September 2017 Building Buzz

Page 1

Bismarck-Mandan Home Builders Association

BUILDING uzz B September 2017

Development Survey Leads to Discussion page 6

Multiple Gunmen Spotted at HBA Event page 8

Builders Concerns of Lot Availability Unchanged from 2016 page 10


BUILDING Buzz Building Buzz is a publication of the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730 Like Us! Follow Us!

Publisher/Editor: Dot Frank Layout Editor: Michael L. Quinn Contributor: Tracy DeForest

New Members & Anniversaries July 2017 New Members Creative Construction | Chad Dietrich 701-663-3446 | chad@

Mann Signs Inc | Scott Bina 701-355-1111 |

Railway Credit Union | Nikki Pokrzywinski 701-557-7164 |

Shanco, LLC | Brandon Wistisen 701-818-8295 |

The Pressure’s On | Dale Anderson 701-425-4141 |

Time to Renew! Members with September Anniversaries. Renew by September 30, 2017. Bianco Realty - Randy Fix | Randy Fix Real Estate

3D Electric, Inc. | Doug Dittus Single Family General Contracting | Commercial Building (Own Account) | Electrical Work

Roughrider Hardwoods, Inc. | David Jensen | | Manufacturing | Building Materials Lumber (Retail Dealership) | Other

Alliance Real Estate - Alliance Real Estate | Jamie Sorenson Real Estate

Bianco Realty | Amber Sandness | Real Estate

Aspen Contracting, Inc. | Michael Jansen, Jr. Roofing/Siding/Sheet Metal Work Bismarck Motor Company | Bob Kupper | Other

Future Builders Inc. | Kyle Morey | Single Family Spec/Tract Building | Single Family General Contracting | Single Family Custom Building G&G Drywall | Carlos Garcia Paint/Wall Coverings (Retail Dealership) | Paint/Wall coverings | Drywall Installation

Bianco Realty - Kevin Willis | Kevin Willis | Real Estate Bianco Realty - Kim Sundquist | Kim Sundquist | | Real Estate Kirkwood Bank & Trust Co. Ken Knodel | | Commercial Banking/Thrift Institution | Mortgage Banking

Mitzel Builders, Inc. | Lee Mitzel | Single Family Spec/ Tract Building | Land Development


Sherwin Williams Co. | Chad Schumacher | Paint/Wall coverings | Real Estate

Your membership is three-in-one: BMHBA, NDAB and NAHB

Professionals building our community through promotion of home ownership, education and legislation since 1958.

2017 Board of Directors PRESIDENT

Shannon Reichenberg Diversity Homes Phone: (701) 751-3999


Lynn Klein Gate City Bank Phone: (701) 355-7633


Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155

SECRETARY/TREASURER Susie Franklin Choice Financial Phone: (701) 751-7282


Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584

Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846

Jeff Sattler Sattler Homes Phone: (701)255-7628

Bill Schmid Townsquare Media Phone: (701) 250-6602

Brian Eiseman Stoneshire Builders Phone: (701) 471-6935

Wade Vogel Premier Homes, Inc. Phone (701)226-1809

Marc Menge BNC National Bank Phone:(701) 250-3000

Stella’s | D’Arcie Malsam | Remodeling-Residential | Planner or Designer | Other

The Mortgage Company | Celeste Burke | Mortgage Banking TS Security | Terry Walch | Computer Products and Services | Security Systems

Milestone Builders | Eric Budd | Single Family Spec/Tract Building | Electrical Work

Universal Homes ND, Inc. | Jeff Kilber | Single Family Spec/Tract Building | Land Development

SCHUH & FETTIG JOIN BIANCO REALTY Bianco Realty is excited to announce the newest REALTORS® to join their professional Real Estate Team: JOSH SCHUH and BRANDON FETTIG. Josh and Brandon look forward to helping clients with their Real Estate needs, achieving their dream of home ownership and providing a Tradition of Excellence!

Wagner Construction | Dan Wagner Single Family Spec/Tract Building | Single Family General Contracting | RemodelingResidential | Carpentry Work

Professional Contractors.Inc. | Don McGuire Single Family General Contracting

Woodcraft Unlimited Inc | Bob Lussenden | Insurance or Title Company

Building Buzz | September 2017

Josh Schuh

Brandon Fettig

Bismarck-Mandan Permit Reports

through July 31, 2017












120 197 178












169 132 132





48 40

26 75




2014 0

2015 2014


Bismarck2015 Multi-Family Units Bismarck Multi-Family Units


2016 Family Bismarck Single





Mandan Multi-Family Units



Mandan Single Family

Bismarck Single Family

County Permits




35 31




31 28




28 25 19









2015 Lincoln Multi-Family Units

2 2016 Lincoln Single Family

0 2017





Morton County


Burleigh County

September 2017 | Building Buzz


President’s Letter


reetings BMHBA Members,

As I write this, school is back in session, fall is in the air, and as I drive around town I see a lot of projects wrapping up. I know for a fact that 33 homes are in the final stages because they have an important deadline to hit Sept. 28, which marks the start of our Fall Parade of Homes. This year we tie last year’s participation with the same amount of homes.

One thing the board has focused on this year is to find ways to give back to our community and I am excited to announce that we will be teaming up with Bismarck Cancer Center Foundation with the Pick Pink Campaign. The Pick Pink campaign offers a special pink ticket for $20 with $10 of every ticket going to the Foundation. Be sure to stop by the Pick Pink Parade of Homes booth at Applefest at Buckstop Junction Sept. 23-24 where we will be pre-selling the tickets.

Soon after the Fall Parade of Homes, our focus turns to our Home Show, which is Feb. 9-10. A big atta-girl goes out to our team at the office because the show is already 75% full. If you haven’t reserved your booth yet, be sure to reserve it now at BismanHomeShow. com.

Shannon Reichenberg Board President

In August, we held our very first Sponsor Appreciation Lunch. Board members manned the grill and served lunch to roughly 60 sponsors. The association cannot succeed without the support of our great members and I hope this lunch served as a small gesture of thanks! Look for more of these events to come. I am also excited to announce that the Builders Socials are set to return this month on Tuesday, Sept. 19. Look for more info on the location to come soon.

