Canadian Contractor October/November 2011

Maxwell’s Show Pics | Resolving Conflict | The Road to $3 million

OCTOBER/NOVEMBER 2011

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COMMUNITY

Winner

With a head for business and a heart for his community Brian Williams, owner of Ashton Service Group, wins Canadian Contractor’s first Community Leader Award

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Contents

26

page

Features Cover Story

16 Community service provides winning leadership

Departments 7 Editorial

Knowing and doing

Brian Ashton, Aston Services Group, wins our first annual Community Leader Award

36 Contractor University

26 Truck safety

Stuff we like 40 Steve Maxwell’s Construct Canada picks 42 Product file: Task, Makita, Bosch, Milwaukee

The new light-duty trucks are safer than ever

Facts and Ideas 8 Conflict-busting conversations

Grow your company, Part 3

The Holdback 46 Speared by WSIB

How to turn conflict into opportunity

10 Site notes

Green insulation...earthquakes...Space Age heat

Guest Column 12 Ian Szabo

Do your work, then let it go

14 Letters

Contractor U hits the spot www.canadiancontractor.ca

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Editorial

knowing and doing They are very different

I had the opportunity to join a Renovantage seminar not long ago. During it, I met a few Canadian Contractor readers and listened in on coach Mike Draper’s presentation of the eight steps to building your company into a successful multi-million dollar concern. (see Contractor U, The 3 Million Dollar Road, page 36.)

It reminded me that if we can only do one thing with this magazine, it has to be to remind you, over and over again, of all that is contained within those steps.

The road to success is actually quite simple. There is no mystery to it, and probably not much that you don’t inherently know already if you have been in business a few years.

It is contained in the eight steps of Mike’s seminar, but time constraints don’t allow him to drill down to specifics.

For instance, he made it clear that as you grow, you need to step away from the variety of tasks you perform for the com-

Another of the steps—to train your brain to think differently—took Mike five minutes to outline, but will take a lifetime to execute for most of us. There have been dozens and dozens of books written to explain how to develop a positive frame of mind. Everyone who has tried to make themselves think successfully has had setbacks or has had to change their approach and even abandon the effort for a while to reload and rethink what works best for them. Whatever the process, it remains an irrevocable step to building a successful business and one you will have to address at some point.

Visualization is a common approach to mind-changing (with dozens of books on this alone). If you can visualize your projects proceeding on time and on budget, you head off the negative thoughts of failure, mistakes and cost overuns that can demoralize you and become self-fulfilling prophecies.

Visualization might seem phony to you, but that does not

“The road to success is actually quite simple. There is no mystery to it, and probably not much that you don’t inherently know already if you have been in business a few years.” pany (sales, project management, estimating, hiring, carpentry, etc.), and assign those tasks to someone else either through hiring or delegation. The object is to give you more time to work on the business, not in it. What he couldn’t explain in the time he had was exactly how you shed those responsibilities without blowing your profits or screwing up your projects.

One strategy is to write job descriptions for each of the positions you hold. Writing helps you to understand the borders of each of those responsibilities better (they tend to run together when one person is doing them). Also, as you write you will gradually form an idea of the kind of person you would like to see filling each position. That helps you identify the right person when he/she comes along. Even more important, the writing has the effect of reminding you of the jobs you like and don’t like so you can prioritize in what order you shed them. www.canadiancontractor.ca

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exempt you from having to ensure that you maintain a positive mental attitude and fight the personal, internal enemies of your success. You’ll have to do this step somehow or success won’t come. And that’s not negative, that’s just the truth.

Achieving success is not a matter of knowing what to do; you can know that in two hours with Mike. It is in the relationship between the eight steps and your will. If you have the will to succeed, the steps are clear. All that you need is the details, and my will is to bring them to you, one way or the other, within the pages of this magazine.

Mike will send his power-point of the seminar if you email him at mike.draper@renovantage.com..

