The Design Builder's Blog

Videos About The EPA RRP Rule; RRP Information For Renovators

Back in 2010 when the RRP Rule first went into effect I completed a series of seven videos about the EPA RRP rule. The RRP videos were done for Remodeling magazine. They are posted to the Remodeling TV area of Remodeling’s web site.

The series is titled “The Insider's Guide to the EPA's Renovation, Repair and Painting Rule”. It covers critical information about the Environmental Protection Agency's RRP rule and certification process, and explains how the rule can or will affect your contracting business.

Below is a list of the videos, with a brief description of what is discussed in each one as well as links to view them:

Video One: The EPA RRP Rule and Your Business

This video covers the business responsibilities, associated liabilities and risks related to the RRP Rule. Kermit Baker, Senior Research Fellow at Harvard University's Joint Center for Housing Studies stresses that remodelers need to become experts in this area or leave the work to others who are. Attorney Mike Sams of Kenney & Sams, P.C. warns about the legal liabilities for failure to follow the regulations. Shawn McCadden discusses the firm and worker certification process, related fees as well as certified renovator and firm responsibilities.

Video Two: RRP Training

This video covers the worker training requirements of the rule and the content of the EPA Certified Renovator training class. Shawn McCadden also discusses the importance and benefits of choosing a training class conducted by a training instructor with real life renovation experience.

Video Three: EPA RRP Notification Requirements

The EPA RRP rule specifies certain notification requirements depending on where the work is done and who occupies and or visits the building being renovated. This video covers these requirements, related firm documentation requirements as well as the information and documentation that must be given to property owners and others. Shawn McCadden also discusses many of the important details that must be included in the required documentation.

Video Four: RRP Work Practices

This video includes a summary of the required lead-safe work practices required under the RRP Rule. Shawn McCadden walks through critical considerations related to the rule that must be followed to stay in compliance with the rule, protect occupants and workers and to control costs. Shawn also discusses interior and exterior cleaning and cleaning verification requirements.

Video Five: RRP Record Keeping

Inspection of the required documentation under the rule will be a major enforcement tool used by EPA. In this video Shawn McCadden discusses the required documentation related to worksite activities as well as many business administration activities. Mark Paskell of the Contractor Coaching Partnership shares a few of the many methods EPA will have at their disposal to inspect and verify a firm’s compliance with the rule. Shawn adds several more methods to Mark’s list and also discusses the penalties and fines EPA can assess on violators.

Video Six: Exemptions to RRP Work Practices

In this video Shawn McCadden gives examples of when, where and why the RRP rule and work practices are not required under the rule. Shawn stresses that even if the work practices are not required under the RRP rule, your business will still be liable if lead poisoning and or contamination results from the way work is performed. Shawn and contractor insurance expert Tom Messier of Mason and Mason Insurance both stress the importance of verifying proper and adequate insurance coverage to protect your business, available coverage options as well as related costs for coverage.

Video Seven: Business Considerations and Summary

Shawn Mccadden stresses that this new rule is a game changer. Shawn tells us businesses must take this new rule seriously and adjust their business practices accordingly to protect profits and control liabilities. Mark Paskell of the Contractor Coaching Partnership stresses that contractors should verify that the documentation forms they use will comply with the rule and also assist the business in managing and performing the work. Gerry McGonagle of Belfor Property Restoration offers his advice on qualifying the right employees to do the work. Shawn also discusses some of the new responsibilities the rule brings with it for employees in all positions within the business.

Guest Blogger: This article was contributed by Carrie Van Brunt-Wiley, Editor of the HomeInsurance.com blog. Carrie has been writing insurance news and consumer information for HomeInsurance.com since 2008. She graduated from the University of North Carolina in Wilmington in 2005 with a B.A. in Professional Writing and Journalism.

Everything A Contractor Needs To Know About Certificates of Insurance

When hiring a contractor, many consumers are extremely cautious – especially those who have fallen victim to a shoddy repair job or other construction problems. That's why you should offer assurance that you’re a trustworthy, reputable contractor who won’t leave clients in a tough financial situation. How? Make it easy for potential clients to verify your responsibility for your work and your employees by providing a certificate of insurance with proof of valid coverage.

What is a Certificate of Insurance?