The association continues to advocate on your behalf through the Special Assessments Task Force and Infrastructure Task Force. Recently the Special Assessments Task Force presented a recommendation to the City Commission and the two task forces have been asked to re-convene as one. Look for more info to come from this soon. I look forward to seeing you all at one of our upcoming events and as always please reach out to me with any questions or concerns. Have a great month! All Hands On Deck.

Your President, Shannon Reichenberg


Building Buzz | September 2017

5 Lessons


he savings and loan crisis of the late 1980s and early 1990s turned the home building industry upside down when the failure of more than 1,000 financial institutions led to the collapse of many small builders. Home builders have since recovered, and even endured another financial crisis in the mid-2000s, but there are still many valuable lessons for today’s builders.

Do your homework. Whether your project is big or small, it’s incredibly important to do comprehensive market research and stay up to date throughout the course of the project to make sure you’re not missing the start of a market shift — or crisis. “Take the longer view,” said David Ledford, NAHB’s executive vice president of housing finance and regulatory affairs. “Don’t just look at the immediate future. Rather, look at what could happen over the next period of years, as opposed to the next period of days or weeks. Recognize that things can change very quickly, so you can’t just do the research once. You have to keep it up to date and continually monitor your market.” Be politically aware. Much of the crisis’ fallout originated from changes to

tax law made in the 1980s, coupled with the fact that the savings and loan industry expanded rapidly without adequate oversight or regulation.

Make sure you’re aware of what federal, state, and local laws and regulations are being passed that may affect your ability to get a loan or even build in certain areas. Have a backup plan. When times get tough, the tried-and-true methods often have to be thrown out the window.

“Builders need to be aware that credit availability from traditional sources can’t be relied on in times of stress,” said Ledford. “You need to have a Plan B. Think about how it could work out if all of a sudden your community bank was no longer able or willing to provide credit.”

Consider what alternative funding sources are available such as local investors or even a private equity fund. Make sure the project will still be viable if you have to deviate from your original plan. Communicate with your lender. When you run into unexpected obstacles during a project, don’t avoid talking to your lender. The more transparent you are, the more willing the lender may be to work it out and stick with you through any snags. “We found in most cases, the developer

was better served by communicating as much as possible with their lender,” said Ledford. “The lenders would generally really appreciate that and be much more accommodating to working something out with a builder if the builder was willing to be forthcoming.” Educate policy makers. “Something that is always really striking to me is how little people outside of the home building arena understand about how the business works,” said Ledford.

“We spent a lot of time trying to educate the different regulators, including the Office of Thrift Supervision, which was regulating the S&Ls at the time, that residential real estate has different characteristics than commercial real estate and should be regulated and overseen in a different way,” said Ledford. “We were successful to some degree and got the regulators to distinguish between single-family and multifamily and commercial real estate.” Though the world has changed dramatically since the 1990s, these lessons are still just as important today as they were during the savings and loan crisis. Learning from past mistakes can help home builders across the country keep their heads above water even when times get tough again. September 2017 | Building Buzz


CITY & COUNTY Community Development Report Released

Development Survey Leads to Discussion Recently, the Bismarck-Mandan Development Association (BMDA) and BismarckMandan Home Builders Association (BMHBA) teamed up to survey those involved in residential, commercial and industrial development regarding potential issues, barriers, etc.

The survey generated 59 responses from across the community; up from 47 responses last year. The results of the survey, which are accessible online at, were then shared with political subdivision staff. Results were shared with Burleigh County Building Official Ray Ziegler and Mandan Engineer Justin Froseth on Aug. 3 by the BMBHA. As there were significantly more results specific to the City of Bismarck, the results were shared with City Building Official Brady Blaskowski and City Engineer Gabe Schell in a meeting on Aug. 8.

The meetings help identify solutions to common concerns expressed by participants. The two associations will continue to work with city and county staff and elected officials to ensure the growth of commercial and residential development. The City of Mandan has issued a Business Development Community Report for 20162017. Property owners received the report with their monthly water bill in August. The report is being provided to help keep residents informed about projects, progress and activities stemming from efforts of the City Business Development and Communications Department. Download the report at Copies also are available at City Hall.

Bismarck Adds Waste Drop Off Site Bismarck has a new yard waste drop site located at Calgary Drive and Pebbleview Loop. You can also access this site at Calgary Drive and Koch Drive. Acceptable items at the grass sites: • Grass

• Leaves

• Garden trimmings and excess fruit and vegetables.

Please take items to the landfill (charges may apply): • Branches

• Tree stumps • Garbage

Landfill Hours of Operation Monday – Friday: 8:00 am – 6:00 pm Saturday: 8:00 am – 4:00 pm Sundays & Holidays: Closed


Building Buzz | September 2017

DisruptWell Technology Summit Oct. 31 Bismarck Mayor Mike Seminary and Brian Ritter, President, Bismarck-Mandan Development Association announce the upcoming Bismarck DisruptWell Technology Summit. The event takes place October 31, at the National Energy Center of Excellence, Bismarck State College, 1200 Schafer St., Bismarck.

The purpose of the summit is to provide current and relevant information to those who need to think and operate beyond current technological boundaries to effectively compete, develop, create and envision in a rapidly and ever-changing global community. “Disruptive innovation and technologies are global game changers with local impacts that will transform life and business,” said Mayor Seminary. Among presenters are keynote speaker, Governor Doug Burgum and featured speaker, Chancellor Mark Hagerott, North Dakota University System. The summit lineup of presenters will include panels representing: Autonomous Vehicles, Healthcare, Energy, Education and more.

CITY & COUNTY School Board Considers Boundary Changes

School Board Appoints Member After breaking a 2-to-2 deadlock, the Bismarck School Board chose small business owner Jon Lee to fill a 10-month term left vacant by the resignation of board member Scott Halvorson. Board members anonymously ranked each of the 12 candidates’ responses to four interview questions on a 1-to-5 scale. After the interviews, the results were tallied. Lee with Bread Poets had the most points at 75; former school board member and attorney Lawrence King was second with 68. Jon Klein, a Basin Electric vice president, and Wendy Van Duyne, project manager and landscape architect at Bartlett and West Inc., tied for 3rd with 66 points. The vote to appoint Lee was 3-to-1 with Heidi Delorme dissenting.

