2023 September Building Insight

Janelle Guthrie

Hannah Cassara

VISUAL DESIGNER

COMMUNICATIONS DIRECTOR EXECUTIVE VICE PRESIDENT

Greg Lane

Al Audette

LEGISLATIVE DIRECTOR

Josie Cummings

COMMUNICATIONS DIRECTOR

Janelle Guthrie

12 Spotting arbitrary added costs to new homes in Washington state

Master Builders Pierce took elected leaders on a bus tour earlier this year to visit jobsites around Pierce County, highlighting setbacks and extra costs added to new homes thanks to regulations.

16

Electrical laws you might not be complying with

Attention remodelers! Make sure you’re aware of these electrical laws to prevent you from being hit with significant fines.

Jan Himebaugh

MANAGING DIRECTOR OF OPERATIONS

Stephen Hyer

ROII DIRECTOR ASSOCIATION SERVICES DIRECTOR

Jenn Kavanaugh

Brenda Kwieciak

GENERAL COUNSEL

For editorial inquiries, contact Hannahc@biaw.com

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www.BIAW.com

@BuildingIndustryAssocWA

ON THE COVER

President’s message

When I started my year as your 2023 BIAW president, I shared my focus for the year: Family, friends and future.

As we celebrate Associate Appreciation Month, I’d like to focus on family— and the importance of our associate members as a critical part of our homebuilding association family.

Associates build our industry

Depending on your specialty, there’s a fine line between being a builder member and an associate member with BIAW. All of us contribute to giving the people of Washington an opportunity to experience the American dream of homeownership.

They’re also the leaders behind the annual Spike Party to celebrate our state’s top membership recruiters. At the local level, you’ll often find them planning golf tournaments, cruises, and Young Professionals and Professional Women in Building events.

Associates’ opportunities abound Oftentimes, we’ll hear members join our local associations hoping to garner new business right away, and when they don’t, sometimes they’ll move on. And that’s too bad, because it’s really the relationships you build over time that help everyone grow their networks and business.

Gary Wray President

It’s the relationships we all have with one another that make it possible. As a builder member who also works as a subcontractor in the siding business, I know how important the relationships we have with one another can be.

Roughly two-thirds of BIAW members are associate members. Many of our associate members are subcontractors on our jobs providing all the expertise we need, from the electrical, plumbing and drywall to the flooring, paint and tilework to the exterior paint, landscaping and roofing. Associate members also support the building industry as suppliers, real estate professionals, mortgage brokers, title companies, marketers, insurance companies, accountants and more. We couldn’t do it without them.

Associates bring the fun

Our associate members also bring their networks and their enthusiasm to our state and local association activities. At the state level, associates regularly host fun events at board meetings like mini golf, ax-throwing or scavenger hunts.

While associates sometimes look to builder members for new opportunities, those new opportunities, new knowledge and new business leads come from every direction when you’re active in your local building association. There’s plenty of work to go around. If you approach your membership with patience and understanding, you never know when the next opportunity will come. Whether it’s retirement, relocation or simply overscheduling, being top of mind when new work comes in will pay off again and again. Members do business with members.

I’m so proud of our BIAW family and the opportunities your membership provides. Feel free to reach out any time I can help!

Retention Royale: 5 retention tips to help you win

by Raelle Vitali Member Resources Manager

Retention Royale

Use personalization

Meet the member or former member where they’re at. Some people love emails, others will only respond to texts. While BIAW does provide you with sample messaging, get creative with the channel you use to reach out to members and how detailed and personal you make each message. You can also win bonus chips for sending direct messages (emails, letters, texts, phone calls) to your recruits, encouraging them to renew or rejoin. All proof of contact must be sent to raellev@biaw.com.

Acknowledge and celebrate

connection for them at the event if they attend. Help them expand their network by introducing them to other members or just getting to know them better.

Promote the value

For all 2021 Membership Monopoly Players:

Don't leave membership renewal to CHANCE

The Retention Royale membership competition officially began July 1, 2023 and will end Oct. 31, 2023. All 2021 Membership Monopoly (MM) players received a list of their recruits from the 2021 MM competition and the current membership status of each recruit.

Has their business had any major success or contributed to the community? Has the individual themselves experienced any major wins or losses that they have had to overcome? Communicate to them that the association is better off because of their involvement. If you’re talking to an inactive member, acknowledge that they made the important decision to join back in 2021 during a very difficult and uncertain time for our industry. That decision took commitment and should be encouraged to be made again.

New members are most likely to cancel their HBA membership in the first 1-2 years after they've joined. elp members that joined in 2021 BEAT THE ODDS by focusing on retention efforts and win chips!

Players earn chips for the retention percentage of their 2021 recruits that are still active. Earn all 100 chips by getting your inactive members to rejoin by Oct. 31.

