Winter 2009/2010
INSIDE
Events 2
Message 3
Message 4
Board Members 5
Sponsor 6
Education 7
New Members 8
Advertisement 9
Marketing Strategy 10
Legal Issues 11
MN Coty Winners 12
Ad Rates 13
Sponsor 14
Firm Night 15
NARI MN 16
Events
Future Events & Required Lead Training -
Meetings What You Need to Know
• December Firm Night
On April 22, 2008 the EPA rule 40 CFR Part 745, Part II, Lead; Renovation, Repair, and
Tuesday, December 8th, 5:30 - 8:30 pm
Painting; Lead Hazard Information Pamphlet; Notice of Availability; Final Rule was
Synergy Products, 7003 W Lake St., St Louis Park
published in the Federal Register. This rule applies to paid contractors working in
Join us for dinner, drinks, networking, live music,
pre-1978 housing, child care facilities and schools with lead based paint. Contractors
a sommelier, & a Christmas tree auction benefitting include home improvement contractors, maintenance workers in multi family housing,
Toys for Tots. RSVP by noon, December 3rd to painters, and other specialty trades.
Kristine at 612-332-6274 or info@narimn.org.
$10 per member. See page 15 for more details. The rule requires that renovators are trained in the use of lead safe work practices,
that renovators and firms be certified, that providers of renovation training be
• Certified Renovator: Lead Safety for Renovation, accredited, and that renovators follow specific work practice standards.
Repair, and Painting
Lead training will take place at International What does this mean to you?
Market Square from 8-5 pm on the following dates: A certified individual needs to be present during initial setup and final clean up, and be
December 15th , January 18th, January 28th, February available to return to the work site within two hours for any lead based paint or lead
23rd, March 11th, & March 26th. Call Kristine at hazard reduction activity. The covered facilities include residential, public or commercial
612-332-6274 to register. First come, first served. buildings where children under age six are present on a regular basis as well as all rental
Don’t wait because classes may fill up fast. See this housing. The rule applies to renovation, repair or painting activities. It does not apply to
page for more details. minor maintenance or repair activities affecting less than six square feet of lead-based
paint in a room or less than 20 square feet of lead-based paint on the exterior. Window
• Member Orientation Breakfast replacement is not minor maintenance or repair.
Friday, January 8th, 8:30 - 10:15 am
International Market Square, Conference Room B. The rule also requires that contractors performing renovation, repair and painting projects
Sponsored by The Remodeler’s Choice that disturb lead-based paint provide to owners and occupants of child care facilities and
See page 16 for more details. to parents and guardians of children under age six that attend child care facilities built
prior to 1978 the lead hazard information pamphlet Renovate Right: Important Lead
• January Monthly Meeting Hazard Information for Families, Child Care Providers, and Schools.
Tuesday, January 12th, 5:30 - 8:30 pm
Suite 185, International Market Square, Minneapolis Non-compliance can expose you to significant monetary penalties. Violaters can face
Join us for networking, dinner, drinks, an informative penalties up to $32,500. For more information about these rules go to:
presentation & the $750 Pot of Gold drawing. http://www.epa.gov/lead/pubs/rrpfactsheet2008.htm
RSVP to Kristine at 612-332-6274.
To help our membership meet the certification requirements for individuals, we are
• February Monthly Meeting offering six training courses. Only one course is needed. If your company plans to work
Tuesday, February 9th, 5:30 - 8:30 pm on pre-1978 housing, at least one individual from your company must take a course to
Suite 185, International Market Square, Minneapolis become certified.
Join us for dinner, drinks, a dynamic presentation &
the Pot of Gold drawing. RSVP to Kristine at 612- Class sizes are limited to 24 participants and reservations are taken on a first come,
332-6274. Sponsored by Shaw/Stewart Lumber Co. first served basis. Do not wait until the last minute to sign up for a class because space
may not be available.
• Courses are approved for 8 contractor continuing education credits
NARI of Minnesota • Class runs from 8:00 am - 5:00 pm with a break for lunch (lunch is NOT included)
International Market Square • Class is held at International Market Square, Suite 436 in Minneapolis
275 Market Street, Suite 565 • Tuition is discounted to $190/person for NARI members and $230/person for non
Minneapolis, MN 55405 members
Hours: 8 am - 4 pm M-F
P: (612) 332-6274 F: (612) 332-7854 The following dates are available: December 15th, January 18th, January 28th, February
E: info@narimn.org. www.narimn.org 23rd, March 11th, and March 26th.
Executive Director: Sandra Meyer
Association Administrator: Kristine Cassidy Hieb Call Association Administrator Kristine Hieb at 612-332-6274 or info@narimn.org to
Member Specialist: Josh Dye register for a course. See page 7 for additional information.
Message
President’s Column
Peer Networks are Priceless
Over the course of the last few months my ears have perked up at a very By getting more involved you will be better positioned to leverage your
similar conversation: that all our businesses have dramatically changed. peer network with one goal in mind – by looking outward, you just may
These changes significant, some people are even calling this a “Paradigm get that new idea that takes your business to the next level. Interested in
Shift.” I will leave those judgments to the experts. what opportunities exist? Read on in this newsletter and watch for our
E-Newsletter arriving in your email inbox every other Tuesday.