—Robert Koci rkoci@canadiancontractor.ca Canadian Contractor y October/November 2011

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Conf lict-busting conversations

By Steven P. Dinkin 8

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Facts & Ideas

Putting out fires is an all-too-common job requirement for many site supervisors and general contractors. If you’re struggling with establishing positive conflict resolutions among your employees and subtrades, here’s some advice on how to master these tough talks.

D

isagreements, disputes, and honest differences are normal in any workplace, but when these normal occurrences are treated as opportunities for exploring new ideas about projects they can become catalysts for increased energy and productivity. Getting to that place starts with an honest discussion.

That’s what my co-authors (Barbara Filner and Lisa Maxwell) and I explain in our new book, The Exchange, which supplies readers with proven tools for resolving emotionally charged disputes. The Exchange itself is a four-stage, structured process specifically designed to encourage discussion of all the issues in a dispute—even the intense, emotional issues—in ways that are more productive than a gripe session. It derives from the conflict resolution model used successfully by National Conflict Resolution Center mediators for more than 25 years and includes constructive techniques to use in face-to-face meetings with disputing or disruptive employees. You can use this process to break down barriers and create changes that have a positive effect on your whole workforce.

The exchange begins with you, the general contractor or site supervisor, and ends with your workers meeting to develop effective solutions. Like most leaders, you probably did not set out to be a conflict resolver, and you probably find it more than a little frustrating to be your own resident fire chief. You have to resist the temptation to simply tell people what to do. Actively engaging your employees and subs in problem solving helps them take responsibility for the problem and for the solution.

The following tips will teach you how to turn your next meeting with conflicting employees into a productive conversation.

1. Start with an icebreaker. Most people will be ready to complain, debate, or argue at the beginning of any conflictbased conversation. They have marshaled their most compelling arguments and are ready for battle. If you go straight to the topic of controversy, most people will quickly get stuck in defending their positions and attacking their opponents.

That’s why you need to do something different. Begin with an icebreaker. This is not just a light introductory activity; it is a way to non-confrontationally initiate a conversation about difficult issues. An ideal icebreaker asks for a person’s own take on something that’s both work-related and positive. For example, if the conflict involves two workers involved in the

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same trade, you might break the ice by asking each of them how they became involved in the trade.

2. Listen. Conflict resolution is tricky because too many leaders ignore the fact that sometimes what they aren’t saying is more important than what they are saying. Often the best resolutions come from listening carefully to what the other person has to say. Being an active listener sends the message that you are genuinely concerned about him or her and the dispute. Put simply, it’s the best way to get good information.

Ask an open-ended question; it can be as simple as, “So, tell me, what’s going on?” Then listen carefully to that person’s side of the story. You’ll know it’s time to insert yourself into the conversation when the discussion turns negative.

3. Acknowledge emotions without taking sides.

Especially at the beginning of talking about a conflict, you’re building rapport, even if it’s with an employee you’ve spoken with millions of times before. When there’s a conflict, you’re treading on new ground, and showing that person you are willing to see his or her side of the story is how you will set the foundation for working toward a solution.

4. Use and encourage positive language. This one might seem like a no-brainer, but any frustrated mediator knows how easy it can be to slip into negativity after a conflict has affected a jobsite. Always think before you speak. Use positive, easy-to-understand language. Don’t fall into repeating, verbatim, paragraphs.

Remember, you’re having a conversation, not a trial. If you keep the language positive, whoever you’re addressing will likely mirror what you’re doing. Even referring to the job’s problems and needs can be stated in very positive terms, which will lead to a more collaborative (rather than punitive) tone in the discussion. For example, if the site super says, “This fight is affecting the job; we need to address it so we can get back to our work and we can enjoy working again. I am looking forward to getting you two back on track and improving morale for everyone,” it will set a constructive atmosphere.

When you keep things positive, you can work toward great solutions efficiently and effectively.

Work toward S.M.A.R.T. solutions. Sustainable solutions are SMART solutions. That means they’re: Specific: Be clear about who will do what, when, where, and how.

