February 2022 Building Insight

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Table of contents WHO WE ARE As the state’s largest trade association with nearly 8,000 member companies, responsible for approximately 188,000 jobs, we are the people who build, remodel and maintain homes. We create economic opportunity and strong communities. BIAW champions the rights of our members and fights for affordable homeownership at all levels of government.

BIAW MANAGEMENT Executive Vice President Greg Lane Education and Workforce Development Director Al Audette

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Communications Director Janelle Guthrie Government Affairs Director Jan Himebaugh Finance and Human Resources Director Stephen Hyer

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BIAW Contract Subscription Service helps protect against the unexpected New service will help builders and remodelers craft worry-free contracts for every project

Be brief, be bold, be real: Get involved in the legislative process Tips for talking to legislators

ROII Director Jenn Kavanaugh Association Services Director Brenda Kwieciak General Counsel Jackson Maynard

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BIAW’s “Cut the Costs” campaign reveals the hidden costs of housing BIAW to launch a digital advertising campaign to educate millennials on housing prices

BUILDING INSIGHT EDITORIAL STAFF Communications Director Janelle Guthrie Communications Manager Bailee Wicks

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Layout and Design Lena Anderson To submit editorial or advertise, contact communications@biaw.com.

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Building Insight is proudly printed by:

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Celebrate Career and Technical Education Month CTE provides academic and technical skills for students in Washington

BIAW, Cattlemen’s association fight capital gains income tax

BIAW and the Washington Cattlemen’s Association join forces to help challenge capital gains income tax

BIAW’s 2022 scholarship and grant application now open Deadline to submit scholarship and grant applications is May 2 february 2022

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President’s message Recently, BIAW Certified Builders gathered at our conference and training center in Olympia to learn about upgrades to the Certified Builder marketing materials and hear about BIAW’s new contract template subscription service. As we discussed issues in our businesses and in the industry, we talked about the lack of skilled workers available to help build the homes our state desperately needs to meet ever-rising demand. It’s a common complaint. That’s why workforce development is one of my four goals as your president this year. One of the best ways to build our skilled workforce is to educate youth about the opportunities and benefits in our industry.

Joseph Irons CAPS, CGP, CGR, CMG, GMR, BIAW Certified Builder President

February is Career and Technical Education Month I grew up with my father and oldest brother remodeling and building anything I could. Then, I started my own company when I was 22. I love building—and I’ve always loved building homes. But not every student has the opportunity to experience the rush that comes from building something from the ground up and seeing your work become someone’s dream home. That’s where CTE comes in. Students in our public schools need to know these jobs exist. BIAW is supporting a bi-partisan bill to make sure high school students working on their graduation roadmaps understand the variety of career paths available. We want to help them see residential construction and skilled trades are viable pathways to career success. A lifetime of learning As I mentioned in my recent BIAW Drill Down podcast interview, I started my business over 22 years ago with a passion for building and love of residential construction. But I needed some help to build a successful business—and that’s when I joined my local association, the Master Builders Association of King and Snohomish County. Our local associations, BIAW and NAHB offer great continuing education and certifications to make sure we are always at the top of our game. And now, I’m proud to give back to our profession as an instructor for these classes as well. It’s all part of the lifetime of learning in construction. BIAW Certified Builder: The next step in professionalism The next step for young professionals is becoming a BIAW Certified Builder. BIAW Certified Builders set themselves apart with a dedication to quality and skilled work, all backed by third-party validation. I’ll share more about the BIAW Certified Builder program during National Designations Month in March. While we place a spotlight on Careers and Technical Education in February, this month and every month, BIAW, NAHB and our local associations work to develop us and our future workforce. Thank you for joining me in supporting and advancing this work so we have the workforce we need to succeed!

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Legal Update

BIAW Contract Subscription Service helps protect against the unexpected by Janelle Guthrie Communications Director

It only takes one bad experience to learn the value of a solid professional contract. A good contract can save hours of time and thousands of dollars when you face unexpected challenges on a project. “I had an instance once where we completed a home, then two years later the homeowners were sued by their neighbors downslope and they named us in the suit,” said vice president of Cascade Custom Homes and Design, Inc. Jay Roberts, CGP, CGB, BIAW Certified Builder. “If we hadn’t had a good contract, we would have gone broke.” That’s just one of the reasons why BIAW created its new Contract Subscription Service, exclusively for builder members. With more than two dozen contracts and addenda drafted by one of Washington’s top law firms, this new service will help builders and remodelers craft worry-free contracts for common projects. “It’s been said that good fences make good neighbors,” said BIAW General Counsel Jackson Maynard. “Similarly, good contracts make good builders.” Your blueprint for the most commonly used contracts For just $399 plus tax for a two-year subscription, BIAW builders and remodelers will receive unlimited access to a suite of more than two dozen contracts and addenda. Covering most common construction needs, this subscription could help you save thousands of dollars in legal fees and legal headaches. “By the time I found out my contract was no good, I was already in the middle of a conflict,” said owner of John Erwin Remodeling and Custom Homes John Erwin, CAPS, CGP, CGR, BIAW Certified Builder. “And it cost me a whole lot more than $399.”

