2
SPRING MEMBERSHIP DRIVE
HEALTH CARE CORNER
INCENTIVES INCLUDE CASH PRIZES FOR LOCALS
TAKING CONTROL OF YOUR HEALTH CARE COSTS
It’s official: the National Association of Home Builders’ (NAHB) 2019 spring membership drive is underway! Recruiting new members to your local association is an activity recognized and rewarded through BIAW and NAHB. Those who participate and recruit are among the most valued members of our association. Spikes and recruiters are the membership leaders of BIAW, building the voice, power, and influence on every level.
With monthly insurance premiums and annual deductibles seemingly always on the rise, being a smart health care consumer is now more important than ever. Thankfully, companies across the industry are creating innovative new ways to shed light on the often opaque pricing and quality scores of local hospitals and physicians.
RECRUIT NOW SHOP AROUND
WHY RECRUIT IN THE SPRING?
BIAW members who recruit new members can earn special rewards only offered by NAHB during their spring membership drive. Incentives include: n Triple Spike credits n Access to a VIP area at the 2020 IBS Closing Concert—includes open bar and food! n A cash incentive for local associations with a net annual growth of at least five members (based on local association net growth of total membership from Dec. 31, 2018). Last year, BIAW local associations earned a whopping $4,690. “If you’re going to recruit new members, this is the best time of the year to do it. You’ll not only receive triple Spike credits, but your local association can earn cash to reinvest into membership programs and benefits,” said BIAW Membership Chair LouAnne Neill.
SUPPORT SERVICES
NAHB.org offers many support services for local associations to grow their membership, including Third Tuesday Townhalls (a free monthly webinar), toolkits, and the Onboarding Program. BIAW local associations planning to participate in the Spring membership drive are required to register with NAHB to receive triple Spike credits and incentives. BIAW conducts monthly membership marketing conference calls for our local associations to share their best membership marketing practices and ideas. So, let’s get out there and have a great spring membership drive. Your recruiting efforts could earn your local association big money! For more information, contact BIAW Membership Manager Karen Hall at (360) 352-7800 or karenh@biaw.com.
BUILDING INSIGHT BIAW.com
COST OF SERVICES
For starters, health insurance carriers are getting into the game by providing cost estimators for common services such as knee surgeries and delivering a baby—before making appointments. On the provider side, many local medical facilities provide online tools to find upfront pricing for a variety of their services. The continued pressure from consumers force more pricing transparency as a few short years ago this type of data was not readily available.
QUALITY OF CARE
While costs are an important factor in selecting the right provider, ensuring top quality service is also important. Companies such as Bellevue-based MPIRICA.com offer quality scores on thousands of surgeons and hospitals throughout the country, taking into consideration both cost and quality of care. The LeapFrogGroup.org is another service keeping tabs on providers by issuing an annual safety score for hospitals throughout the country. The analyst group grades hospitals based on how safe they keep their patients from errors, injuries, accidents and infections.
INFORMED DECISIONS
Now more than ever, there are numerous tools to help you make educated and informed decisions on how best to use your health care dollars. Taking the initiative and using these tools is the first step in controlling your health care expenses.
FIND OUT MORE
To find out how BIAW’s Health Insurance program can help you save on quality health insurance, call BIAW’s health insurance program administrators at Capital Benefit Services at (425) 641-8093 or visit us at BIAWHealthTrust.com.
//BUILDING INSIGHT | BIAW.COM
CONTENTS // // SPRING MEMBERSHIP DRIVE 2
// SESSION ADJOURNS 5
WHO WE ARE
The Building Industry Association of Washington is the state’s largest trade association and represents nearly 8,000 member companies in the home building industry. Known as the “Champions of Affordable Housing,” 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.
2019 SENIOR OFFICERS President Rick Hjelm, CGR MBA of Pierce County First Vice President Sherry Schwab MBA of King & Snohomish Counties Second Vice President Chris Lockhart MBA of Pierce County Treasurer Tracy Doriot BIA of Clark County
// ECOLOGY OVERSTEPS 7
// BIAW FILES AMICUS BRIEF 10
Secretary LouAnne Neill HBA of Tri-Cities Immediate Past President Kevin Russell, CGP North Peninsula Building Association BIAW STAFF Executive Vice President Greg Lane
// ADDICTION HITS HOME 12
// FOCUS ON QUALITY 14
Government Affairs Director Jan Himebaugh
PRESIDENT’S PERSPECTIVE
EVP VIEWPOINT
General Counsel Jackson Maynard
4
6
R.O.I.I.® Select Director Mark Shaffer
PATH A OR PATH B? It’s never too early to plan your retirement
HOME COSTS TO RISE Administrative Services Director Affordable homeownership opportunities fall short this session Jan Rohila
Communications & Public Relations Director Jennifer Spall CONTACT THE EDITORIAL STAFF On the Cover: R.O.I.I.® Select staff celebrates a 43 percent first adjustment refund for the 2017-2018 plan year.