A certificate of insurance is the document issued by your insurance company that certifies you are covered by a valid insurance policy. Here are the most important features a customer will look for on your certificate:

• Your policy number and the named insured
• The effective date of the policy and the expiration date of the policy
• The types of insurance coverage purchased
• Dollar amounts of applicable liability

In broader terms, your Certificate of Insurance helps your customers understand what will and won’t be covered before you begin construction on their properties.

How do they work?

A Certificate of Insurance is easier for your client to acquire than it would be for them to see your actual insurance policy. It also provides the information they’ll need if they do need to file a claim without divulging any of your confidential information such as payroll and sales figures.

It’s important to note that your certificate is not a substitute for your policy itself. You are responsible for requesting the proper information on your certificate (see the bullets above).

Obtaining your Certificate of Insurance could also help you sell jobs if you’re able to produce a copy with your proposal. Customers are much more likely to choose a trustworthy contractor who offers information upfront as opposed to one who is unable or unwilling to provide valid credentials or who waits until the information is requested.

How do I get my Certificate of Insurance?

All you have to do to secure your Certificate of Insurance is contact your licensed insurance agent, make sure you are actually insured with a valid policy, check that you’ve got the coverage you need and request a certificate. You may even be able to view certificates online and print multiple copies as needed.

What does “additional insured” mean?

“Additional insured” is an option to add coverage for another party to your policy. For example, your client will likely request to be listed as an additional insured in order to defer liability for any accidents or injuries that occur on their property during your project. If you’re a contractor working with subcontractors on the same project, you may also add a named insured since you share joint liability to pay workers’ compensation if an employee is injured. However, the primary policyholder will remain fully responsible for covering the premium payments.

Remember, it’s best to be upfront and honest with your clients in order to document that you’re running a trustworthy contracting business. If you have any questions about your contractor insurance coverage or your Certificate of Insurance, contact your licensed agent and make sure you’ve got everything you need to prove to your clients that you’ll get the job done right.

Knowing you're prepared for a problem can give clients the assurance they need that there won't be any. Wear that assurance like a badge by providing your Certificate of Insurance upfront to potential clients. It could give you a big edge over your competitors.

Related Topics

Does Your Construction Liability Insurance Policy Have the Right ‘Coverage Trigger’?

Contractor Insurance Can Help Set You Apart from Competitors

Managing Risks With The Right Design/Build Insurance Options For Your Business

If You Don’t Or Won’t Offer Generation Y Prospects What They Want They Will Go Away

Generation Y is getting older, they’re buying homes and they are now starting to improve and remodel the homes they own.  As more and more of them grow older the number of Gen Y homeowners will quickly grow. Therefore, they will quickly become a major share of the potential prospects for remodelers and other contractors.  In an earlier blog about prequalifying and selling to Generation Y, I discussed the fact that members of Gen Y are used to getting information instantly and for free using key word Google searches to find internet content.   Technology and the internet have definitely defined how Generation Y does all their research and makes their remodeling or home improvement buying decisions. Having a contractor web site and what is put on it for information will make or break whether Gen Y prospects will be doing business with a remodeling contractor or not.

There are two ways to think about the title of this blog

First, if you don’t have a web site, or if your site doesn’t offer the information Gen Y is looking for, they won’t bother with your business if another remodeler’s business does.  Second, if your web site doesn’t explain how you do business as well as the kind of projects your willing to do, internet savvy gen Y remodeling prospects will move on. Remember, they’re probably not going to call you to find these things out. They’ll just go back to the Google search page and find another contractor’s site that does. So, if you want them to attract them and you want to motivate them to do business with your remodeling company you better make sure they find what they are looking for when they find your contractor web site.

“Knowledge is knowing a tomato is a fruit.

Wisdom is not using it in a fruit salad.”

What if you want them to go away?

Yes, you read that right. Not all Gen Y prospects will be right for a remodeler’s business. Their motivations to buy and what will be important to them may not be a match with what you offer, who you have on staff or how you do business. Working with the wrong customers can also compromise profits and might not be very satisfying for the business owner or employees. If you want to maintain a defined business process, and remain in control as you do business and produce your projects, you need to avoid working with customers who would probably be better off working with some other remodeling contractor.