Written for Washington builders by Washington attorneys Prepared by expert attorneys familiar with Washington building industry’s unique needs, these contracts will be regularly updated with the latest legal mandates and case law so your contracts are always up to date. What you receive: n Templates for more than two dozen of the most common contracts and addenda n Online training n Easily downloadable, fillable documents to complete and save n Live training on specific contracts and their uses n Easy-to-follow instructions with every document n Discounted renewal fees Helpful for builders at all stages It doesn’t matter if you’ve never drafted a contract— or if you’ve been using the same one since you started in the business 30 years ago—the BIAW Contract Subscription Service will help you with contracts reflecting the latest legal requirements. “I’ve been building for 18 years,” said owner of Pleasant Ridge Construction Clint Adamson, BIAW Certified Builder. “Contracts are important to set up customer expectations so there are fewer unknowns and everyone is on the same page from the start.” The BIAW Contract Subscription Service launches March 1, 2022. Contact General Counsel Jackson Maynard at (360) 352-7800 ext. 108 or jacksonm@biaw.com for more information. february 2022

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Executive Vice President’s message During a legislative session, BIAW’s outstanding government affairs work garners most of the attention from our membership. However, our efforts at BIAW in other important areas on your behalf doesn’t stop during this time of year. Here are a few other items you don’t want to miss: Enroll in ROII I’m going to be blunt. If you own a business and you are NOT enrolled in BIAW’s ROII program, applying to participate could be the best business decision you make this year. Don’t know what ROII is? It’s BIAW’s workers’ compensation safety-incentive program, and I cannot encourage you more strongly to check it out.

Greg Lane

Executive Vice President

Not only can you receive top-tier refunds on the premiums you pay to the state for workers’ compensation, ROII offers unequaled outcome-based claims assistance, safety and prevention services, risk management services and return-to-work assistance. And all of these services are free of charge to ROII participants. ROII’s team of experts have your back year-round. At ROII.com, members and potential participants can calculate potential refunds with ROII, view their services, sign up for classes and connect on social media. There are clear benefits of being an ROII participant. Start taking advantage of those today! Defending your voice in the courts Back in September, BIAW and the Associated General Contractors of Washington (AGC) sued the governor to hold him accountable for illegal appointments to the State Building Code Council (SBCC). In that lawsuit, we requested access to public records. After receiving the records, BIAW’s legal team filed a separate lawsuit suspecting the governor’s office did not comply with providing all the public records that were requested, as required by law. In November, the Attorney General’s Office admitted a member of the governor’s staff had made a “misstatement of fact” in a sworn affidavit in the case. The staffer stated the office had received a nomination for the governor’s appointee for the residential construction seat on the state building code council, when in fact no such nomination existed. BIAW will continue our pursuit to hold the governor accountable. All we seek is for Gov. Inslee to follow the law and allow BIAW to represent residential construction and have our nominee and voice on the SBCC. Why is the cost of housing increasing? You all know that restrictions, regulations and roadblocks to housing supply over the last 30+ years are the reason housing prices are soaring astronomically. To help educate everyone, BIAW is launching “Cut the Costs,” a public media campaign to help explain why singlefamily homes are so expensive. This effort is to bridge the knowledge gap and create change in housing policy at the state and local levels. We can’t make housing more affordable by making it more expensive.

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Legislative Update

Be brief, be bold, be real: Get involved in the legislative process by Jan Himebaugh Government Affairs Director

As the 2022 legislative session continues, your BIAW advocacy team counts on you to help us reach legislators and share the real effects of their decisions on our industry and on the thousands of households trying to find homes they can afford. How to get involved As a reminder, BIAW has several ways you can get involved in the legislative process. n Hammer with Himebaugh: Don’t miss the award-winning Hammer with Himebaugh video update posted each Monday. That’s where I share the highlights of the week in five minutes or less. n Weekly bill action: Then be sure to visit our Government Affairs page where we post the bills we’re following that week and how to sign in to support or oppose those bills. Legislators look to see how many people are signing in as they make decisions on these bills. n Weekly Legislative Policy Committee calls: Every Tuesday at 7:30 a.m., the BIAW Legislative Policy Committee joins a conference call for updates from our lobbyists and in-house advocacy team. Want to join us? Contact Andrea Smith from my team at AndreaS@biaw.com and we’ll add you to the list. n Regular calls to action: Periodically we’ll reach out with specific calls to action. Watch for them and join us! n BIAW legislative reception: Join us for the BIAW “Hammers & Highballs” legislative reception starting at 7 p.m. on Tuesday, Feb. 22, at the Olympia Hotel during our Winter Board Meeting. This is your chance to meet legislators face to face to share your story.

