Canadian Contractor - July-August 2015
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Smart Tech<br />
Kitchens<br />
Designers<br />
Talk Trends<br />
page 22<br />
LEED Platinum<br />
Construction<br />
Vancouver’s<br />
North Shore<br />
page 36<br />
CANADIAN<br />
Take Our<br />
90 DAY<br />
CHALLENGE<br />
page 18<br />
THE MAGAZINE FOR PROFESSIONAL RENOVATORS AND CUSTOM HOMEBUILDERS<br />
Publications Mail Agreement #40069240 JULY/AUGUST <strong>2015</strong><br />
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CONTENTS<br />
18 Cover Story<br />
Take Our<br />
features<br />
COVER STORY<br />
The 90 Day Profitability<br />
Challenge 18<br />
Do you know how much money you are<br />
going to make in the next 90 days? Mike Draper,<br />
Renovantage, shows you how to figure it out.<br />
90 DAY<br />
CHALLENGE<br />
Smart Tech Kitchens 22<br />
We interview award-winning designers<br />
on what makes an ultra-modern<br />
upmarket kitchen sing.<br />
Good Works<br />
from Saint Gobain 30<br />
The building products giant, celebrating<br />
350 years in business, makes a serious<br />
commitment to turning disadvantaged<br />
youth into contractors.<br />
Helping Clients Find<br />
the Money 34<br />
Calgary builder PLANiT partners up with<br />
“merchant direct” credit company Financeit<br />
to help their customers fund renovations.<br />
Professional Painting in Calgary 42<br />
A profile of The Urban Painter, an<br />
entrepreneurial painting firm that is<br />
riding high in The Stampede City.<br />
Saint Gobain<br />
30<br />
350 years<br />
42<br />
Urban<br />
Painter<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 3
CONTENTS<br />
Handy<br />
Man<br />
10<br />
Maxwell’s<br />
Picks<br />
56<br />
departments<br />
Online 6<br />
A look at some of the great<br />
stuff we have online at<br />
canadiancontractor.ca.<br />
Editorials 8<br />
Does your contracting business have<br />
a brand name? Rob and Steve talk<br />
about why it matters.<br />
Site Notes 10<br />
An interview with Wayne Jackson,<br />
a one-man handyman dynamo in<br />
Amherstburg, Ontario.<br />
Voices 12<br />
A sample of some of the online<br />
comments from our 16,500 contractor<br />
e-news subscribers.<br />
Maxwell’s Stuff We Like 49<br />
How to create incredibly sharp<br />
hand tools in two minutes or less.<br />
Enviroslate roofing. DeWalt<br />
miter saw.<br />
What Would You Do? 58<br />
Tell us how you would handle this<br />
sticky business situation. If we<br />
pick your answer, you will win a<br />
DeWalt cordless framing nailer.<br />
49<br />
Hone Run<br />
58<br />
What Would<br />
You Do?<br />
4 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
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CANADIAN<br />
CONTRACTOR .ca<br />
VIDEO<br />
A WAY TO PUT ALL YOUR CONTRACT PAPERWORK IN YOUR POCKET<br />
RENOMii is pretty cool. In a nutshell, it’s a way to upload all your projects’ paperwork so<br />
that all those hundreds of pieces of job-related information don’t get lost. Your client can<br />
log in and access them, you can access them. Your contracts, change orders and other<br />
critical documents are all on your mobile device, or wherever you want them.<br />
Type “RENOMii” in the search bar at canadiancontractor.ca to find this video easily<br />
VIDEO<br />
MAKING YOUR OWN MOULDINGS ONSITE USING A ROUTER<br />
In under 3 minutes, our tools editor Steve Maxwell shows you how you can can do custom<br />
handrails, door and window trim, crown moulding, wainscoting – endless types of "millwork"<br />
– using a simple router and some attachments. As Steve says, this type of router usage by<br />
contractors, onsite, is not "typical." But it can make you money.<br />
Type “Router” in the search bar at canadiancontractor.ca to find this video easily<br />
SALARY SURVEY<br />
PRICE OF MATERIALS ISN’T THE BIG DEAL WE ALL THINK IT IS<br />
Well, most of us kind of “knew” this, but now the proof is in. <strong>Contractor</strong>s don’t rank the price of<br />
materials, supplies and tools as highly as anxious lumberyards and big box stores often think<br />
they do. Only 28 per cent of the contractors we surveyed, in our annual <strong>Canadian</strong> <strong>Contractor</strong> Salary<br />
Survey, told us that “Price” was the most important factor when they shopped for an item.<br />
Type “Salary Survey” in the search bar at canadiancontractor.ca to find this video easily<br />
CANADIAN<br />
CONTRACTOR<br />
BUILD | GROW | PROFIT<br />
.ca<br />
Volume 16, Number 4<br />
<strong>July</strong>/<strong>August</strong> <strong>2015</strong><br />
canadiancontractor.ca | Tel: 416 442 5600 |<br />
80 Valleybrook Drive,<br />
North York, ON, M3B 2S9<br />
<strong>Canadian</strong> <strong>Contractor</strong>, established in 2000,<br />
is published 6 times a year by<br />
Annex Business Media.<br />
ISSN 1498-8941 (Print)<br />
ISSN 1929-6495 (Online)<br />
Editor<br />
Steve Payne<br />
spayne@canadiancontractor.ca<br />
Contributing Editors<br />
John Bleasby, John Caulfield, Mike Draper,<br />
Kim Laudrum, Steve Maxwell<br />
Art Director<br />
Mary Peligra<br />
mpeligra@annexnewcom.ca<br />
Publisher<br />
Rob Koci<br />
rkoci@canadiancontractor.ca<br />
Production Manager<br />
Gary White<br />
gwhite@annexnewcom.ca<br />
Circulation Manager<br />
Beata Olechnowicz<br />
bolechnowicz@annexnewcom.ca<br />
Mike Fredericks, President & CEO<br />
Annex Business Media<br />
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Annex Business Media East<br />
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6 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
Rob Hauser<br />
Hauser Home Hardware<br />
Building Centre<br />
Camrose, AB<br />
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PLUS ONE THAT CAN ONLY BE EARNED: TRUST<br />
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weather. But there’s one thing you can depend on: HH Pro <strong>Contractor</strong> Services. Because we’re<br />
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EDITORIAL<br />
Voices<br />
”<br />
If you have no<br />
brand affiliations,<br />
your competition<br />
is real.<br />
”<br />
Rob Koci<br />
Publisher<br />
rkoci@canadiancontractor.ca<br />
WHY YOU NEED A BRAND NAME<br />
By Rob Koci<br />
The Holmes Referred <strong>Contractor</strong> Program went away last summer,<br />
though you can still see that logo on the side of renovators’ trucks.<br />
It doesn’t take long to apply to become a Baeumler Approved<br />
<strong>Contractor</strong> – just go to their website and fill out a form. If you join<br />
your local homebuilders’ association, the RenoMark brand is all<br />
yours. If online exposure is important to you, you can pay HomeStars<br />
or TrustedPros some money and get their logo on your vehicle, your<br />
website, or anywhere else you want to put it.<br />
The business of selling brand names to contractors and<br />
renovators has gone into overdrive. Our industry is in a brand-rush<br />
for at least three reasons:<br />
• Increased regulation is scaring the hell out of some<br />
independent contractors. They realize they must either get bigger<br />
to cover regulatory costs, do more cash work or die. Getting bigger<br />
means getting more work – and having a brand name appears to<br />
offer it.<br />
• Lack of skill in the face of today’s more educated homeowner is<br />
making some contractors very nervous indeed. They are looking for<br />
a brand to hide behind.<br />
• Reno horror stories are scaring the hell out of most homeowners<br />
and they are looking for a contractor with a brand they can trust.<br />
If you have no brand affiliations whatsoever, the competition<br />
you are facing from contractors with all those logos on their trucks<br />
is real. So what do you do? Here’s my sincere advice if you decide<br />
to go shopping for a brand:<br />
• Look very long term. Does the brand have sustainable value?<br />
Does it have any value at all?<br />
• “You get what you pay for” is most true in the world of brands.<br />
• Ask yourself if the brand name you are considering has a good<br />
chance of being exploited by contractors with no skill or scruples.<br />
If it does, don’t sign up.<br />
Paying someone a couple hundred bucks just to show their logo<br />
on your business card will do very little for you if there are clowns<br />
and con artists waving the same flag.<br />
8 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
EDITORIAL<br />
IN PRAISE OF NO-NAMES<br />
By Steve Payne<br />
When a bunch of squirrels invaded my family’s townhome last<br />
month (well, our attic), the condo management firm sent in one of<br />
the biggest North American brand names in pest control to deal<br />
with the situation.<br />
The friendly, reassuring franchisee who waddled up a ladder<br />
to our roof put a live-trap by the access hole in the fascia. The<br />
next day, he’d caught a squirrel, whereupon he took the trap<br />
down and sealed up the access hole with sheet metal. Never to<br />
contact me again.<br />
The whole thing took just 24 hours – to prove that he was<br />
totally incompetent and his company’s brand name didn’t<br />
mean squat.<br />
The squirrels who remained inside let us know all weekend<br />
that the clock was ticking on the stink they were going to emit<br />
when they died.<br />
I asked the property manager to send us a competent operator<br />
to fix the mess. Two young lads arrived, without logos, a one-off<br />
firm that was not a franchise. No brand name but their own.<br />
They first walked all the neighbouring townhouse roofs for<br />
20 minutes, trying to find out if there were other access points<br />
before they dealt with ours. Then one of them entered the attic to<br />
check things out – the brand name firm hadn’t even bothered.<br />
Only after about an hour of these inspections did they go<br />
about unscrewing the sheet metal from the original access hole.<br />
They then screwed on an exclusion door – a one-way funnel of<br />
wire – rather than a live trap. All the remaining squirrels exited<br />
on their own in the next few days.<br />
No brand name, no logo. Total expertise and attention to<br />
detail. Problem solved.<br />
<strong>Contractor</strong>s, you don’t need a purchased brand name if you<br />
operate like these pros.<br />
”<br />
No purchased<br />
brand name<br />
was necessary.<br />
”<br />
Steve Payne<br />
Editor<br />
spayne@canadiancontractor.ca<br />
Voices<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 9
SITE NOTES<br />
Tips on Running a One-Man Handyman Operation<br />
An Interview with. . .<br />
Wayne Jackson, Wayne Jackson Handyman Services,<br />
Amherstburg, Ontario.<br />
Wayne Jackson is a<br />
throwback to another<br />
time. No puffed up titles<br />
for him! He’s happy<br />
to be what he is –<br />
a handyman.<br />
For the past 29<br />
years, Wayne has been<br />
building, renovating and repairing just about everything in the<br />
homes and gardens of his many loyal customers. Currently he’s<br />
based in Amherstburg, Ontario, in the extreme southwestern part<br />
of the province.<br />
Our Contributing Editor John Bleasby asks Wayne how he’s<br />
managed to turn something so simple into a good living.<br />
How long have you been handy?<br />
Since I was six. Anything my mother bought I tore apart, just<br />
to see what made it tick. I grew up on a farm and so I started<br />
working for a lot of the farmers, making things work.<br />
You market yourself as a handyman, pure and simple.<br />
No grand titles?<br />
I don’t want to step on anyone’s toes or hurt anyone else’s<br />
business. Plus, I want to cover as wide a spectrum as I can with<br />
small jobs. I don’t want to limit myself by saying I’m a contractor<br />
or any kind of specialist.<br />
Do you work solely on your own or do you have employees?<br />
Mostly on my own. I do my own plumbing, carpentry, and tiling,<br />
but I don’t touch anything electrical. I bring in specialty trades<br />
when I need them, but I get the client to hire them directly.<br />