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Facts & Ideas

Site Notes

By Robert Koci Sustainable insulation Living up to its commitment to provide progressive, sustainable building solutions, CertainTeed Corporation’s fibreglass insulation manufacturing facility in Ottawa has optimized its operations to manufacture the company’s Sustainable Insulation. With this conversion, CertainTeed now offers all of Canada one of the industry’s most sustainable lines of insulation products, boasting the highest third-party verified recycled content for fibreglass batts at a minimum of 67 percent.

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Visit www.certainteed.com

Manly Colours “Studies show that while a larger percentage of women tend to choose paint colours for their home, it’s often men who give the colours a final nod and then go on to spearhead the project,” says Alison Goldman, Marketing Communications Manager for CIL. “In an effort to get men

more enthusiastic about painting projects, CIL is launching a campaign to involve them from the get-go.” To this end, CIL is calling upon Canadian men to rename any existing CIL paint colour according to

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Measurable: Be clear about how you will all be able to tell that something has been done, achieved, or completed.

Achievable: Make sure that whatever solution you agree on fits the situation; that it complies with both the law and your policy; that everyone involved has the ability and opportunity to do what is required of them. Don’t set up anyone to fail.

Realistic: Check calendar dates for holidays and vacations; look at past performance to predict future actions; allow extra time for glitches and delays; don’t assume that the best-case scenarios will come true.

Timed: Create reasonable deadlines or target dates; include a few ideas about what to do if something unexpected occurs; be willing to set new dates if necessary.

Once you have your SMART solutions in place, immediately put them in writing.

Putting solutions in writing is very important, and not just for legal reasons (and for covering your back); it’s a way to honour the work that you and the conflicted parties have accomplished. It’s also a way to keep people’s memories from diverging from the agreed-upon solutions. Verbal agreements have a way of being remembered very differently by different people—and then becoming the subject of another conflict. It’s

safer and easier for everyone to have the solutions written down, in order to be able to easily verify them later.

Disputes, full of emotional complexities and interpersonal histories, are the headaches of the jobsite. They’re always going to pop up, even in the most cordial of workplace environments. The good news is that when you’re armed with the tools you need to work toward productive resolutions, you, your employees and your subs can use them to strengthen your organization rather than harm it.

About the Authors: Steven P. Dinkin is president of the National Conflict Resolution Center. He is co-author with Barbara Filner and Lisa Maxwell (both also with the NCRC) of The Exchange: A Bold and Proven Approach to Resolving Workplace Conflict.

About the Book: The Exchange: A Bold and Proven Approach to Resolving Workplace Conflict (CRC Press, 2011, ISBN: 978-1-4398529-8-9 To learn more about the NCRC, visit www. ncrconline.com and to learn more about The Exchange, please go to www.exchangetraining.com

Appointment We would like to welcome Stephen (Steve) Dempsey in his new role as Publisher of Hardware Merchandising and Canadian Contractor magazines.

Steve brings almost 20 years of solid publication and event management experience to Hardware and Contractor, the leading trade publications in the Canadian home improvement marketplace. He is the former Publisher/ Editor and General Manager of Meetings & Incentive Travel magazine and the IncentiveWorks conference & trade show. He has also served as Associate Publisher of Onsite magazine and president of the Canadian Association of Exposition Management. Most recently, Steve was Managing Director at The Art of Productions Inc. Steve will be applying his extensive experience integrating print, online and business events to position Canadian Contractor and Hardware Merchandising for continued growth and success. When Steve is not walking his dog Arthur, you can find him walking the golf course from time to time.

October/November 2011 y Canadian Contractor

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Facts & Ideas

Site Notes their preference, and Canadian women to give current colours names that better appeal to their men.

If you want to enter your idea of a good paint name, just visit CIL’s Facebook page and follow the instructions.

