Building Insight July/August 2020

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Table of contents

WHO WE ARE The Building Industry Association of Washington is the state’s largest trade association representing thousands of companies in the home building industry. BIAW is dedicated to ensuring and enhancing the vitality of the building industry for the benefit of its members and the housing needs of citizens.

BIAW STAFF Executive Vice President Greg Lane Government Affairs Director Jan Himebaugh R.O.I.I.® Select Director Jenn Kavanaugh General Counsel Jackson Maynard Administrative Services Director Jan Rohila

B U IL DI NG INSI G H T ED I TO R I A L STA F F Communications Manager Leah Jaber Writer and Editor Bailee Wicks Layout and Design Brenda Kwieciak

To submit editorial or advertise, contact

Furniture movers prepare to pack up the contents of the McCleary Mansion. BIAW offices will reopen Aug. 17 at their new headquarters, the Parkside Building, in Tumwater.


Habitat project offers needed training


New overtime rules begin July 1


Home building industry adds $16B to state’s economy

BIAW partners with Habitat for Humanity to help students with hands-on, onsite training

Employers will use two new standards to determine overtime rates

Study shows benefits include family-wage jobs, tax revenue for state and local governments


NEC new rules delayed L&I delays implementation of the 2020 NEC new electrical rules july/august 2020


President’s message Change can be stressful. It can be better or worse than the status quo. It can be exciting. Change is one word that describes my presidency so far this year. When I was inducted last fall, the future looked stable and predictable. This year, however, has seen home builders adapt to negotiated COVID-19 regulations, local associations challenged by social distancing, and a constant need to adjust to big and small changes.

Change can be a good thing

Sherry Schwab President

One significant change is the relocation of BIAW’s headquarters, which involved numerous smaller changes in project coordination and dates. In a few short weeks, BIAW will hold its first virtual board of directors meeting. BIAW committees and councils creatively re-scheduled member events like the annual Spike party and EIR Awards reception for the fall board meeting in November. The Master Builders Association of Pierce County is kicking off its Professional Women in Business Council, one of the first national virtual launches. Work continues on BIAW’s Strategic Plan, workforce development, policies, and bylaws documents. I am always grateful and in awe of work by our senior officers, member volunteers, and local and BIAW staff during these unprecedented times. By changing our way of thinking, we can look for non-traditional solutions to our industry’s ongoing challenges. For instance, during WWII, women were a vital sector of the workforce, stepping up to the labor challenges our country faced.

In today’s society, more and more women are attending trade school; many also hold office, or management positions in construction. Women often have an eye for detail and good n  2020 marks the 70th anniversary of BIAW hand-eye coordination and have done some of the best and the 100th anniversary of the ratification of cabinet work, painting, and drywall fieldwork I have ever the 19th Amendment, giving women the right to seen. During our current time of change and uncertainty in vote the home building industry, women can help be the labor n  Washington state was an early leader, giving solution once again. women the right to vote in 1910; black women Another example: construction companies are training were not fully enfranchised until 1965 with in-house and onsite to meet their company’s needs, and the passage of the Voting Rights Act, outlawing with the skilled labor shortage, more hands-on experience discrimination based on race has become a necessity. Recently, there has been a gradual shift to trade school, apprenticeships, and vocational training instead of the traditional 4-year college education. This is due in part to the rising cost of tuition and the high demand for skilled trades jobs; options are available.

Did you know?

Change is often necessary to make it through the tough times and, as in the past, our industry will rise to the challenge. So, in closing, I ask each of you: are you willing to consider a change? 4

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Workforce Development

Habitat project offers training for future workforce by Bailee Wicks Writer and Editor

The COVID-19 pandemic has brought about many challenges for workforce development, including Peninsula College in Port Angeles having to cancel all in-person classes, including skilled trades training and workshops. To fill the void, BIAW sponsored an Occupational Safety and Health Administration-facilitated training for four prospective skilled trades workers in partnership with the Habitat for Humanity of Clallam County Summer Build class. In addition to the class, the event also celebrated the ribbon-cutting ceremony of a Habitat for Humanity house located at the Maloney Heights development in west Port Angeles. Although it was a small training group, these potential future home builders, received hands-on training and on-site experience while building a Habitat home for a family in need. “This is a great example of how BIAW is partnering with members of the community to help fill our industry’s skilled labor shortage gap,” said BIAW Workforce Development Manager Al Audette. “Our members are in desperate need of skilled trades people and BIAW is working to help to fill that need,” added Audette. Kathy Long, one of the four trainees, has always loved to volunteer but found something powerful in using her hands and constructing things. “Now that I have finished the training, I can combine my love of volunteering with the knowledge I learned to help others,” said Long. To show their support, two students from last year’s training currently employed in the residential construction industry, also attended the event. As