You’ve recently moved to this new area. What are the challenges<br />
you’ve faced marketing to a new client base?<br />
I’m finding a lot of people here expect me to do the cash thing,<br />
which I don’t do. When the GST dropped from 7 per cent to 5 per<br />
cent, it wasn’t so bad. Now it’s the HST at 13 per cent, so the cash<br />
thing has started again.<br />
What would you say to someone starting up their<br />
own one-man operation?<br />
Put flyers everywhere: grocery stores and hardware stores.<br />
Get the word out as much as you can. Put your name on your<br />
vehicle. I have a red van with 5-inch letters on both sides saying<br />
“Wayne Jackson, Handyman” and my phone number. It’s not for<br />
my clients; I want neighbours five or six houses down to read<br />
my name and number. It’s a business card that I drive around<br />
in. Advertise in the local paper. Some people feel if you’re not<br />
in the local paper, you’re not in business. My wife had them<br />
create a heading for ‘Handyman’. I’m the only one in the section!<br />
I also have a website that brings in about 20-25 per cent of my<br />
inquiries. That’s been really good.<br />
Are you able to enjoy 12 months of work?<br />
I send out a mailing in the spring to promote outside work. In the<br />
fall I do another mailing for inside jobs, like bathrooms, vanities<br />
and so on. I ask customers to make lists of what they want done.<br />
It’s more cost-effective for them. It’s expensive to hire me to<br />
change a light bulb.<br />
What are your Red Flags with prospective customers?<br />
I can tell if it’s going to be a good relationship or if there’s going<br />
to be trouble. I run into some who want a ‘deal.’ People with<br />
money are often the worst. You give them a quote and they want<br />
you to knock 10 per cent off to get the job or even 10 per cent off<br />
at the end of the job! And people who say that Mike Holmes says<br />
to get three or more references and quotes, stuff like that. My<br />
answer is simple: ‘Hire Mike Holmes.’ If a customer is going to<br />
start a relationship like that, I’m a bit hesitant to get involved. I<br />
never drop my rates. I charge for my experience and the cost of<br />
running my business.<br />
Collections are not something many independent operators<br />
like to do. How do you manage that part?<br />
I ask for materials payments up front. And I get paid weekly for<br />
the work done to date, every Friday. I try to avoid problems right<br />
off. For example, I don’t pick colours for paints, but I choose the<br />
brand. The guy in the paint shop doesn’t really care; he’s not<br />
doing the job.<br />
How has being a handyman worked out for<br />
you financially?<br />
Everyone wants more, I guess. But the fact I’ve been in business<br />
for 29 years speaks for itself.<br />
10 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
corotechcoatings.ca<br />
©2014 Benjamin Moore & Co. All trademarks are registered trademarks of their respective owner.
VOICES<br />
CRAPPY CHINESE SHINGLES<br />
Alec Caldwell wrote an online post for us on June 17 called “Just What<br />
Our Industry Needed: Cheap, Crappy Chinese Shingles.” It detailed<br />
the appearance in Canada of thin, lightweight shingles that don’t<br />
meet CSA standards. And guess what? They don’t need to, at least<br />
for renovation applications. Only new homes require CSA-certified<br />
shingles. Time to close that loophole, we think. Here is a sampling of<br />
our online comments from contractors.<br />
“What is cheap now, ends up costing more…”<br />
Excellent article that shines a light on a growing problem in the <strong>Canadian</strong> construction<br />
industry. It’s not just shingles, however. Stucco and plaster materials that are not up to code are<br />
being used regularly here in Calgary by contractors who cheat innocent, unknowing customers.<br />
This usually results in cracking, water damage, and mould on the frame of the house. Another<br />
growing problem, at least here in Calgary, is windows made from cheap Chinese materials and<br />
hardware. Not only are the companies selling these windows destroying the market with their<br />
ridiculously cheap prices, I have my doubts about their certifications, as I have seen them first<br />
hand and they are an abomination. People need to remember that what is cheap now, ends up<br />
costing significantly more in the long run.<br />
Michael<br />
“Shingles falling in Milton, Ontario”<br />
I saw shingles falling off of townhouses in Milton, Ontario last February. I inspected them and<br />
found they are much thinner than the 25-year shingles from IKO. My roofing supplier told me<br />
they are from China. So beware of your shingles. I try to avoid anything Chinese made. I never<br />
frequent dollar stores. I make every attempt to investigate product origin. I do not support<br />
sellers or manufacturers that pass along Chinese material or product. It is time we closed<br />
the doors and started supporting Canada and the standards we need to stay safe. Punish<br />
manufactures and companies that move their businesses to China.<br />
Rey Talusa<br />
ASKING CUSTOMERS TO RATE YOU<br />
John Bleasby hired about 30 subtrades when building a house near<br />
Coldwater, Ontario – and noted in his online post that not one of them<br />
asked him, at any time, how happy he was with their work. This kickstarted<br />
a discussion on our site about how few of us ask our customers<br />
how we are doing. And what that ends up costing us.<br />
“Make it simple for your clients to give feedback”<br />
Asking for feedback is something we consider often when we deal with our clients. The simplest<br />
answers to “Why Don’t More <strong>Contractor</strong>s Ask for Feedback?”are: (1) It can be challenging to get<br />
the feedback so contractors give up on even asking, and (2) <strong>Contractor</strong>s don’t understand the<br />
significant value that such reviews can bring to their businesses long term.<br />
How to deal with these issues? First, make it simple for your clients to write feedback or to<br />
give you a review. Give them options for places to do this as opposed to just giving them one<br />
12 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
VOICES<br />
spot. Second, teach your staff why and how they should ask for<br />
reviews. Often the difference between getting feedback and not<br />
is in the way you ask for it.<br />
It should also be noted that many contractors are wary of<br />
negative responses. They shouldn’t be. Disappointing feedback<br />
is simply a tool to improve the way you do things.<br />
Jess Sugar<br />
“Paper feedback cards no longer seem to work”<br />
Oh, how I love client feedback. Funny, though, when you do a great<br />
job, you get a brief thank you. But when you make a mess, boy do<br />
you find out about it. The client will badmouth you all over the<br />
place, but never send you a note telling you what you did wrong. A<br />
phone call, yes, but never a note delineating the problem.<br />
We heard once that a client was so very ticked off at our<br />
service that they were telling all their friends about it. Then they<br />
told one of our really loyal clients about this – and got stopped<br />
in their tracks. Our loyal client asked our unhappy one, “Did you<br />
ever call them to tell them what was wrong?” The unhappy client<br />
answered, “Why would I do that? No one ever comes back to fix a<br />
mistake!” The reply from our loyal customer: “They do! Why did<br />
you not call?”<br />
So the next day, the customer calls and reams me out. I pull the<br />
file and note that there has never been any contact from the client<br />
since we left her premises two months ago. I ask what happened<br />
– and why did she not call? Apparently, after we left, her son tried<br />
to light a fire (in the fireplace we worked on) and smoked out the<br />
entire house and caused her to have an asthma attack. She had<br />
not used it since. So I offered her a free service call to find out<br />
what was going on. The finding? Her son had neglected to open<br />
the damper. It was that easy to solve. But because we had had no<br />
communication, we were badmouthed.<br />
For many years we left feedback cards with our clients, along<br />
with their invoices. We used to get 95 per cent of them back<br />
regularly – but that eventually changed to about 5 per cent.<br />
Maybe it is because we are doing a lot of repeat clients, I don’t<br />
know. We have tried putting a feedback area on our website – but<br />
hardly anything ever trickled in. Seems that clients do not want<br />
to give feedback anymore unless they are really mad at you.<br />
I think clients are so inundated with the auto-calling after nearly<br />
every service they have done, that when they see a paper or<br />
internet or mailing opportunity to give feedback they just toss it.<br />
We do still receive nice notes and cards with any incoming<br />
cheques from time to time and we really appreciate these as the<br />
clients have obviously taken more time and thought than just<br />
handing us a form they feel they must return. We keep these in<br />
a book in our sitting area. We also put any feedback that we get<br />
up on our website under testimonials.<br />
Yvette Aube<br />
“Whip out a tablet or mobile”<br />
I think one great way contractors can get immediate feedback on<br />
their work is to whip out a tablet or mobile with the site loaded<br />
up and ready to go. Have the client rate the service of work right<br />
there! This takes all the work out for the client, takes less than<br />
30 seconds to do, and you can reuse those testimonials to market<br />
your work – for years! Just imagine if you did that for every job!<br />
Win-win!<br />
Marci<br />
THE LITTLE VOICE THAT SAYS ”NO“<br />
Steve Maxwell posted online about that worrisome feeling<br />
that some clients just can’t help giving us<br />
when we are pitching our services to them,<br />
or giving them a quote. We have all blown<br />
past that signal in our guts. And we have all<br />
paid the price. Here is one reader’s personal<br />
experience…<br />
“Ask all potential clients this question”<br />
I think all of us in the construction business have had that<br />
negative gut feeling about potential clients, but have ignored<br />
the signals. One thing that I was taught years ago that has<br />
helped me immensely is to ask this question of a potential client:<br />
”Have you ever built before and how did it go for you?” In short<br />
order, the potential client will tell you about their fears, past<br />
experiences, and what they think of the construction industry.<br />
One of my best examples of how powerful this question is<br />
happened a number of years ago. We were building in an active<br />
new subdivision and a potential client came over and asked us<br />
if we could give him a price on his new build. It was a substantial<br />
house and, of course, I said sure. Then I asked “The Question.”<br />
He answered that, yes, he had built new houses twice before.<br />
I asked how that had gone for him. “I had to take both those<br />
“b_____’s” to court,” he replied. I said I was sorry to hear that<br />
and suggested he contact me when he had his final plans put<br />
together.<br />
When he called back a couple of weeks later, I told him I was<br />
booked solid. He burned the contractor who took on the contract<br />
for a substantial sum of money. By the way, he was a lawyer.<br />
Gavin Parsons<br />
14 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
VOICES<br />
ALBERTA RENOVATION WARRANTY PROGRAM<br />
In May, we wrote a brief news story about the<br />
launch of the new Alberta Home Renovation<br />
Warranty Program. We asked for feedback<br />
from the province’s builders. Here’s one of<br />
the responses.<br />
Money Grab<br />
I don’t think this Alberta Home Renovation Warranty Program will<br />
help home owners at all. If it is administered by the same people<br />
who run the Alberta New Home Warranty (Editor’s Note: It is) it<br />