Here are five tips on how to get started reaching out to these inactive members or encouraging active members to renew once more.

Invite and connect

What better way to boost your professional relationship than through quality time around each other? Invite the member or inactive member to your next social, luncheon, dinner or class. Let them see what amazing value they can gain from their in-person attendance at these meetings and events. Take it one step further by making it your priority to be a

It’s easier to make a spending decision when you know what you’re getting for your dollar. Networking, advocacy, education, personal savings, exclusive company programs and industry-wide recognition are all reasons that you can expand upon for why a member should renew or why someone should rejoin. Use your association staff at the local and state level to assist you in diving into any membership programs or to help address concerns that may arise when connecting with members. We are here to help you grow the association!

Don’t forget: New players can win too!

There are 524 bonus chips available to new players for reaching out to unassigned 2021 MM recruits. Contact your local association offices or local membership director to get the information on which unassigned members to reach out to. New players earn four chips for encouraging unassigned 2021 MM recruits to renew or rejoin. All proof of contact must be sent to raellev@biaw.com

Don’t leave membership renewal to CHANCE!

Find rules, instructions, and marketing materials at BIAW.com/retention-royale.

Executive Vice President’s message

Amazing to think that fall is already here. And soon after that is the season of gratitude. But for now, it’s September, which is Associate Appreciation Month, and BIAW wants to demonstrate our gratitude for our associate members by celebrating them all month long.

Members do business with members

Greg Lane Executive Vice President

Associate members make up nearly two-thirds of our membership and include a wide variety of specialties that are vital to our industry such as subcontractors, financial services, retail and wholesale, and sales and marketing. They make our industry flourish by providing the support, trade skills and materials every housing professional needs to do their business successfully. They also are critical to the success of our association by providing leadership and expertise. Everyone benefits when members do business with members. Working together strengthens not only our local communities but also our local homebuilding associations. Join me in extending my sincere thanks to all our associate members for their countless contributions, and please remember to support them with your business.

Lindsay Brown, NAHB New EO of the Year

Something else I’m grateful for is the outstanding executive officers (EOs) at the helm of each of our state’s 14 local home builders associations. Our association is fortunate to be served by such talented, innovative and dedicated professionals and I am proud of the strong collaboration our state enjoys between BIAW and all of our local associations.

I want to congratulate one in particular for being honored with the National Association of Home Builders (NAHB) New Executive Officer of the Year Award, Lindsay Brown of the Central Washington Home Builders Association (CWHBA).

Lindsay was presented with this award during the 2023 NAHB Association Management Conference in Cincinnati in late August. This award is presented to an EO who has served no more than three years in an association management position and has made major contributions to their local association during that time. Lindsay has without a doubt done just that. Since starting with CWHBA in May of 2022, the association has seen significant membership growth, program expansion and financial vitality.

During Lindsay’s tenure, CWHBA has seen over eight percent membership growth, leading our state in net members gained year over year. The association has also seen an 86 percent member retention rate under Lindsay’s leadership. Under Lindsay’s direction, CWHBA has become a more effective organization better equipped to serve its members and advance its mission. Congratulations, Lindsay! Thank you for all of your incredible hard work. And thank you to all our state’s wonderful EOs for their tireless efforts advocating for our industry!

Join us at the Building Leaders Summit

Finally, I’d like to remind you all that registration is still open for the Building Leaders Summit Area 15 leadership conference taking place in Seattle, Oct. 18-20. The talented lineup of speakers we have handpicked for this event is ready to share their wealth of knowledge and experience to help you become the most effective and efficient homebuilding industry advocate possible.

Learn more about this great event on page 10. Sign up today at buildingleaderssummit.com, and I look forward to seeing you there!

BIAW welcomes new office assistant

BIAW is happy to announce our new office assistant, Emily Jaeger! Emily is no stranger to the building industry having worked previously for Olympia Master Builders (OMB). Emily is a graduate of Tumwater High School and South Puget Sound Community College, and she comes to us with a wide variety of experience, including working for Dutch Bros. Coffee, Target, Apple Tree Productions, and Wells Fargo. She is also very active in the community volunteering for a local theater group and tutoring seventh and eighth graders.

We are excited to welcome her to our BIAW team!

UPCOMING CLASSES

Register at biaw.com/classes

Heat-Related Illness Awareness (NEW)

Sept. 27

CESCL (Certified Erosion & Sediment Control Lead)

Oct. 11-12

DOSH Inspections: Don’t be caught unprepared*

Oct. 11

CESCL — Recertification

Help Minimize Risk: Condition Your Workforce for Safety*

DOSH Inspections: Don’t be caught unprepared*

Oct. 13 Oct. 24 Nov. 14

* Free for ROII participants

Celebrating Associate Appreciation Month with Pierce County commercial realtor Linn Larsen

by Hannah Cassara Content Specialist

Linn Larsen of Linn Larsen, LLC, Commercial-Industrial Realtors in Tacoma, is a prime example of an associate member who has made significant contributions to our industry. Larsen has lived in the Tacoma area for most of his life and began his career as a commercial realtor there just shy of 50 years ago.