To help Gen Y prospects prequalify themselves before they contact you (or for that matter prospects from any generation) make sure the content you put on your site has been strategically decided and written to serve this purpose. For example, if you charge for design services make that clear on your site. Or, if you won’t allow customers to provide any of their own materials make sure you discuss this fact on your web site. Conversely, to attract the right prospects, explain why you charge for design or won’t allow them to provide the materials.  Blogging is a great way to accomplish these goals.  Who knows, your logic might just discourage some prospects from wanting to provide their own materials or go with a contractor who offers free design!

Work towards getting them to stay

The point here is that if your web site visitors like your offerings and your logic you will attract them as prospects. If they don’t like your offerings and or your logic, they will go away and search for another remodeling contractor. Just be careful about how and what you write about. I’ll discuss that consideration in a future blog titled “Qualify, don’t disqualify your remodeling prospects”.

Related topics

Advice For Contractors When Working With Home Buyers Considering Renovations

Advice For Contractors On How To Work With Generation Y From One Of Them

25 Sample Questions Contractors Can Use For Prequalifying Prospects

How Contractors Can Make More Money, Faster and By Doing Less

With only so much time in a day, contractors need to maximize the revenue and or gross profit they earn each day in order to cover business overhead costs and contribute to their desired net profit goals.   Selling and producing more work is certainly one option to consider.  However, why not implement ways to increase the selling price and earn more gross profit without having to do any more work in the field or add anymore labor costs at the job site.

Options to consider

If you want to increase your sales volume and earned gross profit you can either produce more work or increase the selling price of your projects.  Here are a few things to consider:

• Producing more work at the job site means you will need more labor and the project will take longer.  Finding and keeping more employees busy can be challenging.    
• Increasing your selling price doesn’t have to be limited to raising the prices of what you sell.  Increasing your selling price can also be accomplished by increasing what is included in the selling price.
• Assuming you mark up everything you sell, if you find the right prospects and sell them higher price point products than you have used in the past, your average sell price goes up and the gross profit earned on each job goes up as well, without adding more labor or days to the project schedule.
• Also, consider that selling product options can be another way of increasing the sell price and earned gross profit, again without having to add any more time, do any more work or add any more labor to get the work done.

Here’s one example of what I am talking about 

At a recent Remodeler Summit event I participated in for Marvin Windows and Doors at their Warroad MN manufacturing facility, contractors learned about Marvin’s new option of prefinishing the interiors of their window and door products.   By selling this option to their customers, contractors can increase the cost of each window they sell by offering an additional service to their customers.  And, they can do so without increasing the production time of a window project and without having to add any additional on site labor to their projects.   The windows are prefinished at the factory, under controlled conditions and can either be prepainted or have a clear finish applied.   Because the prefinishing is done off site, all the mess of prepping and finishing is avoided, no extra job labor is needed and the smell of any finishing products is avoided at the job site.  Selling prefinished construction products can be a win-win, both of the contractor as well as the homeowner.  Selling prefinished products means more gross profit earned for the contractor without doing any more work.  The home owner benefits because more work is done in less time, with less mess and disturbance to their home and their daily lives.

Here’s one more example

At a tour of Reliable Truss and Components Inc., a division of National Lumber in Mansfield MA, I found out they offer prefabricated custom structures and components.  Using this service contractors can have components of their projects prebuilt and even prefinished in a controlled factory environment.  The components are then delivered to the contractor’s job site ready to install.   Partnering with a vendor who can offer this type of service helps the contractor earn more money by doing less work in several ways.  

• The contractor can earn gross profit on the labor as well as the product being provided by the vendor.
• At the same time, the contractor can be earning gross profit on the labor and the products being installed by his own crews while they get the project ready for installation of what is being built off site.
• Some vendors, including Reliable Truss, will also come prepared with the equipment needed and help your crew install the prefabricated and prefinished items at the jobsite.

It just keeps getting better!

Both examples above can help contractors earn more money in less time.   Both examples offer ways contractors can get more work done without having to add any additional talents or skills to their crews.  Both examples also eliminate or reduce the need to find and bring in sub contractors to do work the contractor’s own crews either don’t have the talents for or might not be cost effective at doing.

I bet more and more contractors will be thinking this way as the increasing costs of labor and the lack of available skilled labor puts pressures on their businesses and their profits.