will get the same results. I’ve worked for clients who have had<br />
their new homes leak – which led to extensive wood rot – because<br />
of poor building envelope work built during a boom by a major<br />
Calgary home builder. There were major renovation costs. They<br />
got nothing but a run-around and excuses from the builder. There<br />
are many people in the same situation, and I believe this is a<br />
major story here that most media do not want to address.<br />
Also the stringent application requirements (for this new<br />
program) will probably weed out 95 per cent or more of renovation<br />
contractors that would like to be accepted into the program.<br />
Homeowners should then probably be prepared to spend about<br />
40 per cent more for their renovations – if any contractor can<br />
possibly meet these high standards. If they exclude that many<br />
contractors by their extreme selection process, I would hazard<br />
a guess there wouldn’t be much point in needing a warranty<br />
then anyway<br />
Honestly, this is a money grab because they have gone to<br />
great effort to limit their liability right from the start.<br />
Ben Kuypers<br />
THROWING IN WORK FOR ’FREE’<br />
In our last issue’s<br />
editorials, Rob and Steve<br />
argued about when, if<br />
ever, it is a good idea<br />
to do minor additional<br />
work – as part of a larger<br />
renovation contract –<br />
for ’free.’ Here is how one<br />
Nova Scotia contractor<br />
sees it.<br />
’Extra cheese at no charge?’<br />
Doing freebies is risky, especially for new contractors with<br />
minimal experience trying to create a client base. My advice is<br />
to be careful. Several years ago while renovating a pizza shop<br />
in Sydney, Nova Scotia we were completing finish work when,<br />
unknown to me as supervisor, the client asked the carpenters<br />
to install additional shelving made from off-cuts from sheet<br />
goods used in the millwork. She thought the request was<br />
minimal and should be ’free.’ When I found out, attempting<br />
to protect my company’s interests and to help the client<br />
understand our business, I respectfully told the client that<br />
this would involve additional charges. I asked her, if after her<br />
restaurant is open for business and I order a pizza with extra<br />
cheese, can I get the extra cheese at no charge? She replied,<br />
’Certainly not: everyone knows cheese is very expensive.’ I<br />
replied, true, cheese is expensive. And extra shelving is like<br />
extra cheese to me.<br />
Michael Campbell<br />
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Summit_contractorad.indd 1<br />
16 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca<br />
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FINANCIALS<br />
90 DAY<br />
PROFITABILITY<br />
CHALLENGE<br />
Do you know how much money you are going to<br />
make in the next 90 days? If you’re on salary, probably.<br />
But if you’re a self-employed contractor, probably not.<br />
Here’s how to get a better handle on the money<br />
coming your way in the next few months.<br />
By Mike Draper<br />
Although it is very common for contractors<br />
to not know how much they are going to<br />
make in the next three months, it doesn’t<br />
make it right. Imagine getting in a car with an<br />
unknown amount of gas in it – with a broken fuel<br />
gauge, no less – and embarking on a long road<br />
trip. You’d be asking for trouble, right? Well, the<br />
same thing applies to your business if you don’t<br />
know your profitability and cash flow for the<br />
months ahead.<br />
Not only do you need to know how your money<br />
is flowing in the months ahead to stop your<br />
business from running out of gas (cash), you also<br />
need to know how much money you are making so<br />
that you can know if what you are doing is giving<br />
you the results you want.<br />
Knowing how much you are going to make in<br />
the near future may seem like an impossible task.<br />
However, it is possible with some planning. There<br />
are three things that are required to figure it out.<br />
• How much work you are going to produce<br />
• How much that work will cost you<br />
• How much your overheads will be<br />
If you know the value of the work your company<br />
will produce in the next 90 days and you take away<br />
how much that work will cost you to do, and what<br />
your overhead costs will be, what you will be left<br />
with is your Net Profit.<br />
18 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
FINANCIALS<br />
Let’s take a moment to differentiate between Net Profit<br />
and Cash Flow. They are not the same thing. <strong>Contractor</strong>s<br />
often show a profit on their Profit and Loss statement, but<br />
they don’t have any money in the bank. That’s because<br />
the timing of payments received and payments going out<br />
doesn’t always coincide. For example, you may have to<br />
meet your payroll obligations before you get paid by the<br />
customer. You may also have to pay deposits or pay COD<br />
for materials before you get paid. Both of these examples<br />
will result in negative cash flow even though you show a<br />
profit.<br />
Let’s look at each of these three areas in more detail.<br />
Month 1 Month 2 Month 3 Total<br />
Revenue $50,000 $60,000 $50,000 $160,000<br />
Cost of Goods Sold $35,000 $42,000 $35,000 $112,000<br />
Gross Profit $15,000 $18,000 $15,000 $48,000<br />
Gross Profit % 30% 30% 30% 30%<br />
Overhead Expenses $8,000 $8,000 $8,000 $24,000<br />
Net Profit $7,000 $10,000 $7,000 $24,000<br />
How much will your company produce?<br />
Although you might not be able to know exactly how<br />
much work your team will do every day, you can take a<br />
look at your project management schedule at a high level.<br />
It should tell you what the planned timelines are for all<br />
your projects. By knowing the timelines of your projects,<br />
you can calculate the overall value of that work. This will<br />
give you your target revenue for the next 90 days.<br />
Even if you are not using a project management system<br />
you need to be able to estimate how much work or how<br />
many projects you plan to do over the next 90 days. This<br />
target now needs to drive your production. Taking control<br />
over the amount of work that your crews and subs deliver<br />
is a critical part of your success. Without a target and<br />
some control you will severely reduce your likelihood of<br />
success. The other major benefit of knowing how much to<br />
expect your company to produce over the next 90 days will<br />
help you better manage your cash flow. You need to make<br />
sure that the customer’s payment schedule is set up so<br />
that you don’t finance their project.<br />
Calculating the cost of the work performed<br />
If you know how much work you are expecting your crews<br />
and your subs to produce, then you should be able to<br />
calculate how much it will cost you to do that work – Cost<br />
of Goods Sold (COGS). The timing of when a sub will send<br />
you the invoice is not the critical point here. The critical<br />
point is to be able to review the estimates you produced<br />
before you won the project, to get the costs that you<br />
allocated to that work.<br />
The common point between how much will you<br />
produce and how much will it cost you to perform the work<br />
is that you must have a plan of what work you are going<br />
ILLUSTRATION: GLENN M C EVOY<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 19
FINANCIALS<br />
To be truly successful and to<br />
be able to consistently make<br />
the money that you want to make,<br />
you have to have a project<br />
management schedule.<br />
ILLUSTRATION: GLENN M C EVOY<br />
to do. This is the hardest part of the process.<br />
I often see financial statements from contractors that do<br />
not allocate costs correctly. A very common mistake is to not<br />
include the payroll costs of workers and Workers’ Comp as part<br />
of COGS. Many contractors put them down as overheads. But<br />
for true project management, Cost of Goods Sold should include<br />
all expenses associated with doing the work including labour,<br />
material, sub-contractors, equipment rental, as well as Workers’<br />
Comp and payroll taxes for field personnel.<br />
There are many companies that sell project management or<br />
client management systems for this exact reason. To be truly<br />
successful and to be able to consistently make the money that<br />
you want to make, you have to have a project management<br />
schedule. Think about it like this. If you make a plan on paper<br />
and you don’t like the outcome of how much you will make in<br />
90 days, you have a chance to change the outcome before the<br />
90 days even start. If you don’t plan it and just wait to see the<br />
outcome 90 days from now, it is too late to do anything about it.<br />
If the amount of money you made was not to your liking there is<br />
nothing that you can do about it and you’ve just lost 90 days. Just<br />
as importantly, the next 90 days won’t be much different!<br />
The key to making money is to have a concrete plan and to<br />
continuously monitor your progress on the plan. Should you<br />
start to fall short of the plan, the sooner you can address the root<br />
cause of what is going wrong in the execution of the plan, the<br />
sooner you can take action to get back on track. To go back to the<br />
analogy of driving a car, if you know where you are planning to<br />
go and the route that you will take to get there, should you make<br />
a wrong turn you can figure out how to get back on course. You<br />
will reach your intended destination.<br />
Calculating Overhead<br />
Calculating overhead shouldn’t be too hard to do. You will have<br />
financial statements from previous months that you can use<br />
as a starting point to know what expenses you have had in the<br />
past and that you will likely have in the next 90 days. Simply<br />
put, overhead expenses will be all expenses that you will incur<br />
that you have not included in the cost of work performed. Typical<br />
overhead expenses will include administrative costs, owner’s<br />
wages if not included above, leases, rent, advertising, phones,<br />
insurance, internet, web site, truck repairs and gasoline, etc.<br />
Now add the cost of overhead and the cost of performing<br />
the work together. This number will be your total expenses for<br />
the next 90 days. Go back to the amount of work that you will<br />
produce and subtract the total expense number that you just<br />
calculated. The number that is left is how much you will make.<br />
20 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
FINANCIALS<br />
Hopefully that number is not only above zero but it equals how much money you want to make<br />
over the next 90 days. If it does equal what you want to make, then your next step is to follow<br />
your plan.<br />
Let’s take a look at what you can do if the number is not as much as you want to make in the<br />
next 90 days. First, I would suggest taking a look at your overhead to see what overhead items<br />
you could eliminate that would not impact your ability to produce the work that you do. Once<br />
removed, if the number is still not what you want to achieve, then the next step is to look at the<br />
work that you are planning to produce. There are only three possible scenarios here. Either (1)<br />
you are not producing enough work in the next 90 days, or (2) it is costing you too much to do it,<br />
or (3) you have a combination of both.<br />
At this point you will need to review the project plan to find out what can be done to increase<br />
production over the next 90 days. Look for areas of inefficiencies, areas where you could put<br />
multiple trades on-site at the same time, hire someone who can work faster or has larger crews<br />
that are able to produce more work in the same amount of time than someone you have worked<br />
with in the past. These may be tough decisions, but if the crews you have now can’t produce<br />