“I couldn’t stand the thought of getting a ‘real job,’” he said. “The banker who gave me my first loan to buy my company stopped me in the doorway after he agreed to the loan and said, ‘If this doesn’t work out, I expect you to get a real job and pay the money back.’ Out of fear of having to go to work at a ‘real job,’ I stuck with it.”

“I absolutely love the wonderful achieving, progressive and enthusiastic people who are members of Master Builders Pierce,” he said. “I have a heartfelt appreciation for those who have taught me aspects of developing land and making good decisions that benefit so many. One of my greatest joys is having people thank me for recruiting them.”

More than two-thirds of BIAW’s membership consists of associate members. We honor their vital roles in the homebuilding industry every September with Associate Appreciation Month. Many of our associate members are subcontractors providing expertise on everything from electrical, plumbing and drywall to flooring, paint and tilework to exterior paint, landscaping and roofing. Associate members also support the building industry as suppliers, real estate professionals, mortgage brokers, title companies, marketers, insurance companies, accountants and more.

Key contributors

Associates are a vital puzzle piece of our industry and a key contributor to our nation’s GDP. Their significant contributions make our industry go round.

Larsen’s company specializes in industrial real estate acquisition, sales, leasing, consulting, and development services around Puget Sound. His extensive experience and time in the business have earned him a reputation for solving problems and giving sound advice.

“Linn is just so helpful and a real gogetter,” said Master Builders Association of Pierce County Communications Director Bailee Butcher.

Giving back to the industry

A long-time member and the 2022 second vice president of his local, the Master Builders Pierce, Larsen says the most significant value he finds in his membership with his local, BIAW and the National Association of Home Builders is the opportunity to give back to the industry.

Larsen has served as a BIAW director and several committees at his local, including membership, awards, finance, executive, and the associate advisory council. He donates annually to the Hammer Club and is consistently one of their top recruiters. He also sits on the Lakewood Planning Commission, giving the building industry a voice on a very influential panel in Pierce County’s second-largest jurisdiction.

For his hard work and years of dedication to BIAW and his local and the homebuilding industry, Larsen was presented with an Associate Appreciation Award from BIAW’s Associate Advisory Council in 2022. Associate Appreciation Awards are given each year to associate members who give back to our industry at the local, state, and national levels. Learn more about Linn Larsen, LLC, Commercial-Industrial Realtors at linnlarsen.com.

PWB Week: Honoring the women of our industry

by Hannah Cassara Content Specialist

Each year during the month of September, the National Association of Home Builders (NAHB) celebrates the achievements of women across all facets of the residential construction industry with Professional Women in Building (PWB) Week. This year PWB Week takes place Sept. 11-15, and here in Washington we have countless remarkable women to celebrate.

A new Washington PWB Chapter makes three

Building Industry Association of Clark County

On July 20, 2023, the Building Industry Association of Clark County (BIACC) launched our state’s third PWB Council and held its first official meeting. Over 50 attendees came to learn more about the benefits of PWB membership. BIAW Second Vice President and NAHB PWB Council Second Vice Chair Luellen Smith proudly welcomed Washington’s newest council. Other state and national PWB leaders, Darylene Dennon, Sheila Zentz, Stephens, Debbi Boyd, Melissa Galland, and Jodi Bailey, joined in the celebration.

Learn more at biaofclarkcounty.org

Olympia Master Builders

Olympia Master Builders (OMB)

PWB Council earned its charter in January 2020 and continued to build connection via Zoom despite the limitations of the pandemic. They are dedicated to being the voice of women in the building industry, promoting industry professionalism and supporting members in Thurston, Mason, Lewis, Grays Harbor, and Pacific counties. OMB’s PWB Council is active in promoting industry networking, educational series targeted to women and community charity events. They are hosting the PWB “Food for Thought”

Luncheon Sept. 26 at Rivers Edge in Tumwater and their fall celebration, Harvest in Disguise, Oct. 20 at HayDay Heritage Farm Barn in Olympia. Learn more at omb.org

Master Builders Association of King and Snohomish Counties

Charted in 2005, Master Builders Association of King and Snohomish Counties (MBAKS) PWB Council actively advocates for, supports and inspires women in the building industry by providing opportunities for both professional and personal development, as well as engagement of its members.

Each Fall, MBAKS hosts its annual PWB Conference to celebrate the future of women in the building industry with inspiring keynote speakers.