Not shakin’ all over Rising up among its neighbours like a U2 stage-set, the latest green home project by The RGB Group is a home that will withstand a quake five times more powerful than the one that shook Ottawa and region last summer or the one that centered on Virginia this summer. The home is also being built to meet the stringent LEED Platinum green building standard. Rolf Baumann, founder and CEO of The RGB Group, says, “We always enjoy trying new construction methods and materials, and this home makes sense both from a business and environmental standpoint.” The RGB Group’s design architect for this project is Malcolm Wildeboer, Principal at Ottawa’s Vandenberg & Wildeboer Architects.

When completed this fall, the new building will match the quake ratings on commercial buildings and leads the way in

exceeding Ottawa’s recently bolstered seismic residential building standards. Due to its location on a known fault line, Ottawa is ranked third for earthquake risk among Canadian urban centres. Last summer’s quake was the

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Guest Column

Do Your Work, Have a Roadmap and Let it Go I’ve achieved what I set out to do over the last two years.

You can too. By Ian Szabo Like you, I’m a contractor, so I’m no goal-setting guru, but I do like to know where I’m going in business and in life. It seems like a lot of contractors think this business about goals and aspirations is a bit fluffy; and quite frankly, in a lot of cases I think they’re right. But there’s nothing wrong with having dreams and trying to make them happen. You’re no less of a contractor if you do. So you have two choices: stay on the same path forever, or get what you want. I know what I’ll be doing.

Do Your Work I didn’t spend much time thinking about my goals during the last two years. All I did was set out some targets that resonated in my heart and did my work. There was never a feeling of enormous pressure. If there’s one thing that seems to kill the whole experience of enjoying the journey it’s the pressure of having to get something done, or having to make it perfect, or just any pressure.

Just put in your work, do it the best you can, have fun, and at the end of the day forget about it and enjoy the rest of your life. You know those kids that look up at you every day when you come home?

You know that spouse who loves you but sometimes wonders where your mind is?

You know that person who stares back at you in the mirror and sometimes looks too tired? Do your work, and then give those people whatever they need from you.

Have a Roadmap Check your heart, check your gut, look in the mirror, and ask yourself what you want. I mean, what do you really want? If you really want nothing more than time and space and let’s say a little shack in the woods represents that for you, then don’t

October/November 2011 y Canadian Contractor

set your goal to have a mansion in the most prestigious neighbourhood in town.

You’re not fooling anyone with goals like that, so don’t try to fool yourself. You know what that kind of goal is? It’s something you think others would want of you. It’s not yours, so throw it away.

I can’t stress enough how important it is that your goal actually represents what you want at your core. There’s nothing wrong with you if your goal is simple. In fact, I’d venture to say if your goal is simple you’re probably a pretty solid person, the kind of person the world needs, and the kind of person I like to be around.

Once you’ve checked your heart, and once you’ve checked your gut, and once you’ve looked in the mirror and asked yourself what it is that you really want, then go ahead and set that goal for yourself.

Let it Go When your heart is into it, then you’ll truly be able to put your back into it. You’ll be able to do your work knowing that you’re going in the right direction. Go ahead, make that phone call that will put you closer. Read that book that might give you a bit of an edge. Take action every day.

Do your work, but don’t get all worked up if you feel like progress is too slow or even if you feel like you’re going backwards.

Getting all worked up and stressed out means you’re pressuring yourself again. This kills fun and happiness. If your goal is getting in the way of fun and happiness, then throw the damn goal away. No goal is worth going through a living hell day-in and day-out.

Do your work, have a roadmap, let it go, and watch it all come to you. It’s been working for me. It might work for you too.

You have nothing to lose by trying. CC www.canadiancontractor.ca

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Facts & Ideas

Site Notes strongest to hit the region in a century. Says Baumann: “Really, even with all the window glass, we’re building a secure, comfortable bunker.”

Cool Space Age heat Researchers based at The University of Nottingham Ningbo China (UNNC) believe their invention, which could be used in existing structures as well as new builds, could offer considerable energy savings.

