contractor advantage september / october 2011

September/October 2011

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COMPLIMENTARY

Workforce Struggles

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HardwoodFlooring

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Building Code Opportunities

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WINDOW INSTALLATIONINTERIORPAINTS

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Contents

CONTRACTOR ADVANTAGE SEPTEMBER/OCTOBER 2011 | 3

Advertising EnquiriesVendors whose products are carried in Castle Building

Centres stores have the opportunity to advertise in

For more information or to reserve space in the next issue, contact:

Diane Jones Advertising Manager,

Phone: 905-564-3307 Fax: 905-564-6592 E-mail: [email protected]

Published and designed exclusively for Castle Building Centres Group Ltd. by Business Information Group

Material Contact: Jessica Jubb 416-510-5194

Copyright 2011

Castle Building Centres Group Ltd.,with building supply outlets in every province, is a leading supplier of lumber and building

materials to professional contractors, builders and renovators.

Publications Mail Agreement #40006677

Return undeliverable Canadian Addresses to: 100 Milverton Drive, Suite 400 Mississauga, Ont. L5R 4H1

September October 2011 Vol. 17 No. 5

Editorial Director Castle Building Centres Group Ltd.

Diane Jones

Managing EditorPaul Barker

Art Director Mark Ryan

ContributorsNestor E. Arellano Jim Bain David Chilton Lawrence Cummer Victoria Downing Stefan Dubowski Josh Kerbel Paul Rhodes John G. Smith

FeaturesWorkforce Struggles / 22Canada’s construction industry needs a new generation of employees.

On The Surface / 28A host of specially-formulated paints have recently been developed.

Shining A Light On Solar Power / 36Governments across Canada offer incentives for solar-powered projects.

Window Installation Tips / 42There are two types of windows: those that open and those that do not.

Coded For Success / 49Building code changes are creating more opportunities for the savvy contractor.

The Hard(wood) Facts / 57Flooring options may vary, but the importance of proper installation procedures remains.

28

Inside49 57

NEWS WATCH / 5 Retrofit program renewed

NEW PRODUCTS / 9 New and improved products

BUSINESS STRATEGIES / 12 Compete on value, not price

SMART MONEY / 14 Closing the deferral loophole

ONLINE MARKETING / 16 An internet top ten

ECONOMICS 101 / 18 I do not have time, is a lie!

LEARNING CURVE / 21 Building business value
















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News Watch

The Canadian Home Builders’ Association (CHBA) has applauded Natural Resources Min-ister Joe Oliver on the announced details of a re-newed ecoENERGY Retrofit - Homes program.

“This announcement will be well received by both our industry and Canadian house-holds. It means that homeowners can begin the process of making their homes more ener-gy efficient, right away,” said CHBA President Vince Laberge.

The program is complemented by the government’s on-going support for the R-2000 initiative, the EnerGuide Rating Sys-tem and ENERGY STAR for New Homes.

By requiring written receipts for expenses eligible for a grant, the ecoENERGY Retro-fit - Homes program has the added benefit of encouraging people to work with profes-sional renovators, the CBHA said in a release. It added that the initiative will bolster the gov-ernment’s efforts to combat the underground cash economy in home renovation services.

The renewal of the ecoENERGY Retrofit program will help to enhance the quality of the country’s housing stock, particularly in terms of its environmental performance, Laberge said.

“The residential sector is already a leader in reducing greenhouse gas emissions, and this federal government commitment will help homeowners achieve even more. Im-proved energy efficiency saves homeowners money, and it helps Canada meet its envi-ronmental goals.”

The Canadian Home Builders’ Association (CHBA) is the national voice of the residential construction industry, representing more than 8,000 member firms across the country.

Membership comprises new home build-ers, renovators, developers, trade contrac-tors, building material manufacturers and suppliers, lenders and other professionals in the housing sector.

Meanwhile, Owens Corning Canada also applauded the move, saying one in 20 ho-

meowners have taken advantage of grants worth up to $5,000 provided by the ecoEN-ERGY Retrofit – Homes program since its in-troduction in April 2007 until the announce-ment of its withdrawal in March 2010.

“With over seven million under-insulated attics in Canada, Owens Corning is delighted that the ecoENERGY Retrofit – Homes pro-gram has been extended,” said Ric McFadden, Vice President of Building Materials at Owens Corning Canada. “We know the grants made available to homeowners will encourage Cana-dians to make the necessary improvements to their homes, allowing them to save both money and energy over time.”

The following are covered under the grant program: heating systems, cooling systems, ventilation systems, domestic hot water equip-ment, insulation, air sealing, windows/doors/skylights and water conservation.

Further information is available at www.ecoaction.gc.ca/homes.

Renewal of retrofit program welcome news for homeowners, contractors, CHBA says

Some of Canada’s largest construction own-ers have developed a national strategy to ad-dress the critical need for skilled workers.

The group says that their consensus plan will help keep Canada’s economic recovery on track, keep its workers working, and create new opportunities for youth and those who are un-der represented in the construction industry, including women and aboriginals.

“We saw in that period up to 2008 how a shortage of skilled labour could negatively im-pact our work, delay projects, and increase costs. We saw how little any one company or organiza-tion could do about it,” said Steve Williams, chief operating officer of Suncor Energy Inc.

With Canada’s Construction Sector Coun-cil forecasting a need for more than 300,000 new workers, approximately 25% of the in-dustry’s current workforce by 2019, the time to act is now.

“As construction owners, we decided to band together and commit to work with con-

tractors, labour groups, government, educa-tors and trainers to address these workforce challenges,” said Williams.

Part of that effort entails training for unem-ployed Canadians, retention strategies for old-er workers, and the importance of Temporary Foreign Workers in the short-term.

Construction and maintenance workers in Canada build, install, maintain, repair and renovate more than $220 billion of infra-structure annually.

The construction industry employs 1.2 million workers, accounts for 6% of total Canadian employment, and generates more than 12% of the country’s gross domestic product.

“The opportunity for work is there,” said Williams. “When you consider Canada’s ag-ing workforce, an increasing investment in new infrastructure, and a greater need to maintain that which we already have, the need will only grow.”

Construction owners ‘come together tzo keep Canada building’


http://www.ecoaction.gc.ca/homes

Nissan

Starting from $30,998For more information, visit ncv.nissan.ca

* Available features. MSRP for 2012 NV 1500 (X41A72 AA00) is $30,998. Freight and PDE charges ($1,630), license, registration, insurance, duties and applicable taxes (including excise tax, fuel conservation tax, tire recycling tax and duties on new tires, where applicable) are extra. All prices are subject to change without notice. TMThe Nissan Commercial Vehicles names, logos, product names, feature names, and slogans are trademark owned by or licensed to Nissan Motor Co. Ltd., and/or its North American subsidiaries.

The All-New 2012 NV LineupINNOVATION THAT WORKS

Your business card may say contractor, plumber, landscaper or electrician, but we know that’s only half of the story. You’re also the accountant, customer service department and CEO. And that’s why the Nissan NV is so much more than a van. With a built-in filing cabinet,* and expanded desktop surface,* it’s your entire office on wheels – perfect for all your jobs. You’ll have a hard time finding any other van than can do the same.

11:38 AM POWER PLANT

powerful and efficient 5.6L V8 and 4.0L V6

engine options

9:02 AM WORKSHOP

custom upfits forall your tools

7:15 AM WAREHOUSE

up to 320+ cubic ftof cargo space

4:45 PM STORAGE FACILITY

243- degree wide opening doors

3:10 PM BILLBOARD

ample space foradvertising

2:45 PM CORNER OFFICE

optional locking centre console with file

cabinet and laptop storagewith 120v power

12:01 PM HEADQUARTERS

high roof availablewith 6'3" headroom

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News WatchPH

OTO

: DU

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NE

An estimated 1.9 million households, sur-veyed in 10 major centres, indicated they completed renovations last year, a slight decrease from the 2.1 million households that completed a renovation in 2009. This represents 42% of homeowner households (down from 50% in 2009), according to the Renovation and Home Purchase Survey re-leased by Canada Mortgage and Housing Corporation (CMHC). The average cost of renovations was $12,972.

“Almost $23 billion was spent on renova-tions in 2010 across the 10 major surveyed centres,” said Bob Dugan, chief economist at CMHC. “As well, when Canadian homeowners were asked about their renovation plans for this year, 39% indicated that they intend to spend $1,000 or more by the end of 2011.”

Of the 10 major surveyed centres, the highest percentage of homeowner

households that renovated in 2010 was in St. John’s, Nfld. at 48%, followed by Hali-fax and Ottawa (47% each) and Winnipeg (46%). The centre with the lowest propor-tion was Calgary at 39%.

Renovation intentions for 2011 are high-est in St. John’s, where 50% of consumers in-dicated they plan to undertake renovations costing $1,000 or more. This is followed by Halifax (44%) and Ottawa and Winnipeg (43%). The proportion of potential renova-tors is lowest in Montréal (37%) and Toron-to and Québec City (both at 38%).

On the home purchasing front, 6% of all households indicated they bought a home in 2010, unchanged from 2009. The largest share of homebuyers was in Winnipeg, Ot-tawa, Halifax and St. John’s (all at 7%). The lowest share of homebuyers was in Vancou-ver, Toronto and Montreal (5% each).

The D-box box, the new 2-in-1 nails and storage system concept from Duchesne, won two awards at the recent edition of the “PAC LEADERSHIP AWARDS” packaging competition: the gold award in the Rigid / Semi Rigid Container category and the silver award in the Brand Marketing / New Brand category. The competition is organized by PAC (Packaging Association of Canada).

The judges based their decision on the follow-ing criteria: brand positioning, markets targeted, innovation and brand durability. In addition,

graphical presentation originality, communica-tion effectiveness, reproduction quality, image definition, finish, the packaging’s innovative structural design, the choice of materials for the application, quality, possible container merchan-dising, packaging strategy for the target clientele, originality, attractiveness to consumers, and dura-bility were also considered.

The packaging competition has been held since 1953, and many national and internation-al companies compete in various categories.

Housing starts rose in June: CMHC

The seasonally adjusted annual rate of housing starts was 197,400 units in June, according to Canada Mortgage and Housing Corporation (CMHC). This is up from a revised 194,100 units in May 2011. April 2011 has also been revised to 194,100 units.

“Housing starts increased in June due to an increase in single and multiple starts in Ontario,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “The revised numbers show that housing starts have been above their trend line since March.