Scheduled for Thursday, Oct. 5, at the Glendale Country Club in Bellevue, this year’s PWB Conference features Keynote Speaker Stephanie Dailey of StephanieBuildsIt and Steven Dailey Construction in Draper, Utah. In 2020, Stephanie served as Chair of the Utah PWB, the group behind “The House that She Built.”

Learn more at mbaks.com

Luellen Smith to take the role of NAHB PWB Chair

Current NAHB PWB First Vice Chair and BIAW Second Vice President Luellen Smith will advance to the role of PWB chair at the International Builders Show in Las Vegas in January 2024. Smith was NAHB’s PWB Member of the Year in 2018 and former chair of the MBAKS PWB Council.

Earlier this year, Smith reported NAHB’s PWB Council exceeded its goals with 3,100 members and 80 chartered councils by the end of 2022. The council continues to work on brand recognition and local council support into the future. Members interested in forming a local council can contact BIAW Education and Workforce Development Director Al Audette at ala@biaw.com for more information.

BIACC successfully launched its PWB chapter and held its first meeting on July 20. Over 50 attendees came to learn more about the benefits of PWB membership.

Petrified of public speaking? Join us for the Building Leaders Summit Pre-Con on Professionalism, Public Speaking and Presentations

Now more than ever, influence requires presence, professionalism and the ability to speak and present with clarity and confidence, but fear of public speaking is the most common phobias: Ahead of death, spiders or heights!

Never fear! Whether you’re meeting new members or clients for the first time, running a meeting, presenting new ideas or testifying before the Legislature, we’ll teach you how to calm your nerves and establish presence and professionalism to maximize your public speaking opportunities.

Public relations training and executive counselor Dianne Danowski Smith and BIAW Communications Director Janelle Guthrie will present a four-hour interactive presentation on public speaking, presentation prowess and professionalism.

Speakers

Dianne Danowski Smith, APR, Fellow PRSA conducts training nationwide for executives and leaders including media/ interviewing and effective public speaking. She has three decades’ experience in the implementation and management of the stratosphere of public relations, public affairs, crisis communications, and reputation/issue management, through her work at Publix Northwest, and for large/medium/small companies, firms and organizations. She is the Public Relations Society of America Oregon recipient of the William W. Marsh Lifetime Achievement Award in Public Relations.

You’ll learn how to:

n Speak with confidence: Conquer stage fright and harness nerves to deliver a confident and compelling speech.

n Command presence: Learn the art of commanding attention through body language, vocal modulation, and more.

n Engage any audience: Tailor your message to resonate with diverse audiences and keep them engaged from start to finish. Bring your smartphones to practice, record and critique!

Register today for our session from 1-5 pm on Oct. 18! Learn more at BuildingLeadersSummit.com

Janelle Guthrie, APR, Fellow PRSA provides strategic communications leadership to BIAW. She joined BIAW as communications director in October 2023. She’s counseled leaders on public speaking, crisis communications and public relations for more than 20 years, serving in executive leadership and communications roles for Washington Attorneys General Rob McKenna and Bob Ferguson, two gubernatorial candidates, Microsoft, Washington’s Senate Republican Caucus and two state agencies. She’s won the PRSA Lloyd. B. Dennis Distinguished Service Award for national public affairs excellence and the PRSA Puget Sound Chapter PR Professional of the Year award.

Dianne Danowski Smith APR, Fellow PRSA

Janelle Guthrie APR, Fellow PRSA

Spotting arbitrary added costs to new homes in Washington state

by Hannah Cassara Content Specialist

If a picture is worth a thousand words, an experience is worth exponentially more. Capitalizing on this, the Master Builders Association of Pierce County recently loaded 50 local, state and national elected leaders on a bus to tour housing developments around Pierce County, highlighting the setbacks and challenges of various regulations.The group visited four developments, all in different stages of the building process.

or more lots. Using the net density calculation, this project accommodated 14 lots. However, if the county calculated density on gross site acreage, the project could have developed 16 lots with minimal additional infrastructure.

When JK Monarch started the process to get legal approval from the county to develop the property, they planned to detain and discharge stormwater using an onsite pond. Pierce County rejected that design as the county had not updated its analysis of the regional pond’s capacity under the new storm code. The delay cost a year’s worth of time, resulting in over $150,000 in additional costs to the project and nearly an extra $11,000 to the price of each home.

n Plat application: June 25, 2020

n Engineering submitted: July 1, 2020

n Preliminary plat approved: April 7, 2021 (9 ½ month delay)

Stop 3: Prairie Oaks

18009 - 28th Ave E, Tacoma

Builder: Rush Residential

Challenges

This project experienced significant development engineering delays. The county reversed its decision of floodplain setbacks, adding extra time to the project and extra costs in attorney fees. Additionally, the updated energy codes tacked an additional $13,500 to the cost of each home.

