AD SHOULD BE ON THIS PAGE IN OUR NEXT ISSUE – SPRING 2013 This publication is mailed to over 6,000 Members of PBA – covering the entire state of Pennsylvania This magazine is on our web page www.buildersandassociates.com in its entirety There is a link from our web site to your website Call us at 717-334-2490 to make this happen for you or e-mail [email protected]