All of the changes people are discussing have one thing in common:
they are primarily related to the external environment. If the challenges We are a very strong NARI chapter – managed by a very talented staff.
are primarily external, the difference between plodding along in 2010 Sandra Meyer, our Executive Director, and the team she has assembled
and sustained success in 2010 and beyond is our individual response of Josh Dye our Member Specialist and Kristine Hieb our Association
to these challenges. I will resist the cliché “turn these challenges into Administrator, are key parts to our ongoing success. We thank them for
opportunities” although that is also a good approach. I will propose a their contributions in 2010 and beyond!
different strategy: look into the experts within our association as your
peer consultants. You made a great decision when you joined NARI of MN. Now is time
to leverage those membership resources and get the most you can from
New competitors are coming into the remodeling market. Pricing Article your NARI membership.
challenges have been brought on by competitors who are willing to
sacrifice sustainable profit to win projects. Homeowners are I humbly thank you for placing the trust of the association in the
making buying decisions based more on price and less on value. There leadership of the Board of Directors and I look forward to a great year of
are troubles all around securing project financing and appraisals to service to the membership of NARI of Minnesota; home of the greatest
support lending decisions. Project pipelines are drying up with more remodeling peer network in the United States!
“tire kicking,” less quality leads and smaller project values. The list of
challenges could certainly continue. In times of external challenges, My best,
where do we look to find examples of businesses responding robustly to
the new market opportunities?
Look right here to your peer network at NARI of Minnesota.
Charlie Bradburn
The people that make up our membership are great resources to help you ABC Millwork
navigate challenges and prepare your business for the future. In light of
these challenges, our membership is responding and creating opportunity
for themselves and their companies.
NARI MN Mission
Some remodelers are moving to “phase based remodeling” where To develop and sustain programs to expand and unit the industry and
smaller project phases make financing and appraisals lesser issues. Some ensure its continued growth and security.
remodelers have positioned their companies to take advantage of the
government stimulus funds for renewable energy projects. To succeed,
they needed to become experts in being a homeowner resource for both
energy efficiency and tax credits. Many manufacturers and suppliers NARI MN Vision
have changed their product offerings. Success required them to have an To be the primary remodeling resource for homowners and professional
authentic understanding of the customer’s needs more deeply than they members alike providing information, education, and mentorship to the
ever did before. There are examples all around of our member community at large.
companies leading the way to new opportunity. How did these members
successfully make these changes? Just ask! They’ll be there at our next
meeting (free peer consulting!).
NARI MN Strategic Plan
Here is my challenge to you: step up your commitment to NARI. Make NARI MN has a strategic plan that guides the activities and services of
the decision to get more active and go deeper. Make up your mind to get the association. You can view the 2009 -2011 strategic plan in the Secure
more involved today. Join a committee or two and participate in a Member’s area of the NARI MN website: www.narimn.org/login.asp.
roundtable. Find a way to get more involved!
3
Message
Executive Director’s Column
Buyer Beware
When I saw the crumpled, open box of Tesco cornflakes sitting on the We aim to be straightforward with our constituents. We want it to be
large pine table at 3:30 in the afternoon, I knew something was going to evident we are best at creating a sense of community. That has much to
be different. A variety of mismatched spoons was scattered on the do with what you provide. When all of our participants apply themselves
counter. There was no breakfast with this bed. in this community, you are able to learn from one another to improve
your livelihoods. Our industry has been called fractured—but our group
“As you can see, we’re casual here,” stated Rosa, the owner. Her exists to pull you together, to give you the forum to share best practices
English accent was thick. She flipped her black hair over her shoulder and develop business relationships.
and grabbed a potato to peel. Last week’s dishtowel hung at her hip. “We
provide our guests with the ability to create the experience they deem for It is in our best interests for our body to be as inclusive as possible.
themselves. There’s the door to the garden.” Beyond creating a community of peer support and knowledge, we offer
our members opportunities for formal education, publicity, consumer
Her eyes averted. I gave her a small smile. It really wasn’t worth it. We awareness, and professional development. We help promote the message
both knew she had a flair for exaggeration. “Did you anticipate of the value in working with professional remodeling companies. When
something different from the photos on the Internet?” she continued. consumers contact the office, they understand that members belong to
“Well,” I started, and took a step to the side, hearing the crunch of British NARI for fortification and to learn from the professional experience of
cornflakes under foot, “were the shots taken from this location?” others.
My bathroom at home measures larger than the room that would cost me Know that everything we do within NARI is designed to directly benefit
a small fortune for the next seven nights. and provide value to our members. Our association activities exist only
because members have determined and expressed a need for the offering.
What could I say? I had agreed to a bed & breakfast through an online Our members are designed to be the beneficiaries from services provided.
exchange after viewing deceptive photos. It was spring in northwestern Every benefit we offer is intended to satisfy a desire our members have
London and a friend was expecting me across town, so what did it really indicated is important.
matter? I stretched my back and leaned outside, looking into the garden.