BIAW sponsors skilled trades training in partnership with Habitat for Humanity of Clallam County.

a success story, both are currently employed in the residential construction industry. Christian Curtis, a trainee from last year, is now a contractor with Habitat for Humanity. “There is nobody to replace the retiring workforce, so I stepped in,” Curtis explained. “I hope more people go into the construction industry. I love it and want to see it flourish,” he added. Habitat is no stranger to the skilled trades workforce shortage, either. “We need home builders and tradespeople,” said Executive Director of Habitat for Humanity of Clallam County Colleen Robinson. “It’s important to let students and families know that a career in the skilled trades and the home building industry offers family-wage jobs. Home builders create homes and communities and are a necessary service to the public,” Robinson continued. As BIAW continues its efforts to help train and recruit a skilled trades workforce, we’ll keep you informed and updated on new projects and events. For more information about workforce development and how you can get involved, contact BIAW Workforce Development Manager Al Audette at (360) 352-7800, x105 or july/august 2020


Executive Vice President’s message When the COVID-19 pandemic began in late February, BIAW quickly started conversations with Gov. Inslee’s office as he was developing a “Stay at Home” order for Washington state. While it was tremendously frustrating that residential construction was not defined as “essential” in the governor’s initial Mar. 24 order, as it was in 45 other states, BIAW developed and implemented a comprehensive advocacy and media strategy designed to get the governor to modify his position on shutting down construction. This included utilizing strong partnerships between BIAW, all 14 of our local associations, and many other partner organizations. The combined efforts of all of these partners culminated successfully when Gov. Inslee authorized a restart of construction activities April 24, a full five weeks before any other industry received similar approval.

Greg Lane

Executive Vice President

As the pandemic has continued, BIAW has stayed focused on keeping you working safely on your jobsites by: n  Providing templates for all the required documents: jobsite safety plans, hygiene posters, safety training materials, and forms, to help get you in compliance with the new rules and working as soon as possible n  Producing webinars to help you implement the required jobsite safety plans and protocols n  Identifying reliable providers of PPE resources n  Championing tax relief for small businesses, including a deferral for B&O and property taxes n  Successfully advocating the State Building Code Council to delay the implementation of the 2018 Building Codes n  Advocating for the Department of Labor & Industries to deliver timely electrical inspections n  Providing 24/7 support to troubleshoot questions and concerns on stalled projects These past few months dealing with COVID-19 have taught us that it’s difficult to predict the future. BIAW strongly believes we must keep our economy open—and that we can also keep our communities safe. The construction industry is a prime example that both goals can be achieved together. Since construction restarted, statistics show our industry has not contributed to the increased cases of COVID-19. Why? Because our industry has taken the responsibility of staying safe on jobsites to protect employees and their families. Now, more than ever, we need everyone to join the effort to ensure our economy is not damaged further. To that end, BIAW is partnering with the Association of Washington Business on their ‘Stay Safe, Stay Open. Wear a Mask.’ campaign. To keep businesses open, and construction activities going, we need to wear masks on and off the jobsite. We’ve come too far to turn back. Please help keep our communities safe, protect jobs, and help our economy get back on its feet. To find out more about what you can do to keep our economy open, visit


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July 1 start date

New overtime rules begin July 1 by Bailee Wicks Writer and Editor

As an employer in Washington, July 1 often means new rules and regulations. This year is no exception. One new regulation employers must be aware of and implement is the overtime pay for “Executive, Administrative and Professional,” (EAP) employees. Previously, any employee that was considered “management” and earned a salary of $23,660 per year was generally exempt from overtime pay requirements. These employees could work over 40 hours per week and not be paid for the extra hours worked. Beginning July 1, 2020, this is no longer the case. Employers will use two new standards to determine if EAP employees must be paid overtime rates for any hours worked in excess 40 per week.