Lee will begin his School Board position at Monday’s meeting. The regular School Board election is in June.

Building Codes, Policies and Ordinances The Bismarck school board is considering boundary changes to accommodate growing enrollment in the district. A map marked with the proposed changes is available online at Page/3227. Written description of the areas that may change in 2018-19 are on the FAQ below the map. Boundary meetings with impacted families will be held in AugustSeptember.

The Bismarck-Mandan Home Builders Association is hosting Bismarck, Mandan, Lincoln, Burleigh and Morton County Building Officials for a roundtable discussion and lunch on Thursday, Oct. 12.

Members will have the opportunity to have building officials address specific concerns and offer recommendations for improved department services. Please come prepared with questions, or submit your questions and concerns in the notes section with registration and we’ll work them into the program. Each member gets one free admission and additional tickets are $10 each. We encourage you to bring partners and staff. Register online at

Rural Residential Shop Walls Rise The Bismarck City Planning & Zoning Commission made changes to the rural residential building ordinance that increases sidewall heights for accessory buildings from 14’ to 16.5’. The maximum building height remains at 25’.


Sept. 28ͲOct. 1 | 33 Homes | 25 Builders |


Additionally, the commission added garden sheds and chicken coops to the list of permissible accessory buildings in RR and R5 districts.

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Tickets Just $10. Available at any home on the Parade route.

September 2017 | Building Buzz


BMHBA NEWS MULTIPLE GUNMEN SPOTTED AT HBA EVENT Aug. 3- BMHBA marksmen turned out for the 10th Annual Sporting Clay Shoot at Capital City Sporting Clays. Teams tested their skills at ten shooting stations, followed by burgers, beer and some good laughs. Winners included Justin Currie with BNC bank, who ended the night as our Sharp Shooter. Jesse Atkinson of Pinnacle Homes was lucky enough to win the 50/50 drawing and the game prize, sponsored by Advance Mechanical. Lance Selzer of TransTrash was gifted the Grand Prize by Starion Bank President Arnie Strebe.

Many thanks to all who participated, and to our sponsors for making this event possible. Platinum: BNC National Bank, First International Bank; Dinner Sponsor: Acme Tools; Grand Prize Sponsor: Starion Bank; Beer Sponsor: TransTrash; Gold Sponsor: Knutson Homes, Inc.; Silver Sponsor: D&M Industries; Station Sponsors: Allied Building Products, Bremer Bank, Coldspring, CS Doors, Dakota Community Bank, Design That Sells, Gate City Bank, K&L Homes, Quality Title, Vance Vetter Homes; Game and Prize Sponsor: Advance Mechanical; and a special thanks to Tom Haider with Haider Glass Specialties for grilling!

Home Show Space Sells Fast Registration for the 2018 Home Show is now open to all members of the BMHBA! Let our success be your success by showcasing your company in front of thousands of potential clients. Early Bird Registration, which was exclusive to last year’s exhibitors, filled 75% of our booths space. Although many spots have been spoken for, there is still plenty of prime booth space available. To find out more information, or to register for a booth, visit or call Terri at 222-2400.


Building Buzz | September 2017

HBA Steps up to Live United Board members Shannon Reichenberg, Greg Zenker, Jeff Sattler, joined over 1100 volunteers in the Bismarck-Mandan area for the United Way’s Day of caring on August 19. The group gathered at the new Heaven’s Helpers Soup Café location to remove an existing parking area. The good deed was part of a city-wide day dedicated to completing projects for area non-profits. Thanks to the support of people like our Board, over 150 projects were completed that would otherwise go undone due to lack of funding and personnel. If you missed your chance to get involved this year, visit to find out how you can contribute to your community.

EVENTS HBA Honors Sponsors

Sept. 12- Box Lunch With Builders hosted by Bremer Bank. 12-1 pm at the BMHBA office. An open discussion between builders and associate members. Bring your comments and ideas on the challenges you face and how to better collaborate for better business practices.

Sept. 19- Builders Only Social hosted by BNC Bank.

BMHBA Board Members served up lunch for our valuable members at the first ever Sponsor Appreciation Lunch. It’s about time we said THANK YOU to over 75 members who have contributed to the success of the association!

Sponsorships are a key component to the viability of the association, helping to provide countless services to our members, as well as a variety of platforms for advertising and branding to the sponsors. Please keep your eye out for our upcoming Association Support Campaign- a great opportunity for you to budget for continues support of the association. For the bottom of our hearts- THANK YOU SPONSORS for helping us grow!

Join fellow members for complimentary beverages and hor d’oeuvres in a relaxed, no-pressure social for builders. 5:30-7 30 on the BNC Patio, 4th and Main in Bismarck. RSVP to

Sept. 28- Oct. 1- Fall Parade of Homes.

BMHBA features 33 homes this fall! New this year- Build Hope by purchasing a PINK ticket, proceeds benefit the Bismarck Cancer Center. Visit for more information, and be sure to download the app to enhance your experience.

October 12- Building Officials Round Table. 2016-2017 Top Sponsors

Now is your chance to influence decisionmakers and help to bring solutions that benefit your business and the industry. Register at, email or call 222-2400,

October 24- Fall Awards Mixer, GMM and Board Elections.

Celebrate the Parade of Homes by recognizing the hard work of our builders and associate members. Take part in the future of the association by electing your representatives for the upcoming building seasons. 5:30-8:00 pm at the Ramada in Bismarck. $30 per member- Visit BMHBA. com/events to RSVP and for info on available sponsorships.

September 2017 | Building Buzz



Builders Concerns of Lot Availability Unchanged from 2016 By Ashok Chaluvadi

The monthly NAHB/Wells Fargo Housing Market Index (HMI) survey includes a set of “special” questions on a topic of current interest to the housing industry. In June 2017, the special questions asked builders about the supply and price of developed lots.

locations translates into higher prices, as 73% of home builders in June 2017 said the price of developed lots was somewhat to substantially higher than it was a year ago. BMHBA to Put Lots Online

To expose available lots for builders the BMHBA is adding a section to its website that will include links and listings. A submission form is will be made available to lot owners and developers who are encouraged to submit land and lot information.