Pushy vines grew up the side of the Tudor. A galvanized steel chair stood Please take full advantage of those benefits and services. Join us at our
lonely and unused. next affair, whether that’s wearing jeans or cufflinks—we’ll tell you in
advance what to expect. Stand up, drink the champagne and cheer. Life
The owner was a struggling artist with an abrasive edge that scared me. holds too much potential to dwell on the imperfect aspects. And with that
Her husband was happily distant from the business. It was unclear how in mind, breakfast holds too many options to be content with stale British
he contributed to the family’s financial picture. Their reticent teenage son cornflakes.
slept with a picture of David Bowie. I was up for the adventure. And I’ve
got a weak spot for homemade marmalade. Warm regards,
It should be noted that some of us are particularly sensitive to
expectations. When an item is billed as something, we anticipate it will
be just that. While the bed I had been picturing and the breakfast Sandra Meyer
ruminating in my head were significantly different than that I was
experiencing, I was willing to let it go in this case because I was on
holiday. Firm Night Proposals Due
There’s a parallel with expectations that exists with your membership. We The year to make your company known to the NARI MN
represent our organization to our members, our prospects, and the public community is 2010. Make a big splash by hosting a Firm Night. You will
with careful and clear intent. Just as it is in your individual get over 200 members to your showroom, impress your current and
businesses, your brand and image need to be positive, yet accurate. It prospective clients, and affiliate with NARI MN at a premier
would not benefit us in the long term to pretend we’re something that membership event. Proposals are now due. Contact the office at 612-332-
we’re not. Further, it doesn’t serve us to be compared to any other 6274 for more information.
association because we have a culture and a history all our own. And the
same is true for every other organization.
4
Board
Members
2010 Board of New Board Members for 2010
Directors
Michelle byers
Outreach Director
Charlie Bradburn, CR, President Michelle is the co-owner of Structural Dimensions, Inc. She has worked within the
ABC Millwork design and construction industry since 1989. She earned a B.S. in Interior Design from
952-937-9060 charlie_bradburn@abc-millwork.com the University of MN. Michelle loves working for herself and has done so since her dad
put her on the lawn tractor when she was nine years old. She is married to Mike and they
Charlie Kundinger, CR, President Elect have two kids. In her spare time you will find Michelle on the volleyball court.
Kundinger Remodeling
651-283-0017 charlieandmolly@msn.com
Rick Lyrek, Industry Liaison
Anna Cook
Treasurer
Closets for Life
Anna began working with her father, Len Przybylski, in TriLite Stone Company after
952-484-0416 rlyrek@closetsforlife.com
earning her Bachelor’s degree in Business Management in 2002. Since that time she has
worked in several capacities ranging from the administrative side to quality control, as
Stacey Carol Quinn, Chairman of the Board
well as customer service and sales. Anna lives with her husband Jake in Golden Valley
1st Trust Mortgage
and can often be found playing hockey at various rinks or blading at Lake Calhoun.
952-837-1111 squinn@1sttrustmortgage.com
Anna Cook, Treasurer
TriLite Stone Company
Dave Klun
Education Director
320-543-2254 annap@trilitestone.com
Dave is a carpenter by trade and attended St. Paul Vo-Tech to start his career nearly 30
years ago. He has been actively involved in NARI for the past 15 years. Dave is
Greg Livermont, Secretary
currently the V.P. of Marketing and Sales for The Remodelers Choice / A Fullerton
Andersen Windows
Company which is located in the heart of Uptown, Minneapolis. Dave & his wife Linda
651-341-1566 greg.livermont@andersencorp.com
enjoy traveling together and spending time with their two adult children Jessica & Andy.
Monique Janu, Internal Director
MJ’s Contract Appliance, Inc.
651-777-8915 monique@mjsappliance.com Charlie Kundinger
President Elect
Michelle Byers, Outreach Director Charlie has operated Kundinger Remodeling since April of 1985 and has been a member
Structural Dimensions, Inc. of NARI MN since 1991. Charlie has three children and lives with his wife Molly in
952-224-0111 michelle@sdimn.com Forest Lake. On the weekends you can find him demonstrating his performing arts skills
on a local theatre stage.
Dave Klun, Education Director
The Remodeler’s Choice/A Fullerton Company
612-767-7016 dave.klun@theremodelerschoice.com Rick Lyrek
Industry Liaison
Pete Rieke, Networking Director Rick started Closets For Life in 2005. Closets For Life is a family owned business that
Solid, LLC has three generations contributing to its growth. He works at his brother’s cabinet shop
612-715-1341 prieke@gottabesolid.com to manufacture his products. He uses his two sons, his father and father-in-law to help
with the installations. Rick has two college aged sons and a daugther graduating from
Bjorn Freudenthal, CAPS, National Representative high school in the spring. He is married to Shari and enjoys golfing and running. He ran
College City Remodeling, Inc. his first Twin Cities marathon in October.
952-469-6900 bjornf@collegecityremodeling.com
Greg Livermont
Secretary
Greg has worked in sales for Andersen Windows for the past 4 ½ years. Prior to that,
Greg spent 9 years with James Hardie Building Products. He has an engineering degree
from the University of Minnesota and is currently pursuing his MBA at the University of
St. Thomas. Greg lives in Shoreview with his wife Jennifer and their two rambunctious
children. He is very excited to serve NARI’s wonderful membership.