Guest Blogger: Mark Brown is a student at BYU-Idaho where he studies Construction Management. He currently lives in Spokane, WA, working as a carpenter and studying online while his wife finishes her Bachelor’s degree in nursing. In this article Mark offers advice to his Generation Y peers based on what he learned from the commenters who shared their thoughts about Mark's first guest blog where he shared advice for contractor trying to work with Generation Y employees.

Gen Y Member Offers Advice to His Peers: How To Develop A Good Work Ethic That Will Make You Stand Out

Recently Shawn published some of my ideas and suggestions for contractors working with Gen Y employees in an article titled: “Contractors: How to work with Generation Y from one of them.” It became obvious shortly after the article went live that this subject is something many people have strong opinions about. I’ve sifted through over 8,000 words of commentary (over 15 pages!) left by readers of that article to try and find some common threads that I can tie into a follow up article for Gen Y’ers that shows them firsthand what industry professionals are looking for today and how they can stand out.

One of the biggest grievances about Gen Y is that they just don’t care. They have no respect. They’re too absorbed in themselves and the here and now of social media to be interested in learning a skill or craft. If you are guilty of this sin, it is time to change. Find something you enjoy doing, be it construction related or not, and STUDY it. Find books, magazines, museums, websites, blogs, Facebook pages, Pinterest boards, even actual human beings who enjoy the same thing. If you find yourself awake in the wee morning hours, let’s say reading blacksmithing books or something, you’re probably headed in the right direction. Learn to love and have passion for something real. Bring this enthusiasm to the job and apply it to learning a new skill. You will work harder, learn faster, and grow to truly love what you are doing. I think as Gen Y’ers we should all take a page out of this guy’s book…

Put your technology away and work.

If your girlfriend can’t wait, she might cost you more than dinner and a movie. Stay focused if you work on a computer all day. Get up and walk or get a drink to take a break rather than check your Facebook. We all know long winded personal calls and texts on the jobsite are unwanted. Learn to go without your phone in your hand for 8 hours a day and you will see better work, more focus, and I swear the day goes by twice as fast when you’re not constantly thinking about what “she” is doing (or “he” for that matter).

Put technology to work at work

At the same time, be the guy who remembers what your technology can do for your work. Bring up how to articles, diagrams, photos, and references from all that studying you’ve been doing. When questions or confusions arise on the job, be the one who remembers you can access plans, scopes of work, calculators, and change orders from a phone. Just remember to avert your eyes from tempting texts.

Finally, learn to work.

And I mean, like, the bury the guy who’s been doing this for as long as you’ve been alive kind of work. Show up on time. Be “present” mentally and physically. If you’re in the field, watch and learn the old guy’s tricks. Your fresh knees and elbows are worth their weight in gold. Don’t be afraid to stay late and show up early to organize, plan, and prepare. If you’re in the office, stay on top of technologies that relate to your industry or can be used to better it. Make suggestions, study the costs, and take initiative to show off things that can make the business better and more profitable.  

In summary

These are three simple suggestions that come not really from me at all, but from people across the nation who have spent decades learning what they do. By adopting these ideas to both your professional and personal life, you will be happier, fulfilled, and far more valuable than most. I encourage you to share them with your friends and family in hopes that Gen Y can learn how to contribute more effectively to the industry and the world.

How Should Remodelers Be Prequalifying and Selling To Generation Y?

A recent guest blog posted here at the Design Builders Blog was written by a Generation Y member.   The author, Mark Brown, offered some advice for contractors on how to work with Gen Y employees.   His blog created quite a discussion with over 38 thoughtful comments as of posting this blog from contractors and employees from all generations.   One contractor praised the blog and the discussion but also brought up another very valid consideration for contractors and remodelers: How to sell to Gen Y clients?  The answer to that question is probably a very big conversation and a very involved one as well. 

One thing is for sure.  Trying to force Gen Y to buy remodeling (or anything) the way you have always sold to other generations isn’t going to work.  That said how about bringing the answer down to a few simple but big picture considerations to help get the conversation started and offer some direction.  With a new direction in mind, you can then seek out and get the remodeling sales training you will need to sell to this new customer type.

If you can’t beat Generation Y, why not join them

The members of Gen Y are used to getting information instantly and for free.   Almost every one of them has a smart phone and can Google any subject or topic to find instant answers or information, all at no cost to them.   And they can get that information at any time of the day or night they want it.  That desire and internet content available about anything you can think of has definitely defined how Gen Y does their research and makes their remodeling or home improvement buying decisions. 