Sixty-four percent of builders reported that the overall supply of developed lots in their areas was low to very low, the same share in May 2016, but up from 43 percent in September 2012. This is the largest share of builders reporting low to very low lot supply since NAHB began periodically asking the question in 1997 on its monthly HMI survey.

Members will be able to access the listings at under the resources link.


A shortage of buildable lots, especially in the most desirable



The Department of Labor has issued a request for information on the Obama administration’s overtime rule, and NAHB will submit comments independently and as part of the Partnership to Protect Workplace Opportunity coalition.

The pace of new and existing home sales fell in July, as inventory remains a key challenge for the market. Though new single-family home sales dropped 9.4% for the month, the current pace of sales is 9% higher than it was at this point last year. NAHB analysis indicates new home sales retreated in markets that experienced the greatest gains during the start of 2017, suggesting only a temporary pause.

The rule was never implemented because a judge issued a preliminary injunction against it. Secretary of Labor Alexander Acosta testified at his Senate confirmation hearing that he would prefer a more modest salary threshold than previously proposed, one that is potentially tied to the rate of inflation.

Creating additional inventory depends on industry access to labor, lots and financing. The stock of residential construction loans continues to expand, though the rate of that growth has slowed. Recent NAHB analysis indicates builder lending has increased 9% on a year-over-year basis, which is consistent with the current forecast of single-family construction gains.


To recap, the Obama administration last year issued a proposed rule that was set to take effect Dec. 1, 2016 that would double the salary threshold to receive overtime pay from $23,660 to $47,476.

By NAHB Chief Economist Robert Dietz

Existing home sales were down 1% in July, with 51% of sales occurring within one month of the home going on the market. Current inventory of existing homes is 9% lower than a year ago and has fallen for 26 straight months. The lean inventory is the primary reason home prices continue to rise, increasing 4.4% on an annual basis in June.

The Department of Labor is providing the public with the opportunity to offer input as the agency mulls its next steps.

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Building Buzz | September 2017

By Jing Fu The Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 4.4% in June, faster than the 3.2% in April and the 3.7% in May. Home prices in nominal terms reached a new high and were 3% higher than the pre-recession peak. House price appreciation continued and averaged 4.5% over the first six months of 2017. The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 1.4% in June, slower than the 4.1% increase in May. It was the lowest one in the past three years.

The methodology used to construct the S&P/Case-Shiller National House Price Index means that it is based on prices of existing homes. However, the data suggest that new home prices have been rising faster than existing home prices since the recession. As a result, the gap between the two has widened from $20,000, its average between 1990 and 2008, to $80,000.

Tax Reform and the Housing Industry Online Discussion

NAHB Leadership is hosting an important online discussion regarding anticipated tax reform legislative action. Members are strongly encouraged to participate in this discussion. There will be three, 60-minute briefings each covering the same information, so you only need to attend one. The briefings will take place Monday, Sept. 18 at 8:30 a.m., 11:30 p.m. and 2:30 p.m. You must pre-register for this member-only event. Please make certain you are logged into as this is members-only content.

#THANKAFRAMER According to the NAHB, more than 70% of builders reported a shortage of framers while 78% reported a shortage of subcontractors able to handle rough carpentry. With more than 200,000 construction jobs already vacant, the industry needs to train more Americans to fill these positions. On August 29, 2017, Norbord Inc. launched its “Thank a Framer” campaign to show its appreciation for framers who work tirelessly to build the structures that house our families, and to inspire the next generation of men and women to take up their tools.


Although the labor market has strengthened and house price appreciation has improved home equity, the inventory of new homes also remains low. Builders remain optimistic, but the challenges faced by the industry are raising production costs and inhibiting housing production growth which is limiting inventory expansion and pushing up new home prices. Labor shortages represent one of the biggest problems that builders have been facing. In addition, the cost/availability of developed lots, regulations, and building materials shortages are other top problems faced by builders.

Learn marketing and sales tools that can build your brand and a positive reputation. Offered in a two-hour webinar format over three consecutive Tuesdays, Oct. 3, 10 and 17, Marketing and Sales for Building Professionals Live Online will teach your members to engage and motivate customers, clients and referrals to use their products and services. Visit for registration details.


House price appreciation reflects both recovering demand and low inventory. Information provided by the Bureau of Labor statistics indicates that national payroll employment continues to grow. A healthier labor market is supportive of stronger housing demand. However, on the supply side, inventory of existing homes declined and the July unsold inventory was low, at 4.2 months. A month’s supply reading at 6.0 months is considered the benchmark for a healthy housing inventory.

Live Online Course: Marketing and Sales for Building Professionals


Home Prices Grow in June

“Our Company recognizes and appreciates the contribution of framers to the home building industry,” said Peter Wijnbergen, President and CEO of Norbord. “As part of our Thank a Framer campaign, we are donating US$100,000 to the HBI which will go toward training and educating new construction professionals to help ease the labor shortages that are afflicting our industry.” The HBI supports diversity and provides training for prospective construction professionals, veterans and underserved youth and is celebrating 50 years of skills training in the building industry this year. To support this campaign, visit and watch the video, enter the sweepstakes to win great prizes or donate to the HBI. Share the video on social media with the hashtag #ThankAFramer. September 2017 | Building Buzz


JUDGE STRIKES RULE TO DOUBLE OVERTIME PAY THRESHOLD A federal judge has struck down the Obama administration’s overtime rule that would have doubled the salary threshold for workers to be able to receive overtime pay. The Justice Department subsequently announced it would not appeal the ruling, effectively ending the Obama-era expansion of the overtime rule.

has not been enforced because a judge issued a preliminary injunction against it.

Working with Congress and members of our business coalition, NAHB led the effort to mitigate the effects of the rule. Moreover, last year, NAHB joined other business groups in filing a lawsuit in federal court challenging the overtime rule. As a result of these efforts, the rule

In mid-July, the Department of Labor issued a request for information on the Obama administration’s overtime rule, and NAHB intends to submit comments independently, and as part of the Partnership to Protect Workplace Opportunity coalition.

The Obama administration’s final rule that was set to take effect Dec. 1, 2016, raised the salary threshold for executive, administrative, or professional workers to receive overtime pay from $23,660 to $47,476.