Sponsor
southwest
Published four times a year, the Southwest Journal’s Home Improvement
issues are an excellent resource for the latest in home design trends.
The guides cover a broad range of issues relevant to area home owners,
including tips on improving energy efficiency, advice on landscaping,
home improvement focus great ideas for room renovations and much more.
If you’re interested in advertising in the Southwest Home Improvement Focus,
please contact Kyle Dahlen at 612-436-4387 or kdahlen@mnpubs.com.
NARI MN wishes to thank Southwest Journal for being a Platinum Level sponsor in 2009
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6
Education
Invest in Sign Up for
Certification Lead Training
Would you like to gain an edge over your competitors the next time you EPA lead rule enforcement begins on April 22nd, 2010. Make sure you
are bidding on a job? How do you distinguish yourself as better than the are prepared so that your company doesn’t miss a beat or incur costly
rest? How do you gain additional knowledge to help you grow your fines. If you work on pre-1978 housing, your firm and at least one
business? Earn a certification. individual from your company must be certified. For more information
on the new requirements go to: http://www.epa.gov/lead/pubs/rrpfact
This January you have an opportunity to join the elite group that has sheet2008.htm
invested in themselves and earned the Certified Remodeler (CR)
certification. Study sessions start on Wednesday, January 20th and run NARI MN is providing the lead certification training your individuals
each Wednesday from 7-9 am at International Market Square in need. The following are pertinent details.
Minneapolis. The cost of the program is $799. Applications are due
Wednesday, December 30th. To apply go to the Member Resources • Courses are approved for 8 contractor continuing education credits
section of the NARI MN website and download the application, or call • Class runs from 8:00 am - 5:00 pm with a break for lunch
the NARI MN office at 612-332-6274 for more information. • Class is held at International Market Square, Suite 436 in Minneapolis
• Tuition is discounted to $190/person for NARI members and
Certifications in 2009 are generously sponsored by Ferguson and $230/person for non-members
Marvin Windows and Doors.
The following dates are available: December 15th, January 18th, January
28th, February 23rd, March 11th, and March 26th. Class sizes are capped
at 24, so don’t wait to register. Reserve your place today. Call
Kristine at 612-332-6274 or info@narimn.org to register for a course.
See page 2 for additional information on the lead rule.
Why Knot? Unique Customers. Individual Service.
Brushed & Hand Trowled Finishes
Design Consultants
Color Coordination
Pre-finishing
12955 Hwy 55, Plymouth, MN 55441
BrushMasters.com P 763.478.3232
7
New
Members
New NARI MN Members
Please welcome these companies to our membership.
Custom One Painting Otto & Sons Construction J.P. Michels Sherwin Williams
Contact: Larry Engelmeier Contact: Christopher Otto Construction Company Contact: Andy Dombrovski
Contractor Member Contractor Member Contact: Jeff Michels Associate Member
2543 Marshall St NE 9733 Woodcrest Court Contractor Member 612 Cherry Circle N.
Minneapolis, MN 55418 Monticello, MN 55362 21 Century Ave S Hudson, WI 54016
612-787-1040 612-834-6886 Maplewood, MN 55119 612-963-8521
customonepainting.com ottoandsonsconstruction.com 651-325-1030 sherwinwilliams.com
jpmichels.com
Wolfpac Technologies DB Raskob LLC Prudential Financial
Contact: Chris Hedlund Contact: David Raskob Stonebridge Kitchens Contact: David Burck
Associate Member Contractor Member Contact: Linda LaFrenier Associate Member
6343 169th Ln NW 2864 Ardmore Ave Contractor Member 600 S Highway 169 Ste 1000
Ramsey, MN 55303 Medina, MN 55359 2148 124th Ave NW St Louis Park, MN 55426
763-229-7961 763-479-1393 Coon Rapids, MN 55448 952-544-9533
versatex.com 763-245-0193 prudential.com/us
Ernest Construction stonebridgekitchens.com
Les Jones Roofing Contact: Ernest Nelson Sponsor: Jamie Julkowski Urban Rebuilders
Contact: Brenda Beam Contractor Member Contact: Sheff Otis
Contractor Member 7471 Lamar Ave S. PetroGlyphs Contractor Member
941 W. 80th St Cottage Grove, MN 55016 Contact: John Welsch 2637 27th Ave S. Box 7
Bloomington, MN 55420 651-769-9131 Contractor Member Minneapolis, MN 55406
952-881-2241 ernestconstruction.com 115 8th Ave NE 612-259-7752
lesjonesroofing.com Forest Lake, MN 55025 urban-rebuilders.com
Cleaning by 651-472-4665
UMR Geothermal Custom Care petroglyphsart.com
Contact: Sara Pippel Associates Sponsor: Innovative Concrete
Contractor Member Contact: Lori Anderson
5115 Industrial St. Contractor Member Eischen Cabinet Company
Maple Plain, MN 55359 431 Portland Ave Contact: Paul or Jaci Eischen
763-479-6325 St. Paul, MN 55102 Associate Member
umrgeothermal.com 612-747-5502 525 Commerce Drive
customcareassociates.com Hastings, MN 55033
Central Vac Solutions 651-480-3124
Contact: John Vandermyde Hedberg Landscape & eischencabinets.com
Associate Member Masonry Supplies Sponsor: McDonald Remodeling
7776 Alden Way NE Contact: Alan Oppegaard
Fridley, MN 55432 Associate Member
612-293-7580 1205 Nathan Ln N
centralvacsolutions.com Plymouth, MN 55441 NARI National Consumer
763-225-0596
Solid LLC
Contact: Pete Rieke
hedbergrocks.com Marketing Campaign
Contractor Member
PO Box 583
Kruger Financial Services Have you seen NARI National’s latest consumer marketing campaign?