Want to submit an article for publication? Have a story tip or suggestion? For consideration, please email communications@biaw.com
MAY ’19
VOL. 29, ISSUE 5
IT’S NEVER TOO EARLY TO PLAN YOUR RETIREMENT
PRESIDENT’S PERSPECTIVE
PATH A OR PATH B?
4 During my remarks at the BIAW fall board meeting in November, I mentioned I was in the final stages of transitioning the leadership of my business to my brother Ron and my lead designer Tara. The obvious need for the change began when I developed heart problems, caused by stress, genetics, and a voracious desire to find the best barbecue on the planet. Since then, I’ve had several of you stop me at meetings throughout the state and ask me for more information // RICK HJELM about how and what it took to get the transition process started. PRESIDENT First and foremost, I’m not an expert on the subject but I can share a little of what I’ve learned in the process from past business coaches and mentors (Merlins). The following is a Cliffs Notes version of what I’ve learned and read.
ARE YOU A PATH A OR PATH B BUSINESS OWNER?
In an article written in the 90s by Joel Stopha of JCS Concepts, he describes two types of business owners: Path A and Path B. It’s easy to see which one you are or who you work for. Path A is a business developed by you, the owner, and relies on your skills. Path B is a business, and although you are still the owner, developed and run independently of you. Path A business owners are usually perfectionists and have a need to control their environment and keep the day-to-day operations close to their chest. They usually live by the mantra, “If you want it done right, do it yourself.” What they’re really saying though is, “If I want something done my way, I want to do it myself.” Thousands of small businesses are run this way, and most are very successful. But the downfall is when Path A owners try to sell their business, they quickly learn that instead of having built equity in their business, they’ve built equity in themselves. Some are fortunate enough to sell, but in this example, most are required to stay on for a considerable amount of time to mentally download what they have in their head to the new owner. Instead of satisfaction at the end of the sale, they experience exhaustive relief. Path B business owners, on the other hand, do not rely solely on their own talents but tap into the skills and talents of others. They identify and develop potential leaders into actual leaders who can handle the business when they are not around. They develop systems and procedures that guide their leadership to move forward without micromanaging. Path B owners set goals, not just for the business, but for themselves. They look to the future and set a date when they can be ‘phased out’ and work toward that goal. McDonald’s founder Ray Kroc is a perfect example of working on instead of in the business. In the end, Path B owners have a business that can be sold. Path B businesses usually have a bigger pool of potential buyers because they offer proven systems and processes. A buyer who purchases a Path A business soon learns that what they bought was a job, not a business. I finally began to think how
Plan B business owners thought about their future and realized I wanted to go there, too.
WHAT DOES THIS ALL MEAN?
Many BIAW members I’ve talked with are currently where I came from: the perfect Path A, possibly A+, business owner. It took a 2x4 hit to the side of my head to realize that instead of thinking vertically, where everything was about me and my ideas, that things needed to change. With a trusted coach and plenty of time, I slowly began to let go and think horizontally. I finally began to think how Plan B business owners thought about their future and realized I wanted to go there, too. It’s been a little bumpy, but well worth the ride.
TAKE THE FIRST STEP AND GET STARTED
In closing, if your retirement goals are based on your business providing you with the See PATH on page 13 //
BUILDING INSIGHT BIAW.com
5
TAXES AND MORE TAXES
SESSION ADJOURNS LAWMAKERS’ RECORD-BREAKING BUDGET AND TAXING SPREE GIVE LITTLE RELIEF FOR BUILDERS
With one minute to spare, a record-breaking $52.4 billion budget was passed along party-lines by lawmakers. It is an $8 billion increase, or 17 percent, more than the current two-year budget cycle. This budget also completely exhausts a $5.6 billion (tax collection) windfall, and includes an additional $2.5 billion in new taxes.
DID WE MENTION TAXES?