Compensation Standard

The first standard is based solely on compensation. The new salary standard for Washington employees is the same as the new federal standard. Any employee earning less than $668 per week or $35,568 per year must be paid overtime for hours worked more than 40 per week, regardless of job duty.

Duties Test Standard

The second standard is a “duties test,” which is subjective. For an EAP employee to be considered exempt from overtime requirements, his/her job duties (not just job title) must include management/supervision of at least two people, the ability to hire/fire, and other management-related duties. For an EAP employee to be exempt from overtime pay requirements, they must meet both, the salary threshold and duties tests. Otherwise, overtime pay (1.5 times the hourly wage) must be paid. Please note beginning January 1, 2021, and each year after that, the salary threshold will increase. For 2021, the threshold for employers with 1-50 employees will be $827/week ($43,004/year), and employers with 50+ employees the threshold will be $965/week ($50,180/year). The Department of Labor & Industries website has detailed information on the new overtime rules. Visit them at

july/august 2020


Human Resources

BIAW names R.O.I.I.® Select Director, staff changes by Bailee Wicks Writer and Editor

BIAW is excited to announce Jenn Kavanaugh as Director of the R.O.I.I.® Select program. R.O.I.I.® Select is BIAW’s retrospective group ratings program offered through the Department of Labor & Industries (L&I). Kavanaugh has been an employee with BIAW for over 16 years. Her experience working with the R.O.I.I.® Select team, advancing from enrollment coordinator, administrative, and marketing director, has led her to her new role as director of the program. “In 2020, as R.O.I.I.® Select interim director, Kavanaugh, led the Jenn Kavanaugh program to receive a 34% refund from L&I for the program’s 2018 plan year. She also organized the distribution of this year’s refund checks early, when they were critically needed to assist member participants during COVID-19 and the construction industry’s shutdown,” said BIAW Executive Vice President Greg Lane. “Her dedication and experience with the R.O.I.I.® Select program will undoubtedly continue its success in the program,” Lane added. Kavanaugh’s goals are to find additional ways to continue to add value to the program, including helping members develop safer companies utilizing the vast experience of the entire R.O.I.I.® Select team, and offering an array of educational opportunities.


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“The R.O.I.I.® Select program is in the best place it’s ever been, and that is due in part to my predecessors’ efforts,” said Kavanaugh. I want to refine what we’ve built together and lead the program to the next level. I believe the R.O.I.I.® Select team’s experience and knowledge are far superior to any of our competitors—and I want our members to be able to take advantage of this talent.” Kavaungh will also oversee the R.O.I.I.® Select staff, including claims, safety services, risk management, underwriting, and marketing departments. In addition to the appointment of Kavanaugh as Director, Michael Couthran was named R.O.I.I.® Select Assistant Director. Couthran has been with BIAW since 2017. His duties will involve working closely with the director and analyzing risk management of member companies in the program, among other responsibilities. Congratulations to Jenn, Michael, and the entire R.O.I.I.® Select staff. Michael Courthran The program and staff are in good hands and well-positioned to achieve success in the future.

It’s not too late—quarterly enrollment is open by Jenn Kavanaugh R.O.I.I.® Select Director

Although you may have missed the July enrollment period, R.O.I.I.® Select’s quarterly enrollment period is now open for the October 2020-June 2021 plan year. To get started and find out if you qualify, go to or contact us at (360) 352-7800 or

Commitment and dedication

The R.O.I.I.® Select team is made up of workers’ comp experts who are committed to safety, prevention, controlling costs, and helping participants navigate L&I’s daunting system. The best claim is no claim at all, but if a claim does happen, we provide support and share ways to prevent future claims from happening.

Transparent and affordable

We’re upfront about our program fees. Your annual fee is 1.5% of total premiums owed to L&I, or $150, whichever is greater.

We do not charge a group administrative fee. Other retro programs bury additional fees to pad profits and aid their bottom line. Our program fee is 10% of the group’s overall refund from L&I, and an additional 10% divided between BIAWaffiliated local associations. These fees support continuing education, government affairs, and the building industry as a whole.



Retro is a safety incentive program with a simple goal: eliminate injuries through improvements in safety and preventive strategies. If an employee is injured, help them get better quicker with a successful return to work experience. Companies that do this can earn a refund.