Tips for talking to legislators Whether you’re meeting directly with your local legislator, testifying in committee or chatting with them at our legislative reception, remember these three important tips: Be brief: Think about your 30-second pitch and be ready to give it at any time. Include your name, your company, how long you’ve been in business, what you want your legislator to do and why it matters. Be bold: Be sure to ask your legislator for what you want—and be specific. Be real: Make a human connection by (briefly) telling your story and why building homes matters to Washington. Here’s an example: Ex: I’m Josie Smith of Homes Start Here Construction. I’ve been building homes for 30 years. We need your help to streamline the permitting process so I’m asking you to support SB 5964. This will help families save on average $20,000 in the cost of a new home. I became a home builder because I love building homes for the people in my community. I hope you’ll help me. Thank you for your time! Need help? We’re available to help you any time you need us. Contact me at janh@biaw.com. february 2022

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Public Media Campaign

BIAW “Cut the Costs” campaign reveals the hidden costs of housing by Janelle Guthrie Communications Director

Nearly every day, news outlets run stories on Washington’s rising home prices, blaming everything from lumber prices to bidding wars. Rarely do these stories reveal the true drivers—decades of land restrictions, red tape and regulatory delays on Washington’s housing supply. So, BIAW is delivering this message directly to those who need to hear it the most: Millennial homebuyers, eager to buy a home, but priced out due Washington’s home shortage. 225,000+ new homes needed A recent study revealed Washington needs at least 225,000 new homes to meet demand. According to the Master Builders of King and Snohomish Counties, King County has 0.38 months supply of inventory (down from 0.93 months of inventory a year ago). But it’s not just a Seattle thing. According to the Spokane Association of REALTORS, Spokane has a meager 10-day supply as of December 2021. 75% of Washington households priced-out In Washington state, the median new home price is $522,023, requiring a minimum income of $112,295 just to qualify for a mortgage. At that price point, more than 72% of Washington’s roughly 3 million households are priced out already. And for every $1,000 in added costs, 2,524 more households are unable to qualify for a new mortgage. A simple message BIAW has a simple message to potential homeowners: We need to cut the costs of homes across Washington by reducing barriers and building new homes. When there are more people wanting to buy homes than there are homes to buy, people pay more and prices skyrocket. 8

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Innovate, alleviate, accelerate Washington needs to innovate when it comes to land use policy. The housing restrictions in place over the last 30 years have driven us into this crisis and innovation can get us out. State and local governments need to alleviate well-intended, but poorly conceived regulations, impact fees and other costs associated with homebuilding and home ownership. State and local governments also need to accelerate permitting timelines that are delaying projects by 6.5 months on average. The National Association of Home Builders estimated all these costs combined add more than $124,000 to the bottom line of a home in Washington. It’s time to cut the costs. A multi-pronged approach BIAW is launching a digital advertising campaign to help millennials understand what is really preventing them from affording a home. We’ll expand upon the advertising campaign and leverage partnerships with local associations and others to increase our reach. Then we’ll be exploring innovative ways to help our audiences engage with our messaging on social media. Our goal is to help our audience understand the barriers to home ownership so they can make informed decisions in the future. For more information about the Cut the Costs campaign, visit CutTheCosts.com or contact BIAW Communication Director Janelle Guthrie at (360) 352-7800 ext.152 or janelleg@biaw.com.


ROII Safety Services

Sleep and accident mitigation by Bob White ROII Safety Services Director

Sleep is not just a luxury. Getting plenty of sleep is critical to your personal safety and the safety of your co-workers. Most people need 7.5 to 8.5 hours of sleep each day. Sleep loss built up slowly over several nights can be just as harmful as sleep loss in one night. Remind workers of the importance of sleep While no employer wants to dictate to their employees what they should or shouldn’t be doing while off duty, you can always remind them at safety meetings and toolbox talks about the need to get proper rest so they can come back to work refreshed each day. Your team should know that sleep deprivation not only affects their safety, it also affects the entire team. Lack of sleep negatively affects performance resulting in slower reaction times, failure to respond to changes and the inability to concentrate and make reasonable judgments.

What to watch for memory issues

trouble with thinking and concentration

mood changes accidents

weakened immunity

risk for diabetes

low sex drive

high blood pressure

weight gain

risk of heart disease

poor balance

Training employees to recognize the signs of co-worker fatigue can be the difference between life and death. For more information, contact ROII Safety Services Director Bob White at (360) 352-7800 ext. 109 or bobw@biaw.com. february 2022

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HAVE YOU SEEN THE NEW ROII WEBSITE? Check it out

We’re excited to announce that the new ROII website, built from the ground up, is now live! We are ecstatic with the results and think you will be too.

ROII.COM

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3 REASONS WHY

we’ve updated our site!

On the old website, you could only fill out an inquiry form. With the new website, you can calculate how much you could save with ROII, learn about our services, sign up for classes and connect with us on social media, all from our homepage.

ROII is always exploring new ways to be creative and innovative. We felt that our website should match that. You now have better access to web pages using the latest design trends providing an easier, better-looking way to learn what we do and who we are.

We know we already have a team of the most talented people, but we wanted to show you how awesome ROII is, and frankly, it was time for an update. Our website needed to showcase what sets us apart and why we are one of the best Retro groups out there.

This is only the beginning. We will be offering more options for current participants including ways to view their information, access to weekly safety topics, safety product reviews and even registration for our free safety classes available through the BIAW Education program. Our goal is to make it a one-stop-shop for all your needs, whether you recently enrolled in ROII or you’ve been enrolled for over 20 years.

Not already an ROII participant and want to be rewarded for safety in your workplace? July 2022-23 enrollment is currently open! Start earning an average of 37% on workers’ comp by getting started at ROII.com.