HOW TO MOTIVATE POTENTIAL CUSTOMERS With new technologies, the influx of Millennials and more informed and demanding buyers than ever, how do you stand out from the crowd and make your brand relevant?

The NAHB Marketing and Sales for Building Professionals Live Online course will demonstrate the latest marketing and sales tools available today to help you engage with and motivate potential customers, clients and referral partners. The course is taught over three consecutive Tuesdays, Oct. 3, 10 and 17, from 12-2 p.m. Participants in this course will be able to:

• Identify social media and emerging technology to enhance marketing

• Recognize a variety of methods to generate and qualify sales leads

On Aug. 31, the district court issued a decision finding the Department of Labor exceeded its authority and the automatic update provision was unlawful. Accordingly, the court held the overtime rule is invalid. Less than a week later on Sept. 5 the rule was effectively killed when the Justice Department announced it would not appeal the district court’s decision.

SMALL BUSINESSES SEE BIG SAVINGS WITH HRAS As fall approaches, so too does the open enrollment period when millions of Americans assess their health care coverage and costs.

Though considered by many employees as a high-value benefit, HRAs were eradicated in 2013 by the IRS, which then imposed fines on any employer who continued providing them — fines that would total as much as $36,500 per employee over the course of just one year. But thanks in large part to the efforts of NAHB, with the support of a large coalition of business groups, the 21st Century Cures Act was passed last year and became effective Jan. 1. NAHB played a critical role in urging Congress to add a section within the Act that would restore the ability of small business owners to offer stand-alone HRAs and rescind those costly penalties on employers.

Economists at NAHB evaluated the financial impact of eliminating those excessive fees, and they determined the effect is equal to each NAHB member saving approximately $900 with each housing start.

• Describe time-tested and cuttingedge tactics to increase the effectiveness of advertising, promotions and public relations

• Develop positive strategies to gain the agreement and close the sale • Define follow-through techniques that lead to great referrals

Registration is open until 2 p.m. on Monday, Oct. 2.

Let’s Build Together.

When it comes to building a home, there are a lot of decisions to be made. But when it comes to your closing, we’ve got you covered.

701.223.6835 Montana | North Dakota | Minnesota


Building Buzz | September 2017

BUILDING A BUSINESS FROM THE GROUND UP Jake Brown of Winston Brown Construction of Topeka, Kan., took an enormous risk in January 2008: He started a remodeling business during the height of the Great Recession. Starting a remodeling business during the worst recession in recent history may seem risky, but Brown had nowhere to go but up. Over the last nine years, his annual revenue has gradually grown from $400,000 to $5 million.

This impressive growth is only part of the reason why Brown was selected to be NAHB’s August Remodeler of the Month. He largely focuses on client satisfaction and no-nonsense business tactics.

“We don’t rely on sales gimmicks or discount coupons,” says Brown. “We get to know the customer and what their goal is with the space they want to renovate.”

By working with the customer and within their budget, Brown says there are no surprises. “This creates happy customers who love their new space and are eager to tell their friends and family about Winston Brown Construction.” His refined approach to marketing is a mix of traditional and digital tactics. “We have a great website, and we also do TV commercials, Facebook, Google, Houzz, Instagram, wrapped vehicles, yard signs, etc.,” he says. “Everything kind of works together to make us extremely visible.” Being involved with his local HBA, the Topeka Area Building Association, and NAHB Remodelers has been valuable to Brown, as well.

“It means a lot … knowing there is a large, smart, fun group of people who share the same interests as me.” And if he needs any resource, he notes how easily he can find it on NAHB Remodelers’ website or at the International Builders’ Show.

THERE’S STILL TIME TO SAVE Those who snooze, typically lose. But if you happened to “hit the snooze button” on August registration — and the savings that came with it — for the 2018 NAHB International Builders’ Show® (IBS), do not despair.

Organizers have decided to extend those incredible August deals to all who register by Sept. 15. That means there is still time for NAHB members to obtain a free expo pass (non-members save 50%) and save $100 on a full registration. Additionally, spouse registration is free before the Sept. 15 deadline. Savings like these can certainly help make the typical burdens of traveling seem much less onerous. Plus, registrants can rest assured that IBS 2018 will be well worth the effort.

Countless IBS attendees have said they continually make new connections during the event who helped them find ways to boost business or solve major challenges. And numerous education sessions provide strategies, tips and insights to improve business practices and increase profits.

“I learned so many great tips, techniques and trade secrets — things that I’ve been able to apply to the business already and others that we’ll continue to do to hopefully build a stronger company,” said Dan Souther, of Round Here Renovations in Atlanta. Others say their favorite aspect is seeing so many cutting-edge products and demos all in one place. More than 1,400 manufacturers and suppliers will be on hand to showcase the latest products, services and techniques to help keep your company competitive.

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September 2017 | Building Buzz


NDAB NEWS Monthly News from the North Dakota Association of Builders

Presidents Message

September 2017

Back to School Time!