Contact: Kevin Kruger You can view the videos on the NARI MN website. Go to
Shakopee, MN 55379
Associate Member www.narimn.org and click on “Current Advertising.” Scroll to the bottom
612-715-1341
5270 84th St. Ste 250 of the page and click on the image under “NARI Promo Video.”
Bloomington, MN 55437
Petruska Construction 952-820-8206
Contact:Frank Petruska Members can also post a link to these videos on their own websites. The
krugerfinancialservices.com
Contractor Member campaign explains to consumers that value of working with a NARI
Sponsor: Pattie Martin
624 10th Ave S. member on their next remodeling project.
Hopkins, MN 55343
952-934-3557
8
Advertisement
9
New
Marketing
Members
Strategy
Nothing Left to Cut-Now What?
By: Kristin Kowler of Bungalo Group
Your pencil can’t get any sharper. You’ve done everything you can think If you are cutting your marketing budget to fatten up the bottom line,
of to minimize overhead and shrink job costs. With nothing left to cut, proceed with caution. Starving your marketing efforts now may lead to
you can wait for things to get better, or you can focus on beefing up the anemic sales down the road and leave you staring at the competition’s tail
top line and improving your competitive position. Here’s some of what lights when the market improves. In addition to industry benchmarks and
leaders can do to improve the revenue side of the equation in 2010. keeping a close eye on the competition, calculating the expected ROI
for your marketing plan is one way to determine your marketing budget.
Strategy first, then goals. It’s easy to say, “Our goal is to increase Another option: estimate the LCV (Lifetime Customer Value). Then ask,
revenue by 20%.” But arbitrary goals are for amateurs -- ambitious, but what’s a reasonable amount to spend in order to acquire a new customer?
not meaningful. Before you start “brainstorming” goals at your next staff
meeting, ask yourself: what business are we in, who is our customer, Focus on the important stuff – revenue and strategy
what do they care about, and what is our strategy for delivering value to Be careful not to shift time and resources away from activities that bring
customers? in revenue and create customers. Although you may be tempted to handle
routine paperwork yourself, better to pay someone to handle the tasky-
Your goals should be directly tied to a business strategy. For example, if stuff, while you develop a strategic plan and focus the organization on
your strategy is to deliver a “combination of quality, price, and ease of improving the top and bottom line.
purchase that no one else can match” (Treacy & Wiersema) then your
goals will be all about minimizing costs, reducing hassle, faster
transactions, less waste, and improving efficiency. Focusing on these
goals will enable you to attract more of the customers – and more of the
revenue – you want.
Typical goals involve profitability, response times, warranty claims, •
Stephen Donnelly Company, Inc.
production time, errors, closing rates, market share, return on investment, •
takes pride in maintaining the
customer loyalty, retention, revenue size, innovation, and diversification. • most extensively trained work-
Set goals. But make sure they are part of a larger strategic plan. • force in the industry. Whether
• applying new stucco, re-stucco,
Never, ever waste an opportunity – or a relationship. The devil is in • plaster, or cultured stone veneer,
• our craftsman reflect the quality
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•
plumber, builder, retailer, window manufacturer, flooring distributor, or •
been a trademark of our company
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customers before, during, and after they buy. Customers who buy right www.stuccoman.com *CALL FOR A FREE ESTIMATE*
away, and then remember to call you the next time, are about as common MN License #7337
as a black polar bear. So if you don’t have a system in place for
managing customer relationships as they move through the marketing and
sales pipeline, you are losing revenue. Guaranteed.
Be realistic about your marketing budget. If you want your car to go,
you have to fill the tank. If you want your marketing to produce
opportunities, and referrals, you’ll need to invest in attracting, winning,
and retaining customers. In times like these, retention is especially
important; it’s much more cost-effective to keep a customer than it is to
get a new one!