the work that you want then you might have to look for other crews. Are you willing to let your<br />
current crews stand in the way of you reaching your goals or are you going to take action to help<br />
you reach them?<br />
Take a look to see what options you have to reduce the cost to do the work without sacrificing<br />
your quality standard. You could look at doing a better job procuring material, shopping at<br />
different stores and using suppliers who can provide shipping to cut down on wasted time<br />
picking up and delivering materials to site. When I go to a building supply store during the day<br />
I am shocked at how many times I see two people from the same company walking around the<br />
store picking up materials or components that they forgot to get the time before. Better planning<br />
of the job can save a ton of time wasted going back to pick up more supplies.<br />
Research new products and technology that can make the job go faster. Make sure clients<br />
have made critical decisions that they need to make so that they don’t hold up the job. Any time<br />
that can be saved will help you produce more work in less time. More work means more money.<br />
The Break-Even Analysis<br />
If you still aren’t reaching your goals, you need to do a Break-Even Analysis to determine where<br />
you stand. If your revenues don’t support your expenses, you will get in trouble very quickly.<br />
Using the same numbers we used to determine your profitability, here is how you calculate<br />
break-even.<br />
Month 1 Month 2 Month 3 Total<br />
Overhead Expenses $8,000 $8,000 $8,000 $24,000<br />
Divided by Gross Profit % 30% 30% 30% 30%<br />
Break-Even Revenue $26,667 $26,667 $26,667 $80,000<br />
If you do all the things we just spoke about and you still won’t hit your goal, then it sounds<br />
like you need more sales. That is a whole other topic to be covered in the next issue of<br />
<strong>Canadian</strong> <strong>Contractor</strong>. cc<br />
Mike Draper is vice president, coaching, at Renovantage.com
KITCHENS<br />
SMART TECH<br />
Kitchens<br />
B y Kim L audrum<br />
This award-winning kitchen by XTC Design Inc., Toronto,<br />
brilliantly blends “streamlined and modern” with “warm<br />
and organic.”<br />
Photos: Larry Arnal Photography<br />
22 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
KITCHENS<br />
Kitchens, dollar for dollar, allow you<br />
to offer your renovation clients the<br />
best return on their investment.<br />
<strong>Canadian</strong> <strong>Contractor</strong> spoke to<br />
award-winning kitchen designers<br />
to find out the recent <strong>Canadian</strong><br />
kitchen trends that you need to<br />
be aware of.<br />
Hands-free and touchless features – “smart tech” in kitchen<br />
designer language – are all the rage in high-end kitchen<br />
renovations for up-market clients.<br />
“We’re seeing a lot more smart technology in kitchens<br />
today,” says Erica Westeroth, senior designer and partner, XTC<br />
Design Inc., Toronto. “There are more hands-free or touchless<br />
features in all kinds of applications, from faucets, cabinetry<br />
lighting, or even to operate cabinetry to lift doors out and up.”<br />
Installing smart tech in a kitchen requires a learning<br />
curve for most contractors, but it isn’t difficult, designers<br />
say. “There’s a whole mechanism that goes in behind the<br />
cabinetry. Blum makes the system, which includes a servo<br />
drive. They have a very good service program to help train<br />
tradespeople on installation,” Westeroth says.<br />
At his downtown Toronto showroom, Anthony Binns, a<br />
third-generation cabinetmaker, peers with a keen eye along<br />
a long length of white lacquered upper cabinetry made<br />
by German company Eggersmann. When installing smart<br />
technology, it’s important to have exact measurements. Any<br />
small shift can keep the smart boxes from “communicating<br />
with each other,” Binns says. This could cause a malfunction.<br />
The cabinet door might not lift with a finger press. The client<br />
is paying top dollar for this ease-of-use function, so accuracy<br />
is extremely important, notes Victoria Shaw, Binns’ partner at<br />
Eggersmann Toronto.<br />
Modern aesthetic<br />
“We’re also seeing cleaner lines, a trend toward a more<br />
modern aesthetic,” XTC’s Westeroth says. Hardware is linear<br />
or recessed. The layouts are simpler, not a lot of angles or<br />
curves. “Is it easier to install? It’s less time consuming. A more<br />
contemporary look does not require a lot of moldings, for<br />
example. But you can’t hide anything exacting.”<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 23
KITCHENS<br />
Aesthetic lines are simpler so you have to add texture to the<br />
design for interest, Westeroth says. Riff-cut oak, for example, is a<br />
popular way to add texture and warmth.<br />
“People want modern with warmth,” Binns says. “They love<br />
simple lines and a well-organized kitchen.”<br />
Easy-to-access storage<br />
The popularity of cooking shows, Binns says, has influenced how<br />
people live in their homes now. Decades ago, guests would not have<br />
seen anything happening in the kitchen. Dinner would magically<br />
appear at the dining room table. But now, kitchens are integrated<br />
with family rooms as part of an entertainment hub. A well-organized<br />
kitchen is key to keeping it uncluttered. Efficient use of space, not<br />
necessarily more space, is key: “More storage isn’t always the<br />
answer,” Binns says.<br />
“A galley kitchen is the best way to cook, really. Everything<br />
Top: A stunning kitchen in the showroom of Eggersmann<br />
Toronto. It combines the beauty of wood grain with<br />
ultra-modern streamlining.<br />
Above: Anthony Binns and Victoria Shaw,<br />
principals, Eggersmann Toronto.<br />
24 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
KITCHENS<br />
is right within reach,” says Shaw.<br />
One of Eggersmann’s “wow” factor<br />
innovations is a feature wall that,<br />
when pressed, will turn a series of<br />
hidden doors to reveal floor to ceiling<br />
racks of kitchen storage. When placed<br />
behind the island, this creates a<br />
galley-type kitchen. But it can also be<br />
turned back into a dramatic feature<br />
wall.<br />
Another trend is to deploy fewer<br />
upper cabinets, Binns says. To<br />
demonstrate, he opens a drawer in an<br />
island and pulls out a wooden rack<br />
with dinner plates, which he then<br />
brings to the table. “Accessibility and<br />
ease-of-use is what it’s all about,” he<br />
says.<br />
Above and right: Ease-of-use features in today’s<br />
upmarket kitchen cabinets include “smart tech”<br />
functionality. Examples here are from Eggersmann<br />
Toronto.<br />
Lighting<br />
There is a big trend to using<br />
LED lighting in creative ways.<br />
One example is a line of blue<br />
lights recessed right into the<br />
cabinet doors as a way to add<br />
function and colour, as in this<br />
kitchen from ATD in Oakville, ON.<br />
LED lighting is energy efficient<br />
and doesn’t heat up like halogen<br />
does. It lasts much longer, too.<br />
26 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
Come to<br />
Toronto on<br />
our dime!<br />
Be a voice for<br />
our industry<br />
December 1 & 2, <strong>2015</strong><br />
We are looking<br />
for 32 contractors<br />
from across<br />
Canada who want:<br />
FREE<br />
• Travel to Toronto<br />
• Hotel<br />
• Food<br />
• Entry to Construct<br />
Canada<br />
AND<br />
who can share their<br />
business and product<br />
challenges.<br />
RenoFocus is a series of focus-group<br />
sessions behind closed doors in which<br />
manufacturers and suppliers gather market<br />
information from successful contractors.<br />
EMAIL Publisher Rob Koci<br />
for more information:<br />
rkoci@canadiancontractor.ca<br />
Please put RenoFocus in the subject line
KITCHENS<br />
Colour<br />
Like the striated lines of the riff-cut oak, colour is also used to add<br />
interest to the otherwise stark feel of the modern aesthetic.<br />
“It’s all a very personal thing,” notes Westeroth. “Some clients<br />
want a shot of red, purple, fuscia, chartreuse or cranberry red. Then<br />
there are others who are still too shy about it. They want beige,<br />
taupe or grey. It’s safer.”<br />
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XTC Design won the 2014 Kitchen and Bath award for a kitchen<br />
featuring purple walls with walnut cabinetry, a striated marble<br />
waterfall island, and porcelain-flooring tile. There is a wall of<br />
windows next to the kitchen, Westeroth explains, so there is a lot<br />
of natural light there, which allows the use of a darker colour<br />
in this location.<br />
Wood<br />
Sometimes a designer has to compromise.<br />
Westeroth found this to be true when her clients,<br />
a couple with discerning – and opposite – tastes,<br />
asked her to design a kitchen for them that was<br />
streamlined and modern for her, but warm and<br />
organic in feel for him. The result earned XTC<br />
Design another major Kitchen and Bath award,<br />
this time in <strong>2015</strong>. (See photo, pages 22-23.)<br />
The kitchen features stainless steel, butcher<br />
block and red lava-stone countertops. The<br />
apple-wood island features a striated pattern<br />
done on a horizontal grain. “The overall effect<br />
is very organic and natural. It had to read<br />
warm and comfortable,” Westeroth says.<br />
Wood remains an important feature<br />
in designing kitchens, says Shaw. In the<br />
Eggersmann showroom a feature wall of<br />
contrasting dark and light birch makes you<br />
feel as if you are standing among trees. It<br />
balances the harshness of concrete materials<br />
with nature.<br />
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Cabinetry<br />
“We do a lot of wood cabinetry and mix<br />
components a lot. We still do a lot of shaker<br />
cabinets because of their versatility. They can<br />
fit with contemporary or traditional design,”<br />
Westeroth says. “But the latest trend is to more<br />
clean lines.”<br />
Cabinet door finishes have improved<br />
dramatically, says Binns, as he demonstrates<br />
the mirror-like reflective quality of a lacquered<br />
board in his showroom. Edging, too, is<br />
improved, making it possible to mitre corners<br />
more easily. It all adds up to a greater selection<br />
for clients. cc<br />
Kim Laudrum is a regular contributor to<br />
<strong>Canadian</strong> <strong>Contractor</strong>.<br />
28 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
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COMPANY NEWS<br />
Good Works<br />
Building-products giant Saint-Gobain celebrates 350 years in<br />
business with a pledge to make builders out of disadvantaged youth<br />
By John Caulfield<br />
Saint-Gobain, the<br />
international buildingproducts<br />
manufacturer,<br />
is marking its 350th anniversary<br />
by strategically partnering<br />
with YouthBuild USA through a<br />
three-year $600,000 grant and a<br />
commitment to launch a trade<br />
school in South Africa.<br />
Since 2010, France-based Saint-<br />
Gobain – which is perhaps best<br />
known in Canada for the RSI and<br />
acoustical products it markets<br />
under the CertainTeed brand – has<br />
provided financial and building<br />
materials support to the Bostonbased<br />
YouthBuild USA, a nonprofit<br />
organization that provides<br />
education, counselling, and jobskills<br />
training to unemployed young<br />
American adults, generally highschool<br />
dropouts.<br />
That support has focused<br />
on the organization’s Green<br />
Initiative Program, a sustainable<br />
building and job-training program<br />
for disadvantaged youth; and<br />
specifically on YouthBuild<br />
programs in four communities<br />
where Saint-Gobain has business<br />
concentrations: Philadelphia, Penn.,<br />
Worcester, Mass., Schenectady, N.Y.,<br />
and Canton, Ohio.<br />