September brings us cooler temperatures, football, pumpkin spice and beautiful colors. It also brings An article that I recently read by NAHB us back to chaotic school schedules and for some, discussed the results of a special study by empty nests as kids head off to college. A large related to the US number of baby boomers are reaching the point Census Bureau’s Annual Survey of where their children have grown up and moved Entrepreneurs. This survey allows NAHB out of the house. Though the transition from full to compare construction to other house to empty nest can be filled with excitement, industries. There were a few results of the it can also be filled with stress. Among numerous study that can shed some light between the Kim Schneider questions that may come to mind, you might be similarities and differences that Eric Brenden CEO wondering if this is an opportunity to move and construction might have with other downsize to a smaller, more manageable home. Or industries. Most of us probably know much perhaps you want to stay in your current home and repurpose the extra of the information, but analyzing the results of the survey may space. help us find ways to promote construction to future entrepreneurs. The answers to these questions depend on your unique circumstances. But for those who decide to stay put—at least for the time being—now is a Several of the key results of the survey include finding that, great time to begin considering which, if any, modifications your home compared to other industries, construction businesses in the U.S. may require to better suit your needs as you get older. Rather than waiting tend to serve customers within a single region, they are more until an incident occurs, be proactive about making alterations to your likely to operate on a seasonal basis, they operate out of the home that will help you avoid potential injury. Here are a few things to keep in mind if you are planning to “age in place.” business owner’s home more often, they tend to use many different subcontractors, and they are less likely to have company Prioritize Your Wish List With the kids out of the house and more free time on your hands, you websites. might have the urge to dive right in and tackle many of the DIY projects on your list. But first, take another look at the rooms in your house to deMuch of the useful information from the survey is the financial termine which ones fit your new lifestyle, and which ones need some data. First of all, as many of you know, construction businesses require less start-up capital than many other businesses. Personal work. Some areas of the home might only need minor changes. Others might need to be repurposed altogether. Take the time to create a general and family savings of the owners are the primary source of startplan and prioritize the items on your list. up capital for construction companies. Construction companies Focus on Improving Livability acquire bank loans for start-up capital less often than other Many empty nesters hire expert remodelers to adapt their home to make it industries. As far as profitability, the percentage of construction easy to use and maintain. Stairs can sometimes become a problem, but companies that record a profit is very similar to the other industry moving the master bedroom and the laundry room to the ground floor can average. A couple of downsides, as we all know, is that be part of a solution. Doing so can give home owners many more years in construction companies are susceptible to the negative impacts the home they love without a sense of urgency to move to a one-story from labor shortages and late or non-payment by their customers. home. Building professionals who have earned the National Association of Home Builders’ Certified Aging-in-Place Specialist (CAPS) designation The lower cost of entry into construction can offer opportunities to have received training on how to build or renovate a home so that the ocyoung entrepreneurs who are interested in the industry. As I wrote cupants can live in the home safely, independently and comfortably, regardless of their age. about a few months ago, the more we can educate children of the opportunities that the construction trades can offer them, the more Expand Your Space Depending on the age of your home, you may find that, for example, your likely we will be in tackling the labor shortage. The more young master bedroom or bath is too small for comfort. Look for opportunities to people we attract to the industry would then result in creating expand those rooms into adjacent, unused or underutilized spaces. A remore entrepreneurs as well. I read that Colorado has recently modeling professional is the best person to help you determine what your passed a bill that requires public schools to inform high school options are to build your dream master bathroom or bedroom. They can students about the opportunities in trade schools and military also help you find ways to create a more open floorplan that is easier to service, and what they need to do to follow these career navigate for those with mobility concerns. Incorporating these changes paths. Maybe this is something that we should pursue on a state will not only create a home that suits a changing lifestyle, they also may level as well. increase the value of your home when you eventually decide it’s time sell.

To learn more, please contact our office or your local HBA. We are here to help you enjoy the transitions of the seasons and of your lifestyle.


Take care, Kim

Back your PAC … your PAC backs you! NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non-partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or to contribute or learn more! North Dakota Association of Builders ❖1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖701/222-2401 or 800/326-4746 ❖


Building Buzz | September 2017


Around the State ForxState Builders Association Around the Department Fargo, Inc.; Darrick Guthmiller, Betty McDonald, Executive Officer of Health’s Water Quality