Stop 4: Landing at Spanaway Lake

16708 - 8th Ave E, Spanaway

Builder: SoundBuilt Homes

Challenges

“Many leaders were not aware of the barriers in place or did not know why they were there,” said Master Builders Pierce Director of Communications Bailee Butcher. “It became less about having Republican and Democratic leaders in a room and more about learning the goals and needs for sustainable growth in Pierce County.”

Stop 1: Birch Plat

5607 - 144th St E, Puyallup

Builder: JK Monarch Fine Homes

Challenges

Pierce County determines density by multiplying the net developable acreage of a site by the allowed density in dwelling units/acres. The net developable acreage is the gross site acreage minus environmentally constrained lands, easements and shared access facilities serving two

n Engineering approved: March 10, 2022 (20 ½ months after submittal, 11 months after preliminary plat approval)

Stop 2: Hagen

Plat

3404 - 182nd St E, Tacoma

Builder: Rush Residential

Challenges

This project was also hindered by net density regulations. The gross site area would have allowed for 56 lots. However, net calculations only allowed for 46 lots, robbing 10 families of the opportunity to purchase a new home.

It took 18 months to receive engineering approval, resulting in a missed development season and adding additional costs to the project while waiting for approval.

Once again thanks to net density calculations, this project missed the opportunity to build an additional 24 homes on the same property. Maximum density would have allowed for six dwelling units per acre, but with net density, the plat achieved only 4.87 units per acre. Significant engineering review delays also impacted this development.

n Plat application: January 17, 2019

n Plat approval: December 23, 2019

n Site development application: February 28, 2020

n Site development approval: November 13, 2020

In Pierce County, 53 percent of families cannot afford a new home. Overall, in Washington state, a staggering 88 percent of families cannot afford to purchase a median-priced home in their county of residence. According to the Mercatus Center at George Mason University, regulation growth in Washington state since 1997 is associated with 93,991 more people living in poverty.

Washington needs an additional 268,000 (and counting) new homes to

While many regulations are essential and worthwhile, some are arbitrary and burdensome. Regulations imposed by the government at all levels account for 23.8 percent of the final price of a new single-family home.

In July, BIAW’s Communications team visited a SoundBuilt Homes jobsite in Kent. Spot the added costs this development suffered in the picture below.

meet buyer demand.

Inflation and rental costs decline, housing inventory challenges remain

by Noah Blanton President, Oregon Direct Operations, WFG National Title Insurance Company

INFLATION & INTEREST RATES

No recession (yet), and rates are rising

No recession, technical or otherwise, is yet apparent in the US economy. Instead, we find ourselves in the strange environment of falling inflation and rising borrowing costs.

Inflation fell to an annualized rate of 3% in June, an anticipated and unsurprising result. Interest rates have not yet followed due to core inflation remaining close to 5%. (See Figure 1)

Supply chain and pandemic-related inflation (transitory) has largely been driven out of the economy. What remains is “sticky” inflation, so-called core inflation, pertaining to services and money supply. When the Fed does pause, expect the elevated rate to persist for 12-24 months before we enter a lowering cycle.

The more relevant influence on mortgage rates is the yield on the 10-year treasury, up nearly 80 basic points (bps) from lows earlier in the year and holding

above 4%. Watch this indicator for the direction of mortgage rates. Along with elevated treasuries and stubborn inflation, the banking system remains under substantial pressure. The speed at which interest rates rose from historic lows has created significant risk for financial institutions. Banks are managing the largest unrealized losses on record, creating an environment of fragile stability. (See Figure 2)

There is little incentive to lend at lower rates in the current climate, even if it increases transaction velocity and market share. Expect additional consolidation and failures in the system before rates come down significantly.

SUPPLY-SIDE

Low rates cast a long shadow

The higher the 30-year mortgage rates, the greater the supply and inventory imbalance. Sellers with rates less than half the average rate today have little incentive to sell. The inventory issue has not improved over the last quarter, becoming more acute in most markets driven by the continued increase and volatility of 30-year mortgage rates. At

Figure 1

Figure 2

Figure 3

this writing, the 30-year mortgage rate average is 6.9%. With 92% of existing homeowners having a rate below 6%, no significant increase in inventory is anticipated from the existing housing stock. The upside to low inventory is stable or rising prices. (See Figure 3)

However, we are beginning to see the impact of supply impacting Multi-Family Residential rental rates, with Washington leading the nation in deflating rents. Moreover, Seattle and Portland’s metro areas (including SW Washington) lead declines in both states with -13.5% and -9.5% growth, respectively. (See Figure 4) Potential buyers leaving multifamily units are encouraged to stay in housing that is getting less expensive versus buying, which continues to become more expensive. New construction will face competition for first-time buyers from landlords offering lower monthly payments.