However, we expect housing starts to move back towards levels consistent with demographic fundamentals in the near term.”

The seasonally adjusted annual rate of urban starts increased by 2.2% to 174,600 units in June. Urban single starts were up by 11.1% in June to 70,900 units, while multiple urban starts decreased by 3.1% to 103,700 units.

June’s seasonally adjusted annual rate of urban starts increased by 24.1% in On-tario, and by 5.6% in the Atlantic region. British Columbia posted a decrease of 27.6% over the same period, while urban starts decreased 3.6% in Québec, and by 1.2% in the Prairie region.

Rural starts were estimated at a sea-sonally adjusted annual rate of 22,800 units in June.

Duchesne’s D-Box wins gold, silver at PAC LEADERSHIP AWARDS

Renovation spending reaches $22.8 billion across 10 major centres

Starting from $30,998For more information, visit ncv.nissan.ca

* Available features. MSRP for 2012 NV 1500 (X41A72 AA00) is $30,998. Freight and PDE charges ($1,630), license, registration, insurance, duties and applicable taxes (including excise tax, fuel conservation tax, tire recycling tax and duties on new tires, where applicable) are extra. All prices are subject to change without notice. TMThe Nissan Commercial Vehicles names, logos, product names, feature names, and slogans are trademark owned by or licensed to Nissan Motor Co. Ltd., and/or its North American subsidiaries.

The All-New 2012 NV LineupINNOVATION THAT WORKS

Your business card may say contractor, plumber, landscaper or electrician, but we know that’s only half of the story. You’re also the accountant, customer service department and CEO. And that’s why the Nissan NV is so much more than a van. With a built-in filing cabinet,* and expanded desktop surface,* it’s your entire office on wheels – perfect for all your jobs. You’ll have a hard time finding any other van than can do the same.

11:38 AM POWER PLANT

powerful and efficient 5.6L V8 and 4.0L V6

engine options

9:02 AM WORKSHOP

custom upfits forall your tools

7:15 AM WAREHOUSE

up to 320+ cubic ftof cargo space

4:45 PM STORAGE FACILITY

243- degree wide opening doors

3:10 PM BILLBOARD

ample space foradvertising

2:45 PM CORNER OFFICE

optional locking centre console with file

cabinet and laptop storagewith 120v power

12:01 PM HEADQUARTERS

high roof availablewith 6'3" headroom

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New Products

Innovative Products for Today’s Renovators

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+FLUSHMOUNT BODY SPRAYS FROM MOEN CREATE SPA-LIKE EXPERIENCEThe Flushmount body sprays from Moen Canada are designed to create the perfect shower or vertical spa experience, the company says. With a modern design that fits cleanly against the wall, the body sprays blend in with tile, slate or other pre-mium shower surround materials. The adjustable spray face allows water to be pivoted up to 20º degrees in any direction.

An adjustable mounting bracket helps ensure quick and easy alignment with adjacent body sprays and fits within a stan-dard 2x4 foot wall.

The sprays are engineered with performance-enhancing features, including a Fibonacci-inspired spray, a spiral-shaped nozzle pattern to provide full-body coverage resulting in invigo-rating water sprays. They also feature Moen’s Immersion rain-shower technology to enhance the spray delivery and create a water enveloping sensation.

Flushmount body sprays are available in either round or square trim shapes and a Chrome, LifeShine Brushed Nickel or Oil Rubbed Bronze finish. They are also compatible with a num-ber of Moen Canada’s shower and vertical spa systems.

STANLEY RELEASES ORGANIZER AND TRIO OF HAND TOOLS Stanley and Stanley FatMax have launched new hand tools and organizers designed with innovation, comfort and du-rability in mind.

The Stanley FatMax 17 oz. Framing Hammer (#51-414) is lightweight to reduce fatigue on the job, while perform-ing with the speed and strike force of a 22-oz. hammer. It features a checker face design, genuine hickory handle complete with a grip-enhancing axe-handle finish for ergo-nomic comfort and lists for $34.99

Stanley FatMax non-magnetic I Beam Levels are available in 24” (#43-553), 48” (#43-555) and 72” (#43-557) models. The levels combine strength and durability with lightweight frames, shock absorbing end caps, rubber grip handles and a pencil retainer for convenient marking. Price: $24.99 for the 24” level, $29.99 for the 48” and $44.99 for the 72” level.

Meanwhile, the Stanley Hand Held Tool Sharpener (#16-144) contains coarse grit on one side and fine grit on the other and adapts to almost every hand tool. The sharpening stone fits in its handle for protection and convenient storage. Price: $29.99

Finally, the Stanley FatMax Professional Organiz-er (#014820R), according to the company, is the first

water-sealed organizer on the market. Its design also allows a con-tractor to securely lock and stack together more than one orga-nizer if you need to tote a lot of equipment or a single organizer for smaller jobs. The suggested list price is $29.99.

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Business Strategies

BY VICTORIA DOWNING

Victoria Downing is president of Remodelers Advantage Inc. and is a leading authority in the remodeling industry. She has authored and co-authored several industry books, including The Remodeler’s Marketing PowerPak. She can be reached at [email protected] address or by phone at 301 490-5620 ext. 105.

12 | SEPTEMBER/OCTOBER 2011 CONTRACTOR ADVANTAGE

‘People do not buy price, they buy value, from the person or company they perceive as most likely to deliver the best value.’

Compete On Value, Not Price

At Remodelers Advantage, we work with hundreds of renovators each year, helping them identify opportunities for improve-ment within their companies. One common area is selling skills. As so many renovators came into the business from the trades, few have had the chance to really experience top quality sales training.

Our director of business development, Ted Dubin, is just the opposite. He has been a sales professional for over 20 years and un-derstands the process better far better than most. Ted regularly shares his expertise with our entire community of business owners and, in this column; I wanted to give you the chance to learn from him too.

Here are his insights:

Creating the Need: Our Remodelers Advantage members are con-stantly presenting their best proposals to pros-pects and, shortly thereafter, finding out that the prospective client has found some outfit that promises to do the work for a lower price.

Sometimes you do not even get to make a true proposal because you immediately hear “xxx can do it for less.” There are situations where you know the other person’s quote is so low that they cannot even buy the proper materials for the price they have quoted, much less perform the work. Other pros-pects decline to move forward because the cost of the project they are asking for is more than they expected.

You know you do great work, you know

you have priced the remodeling work fairly and you know you cannot lower your prices beyond a certain point or you will go broke. What you need to learn is to sell and com-pete on value, not price.

Price is not the object People do not buy price, they buy value, from the person or company they perceive as most likely to deliver the best value.

You do not believe this? Look outside in the parking lot. All types of cars are out

there, but very few, if any, are the cheapest model available. Why does everyone not buy the cheapest car possible? If you can get a new car for $10,000 then why do people pur-chase more expensive vehicles? People buy products and services based on their expec-tation of the product or service’s ability to deliver what they need.

It is the same in the remodeling industry. No one brags to their friends or family “Nice job, huh? I went with that company because they cut the price of my new toilet by $5,” or, “They discounted my lumber $500.” They say, “I went with them because they really seemed to care about the needs of my fam-ily and I” or, “I went with them because they really took the time to understand what was important to me.” If you have not educated your prospects properly and helped them

Prospective buyers will always purchase from those best able to explore and draw out their wants, needs and desires.




Business Strategies


discover their true needs and desires, they will always go for the lowest price.

Now, you say, “Yes, I have heard this before. I deliver a great value but nobody cares.”

You need to show the world why they should care. Prospective buyers will always purchase from those best able to explore and draw out their wants, needs and desires. The problem is too many remodelers are, by na-ture, terrific problem-solvers. They just can-not wait to show the prospect the great design they have come up with and get started. Un-fortunately, simply proposing your great de-sign solution is not enough. If you show your product to your prospect before you have helped the prospect discover the need to buy from you then you are just wasting your time. You will lose out to the first competitor that promises to do the work cheaper.

How do you teach your prospects that you will deliver real value and convince them that they should work with you instead of any other firm?

Asking your prospects open-ended ques-tions creates the need to buy only from you.

Why I paid $3,000 for a pebble and was happy about it Let us illustrate with a real-life example. Years ago I wanted to buy an engagement ring. I did the natural thing and went to the mall (lots of jewelry stores at the mall, right? I am sure to get the best price). I went into the first store and announced “I am here to buy an engagement ring.” The clerk went to a display case, opened the case and took out the little velvet tray with diamond rings on it. Of course, like most jewelry stores, the price tags were upside-down. As the clerk stood there (silently) I flipped the first tag. $1,500? No way! I thanked the clerk and left. I pro-ceeded to the next store where the (also si-lent) clerk opened his case, took out the tray (with the price tags upside-down) and laid it on the counter. I flipped the tag to find $1,750? That was even more than the last guy. No way! I left that store too.

I went to a third store and announced my intention to buy an engagement ring. The gentleman running this store did not take out any merchandise. Instead he asked me “What do you know about diamonds?” I told

him that I really knew nothing about dia-monds and that it was my first time buying any jewellery of this type.

He then spent the next hour teaching me about diamonds (you know, the four Cs: colour, cut, clarity and carats. I still remem-ber this 20 years later). He asked me lots of open-ended questions such as, “What kind of style does your fiancé enjoy, traditional or modern? How often does she wear her other jewelry? What sort of work does she do?” We then looked at an assortment of diamonds through a loupe (a jeweller’s eyepiece). He showed me diamonds of different colours vs. pure white and an assortment both with and without flaws, all the while asking me ques-tions. “How do you feel about flaws in the diamond? How close to completely white do you think your ring should be? When you buy the ring how do you want it sized?”

Only when the jeweller was thoroughly convinced I was really feeling the need to make a great purchase did he bring out his merchandise. By working with me he was able to say “Here is what I recommend.”

I bought from him. The ring I chose cost $3,000, twice as much as the competitor’s price in the store that I walked away from as I thought it was too expensive, and I was thrilled.

Equally important, here is what did not hap-pen: I did not try to bargain because I now un-derstood I was getting a good value. I did not walk away and try the next store, and I did not go back to the first two stores and try to com-parison-shop. No, this was “my person” and I was buying from him and only him.

How to create the need for the prospect to only buy from youRemember, unless your customers under-stand value, they will see it as their duty to select the remodeler with the lowest bid. You must ask a series open-ended questions be-fore you make any product presentation.