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Career and Technical Education Month

Celebrate Career and Technical Education Month by Bailee Wicks Communications Manager

February is National Career and Technical Education Month (CTE). CTE promotes and supports locally-based high school programs that provide 21st century, academic and technical skills for all students. CTE gives students the skills needed for postsecondary and workplace success. Modern education places a heavy emphasis on math, English and history. Although they are important, many feel those subjects should be presented with more real-world examples. That is where CTE comes in. Filling the labor shortage gap There is no debating the severity of the skilled labor shortage in the residential construction industry. Labor and subcontractor shortages remain widespread and continue to impact the industry in several ways. Simultaneously, the student debt load from a traditional fouryear path, pushed by educators, parents and society, has risen sharply. With vocational training removed from classrooms and a lack of trade education, it is time to present residential construction jobs as viable alternatives. Exposing students of all ages to the opportunities of a career in the 12

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skilled trades can help us tackle the shortage head-on. CTE programs are combating the labor shortage by integrating technical career skill proficiencies with academic content that prepares students for the workplace, further education and training. It also helps professionals in the education industry be aware of the best practices in recruiting people into the trades.

BIAW partnerships bridge gap for students BIAW is proud to partner with the Home Builders Institute (HBI). HBI is a national leader for career training in the building industry. Their curriculum provides students the skills and experience they need for successful careers through pre-apprenticeship training, job placement services, mentoring, certification programs, textbooks and curricula.

63% of Gen Z agrees that “COVID has made me reassess career goals.”

Seeing the shift Since the start of the pandemic, students have not had a stable learning environment. They were forced to learn online and once school started back in-person, rising cases threatened to send them back home again. All of this has more students questioning the path of a four-year university. According to a survey done by YPulse - the leading authority on Gen Z and Millennial opinions 63% of Gen Z agrees that “COVID has made me reassess career goals.” With so many seriously considering taking alternative paths, the time is right for CTE.

With an 80% job placement rate for graduates, HBI training programs are taught in local communities across the country, serving youth, veterans, displaced workers and other underserved populations. HBI training programs do more than provide job skills; they also build character and self-esteem, providing students with the skills they need to succeed on the job and in life. In just over a year, with the help of local association staff and members, BIAW Education and Workforce Development Director


RFUTURE RFUTURE FUTURE

Al Audette helped 14 local schools and districts partner with HBI curriculum.

partnership is just one of the works to supply teachers and and ure works to This supply teachers Future works to supply many thatteachers expose and students to a fectively educate students to effectively educate students ded to effectively educate students construction. career in residential Beyond the classroom BIAW prioritizes workforce development across all departments. One of the

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in schools that they may not be offering existing CTE pathways. Education and workforce development is a top priority for BIAW this year and we hope to see this bill progress. How you can help Member involvement is key to helping students statewide. It sounds simple, but reaching out to

Total student loan TotalTotal student loanloan student in theUnited United debtdebt indebt theinUnited the States estimated States is isestimated States is estimated morethan than at at more at more than 2 2 2 $1.7 trillion. trillion. $1.7 $1.7 trillion.

Formore more than For more thanthan 7 77 For straight years, straight years, straight years, construction construction construction skilled trades are skilled trades skilled trades are are the hardest roles the hardest roles the hardest roles 3 fill. fill.3 3 to fill.toto

1 local trades programs to volunteer, Restoring the Dignity of Work,affairs July 2018 1 bills our Restoring the government Dignity of Work, July 2018 Restoring 2 the Dignity of Work, July 2018 Board of Governors of the Federal Reserve System (US) 2 Board of Governors of the Federal Reserve System (US) attending job fairs or just signing Board ofdepartment Governors of theOwned Federal Reserve System (US) supports is HB 1162, Student Loans and Securitized, Outstanding [SLOAS] Student Owned and Securitized, Outstanding [SLOAS] ©2021 NCCER & BYF Student Owned and Securitized, Outstanding [SLOAS] 3Loans Loans 2019 ManpowerGroup U.S. Talent Shortage Survey ©2021 NCCER & BYF into bills to show industry support 3 ©2021 NCCER & BYF 2019 ManpowerGroup U.S. Talent Shortage introduced with the bi-partisan 2019 ManpowerGroup U.S. Talent Shortage SurveySurvey

support of Rep. Monica Stonier (D-Vancouver) and Rep. Paul Harris (R-Vancouver). This bill provides a performance-based pathway for graduation that expands students’ graduation pathway options by giving families more choices, flexibility and options. Giving students access to more performance-based options provides a connection to learning authentic real-world skills. As employers, we see an immediate and long-term need to connect students to the skills required in the workforce at a younger age. Creating more options for students to engage in the industry and perform skills to show competency can help them on their way to graduation. This is especially important for those who haven’t found a pathway that works for them yet. We see opportunity for CTE-related skills

makes all the difference. Please stay tuned for more opportunities to engage in your communities and at the state level to make the trades more accessible to students across the state. If you have questions about workforce development or how you can help fill the labor gap, contact Education and Workforce Development Director Al Audette at (360) 352-7800 x105 or ala@biaw.com. 1

Restoring the Dignity of Work, July 2018

Board of Governors of the Federal Reserve System (US) Student Loans Owned and Securitized, Outstanding [SLOAS] 2

2019 Manpower Group U.S. Talent Shortage Survey 3

BIAW’s Newest Certified Builder

Andrew Hines

Hines Homes, Founder | President North Peninsula Building Association With nearly 20 years of construction experience, Andrew (Andy) Hines started Hines Homes in 2014. His primary goal was that every homeowner would love where they lived. He achieves this through close, detailed work, including the homeowner every step of the way. Andy’s extensive experience working closely with homeowners in the skillful construction of a home from foundation to occupancy shows his exceptional gift for designing custom homes. He continues to deliver for his clients through ongoing research, and focuses on developing positive, long-lasting relationships.