DEMAND-SIDE

Jobs are everything!

The West Coast depends more on China than other parts of the country, which helps and hurts depending on the cycle. Employment and a growing population are the base of all demand for housing.

Western states are the United States’ largest trade partners with China, impacting our economies as China grows at varying paces. China has been responsible for over a quarter of all Oregon and Washington exports for the last three years. (See Figure 5) Exports concentrated around computers, computer chips, agriculture and transportation (Intel, Boeing and grain).

Chinese growth is now slowing, impacting employment and job growth in the West. From a demand perspective, it is an area to watch closely, regardless of constrained supply.

However, the total number employed in Washington state has continued to grow thus far, outpacing both Oregon and California and is now above prepandemic levels after flat growth in 2022. (See Figure 6) That’s a positive for the housing market!

The Building Industry Association of Washington has teamed up with WFG National Title Insurance Company’s Noah Blanton to offer quarterly economic outlooks to assist members in making decisions for their businesses. Contact him for more information at (503) 431-8506 or nblanton@wfgtitle.com

Figure 4

Figure 6

Figure 5

Remodelers: Don’t get fined for violating these easily misconceived electrical rules

by Hannah Cassara Content Specialist

What can you do and what can you not do when it comes to working around electrical during remodeling projects?

Let us clarify this question to ensure you’re in compliance and not at risk of being fined during an inspection.

According to Revised Code of Washington (RCW) 19.28.041, “It is unlawful for any person, firm, partnership, corporation, or other entity to advertise, offer to do work, submit a bid, engage in, conduct, or carry on the business of installing or maintaining wires or equipment to convey electric current, or installing or maintaining equipment to be operated by electric current as it pertains to the electrical industry, without having an unrevoked, unsuspended, and unexpired electrical contractor license, issued by the department in accordance with this chapter.”

No permit, no problem? Wrong.

A common misconception is if a project doesn’t require an electrical permit, an electrician is not needed. That is FALSE. It’s true the replacement of light fixtures, switches, outlets, thermostats, etc., does not require an electrical permit. However, in some cases it is unlawful for anyone other than the homeowner themselves to do that work unless that person is a properly certified electrician who has an electrical contractor license.

Work that does not require an electrical permit:

n Plug-in household appliances

n Like-in-kind replacement of lamps, single-family residential luminaires, branch circuit breakers, contactors, relays, timers, starters, circuit boards or similar control components.

n Like-in-kind replacement of a maximum of five: snap switches, dimmers, receptacle outlets, thermostats, heating elements, or luminaire ballasts with the exact same ballast.

n Like-in-kind replacement of a single set of fuses; a single battery smaller than 150 amp hour; one hardwired household appliance; one 10 horsepower, or smaller, motor.

n Heat cable repair

n Travel trailers

n Other as listed in WAC 296-46B901 (7)

Work that requires an electrical permit:

n All circuit wiring

n Motors larger than 10 horsepower

n Panelboards

n Meter bases or masts

n Thermostats

n Thermostat wiring

n Intercoms

n Burglar alarms

n Fire alarms

n Generators

n Telecommunications systems

n Permanent home stereo systems

n HVAC/R equipment

n Outbuildings

n Swimming pools, spas, hot tubs

n Septic pumping systems

n Other electrical equipment as defined in RCW 19.28.041

FAQs

WHO CAN DO THE WORK?

Can either a general contractor or a non-electrician subcontractor take a light fixture down to paint behind it even if the power is shut off?

No. This is considered an exposure to hazard and can only be done by the property owner or a licensed electrician.

Can either a general contractor or a non-electrician subcontractor remove a light switch cover or receptacle plate cover to paint behind?

Either can do the work. According to the Washington State Department of Labor and Industries’ (L&I) Division of Occupational and Safety Health (DOSH), the removal of a plate cover is not considered an exposure to hazard and an infraction would not be given for that alone during inspection.

Can a property owner have a non-electrician employee perform electrical work that does not require a permit?

A property owner could have a full-time employee (not a contractor or subcontractor) perform some electrical work that does not require a permit without that person being an electrician. However, for example, a property management company could not have an employee perform this work because the company only manages the building and is not the owner.

Other questions?

If you have questions about whether your work is in compliance with these laws or whether or not your electrical work needs to be done by a licensed electrician, please contact L&I Electrical Program at electricalprogram@lni.wa.gov or (360) 902-5269.

Interested in learning more about what to expect during DOSH inspections?