All-inclusive in-house services at no additional cost

You won’t find any other retro program that offers all these services at no additional cost.



R.O.I.I. Select’s strict enrollment criteria and innovative approach to workers’ comp ensures maximum group performance.



Changes at Parkside Building Renovation in final stages, move in target date set for Aug. 17

BIAW made a significant change back in January, where we closed the sale on the McCleary Mansion and immediately started renovation on our new location, the Parkside Building in Tumwater. Due to COVID-19related restrictions, remodeling and renovation plans remained on hold for over five weeks. Fast forward to Apr. 24. Gov. Inslee reopens Phase I for construction, and progress restarts, but the renovation schedule faces some major setbacks with supply and labor shortages. Despite these unfortunate delays, BIAW presses forward. As of press time, the new move-in target date of Aug. 17 should find us all settled in and officially up and running. The new facility is a much-needed change as BIAW staff outgrew our beloved McCleary Mansion. Our new location allows for the entire BIAW team to reside on one floor, allowing better staff collaboration and efficiency for all departments. The first floor houses two large conference rooms for meetings, classroom instruction, video production, archive storage, catering kitchen, and staging areas for events to keep up with our thriving association. BIAW looks forward to serving our members from its new headquarters. A huge thank you goes to Administrative Services Director Jan Rohila, Workforce Development Manager Al Audette, and Membership Manager Karen Hall for all the energy, hard work, and extra hours they devoted to the coordination of the office move-out, move-in and the new facility’s remodel and renovation.


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july/august 2020


Industry leads economic recovery

Home building industry adds $16 Billion to state’s economy

by Bailee Wicks Writer and Editor

According to a recent study commissioned by BIAW, Washington home builders are responsible for over 188,000 jobs and $16.1 billion in family income. This is based on the impact of 46,968 single-family homes built in Washington state in 2019. These new homes not only provide families with safe and comfortable places to live, but home construction generates considerable economic activity to support our communities and small businesses. The economic benefit of residential construction includes jobs and income for thousands of working families, and continued tax revenue for state and local governments. The study examined both the direct and indirect benefits of single-family home construction in 2019. In addition to jobs and wages, the report detailed the value local communities gain from occupied new homes, such as 12

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additional long-term tax revenue. The report demonstrates the vital role residential construction can play in recovering from the pandemic’s economic damage. From the moment the state shut down, BIAW recognized it was vital for the economy and workingclass families that the residential construction industry returned to

work as soon as possible. After working directly with Gov. Inslee and his workgroup, BIAW was able to get builders back to work five weeks earlier than any other industry; but our work is not done. Considering our state was See ECONOMY on page 13

ECONOMY from page 13 already facing a significant housing shortage, the pandemic has set back the industry’s new residential housing inventory even further. With historic low-interest mortgage rates and a booming housing demand, the home building industry can help lead our state’s economic recovery. State lawmakers need to support the residential construction industry by quickly passing regulatory and fee reform to encourage and incentivize our state’s economic recovery. For more information about the economic impact study and how you can assist in getting affordable housing legislation passed, contact BIAW Government Affairs Director Jan Himebaugh at (360) 352-7800, x135 or

Source: National Association of Home Builders

The economic study was conducted by the National Association of Home Builders and assumes that a new single-family home built in the State of Washington has an average price of $396,900; which includes $113,910 in raw land and $35,000 in impact, permit, and other fees paid to governments in the state; and incurs an average property tax of $2,801 per year (which considers the $125,000 homestead exemption). The estimates also assume that, an average, combined state and local sales tax of 9.18 percent is paid on construction materials.

july/august 2020


Effective date of 2020 National Electrical Code and 2020 WAC 296-46B has been delayed until October 29, 2020.

NEC new rules delayed by Bailee Wicks Writer and Editor

The Washington State Department of Labor & Industries (L&I) will delay implementation of the 2020 National Electrical Code (NEC) and new electrical rules through Oct. 28, in response to customer needs due to the COVID-19 outbreak. Existing electrical rules and the 2017 NEC will remain in effect until that time.