Saint Gobain, well-known in Canada for the CertainTeed brand,<br />
opened a series of public pavilions in Philadelphia recently. The<br />
LOOK pavilion is comprised of numerous mirrors inlaid with LEDs.<br />
By day, its exterior reflects the surrounding environment; by night<br />
it becomes a perpetually shifting cube of light. Saint-Gobain<br />
started as a mirror company in France in 1665.<br />
30 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
COMPANY NEWS<br />
Through this partnership in the U.S.,<br />
former out-of-school youth have been<br />
given the opportunity to build energyefficient<br />
homes in their neighborhoods<br />
while earning a high school diploma or<br />
its equivalent. Since its inception in 2010,<br />
the program has impacted more than<br />
1,050 YouthBuild students nationwide.<br />
And Saint-Gobain and YouthBuild USA<br />
have completed three U.S. Green Building<br />
Council (USGBC) LEED-certified homes.<br />
Its latest pledge brings Saint Gobain’s<br />
total funding of YouthBuild USA to<br />
$1.3 million over the course of seven years<br />
(2010-17). The extended partnership will<br />
make possible the following activities over<br />
the next three years:<br />
• YouthBuild Philadelphia Charter<br />
School will complete two projects already<br />
underway at Wingohocking Street in<br />
Philadelphia, launch a renovation of the<br />
school’s Community Celebration Room,<br />
and identify a third project.<br />
• YouthBuild Schenectady (operated by<br />
Social Enterprise and Training Center) will<br />
identify and complete a second project.<br />
• YouthBuild Worcester (operated by<br />
Training Resources of America, Inc.) will<br />
identify and complete a third project.<br />
• YouthBuild Canton (operated by<br />
Project REBUILD) will identify and<br />
complete its first project.<br />
• YouthBuild and Saint-Gobain will<br />
continue implementation of the “Scientists<br />
in the Classroom” program that leverages<br />
Saint-Gobain scientists and engineers<br />
to expose students to curriculum and<br />
careers in the fields of science, technology,<br />
engineering and mathematics (STEM).<br />
Showing love to the<br />
City of Brotherly Love<br />
Aside from announcing its expanded<br />
relationship with YouthBuild USA, Saint-<br />
Gobain has also pledged to reinforce its<br />
commitment to North America, where over<br />
the past five years alone it has invested<br />
more than $3 billion and where it currently<br />
employs 15,000 workers; as well as its<br />
connection with Philadelphia, which dates<br />
back to 1948. CertainTeed has long been<br />
based in the suburb of Valley Forge, Pa.<br />
The company is in the process of building<br />
a 43,000-square-foot Innovation Center<br />
and new headquarters on 65 acres in<br />
the suburb of Malvern, Pa. Last October,<br />
CertainTeed opened an R&D Lab on that<br />
campus.<br />
Saint-Gobain’s<br />
funding efforts<br />
have helped<br />
more than 1,050<br />
YouthBuild students<br />
nationwide.<br />
Philadelphia is one of only four cities<br />
worldwide – the others being Shanghai,<br />
Paris, and São Paulo – where Saint-Gobain<br />
this year will exhibit Future Sensations,<br />
a series of pavilions that showcase the<br />
company’s businesses and products<br />
in energy, aerospace, transportation,<br />
commercial and residential construction,<br />
medical and life sciences, and high tech.<br />
For example, the LOOK pavillion is<br />
comprised of numerous mirrors inlaid<br />
with LEDs. By day, its exterior reflects<br />
the surrounding environment; by night it<br />
becomes a perpetually shifting cube of<br />
light. The DISCOVER pavillion, which is<br />
exclusive to the Philadelphia exhibit, is<br />
a 70-foot dome that informs visitors about<br />
how the company’s products have impacted<br />
the lives of Americans. Perhaps the coolest<br />
pavilion is LISTEN, a padded cube that<br />
uses “spatialization” technology to ricochet<br />
different sounds throughout the booth.<br />
15 generations and counting<br />
To mark its 350th anniversary, Saint-<br />
Gobain has posted an online exhibition<br />
– www.saint-gobain350years.com – whose<br />
700 documents include a timeline of 22<br />
important dates in the company’s history,<br />
a 3D reconstruction of its glassworks<br />
as it would have been in operation<br />
in 1785, a gallery of innovations that<br />
showcases Saint-Gobain’s contributions to<br />
architecture and housing, and a scrapbook<br />
of its leaders, inventors, and other<br />
important employees.<br />
Nostalgia is nice, but Saint-Gobain<br />
also knows it’s in a “what have you done<br />
for me lately” world. Pierre-André de<br />
Chalendar, Saint-Gobain’s chairman and<br />
CEO, who flew in for the Philadelphia<br />
press conference, acknowledged that the<br />
company’s growth would continue to hinge<br />
on innovation. Saint-Gobain, he said, is<br />
“more focused on the future than the past,”<br />
and is on the lookout for “solutions” that<br />
can be expanded to other parts of the globe.<br />
Saint-Gobain currently has 182,000<br />
employees in 64 countries, including South<br />
Africa, where YouthBuild has operated<br />
for a decade, and where Saint-Gobain<br />
runs an accredited training program that<br />
prepares disadvantaged youth to work in<br />
the construction industry. Saint-Gobain<br />
and YouthBuild International plan to<br />
open a YouthBuild school in Samrand,<br />
South Africa, about 20 minutes from<br />
Johannesburg. Saint-Gobain will provide<br />
a training facility, trainers, and building<br />
materials. Initially, the program will serve<br />
50 disadvantaged youth. cc<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 31
COMPANY NEWS<br />
CertainTeed targets <strong>Canadian</strong> builders<br />
The company’s insulation products now carry a Health Products Declaration, while its<br />
MemBrain moisture barrier product, developed in Europe, has now reached Canada<br />
CertainTeed MemBrain being installed.<br />
When homeowners talk about going green, they are<br />
actually “investing in their own comfort,” says Drew<br />
Brant, vice president of marketing for CertainTeed’s<br />
insulation division.<br />
So CertainTeed’s product development revolves around<br />
“comfort” on four levels: thermal performance, acoustics,<br />
air tightness, and moisture management.<br />
The challenge is distinguishing products that, to consumers<br />
and even some pros, seem a lot alike. “There’s not that much<br />
difference from batt to batt,” acknowledges Greg Silvestri,<br />
president of CertainTeed Insulation. What separates insulation<br />
suppliers, then, are often their relationships with customers. And at<br />
a time when some suppliers have backed away from the <strong>Canadian</strong><br />
market, CertainTeed, Silvestri says, is “redoubling” its efforts to<br />
serve Canada.<br />
Canada accounts for 15 per cent of annual worldwide insulation<br />
sales for Saint-Gobain, CertainTeed’s parent company. “Canada is<br />
still one of the world’s largest consumers of insulation,” says Drew.<br />
And it is clear that air tightness and sustainability are the hooks<br />
upon which CertainTeed is hanging its marketing hat.<br />
The company’s latest campaign trumpets fiberglass insulation<br />
as a better choice than stone wood insulation – a favorite among<br />
some <strong>Canadian</strong> contractors – because the manufacturing process<br />
uses far more recycled materials, it is more efficient to transport<br />
and easier to install, it costs less per square foot, and it rates<br />
at least as highly as stone wool for thermal resistance, sound<br />
performance, and restricting moisture infiltration.<br />
To further emphasize the advantages of fibreglass insulation,<br />
and to help builders and architects make informed specification<br />
decisions, CertainTeed in January issued the industry’s first Health<br />
Product Declarations for fibreglass insulation. The Declarations<br />
aim at establishing standards for a common reporting language<br />
for disclosing information about the ingredients used to make a<br />
building product and its associated health information.<br />
Air tightness goes hand in hand with moisture control for wall<br />
systems. And in May, CertainTeed Insulation Group Canada<br />
intoduced MemBrain, a patented polyamide-based material that<br />
the company is positioning as a “smart” alternative to poly vapour<br />
barrier sheeting.<br />
MemBrain, which has been available in Europe for a decade,<br />
is pricier than polyethylene sheeting: it will add between $300<br />
to $500 to the cost of an average 2,400-square-foot house. But<br />
CertainTeed contends the investment is worth the cost because<br />
its product adapts its permeability depending on different climate<br />
conditions. MemBrain’s water vapour permeability increases as<br />
the relative humidity in a wall cavity increases, thereby water<br />
vapour escapes the cavity easier, which in turn prevents mould<br />
and mildew.<br />
– John Caulfield<br />
32 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
REAL ESTATE<br />
Help your clients<br />
find the money<br />
Sonny Belanger of PLANiT Builders, Calgary, like an increasing number of contractors,<br />
has partnered up with Financeit, a “merchant direct” credit facility that provides funding<br />
to 70 per cent of his clients.<br />
By John Bleasby<br />
You’re a builder. You want to grow your business. But at the<br />
same time, growth can mean increased administration<br />
costs and collections issues. Perhaps you lose business<br />
because potential customers get bogged down with financial<br />
approval for a renovation, repair or addition. What do you do?<br />
Sonny Belanger of PLANiT Builders in Calgary thinks he has<br />
found the solution: a partnership with Financeit, a fast growing<br />
<strong>Canadian</strong> loan intermediary that allows builders instant and<br />
direct on-line access to consumer financing. It’s been a perfect fit<br />
for PLANiT, with their focus on garage construction and basement<br />
renovation.<br />
Like many contractors, Belanger often found the approval<br />
process at traditional banks too slow. Credit applications took 24<br />
hours or more, sometimes with requests for follow-up meetings.<br />
“It’s a fast-moving city; people want to make decisions quickly and<br />
move on with their lives. Financeit’s software allows us to confirm<br />
financing on the spot, literally in seconds.” For Belanger, putting<br />
these financing tools directly in his hands is unique and has given<br />
his business a marketable advantage.<br />
”They come to us for convenience,<br />
transparency and extremely<br />
competitive rates.”<br />
What kind of customer needs Financeit? Typical clients are<br />
young first-time home owners and dual-income professionals. They<br />
have good cash flow, yet hold insufficient equity in their homes to<br />
leverage a secured line of credit at a traditional bank. “They come<br />
to us for convenience, transparency and extremely competitive<br />
rates,” explains Financeit sales manager Dave Murray. “Through<br />
our builder partners, they have access to our credit facilities 24/7.<br />
Their personal financial information can even remain confidential<br />
from the builder, depending on the application. After approval, our<br />
customer service personnel look after them right to the end of the<br />
loan period.”<br />
Financeit started its<br />
merchant-direct financing<br />
program in 2011 and has<br />
grown rapidly in Canada<br />
with parallel programs in<br />
auto and marine/RV loans.<br />
“We are a technology<br />
platform, partnered with<br />
multiple financial institutions<br />
standing behind us, Murray<br />
says.” The company’s main<br />
thrust today is the home<br />
PLANiT Calgary team<br />
improvement market.<br />
Financeit offers unsecured,<br />
five year fixed rate loans up to $50,000, amortizations up to 15 years,<br />