The budget includes a graduated Real Estate Excise Tax (REET), giving Washington state the highest rate in the country for certain properties. We will also see massive B&O taxes (on services and large banks) as well as gas // JAN HIMEBAUGH and energy tax increases. GOVERNMENT The legislaAFFAIRS DIRECTOR ture also dismantled last year’s McCleary fix, the K12 education lawsuit that required the state to fund basic education to address local educational inequalities. Unfortunately, on the last day of session, lawmakers passed a “levy lid lift” bill that allows school districts to return to “pre-McCleary” days where they can use additional local property tax levies to fund education. The state should expect to find themselves back in a McCleary- type lawsuit once those levies are bargained
BIAW Government Affairs Director Jan Himebaugh (right of the Governor) and MBA of King and Snohomish Counties Executive Director Kat Sims (far right) attend the signing of SB 5334, Condo Liability Reform.
into teacher salaries, only this time it’ll be even more expensive. Also, tucked into the budget, is funding for an Environmental Justice Task Force. We will be working with the Governor’s office with regard to the mission and makeup of this committee to ensure the homebuilding industry is represented.
TWO SMALL CONSOLATIONS
What didn’t make the tax hike cut? The proposed capital gains tax. Ruled by the IRS and multiple courts as an income tax, unconstitutional in the state of Washington, lawmakers failed to pass it. However, millions of dollars have been allocated to the Department of Revenue for the implementation of new taxes, as well as to study ways to make Washington state’s tax code more “fair.” What also failed, was a proposal to increase the insurance premium tax which would have helped to fund wildfire suppression and prevention. This would have increased the cost
of purchasing all nonmedical related insurance–from auto to homeowners to general liability, and contractor bonds.
SOME BRIGHT SPOTS
Not all news is bad in Olympia. BIAW would like to thank Senators Jamie Pederson (D-Seattle) and Mike Padden (R-Spokane Valley) for their leadership on SB 5334, Condo Liability Reform, which passed the House and Senate unanimously. BIAW staff were in attendance when Governor Inslee signed the bill April 30. This bill will help revise overreaching condo warranty liability from the 90s and allow for new condo construction in Washington. It’s not a silver bullet to the housing crisis in our state, but it is another option for consumers seeking a path to affordable homeownership, by increasing supply and options for families of all sizes and incomes. Condo liability reform was a See ADJOURNS on page 13//
MAY ’19
VOL. 29, ISSUE 5
AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES FALL SHORT THIS SESSION
EVP VIEWPOINT
HOME COSTS TO RISE
6 LEGISLATIVE SESSION ENDS
The best thing I can say about the 2019 Legislative session is that it is over. This session was a difficult one for our industry by any standard, but BIAW Government Affairs Director Jan Himebaugh and our contract lobbying team did a phenomenal job fighting on your behalf. Along with all of your help, we were successful in killing the contractor liability bill, as well as a litany of other anti-housing // GREG LANE policy legislation. Jan also led the effort to shepherd through condo EXECUTIVE liability reform to become law. VICE PRESIDENT The session’s final weekend, however, was the low point, as lawmakers approved a budget that jumped spending $8 billion–a whopping 17 percent increase over the last biennium. This included not only exhausting a $5.6 billion tax revenue windfall, but also imposing an additional $2.5 billion in new taxes. Frankly, the mindset that taxes should be increased despite record revenues is of grave concern. The appetite to spend without regard to taxpayers–or the price of homes–is simply insatiable. Two-thirds of Washingtonians opposed tax increases, but they were raised regardless. From a graduated Real Estate Excise Tax (REET) to a massive B&O increase, and from a new gas tax to allowing local school districts to once again increase local property tax levies (undoing the historic McLeary levy reforms after just one year), what do all of these tax increases have in common? All will increase the price of homeownership. Lawmakers began the 2019 session by voicing concern for the skyrocketing cost of housing. Then they spent all session long making the problem worse. Layer upon layer of additional taxes on businesses, taxpayers, and families seeking a path to affordable homeownership. With the average cost of a new home in Washington now at $505,729, sadly, only families in the upper income brackets can afford to own a home in our state. We need to keep asking our state lawmakers, “How do you make housing more affordable by making it more expensive?”