For contractors who have always sold to the generations born prior to Gen Y, the idea of providing instant and free information about a remodeling project for some young kid who isn’t ready to buy or make a decision without first checking you and your suggestions out online using social media throws a monkey wrench into any veteran contractor’s long standing selling process.  Those changes probably also all but kill a contractor’s sales closes rates when it comes to Gen Y remodeling and home improvement prospects.

“The reality to recognize is that Gen Y isn’t going to change.   So, contractors need to change how they both market to and sell to Generation Y if they want to do business with them.”

Save yourself a lot of time, give them what they want

If your construction or remodeling business doesn’t have a web site, stop reading right now or recognize and commit to the fact that you better get one up right away if you want to sell to Gen Y.  Done right, and it must be done right, a contractor’s web site  offers a place to give Generation Y, and any other generation for that matter,  the information they need to work through their decision making process and prequalify your business as a good option for them to consider.  If you’re strategic and you put the right information on your site, you won’t need to waste your time doing live sales calls with someone who would never have bought from you anyway and or who isn't far enough along yet in their decision making process to make any commitments that will include money.

What Information Should a Contractor’s website have on it?

Good question.  It has a lot to do with how Generation Y makes remodeling decisions.  I’ll offer some advice and suggestions on that topic in a follow up blog to be titled “If you don’t or won’t offer Generation Y Prospects what they want they will go away”

RRP Conundrum: To Test or Not to Test for Lead Paint.

Since the EPA RRP rule came into effect in April of 2010 renovation contractors have debated and bantered the topic of doing lead testing before they offer to sell and or perform renovations at pre 1978 properties. Due to lead testing disclosure requirements many contractors and properly owners have concerns about doing the testing.  Once a property is identified as containing lead many other laws, legal considerations (page of related articles) and potential liabilities kick in for both.   The catch 22 on this subject is that, under the RRP rule and the OSHA lead in construction regulations, if testing is not done before work begins, contractors must assume there is lead present.   It’s only natural under this scenario then that renovation workers, property owners and tenants at those properties are also left to assume, and worry, that there is lead and conducting renovations may leave them exposed.

Often discussions on these topics get passionate when contractors express their concerns about the liability they feel the rule exposes them and their businesses to even if they follow the rule and comply with all of its lead safe work practices and documentation requirements. Many contractors feel the EPA should have written some level of protection from liability into the rule for those renovators who abide by it. 

Recently I discussed these considerations with John MacIssac of ASAP Environmental.  John is MA State Certified Lead Inspector and Risk Inspector and an expert in renovation and construction.  During that conversation John and I assembled a list of the considerations that seem to rise to the top during those discussions.  

Who pays for RRP lead testing?

If a certified renovator will not be the one doing lead testing for RRP purposes, the testing must be done by a licensed lead testing professional.  Licensed lead inspectors in Massachusetts and other states cannot accept money for lead testing from contractors under contract with a property owner.  Therefore the homeowner is responsible for payment of all services relative to the lead testing.

Are you removed from liability if RRP lead testing is done?

Depending on the contractor liability insurance that you have you may be removed from liability if you do the testing, cleaning and cleaning verification yourself.  If you do not have insurance you are not removed from liability.  If you have a licensed lead inspector do the testing and clearance you are removed from liability if the company you hire to do the testing has their own coverage.

Considerations related to doing testing yourself using test kits vs. using a licensed lead Inspector

• Time it takes to do the testing and fill out the paperwork
• Cost of test kits depending on number of components to test
• Damage to components
• The EPA recognized lead test kits are qualitative where as a XRF test is quantitative.   Under the EPA RRP rule’s legal definition of lead paint, the amount of lead present may be below RRP definition, but, if using test kits, any positive result triggers need for compliance even if below definition.

Pretesting to establish a point of reference when clearance testing will be a requirement at completion

A pretest for lead dust could establish whether the site is already contaminated or not.   If it is, who will perform and pay the related costs to get it cleaned up before the contractor starts renovation work so the contractor is only then responsible to clean up affected work areas and pass dust wipe clearance testingat completion?