and open monthly payments tailored to the client. Interest rates are<br />
comparable to new car loans, ie., well below credit card rates or<br />
”lenders-of-last-resort”.<br />
Most Financeit partners receive guaranteed payment upon<br />
project completion. Larger qualifying contactors like PLANiT receive<br />
full payment, 100 per cent upfront. The benefits of turning collections<br />
over to a finance company are potentially enormous, as any small<br />
to medium size contractor would recognise. Even dispute resolution,<br />
which Murray claims is minimal, is negotiated through Financeit.<br />
Providing instant loan approval to clients, coupled with<br />
an assurance of full payment, has had a powerful impact on<br />
Belanger’s business. He estimates 70 per cent of his clients use<br />
the facility. The resultant minimization of his administrative costs<br />
allows Belanger to focus his efforts on growth. As proof, Belanger<br />
estimates that PLANiT currently has teams working on over 170<br />
projects simultaneously across Alberta. “The jobs move much<br />
quicker. We don’t have to stop and wait to collect payment. Offering<br />
a full financing package as part of our services is very important;<br />
we’ve become very good at it.” cc<br />
34 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
CREATIVE EYE<br />
Shore House,<br />
North Shore, Vancouver<br />
Developer: Steve Hoiles<br />
Architect: Mark Kerschbaumer<br />
By John Bleasby<br />
Urban infill has become<br />
increasingly common in Canada’s<br />
larger municipalities as new building<br />
lots disappear. The challenges are varied:<br />
New designs should in some way blend<br />
in with the neighborhood, while at the<br />
same time upgraded zoning and code<br />
regulations are observed, neighbours<br />
sight lines respected; all this within a<br />
manageable project budget.<br />
In 2009, developer Steve Hoiles built<br />
a modern LEED house, on speculation,<br />
on half of a severed 66-foot-wide lot in<br />
Vancouver’s upscale North Shore<br />
neighborhood. Hoiles teamed up with<br />
architect and fellow Ontario transplant<br />
Mark Kerschbaumer in a collaboration<br />
of design and environmental awareness.<br />
“Like me, Steve has always been<br />
interested in the West Coast style of<br />
modernism. Other projects in North<br />
Vancouver were craftsman style; there<br />
simply was no supply for people looking<br />
for modern,” explains Kerschbaumer.<br />
The Highest-Rated<br />
LEED<br />
PLATINUM<br />
House in Canada<br />
Main Staircase<br />
The use of reclaimed wood beams from a demolished<br />
auto-repair shop, reshaped into the dramatic main staircase,<br />
as well as the roof beams, was an irony not lost on environmentallyconscious<br />
developer Steve Hoiles.<br />
The result was the Shore House, the<br />
country’s highest-rated LEED Platinum<br />
residence. The Hoiles/Kerschbaumer<br />
vision regarding design, budget<br />
($200 per square foot), energy efficiency,<br />
and reuse/recycling of materials<br />
established a new building template that<br />
can only be appreciated when one realizes<br />
that other builders at the time were<br />
building LEED-directed houses<br />
for $500 - $600 per square foot.<br />
Kerschbaummer applauds Hoiles on his<br />
methodology. “Steve was able to build<br />
a really energy-efficient house for not<br />
much more than others were building<br />
their standard homes” Hoiles, a<br />
self-described green-initiative developer,<br />
Continued on next page<br />
All Photos: Steve Hoiles<br />
Basement Suite<br />
The entrance to the<br />
separate 1,000 square foot<br />
apartment is below grade.<br />
36 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
CREATIVE EYE<br />
Main Level<br />
Natural light streams down onto the open<br />
main floor living space from a light well.<br />
The stability of engineered white-oak<br />
flooring permits in-floor radiant heating.<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 37
CREATIVE EYE<br />
Shore House,<br />
North Shore, Vancouver<br />
Continued from previous page<br />
estimates the extra cost after thorough<br />
analysis, was only 10 per cent.<br />
“The material surcharge is never a big<br />
deal compared to labour.”<br />
Of particular interest to builders is the<br />
use of 24-inch wall framing, combined<br />
with Roxul’s stone-wool ComfortBoardIS<br />
on the exterior to reduce thermal<br />
bridging, an innovative approach at the<br />
time. The added exterior insulation also<br />
took advantage of exemptions from lot<br />
setback requirements in The City of North<br />
Vancouver, allowing Kerschbaumer<br />
to maximize interior space while<br />
meeting code.<br />
Kerschbaumer says that ComfortBoard<br />
“is not another vapour barrier on the<br />
outside wall like polystyrene. We get a<br />
lot of rain, which can blow in behind trim<br />
and siding. The ComfortBoard product<br />
allows the exterior wall to breathe. It is<br />
not hygroscopic.” Hoiles adds, “Rain is far<br />
more difficult than snow. How you manage<br />
water egress is a really big deal or mould<br />
results.”<br />
The Shore House is brimming with other<br />
energy-efficient, environmentally friendly<br />
features including LED lighting,<br />
energy-efficient appliances, plus what<br />
Hoiles describes as “passive green<br />
benefits” such as cleverly sourced postconsumption<br />
recycled materials, fly ash<br />
concrete in the ICF foundations, and a<br />
rainwater storage system.<br />
Typical of many North Vancouver<br />
houses, the Shore House has separate<br />
accommodation in the basement, a threebedroom<br />
1,000 sq. ft. suite. The main living<br />
area (2,000 sq. ft.), features a master plus<br />
three more bedrooms, making a total of<br />
seven bedrooms in the house.<br />
Continued on next page<br />
All Photos: Steve Hoiles<br />
Front Pre-Siding<br />
The Roxul ComfortBoardIS is applied before the siding is installed.<br />
38 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
CREATIVE EYE<br />
Main Level Kitchen<br />
A flood of colour on the backsplash, a dash of<br />
natural light over the sink and from the rear patio door<br />
(outside of photo frame), reflect off the white counters<br />
and island to bring lightness into the open kitchen.<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 39
CREATIVE EYE<br />
Shore House,<br />
North Shore, Vancouver<br />
Continued from previous page<br />
Yet the house has a remarkably<br />
spacious feel, the result of the<br />
near-open main floor. Light flows<br />
though skylights, high-wall windows<br />
and down a large light well in the<br />
centre of the house. “I’m a huge<br />
believer in natural light. We get a<br />
lot of rain here, a lot of grey days.<br />
In many long narrow houses, the<br />
interior can become quite dark if<br />
light cannot filter into the centre.”<br />
Following the awards and<br />
recognition associated with the<br />
Shore House, the duo went to work<br />
on other projects in Vancouver before<br />
Hoiles relocated his business to San<br />
Diego. Kerschbaumer continues a<br />
very successful and award-winning<br />
practice in Vancouver. ”What<br />
we did then has now largely<br />
become standard in the market,”<br />
observes Hoiles.<br />
All Photos: Steve Hoiles<br />
Mies Corner<br />
The inside corner detail, called a<br />
‘Mies Corner’ (after architect Mies van<br />
der Rohe), is a salute to modern design.<br />
It separates the siding that uses two<br />
styles of western red cedar (beveled<br />
tight-knot on the left, clear no-knot<br />
on the right) from the vertical grain<br />
western hemlock used on the eaves.<br />
All are protected by natural<br />
water-based penetrating stains<br />
manufactured by CBR Products<br />
in Vancouver to accent the<br />
mosaic wood grains.<br />
40 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
CREATIVE EYE<br />
The simple double-shed roof, which dominates the building’s exterior<br />
appearance, allows for easy drainage within the modern format.<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 41
PROFILE<br />
Jon and Dave Bryant<br />
42 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
PROFILE<br />
CALGARY’S<br />
URBAN<br />
PAINTER<br />
How Jon and Dave Bryant are<br />
succeeding in the coatings business by<br />
doing a lot of things other painters aren’t.<br />
By Steve Maxwell<br />
All photos:<br />
KlixPix/Charles Hope Photography<br />
This article first appeared in PRO PAINTER magazine in Spring<br />
<strong>2015</strong>. To get a free contractor subscription to PRO PAINTER, please<br />
email spayne@canadiancontractor.ca<br />
If you want to see how a small, young, nimble and successful<br />
21st century painting business operates, you won’t find a better<br />
example than Calgary’s The Urban Painter. Founded by college<br />
painter and natural-born entrepreneur Jon Bryant in 2005, and now<br />
run along with his brother Dave as director of operations and a core<br />
team of employees, this business is doing a lot of things you won’t<br />
see other painters do. Their recipe comes down to things that are<br />
often talked about but not always delivered: consistently high-quality<br />
results, treatment of clients with exceptional politeness and respect,<br />
professional financial analysis, and the use of 21st century information<br />
and promotional tools to make the most of every opportunity. It’s a<br />
recipe that proves running a painting company can be a smooth,<br />
sustainable and profitable business, especially in niche markets.<br />
It also shows that every business is an extension of its owner.<br />
“As a kid I started a number of small businesses,” explains Jon, “but<br />
made a promise to myself to start a real business by the time I was 20.<br />
I’d painted a fence for my grandparents and I’d seen other university<br />
students running painting companies and saw a lot of potential. I ran<br />
my business seasonally for several years before my brother Dave and I<br />
went full-time two years ago. Since then we’ve ‘taken things seriously,’<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 43
PROFILE<br />
and we’ve exceeded many of our goals and we’re having fun<br />
doing it. We’re excited to see where our team can take the<br />
business, but there’s still so much to learn.”<br />
Simplicity, Reliability, Courtesy and Quality<br />
The Urban Painter does 50 per cent residential and 50 per cent<br />
commercial jobs, “with the odd new construction project if we<br />
like the contractor,” smiles Jon. “A total crew of eight keeps up<br />
with work in the winter, with about 25 painters employed during<br />
busy summer months.” The company structure revolves around<br />
key crew leaders who manage two or three people in each crew.<br />
“We’ve had crew leaders manage up to three crews at once on<br />
simple jobs,” says Jon.<br />
On the surface, all this sounds fairly typical for any small<br />
painting business, but there’s more than a few things that are<br />
quite different about The Urban Painter. And most of them<br />
spring from the fact that Jon isn’t your average “painter-turnedbusiness<br />
owner”.<br />
“It’s never crossed my mind to paint on my own,” says Jon.<br />
“I believe strongly that a good team will always out-perform me<br />
or any other single person. A great parable taught to me by a<br />
business mentor is this: one man alone will be killed by a lion,<br />
but several men working together can kill that lion.”<br />
Jon earned a bachelor’s degree in commerce in finance from<br />
the University of Calgary, and he’s carried this experience<br />
through to The Urban Painter. “The main thing I learned at school<br />
is that an understanding of the finances of a business matters<br />
a lot,” explains Jon. “Especially cash flow. But even with my<br />
background, starting out was hard. It took us three years of work<br />
to be profitable. No major financial problems, it just took time.”<br />