R.O.I.I.® SELECT OUTPERFORMS AGAIN
The close of April brings with it our final adjusted R.O.I.I.® Select plan numbers and we are excited to announce the results. R.O.I.I.® Select earned a 43 percent first adjustment refund for the 2017-2018 plan year (PY)! Additionally, R.O.I.I.® Select’s second adjustment for the 2016-2017 PY came in at an impressive 41 percent, and finished the 2015-2016 PY with a 36 percent refund. I want to thank R.O.I.I.® Select Director Mark Shaffer and his team for all of their hard work to deliver this result! As the oldest and largest construction retro group in Washington state, R.O.I.I.® Select has returned more than $500 million in refunds to participating members since 1982. We’ve delivered consistently for members and in our 37-year We need to keep asking our state history, not one R.O.I.I.® Select participant has ever paid a penny of premium (penalty). lawmakers, “How do you make additional ® R.O.I.I. Select is managed in-house at BIAW, with no third-party housing more affordable by fees and no extra service fees charged to member participants. And we have consistently had higher returns than all competing making it more expensive?” construction retro programs in the state. If you are not enrolled in a retro program, or if you are a member of a competing program, you are missing out on the highest refunds in the industry. Go to BIAW.com/ ROII to learn how to join. Open enrollment continues through May 17. See COSTS on page 11 //
BUILDING INSIGHT BIAW.com
7
PRELIMINARY PROPOSALS
ECOLOGY OVERSTEPS ECOLOGY’S PROPOSED WITHDRAWAL STANDARDS CURTAIL EXEMPT-WELL USAGE BY MORE THAN 80%
The Washington state Department of Ecology (Ecology) will be accepting preliminary public comments on its Water Resource Inventory Areas (WRIA) 1 Nooksack rule until May 10, us// JOSIE CUMMINGS ing them to shape their REGULATORY AND proposed GOVERNMENT rulemaking AFFAIRS MANAGER scheduled to start late fall. WRIA 1 includes the Nooksack River basin and several adjoining smaller watersheds, such as the coastal drainages of Dakota and California creeks, as well as Lake Whatcom. As the now infamous Hirst decision originated out of this area, landowners will want to ensure their properties and future homes will have access to water. After the Hirst fix bill was approved by the legislature in early 2018, lawmakers required the Nooksack rule watershed planning be updated and meet standards such as net ecological benefit, estimates for future uses of wells, and identify shovel-ready projects that could be created to help with potential offsets. When the WRIA 1 watershed planning committee was unable to adopt a plan through con-
sensus and their recommendations were forwarded to Ecology for preliminary proposed rulemaking. Ecology incorporated some of these suggestions into their recommendations. However, Ecology’s preliminary language for the proposed rule drastically limits water use and will have a huge impact on new residential construction and the way of life for landowners who want to build homes for themselves and their families. Currently, homes on domestic permit-exempt wells (household wells or anything not on a water system) in open basins are allowed to use up to 3,000 gallons of water per day, up to a total of one-half acre of land. Ecology proposed new withdrawal standards state: n Withdrawals shall not exceed 500 gallons per day, up to a total of 1/12th of an acre n Upon the issuance of a drought emergency order, withdrawals shall be curtailed (but just how much is not mentioned) n Ecology reserves the right to require metering n Under all circumstances, water use limits shall not be exceeded These limits do not take into consideration that the average person uses between 80-100 gallons of water per day. Imagine a family of five building a home and being restricted to limited shower use, laundry duties, etc. Domestic wells equate for just 1 percent of the state’s water WRIA 1 aggregated subbasins within Whatcom and Skagit counties. use and this type of extreme regulation will hurt our rural communities and families who dream of building a single-family homes. BIAW is working with Building Industry Association of Whatcom County staff on drafting comments and will submit them to Ecology. We will continue to keep you updated on the preliminary proposed rulemaking process. If you are interested in submitting your comments to Ecology, please contact me at (360) 352-7800 or josiec@biaw.com.
MAY ’19
VOL. 29, ISSUE 5
8
IT’S NOT TOO LATE
THE NUMBERS ARE IN
MEMBER PARTICIPANTS COMMITMENT TO SAFETY, INJURY PREVENTION = CONSISTENT REFUNDS
BIAW is proud to announce its retrospective rating group, R.O.I.I.® Select, earned a 43% first adjustment refund for the 2017-18 plan year! In addition, R.O.I.I.® Select earned a 41% refund for the second adjustment for the 2016-17 plan year. And, we finished the 2015-2016 plan year with a 36% refund. BIAW and R.O.I.I.® Select will be receiving a check for $39,364,247—the largest refund check in R.O.I.I.® Select’s history. We know we couldn’t achieve these consistent and dependable results without the hard work, commitment to safety, injury prevention, and controlling costs from YOU our member participants. On behalf of the entire BIAW staff, thank you for your support of R.O.I.I.® Select and our association. It’s not too late to enroll! If you’d like to start earning refunds for your company and see if R.O.I.I.® Select is right for your company visit BIAW.com/ROII or contact us at (360) 352-7800 or enroll@biaw.com.
THE S T RESULN ! ARE I
2017-2018* REFUND
“ACME, Inc.”