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Legal Amicus Brief

BIAW, Cattlemen’s Association lend support to capital gains income tax case by Janelle Guthrie Communications Director

BIAW and the Washington Cattlemen’s Association (WCA) have joined in supporting the legal challenge to Washington’s new capital gains income tax. The groups filed an amicus—or friend of the court— brief in the case in late December. Another group, representing tax economists and policy analysts, including the Washington Policy Center, filed its amicus brief earlier that same week.

The hardworking business owners who make up our associations’ membership deserve to have their income taxed fairly, consistently and constitutionally.

“The hardworking business owners who make up our associations’ membership deserve to have their income taxed fairly, consistently and constitutionally,” said BIAW General Counsel Jackson Maynard. “We are proud to stand with other associations and point out all the terrible ways that this illegal and unconstitutional tax is also bad for businesses in our state.” Capital gains income tax effective Jan. 1 The new tax went into effect Jan. 1, 2022. It levies a 7% tax on capital gains above $250,000 from the sale of assets such as stocks and bonds. As a compromise, the Legislature exempted the sale of real estate, livestock and small family-owned businesses. If the courts fail to overturn it, first payments will be due in 2023.

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The amicus brief argues, among other things, the state treats capital gains differently than every other state and the federal government. This radical departure creates an undesirable inconsistency which will drive businesses out of our state. This could negatively affect tax revenue in the end. “If Washington lawmakers are willing to ignore the constitution now to achieve their Legislative agenda, will they do so again?” Maynard said. “No rational business owner wants to operate in an environment of legal uncertainty, under a tyrannical legislature that ignores constitutional limits on its power.” Briefs support case filed by former AG Two groups filed suits challenging the new capital gains income tax in spring of 2021. The first group was represented by the Freedom Foundation. The second was a group of farmers, business owners, investors and the Washington Farm Bureau, represented by former Washington Attorney General Rob McKenna. Douglas County Superior Court consolidated the two cases and heard arguments Feb. 4. We expect a ruling in the case soon, but anticipate an eventual appeal to the Washington State Supreme Court. For more information about the case, contact BIAW General Counsel Jackson Maynard at (360) 3527800 ext. 108 or at jacksonm@biaw.com.


Associate Spotlight: Ann Gusiff

Six strategies to help your business in 2022 by Andy Arrants Digital Production Manager

Marketing expert Ann Gusiff is no stranger to BIAW, having taught multiple classes to our members. In a recent episode of the BIAW Drill Down, Ann joined me to discuss strategies for business and marketing success in 2022. Here are a few of the highlights.

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Evaluate Start by taking a look at what you did in 2021, what your competitors are doing and what you need to do to ensure the leads keep coming in. These action items will assist you in planning and goal setting in the future. Consider your customers Managing customer expectations became more critical with all the supply chain issues in 2021, as did micro-managing building supplies and project timelines. Review with staff what worked well last year and what didn’t. If you had a staff meeting on this topic alone, you might be surprised at the ideas and insights. Develop a plan Don’t have a business plan? Now is a great time to tackle and implement one. What does success look like to you? You need more than goals. You also need to break them down into actionable tasks. Standardize operations If you have to think about what you need to do to post to Instagram or make changes to your website, you’re wasting energy unnecessarily. Do you have Standard Operating Procedures (S.O.P.) in place? Develop SOPs for all aspects of your business then just follow the step-by-step instructions each time, allowing you to think creatively about what really matters.

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Streamline your payment process How do you handle payments? What needs to be done to take that next step in running your business professionally? Making it easy for people to pay can be as simple as adding credit cards or online payments. Offering financing options can increase your close rate and the average ticket. Review your compensation structure Is staff turnover an issue for you? If you plan on growing your revenue, you’ll most likely be in the market for new talent. With the lack of available labor in the building industry, you may need to audit your compensation and consider adjusting if you want to keep the good employees you have and recruit new ones.

These are just a few of the ideas Gusiff shared during our discussion. Listen to her podcast on BIAWDrilldown.com for a deeper dive. Do you have a great idea for a future Drill Down topic or guest? Contact me at (360) 352-7800 ext. 147 or at andya@biaw.com.

Ann Gusiff is vice president of Growth for Openpay and the owner of Gusiff Marketing Group. An associate member of the Master Builders Association of King and Snohomish Counties, Ann is active in the MBAKS Remodeler’s Council as well as the BIAW Workforce Development Task Force.

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BIAW Scholarships: Apply Now!