It’s no surprise that an ongoing challenge for The Urban<br />
Painter is the same challenge faced by any painting company:<br />
44 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
PROFILE<br />
Left: The Urban Painter never subs out work, instead using only<br />
trained staff for all jobs. The crew members wear company clothes<br />
and aim for exceptional neatness and polite customer relations.<br />
finding and keeping good painters. But for a company that<br />
prides itself on achieving consistently high-quality results, this<br />
challenge simply has to be met.<br />
“The second question we always ask when interviewing<br />
prospective painters is ‘how do they handle patching’,” says<br />
Dave. “The answer is useful because it gives a clear indication<br />
of whether the candidate knows anything about quality painting<br />
and the prep behind it. Quality craftsmanship is of utmost<br />
importance to us.”<br />
So what kind of wall patching answers does Dave like to hear?<br />
For large cracks he likes to see painters use fibre tape followed by<br />
three or four coats of mud feathered out and sanded. For holes, we<br />
use either metal backing plates or install new pieces of drywall<br />
followed by mud. Dings and nicks receive mud and sanding.”<br />
What’s the first question asked of new painters? “What do<br />
you enjoy about painting?”<br />
Training and Focus<br />
Calgary has had a hot labour market for more than a decade. This<br />
means workers tend to be more mobile and less loyal. And while<br />
you might think this would reduce the incentive to train, that’s not<br />
what happens at The Urban Painter.<br />
“We do a lot of onsite training,” says Jon “and we even follow<br />
a training manual that we’ve created. When I consider the<br />
possibility of trained painters leaving us after we’ve trained them<br />
in The Urban Painter system, I ask myself ‘what happens if we<br />
don’t train and the person stays?’ That’s far more costly for us than<br />
someone leaving after they have been trained.<br />
“Every so often we lose a team member, because they’re<br />
offered a higher wage by another company. But that’s not the<br />
norm. Our priority has always been to be a great place to work<br />
with competitive wages. Part of this is that we make every effort<br />
possible to provide consistent work, a great working environment,<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 45
PROFILE<br />
Above: Dave Bryant takes payment from a client using an<br />
on-site credit card reader.<br />
and opportunities to advance. We’re an all-employee company<br />
and do not sub work. This allows us to have a strong team and<br />
achieve consistent results, not to mention that we feel safe having<br />
people we know in our customers’ homes.”<br />
Despite training and a commitment to provide consistent work,<br />
Jon finds great painters increasingly harder to find. “We generally<br />
follow the logic that great attitudes can be trained,” says Jon.<br />
“That being said, it takes a lot of work to find great painters .”<br />
“The biggest personal challenge for me is staying focused,”<br />
says Jon. “As an entrepreneur I can easily get side tracked by<br />
other ‘interesting’ business prospects. I’ve been involved in other<br />
businesses in the tech industry and medical insurance while<br />
trying to maintain the painting business and I wasn’t able to stay<br />
focused well on any of them.”<br />
Urban Painter Marketing<br />
One of the things about The Urban Painter is the way its website<br />
– www.theurbanpainter.com – stands out. It’s simple, professional,<br />
attractive and it includes an important call to action: a simple,<br />
online opportunity to get quotes. “Although I have a passion for<br />
design and web development,” says Jon, “our website was built<br />
with the help of a designer and a local developer. It’s that focus<br />
thing again.”<br />
“Overall marketing efforts are very important to us, as we only<br />
work in specific areas to keep our crews close and effective. In<br />
fact, we intentionally limit our work area to achieve this. We do a<br />
lot of online search engine optimization and are always actively<br />
sending out post cards, door hangers and posting signs in the<br />
areas we want to work. On the commercial side we get a lot of<br />
work through word of mouth from our clients who appreciate what<br />
we do for them.”<br />
“The most challenging part of running our painting business<br />
has been to stay focused,” says Jon. “There are always so many<br />
‘bright and shiny’ opportunities everywhere that we could follow,<br />
46 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
THE EASIEST WAY TO<br />
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PROFILE<br />
Nuggets<br />
of Wisdom<br />
From Jon<br />
There are no short cuts<br />
to good quality<br />
or reputation.<br />
Personal bonding matters<br />
in a crew... A lot!<br />
but that would dilute our focus. The only way we have been<br />
able to grow is to stay true to our target clients and give them<br />
excellent service every day. You need to be focused for this, and<br />
focus means saying ‘no’ sometimes.”<br />
“Currently we have enough work to keep our crews busy, so we<br />
get to pick and choose a little on the type of jobs we do. With the<br />
current economic climate in Calgary, we’ll see if this persists, as<br />
summer is our busy season. My father always told me, ‘Getting<br />
the work is hard, but doing the work is easy.’ There’s a lot of truth<br />
in this, but we’ve been fortunate to have plenty of work over the<br />
years. That said, it has been challenging to achieve consistent,<br />
timely results and maintain our brand experience.”<br />
Every business has its doom and gloom commentators, and<br />
the painting business is no different. While some people will tell<br />
you how hard it is to make a go of it as a professional painter<br />
these days, that’s obviously not true for everyone. And that means<br />
it’s not true at all. Focus, attention to details and making use of<br />
new marketing opportunities still pays off. The Urban Painter<br />
proves it. cc<br />
Hire for attitude,<br />
train for skill.<br />
Stick to work you’re<br />
really good at and say<br />
'No' to the rest.<br />
Bring great value<br />
to every project.<br />
48 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
ENVIROSHAKE<br />
Enviroslate Roof<br />
Page 56<br />
DEWALT<br />
20V Miter Saw<br />
Page 56<br />
HONE RUN<br />
Create incredibly sharp hand tools<br />
in two minutes or less<br />
Page 52<br />
STEVE<br />
MAXWELL’S<br />
STUFF WE LIKE<br />
PRODUCT S , TECHNOLOGY & TIPS FOR CONT RACTORS
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MAXWELL’S MIND<br />
Three Lessons<br />
from a Cathedral<br />
By Steve Maxwell<br />
Of all the projects that people have built throughout history,<br />
the great cathedrals of Europe are my favourite. Besides<br />
the fact that they’re awesome examples of refined design<br />
on a massive scale, every time I see one I’m reminded of three<br />
things that help me build better today. Perhaps they will help<br />
you, too.<br />
Cathedrals make me want to be a better craftsman. We live<br />
in a time when there’s a tool for everything, and I’m thankful for<br />
it. But isn’t there something especially impressive about doing a<br />
lot with a little? The hammers, chisels, points and wedges used<br />
by the armies of cathedral stonemasons were as simple as tools<br />
get. Everything was powered entirely by muscle, nothing was<br />
computer controlled, nothing was laser-guided. Can any builder<br />
of today fail to be impressed by how much was accomplished<br />
with so little? In fact, doesn’t it take the eye of a builder to fully<br />
appreciate the skill that went into a cathedral? How could regular<br />
people even begin to understand? That’s why cathedrals always<br />
encourage me to get better.<br />
Cathedrals make me want to be more patient, too. Every<br />
substantial cathedral took more than a century to build, and<br />
the one in Cologne, Germany, took 600 years to complete. The<br />
only two cathedrals that I know of under construction today both<br />
began more than 120 years ago and they’re still growing. I’m not<br />
sure why, but I find it inspiring to think that I could have started<br />
as an apprentice on one of these projects, learned my craft,<br />
practiced it day after day until I was an old man, then retired<br />
only to see a portion of the work done. Cathedrals leave me<br />
more patient, and they remind me that great accomplishments<br />
sometimes demand great timelines.<br />
Cathedrals put my years on earth in perspective. The closest<br />
I’ve come to working on a cathedral happened in the winter of<br />
1989. I was a mason on the restoration of St. Paul’s Presbyterian<br />
Church in Hamilton, Ontario, and there’s one moment that’ll stick<br />
with me. We were repointing inside the 180-foot tall sandstone<br />
spire, you can see on the right, and when the capstone came off<br />
for cleaning, I couldn’t resist climbing up the scaffolding inside<br />
for a look out the top at the city. The opening was just large<br />
enough for my head and shoulders, and while I took in the sights<br />
of a modern city, I could also glance down and see the tool strokes<br />
and initials of the men who put those last stones in place back<br />
in 1857. They did awesome work, they’re gone now, and my view<br />
of the city from the top of the spire must have been so different<br />
than theirs. All this reminds me how short our time is on this<br />
earth, how fast time rolls along, and how I need to make the most<br />
of what I’ve got. Isn’t that a cathedral lesson we should all think<br />
about now and then?<br />
steve@stevemaxwell.ca<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 51
MAXWELL’S<br />
Stuff We Like<br />
HONE RUN<br />
Create incredibly sharp hand tools<br />
in two minutes or less<br />
By Steve Maxwell<br />
Even in a world dominated by power tools, a<br />
sharp chisel or block plane is still sometimes<br />
essential for the best trim and interior<br />
millwork. And that’s one side of contracting that<br />
clients especially appreciate because they see<br />
it every day. The problem is that creating and<br />
maintaining sharp edges with stones in the old<br />
fashioned way takes way too much time. That’s why<br />
I started sharpening all my edge tools with a buffing<br />
wheel back in the mid-1980s. The process takes<br />
less than one minute to transform a dull chisel into<br />
something that’s sharper than a new razor blade, and<br />
this approach can even remove small chips and dings<br />
from edges without grinding.<br />
My system is based on a pair of round buffing<br />
wheels – one made of hard felt, the other made from<br />
circles of cloth sewn together. Both are spun by a<br />
salvaged 1/4 hp, 1750 rpm motor, driving a ball-bearing<br />
mandrel via a 2-to-1 pulley arrangement, boosting<br />
the speed of the wheels to 3450 rpm. The hard wheel<br />
is used to hone flat or concave edges, and this is<br />
probably all you’ll ever need. I sometimes do carving<br />
in my work, and buffing the inside surfaces of curved<br />
gouges is the only time I use the soft cloth wheel.<br />
52 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
MAXWELL’S<br />
Stuff We Like<br />
tool against the wheel. The edge will be scary-sharp in no time,<br />
ready for you to get back to work. It’s really that simple, but there<br />
are two tricks you need to keep in mind.<br />
How It Works<br />
Instead of rubbing a chisel or plane iron against a stationary<br />
stone by hand, you hold a tool against the rapidly spinning edge<br />
of a buffing wheel that’s been coated in a very fine abrasive. Both<br />
sides of each tool are held against this moving surface in turn,<br />
where they’re honed to a shiny finish in a short time. A honing<br />
session that would normally take 15 or 20 minutes of monotony<br />