Dickinson Area Builders Assoc

Tiffaney Dolechek, Executive Officer Division. Signups have begun.a Kochmann Services, Brothers Homes, Inc.; Rachel Bismarck/Mandan HBAalready for donating Decorating Top Recruiter; Ken 701-483-0044 | 701-746-4536 Hanson,Bell McGough Construction; Ryan| Frank, Officer Executive Officer computer ourtakes new place Executive! Krajsa, State Bank & Trust, Top • The Board for Bash June 19th at Dot Frank,Dot Executive Hoss, Matrix GeorgeProperties Fraza, Blue Cross BlueBob 701-222-2400 • Each year the DABA gives $500 scholarships Spike; to four • Corporation; Our Annual Golf Outing is scheduled for September 7th at home. It will bebeing a great chance  Elysha’s Home show booths are sold now! 701-222-2400 of ND,Kochmann Top New Spike; Ken Krajsa Kochmann, Brothers Homes, individuals seeking higher education in a subjectShield related Kings Walk Golf Course. for MAB 8th board members to get to know January is the deadline for our Cornerstone Award.Labor HBC Masters; granted $12,500 Inc.; Nancy Kelly, Dustin preferred Home show ispicnic April 15 one anothervendors. and enjoy a backyard Registration isindustry. now open forfollowing the 2018 the buildinghas This year our winners are Austin • toThe BMHBA been busy in scholarships to local high schoolcome help us celebrate • Please Betty and her 19 Murray, Dustin Murray Construction; – 17, 2016 - McDonald Home Show. The event takes place Feb. ordinance updates in Bismarck andJay Davis, and Wyatt Karsky, Margo Binstock, Trenton J. and college students • The 2017 Birdie with the Builders Golf students in or yearsSpaeth, of dedication to Forx Builders. Betty’s retirement party Dan Parrow, ISR Homes; Tom contact Mandan, Burleigh Morton to Counties. 9-10. The Johnson. DABAand is proud support these individuals and is July 31st at the Minot for planning on enrollingJeff in the construction Accent Contracting; Swenson, Twin will be September 14thTournament at Lincoln Park from 5-7pm. If you questions. All are reviewing and updating dated Country Club. Several teams have • wishes The New BBQ attracted 45 future careers. programs. themMember the best of luck in their City Garage Door, Inc.; Mark wishWentz, to attend, please call the office to RSVP! codes. Eyes are currently on permit cost  Our December General Membership already signed up and many tickets to the members for a fondue steak dinner on the  The HBA of F-M held a PAC Social with Inc.; Scott changes and development • On August 10th we had ourstandards. Annual Golf ScrambleGraybar at the Electric Company meetingis will be held onbeen the 17th Builder Ball Drop have sold!be There HBA patio. • The 3rd annual Chili Cook-off in the works and will special guest West Jerry LLC. Howard to talk about Wirth, Roers Riveranalysis Golf Course. 68 players golfed nine holes and • Heart A housing conducted by Bismarck are bigdetails surprises inbestore for this year’s NAHB is working onscheduled in D.C. andin October. More will announced soon! Hundreds of members met at The Post for • issues The HBA of F-M Golf Outings will be anda Mandan outlines need for antruck in a Hole-In-One had chance to win aabrand new participants that will be revealed soon! how they tie in locally. The event was a our Annual Scholarship Picnic. Proceeds Thank you so much to our Annual July 11 and 22. Spotsinare still open additional 7,786 owner-occupied homes contest sponsored by Sax Motors. Unfortunately no one was success withAug. 75 members attendance. • The Guns ‘n’ Roses Trap is August from raffles and a issilent auction support Banquet Sponsors! YourShoot support Minot Association of Builders by 2030. The HBA working on a task for both events, but are filling up quickly. th lucky enough to win the truck, but it was a beautiful day and 29 from 5-9 PM at the Minot Gun  Just under 20 members attended a Lunch three, $1000 scholarships to BSC. force to explore implementation of the New this year is the Hirshfield's PaintExecutive helped us to put on a great event!Club. We Elysha Head, Officer had a great time! Thank you to all of our Sponsors Enjoy an evening on the range, a hearty Session with local buildingregistration officials to and talk study’s recommendations. • everyone The Fall Parade of Homes will be held Bloody Mary Bar during had a great crowd and a fun evening 701-852-0496 | andthetolast Saxweekend Motors in forSeptember. the fun contest! about the latest issues in residential steak dinner and then bring home a dozen Builders lunch!  Members elected a new Builder board celebrating thetoyear and special! construction. roses fora $20 yourend someone Birdie with was hit! 100 golfers enjoyed areDABA encouraged toofGMM mark their member atParade the Fall on Nov. 24 to in fill 10th • The Homes iscalendar September and 11th.conference We recognizing all Almost our amazing Award • A press with• the mayors of the Builders  The New Year Celebration & City Night is • The 2017 Parade of Homes is shaping up anticipation ofVance thefeatured annual event. golfing 18 holes at the Minot Country Club on July 31st. The Past President Vetter’s seat. The will have 5 homes this year and look • forward to winners. We are already looking Dilworth, Fargo, Moorheadinand West on Jan. 28 at the Radissonday Fargo. to begood atogood one!and Several homes directors willtobe sworn in at wasJune full of contests, food drinks. 14 are sponsors forward doing it all again next year a 2016 greatboard event!ofThank you our presenting sponsors Bosch Fargo was held June 5 to proclaim Mayors from Fargo, Moorhead, West already signed up withwith moreBremer to come! Bank theDickinson Annual Banquet on Jan. 14. AreaBank, Builders Assoc. partook Sponsor Contest as Homeownership Month. in Bismarck! Lumber & Bremer major sponsors Consolidated, Fargo, Dilworth & Oxbow will be in in the Hole More details willskewers be announced soon! drink  Liberty The BMHBA welcomes all members to winning. Their combination of steak and a tasty Doors, ReMax IntegrityOfficer Realty, and Kahmattendance and participate on a mayoral Tiffaney Dolechek, Executive attend a Lead Renovator and Lead Forx Builders Association named JohnAlDaly wonWilliston our hearts and won them $100 of their We will also have special guest Construction, • and corporate sponsors Gate Citypanel. Bank, & The Area Builders Association 701-483-0044 Renovator Initial and Refresher course Jaeger, Secretary of State.2018 If you Home would and Garden Show booth. Congratulations to all Title Resource Network. on Nov. 30 and Dec. 1, respectively. Betty McDonald, Executive Officer like to attend, please visit the events participants and contestAnn winner. Kvande, Executive Officer register.Picnic • Visit DABA hosted theirtoSummer 701-746-4536 calendar at 701-572-5744 • The Guns ‘n’ Roses Trap Shoot is headed our way on August Home Builders Assoc. of Fargo-Moorhead & Bean Bag Toss Tournament on June Dickinson Area Builders Assoc. Forx Builders Association 7th. We had around 130 people attend the 29th at the Minot Gun Club spend an evening Builders, on the range Bryce Johnson, Chief Executive Officer • We are looking forward to the annual Platinum Sponsors—Kuntz Irene Schafer, Executive Officer Betty McDonald, Executive Officer • Apick special youroses to thefor Williston CVB event and| teams in the tournament. and before you leave, up athank dozen $20 701-232-5846 July Builders After Hours at Tim Shea’s Inc. and Winn Construction, Inc. for your 701-483-0044 for the grant to assist with the ND-PAC 701-746-4536 DABA member Mark Selle and EO someone special! Nursery and Landscaping on July 18th. It Summer Conference June 27-28, 2017 in Tiffaney were thetowinners! A Summer Hammond HBA ofDolechek F-M would like welcome is always a great networking time for our • The Our regular GMM was held at the Eagles Sponsor—ProBuild • The 2017 Parade Silver of Homes is scheduled for September 16th  There was good attendance at Slate Williston. big thank you to the Picnic committee for toClub the HBA of F-M team as athe education members. on November 11 with moment of & • development Interior Design’s Novemberfrom Builders afterto 4PM. 10AM This year’s Parade route features planning and organizing the event, and to • WABA is pleased to announce start of a 11 coordinator. Hammond is responsible for the• HBA of F-M’s silence honoring our veterans. Our Annual scheduled forcrafted NDAB-PAC Sponsor—Bosch Hours. ThankGolf youOuting Alissa. ismasterfully Dakota Community Bank for grilling for homes in Reception Minot and7th, Burlington. Ticket sub chapter. On June the McKenzie th including continuing education Kings Walk Golf will September 7 atBuilders  education Our Homeprograms, Show committee is busy Lumber Co.  