As a refresher, open-ended questions are those that cannot be answered by a yes or no. Open-ended questions begin with “Who, What, Where, Why, How and When.” These questions make your pros-pects think before answering. They natu-rally lead to further conversation.

Think back to the jeweller in the previous

example. Now, apply this to your remodel-ing business. Do you work on kitchens or baths? OK, ask your prospects, “What do you know about how cabinets are made? When you choose your faucet, how long do you want it to last?” Then explain your use of only superior products from reputable sup-pliers. Building an addition? Ask, “How will you and your family use the room? What do you know about framing? How do you want the room to feel?” Then sell your exper-tise at great design and solid, weather-tight construction. Set up the opportunity to sell your better-than-the-competition practices. “When the work is in progress, how impor-tant is it that the crews maintain a clean envi-ronment?” or, “How important is the reputa-tion of the company you choose to work on your home?”

Every good Renovator should have at least 30 open-ended questions ready to ask without hesitation. Of course, you are not going to use all 30 in every meeting, but a few smart questions asked with confidence will make the difference between trying to justify your bid against a lower price and making magic happen with your clients.

When do I ask these questions? Again, after you have qualified the prospect to make sure they can buy what you are en-visioning but before you present your pro-posal. Never make a presentation until you have firmly established in the client’s mind that they need to buy only from you.Your Task: Develop a minimum of 30 open-ended questions that demonstrate the value of your company and its great work to pro-spective clients. Practice so you can deliver these questions with confidence. Keep a list of what works best for you, and use the ques-tions you have perfected with every prospect every time.

Watch your sales increase and your price competition evaporate.To hear more from Ted and the rest of the Remodelers Advantage team, subscribe today to PowerTips – a regular email com-munication packed full of practical, instant-ly-useable business tips and techniques. www.RemodelersAdvantage.com

http://www.RemodelersAdvantage.com


Smart Money

BY PAUL RHODES

Changes in the federal budget introduced on June 6 limit how corporations can defer partnership income.

Closing The Deferral Loophole

Paul Rhodes is a partner at Soberman LLP. His professional experience includes construction, manufacturing and real estate and internal audit engagements. Paul is a member of the Toronto Construction Association.

The federal budget of June 6th, 2011 (“Bud-get 2011”) reintroduced the government’s March 22nd budget proposal to limit de-ferral opportunities for corporations with significant interests in partnerships. This article provides an overview of those rules.

Prior to the budget, income earned by a corporation as a member of a partnership is included in the corporation’s income for the corporate taxation year in which the fiscal period of the partnership ends. Therefore, if a corporation with a Nov. 30 year end has an interest in a partnership with a Dec. 31 year end, taxation of the partnership income can be deferred for 11 months. The Budget perceives there to be abuse of this rule where corporations choose partnership year ends with the intention of deferring tax payments, even though a natural deferral arises where corporate partners have different year ends.

The measures described below will apply to a corporate partner for a taxation year if:

• the corporate partner is a member of a partnership at the end of the taxation year;

• the partnership’s last fiscal year that began in the taxation year, ends in a subsequent taxation year of the corporate partner; and the corporate partner, together with affiliated and related parties, was entitled to more than 10% of the partnership’s in-come (or assets in the case of wind-up) at the end of the last fiscal period of the part-nership that ended in the taxation year.

• A corporate partner meeting these criteria will have to accrue income for the stub pe-riod, which in the example above is Jan. 1 to Nov. 30. The accrual will be calculated by for-mula as the pro-rata amount of the partner’s in-come from the partnership for the fiscal period of the partnership ending in the taxation year of the partner (the “formulaic approach”).

Therefore the corporation will include in income for a year:

• the partner’s share of income for the part-nership year end ending in the corpora-tion’s tax year, plus the accrued income for the stub period less the accrued stub period income for the prior tax year.

The corporation may also elect to des-ignate an amount to include in the current year’s income instead of using the calculat-ed amount described. This election allows the income inclusion to be reduced for a year when the actual partnership income is expected to decrease.

Measures are proposed in the budget to increase the income inclusion in the subsequent year if this “designated amount” is less than the lower of:

• the amount calculated under the for-mulaic approach and the actual share of

income for the stub period based on the partnership’s subsequent tax year.

In general, the additional income inclu-sion adjustment will be equal to the amount of the shortfall multiplied by the average in-terest rate applicable for underpayments of tax for the period. Subject to some excep-tions, penalty measures are also applicable if the shortfall of the designated amount exceeds 25%.

The proposed measures will apply to tax-ation years of a corporation that end after March 22, 2011. To avoid the negative cash flow effect to corporate partners of bringing into income up to 23 months of partnership income in one year, a company can claim a tax reserve (that is, a deduction from in-come) under transitional rules.

The reserve allowed will be equal to 100% of income qualifying for the reserve in the first year. (The rules surrounding the cal-culation of Qualifying Income are reviewed here.) The transitional relief will generally

Prior to the budget, income earned by a corporation as a member of a partnership is included in the corporation’s income for the corporate taxation year in which the fiscal period of the partnership ends.

Smart Money


result in no additional taxes being payable for that first corporate taxation year.

In the subsequent five years the reduc-tions in the reserve will give rise to income inclusions of 15% in the first year, 20% in each of the second, third and fourth years and 25% in the fifth year.

As a result of these measures some part-nerships may wish to change their fiscal year end to align with the taxation year of one or more corporate partners. A one-time election will be provided that will enable a partnership to change its fiscal year end provided that cer-

tain conditions are met. Note that electing to change the partnership’s year end will mean the catch up in income inclusion will be imme-diate; there will be no benefit available from the transitional relief rules.

The Canada Revenue Agency (CRA) has previously allowed the participants of a joint venture to select a year end different from their corporate year ends; however, in June CRA announced that a change in this administrative policy will be made which will mirror the new partnership rules an-nounced in Budget 2011.

Due to the extent to which these business structures are used these new rules will have a considerable effect.

Any corporate partner should review their application with their professional adviser to assess the cash flow implications and also to determine whether any benefit is available from, for example, aligning year ends.

This article has been prepared for gen-eral information. Specific professional ad-vice should be obtained prior to the imple-mentation of any suggestion contained in this article.

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Josh Kerbel is Managing Director of Sales Funnel, a digital marketing agency that specializes in lead generation and prospect management systems. To get a copy of the free white paper, 8 Steps to Internet Marketing Success, please send an email to [email protected].

Much like every other part of the world around us, Internet marketing has changed substantially in the last 10 years and it is im-pacting your industry and business, even if you do not know it. Keep these 10 points in mind the next time you revamp your mar-keting strategy:

1. Whether you like it or not, you are in the publishing business. Guess what? If you have a website, you are in the publish-ing industry. Readers are going to come to your site looking for relevant content. This means that if you want to pull in busi-ness from the Internet, you need to pro-vide compelling and engaging content. If you do not, prospective clients will go to competition that is willing to make this in-vestment. If you doubt this fact, consider how you use the Internet in your personal and professional life.

2. People like to talk. If you remember one thing from this article, remember this: people like to gossip. People (your pros-pects and customers) go online and write comments, advice and reviews and rants about products they love and more often hate. Survey after survey show that these comments have more credibility than your brand message. This means two things for your business. One, make sure people only have good things to say about you; and two, when someone makes less than flattering comments about your business, do not let them go unanswered.

3. Just because social media is free, does not mean there is no cost involved. One of the biggest mistakes business owners make about social media is that they think be-cause it is free, they do not need to put a lot of effort into it. Social media campaigns require the same sort of planning as a tra-ditional marketing campaign. Just because Twitter is free, it does not mean you can wing it. You need to invest in creative con-cepts, strategy and execution.

4. More Competition. Now more than ever, your prospects can find out more information about your competition faster than ever be-fore. This means consumers can spend more time comparison shopping, which means

they are finding out more and more from your competition than they previously were able to. You are potentially competing with companies around the globe, all the more reason you need to improve your website con-tent. When someone asks you who your com-petition is, do you really know the answer?

5. Numbers matter. Almost every form of digital marketing can be boiled down into key performance indicators (KPI), which are numbers and statistics that determine the effectiveness of a compa-ny’s marketing efforts. This is one of the major reasons online marketing has at-tracted so much investment. The beauty of this is that you no longer have to guess about which marketing channel brought in which dollars. What this means is you need to become much more familiar with these performance numbers and make sure your organization is collecting them. Make sure you know your company’s ROI on its Internet marketing investments.

Internet marketing has changed substantially in the last 10 years and it is impacting your industry and business …even if you do not know it.

BY JOSH KERBEL

Internet Marketing Top Ten

Online Marketing

Guess what? If you have a website, you are in the publishing industry. Readers are going to come to your site looking for relevant content.


6. Integration is critical. In the past, many companies have put online marketing in a separate silo than traditional mar-keting. Successful marketers know this is not the way to set things up, digital marketing require insights and infor-mation about all the offline marketing elements and must mesh with the of-fline efforts. You need to utilize offline marketing to drive prospects to your in-teractive online channels.

7. Marketing cuts across functional ar-eas. Traditional marketing lines have blurred with other functional areas as customers have different reasons for buying your company’s products. For some companies, it is their operational methods that provide customers with value, for other companies, it is their financing options. Marketing needs to find out how each functional area of your company delivers value to custom-ers and then turn this into a compelling value proposition.

8. Marketing takes time. You must account for time needed for internal design processes and legal reviews when you are bringing a new campaign out. Mar-keting teams and entrepreneurs almost always underestimate the time required for internal reviews (or forget about it all together). In advance of your needs, get all stakeholders on board and set ex-pectations for the turnarounds needed to keep programs on track. This is where proper project management skills come into play. Fail to plan, plan to fail, as the old adage goes.

9. It is not all direct response. You cannot expect people to flock to your product of-fering if they do not know who you are or what you sell. Prospects conduct product research and engage in buying behaviour along predictable patterns, but in order to get that direct response from custom-ers you need to spend time and money on branding in order to increase brand awareness of your product in order to pro-duce the sales you want.

10. Poor SEO implementation. If you have hired a search engine optimization cosult-ing firm or in house expert, do you not think the best way to make use of this in-vestment is by implementing their recom-mendations? It is like going to the doctor

and not following his recommendations. Organic search engine traffic is the cheap-est publicity your company will ever get, but in order to get it your company must imple-ment SEO recommendations relative to the time in which they were given.

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Economics 101


BY JIM BAIN

Doing more with less is not only possible, it is absolutely required in today’s economy.

‘I Do Not Have Time,’ Is A Lie!