10
New
Legal
Members
Issues
Review Your Contracts
By: Chris Jones of Hellmuth & Johnson, PLLC
Winter is on its way and with it often comes some downtime in the • Estimated time of completion. Many construction contract disputes
construction industry. The busy season of the warmer months is arise because of a misunderstanding as to expectations of when a project
winding down and many contractors “switch gears” for different projects will be completed. Every attempt should be made in the body of the
in the winter months. When deciding how to use the relative quiet time of contract to set a reasonable estimated date of completion on the project.
the winter months, contractors should always include a thorough review This date should be set according to the contractor’s best judgment to
of business practices geared towards improving efficiency, productivity the extent possible, as the contractor is in the best position to determine
and performance especially in this difficult economy. Ensuring that you how long the project should take to complete. Within that provision,
are running your business with as much protection and efficiency as obviously, exceptions should be set forth – including but not limited to
possible will lead to better bottom line results at the end of the day, i.e., weather delays, change orders, labor availability, materials problems or
more revenue, more leads, more work. other circumstances outside of the contractor’s control. If it looks like a
delay in completion will occur, the change in the completion date should
While it should come as no surprise that having a written contract in be documented and agreed to in some form.
place before undertaking any work on a project can avoid many problems
down the road, many contractors do not pay enough attention to annual • Scope of work. Disputes also arise from differing expectations as to
contract reviews and updates – winter is the perfect time to do this. As what the contractor has actually been hired to do. The type, form and
such, many contractors are forced to hire legal counsel to help resolve amount of work should be listed in the contract to avoid any dispute
problems, rather than remembering that much of an attorney’s worth is in arising from whether a contractor completed all of the necessary work for
helping to avoid problems in the first place. Preventing problems up front final payment. If appropriate, the scope should indicate the materials to be
can have a significant financial impact on a business by avoiding costly used and specifications as to construction. The greater clarity
disputes and letting you spend more time on what you do best – working regarding what is to be constructed – and how – can decrease the
for your customers. potential for a later dispute. If the project will allow it, separate, detailed
specifications may be made a part of the written contract, whether by
Spelling out the terms of an agreement in writing before any work is exhibit or incorporation into the actual contract. If blueprints or other
commenced provides the contractor and customer (or subcontractor) with plans exist, those should definitely be incorporated into the contract or
clear expectations and sets the tone for the entire business relationship. referred to as an exhibit.
The more issues that can be addressed in advance the better, but even
some very basic language touching on standard contract principles may • Change orders. Nearly every project will encounter a time where
be enough to avoid future conflict with a customer or colleague. changes, additions, or deletions are made to the previously agreed upon
work. Having a system in place within the contract to account for change
Regardless of the complexity of the contract, there are a few key areas is imperative. If additional work is requested, or original work plans are
that should be addressed in any form of written contract: altered or revised, the changes should be documented by specific, written
change orders. Granted, it can be both cumbersome and time-consuming
• Pre-lien notice. One of the most important reasons to have a written to document each and every change over the course of a project, but
contract is to preserve mechanic’s lien rights. Every contract should having a specific change order system in place to keep an accurate record
include the statutorily required language set forth in Minnesota Statutes is the best method to avoid significant problems later.
Section 514.011 in order to ensure that a contractor has the right to pursue
a mechanic’s lien should the need arise. The language cited in that statute • Arbitration vs. Litigation. Many contractors choose to include
must be accurately stated in the contract, and in a very specific format. provisions in their contracts requiring that any dispute be handled through
Failure to properly provide that exact language eliminates any right that arbitration. Others do not specify such a requirement. The pros and cons
a contractor would otherwise have to claim a mechanic’s lien for work of specifying a specific alternative dispute resolution procedure such as
provided. Thus, including that language in a contract is paramount and arbitration should be discussed and contemplated with counsel. Choosing
the form must comply exactly with the statute. Losing your lien rights such a provision in a contract can be a legal strategy or just a matter of
puts you at a significant disadvantage if the project ultimately turns bad. personal preference – but the implications are important and this decision
should not be made without consulting an attorney.
• Payment terms. As most disputes that arise during or after a job relate
to the amount or timing of payments, a payment timeline should be • Statutory Warranties. For residential projects, new construction
included in a contract. Payment dates are often based upon specific dates or significant residential remodeling work will normally fall under the
or completion of a certain portion of the work. Payment amounts and statutory warranties provided by Minnesota law. In such cases, mention
timelines for payment should be clearly specified in every contract. must be made in the contract of the statutory warranties required under
continued on pg. 13
11
MN COTY
Winners
The 13th Annual NARI MN COTY Awards