GROUP
Based on $40,000 standard L&I premiums with no losses
R.O.I.I.® SELECT
%
“ACME”
$
43% $17,200
Other retro programs
2016-2017* REFUND GROUP
%
“ACME”
$
41% $16,400
2015-2016 REFUND GROUP
%
“ACME”
$
36% $14,400
Find your group and compare at: https://bit.ly/2ZVqKpu
*Plan year not complete. Individual company refunds will vary. Source: L&I Summary of Results - 4/25/2019 Adjustment.
TOP REFUNDS
Dependable, consistent performance
NO THIRD PARTY ADMIN FEES In-house workers’ comp experts
We offer all these additional services at no extra cost: OUTCOME-BASED CLAIMS ASSISTANCE
RETURN TO WORK OPTIONS
SUPERIOR SAFETY SERVICES
INVESTIGATIONS & LITIGATION
RISK MANAGEMENT STRATEGIES
L&I AUDIT ASSISTANCE
BUILDING INSIGHT BIAW.com
9
TAKE THE NEXT STEP AND GET STARTED WITH R.O.I.I.® SELECT n Go to ROIISelect.com and complete the online inquiry form n We’ll review your premium and loss information and let you know if you’re
a good fit for R.O.I.I.® Select n You’ll also receive a refund calculation showing you how much you could have Enroll@BIAW.com BIAW.com/roii earned if you(360) were352-7800 enrolled It’s that easy!
DON’T TAKE OUR WORD FOR IT
R.O.I.I.® SELECT GROUP REFUND
42%
— Kirk Koskiniemi, Ibex Roof, Vancouver
2014
34%
36%
2012
Competitors’ Averages
31% Competitors’ Averages
2015
40%
2013
25%
Competitors’ Averages
37%
36% Competitors’ Averages*
Since enrolling in R.O.I.I.® Select, your staff has helped me implement new safety systems that will not only help to prevent injuries but also save time and money in the event that an injury does happen. I’ve learned things that will help me make my business more successful in the future.
As the oldest and largest construction retro group in the state, BIAW’s R.O.I.I.® Select program has returned over $500 million in refunds to participating members since 1982.
FEE TRANSPARENCY
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.
AFFORDABILITY
Your annual enrollment fee is 1.5% of total premiums paid to L&I, or $150, whichever is greater. We do not charge a Group Administrative Fee.
PERFORMANCE
R.O.I.I.® Select’s strict enrollment criteria and innovative approach to workers’ comp ensures maximum group performance. In our 36-year history, not one R.O.I.I.® Select participant has ever paid a penny of additional premium (penalty).
QUESTIONS? (360) 352-7800 Enroll@BIAW.com BIAW.com
MAY ’19
VOL. 29, ISSUE 5
10
US SUPREME COURT
BIAW FILES AMICUS BRIEF PERMITTING AGENCIES NEED SOME ACCOUNTABILITY TO GO WITH THEIR POWER As every cartoon-bad-guy has taught us, power without accountability is a recipe for disaster. In the building industry, permitting agencies exercise make-or-break power over builders, but are difficult to hold accountable when they abuse that power. State statute, RCW // JACKSON MAYNARD 64.40.020, General Counsel provides a // HANNAH MARCLEY check on Associate Counsel permitting agencies’ power and is the only mechanism for a builder to sue a permitting agency for an illegal decision and have their attorney’s fees paid.
WHERE IT ALL BEGAN
This unchecked power is central to the case Church of the Divine Earth v. City of Tacoma. In September, the Court of Appeals held that is a permitting authority tried to make the right decision on a permit, it was not responsible for damage it caused or the lawsuit the builder had to bring to prove they were right. This decision takes permitting agencies from powerful to unstoppable.
BUILDING INSIGHT BIAW.com
GOVERNMENT’S DEMANDS UNCONSTITUTIONAL
In that case, the Church of the Divine Earth bought a parcel in Tacoma zoned for single-family, residential use. The Church intended to build a parsonage there for its pastor. The parcel, platted over 100 years ago, is an odd shape, sticking out into the street much farther than its neighbors. When the Church applied for a permit to build the parsonage, the City refused to issue the permit unless the Church gave the City the strip of land along the road to make the Church’s parcel uniform with its neighbors. This requirement was an “unconstitutional condition.” The Constitution requires that conditions placed on a permit are designed to cure problems the permitted activity will create or worsen, not just a way for the government to demand whatever it wants from a property owner. Because the plat was an odd shape, with or without a parsonage on it, the parsonage did not create or worsen the difficulties created by the plat’s shape. After over a year of litigation, the court finally held that preventing the Church from building a parsonage as a way of forcing them to give up land to the state was unconstitutional. It seemed like justice would prevail. Under RCW 64.40.020, the Church should have been able to get its litigation expenses back from the City for being forced to litigate its constitutional rights. Instead, the Court of Appeals said that the City was not responsible for See BRIEF on page 11 //
11 //BRIEF from page 10
//COSTS from page 6
the cost because the City did not know that it was violating constitutional law.