You have heard people say this over and over again, “I do not have time.” The fact is that we all have the same number of hours in each day and we choose what to do with those hours.

We choose whether to stay in bed, get up and go to work, or show up at our exercise class. We choose whether to write a letter to our mothers, take out the trash, clean the garage or paint the house. We choose what kind of work we want to do, where we want to live, who we want to live with, what hob-bies we like to pursue. Our lives are a collec-tion of our choices.

Ben Franklin said, “Time is the stuff of which life is made.” If that is true, it means that time management is no more than self-management. As a result of the economic collapse of 2008, there are fewer people do-ing more work. There is more competition, which means more proposals, more sales calls and more projects to be done by fewer people. In short, many of those who still have jobs are overwhelmed by the sheer vol-ume of things they are expected to do. Since very few of us can “do it all,” we had better find some ways to make better choices.

While there are a lot of good habits that you can develop to better manage your time, it is best to pick a few to get started. Master those and then move on to another group. Start with these simple ideas to make your life a little eas-ier. Remember, they are simple ideas, not nec-essarily easy. They will require self-discipline, just as developing any good habit does.

Develop a set of goals and write them down. Consider short-term and long-term

goals. Consider establishing goals that will help you balance these eight important ar-eas of your life: professional, social, spiritual, financial, recreational, family, intellectual and physical. If that is too many, use the YMCA model of mind, body and spirit. Ei-ther way, you should be thinking in terms of life balance.

Analyze where you spend your time now. Develop a simple time log where you will re-cord what you are doing over the course of two weeks. You can use the same categories from step one if you like or you can create some others. The important thing is to get an accurate picture of how you spend your

time now. Where you spend your time is a direct reflection of your priorities. Are you spending your time on the things that will help you achieve your goals?

Plan your day and schedule your day, again in writing. What is the difference? Planning is deciding, in advance, what you will do in a given day, week, or month. Sched-uling is determining when you will do it. Too many people begin their day or their week with no real idea of exactly what they want to accomplish and when. Writing it down has two great benefits. First, it creates a sense of urgency in your subconscious. Because you have written it down, you believe that you need to get it done. Second, it gives you a chance to pat yourself on the back when you cross it off the list. Are the things you are putting in your plan and schedule contrib-uting to reaching your goals? If so, great! If not, you may want to consider eliminating them from your list.

James Bain, is an author, speaker, consultant, and coach. He is the founder of the Falcon Performance Institute, a consulting and corporate training firm focused on productive performance. For further information visit www.fpiteam.com or call (352) 854-4015.

http://www.fpiteam.com

Economics 101


Make the most of slow time. There are at least two categories of slow time. The first is when you are not at your peak performance level. Maybe this occurs right after lunch or maybe you are just not a morning person. Schedule easier tasks for these times. These

are good times to respond to emails, sort through your mail and return phone calls. The really tough projects need to be sched-uled when you are at your peak. The second category of slow time includes waiting time.

Waiting for a doctor’s appointment or com-muting on the train are examples. Always have something to do; have trade journals to read, expense reports to complete or re-ports to review. Think of all the little, but important, things you can get done during

this slow time. An interesting side benefit is that all of a sudden, it seems as if you never have to wait for a doctor or dentist. When you have something to do, they always seem to be running on time.

Create and maintain a controlled sense of urgency. Orchestra leaders, football quarter-backs and airline pilots all have it. They are not in a hurry, but they are committed to ev-eryone starting and stopping at the right time. There is a sense of urgency that everyone must buy in to. The people with whom you work and play will sense it and take their lead from you. You are someone who is in control of your time and in control of your life.

These are old rules but they apply to to-day’s new game. Doing more with less is not only possible, it is required in today’s econo-my. As we learn to make better choices with our time, we achieve more control over our lives. We can better balance our work time, our play time, and our rest time. We can re-lieve pressure and stress and maybe even go home from work on time. You have time to do the things you choose to do. “I do not have time” is a lie!

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Learning Curve

Designed to act as a tool kit for eliminating the damaging “enti-tlement culture” that can domi-nate today’s workplace, Owner-ship Thinking presents tips on how to motivate employees to take ownership of their work and perform as stakeholders in the business.

The six-step program, out-lined in the book, transforms employees from average wage-seek-ers into top-performing talent who operate with the understand-ing that they have a stake in the company’s success.

Ownership Thinking outlines the three basic components of author Brad Hams’s process to help eliminate a “me-thinking”

attitude of entitlement in employees, which the author calls insidi-ous. It teaches business leaders how to: educate their employees on the fundamentals of business and finance (how they add or take away value); identify the business key performance indica-tors; and, create incentive plans that align employee’s behaviour with the business objectives.

According to the author, companies that practice Ownership Thinking are the best in class, enjoyable places to work, highly profitable, and retain employees at a 200% better rate than com-panies that do not, according to research statistics.

Targeted at business leaders in virtually any industry, the pro-cesses outlined in Ownership Thinking have been practiced in hundreds of successful businesses, but have proven especially use-ful in small-and mid-sized companies. Both books are currently available from www.amazon.ca and www.chapters.indigo.ca.

OWNERSHIP THINKINGMcGraw-Hill

Just as a plane is designed to fly through thunderstorms without crashing, businesses must be designed to function in good times and bad. That is the crux of Design for Operational Excellence from McGraw-Hill.

In the book, consultant Kevin Duggan outlines a complete strategy for implementing smart design and operational excel-lence at any company. Design for Operational Excellence pro-vides the design criteria and principles that will enable business operations to grow organically.

Designed to promote endless business growth, Duggan intro-duces a continuous improvement program that will yield more bottom-line business results and adapt to changing markets and customer needs rather than react to them. Based on eight key principles, managers and employees learn how to implement a continuous flow of value into any operation through Duggan’s clearly outlined plan. According to the publisher, smaller com-panies can see a significant jump to true excellence in a matter

of months (while Fortune 500 companies will see one in one to two years).

Case studies illustrate how companies applying the methods grew consistently over time by de-signing and implementing a lean flow of product to the customer in every type of business. Design for Operational Excellence aims at providing readers with the tools needed to best provide customer solutions in a changing market, which will lead to profit and growth even during severe economic and market downturns.

The author is founder and president of Duggan Associates, an educational and advisory firm that specializes in lean train-ing and creating operational excellence. He is also the author of Creating Mixed Model Value Streams.

DESIGN FOR OPERATIONAL EXCELLENCEMcGraw-Hill

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Feature

WORKFORCESTRUGGLESCanada’s construction industry needs a new generation of employees. Is your workplace ready to greet them?

BY JOHN G. SMITH


Feature

Canadian contractors are beginning to show their age. The average construc-tion worker is now in his early 40s, and

the first wave of the industry’s Baby Boomers is approaching retirement. To compound mat-ters, the construction industry’s unemploy-ment rate is by some estimates expected to drop as low as 6% in the next decade, making it even harder to fill the job openings to come.

“When you look at our expansion and ag-ing demographics, we are going to be back where we were in 2008, struggling to find the workforce we need,” Construction Sector Council executive director George Gritziotis said earlier this year.

The scale of this struggle can seem daunt-ing. The Canadian Apprenticeship Forum expects the industry will need to replace about 320,000 workers over the next decade. About half of the openings will be filled in traditional ways, whether it is through ap-prenticeships or the movement of workers from one region to the next, but the bigger challenge will be finding candidates to fill the 157,000 positions which remain.

They are facts that all point to the need to attract a new, younger generation of workers.

“It is going to be an incredibly com-petitive labour market,” agrees Rosemary Sparks, senior director of planning and de-velopment at the Construction Sector Coun-cil. Quite simply, contractors will face more competition from employers who have other types of work to offer. “Construction is not the only industry to be getting older. Every-one is. As we move this Baby Boom genera-tion toward retirement, everyone is going to need to be attracting young people.”

The challenge involves more than the fate of a single company. This is a project-based industry, she adds, referring to the way contractors can work across multiple jobsites. “There needs to be a pool of people in the industry that companies can draw on to manage their projects. They have an over-all role in the industry to be part of making sure that we are training the next generation of construction workers.”

This will require a greater focus on pro-grams that reach out to the youngest work-ers of all.

The effort begins with co-op placements, Sparks suggests. “We need to get to young people earlier and earlier to help them with

their career decisions and expose them to everything that is available.” Initiatives like the Toronto District School Board’s Con-struction Trades Exploration Program, for example, often provide younger workers their first exposure to the world of contract-ing and what it can offer.

“At best, young people tend to know what a carpenter is, what an electrician is and maybe a plumber, but there are many, many other trades available, and this gives them the chance to see them all,” she says. “They have got to see it and feel it to experience it.”

The Toronto program is offered as a successful example because of the way it prepares students for the workplace. In ad-dition to providing vital safety training, it ex-

poses participants to different union locals who provide hands-on training, as well as classes at George Brown College where they receive pre-employment guidance.

Employers who want to get the most out of any co-op initiative need to be engaged in the process and assign someone to manage the program, Sparks says. The advantage is that the added focus can lead to a positive experience, often leading to summer jobs and future careers.

Apprenticeships are the natural ex-tension of these efforts. Several common themes have emerged in research exploring the secrets of a successful apprenticeship, says Sarah Watts-Rynard, executive director of the Canadian Apprenticeship Forum.

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Feature

“From the apprentice side, their number one need is to have a successful relationship with their journey-person, with their mentor within the workplace. They want to be appreci-ated. They want to be given a range of different jobs to do. They want to be given the opportu-nity to learn,” she says. “They are going to make mistakes and they are going to hit obstacles, and it is going to be helpful to have someone who can say, ‘Hey, I know what you are going through. Here is how you fix it.’”

The role of mentors and coaches is important to the process that the Construc-tion Sector Council has developed training in the related skills. “You cannot assume that someone who is a really good trades-person, or a qualified journey-person, has the skills, knowledge and ability to trans-fer that effectively. We really need to give them the skills to do that,” Sparks says. Watts-Rynard agrees. “It is not just bringing in someone and saying, ‘This is the person

I want you to mentor,’” he says. New ap-prentices seem to have the best chance at success when staff members are informed about who will be joining the team, what the work environment needs to be like, and how the apprentice will be supported. Employ-ers also need to be prepared to invest in the block release time and schooling.

Those who take the time to understand what resource materials are available, and what an apprentice’s competencies include, will be in the best position to plan training materials and ensure all the required skills are being taught.