Residential Kitchen $60,000 and Under Residential Addition $200,000 and Under
Winner: Otogawa-Anschel Design-Build Winner: Gonyea Homes & Remodeling
Honorable Mention: James Barton Design-Build Honorable Mention: Northrup Remodeling
Residential Kitchen $60,001-$75,000 Residential Addition Over $200,000
Winner: Otogawa-Anschel Design-Build Winner: TreHus Architects + Interior Designers + Builders
Honorable Mention: Ispiri Design Build Remodel Honorable Mention: Stonehouse Designs
Residential Kitchen $75,001-$90,000 Residential Historical Renovation/Restoration
Winner: Structural Dimensions, Inc. Winner: Open Air Concepts
Honorable Mention: DreamMaker Bath & Kitchen Honorable Mention: Stonehouse Designs
Residental Kitchen $90,001-$120,000 Residential Exterior
Winner: Edgework Builders Winner: Showcase Renovation
Honorable Mention: Wooden Dreams Honorable Mention: Woodside Homes
2009
Residential Kitchen Over $120,000 Residential Exterior Specialty
Winner: Plekkenpol Builders Winner: TreHus Architects + Interior Designers + Builders
Honorable Mention: Stonehouse Designs Honorable Mention: Awad + Koontz Architects Builders
Residential Bath $30,000 & Under Entire House $250,000 and Under
Winner: Gonyea Homes & Remodeling Winner: Otogawa-Anschel Design-Build
Honorable Mention: Home Restoration Services Honorable Mention: College City Remodeling
Residential Bath $30,001-$60,000 Entire House $250,001- $500,000
Winner: Sylvestre Construction Winner: Kuhl Design Build
Honorable Mention: Brinkman Russell Honorable Mention: Jones Design Build
Residential Bath Over $60,000 Entire House Over $500,000
Winner: White Crane Construction Winner: Knight Construction Design
Honorable Mention: Stonehouse Designs Honorable Mention: Briscoe Home Renovation
Residential Interior $150,000 and Under Best Newcomer
Winner: Architrave Design & Remodeling Winner: Posch Builders
Honorable Mention: Home Restoration Services
Sustainable Remodeling Award
Residential Interior Over $150,000 Winner: Otogawa-Anschel Design-Build
Winner: Posch Builders Honorable Mention: Open Air Concepts
Honorable Mention: CASE
Universal Design
Residential Interior Specialty Winner: College City Remodeling
Winner: mackmiller design+build Honorable Mention: mackmiller design+build
Honorable Mention: mackmiller design+build
Associate of the Year
Commercial Interior, Exterior or Specialty Winner: Granite Tops
Winner: Sass Construction Honorable Mention: The Remodeler’s Choice
The 2009 NARI MN COTY Best of Show
Awards are generously sponsored Winner: Open Air Concepts
by our Event Exclusive Sponsor:
12
Ad Rates
Increase Your Business
Advertise in the NARI MN Newsletter
If you are looking for an affordable way to build your business and As a quarterly newsletter, the publication has a longer shelf life. Also,
increase exposure among the NARI MN membership, advertising in the each non-member company that inquires about membership within the
quarterly newsletter is an excellent outlet for you to utilize. The NARI association receives a copy of the most recent newsletter. Copies are also
MN quarterly newsletter is delivered to over 400 member companies and distributed at meet and greet events, monthly meetings, and to visitors in
is posted and archived online in color at www.narimn.org. If the the NARI MN office.
remodeling industry is your target, the newsletter is your vehicle.
If you would like to place an advertisement in an upcoming newsletter,
The following are the current ad rates: contact Member Specialist Josh Dye at 612-332-6274 or
josh@narimn.org.
Full Page Quarter Page
$225 (1x) $80 (1x)
$720 (4x) $256 (4x)
If you want to increase the professional
Half Page Business Card image of the industry . . .
$150 (1x) $50 (1x)
$480 (4x) $160 (4x) Recruit new members by bringing them to
Meet & Greet Events.
Pricing is for camera ready artwork only.
Contracts continued from page 11
Minnesota Statutes Section 327A.01 et. seq. In fact, a new law enacted
in August 2009 requires all residential contractors to provide the written
warranty to customer – a copy of the statutory language can be attached
to the contract itself. Furthermore, if a contractor provides their own
separate warranty in addition to the legally required statutory
warranty, that warranty language should be included in the contract
as well. Oftentimes, this is done by way of an exhibit attached to the Stacey Carol Quinn We would like to Thank You for
contract reciting the terms and conditions of the contractor’s separate Cindy Luedke your referral business! We are here
warranty. Mortgage Professionals for you! We are a remodeler’s lender
2460 Highway 100 S. and look forward in working with
• Attorneys’ Fees. Any contract should include a provision that enables St. Louis Park, MN 55416 you and your clients in 2009!
a contractor to recover any attorneys fees spent in pursuing collection www.1sttrustmortgage.com
of an unpaid account or enforcing the contract. This type of provision O: 952-837-1111
provides significant protection to the contractor and can often be a
deterrent to a potentially nonpaying customer. If it is necessary to
undergo the collection process, the contractor can know that there is also
HOME IMPROVEMENT LOANS
the potential to recover the costs spent to collect those unpaid amounts, CONSTRUCTION LOANS
which otherwise may not be recoverable. REFINANCE YOUR HOME
These basic items form some of the most common provisions of any
PURCHASE A HOME
contract, but there are many other provisions that may be included in
a contract, as there are many different situations (projects) that require
different contract terms. Changes in applicable law, including recent law
regarding subcontractor payment requirements, also necessitate a review
of existing contracts to ensure they comply with current law, and every
contractor should make a habit of conducting an annual review of
contracts for this purpose.
13
Sponsor
We’re Serious About Customer Service
Bob Seagren • Bob Rohweder • Joni Slack • Pat Greig • Mike Anderson
When you work with Warners’ Stellian, you’re supported by a group of dedicated
professionals who are serious about selling, delivering and installing appliances.
Our thanks go to our fellow members who have chosen us as their Appliance Specialists
and we invite those who have not to do so today.