NAHB SPRING LEADERSHIP MEETING: WASHINGTON, D.C.
ASK THE PASTOR
This decision is comically bad because, while the City may not have known constitutional law, the pastor for the Church certainly did. He explained the problem to the City long before a judge told the City he was right. The Supreme Court has taken up the case to ask “whether the City of Tacoma is liable for damages because it knew or should have known its action was unlawful.” “BIAW filed an amicus brief in this case because the Court of Appeals decision effectively gutted the statute that provides damages when a builder is wronged by a permitting body. Specifically, the Court of Appeals said Tacoma was not responsible for damages as the City did not know it was violating constitutional law. This is wrong because ignorance is not excuse for violating someone’s constitutional rights,” said BIAW General Counsel Jackson Maynard. “Under Washington state law, litigants are entitled to having their expenses paid as damages when they are forced to litigate their constitutional rights and prevail.”
HOLDING GOVERNMENT ACCOUNTABLE
BIAW’s brief for the Washington Supreme Court argued that the Court of Appeals got it wrong. It does not matter whether the City tried to get the law right. The question is what the city should have known. What would the facts and law have led a reasonable city to do in Tacoma’s situation? Holding the permitting bodies to this standard is the only way a claim for damages could succeed. If an agency was able to avoid liability simply by having multiple meetings before reaching an illegal conclusion, builders would never be able to get attorney’s fees refunded under RCW 64.40.020.
If you are planning to attend NAHB’s Spring Leadership Meeting & Legislative Day on the Hill, please contact Jan Himebaugh at (360) 3527800 as soon as possible. BIAW is scheduling a day of meetings with your members of Congress and want to ensure everyone who wants be is included. We look forward to having our members meet and talk with our representatives on issues facing our industry, such as trade tariffs, workforce labor, energy codes and more. After a day of Capitol Hill office visits and meetings, we will conclude with an evening reception.
STRATEGIC PLAN TO BE PRESENTED
BIAW will host a retreat to review the results of our strategic planning focus groups and to finalize the drafting of the strategic plan. The plan will then be presented for comments and approval during the summer board meeting, June 21 at the Yakima Convention Center. Don’t forget to mark your calendar for the BIAW cornhole tournament, as well as the ever popular Spike Party: A Night at the Movies! Come dressed as your favorite movie character and you might win a prize. I hope to see you all there.
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A solid foundation for your business!
MAY ’19
VOL. 29, ISSUE 5
12
MAKING IT YOUR BUSINESS
ADDICTION HITS HOME CONSTRUCTION WORKERS AMONG HIGHEST WITH INJURY-RELATED PRESCRIPTION PAINKILLER DEATHS
A little over a year ago, the March 5, 2018, edition of Time magazine was the first issue in their 95-year history entirely devoted to one topic. That topic: The opioid crisis. According to Time’s report, it is the worst addiction epidemic in // AVALY U.S. history. SCARPELLI “In 2016 alone, nearly 64,000 GUEST COLUMNIST Americans died from drug overdoses—roughly as With partners Job-Site Safety Institute and Advocates for Human Potential, many as were lost during the entire NAHB has developed resources to expand on what government and health Vietnam, Iraq, and Afghanistan wars care are doing to create “a proactive approach to this crisis with knowledge combined.” and without stigma.” It’s a tough topic. Opioid overdosNAHB’s program is called Making It Your Business. Because, unfortunately, es now claim more lives than car it is our business. The construction sector experiences the highest amount accidents each year. And if you are of drug/opioid-involved overdose deaths, followed by extraction workers, not personally affected, the stats can food preparation/serving, health care practitioners, health care support, and still feel far personal care/service (Centers for Disease Control and removed from According to NAHB data, over Prevention, August 2018). every day life. As noted in NAHB’s opioid information, the impact on half the people who died as a businesses can be significant, including loss of producBut given the staggering result of an opioid overdose tivity and increased healthcare expenses. Employees proportions of in the grip of substance abuse miss almost 50% more had at least one job-related this ongoing time from work compared to their peers. In these situainjury. crisis, it is likely tions, turnover is high and employee morale is low. that many of us The connecting force across industry sectors, age, demographics, race and have employees or coworkers caught gender? Chronic pain. Most people who died of an opioid overdose were in this terrible struggle. diagnosed with chronic pain within a year of their death. Another shared gateEarlier this year, the National way—most people addicted to opioids began taking prescription opioids, usuAssociation of Home Builders (NAHB) ally prescribed after an injury. According to NAHB data, over half the people held a webinar on the opioid crisis who died as a result of an opioid overdose had at least one job-related injury. explaining the basics of the problem Addressing the disease of substance abuse in the workplace can seem overand outlined resources available to our members (NAHB.org/opioids). See ADDICTION on page 13 //