New apprentices should even be in-formed about common workplace practices, such as the need to show up on time, respect co-workers and demonstrate a positive atti-tude. “It is an important thing to say, some-times, that there are expectations beyond what we owe you in a paycheque,” Watts-Ry-nard says. “Sometimes you are going to have

to roll up your sleeves and do something you do not think is important, but will help the business, and help your co-workers.

“When you are out of the school system, you forget that what was OK in high school or what was OK in some part-time jobs in the ser-vice industry are not OK when you are building a career and a reputation with your employer where you intend to make a career.”

Still, any apprentice needs to be identified as the right fit for the corporate culture, com-plete with a vision of how they can serve an employer. “There is a commitment that goes both ways, and I think to have an employer and apprentice who are on the same page from the beginning makes for a more successful ap-prenticeship,” Watts-Rynard adds.

Of course, those who balk at the idea of hiring apprentices tend to echo a com-mon concern: What if the apprentice simply leaves to work at a competing company after all the extra training?

The role of mentors and coaches is so important to the process that the Construction Sector Council

has developed training in the related skills.

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This mindset may work in an era of dou-ble-digit unemployment rates, but it needs to change in the face of the aging workforce. “You are not going to be able to just say ‘I am not going to bother training people because I know that there are other people who will come along that I can poach,’” Sparks says.

Besides, a new apprentice can offer much more than an extra set of hands.

The new generation of workers will play an important role in transferring the knowl-edge held by aging employees. Rather than asking someone to write procedures in a manual, the process presents the chance to convey every nuance behind a task.

A journey-person who enjoys being a mentor will also tend to be more engaged in their traditional jobs. “It is nice to be able to share your expertise with somebody, and I think that it makes for a different kind of

workplace,” Watts-Rynard explains. They are also more inclined to watch their own work habits when demonstrating different tech-niques. “That makes for a safer workplace. That makes for fewer mistakes.”

There is even a clear financial return on the investment, according to the Canadian Apprenticeship Forum’s study of 16 trades in 2009. For every dollar invested during an apprenticeship, a bricklayer returned $1.33, a construction electrician returned $1.49, and a plumber returned $1.39.

This is after investments which include everything from wages to benefits, the journey-person’s time and other costs such as administration time.

“It does not matter how big or small your company is. It does not matter if you are in PEI or Alberta. There was a similar return on investment,” Watts-Rynard stresses.

The returns continue as wages begin to rise, since young workers’ skills improve with more time on the job.

Related costs of apprenticeship pro-grams can be partly offset through Employ-ment Insurance funding, tax credits and completion grants. The federal Apprentice-ship Job Creation Tax Credit, for example, offers a non-refundable tax credit equal to 10% of salaries paid to eligible apprentic-es, to a maximum of $2,000 each. (Details about more financial support are available at www.apprenticeshippays.com.)

Those who have a positive apprentice-ship will also enhance a company’s reputa-tion as an employer of choice, helping to re-cruit yet another group of apprentices and lower future recruiting and retention costs.

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The smart contractor always makes sure to determine what type of surface will be painted on and what sort of use that surface will be subjected to.

BY NESTOR E. ARELLANO

SURFACEBeyond the standard alkyds and

latex, a host of specially-for-mulated paints have been de-veloped for specific surfaces and service.

In order to help a client determine what sort of paint should be used on their property, smart contractors always first make sure to inspect the type of surface to be painted on and to what use and abuse it will be subjected. Some paints will stick better and produce a better coat on certain surfaces than others. Other paints are for-mulated to resist stains, or scuffing, or mil-dew, and some products are best for hiding imperfections or damage.

Each year paint manufacturers bring out a wide array of colours and finishes in varying degrees of formulation, says An-drea Colman, principal designer and own-er of Fine Finishes, a Toronto-based design and decorating company.

It is impossible for any painting contrac-

tor to keep track of the new products from every manufacturer, says Colman. “That is why most contractors are likely to have a couple of favourite brands and stick to a few product lines from that manufacturer,” says the designer and colour consultant who was once a painter herself.

Painting contractors also need to be up-to-date with the latest regulatory changes regarding paint product formulation, says Andrew Fedele, technical services manager for Para Paints. “Manufacturers are under increasing pressure to reduce the volatile organic content (VOC) of their products.”

For instance, according to Fedele, paint makers in North America have only until 2013 to ensure their products have only 250 grams per litre of VOC. Higher concentration of VOCs are often found in oil-based or alkyd paints. “There are rules that stipulate that high VOC paints should only be used for certain applica-tions,” he says.

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Paint types available in the market today include:

Latex – Latex paints contain rubber or an-other type of resin and employed water as a sol-vent or “vehicle” for the paint. This paint is also called “water thinned” or “water reducible.”

Latex paint dries up fast, but is easy to touch up. Moisture easily escapes, so crack-ing is prevented. Latex is easily washed off tools and brushes, although the paints dry to a durable and washable finish.

This paint adheres well to surfaces pre-viously painted with latex or flat oil-based paints. It can be used in un-primed drywall or unpainted masonry. It has a tendency to slip off high gloss finishes. Its water content could peel off wallpaper, rust bare steel and raise the grain of raw wood.

Alkyd or oil-based – These paints use syn-thetic alkyd as resin and are solvent thinned. This makes the paint thick allowing a brush or roller to carry more of the paint. Its opac-ity gives alkyd paints a high hide quality.

Alkyd paints come in gloss and semi-gloss sheens and are ideal for high traffic areas such as kitchens. The paint is also typically used in bathrooms because the alkyd and solvent combination help resist mildew and moulds. Most alkyds dry within six hours.

Alkyds will raise the nap of un-primed drywall. This paint is also not recommended for un-primed masonry. Many alkyd paints are now odourless but they may still be toxic and flammable.

Rubber-based paint – The liquified rubber in this paint makes it ideal for waterproofing concrete. Surfaces painted with rubber-based paint needs to be sealed with a coat of varnish for extra protection. Concrete needs to be

washed with a 10% solution of muriatic acid, rinsed thoroughly and dried before painting with rubber-based paint.

Textured paint – Textured paint can either have sand-like granules suspended in it or come as a thick stucco-like substance that is applied to a surface and textured with special tools. This paint is ideal for painting over ceilings and flawed surfaces, or to hide seems between sheets of drywall.


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Dripless paint – The thick formulation so-called dripless paint is to prevent spatters when working with this paint.

One-coat paint – The additional pigment on one-coat paints are meant to enable this paint to cover surfaces with a single coat. One-coat paints are available in latex and alkyd.

Acoustic paint – This type of paint is de-signed to colour over acoustic tiles. The paint itself has no sound deadening properties, but it is formulated so that it does not completely cover the fibrous and textured surface of the tiles that help it absorb sound. It is advisable to use a sprayer to apply this paint.

Primers – A primer is the inexpensive un-dercoating used to smooth out uneven sur-faces and to serve as a barrier between po-rous surfaces and a new coat of paint.

Contractors need to pay special attention to the primer that they use, says Pooran Bish-ram, product specialist, Dynamic Paint Prod-ucts, manufacturers of painting parapherna-lia and distributors of various paint products.

“The main job of a primer is to seal the surface and to ensure that the top coat ad-heres to the surface. In this sense the primer can spell the difference between a good or awful finish,” Bishram says.

A latex primer has the qualities of a latex paint. This odourless and quick drying formu-la is ideal for drywall, plaster and concrete. A primer such as Rustoleum’s Zinsser Primer, says Bishram, is ideal for soft substrates. “This prod-uct works well on concrete tiles or drywall and can be topped by oil or latex paints.”

Surfaces that are heavily flawed (or dam-aged by fire, smoke or water) definitely need to be sealed before being painted over. A heavy high-hide sealer such as XIM 400 is formulated to bond and seal a wide variety of surfaces including: wood, ferrous and non-ferrous metals, plaster, Formica, some plas-tics, glass, tiles, fibreglass and hardboard.

A latex primer, though, can rust bare metal and raise the nap of raw wood. Latex primers are also not advisable for surfaces such as stucco because these surfaces are water-based. A latex primer might loosen the stucco, Fedele says.

For this type of application an oil-based primer such as Para Alkyd is the best bet.

Colour trendsThe world of interior décor continues on

its nature trip, Colman says. “Browns, greens, water hues and soft tones remain popular as the consumers’ love affair with all-things environmentally friendly continues.”

Although 2009 and 2010 were characterized by ultra dark brown wood colours, Colman says, this year is being defined by lighter tones.

“Think maple or bamboo rather than wenge wood,” she advises.Designers and decorators regularly attend events where the upcoming

year’s trends are spelled out, but how can busy contractors find out what colours will be in vogue?

Colman says painting contractors can consult design and décor magazines for colour trends. She also recommends that contractors be on the look-out for

paint manufacturer events where they introduce their upcoming products.“If your business does not have a colour consultant, one of the best ways

to go about it is to network with a decorator or designer,” Colman says. “These experts can provide pointers to contractors and can also discuss

colour options with your clients.”Forming a formal or informal partnership with a designer could also prove profitable, she says.

“A designer will always refer a good contractor to their clients.”


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Prep makes perfectMany paint jobs fail because of poor prep work, according to George Zarogiannis, owner of Eco Painting Inc., a residential and commercial painting firm from the Greater Toronto Area.

“When done right, the payback on a proper prep work is a lasting top quality job that will earn you repeat contracts and rec-ommendations,” Zarogiannis says.

Generally, prep work includes: cleaning or washing the area or surface to be paint-ed; scraping and sanding to remove old paint and imperfections; removing nails and screws; caulking gaps or fissures and rebuilding rotten or deteriorated portions of the surface; taping off areas and apply-ing primer.

Beyond this, contractors also need to think about other practical matters, says Zarogiannis.

For example, if the property to be

painted is a commercial or corporate en-vironment the contractor needs to coordi-nate with the owners an ideal work sched-ule to not interfere with the location’s daily operations.

The proximity of the area to workers or children might also have a bearing on the type of paint that will be used. For instance ultra-low VOC paints would be appropriate for areas being used by children and em-ployees in an office would probably appre-ciate it if painters used odourless products.

When working in a commercial or office setting, contractors should also determine who will be moving equipment that may be in the way.

A thorough inspection of the area before the job commences will also give you a heads up of what equipment you would need for the job. For instance, some office spaces might re-quire a contractor to set up a scaffold.