The novel non-deformed energy storage phase change material (PCM) has the unique advantage of possessing a larger energy storage capacity with faster thermal response than existing materials and could be cheaply manufactured.

The heat-regulating material, devised by researchers at the University’s Centre for Sustainable Energy Technologies, could be applied anywhere, from walls and roofs to wallpaper, and it can be manufactured in a variety of shapes and sizes.

The building material was recently awarded a patent application approval in China and patent applications are in the pipeline in other countries.

Lead scientist Professior Jo Darkwa said, “The construction industry produces more carbon emissions than any other industry in the world — even more than aviation. In China, the building sector is one of the highest energy consuming sectors, accounting for about 30 per cent of total energy usage and also a significant proportion of pollutant emissions.

This material, if widely used, could make a major impact in the world’s efforts to reduce carbon emission.” CC

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Reader’s Letters High marks for Contractor U Hi Mike, First, I want to say thank you for your first two Contractor University articles. I currently run my own renovation business and fall under the “up to $300,000 in sales” category. I do as much of the work as I can and am the perfect example of the small contractor you talk about in your article. I really didn’t know how to grow to where I want to be ($1 million-plus category). I now have a better idea thanks to your article.

It’s funny, I decided to read the Aug/Sept article at the same time as I had a realization while I was installing wall tile around a tub. I thought, “Just because I own my own renovation company, it doesn’t mean that I have to do all of the work.” I get how it is impossible to grow the company if I am on the tools for 8-12 hours a day. I am looking forward to the webinar on Sept. 28 and the future articles in Canadian Contractor magazine.

You mention in the Aug/Sep article that we can email you for an example cash flow forecast sheet. I would be very thankful if you can send one my way.

Thanks again Mike!

Jason Heisler, Fresh Renos, Sylvan Lake, Alta.

Hello Mike, I was reading your article in the most recent edition of Canadian Contractor magazine and was shocked by the number of similarities between the situations you were describing and my own business experiences. I am currently a general contractor, custom builder, inspector and a sustainable developer. I am a certified Energy Star builder, a member of the Canadian Green Building Council and of my local construction association. I have plans and aspirations to build custom homes that are sustainable, healthy and innovative both as individual projects and on a community level.

I have been in business for close to eleven years. In that time I have only built four cus-

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tom homes and one spec house. Obviously, the majority of my business has not been custom building as I had hoped. I plug away at renovations, additions, decks, bathrooms, basements, etc. I enjoy the work but find the business operations on this level to be difficult.

I have had up to five employees and have done things on my own that one man should never tackle. I have great years or seasons where the work is flowing and exactly the opposite at other times. Last year, I had two great employees but when the work started to thin out they understandably had to find other work. For the last year I have been working on my own and I am finding that it is virtually impossible to grow my business in a proper way when I am the boss, salesman, bookkeeper, designer, estimator, site supervisor, carpenter, labourer and landscaper. I clearly need help. I see hope when I read your articles and others like it. I am confident that I will get there; I just hope it will happen before I loose my sanity or my house!

Andrew Zwicker, Zwicker Custom Homes Inc., Orillia, Ont. Hello Robert, I read the article, “Towards the Energy Efficient Home,” (Canadian Contractor, August/ September, 2011). I was a bit surprised that you did not reference our company, Braden Homes Ltd. (www.bradenhomes.ca), as we have been building passive solar, super-insulated, energy-efficient homes in the Guelph/ Hamilton area for over 25 years. Your article confirms opinions we have been expressing for years. A true commitment to building an energy-efficient home can only be achieved when the perception towards residential construction moves away from short-term financial gain and towards long-term value.

Congratulations for bringing this information to the forefront. Hopefully public awareness will follow.