Register for the “DOSH Inspections: Don’t be caught unprepared” seminar taught by ROII Safety Services Director Bob White on how to prepare in advance for L&I compliance inspections. Learn more at biaw.com/classes

ABOUT INSPECTIONS

What types of inspections look for these types of infractions?

n E-CORE Inspection (Electrical Compliance, Outreach, Regulation and Education)

E-CORE performs unscheduled inspections to find unlicensed electrical contractors, uncertified electricians, and those who fail to get electrical permits.

n Electrical Inspection

For electrical work requiring a permit, the property owner or contractor must request an inspection from L&I to check the work under the 2020 National Electric Code (NEC).

n DOSH Inspection

DOSH performs scheduled and unscheduled inspections to check for unsafe work practices.

n Contractor Compliance Inspection

Ensures compliance with contractor registration, plumber and electrical licensing, prevailing wage and industrial insurance laws.

What is the fine for violating electrical law?

A life safety violation is $1,000 for the first offense and increases with each offense.

What happens during an inspection?

During an electrical inspection that is scheduled or unscheduled, the inspector will look for the proper permits on site and that all engaged in the installation of electrical equipment are properly licensed and certified. During an electrical inspection, the inspector will evaluate whether or not the installation is compliant with all national and local electrical codes. If individuals are not properly licensed and certified the inspector, either E-CORE or an electrical inspector, may also issue citations for non-compliance with the RCW.

Why should I accommodate temporary light duty?

by Logan Gillihan ROII Claim Representative

Besides being an ROII program requirement, have you ever wondered why you should accommodate temporary light duty?

While it may seem counterintuitive to spend money to have a worker do minimal modified duty work, it actually saves money long term and helps you earn larger ROII refunds. There are many benefits when accommodating temporary light duty, a few of which we’ve outlined below.

n Once time loss is paid, it opens the door for L&I to assign vocational services, which are contracted services outside the department. These additional services are expensive, increasing the overall cost of a claim, and may negatively impact your Experience Modification Rate (EMR). Keeping your EMR down means less money is paid to L&I and keeps you competitive when bidding for projects.

n A Claim-Free Discount (CFD) is earned by having no indemnity claims for three consecutive years. Once this is earned, the employer would qualify for a CFD through L&I, which would apply a discount to the employer’s EMR.

Money

While it may seem counterintuitive to spend money to have a worker do minimal modified duty work, it actually saves money in the long term.

n Time loss or Loss of Earning Power (LEP) paid to the worker by L&I will change how the claim is categorized by L&I, moving it from a medicalonly claim to an indemnity claim. When a claim is categorized as medical only, L&I applies a discount to the medical portion. In many cases, the claim will have zero impact on the experience rating calculation. However, no medical discount is applied once $1 of indemnity is paid out on a claim and adds additional costs to a claim, which in most cases, increases future L&I rates and premiums.

n Stay at Work (SAR) reimbursement benefits will reimburse the employer for materials, tools and equipment up to $3,900 and wages up to $10,000 (or 66 working days, whichever comes first) for light duty performed by the injured worker.

n Less claim costs = more potential ROII refund!

Mental

Sitting at home to recover isn’t always the best option.

n Independent and unbiased studies show keeping an injured worker engaged and active in a consistent work pattern decreases their overall recovery time. This also helps prevent deconditioning.

It’s expensive—I don’t have money to spend paying for non-productive light duty.

They don’t want to work light duty. Why not just let them sit at home and recover?

n While working light duty, workers are around others, which can motivate them or provide positive workplace pressure to return to their normal job of injury quicker.

n Faster recovery for the worker is a positive for all parties and lessens the cost of the claim for the employer.

n Less claim costs = more potential ROII refund!

Don’t worry, we will help

With everything, there are outliers, so please reach out to your ROII Claim Representative for assistance on how to navigate your current situation. Hopefully, this guide has provided you with helpful information. If you have any additional questions, please don’t hesitate to reach out to your ROII Claim Representative.

Reinjury

No matter the situation, hurt or not, there is always a risk of a new injury.

n We obtain a Light-Duty Job Description approved by a medical professional to protect from worsening any conditions that may be present.

n If a worker is at home unsupervised, there’s more potential for reinjury than being in a structured workplace, typically supervised.

now

understand.

Get ‘er done!

Always reach out to your ROII Claim Representative to have them walk you through L&I’s stringent process!

1. Completing a Light-Duty Job Description Form with light-duty tasks you have available within the worker’s restrictions.

2. Getting the form approved by your doctor to ensure they are capable of doing the tasks without worsening or reinjuring themselves.

3. Completing a Light-Duty Job Offer and presenting it to the worker in person or via mail within L&I’s guidelines.

4. Accommodating the light duty and assisting the worker with their recovery.

5. Don’t forget to file for the Stay at Work Reimbursement (SAWR) benefits!

Get help navigating claims with ROII

If you’re not a participant, you can find out how to get rewarded for safety by joining the state’s largest, longest-operating Retro (Retrospective Rating) safety incentive program: ROII.