BIAW’s 2022 scholarship and grant application now open by Bailee Wicks Communications Manager

This year, the BIAW Education program proudly offers $60,000 for the 2022 scholarships and grants program. Despite the impacts of the ongoing pandemic on communities, the economy and families, residential construction has been an economic hero in our state. The new year brings new opportunities to expand our workforce. There’s no denying the skilled trades labor shortage in our industry. BIAW is actively fighting this shortage by providing educational funding through grants and scholarships to students or programs that directly support our industry. The 2022 scholarship and grant applications are now open! Remember to submit your applications soon because the scholarship deadline is May 2, 2022. Scholarships and grants range on average from $500-$5,000. To access the scholarship and grant forms, please visit BIAW.com/program/ education. If you have any questions about the scholarship and grants, contact BIAW Certification and Education Manager Hillary Vanatta at (360) 3527800 ext. 106 or hillaryv@biaw.com.

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To apply for the scholarship, you must be: n A Washington state resident n Applying to attend or currently attending

a Washington accredited community, vocational/technical school or university

n Able to demonstrate a need for funding

in order to complete a program in a construction-related industry field of study

Grant application requirements: Organizations requesting funding need to contain a construction-related industry field of study, including but not limited to: construction career training, continuing education, apprenticeship programs and skills assessment programs.

DEADLINE: MAY 2, 2022


Healthcare Corner

You have an HSA—now what? by Michaela Gormley Director of Marketing & Communications at Capital Benefit Services, administrator of BIAW’s health insurance program

If you are like an increasing number of Americans, there is a good chance you have a Health Savings Account (HSA) as part of your health insurance benefits. But understanding how your HSA works can make a huge difference in getting the most out of your benefits. First, it’s important to know that an HSA is an account where you can save funds to be used for healthcare related expenses. In order to contribute to your HSA, it must be paired with a High Deductible Health Plan (HDHP). If you have benefits through your job, your HDHP and HSA were likely set up together, but check with your employer to be sure. Tax-free contributions One of the biggest benefits to having an HSA is that the contributions to your Health Savings Account via payroll deductions are tax-free. In addition, you will not pay tax on the distribution of the funds as long as they are used for qualified medical expenses. This means the money you earn and save goes further when used to pay for your healthcare needs. Both you and your employer can contribute to your HSA each year, but combined, your contributions must not exceed the annual limits set by the IRS. In 2022, the contribution limit is $3,650 if you are enrolled on a self-only plan or $7,300 if you are enrolled on a family plan.

Funds are yours to keep Another critical thing to know about your HSA is that the funds are yours to keep and roll over each year, as opposed to an FSA plan where the funds are “use it or lose it.” If you later change health insurance plans or even change jobs, your HSA funds are still yours, although your ability to contribute to the account may change. Additionally, most HSA administrators allow you to invest at least some of the funds in your account. This can be a great supplement to your current retirement savings plans and you should check with your HSA administrator for details. Expanded uses Most people know that HSA funds must be spent on qualified medical expenses like doctor visits or prescription drugs. But in 2020 the CARES Act expanded HSA eligible purchases to include over-the-counter medications and menstrual care products without a prescription. This adds another excellent benefit to having a Health Savings Account. Check with your HSA provider for details on how to take advantage of this provision. The BIAW Health Insurance program is proud to assist you in offering affordable health insurance benefits to your employees and their families. To find out more information or receive a free, no obligation quote, call at (425) 641-8093 or visit us online at BIAWHealthTrust.com.

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Workforce Development

Kitsap Building Association targets workforce from 2 to 24 by Janelle Guthrie Communications Director

The Builder Grant Program not only provides workers with education and a paycheck, it gives them a sense of belonging and camaraderie.

When it comes to workforce development, Kitsap Building Association (KBA) First Vice President Bob Disney of Disney and Associates knows today’s toddler is tomorrow’s tradesperson. Disney and his colleagues in Kitsap County offer experiences ranging from “Tractors and Tikes” and “Construction in Motion” to “Trades in Motion” and the “Builder Grant Program” to engage the future workforce from age two to 24. Construction in Motion/Tractors and Tikes Similar to “Dozer Day” events supported by the Central Washington Home Builders Association and the Building Industry Association of Clark County, “Construction in Motion” provides children in Kitsap County an opportunity to climb up on all sorts of construction vehicles, including dump trucks, excavators, bulldozers and more. Kids build toolboxes then receive t-shirts, 18

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hardhats and tools for their toolboxes. They also can take a floor joist walk and cheer on their favorite excavators in the annual excavator races. When COVID-19 caused KBA to cancel its 2021 Fall Home Show, as well as “Construction in Motion,” Disney shifted gears and launched “Tractors and Tikes” with all COVID-19 protocols in place. Roughly 1,200 people participated in the five-hour event at the Kitsap County Fairgrounds last fall.

“Despite COVID-19 concerns, we still had people lined up around the building,” Disney said. “Kids love to get up on the equipment, to hear the clanking of the machinery and to feel the rumble of the engines. It’s all about creating a lasting memory, and a catalyst as they think about their future. Some kids come back year after year with their toolboxes to participate in this event.”

More than 1,200 people came to “Tractors and Tikes” at the Kitsap County Fairgrounds


YouthBuild Kitsap and Kitsap Community Resources to identify participants. Funded through the US Dept. of Labor and operated by the Olympic Educational Service District 114, YouthBuild Kitsap teaches construction trades to students who have dropped out academically, giving them a fresh chance in the job market.