Heat rule goes here

In May, L&I adopted changes to the state’s electrical rules that will amend new safety codes, update and clarify existing rules, and make housekeeping and other rule changes. The changes affect “chapter 296-46B WAC Electrical Safety Standards, Administration, and Installation.” The new rules were scheduled to take effect on July 1. On June 30, L&I filed an emergency rule, CR103E and CR-103P, rulemaking order to delay the implementation of the new safety codes and rules. Please note, this delay only refers to the electrical code, which is different than the building codes adopted by the State Building Code Council (SBCC). All the codes adopted by the SBCC have a delayed implementation date of February 2021. You can review the rulemaking documents, including the emergency rule language at rulemaking-activity/?query=electrical. For more information, visit the L&I Electrical program’s rule development page at https://lni.


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Make sure employees are informed about the signs of heat illness. Prevention is the best approach to protect your workers.

To Do: Outdoor heat exposure prevention plan by Bob White R.O.I.I.® Select Safety Services Director

It’s summertime, and with it comes the construction industry’s busiest time of the year. As temperatures rise, physically demanding work, heavy clothing, and dehydration can put even the healthiest workers at risk for debilitating heat exhaustion and life-threatening heat stroke. Impairment caused by heat exhaustion can also make workers more susceptible to falls, equipment-related injuries, and other on-the-job safety hazards. Prevention is the best approach to protect your workers. Beginning May 1 through Sept. 30, all employers with employees exposed to outdoor temperatures must implement a heat stress program. An Outdoor Heat Exposure Prevention Plan must be part of your required Accident Prevention Program. Also, all training must be provided to employees and supervisors in a language they understand, prior to outdoor work, annually. For more information about how to keep your employees safe on the jobsite, visit the Washington state Department of Labor & Industries (L&I) webpage at workshops-events/beheatsmart.

Prevent heat illness with these simple steps n  Encourage employees to drink water frequently to ensure hydration n  Supply at least one quart of drinking water per employee per hour unless there is a potable water source on the job site n  Know the signs/symptoms of heat- related illness; monitor yourself and workers n  Block out direct sun or other heat sources n  Use cooling fans/air-conditioning; rest regularly n  Wear lightweight, light-colored, loose- fitting clothes

july/august 2020


Human Resources

BIAW adds to legal team by Bailee Wicks Writer and Editor

BIAW is pleased to announce the addition of Brooke Frickleton as Associate General Counsel. Before joining BIAW, Frickleton was an associate at Phillips Burgess Law in Olympia, specializing in land use, growth management, and legislative and municipal government. Frickleton studied at Gonzaga University School of Law, graduating cum laude, where she was president of the Women’s Law Caucus and served on the board for three years. She also worked in the law library as a legal research assistant and as an admissions ambassador. Before her time at Phillips Burgess, Frickleton interned with the Municipal Research Services Center, providing legal consultation to Washington state municipal entities. She is an avid Gonzaga basketball fan and attended the team’s first trip to the NCAA Final Four tournament. Go Zags!

BIAW welcomes Brooke Frickleton to BIAW’s legal team as Associate General Counsel.


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Please welcome Brooke as she joins our legal team, General Counsel Jackson Maynard, and Legal Assistant Nikky Castillo, serving BIAW members in land use issues, legal contracts, and the association’s bylaws and contracts.

Health Tips

Summer travel reminders by Bailee Wicks Writer and Editor

Our world has changed dramatically, and now that it’s summer, there are additional things to consider before leaving home to travel. It is crucial to think through ways to keep you, your family, and your community safe from the spread of COVID-19. Of course, staying home is always the surest way to stay safe, but after months of quarantine, many of us are anxious to see our loved ones, and social interaction can be vital for maintaining mental health. So if you plan to travel this summer, think about the following things before you hit the road: Check Travel Restrictions Ensure that you check the local, state, and federal travel restrictions for your destination and any locations you may be visiting. These regulations may change frequently, so be sure to keep an eye on them in the days and weeks of your trip. Evaluate the Risk Even if travel is legally allowed, it is essential to assess the risk factors for each individual you may come in contact with during your trip. People over the age of 65 or with compromised immune systems are two populations who are at high-risk. If you’re visiting others who have not been diligent about following social distancing guidelines or have essential jobs, they may pose a higher risk of spreading the virus to you and your loved ones.