ROII helps eliminate injuries through improvements in workplace safety and preventative strategies. If an employee suffers an injury, ROII helps companies help the employee get better quicker with a successful return-to-work experience.

With these refunds, ROII participants are earning some serious cash. To get started and find out if ROII is a good fit for your company, visit roii.com or contact us at (360) 352-7800 or enroll@roii.com.

I don’t want to bring them back, they’ll just reinjure themself, and I’ll have to pay for it!

OK,

I

How do I do light duty?

[1] Central Washington Home Builders Association (CWHBA) Young Professionals Council members participate in a Yakima Valley Partners Habitat for Humanity Build Day on August 4.

a. (l to r) Keegan Harris; Kaitlin Temple, Highpoint Kitchen & Bath; Samantha Schmidt, Elliott Insurance Services; Brittanie Vaughn, Cashmere Valley Bank; Jacob Ross, Yakima Branding.

b. Sharon Kearby of Yakima Partners Habitat for Humanity shares words of reflection from the Habitat’s Board President (and former CWHBA President) Darin Peters during the home’s dedication.

[2] The Building Industry Association of Clark County (BIACC) held its 2023 Membership Golf Tournament at Club Green Meadows in Vancouver on July 27, presented by RidgeCrest Custom Cabinetry.

a. Waste Connection team

b. Fidelity National and Chicago Title booth

[3] BIAW’s Legislative Director Josie Cummings went on a tour with the Washington Department of Fish and Wildlife (WDFW) early last month as a member of their Hydraulic Code Implementation Citizens Advisory Group (HCICAG). Josie has served as a BIAW representative for the group since 2018. (Continued)

c. Brittanie Vaughn of Cashmere Valley Mortgage and YPC Chair hard at work.

The tour provided a look at two different types of construction projects that require a Hydraulic Project Approval (HPA) permit:

a. A soft armoring project on private property removing old chain and cement bulkheads,

b. and a dock replacement.

[4] The San Juan Building Association (SJBA) held its 2nd Annual Golf Tournament on August 4 at the San Juan Golf and Tennis Club in Friday Harbor. It was a day of fun promoting SJBA’s mission of enhancing the local building industry.

[5] BIAW Executive Vice President Greg Lane, Regional Director for the National Association of Home Builders (NAHB) Executive Officers Council, joined other executive officers from across the country to welcome new EOs to the NAHB Association Management Conference in Cincinnati, Aug. 22-24.

[6] BIACC held its Building Excellence Awards Thursday, August 17 at the Heathman Lodge in Vancouver. Each year, BIACC honors members who are nominated according to their excellence in landscaping, design, construction, remodeling and renovation.

a. The Building Futures Foundation Scholarship and Tool Grant Winners were also honored during the event and presented with their scholarship checks. A total of $28,000 was awarded, which is the highest amount ever awarded by the foundation.

b. Doriot Construction, owned by 2021 BIAW President Tracy Doriot (second from right), was awarded a Building Excellence Award for the category of New Home Over $2 Million.

3a

6b

than services and craftsmanship?

by Bob White ROII Safety Services Director

Living in the information age, customers have become more savvy about how they hire contractors. Many customers now check to ensure the contractor is licensed and bonded; some go so far as to check experience ratings, safety violation histories, and even references. Researching the contractor’s website is also a standard part of the process when choosing who to contract with. Contractors often use pictures of their proudest accomplishments in advertising, sometimes not realizing what else they are displaying in those pictures.

review a website and find pictures of employees without fall protection, operating nail guns and other machinery without eye or hearing protection, or standing under overhead work without hard hats. Other examples include unsecured and incorrect ladder usage, employees in boom lifts too close to power lines without fall protection, and employees standing in un-shored ditches or next to exposed edges.

Sometimes pictures are left on websites for too long and forgotten about. Reviewing your company’s website and social media and considering how work activities are advertised and displayed from a safety standpoint, could result in more business in the future.

Websites often contain pictures of crews working on million-dollar homes with beautiful steep 10/12 roof pitches several stories high without considering the safety element. It is very common to

We all see photographs just like car wrecks. When interviewing six witnesses, police often get six different accounts of how the accident occurred due to each person’s life experiences and training. When looking at a picture of employees working on a roof, for example, the company’s owner may see the fine craftsmanship displayed, a roofer may notice the roofing material used, and an architect may notice the building’s structure and roof lines. But a safety inspector will see employees at risk who are not exercising proper personal safety protection and violating State Safety Codes.

With new safety regulations causing tighter monitoring, general contractors, homeowners, and government agencies who hire contractors are becoming more conscientious about safety when they review advertised pictures.