January 15, 2003

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Welcome to the newly remodeled ReNEWS
ReNEWS has undergone some extensive renovations to streamline our news delivery and put more of the information you need into your inbox. As the newsletter of the Remodelors Council, the new ReNEWS will continue to provide up-to-the-minute industry news and Council updates every month.

Our new web-based format should automatically conform to your browser's specifications. If your Internet browser does not support the new format, you'll be receiving a text-only version. The new system will allow us to vastly expand this report's readership and make it much easier for you to access other free NAHB publications.

The Builders' Show is upon us
The upcoming International Builders’ Show (IBS) in Las Vegas is going to be huge. An estimated 72,000 construction company owners, managers and lead staff from 120 countries will be there to see the latest in building products and technologies, to network and to learn. With more than a thousand exhibitors displaying the latest in home and building products and educational programs covering issues ranging from housing and the economy to cutting-edge design, you're going to need a little help locating all the remodeling events taking place at IBS. Now that help is only a click away—the Remodelors Council's Builders' Show planner is now online. [return to top]

Code warriors come together
Three model code organizations will merge into a single entity during a formal signing ceremony at the International Builders' Show in Las Vegas this month. The Building Officials and Code Administrators International (BOCA), International Conference of Building Officials (ICBO), and Southern Building Code Congress International (SBCCI), which together founded the International Code Council (ICC) in 1994, will make their consolidation official at the Hilton Hotel on Jan. 21. This is a step that NAHB and other industry groups have sought for several years. The newly formed organization will, under the ICC banner, be stronger, more streamlined and better equipped to deliver services to the building industry.

It will also be better able to combat challenges to adoption of the International Residential Code (IRC) — the first national residential building code developed with significant home builder and residential remodeler input. For anyone working in multiple jurisdictions, competing code sets increase the potential for costly construction errors due to confusion over code differences dealing with such things as minimum ceiling height, basement wall design, minimum windowsill height, and self-closing/latching doors to attached garages. The goal of the IRC is to give builders and remodelers a consistent set of requirements to work with throughout the United States. [return to top]

Get involved with the Remodelors Council
Attend the committee meetings, Jan. 18-19, and the Board of Trustees General Session, Jan. 20, to get your point of view across to the Council’s leadership, and to become part of that leadership yourself. The best way to provide valuable input into planning and administration of the Council’s programs is to put in some face time at the Las Vegas Convention Center. It’s also a great way to find out what the Council has in the works. The committee meeting schedule is available here. [return to top]

CGR joins the JLC roadshow
JLC live continues to offer CGR courses in 2003.  Mark your calendar and check out the show nearest you! Visit www.JLCLive.com for more show information.

Providence, RI  April 3-5, 2003
Rhode Island Convention Center
4/3 Introduction to Business Management
4/3 On-Site Project Management
4/4 PREP    

Milwaukee, WI April 24-26, 2003
Midwest Airlines Center
4/24 On-Site Project Management
4/24  Scheduling
4/26 PREP     
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Get your CAPS at the Restoration and Renovation Show
NAHB’s Certified Aging-in-Place Specialist designation program will be making its first appearance at Restoration & Renovation 2003, the industry-gathering place for those who work in historic renovation, restoration, as well as traditionally inspired new construction. Online registration recently went live for the Spring 2003 Restoration & Renovation show taking place in Baltimore, MD, from March 19-21. CAPS classes have a tendency to fill up fast so, if you're interested in getting your designation, you would be advised to point your browser in this direction. [return to top]

Six ways remodelers can respond to the GL insurance crisis
It’s easy to wring your hands about the lack of availability and high cost of general liability (GL) insurance, but remodelers can do plenty to make themselves more attractive to those companies still writing GL coverage. According to Bruce Harrell, CEO of HBW Insurance Services, which provides warranty insurance services to the home building industry, effective risk management comes down to a few critical steps. In November, he told participants at NAHB’s Custom Builder Symposium what remodelers could do to make themselves more attractive to insurance companies.

  1. Maintain good documentation and records. Thoroughly document all aspects of the remodeling process. Complete records will be crucial to your defense if you ever find yourself being sued. Document all plans, materials, and schedules in addition to obvious items such as trade contractor agreement, certificates of insurance, and sales contracts. It’s especially important to having customers sign a change order for every deviation from the original plan.
  2. Transfer appropriate risks to trade contractors. Your trade contractor agreements should include “hold harmless” indemnity agreements and specify the required insurance coverage. Also include a waiver of subrogation, which protects you if trades get sued for work performed on your homes. Finally, include a clause mandating that all disputes will be resolved through binding arbitration. Demand that trades obtain certificates of insurance for each home on which they work — $500,000 of GL coverage is a good minimum, but $1 million is better.
  3. Manage supervisors with care. Implement a program to thoroughly train, retrain, and manage your site supervisors. They are your front line of defense in your risk management program, as they oversee construction quality and enforce job site safety procedures. 
  4. Make safety a priority. Follow all standard job site safety procedures to prevent falls and keep workers safe from other hazards. Also, you may not keep everyone out of the worksite, but you should always be able to demonstrate in court that you warned people to stay away. 
  5. Use a comprehensive contract. Have an attorney review all your contracts, and keep copies on file. Make sure your contracts contain strong arbitration provisions. Document all changes and have owners sign the change orders. Keep copies of change orders in the same file as the contract. 
  6. Understand the importance of customer service. Fix problems that arise before a claim can be made to the insurance company or before a lawsuit is filed. Proactively addressing problems will make a company more attractive to insurers.

All of these steps will help demonstrate your commitment to running your business safely, responsibly, and professionally. That makes you a better risk and can make it easier to buy affordable general liability insurance.

For more information on the broader issues surrounding general liability insurance and what builders can do to manage risk, read “The Liability Insurance Crisis for Builders: Reasons and Responses,” a comprehensive overview of the crisis prepared for NAHB by Cox, Castle, and Nicholson, LLP.
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Member Advantage: Get special discounts from Hertz®
Remodelors Council members can get deals on car class upgrades and one-way double upgrades, and discounts off weekly and weekend rentals from Hertz. For more information, call 800-654-2200. Be sure to use CDP No. 051046.

Click here to explore the numerous advantages associated with membership in your local, state, and national home builders association. [return to top]

For more information or to contact us directly, please visit www.NAHB.org l ©2003, National Association of Home Builders