For Builder Sales Call (651) 726-1642
Edina W. 70th St. & France (612) 920-0640
St. Paul Snelling & Larpenteur (651) 645-3481
Apple Valley Cedar & 42 (952) 891-4700
Maple Grove Bass Lake Road (763) 551-0888
Woodbury 494 & Valley Creek Rd. (651) 714-9790
Mpls Outlet Nicollet & Diamond Lake Rd. (612) 825-6465
ww Rochester Across from the Apache Mall (507) 252-5552
w.Wa m
rnersStellian.co
NARI MN wishes to thank Warners’ Stellian for being a Platinum Level sponsor in 2009
14
Firm
Night
December Firm Night ‘Show Me the Logo’
A Holiday Celebration in 2010
Join us to close out the year in style at our final Firm Night of 2009. A As a National Association of the Remodeling Industry, MN Chapter
festive holiday celebration is planned where NARI MN members will member you have the priviledge and right to use the NARI logo on your
enjoy networking, live music, food, drinks, and a Christmas tree auction company materials. The NARI logo stands for professionalism, quality,
to benefit Toys for Tots. The energy at Firm Nights is electric and offers and a higher standard of ethics. Using the logo and explaining to others
a great atmosphere to develop new relationships or strengthen current what it means will help distinguish your company and increase consumer
ones. This is also an affordable way to reward your staff! awareness of the NARI brand. Use the logo on your website, business
cards, bid sheets, vehicles, and anywhere else that the public interacts
Synergy Products is the host of Firm Night and they are a drop off with your company. Then, show us where you use it and be recognized!
location for Toys for Tots. You are encouraged to bring a toy to donate.
Firm Night is only $10 for NARI members thanks to the generous In our 2010 quarterly newsletters we will spotlight member com-
sponsorship of Synergy Products. panies that use the NARI logo. When you use the logo mail, fax, or
email examples to Member Specialist Josh Dye at josh@narimn.
Date: Tuesday, December 8th org or 612-332-7854. Each quarter we will hold a drawing of the
Time: 5:30 - 8:30 pm companies that showed us the logo. The company name drawn will
Cost: $10/person be spotlighted in the next newsletter.
Location: Synergy Products, 7003 W. Lake St., St. Louis Park
RSVP By: Noon, Thursday December 3rd If you want to be spotlighted in the Spring Newsletter, send us evidence
RSVP To: Kristine at 612-332-6274 or info@narimn.org of where you use the logo by Friday, January 29th.
No shows and cancellations after the RSVP deadline will be charged.
CambriaUSA.com
The Beauty of Stone �����The Durability of Quartz
NARI MN wishes to thank Cambria for being a Bronze Level sponsor in 2009
15
NARI of Minnesota
International Market Square
275 Market Street, Suite 565
Minneapolis, MN 55405
P: (612) 332-6274
F: (612) 332-7854
info@narimn.org
www.narimn.org
Use the NARI MN
Win A ‘Pot of Gold’ at Brody Library
Our Monthly meetings Did you know that NARI MN has a library of resources that members
can borrow? The Brody lending library is a complimentary benefit of
NARI MN will continue to reward members for attending monthly your membership and is a great place to find information to improve
meetings at International Market Square in 2010. 2009 was an exciting your business. In the Brody Library you can find information on
year as Brush Masters won $250 in January, MJs Contract Appliance won business management, design, green, sales, marketing, estimating,
$500 in May, and Poehler Painting won $250 in August. carpentry, and many other topics.
The company names drawn at the September and October Monthly Enter 2010 with fresh knowledge by reading classics like Kotter’s
Meetings were not present, so we will kick off 2010 by drawing for Leading Change or Collin’s Good to Great. Looking for something
$750 at the January Monthly Meeting! All member company names more contractor focused? Borrow Smart Business for Contractors -
are entered into the drawing but you must be present to win. It is up to the A Guide to Money & the Law by Jim Kramon.
company to decide how the money gets distributed. Remember, you must
be present to win, so don’t miss out on your chance at $750 cash at the The Brody Library represents the power of association through access
January Monthly Meeting! to resources. Stop by the NARI MN office today and check out a book
or cd for up to three weeks. You are also welcome to donate gently used
resources to the library for the benefit of all members.
Member Orientation Interested in Joining
Breakfast NARI?
A membership with NARI MN has many benefits and opportunities for Next Meet & Greets: January 12th & February 9th, 5:30 pm. These
your company. Knowing what those opportunities are is the best way to events are typically held on the second Tuesday of most months.
get the most out of your membership. Join us for a relaxed continental
breakfast and learn about all that NARI MN has to offer. This program is This is a great opportunity to learn about NARI of Minnesota and to
great for both existing and new members. meet one-on-one with NARI members and the Board of Directors. Ask
your questions of someone who is sold on being a member! They can
Date: Friday, January 8th help you decide if joining NARI is the right move for you and your
Time: 8:30 Breakfast & Registration, 9:00 - 10:15 Orientation Program company, as well as how you can make the most of your membership.
Cost: Priceless After these brief sessions, you will be invited, as our guest, to join the
Location: International Market Square, Conference Room B rest of the members for dinner and the featured speaker. Advance
RSVP By: Wednesday, January 6th reservations are required.
RSVP To: Josh at 612-332-6274
Please call 612-332-6274 for reservations or for more information. The
Orientation is generously sponsored by NARI office is located in Suite 565 on the fifth level of International
The Remodeler’s Choice Market Square.