Estimating job cost: Many contractors estimate a job using the general rule that a gallon or 3.7 litres of paint will cover an area of 400 to 450 square feet (or a 10’x15’ room) with one coat of paint. “While reliable on many occasions, relying solely in this system could get you in trouble,” says Zarogiannis.

Fedele of Para Paints agrees. He says it is best to see the blueprint of the job and physi-cally inspect the place.

Closets, stairs and odd corners can easily mean additional surfaces to be painted.

Contractors should also keep in mind that some surfaces tend to eat up more paint than others and previously painted surfaces may require more prep work because the old paint needs to be scraped off.

“Failure to take these into account during your costing could mean that you will absorb the additional cost later on,” says Fedele.

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SHINING A LIGHT ON

SOLARGovernments across Canada offer incentives for solar-power projects, but the market is far from stable.

With a number of provinces devel-oping programs that reimburse people for installing solar-power

electricity systems on their houses and busi-ness buildings, the time might be right for contractors to ramp up their solar-power

expertise. It is also important to bear in mind that this young market is still in flux, and there are certain risks that come with the territory.

Ontario’s Feed-In Tariff (FIT) and microFIT programs (for solar-power sys-

tems generating more than 10 kilowatts, and those generating 10 kW or less, respec-tively) may be the highest-profile incentive programs in the country for both good and bad reasons. The programs invite people to connect their solar-power systems to the

BY STEFAN DUBOWSKI


POWERGovernments across Canada offer incentives for solar-power projects, but the market is far from stable.

provincial electricity grid; property owners receive 44 to 80 cents per kilowatt-hour in-jected into Ontario’s power infrastructure.

As a result, solar energy is a hot topic across the province, with homeowners and business operators looking to cash in on the opportunity.

Unfortunately, the program has also come un-der fire from critics who say it has not been man-aged well, that Hydro One (the organization managing Ontario’s electricity grid) has been too slow to connect solar-power systems to the province’s infrastructure, causing a glut of solar

panels and associated hardware on the market.Despite the growing pains, solar is get-

ting plenty of positive attention as well, and not only in Ontario. Nova Scotia and B.C. are expected to unveil programs similar to FIT in the near future.

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Inverter advancements: What is the best way to ensure optimal production? The in-dustry is turning its attention towards the inverters that con-vert the DC from the panel into electricity-grid-friendly AC.

Most property owners use string inverters (single devices that collect energy from mul-tiple panels). String inverters are well proven and considered to be durable, yet they also op-erate as a sort of bottleneck in the system. For example, even if just one so-lar panel is in the shade, and the rest are in full sun, a string inverter will only convert power at the rate that the shaded panel al-lows. Moreover, if a panel malfunctions, it can be relatively difficult to pinpoint the

problem in string-inverter systems.An alternative is the micro-inverter; a

smaller inverter designed to connect to pan-els one-to-one.

Micro-inverters help improve efficiency. If one panel is shaded, its lower output only

impacts the inverter directly attached to it, instead of the entire system. Plus, it is easier to identify problem panels, because perfor-mance of individual inverters mirrors the performance of the accompanying panels.

Montreal-based Matrix Energy Inc. recently started offering the Enecsys mi-cro-inverter here in Canada. Designed in England, the device employs patented tech-nology developed at Cambridge University. The Enecsys does not use damage-prone opto-couplers (electronic devices designed to balance voltages in a circuit, protecting components in the circuit), so it is more reli-able, Matrix says. As well, the electrolyte ca-pacitors, which store the electric charge, are replaced by thin-film capacitors that can op-erate at higher temperatures and last more than four times longer.

Brian Wilkinson, president of Matrix, says his company started importing the Enecsys micro-inverter because unlike others that he has seen, it is robust enough to withstand the changeable Canadian climate. At 75¢ per watt, the Enecsys is less expensive than other micro-inverters ($1 per watt), but it is still more expensive than your average string inverter (50¢ per watt). Still, for people seek-ing optimal energy flow the micro-inverter is superior, Wilkinson says.

Case study, Waterloo:The Region of Waterloo in Waterloo, Ont. uses string inverters in its solar-power sys-tems. Reliability and price trumped produc-tion efficiency for this regional government.

“The (micro-inverter) technology is newer and it is not proven to the extent that the string inverters are,” says Gary Sosnoski, com-missioner of corporate services. “The cost ad-vantage also fit well within our business case.”

The 806-panel, 170 kW array that the organization is installing on the roof of its Cambridge, Ont. operations centre will cost more than $17 million once all of the pieces are installed. Yet Waterloo still stands to come out some $4.7 million richer at the end of the 20-year FIT project. Sosnoski pointed out that while the region gets 71¢ for each kW it generates, it only pays 11¢ for each kW used.

That brings us to an important detail: solar-power projects connected via FIT to the

How solar works: Solar-panel systems consist of photovoltaic (PV) cells, solar panels, arrays, inverters, and sometimes batteries. PV cells absorb light from the sun, transforming the light into energy. A solar panel consists of many PV cells; an array consists of many panels. Inverters convert the direct-current (DC) power from the array into the alternating current (AC) commonly employed in homes and businesses.

Deep-cycle batteries usually con-sisting of lead acid or nickel cadmium store energy for use later, but batter-ies can be expensive (more than $100 each, and property owners looking to reduce their reliance on traditional electricity would have to buy many of them to service a home or business). Batteries also only last three to four years, which means property owners would need to replace them seven or eight times over the 30-year lifespan of the accompanying solar panels.

Solar-power systems are not

particularly efficient. Panels usually manage to convert less than 20% of the light that hits them into electric-ity. The orientation of the panels plays an important role in efficiency. Panels arranged such that the sun hits them for as long as possible generate more electricity than those in shade.

Regardless of the efficiency is-sue, and the battery limitations, solar power is growing in popularity. As Sean Moore, co-founder of Windsor, Ont.-based panel manufacturer Un-conquered Sun Solar Technologies Inc., points out, people participating in feed-in tariff programs, like Ontario’s FIT, do not need batteries, because energy storage is not the point.

“You are only concerned with pro-duction,” he says, explaining that the more electricity that an installation generates, the more money the owner gets from the government. FIT con-tracts last for 20 years, he says.

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Ontario electricity grid are largely designed to produce power, not store it. Even though Waterloo’s new solar array generates enough electricity to cover 10% of the operation cen-tre’s power needs, none of the electricity the array develops will go directly to the operations centre. Instead, all of the solar power generat-ed will feed into the provincial electricity grid. Waterloo will still use electricity from the grid to power its operations centre.

At least, that is the plan for now. As Sos-noski notes, when the 20-year FIT contract is finished, the region could choose to redirect the energy that its solar-power system is gen-erating and connect it directly to the opera-tions centre, reducing the region’s reliance

on the electricity grid.“I think one of the reasons why the prov-

ince is doing this is that the cost of transmis-sion, particularly when you have to replace high voltage transmission lines, is very ex-pensive,” Sosnoski says. “The more you can decentralize the power generation the lower your distribution costs would be.”

The province’s system is not perfect. Sos-noski says the application process with the Ontario Power Authority (OPA) is long and involved with numerous steps and approvals required. Plus, it has not been easy to find companies willing to do the installation work.

“We have actually had trouble getting a lot of bidders,” he says. “Bond requirements

are a bit onerous for some; there is so much work out there now for this sort of thing that a lot of the people that are installing are full-up. We are not getting a dozen people bid-ding. In fact on the last tender we only had one qualified bidder.”

Growing pains That suggests the market is ready and willing for solar-power system installation experts. Moore from Unconquered Sun says the situ-ation is not so cut and dried. Unconquered Sun markets a high-efficiency, low-weight panel that Moore figures should sell well across the country, but while customers are interested and the market is raring to go, the provincial government has been so slow to connect solar projects to the electricity grid that panel manufacturers have had to reduce production, he says.

Meanwhile solar-power systems that are up and running are idle, waiting for the provincial connection. “Think of all that free energy we are wasting as each day goes by,” he says.

Hydro One did not respond to a re-quest for comment, but in July the OPA an-nounced that it is offering contracts to 25 new large-scale renewable energy projects (19 wind power, six solar power) provid-ing enough electricity to power more than 280,000 homes each year.

What does this all mean for contrac-tors? Chances are the market will generate even more interest in solar-power systems, which indicates that if you have not con-sidered doing so before, this might be the time to investigate panel and inverter pro-viders to see which ones offer the best tech-nology for your customers. Stay abreast of developments at the OPA and Hydro One to get a sense of the pace of connections, and watch for developments in B.C., Nova Scotia and other provinces for potential market opportunities.

Location Size Price ¢/kW/h Rooftop <250 kW 71.3Rooftop 250 kW – 500 kW 63.5Rooftop >500 kW 53.9Ground <10 MW 44.3

Ontario microFIT program prices (for solar-power systems generating 10 kW or less)

Location Price ¢/kW/hRooftop 80.2

Ground 64.2

Ontario FIT program prices (for solar-power systems generating more than 10 kW)


How To

Low-E coatings, insulated glazing and inert gas, window tech in this decade is about more than just how it opens and closes.

BY DAVID CHILTON


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Whether he is working on new con-struction or a renovation, what does a contractor want when it

comes to windows? Allan Doyle, general manager of Global

Windows Solutions, has the answer. “As a con-tractor, you want two things. You want a window that is easy to install and also you want to walk away from it and not worry that it is not going to perform.”

A simple enough summation, but just below the surface of Doyle’s statement are some matters that need consideration. Take the types of windows available: those that open and those that do not. The former is called operable and the latter is called fixed.

So far; so good. Still, while the fixed

window is an easily understood product, the operable window is more complicated. There is the horizontal slider, the vertical slider (which can be either single- or dou-ble-hung), the hopper, the casement and the turn-and-tilt. All perform a different way in different locations. As well, the fixed and the operable window have varying character-istics. Fixed windows offer better air tight-ness and the most safety and security, and contractors would do well to use as many of them as building codes allow. There are two ways to seal operable windows to mini-mize air leaks, either with a compression or sliding seal. Broadly speaking, windows with a compression seal are more airtight and should be the window of choice and the gas-ket on them should be neoprene.

Moving on from what these windows are, to how they are made, means further compli-cation. Every contractor knows about single, double or triple glazing, but do they know

that Natural Resources Canada says all win-dows should at least be double glazed, and that now most windows incorporate sealed insulated glazing? Should moist air get be-tween the sealed air space condensation may result, a defect usually caused by a faulty seal and which cannot be corrected except by replacing the entire insulated glazing unit. Further advice from Natural Resources Canada concerns spacers: it says traditionally they have been made of aluminum, but they are a significant source of heat loss because of it. Thus, the best spacers are made from non-metallic materials or are hybrids of me-tallic and non-metallic.