BUILDING INSIGHT BIAW.com
13 //ADDICTION from page 12
//PATH from page 4
whelming. In their 2017 report, How the Prescription Drug Crisis is Impacting American Employers, the National Safety Council (NSC) found that less than two in 10 employers felt they were “extremely prepared” to deal with prescription drug misuse. But employers play an extremely significant role in reversing this problem across the nation. The NSC found that employer-supported and monitored treatments yield better-sustained recovery rates than treatment initiated at the request of friends and family members. Let that sink in. Employers who take action can make a life-changing, even life-saving, impact on troubled employees. Which helps families and strengthens every facet of our communities. As NAHB points out, “We have the opportunity at almost every point on a worker’s journey to help them. Whether that be through prevention and immediate action, through treatment when substance use has already occurred, or, finally, through recovery when addiction is in the process of being overcome.” Recently, the NSC also issued a workplace-focused report to inform businesses about the current evidence surrounding opioid medications and their impact. Their goal is to create a “call to action” that enables businesses of any size to partner effectively with benefit providers, assess current workplace policies and scope of drug testing, prioritize essential education efforts, and improve access to confidential help for employees. I encourage you to download and read NSC’s free report, The proactive role employers can take: Opioids in the workplace. In this report, they identify five key factors for an effective drug-free workplace program that will help employers save money and keep their employees safe: A clearly-written policy, employee education, supervisor training, an employee assistance program, and drug testing. In Washington state, 739 people died from opioid overdose in 2017. These figures have doubled since 2000. Even more alarming, is that at least 14% of high school students took a prescription opioid “just for fun” in 2017. As business leaders, we make up the backbone of this community. It will take a spine of steel to reverse the addiction that has gripped many of our workers. We have to do this. For the health and success of our current employees, for the bottom line, and to create a future that holds promise for our young people.
resources to enjoy the fruits of your labor, now is the time to take the next step and find a good business coach and begin the journey. I look forward to continuing this conversation with you and hearing your thoughts so we can all learn and share the journey together. “Sometimes the smallest step in the right direction ends up being the biggest step of your life. Tip toe if you must, but take the step.” —Naeem Callaway //ADJOURNS from page 5 BIAW priority for 2019. In addition, HB 1923 passed, which will increase urban residential building capacity. Sponsored by Representative Joe Fitzgibbon (D-Burien) and helped along the way by Representative Andrew Barkis (R-Olympia) and Senator Guy Palumbo (D-Maltby), HB 1923 also provides transportation State Environmental Policy Act (SEPA) appeals protection for individual projects that are consistent with the underlying transportation plan. This issue was also a BIAW priority this year. The bill awaits the Governor’s signature.
BIAW STAY CONNECTED
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VOL. 29, ISSUE 5
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DO YOU MEASURE UP?
FOCUS ON QUALITY CERTIFIED BUILDERS HAVE COMMON GOAL: PURSUIT OF EXCELLENCE
BIAW is proud to announce two additional builders to the Certified Builder program, bringing our total designees to 22, with four more candidates in the process of being approved. Launched in 2018, BIAW’s Certified // HILLARY Builder program VANATTA creates a way to recognize CERTIFICATION/ and designate EDUCATION MANGER achievement for those in the industry whose work experience and business practices exceed state standards. To learn more about the program or how to apply, please visit BIAWCertifiedBuilder.com or contact me at (360) 352-7800 ext. 106 or hillaryv@biaw.com.
Tracy Doriot Doriot Construction
In 1978, after having attended college for two years, Tracy decided that wasn’t the career path for him and established Doriot Construction. Over the last 40 years, Tracy has been hands Tracy Doriot on, crafting custom homes for clients throughout the greater Vancouver area. In 2018, his model home entry,
BUILDING INSIGHT BIAW.com
the Timberline, took home people’s choice awards for Best of Show, Best Architecture, Best Kitchen and Best Master Bath in the Clark County Parade of Homes, catapulting his company into the custom-home market spotlight. In addition to his passion for building homes, Tracy also gives back to the industry as a devoted supporter of the industry and advocate for workforce development. He has served multiple years as president of his local association, BIA of Clark County, and continues his service in his current position as BIAW treasurer.