Education will be key in preventing liability

There are typically no easy answers to these considerations or guaranteed ways contractors can sell and do their work to prevent the possibility of liability.  That said education about the considerations and available options is probably the best way for contractors to protect themselves and their business.

If you’re in Massachusetts and want to learn more about the RRP rule, lead testing considerations and lead testing options John will be hosting a free Lunch and Learn Session at National Lumber in Mansfield MA on March 3^rd, 2013 from noon to 1PM.   The Lunch and Learn Session will be held before the start of a workshop presented by RRP Instructor and RRP Rule expert Mark Paskell titled “RRP and OSHA Workshop for Contractors and Remodelers” that will also include a discussion about the differences between the EPA RRP rule and the Massachusetts RRP regulations.

In Remembrance of Walt Stoeppelwerth: The Godfather Of Remodeling To Many

On February 18^th, 2013 Walt Stoeppelwerth passed away.  Walt was the President of HomeTech Inc in Bethesda, MD for over thirty years.  I have always been an admirer of Walt and all he did for me as well as our industry. Walt Stoeppelwerth's obituary only offers a small piece of what he did in his lifetime. 

During my early years as a remodeler I observed that Walt made many predictions about the future of the remodeling industry.  Those predictions included trends, challenges, shifts, business systems and methods of production.   Many of his predictions came true.  For a whole variety of reasons, other predictions may have been challenged by a lack of continuous development or adequate leadership within the industry.  Regardless, Walt kept beating his drum about what our industry needed to keep top of mind.  Until that is, he could no longer fend off the challenges of Alzheimer’s disease.

Walt help shape the Remodeling Industry

What I observed to be unique about Walt was that he not only predicted the future, he also participated in making it happen.  I suggest he was a visionary with a unique ability to identify, fully understand and solve existing as well as future challenges within the industry.  He would share his observations, speculate on the likely consequences if the challenges were not addressed, and suggest or predict the solutions he felt would address the challenges.   His brilliance was his ability to then create and provide the required solutions, and, through his consulting, direct others who wanted to participate in making the evolution happen.  

Although some feel such tactics might be self-serving, I disagree.  It is my opinion that Walt was a truly caring person who loved and gave his best to the industry, always willing to help people.  I think of him as a man who did and gave great things to the industry and the people he loved, and he found a way to be well paid while doing so.  By being well paid, he could afford to keep doing what he did and, perhaps more important, he kept getting better at it!  A good example for all of us to consider for our own businesses.

Walt was always up for a good debate about industry topics. 

Fortunate for me, I got to have many of those debates with Walt.  His purpose was never to prove anyone wrong or demonstrate his authority and knowledge.  Rather I observed his purpose was to always gain additional understanding and insight from others, so he could then use what he learned to complement what he knew and in turn offer better solutions to those he worked with.  I always left those debates with more knowledge and a greater understanding of each topic we explored.  In many ways he was a mentor to me.  I was and am still today honored to have taken his spot as a columnist for Remodeling magazine.

Carrying on Walt's example

From what I observed, Walt lived the value of continuous improvement.  His business model was not reactive to the perceived and often misguided needs expressed by remodelers and industry partners, but rather proactive in creating and providing the solutions and the guidance remodelers and industry partners really needed to improve and foster true success.

In summary, Walt had the intimate knowledge, insight, creativity, resources, contacts, relationships and solutions to change the industry and cause tremendous social benefit at the same time. 

When people feel better about themselves and their businesses, they listen and seek for more of what helped them. Additionally, many then share what they have and know with others with the hopes that they too will benefit.  Walt was a master at setting that example and making it happen for so many remodelers.

I am grateful for his example and for all I learned from Walt.   He may have left our industry, but he will never be forgotten.  I know many of you feel the same way.

Please feel free to share your thoughts and memories about Walt and what he did for you and your business.  I’m sure his family will be grateful to know.

Thanks Walt.

Guest Blogger: Diane Menke, VP/Operations Manager of Myers Constructs, Inc.  Diane Menke (left) and Tamara Myers (right) are the co-owners and principals of Myers Constructs, Inc., an award-winning design to build firm serving the greater Philadelphia region. A certified Women Business Enterprise, Myers Constructs is also a member of the U.S. Green Building Council, NARI, and NKBA.