That is some of the ‘what’ of windows, but there is also the how, as in how they per-form. In the last ten years high-performance windows, sometimes called energy windows, have come to the fore, producing better results than ever; however, they too are not without the potential to leave contractors in

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How To

a bind, since the technology can get compli-cated quickly. Not so long ago standard glass allowed the sun’s energy to pass through it during the day and just as easily let it pass back out at night. This is called radiative heat loss or high emissivity. When energy was cheaper it did not matter so much, but much higher energy costs led researchers to develop, low-emissivity (low-E) coatings. This low-E coating is an invisible metallic layer just atoms thick applied directly to glazing surfac-es. With the double glazing typical in Canada it is usually pasted to the exterior face of the interior glazing, and works in a unique way. Low-E is transparent to short wave solar ener-gy but opaque to long wave infrared energy, meaning that it allows most of the sun’s solar spectrum to pass through the window, but the coating reflects most heat energy from room temperature objects back to its source. In winter that means it keeps the heat in and in summer keeps the heat out.

A low-E coating on a single pane of glass can give a window an insulating value that is about the same as a standard triple glazed unit but without the added weight of a third piece of glass. This means less weight and less wear on the window’s mechanics such as hinges and thus they will last longer and are easier to operate. As well as the heat gains and lower heat losses achieved with low-E coating, it comes with a third advantage: fewer UV rays make it through the window so carpets and fabrics fade less. Despite the generic name applied to them, all low-E coatings are not the same and so perform differently. Generally, Northern low-E coat-ings are best choice for a Canadian climate since they maximize heat gain from the sun during the day and minimize losses at night.

The second significant advance in tech-nology has been the inert gas fill inserted be-tween the panes of glass. Argon and Krypton are the gasses of choice, with argon being the most commonly found, if only because it is the cheaper. Krypton provides a slightly better performance and allows smaller spac-ing between panes, about 8mm, allowing multi-pane systems with less chance of stress breaks. Irrespective of the gas used, both work on the same principle: the gas reduces conduction and convection heat loss. Once low-E coatings and argon and krypton have worked their apparent magic, there is a fur-

ther way to conserve energy with the use of a low-conductivity spacer at the perimeter of the window. Most were made of hollow aluminum and highly effective at heat con-duction. Now, though, much newer mate-rials are on the market, and although per-formance varies depending on the material used, these spacers can improve the energy performance of low-E, gas-filled windows by as much as 20%.

Given the facts of how windows work, and that whether used in the bedroom, kitchen, doors, skylights or patios, the fundamentals remain the same.

How does a contractor sort through this pile of information? He turns to Energy Star. Doyle, who is based in Richibucto, N.B., says, “Energy Star is the gold standard from an en-ergy standpoint. Energy Star gives you a good average answer for the region you may be in.”

That is an opinion shared by Lisa Bergeron, government relations manager for Canada at Jeld-Wen Windows and Doors, based in Que-bec City. She says, “If energy is it, then look for Energy Star. There is a validity to the numbers that are there. From every point of view, En-ergy Star is certainly the most reliable rating.” It is a joint program of the Department of


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Energy and the Environmental Protection Agency in the U.S. Certification from Energy Star can only come following testing by an independent third party. The key marker for windows is what is called the U-Factor. It is a measurement of the amount of energy a mate-rial can conduct. Energy Star ratings measure solar heat co-efficients, air leakage and heat loss. Beyond that, Energy Star rated certified windows must carry a National Fenestration Rating Council label signifying the insulating qualities of the entire window; be 40% more efficient than building code requirements; and reduce energy bills by up to 15%. Energy Star labels its windows three ways, with “N” for northern climates, “S” for southern and “C” for central. The N window is recommended for all of Canada. A fortunate side effect of using the high performance window is that it helps reduce noise. Doyle says, “There is a standard for noise reduction. Most people do not have their windows noise transmis-sion rated. It is more common in commercial buildings.”

Traditionally, window frames have been made of wood, but such materials as vinyl, fibreglass and wood composites are far more popular because they have better insulation qualities. “There is not a lot happening on the frames side,” says Doyle. “Composites are taking over from wood.” Again, Bergeron shares the same opinion. She says hybrid materials are becoming more and more popular. The reason for that is colour, she explains, since they lend themselves to a far greater range and durability. “A lot of build-ings have had bad experiences with painted

vinyl and the hybrid was invented to counter that,” Bergeron says. Still, better windows and better frames will not mean much if they are not installed correctly. To this end, Doyle says Fenestration Canada is financing a CSA program that will certify contractors as quali-

fied to install windows. The exam takes two hours to write and is now in beta testing. The full launch begins this fall.

Also upcoming is a new federal Eco En-ergy program for householders worth $400 million to pay for windows, doors, insulation and so on. Bergeron says the financing has been released to Natural Resources Canada “It will be similar to a previous program for retrofitting existing homes,” she says. There are no federal programs for new construc-tion, but she points out there is provincial help such as Quebec’s Nouveau Climate initiative promoting energy efficiency. Fur-ther changes that can be anticipated is a new National Model Energy Code for Small Buildings, to be introduced at the end of next year, says Bergeron, with the new large building code expected this year. New Ener-gy Star criteria will come into force in 2014. These changes are code-driven, Bergeron concludes, and helped along by the rising cost of energy.

How To

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The upward climb to greater energy efficiency requires contractors to be an expert in more than simply just the installation of insulation.


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Changes in national and provincial building codes are creating more op-portunities for the savvy contractor

who specializes in insulation.The continued evolution of energy-effi-

ciency requirements in the codes will force both new home builders, and existing ho-meowners intent on eventually selling their property to look more closely at insulation advances, experts say.

In 2006, the Ontario Building Code led the way in energy-efficiency efforts by man-dating that new homes built after 2011 meet EnerGuide 80 levels. That means that all new homes built in the province starting next year will need to be approximately 35% more en-ergy efficient than those built before 2006. This is good for the insulation business and for comfort-seeking homeowners, and only the start, say insulation manufacturers.

“One of the biggest things happening in the industry today, both in new homes and renovation is the direction of where build-ing codes are going across the country,” says Andy Goyda, market development manager at Owens Corning Canada. It is a state of continuous momentum. For example, the EnerGuide 80 level soon demanded by the Ontario Building Code is the equivalent of the current EnergyStar standard. “Then in 2012, EnergyStar will take a 25% leap over the Code and R-2000, which is the pinnacle of energy efficiency in Canada, is going to jump by 50%,” Goyda says.

According to Goyda, dramatic leaps will continue to occur in five-year building code cycles. By 2030, both federal and provincial governments will use EnergyStar and R-2000 as the platforms to promote net zero-energy building (ZEN).

“Every five years you are now going to see a substantial jump in energy efficiency de-scribed in the Code. It is not going to be like it was in the past, where the codes basically stayed the same or just increased slightly,” he says. “These are going to be significant changes that will really impact the renova-tion market.”

In addition to helping meet the building mandates, homeowners are looking for more energy-efficient options and insulation plays a big part in an eco-friendly home, according to Ron van Pelt, vice president of Canadian sales at Guardian Building Products.

He points out that, with existing homes, in-sulation can be the easiest way to try to upgrade homes to be closer to new energy standards.

“Insulation is always going to be top of mind, because energy is never going to get cheaper, so homeowners are looking for op-tions to upgrade their existing homes,” says Van Pelt. “The housing stock in Canada is aging; a lot of the homes were built prior to 1985 and are nowhere near the standards now, because the codes have changed so much, and the energy costs have increased so much in the past 25 years.”

He says even homes built during the last

boom years, although well built, fall far be-hind current expectations: “There is a lot of creativity coming in terms of how to address new expectations and you have to do it in an economic fashion, because there is a thresh-old that both builders and consumers will hit,” he says of insulation and other energy-efficiency products.”

Fibreglass insulation continues to be a popular choice to helping meet those needs, van Pelt says, thanks to continued improvements in the products, increased R-value, and more eco-friendly production and shipping methods.

By 2030, both federal and provincial governments will use EnergyStar and R-2000 as the platforms to promote net zero-energy building (ZEN).

www.makita.ca


Feature

Contractor AdvantageIn the next issue of

• Ceilings • Wood Moulding

Design• Leed 2012:

Look ahead • Drywall • Interior Doors

A holistic approach: Still, beyond increasing the demand for in-sulation with higher R values (the measure of their thermal resistance) this upward climb to greater and greater energy effi-ciency requires contractors to be an expert in more than simply just the installation of insulation. As homes become more energy efficient and air seals become tighter, a greater understanding of building science is required of the contractor, says Goyda.

“If renovations are going to be air tight, or relatively air tight, then how is the rest of the house going to be effected by that?” he asks. “If I improve the energy efficiency of the home and seal it so there are only two air changes per hour (ACPH), for example, what is that going to do with the furnace?”

Contractors installing insulation must look at the house from a perspective of holistic health and energy efficiency. “The renovation contractors have to become very familiar with building science: controlling heat flow, airflow

and moisture flow,” Goyda says.For example, in a house insulated to R-30,

with an air change rate of 2.5 ACPH (the thresh-old for EnergyStar), contractors must recognize the need for a mechanical way to cycle fresh air into the house and remove the stale. R-2000 val-ues are even stricter, requiring a 1.5 ACPH.

In addition, a highly-insulated home with few air changes can become so energy effi-cient that typical furnaces cannot properly support their minimal needs. Only recently have furnaces supporting such energy-effi-cient homes hit the market.

All elements need to be considered and

incorporated into renovation and building plans, but, at the same time, this is also a good opportunity to grow business for con-tractors who can go beyond traditional ex-pectations of the insulation install.

Most contractors who install insulation know how to do it well (not to pack it too tight-ly in the wall, for instance), and not all have yet built up the requisite business communica-tions skills to go further. Renovation contrac-tors who improve their communications with clients, who step up and present options for comfort and energy efficiency during other renovation projects, and who understand the

Typical Energy Efficiency Ratings

Type of House RatingNew House built to building code standards 65-72

New house with some energy-efficiency improvements 73-79

Energy-efficient new house 80-90

House requiring little or no purchased energy 91-100

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Feature

larger building science of the home, will find success over their competition.