Plan Ahead If you decide to travel, you and those you visit should take extra precautions in the two weeks leading up to your visit. Limit your exposure to high-risk situations. It is important to remain conscientious about maintaining social distance, wearing a mask, and washing your hands. Stay Diligent Once you arrive at your destination, remember to stay diligent about mask-wearing, social distancing, and handwashing to help keep everyone safe. As we learn more about COVID-19 every day, making informed decisions is vital to keeping your family, friends, and community safe and healthy. The BIAW Health Insurance program is proud to provide our members with high quality, affordable health insurance benefits. To learn more visit or call (425) 641-8093. july/august 2020


San Juan Building Association update

Local association hires staffer The San Juan Building Association recently hired Katie Schmidt as its new executive officer. With just 22 members and BIAW’s smallest local, Katie isn’t letting that stop her from implementing her big plans for the tight-knit island community.

BIAW welcomes Katie Schmdit, new executive officer for the San Juan Building Association. Schmidt is a Washington transplant originally from Chicago. She moved to the Pacific Northwest in 2008 to attend Gonzaga University School of Law in Spokane. After graduating in 2011, Schmidt was director of partner acquisition for Etailz, a startup tech company. It was Sand Juan Building Association Executive Officer Katie Schmidt. during this time she met her future husband, Jayson Schmidt, from San Juan Island. As they began planning their future, they both knew they wanted to raise their children on the Island. Jayson was extended the opportunity to work for his father’s construction company, and Katie explored options to apply her law degree in the real estate industry. They moved to San Juan Island in 2016 and fell in love with the area. How long have you been involved in the home building industry? Four years. Once my husband and I moved to the Island, he began working as project manager for Peter Schmidt Construction. I started helping in the office on the administrative side. What made you veer toward residential construction? Before Jayson and I moved to Friday Harbor, we completed a major remodel on our home in Spokane. I was fascinated with the transformation and details that went into making our vision come to life. From 18

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there, as I studied real estate, home building and construction became a natural part of the process. I knew learning more about the construction industry would help my career in real estate as well. What are your goals for the San Juan Building Association and the industry as a whole? I’m thrilled to be given this incredible opportunity to start with a blank slate and help make the association a beneficial asset to the community. Firstly, my goals are to build our membership by creating a website. I believe the site should be a resource for our members to help grow their business and client base, as well as a go-to resource for Islanders. Secondly, but unfortunately, the pandemic has restricted our ability to host social events; however, I am finding creative ways to organize virtual opportunities for education and information sharing. What are some of your hobbies? I love any chance to get outdoors. Whether it’s taking a hike, paddle boarding, hunting or fishingyou can count me in. We also have Cameron, an energetic 18-month-old boy, and another baby due Sept. 30. He, and his future sibling, will keep me pretty busy. What is your favorite thing about the Island? The Island community is, by far, my favorite aspect. Having moved around quite a bit, I have never found a community so loving and giving. Being a part of the San Juan “neighborhood” is like becoming a member of a great big family. People look out for you, support you, and have welcomed us with open arms. It truly is a special place to live. We also love the proximity to so many great travel destinations, Vancouver, BC, Sydney and other islands. You don’t have to travel very far to have a fun getaway.

Membership benefit

july/august 2020


BIAW EIR Awards Call for Entries July 1 - Aug. 31

Building Industry Association of Washington 111 21st Avenue SW | Olympia, WA 98501 (360) 352-7800 | |

Quality. Craftsmanship. Design. Innovation. Recognition. For more than two decades, BIAW’s Excellence in Remodeling (EIR) awards program has celebrated innovation in residential and commercial design. Awards are based on criteria including quality, craftsmanship, design excellence, innovation, use of materials, and land use challenges. A jury of professionals in building and design industries painstakingly blind-judge the projects submitted from throughout the state. Projects completed after Jan. 1, 2019 are eligible for consideration. The EIR awards entry process is completely digital this year. You may read the complete details of the program, register, submit entry forms, and upload images to the digital portal at The awards reception will take place Wednesday, Nov. 11, in conjunction with the fall board meeting. The fall board meeting is scheduled for Nov. 11-13, at the Hilton Vancouver. Projects that have been currently entered online, whether in-process (saved) or paid, will be transferred to the new schedule.

EIR Important Dates

Call for Entries..................................July 1 - Aug. 31 Judging Process..........................Sept. 11 - Sept. 20 Winners Announced (via email)..................... Oct. 1 EIR Awards Reception...................................Nov. 11

If you have any questions, please contact Brenda Kwieciak at (360) 352-7800, x113 or

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