Kitsap County high school students learn from building experts as part of the 2018 Trades in Motion program.

Trades in Motion Fast-forward to high school. The KBA Trades in Motion program is a five-day hands-on educational opportunity with five focus areas: Carpentry, plumbing, electrical, painting/coating and HVAC. Students entering grades nine through 12 pay a $25 fee to participate. Then they’re broken into five groups of four who rotate through each trade with a mentor who gives them opportunities to learn through formal training and hands-on experience. Disney worked with former KBA Executive Officer Russ Shiplet to launch the program in 2018, and it’s continued from there. Now, local businesses support the program by funding the KBA foundation and providing lunch for the students. There’s even a tool giveaway at the end. “First, they get safety training then they learn about everything from painting to pouring concrete foundations,” Disney said. “Once they’ve gone through all the

trades, they build a dog house using the skills they’ve learned.” Builder Grant Program After high school, youth can apply for the KBA Builder Grant Program, connecting workers age 18 to 24 to six-week residential construction internships with local builders, remodelers and subcontractors. With an emphasis on carpentry, electrical, plumbing, painting and coating and HVAC, the year-round program provides a $250 stipend to successful applicants so they can get the tools and equipment they need to be job-ready. Workers then enter a six-week, paid job opportunity. If they’re successful, these workers receive another $250 at the end of the program as well as a certificate of completion and often a full-time job offer. According to KBA Executive Officer Randall King, the popularity of our program has generated numerous applicants through word of mouth. The association works closely with

KBA member companies who mentor workers receive $5/hour in wage reimbursement up to $1,200 to help offset the cost of the paid job training. They can then hire the newly trained workers. And many of them do! Disney has two young workers who started in the program on Jan. 31, 2022. And he’s hired three of them over the last several years. Last summer, he purchased a new tool trailer to support the YouthBuild program. The trailer is fully decked out with the YouthBuild logo and imagery— and the door includes a mirror, Disney said, so students can see themselves with a future in construction. “The Builder Grant Program not only provides workers with education and a paycheck, it gives them a sense of belonging and camaraderie,” Disney said. A member of the BIAW Workforce Development Task Force, Disney says he would love to see these programs replicated across the state. If you have questions about workforce development, please contact Education and Workforce Development Director Al Audette at (360) 352-7800 x 105 or ala@ biaw.com.

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Structural Warranty

How a structural warranty adds value for builders and buyers Contributed by Patti Nolan-Lento, Regional Vice President West, New Home Sales Division, 2-10 Home Buyers Warranty

No one expects a new home to have structural issues. Responsible builders and careful buyers always do everything they can to mitigate this problem. But when this unexpected event does occur, a structural warranty from 2-10 Home Buyers Warranty (2-10 HBW)—the industry leader in structural warranty coverage—can be a business and budget saver. Let’s see some ways a structural warranty adds value for builders and buyers. For builders and buyers, it can be a budget saver Building and buying a new home is expensive. For builders, each new home you build creates a long tail of liability. Because for each home you build, you’re responsible for guaranteeing that the home’s structure is sound. That kind of liability can really add up quickly. In fact, the average cost to address a structural defect ranges between $42,000 and $113,000 per claim. With a structural warranty from 2-10 HBW, you transfer those liabilities to us. If any of your covered homes faces a structural defect, 2-10 HBW’s industry-leading coverage protects your bottom line. Instead of having to find the money, time, and resources to address the issue, 2-10 HBW does it for you. That lets you do what you do best—build quality homes. For your buyers, a structural warranty protects their budgets, too. Because you’ve transferred your liabilities to us, your buyers don’t need to worry about trying to address covered structural issues themselves. When you protect your buyers’ budgets, it’s a great way to build trust.

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For builders, a structural warranty builds trust and provides third-party validation Buyers want to buy from builders they trust. Covering your buyers’ homes with a structural warranty from 2-10 HBW is an important step to building that trust. That’s because you’re telling potential buyers three things when you cover their home with a structural warranty from 2-10 HBW. Building a quality home matters, and I’m backing up my commitment to quality with a structural warranty. We’re working with and vetted by the industry leader in structural coverage. That means your home and budget are in the best hands. If something goes wrong with the structural integrity of your home, we have the best solution possible. When buyers have one less thing to worry about thanks to your 2-10 HBW builders warranty, it builds trust. Valuable third-party validation Additionally, a structural warranty from 2-10 HBW provides valuable third-party validation. Third-party validation is worth its weight in gold. To understand why, think about the last time you wanted to go to a new restaurant. You likely went online to see what the Google ratings were, and perhaps you sought out an expert’s opinion in a “Best restaurants” list. Now imagine how much more third-party validation a potential buyer will seek out when purchasing a new home from you. Working with 2-10 HBW provides that third-party validation, because builder


10 Number of homes built in a year

X $250K

= $2.5M!

Average sales price

Estimated yearly liability

2.5M!

$

Estimated yearly liability

X

10

=

Statute of Repose Years

25M!

$

Total Liability Tail

PARTNER WITH THE INDUSTRY LEADER THAT BUILDS QUALITY FROM THE GROUND UP, JUST LIKE YOU More builders choose 2-10 HBW for warranty services than anyone else. Our reputation for trust and reliability is second to none, and we never stop supporting your business’ success.