“There is a new wave of home buyers for whom efficiencies and home comfort are paramount,” says Marty Hawthorn, market development manager, at Johns Manville. “It is about home comfort, and energy savings, but it is also the quietness of the home.”

The sound of silence: One of those new comfort-oriented consid-erations that insulation contractors should present is that of acoustics. Increasingly, Hawthorn says, homeowners and contrac-tors he meets with ask him about the sound-proofing qualities of insulation.

This is in part due to an increase in the building of entertainment rooms with sophisticated AV sound systems, partly due to a general demand for greater home com-fort, but also created by the air-tightness and outer insulation of the home. “Typically you would hear kids playing on the street or the neighbour getting up and cutting his grass at 7 a.m. on a Saturday morning, but when a home is relatively tight, well-insulated, and has better windows, you have to listen hard to hear them,” Goyda says.

“Now, because a lot of that noise has been stopped from coming into the house, what becomes predominant is all the noise cre-ated inside the house, so that creates another avenue of work for the renovation contractor, getting into the acoustical side of things.”

Contractors should familiarize themselves with the sound transmission class (STC) or sound reduction index (SRI) of the insulation products they are using. As a general rule, loud conversation can be understood through an STC-30 wall, but not through an STC-60 one. An STC-50 wall blocks approximately 50 dB of sound. A change in STC value by 5 will be clear-ly noticeable to the homeowner, while sounds behind a wall improved by an STC value of 10 will appear half as loud.

Eco-friendlierEven as new types of insulation emerge on the market, like soy-based foam insulation, to meet demands of increasingly ecology-centered homeowners, old standards like fibreglass continue to set new milestones in becoming eco-friendly, especially in Canada.

“Canada is now a formaldehyde-free

zone, across the entire industry,” says van Pelt, who has discussed the shift to formal-dehyde-free insulation for years. “Ultimately the market is the referee to what is needed, and that is what the market was asking for.”

In addition, fibreglass manufacturers have continued to find means to more efficiently pack and ship their product, further reducing the burden on the environment, and products continue to use greater amounts of recycled content. Today that ranges from between ap-proximately 35% and 70% recycled content, such as glass from curb-side blue boxes.

“That matters to people. Go to a home-owner and present how this insulation prod-uct has particular sound-control properties or features, and has no formaldehyde, and is using recycled glass content; these are the environmental buzz words that people want to hear,” Hawthorn says.

“A lot of people will then say, ‘I would

not mind having that insulation in my house because I feel like I am making a contri-bution.’” He notes, as an example, that every truckload of insulation Johns Manville makes defers about two and one-half tonnes from going into landfill.

Still, all this assumes contractors spend the time to learn more about the features and properties of their insulation products beyond simple R-values. More knowledge, combined with stronger communication and under-standing of client homes might just help con-tractors insulate their business against failure in today’s fast-changing housing market.

Goyda reiterates how beneficial today’s market forces can be to the insulation-savvy contractor.

“Those contractors who have really wrapped their heads around this stuff, and who are do-ing just a heck of a job, they are the ones who are coming out on top all the time.”

Contractors should familiarize themselves with the sound transmission class (STC) or sound reduction index (SRI) of the insulation products they are using.

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How To


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The Hard(wood)

FACTS Flooring options may vary, but the importance of proper

installation procedures remains.

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Mike Doyle easily rhymes off a num-ber of the latest trends in hard-wood flooring, and the most obvi-

ous changes involve the colours. “They are getting darker by the day,” suggests the own-er of The Home Improvement Warehouse in Calgary.

As dramatic as those colours may be, though, a bigger difference appears to be lying below the stain. Oak, maple and birch are the staples of Canada’s hardwood floor-ing installers, but Doyle is among those who have seen more floors built with exotic hardwoods from locales like South America, Africa and Indonesia.

It is a trend that presents a unique chal-lenge. Consumers may like the unique look of exotic offerings, but they are not very edu-cated about the products themselves, he sug-gests. Aside from the desired appearance, the products shipped from across the globe can be graded differently than the floor-ing traditionally offered in Canada. “When bringing in imported stuff,” he says, “they can call it whatever they want.”

It is why his business actually contracts quality control inspectors in offshore mar-kets to ensure that production facilities will meet his standards. After all, any shortcuts in the milling process could lead to the “over-wood” situations where one board will sit a little higher than the next, making it next to impossible to create a smooth floor. Anyone buying these products will want to ask about the quality controls that are in place.

Differences can even exist within an indi-vidual species. Doyle, for example, prefers a naturally grown small-leaf acacia from Indo-nesia rather than the large-leaf variety grown on plantations. “It is a high-character floor with a very hard wood. It is 35% harder than oak,” he adds, referring to the benefits of his preferred exotic offering.

Preferred flooring options will naturally vary from one region to the next. Brock Senner, president of Quality Craft Home Im-provement Products, for example, suggests that most buyers of his company’s products have been leaning toward maple floors with warmer colour tones. Hand-scraped floors are also growing in popularity in B.C. and Ontar-io, as customers embrace this rustic look.

Regional differences can even influ-ence board choices for practical reasons.


How To

Buyers in southern Ontario may be able to embrace 5” boards, but Doyle steers away from these wider materials when installing floors in the dry climates around Calgary. The wide wood could shrink in the face of dry winters found from the Rockies to Prairies, creating gaps that are as wide as ¼” between individual boards.

When customers still want the wider op-tions, dimensionally stable engineered wood products fill the void, but just like solid wood there can also be differences between one engineered offering and the next. Veneers can be laid on top of a plywood, Medium Density Fiberboard (MDF) or High Density Fiberboard (HDF) core. The thickness of

the top layer will play a role in how it resists damage, and some floors even include a thin wood backing to balance the top layer.

Features such as a waxed edge, meanwhile, reduce the transfer of noise between floors and offer some added protection against mi-nor spills of water or pet urine.

Engineered products may cost more than solid wood, but they can be installed much more quickly, Senner stresses, referring to the savings in manpower which can offset the price difference. Many joints in these engineered systems have been created with drop-lock systems, eliminating the glues and clamps found in traditional tongue-and groove designs.

The bigger challenge might involve con-vincing customers that it is a superior prod-uct in the first place. “You still get people thinking solid is better,” Senner admits. The irony is that the buyers who lean toward a solid wood floor are usually thinking about the option of sanding and refinishing the surface in the future. In reality, they are more likely to replace the floor entirely when that time comes.

No matter what product is selected, the secret of any successful hardwood flooring job is in the preparation, Doyle says. Sub-floors must be level, products need to be at-tached to proper substrates that will hold the fasteners, and glue needs to be matched to

specific products.Above all, any hardwood flooring

needs to acclimatize for about 72 hours before being installed, limiting the dam-age that can emerge if the building prod-ucts begin to expand or shrink after be-ing nailed in place. “A lot of installers will buy it the same day and install it the same day and that is probably the worst thing they could do,” Senner admits. The humidity levels in any room with hardwood flooring should be maintained between 35-50%, otherwise damage can come in the form of gaps between the boards or cracks in the engineered ve-neer known as face checking. Homes with conditions falling outside the ideal range will likely need the support of a hu-midifier or dehumidifier, he adds.

Installers who are equipped with a moisture meter will be able to spot any moisture differences between the wood

and the subfloor before the job begins.Engineered flooring can even be installed

over a concrete slab with the addition of a ¾”


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plywood subfloor and vapour barrier. The concrete simply needs to be ready for the job.

A new concrete slab has to cure at least 60 days before it can be covered with a wood floor. A calcium chloride test will need to mea-sure less than 3 lb. per 100 sq. ft. in 24 hours, and a Trames Concrete Moisture Encounter meter should show a reading of less than 5.0.

As a subfloor, it should be level within 3/16” over 10 ft., and hand scraped or sanded with a 20 Grit No. 3-1/2 open face paper to re-move debris and flakes. Grinding can remove high spots, while low areas can be addressed with a 3000 psi levelling compound.

The importance of a level subfloor is true for any surface. Otherwise, the joints in the flooring will flex and eventually fail. “Sometimes we have to build up the floor with ¼” plywood and feather it into another floor,” Doyle adds.

Those who have added radiant heating will also need to turn the systems off, giving the floor a chance to cool down to room temperatures before any work begins.

Once a subfloor is ready, individual boards should be pulled from a series of packages to create a random look and avoid the blocks of different tones that can exist between one batch and the next. A “racked” look is created by choosing different lengths from a carton or by cutting planks into four lengths that differ by at least 6”. That distance should be maintained between every end joint and the row to follow.

While many customers balk at the idea of a transition strip be-tween rooms, it is a vital piece that will let the wood expand and contract, Doyle adds, noting that doors will also need to be prop-erly gapped, leaving at least ¼” of space between the top of the

How To

www.globalwindows.ca

How To


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new floor and the bottom of the door itself. “We have to install those floors so they can breathe,” he says. Otherwise, the joints will pop and the nightmares will begin.

In terms of the fasteners, Senner prefers cleats over traditional staples or nails. “They actually hold better,” he explains, referring to the ribbed sides. They should also be no closer than 3” from the end, to keep the board from splitting. The recommended spacing between fasteners themselves can vary from one product to the next. Plank flooring, for example, will require a tighter spacing than strip flooring.

Quality Craft also stresses the need to set compressors at 80 to 85 psi to keep the staples from breaking through boards or breaking tongues.

Those who glue their floors in place

will want to hold a 3/16” x 1/4” x ½” notch trowel at a 45° angle, and replace the trowel every 2,500 sq. ft. as the notches wear away. These projects begin by nailing the first strip of boards in place with the tongue facing the wall. The adhesive is spread about 3’ wide across the length of the room, placing the tongue of each board into the groove next to it and pressing the board into the adhe-sive. The quickest way to ensure the boards have enough adhesive is to lift the occasion-al piece to make sure at least 90% of the sur-face is being covered by the material.

The traditional tools for any flooring contractor will include chop saws, compres-sors, pneumatic nail guns and knee pads, but other options are emerging. Quality Craft, for example, has recently introduced a manual tool that works much like a paper

cutter, slicing through ¾” of hardwood with ease. No sawdust is left behind.

One of the biggest decisions of all will simply come in the form of workers who handle any of the tools. It is why Doyle checks out a contractor’s truck as well as any references before hiring someone for a crew. “See how organized that van is,” he says. “If everything is thrown in the back of the van, he does not care.”

After all, that level of care will be just as important as any materials that are used.

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contractor advantage september / october 2011

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