The December after Hours be already us again this year! pre-sales have started and MAB anticipates a great County Builders Association was named. Course. planning our Home Show in April, contractors, and developing opportunities forhosted futureby the Membershipturn Committee out. and • The 1st Annual Playhouse Raffle drawing • for The DABA Golf Scramble is set for updating and features. Banner Sponsor—Roers West, LLC th adding new workforce, endowment Home the the Board of Directors at Keith’s Security August 10fundraising , and we areand looking forward growth for is scheduled for July 18th. There are Minot of of Builders  Builders Our main focus now is on World. JimAssociation Bisson owner Keith’s Lock & Care ofright F-M Foundation. to having a great event! many great prizes with the grand prize of Area Builders Association Key will be retiring theWilliston end of December the State Meeting here in Dickinson. We nd a custom 8'x12' playhouse donated by Welooking areHBA busy planning our 2 this annual Executive Officer Executive we willHead, be helping him Kvande, celebrate this • • Over 20 members attended toElysha learn are forward to making aathLunch Sessionand Ann Officer Also, Thank you to the NDAB 2015 Windsong Custom Homes. Tickets are Parade of Homes forcompany. September 9he and 701-852-0496 milestone. special night foryour Arnold Karsky as is how to market HBA member Rachael Boyer, 701-572-5744 | Partners! truly appreciate $50. ForWe additional information,your contact fantastic committee 10th. Weashave installed our aState President.  Our Home Design and Garden Show will support and Clay we have enjoyed serving CEO of The Coatings Authority, Inc., led the class covering us at 701-572-5744 • WABA hosted its 2nd Annual Shoot and Membership working hard to make it another  effective Following that, we also busy planning our be held April 1, 2 & 3 at the Alerus Center. • MAB’s first Tool Belt Barbecue was a throughout the entire year! will marketing techniques, online presence and creating successful Parade! Appreciation Picnic on Thursday, August 17th at Painted annual Christmas Party. Newly elected success! Over 50 people attended the a Vice strong brand. Val Voelkering is busy with Minot be hosting 2nd Annual Clay Shoot and Association of Builders Woods Sporting Range. President, lunch hour event that raised over $100 Membership Appreciation Picnic Executive Officer committee putting final touches to to over a during the by scramble was held on Tuesday, August 29that Eagle • Inher July, a free lunch was provided 180 members at meat raffle sponsored • The golf on Thursday, August 17th at Painted very special evening at the Elks Club. 701-852-0496 Future Builders. Derek Bischoff of the HBA’s annualChief Muddy Boots Officer Picnic. In August, dinner was Ridge Golf Course. Woods Sporting Range. The golf Bryce Johnson, Executive  We would like to take this opportunity to Connole and Somerville won the meat scramble is scheduled for Tuesday, provided over to Kim 701-232-5846  We are having Open House” for extend antoinvitation and Heather raffle and took aa “Holiday cooler full of meat treats August 29that Eagle Ridge Golf Course our members here at theChris officeDahl, December andFall other associations to is attend home! MAB President, • The Parade of Home Sept.our 16- 17 & 23-24 and the and our Parade of HomesDakota will be held in 15th from noon-7pm with food and Christmas party. Gold Partner - Montana Utilities • Remodeled Held a landscaping volunteer day for reigned supreme and won the Battle of Home Tour is Sept. 23-24. There willbeverage. be 53 new late September. For additional ArmyChristmas Master Sergeant Eric New Mart's home the Board with his BBQ rib recipe  homes Merry and Happy Year to information on- upcoming events, remodel projects. start of thehis competition by only a point. Silver Partners Bismarck-Mandan beingand builtfive through Home BuildersPrior Care,to the beating everyone! Williston Area Builders Association visit: parade, local high schoolFor students will tour a fewMAB homes with forward to next year’s ISR Homes and Homes Our Troops. Home Builders Association, Dickinson is looking Janna Lutz, Executive Officer builders toAcademy promotefor careers in the trades. Battle of the Board! Thank you to Dakota Area Builders Association, Home Builders • theThe Herdina Construction 701-572-5744 Bryce Trades Johnson, Vice President Stone and Granite, Anasazi Builders and Association of Fargo-Moorhead, & ranExecutive June 5 - 16 and had 16 6 participate. Thank 701-232-584 First International Bankincoming and Trust for Northern Plumbing Supply students you to our  WABA welcomes new board sponsoringLance the event! Adopt-a-Student Sponsors: Dave members: Bevier of Tractor and  Thank you to everyone who attended our Bronze Partners - Bell State Bank & Co., Joan Mainwaring of was Anderson, Dave Anderson Construction; • Equipment May’s Lunch Hour Learning session Awards Gala & Annual Meeting. The HBA American State Bank and Trust Co., like and Chris Bachmeier, Bachmeier Custom Trust, Forx Builders Association, Minot well attended and featured speakers of F-M celebrated award winners and Bob Radermacher Bakken Contracting. Homes, Inc.; Grace Backman; Lance Meyer of theofCity of Minot, Aaron Association of Builders, ND Guaranty & scholarship recipients with over George 200 of its Blank, Structural Materials, Moss Schneider, of the Minot Police  Mark LJA, wasDepartment, sworn in as our Title Co., ND Housing Finance Agency, members. The awards went toInc.; ClayToby Christensen, Camrud Foss Concrete and Rodney Torgeson of the incoming WABA President at Highway our Annual ProBuild, RDO Equipment Co., & Williston Dietrich, Dietrich Homes, Inc., Builder of Const., SupplyColdwell Group; Jason Meeting Patrol. in November. Area Builders Association the Year;Inc.; PaulDakota Krabbenhoft, Eid, Eid-Co Buildings, Inc.; Clay Banker First Realty, Associate of the Year; • Top Spikes were also recognized: Bill June’s Lunch Hour Learning will feature Dietrich,Homes, DietrichBEAM; Homes, Inc.; John Heritage Dan Beecher, Murphy and Dave became a presentation fromNordenstrom North Dakota’s Gunkelman, Construction of Foam Doctor’sDakota LLC, Extra Mile; John Life Spikes in 2015! Koerselman, Red River Drywall &

Special thanks to Dot Frank and the

❖North Dakota Association of Builders

North Dakota Association of Builders


July 2017

 December 2015 September 2017 | Building Buzz


PRSRT STD U.S. Postage

PAID 2600 Gateway Ave., Ste. 1 Bismarck, ND 58503

UPCOMING BMHBA EVENTS Builder’s Social Hosted by BNC Bank - Sept, 19 at 5:30 pm 2017 Fall Parade of Homes - Sept. 28 - Oct. 1 Fall Awards Mixer & Board Elections - Oct. 24 - 5:30 pm 2017 Holiday Home Walk - Nov. 19 - 12:00 pm

Permit #72 Bismarck, ND 58501


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