As the largest and most experienced warranty provider, we’ve seen more and covered more than anyone else. Our size and expertise means more resources to better serve you and your homeowners.

HOMEOWNER SUPPORT SOLUTIONS

A NATIONAL FOOTPRINT

Including front-end support services and systems and appliances coverage to help you eliminate calls.

Which means we can scale with you as your business grows.

COMPREHENSIVE CLAIM RESOLUTION PROCESS

A TEAM THAT UNDERSTANDS LIABILITY

A team of professionals to guide your homeowners from the first call to the final repair.

Most of our reps are licensed P&C agents who understand how insurance complements a warranty.

ENGINEERING AND RISK MANAGEMENT EXPERTISE

A NETWORK OF PARTNERS

We’ve got more than anyone else. In addition to being part of the group that sets industry standards, we’re available for guidance throughout the building process.

LOCAL REPRESENTATIVES That know your area’s soil, common claims and competition. From onboarding to ongoing training, we’re in your market and here to help.

Save money on business-critical services by leveraging our relationships with industry professionals, including GL insurance carriers, agents, attorneys, engineers, customer experience solution providers and technology suppliers. 2-10 HBW | You Build It, We’ll Back You Up

members must meet certain criteria to work with us. And when the industry leader vouches for you, it goes a long way in proving that you provide added value. For buyers, a structural warranty affects their buying decision When buyers understand what a structural warranty does for them, it can affect their buying decisions. Consider two important facts about how buyers view structural coverage.

These facts alone motivate many builders to cover all their homes with 2-10 HBW. You can give buyers something they really want and give them the best possible version of what they want. When you’re speaking to your buyers’ needs before they even ask, it shows how much you understand them. Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty. Visit 2-10.com.

Four of five buyers value a third-party, insurancebacked structural warranty. 94% of prospective buyers say that they’re more likely to purchase a new home from a builder who offers a structural warranty, according to a joint survey from the National Association of Home Builders and 2-10 HBW.

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Local Happenings

[1] Certified Builders Clint Adamson (l) and BIAW President Joseph Irons pose for photo before a sneak peek of BIAW’s new Contract Subscription Service.

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[2] BIAW President Joseph Irons interviews with KING 5 on the high cost of homes in Washington. 1

[3] BIAW Membership Manager Karen Hall presents Master Builders Association of King and Snohomish Counties (MBAKS) Membership Manager Colby Goodman with their Membership Monopoly award celebrating a 91.6% retention rate during their first general membership networking event of 2022.

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[4] (l-r) ROII Marketing Field Representative Jan Rohila, Melissa Irons and Dee Coppola enjoying the festivities during the Kitsap Building Association’s Installation and Awards Ceremony.

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[5] Master Builders Pierce County members, local officials, Habitat for Humanity volunteers and BIAW staff helped raise the walls on the house that Kevin, Chansorya, and their four daughters will eventually call home.

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[6] Home Builders Association of TriCities members (l-r) Kristen Mesner, Yakima Federal; Toni Bill, Kie Supply; Jeff and Debbie Williams, Skyline Machinery Sales; and Julie Keller, Great Floors, enjoy the first in-person membership meeting of 2022.

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[7] Family and friends celebrate the installation of Miriam Villiard as KBA president. (l to r) Miriam’s son Hurley, husband Ardi and Anna Aguis.

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[8] BIAW Executive Vice President Greg Lane (l) and BIAW President Joseph Irons (r) present Home Builders Association of Tri-Cities Executive Officer Jeff Losey with BIAW 2021 Membership Monopoly Retention Rate Award and a $2,500 cash prize.

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2022 WINTER BOARD MEETING

FEBRUARY 21-23 Olympia Hotel at Capitol Lake (formerly Hotel RL)

General Membership Luncheon

Tuesday, Feb. 22 | 11:30am | $35 pp | Ballroom BIAW invites members and guests to attend the general membership luncheon. Attendees will hear from legislative insiders on the 2022 session.

Builder Appreciation Awards presented by the Associate Advisory Council

Tuesday, Feb. 22 | 11:30am | Membership Luncheon Help us honor those builder members nominated by local associations for their state, local and community contributions in 2021.

“You’re Not on Mute Anymore” An IRL Social Hour—open to all! Tuesday, Feb. 22 | 6-7pm | Ballroom

Miss seeing people IRL (in real life)? It’s been a couple of years since we met in person in Olympia! Join us for conversation, appetizers and beverages.

Legislative Reception: Hammers & Highballs

Tuesday, Feb. 22 | 7-9:30pm | Ballroom Here’s your chance to visit with new legislators and established leadership. Visit your lawmakers oneon-one and discuss policy decisions that impact you, your employees and your business.

2021 Spike Awards

Wednesday, Feb. 23 | 9am | Ballroom Board of directors meeting Join us as we celebrate BIAW’s 2021 top membership recruiters. We’ll also reveal and present our Top Spike with the coveted Omar Brown Award for the member with the most recruits in 2021.

More Information:

BIAW.com/board-meetings

Building Industry Association of Washington 300 Deschutes Way SW, Ste. 300 | Tumwater, WA 98501 (360) 352-7800 | BIAW.com |


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