Clint Adamson Pleasant Ridge Construction
In 2004, after earning his Bachelor of Science in Economics from Washington State University, Clint formed what has now become known as Pleasant Ridge Construction. Clint likes to say he learned the construction business from the inside-out. There was not one role he didn’t tackle—from office janitor to clean up crew, to laborer, to finish carpenter, and many times the landscaper—Clint has touched all aspects of his business. With a focus on custom homes and land development, Clint and his wife Kelly build and sell real estate from YakiClint Adamson ma to the Tri-Cities. Clint joined his local association, Central Washington HBA, in 2005 where he currently serves as president and a BIAW director.
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FALL PROTECTION AWARENESS
THREE SIMPLE STEPS PLAN, PROVIDE, TRAIN—JUST THREE SIMPLE STEPS TO HELP REDUCE INJURES
Falls in the construction industry are the No. 1 cause of fatalities, costing millions of dollars in workers’ comp claims. BIAW’s group retro program, R.O.I.I.® Select, see far too many cases of debilitating injuries from falls that could have easily been avoided if workers had taken these three simple steps.
PLAN ahead to get the job done safely
Assessment of a job in the early stages of a project is critical. It can also save time on the job site if a fall protection work plan has been prepared in advance. It is crucial that the job site area is checked for stability. In many scenarios, accidents happen on walking surfaces that are being replaced. Many DOSH citations have begun with the words ‘employer did not ensure employees had a stable work surface’ when someone fell through the underlayment or off the side of a roof when the rotten soffit area broke under the worker’s feet. Fall protection may need to be established before employees ever step foot on the roof or elevated surface as many fatalities have occurred while an employee was in the act of trying to establish fall protection on a high, steep, or unstable surface.
PROVIDE the right equipment
There are three parts of an effective fall arrest system: anchorage point, harness, and lanyard or lifeline. Make sure your fall protection equipment is in good working order. Always check to make sure ropes and harness are in good shape and not brittle or material frayed from sun exposure or chafing against surfaces. Incorrectly worn harnesses can, in some cases, cause more injury to the body than the fall to a surface itself. Worn equipment should be discarded and replaced. Make sure metal D-Rings, carabineers, snap hooks, and other connecting parts are not rusted or pitted and springs are allowing locks to move freely.
TRAIN everyone to use the equipment safely
establishing consistent habits such as always inspecting your harness, lanyard and anchorage point. Workers should get into the habit of always wearing their gear and staying connected. Workers need to consider what would happen if a fall occurs and ask themselves questions such as: Will I actually contact the ground? Have we figured the fall distance to include the lifeline slack and deployment of the decelerator on the fall harness? Should I be using fall restraint or fall arrest? Is the anchor installed correctly to the manufactures requirements and anchorage able to withstand the intended load? Taking the time to plan ahead, provide the right equipment, and train your workers to use the provided equipment safely, will help prevent needless injuries and keep your workers safe.
SIGN UP FOR SAFETY BULLETINS
If you are an R.O.I.I.® Select member participant and would like to receive our monthly email safety bulletins, contact R.O.I.I.® Select Safety Services Director Bob White at (360) 352-7800 ext. 109 or bobw@biaw.com.
Train your employees to be cognizant of safety by
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VOL. 29, ISSUE 5
SAVE THE DATE!
2019 EIR Awards June 19 | 7pm
Holiday Inn, Yakima Come out and celebrate the best of the best remodeling projects from around the state during the Excellence in Remodeling awards reception. This annual event highlights quality craftsmanship performed by our members. Suggested attire: smart casual
OPEN TO ALL | DRINKS HORS D’OEUVRES #EIR 2019
E FUN!
S TH DON’T MIS
TOURNAMENT JUNE 20 | 4 PM | PRIZES! SUMMER BOARD MEETING Yakima Convention Center
Mark your calendar for BIAW’s fourth annual Cornhole tournament. Come and enjoy the competition or better yet get in the game for $10 (includes a drink). Sign up at the board meeting.
THANK YOU SPONSORS AAA KARTAK Glass & Closet Phase II General Contractor
Building Industry Association of Washington 111 21st Avenue SW | Olympia, WA 98501 (360) 352-7800 | BIAW.com |