with a sharpening stone now happens in a few minutes or less.<br />
Switch the buffing wheel on, hold a block of abrasive compound<br />
against the spinning wheel to charge the surface, then hold the<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 53
MAXWELL’S<br />
Stuff We Like<br />
The first and most important involves safety. The tip of any<br />
tool must always point in the same direction as the buffing wheel<br />
rotation, not against that direction. Ignore this requirement and<br />
the tool will be caught and flung out of your hands dangerously.<br />
Power buffing is quite safe as long as you remember this detail.<br />
buffing is tangent to the edge of the wheel. It’s essential that the<br />
tip of the chisel or plane iron doesn’t get rounded over or made<br />
more blunt than its ideal angle of 25º to 30º. Rounding so the<br />
cutting tip is steeper than this means the tool won’t slice like it<br />
should, even if it is smooth and shiny.<br />
After buffing the tip of the tool you’ve been working on, the<br />
edge will always shine like polished silver. That’s impressive,<br />
but cutting performance is what really counts. Grab a piece of<br />
softwood and try slicing the end grain at a slight angle. A really<br />
sharp edge will slice the wood with no tear-out or roughness at<br />
The second crucial issue has to do with cutting performance.<br />
Since the abrasive action of this honing technique is so<br />
aggressive, it’s possible to remove visible amounts of metal from<br />
a tool tip quickly. This is why the process is so fast, but it also<br />
poses a challenge. You must hold the tool so the surface you’re<br />
54 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
MAXWELL’S<br />
Stuff We Like<br />
all. It’s really something to experience. The tool will be magic.<br />
Another test involves shaving hair. If you’ve got enough hair<br />
on your hand or arm to spare, a truly sharp blade will cleanly<br />
cut that off better than a new razor.<br />
What If It Doesn’t Cut?<br />
If a buffed tool edge is shiny right to the edge but doesn’t cut<br />
cleanly, it always means you held the tool tip at too steep of an<br />
angle relative to the buffing wheel.<br />
The solution is to reshape the tool on a grinding wheel,<br />
creating the proper bevel angle. This process is no longer called<br />
honing, but grinding. It’s a much coarser technique than honing<br />
and it removes more metal. The good news is that you shouldn’t<br />
have to grind tools very often once they’re working well with<br />
edges ground to the correct angle and honed skillfully. So, what<br />
is the correct angle? That depends on the tool involved.<br />
The edges of general-purpose woodworking tools like bench<br />
chisels and hand planes should have a bevel angle between<br />
25º and 30º for proper performance. Block planes and chisels<br />
you’ll use for slicing and paring work better with a shallower<br />
bevel of about 20ºC. The trick is making this happen without<br />
overheating the tool. If the metal gets too hot it won’t be able<br />
to hold an edge any more.<br />
Bench grinders are cheap and effective at removing metal, but<br />
they can cause huge heat build up in tools, too. The simplest and<br />
cheapest way to grind without too much heat is using a<br />
cool-running, soft-bond wheel on your bench grinder. Soft-bond<br />
wheels aren’t very common, but it pays to track one down for<br />
delicate, heat-sensitive applications like tool grinding. I buy<br />
mine from Lee Valley Tools (800-267-8767; www.leevalley.com).<br />
Want a really simple grinding option? A woodworking belt<br />
sander performs surprisingly well. Clamp it upside down in a<br />
portable workstation after putting on a 120- or 180-grit abrasive<br />
belt. There will be a few sparks as you grind, so be careful.<br />
Remove the dust bag and blow off all sawdust before you begin<br />
so nothing catches fire. The trickiest part of using a belt sander<br />
for tool grinding is getting the precision you need. Since there’s<br />
no opportunity to install a tool rest, you’ve got to get good by hand<br />
and eye. It’s no big deal, though.<br />
You can still overheat tools on a white wheel or a belt sander,<br />
so you need to be cautious. Don’t make sparks for more than two<br />
or three seconds before dipping the tip of the chisel or plane iron<br />
into cold water for five seconds. Keep the grinding and cooling<br />
process going until the entire bevel area shows an even, fresh<br />
surface, with a small burr of rough metal formed at the tip. With<br />
this done, you can hone and have a better-than-razor-sharp edge<br />
in a minute or two.<br />
Building your success as a contractor always comes down to<br />
hundreds of details done right. Chisels and planes might only be<br />
a small part of your tool collection, but sometimes they’re the only<br />
things that can make you look like a hero where it really matters.<br />
As long as they’re sharp, that is.<br />
cc<br />
www.canadiancontractor.ca <strong>July</strong>/<strong>August</strong> <strong>2015</strong> 55
MAXWELL PRODUCTS<br />
MAXWELL’S<br />
PICK<br />
ENVIROSHAKE<br />
Enviroslate Roofing<br />
Natural slate is one of the most expensive roofing<br />
options going, but a new <strong>Canadian</strong> alternative looks<br />
identical from the ground, it costs 50% less than<br />
mineral slate, and it can be installed with regular<br />
roofing tools on regular roof structures. Enviroslate is<br />
the latest composite roofing material from the same<br />
people who created the cedar look-alike roofing<br />
product Enviroshake back in 1998. Enviroslate is<br />
made using the same blend of recycled plastic and<br />
wood fiber feedstocks, so the reliability behind the<br />
lifetime warranty offered is more than just wishful<br />
thinking. What surprised me most about my tests<br />
with Enviroslate is the authentic look it delivers.<br />
It’s exceptionally similar to natural slate on the<br />
workbench, and even experienced slate installers<br />
can’t tell the difference from the ground.<br />
www.enviroshake.com/enviroslate<br />
MAXWELL’S<br />
PICK<br />
DeWALT<br />
DCS361M1 20V Cordless Compound Miter Saw<br />
This is the first <strong>Canadian</strong> print review you’ll see for this tool,<br />
but it won’t be the last. Ease of use for light- and medium-duty<br />
applications is the reason why. Weighing in at just over 30 lbs, this tool<br />
uses DeWALT’s standard 20V battery and crosscuts up to 8 1/8” at 90º<br />
in my tests. Although designed primarily for smaller cuts and trim, the<br />
thin-kerf blade on the DCS361M1 had no trouble chewing through<br />
1 7/8”-thick cherry in my shop. I’m glad to see how this saw preserves<br />
the same classic features I’ve come to love in older DeWALT miter saws:<br />
super-easy miter angle adjustment that locks positively; an LED cutting<br />
light that uses the shadow of the blade to show where cuts will happen;<br />
dual sliding rails that deliver more stability than single rail designs.<br />
The only thing missing is preset detent stops for bevel angle, but that’s<br />
no big deal. Adjustable bevel stops at 0º and 45º can be flipped out<br />
of the way for back cutting, plus an easy-to-see bevel scale makes it<br />
simple to tilt the blade over for flat cutting crown. $399 bare tool; $499<br />
tool with one battery and charger. Available in stores late <strong>July</strong>.<br />
www.dewalt.com<br />
56 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
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WHAT WOULD YOU DO?<br />
Off The Book<br />
The Stillwells are trying to hire Dan Summerville’s<br />
carpenter to do some work on the side. But there’s<br />
a powerful reason they need to save some money.<br />
By Rob Koci<br />
Dan Summerville’s best carpenter and<br />
lead hand on the Stillwell job, Dave<br />
Chillingham, did the right thing (as he<br />
always did) and told his boss that Ms.<br />
Stillwell had just asked him to work on<br />
the basement drywall “off book.” That<br />
is, for cash after hours. And without<br />
Summerville’s knowledge.<br />
It was a shock to Summerville, but<br />
not just because the drywall was on<br />
the scope of work for the reno he was<br />
currently doing for the Stillwells. He<br />
was shocked because the Stillwells<br />
always paid in full, on time, and with<br />
taxes included. Summerville checked his<br />
books: To date, the Stillwell’s had done<br />
$180,000 of work with him. Simply put,<br />
they were his best client. Ever since the<br />
Stillwells bought the century home 20<br />
years ago, Summerville had been their<br />
contractor of choice.<br />
Clearly, the Stillwells were about<br />
to renegotiate the basement out of<br />
the existing contract. But why? What<br />
had happened that they decided this<br />
was okay? A little digging<br />
(Summerville’s daughter Jenny<br />
went to the same school as<br />
the Stillwells’ son) revealed a<br />
possible reason. Mr. Stillwell<br />
had recently been diagnosed<br />
with a serious illness. Jenny<br />
had heard rumours that the<br />
Stillwells wanted to try an<br />
unfunded treatment in Mexico. Not a<br />
word of it came to him from the Stillwells<br />
themselves, so they clearly either wanted<br />
to keep it quiet or the rumours simply<br />
were not true.<br />
If it was true, should Summerville<br />
stand by and pretend that he has not<br />
heard about Mr. Stillwell’s plight? But if<br />
he gives the go-ahead to Dave to do the<br />
work, what message would that send to<br />
his employees? If he didn’t hold the line<br />
on this kind of behavior now, would the<br />
line disappear?<br />
What would you do if you were<br />
Summerville? See the options at right.<br />
WHAT SHOULD SUMMERVILLE DO?<br />
1. Keep silent about what you know, let<br />
the Stillwells renegotiate the contract,<br />
and let your employee Dave do the<br />
work for cash.<br />
2. Ask the Stillwells about the health<br />
issue, tell them you know why they<br />
might have tried to hire your guy for<br />
cash, and ask them what you can do<br />
to help?<br />
3. Not reveal what you know, but also<br />
not allow Dave to do the work even if<br />
the Stillwells negotiate the basement<br />
out of the contract.<br />
4. Something else? (Please give us a<br />
brief description.)<br />
WIN!<br />
A DEWALT XR DUAL SPEED<br />
cordless framing nailer<br />
Retail price: $549<br />
LAST ISSUE’S WINNER – “THE DISCOVERY”<br />
In our last case study, a renovation contractor, Brigham Wild, finds a box of<br />
cash – estimated to contain over $150,000 – hidden in the wall structure of<br />
an abusive client’s house. The client, Buster Belichek, has been threatening<br />
to take Wild to court and there is a real likelihood that Belichek may not be<br />
paid. We asked if Wild has any options other than immediately handing<br />
over the money.<br />
Winner: Ben Kuypers, Ben Kuypers Design Group, Calgary.<br />
“My answer is option number 2: Give the money to Belichek and do the make goods.<br />
A good rule of thumb for any situation is, "If you are thinking of doing something you<br />
don't want anyone to find out about, don't do it.” If you are going to be a good contractor<br />
is that just dependent on how good the client is going to be or is it always? There's no<br />
real “maybe” or “when it suits me.” It is hard to resist not saying anything, in this case,<br />
when the client doesn’t know about a situation. But that is the precise moment when<br />
you need to step up and be forthright. Walk the talk.”<br />
HOW TO ENTER<br />
Email the number that matches your best<br />
answer, with your comments, to<br />
rkoci@canadiancontractor.ca. Please title<br />
your email “What Would You Do?” We will<br />
select the answer that impresses us the most<br />
and send the winner the DEWALT nailer.<br />
58 <strong>July</strong>/<strong>August</strong> <strong>2015</strong> www.canadiancontractor.ca
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