Advice For Contractors When Working With Home Buyers Considering Renovations

The Construction Pro: A Key Player in the Home-Buying Process

Most people who are in the market for buying a home that is in need of renovation are not home-construction experts — and they don't know what the various necessary upgrades will cost them. That's why it makes sense for them to reach out to a reputable local construction expert for information before they make a property purchase. We get calls from people in this position often.

This is the advice we give them:

• Their real estate agent should provide them with comparable values for the property they are considering. The agent should also tell them where that prospective property may be lacking, in terms of value and sale-ability. For example, does it have enough bathrooms? Does it have updated systems, finishes, and appliances? What other features should it have to compete with the highest priced comps in the area?
• Once they find a property they want to put a serious offer on, they should reach out to a building professional for some assistance in developing their renovation budget. That budget should be weighed against what the comps and the offer will be. If they do not yet have a relationship with that construction pro, they should expect to compensate them for their time. A good carpenter might bill them $70/hour; a design-build pro might run $120/hour or more. Small structural repairs and a bathroom refit with no design might be perfect for the carpenter, while a complicated project like a kitchen or addition require a design/build professional who has experience in those types of projects.
• Most property buyers do not need to have full plans and exact budgets to formulate their offer. If they come away from the discussions with a ballpark range of expected costs — with a 10-15% cushion added for contingencies that might be found once walls are opened up — they should be in good shape to make an offer.
• Once they close on a property purchase, we encourage them to reach out to those same construction pros and offer them the work on their new home. In this way, they will develop mutual trust with a valuable ally on their wealth-building team.

Guest Blogger: Mark Brown is a student at BYU-Idaho where he studies Construction Management. He currently lives in Spokane, WA, working as a carpenter and studying online while his wife finishes her Bachelor’s degree in nursing. This article is a shortened version of an essay titled “Is Generation Y learning how to learn?” written by Mark for a research writing class. It has been revised to help contractors working with Gen Y employees.

Advice For Contractors On How To Work With Generation Y From One Of Them

“Things just aren’t the way they used to be” is a lament often heard from aging generations. However nostalgic and skeptical this observation may be, it is definitely true. Generation Y (those born between 1980 and 2000) is growing up in a world completely different than their parents. Today we are surrounded throughout our waking hours by new technologies and devices that feed us steady and seemingly infinite flows of information, providing us with instant connection to knowledge that used to be much more difficult to acquire. Obviously, things are not the way they used to be. One can’t help but wonder; how do these changes affect our daily lives?  The way we work?  Our relationships with others?  The way we see ourselves?  How we learn?  

Contractors today face an especially daunting task trying to teach the business to a generation that learns completely different than the average hard-knocks PhD. Understanding these differences is essential to utilizing the huge talent Gen Y possesses and snuffing your own doubts of any hope for the future. 

The way Gen Y learns is fundamentally different than their parents.

They process information about ten times faster, they expect free and instant access to all this information, and they wonder what everyone else thinks about it all. Most have grown up learning on a computer from the time they were in grade school. Google is their main professor and they’ve learned to research as fast and efficient as possible. Capitalize on this. Gen Y can sail through tasks you find yourself poring over for hours like learning new scheduling software, Google Sketchup, or computer networking. They love to share what they’ve learned and can help you learn faster.

They can learn fast and perform consistently

Like a Southern California piece-work carpenter, Gen Y loves to have their work lined out and ready to tackle. This may be frustrating to those who value someone who can see what needs to be done and figure out how to do it, but think of the value of someone who can learn fast and perform consistently. Gen Y is also extremely adaptable, so they can learn how to be the leader who takes charge. They just need a better reason than, “Because that’s how it’s done you idiot!”

Can, will you give them what they want?

Gen Y has often been accused of wanting everything right now that their parents spent 25 years earning. However fair the accusation may be, it definitely reveals something about Gen Y. You’ll be hard pressed to find a more ambitious bunch. If they know that you can give them something they really want, they will follow whatever path you draw for them to get it. You can build them in ways that you never could with a burnt out 50 year old carpenter who’s been swinging a hammer the same way since he was 18.

The construction industry has seen some dismal days as of lately and those who have spent nearly a lifetime in it may not wish others the same. But, I hope they can see the promise that exists in the younger generation and take some time to be coaches and mentors to those who are ready and more than capable of taking the industry to the next level.