Nicholas Dalton, Braden Homes Ltd., Rockwood, Ont. www.canadiancontractor.ca

11-10-04 2:19 PM

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11-10-04 2:19 PM

Cover Story

2011 Community Leader Award Ashton Services Group

G N I N N I W

Ser vice

Photos: Roger Mahler/Union Photographers

Ashton Service Group’s Brian Ashton wins Canadian Contractor’s first annual Community Leader Award

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CANADIAN CONTRACTOR â?™ October/November 2011

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Ashton Services Group

I

t seems like Brian Williams can’t say no – to customers, charities or to investment in his staff at Ashton Service Group of Richmond, B.C. His record on corporate responsibility would embarrass companies ten times Ashton’s size. The firm combines high levels of community service with an effective business strategy that has driven growth in tough economic times.

Williams’ parents arrived in Canada from England in 1957.

His father was a plumber and worked for most of his career in local shopping malls. Starting at the age of five, Williams helped his dad out whenever he could.

Money was tight when he was young, and by the age of ten, he had a paper route. By 11, he was selling ice cream from a cart. “I was always the top guy,” he says. “I would start as soon as they opened the shack and work until it was dark. I just kept riding around Richmond so I always made sure I sold the most!”

At 14, Williams was working as a busboy at the Richmond Inn, eventually working his way up into room service. That was where he met his wife-to-be, Julie, and decided to find something that left his evenings free.

He joined B.C. Plumbing Supplies and decided to pursue a pre-apprenticeship in plumbing at British Columbia Institute of Technology. After completing the course, he joined Pascoe Williams as an apprentice. He worked there for the next eight years.

Early days Eventually he found out that a maintenance contract for B.C. Housing was coming up. He bid on and got the job, which started the next Monday. “That’s when Ashton Mechanical Ltd. was born,” says Williams.

Going into business for himself was a gamble. Starting with $10,000 in the bank, he bought a van and put racks and bins in it. “I was in business that day... It just took off from there,” says Williams.

That was 26 years ago. “It has sort of grown by one truck a year and we are at 24 trucks now—just slow and steady growth, not getting too carried away,” he says. Recently, Ashton Mechanical Ltd. became Ashton Service Group, to reflect a broader array of services.

Some customers remember Williams from those early days.

“When I first met Brian, the dashboard of his van was his desk.

You could see him driving around with his dashboard covered with paperwork,” says Larry Sellers, building maintenance coordinator, for the City of Richmond.

“I started working with him 20 years ago. My original manager was having trouble with a specific facility. He opened up the phone book and looked under ‘A,’ and there was Brian’s ad. He called him up, Brian fixed the problem promptly, and my boss was duly impressed. When they went out to tender,

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The Canadian Contractor Community Leader Award What is it? Why have it? How can I enter next year? By Rob Koci When we first conceived of the Canadian Contractor Community Leader Award, we decided right away that we wanted an award that set the criteria beyond the business of building. It’s true, community leadership requires an excellent business track record, but it also requires willingness to give back, to take an active part in addressing the needs of the community outside of business hours. That can mean volunteering time and expertise to local projects, organizations, charities or initiatives working to provide solutions to community problems. It can also mean making any kind of contribution that improves the overall quality of life in the community being served.

This year’s winner Brian Williams certainly met that criteria and we are happy to have him as our first Community Leader Award winner.

There are plenty of awards contests for renovators to enter, but most are connected to an association awards program, so you can’t participate if you are not a member. As an independent publication that does not rely on an association mailing list for its circulation, Canadian Contractor is in the unique position of being able to invite any contractor in Canada—regardless of where he is or if he has any affiliation at all—to participate.

That’s what makes our award truly national.

Because our circulation is close to 30,000, we have lots of contractors to choose from. You know that when someone like Brian Williams steps up to tell his story and is ultimately chosen to receive this award, he is rising above a very large field and has proven himself an exceptional businessperson and human being.

Only one contractor could win this year, but there are years to come and we look forward to seeing your application for our Community Leader Award down the road.

All Canadian renovation, custom home, home repair or home improvement contractors and their subtrades that have operated under the current ownership for at least two years are eligible. There is no fee to enter. We will seek new entries for our 2012 winner starting in the spring of next year. If you want to enter then, email the editor for an application form and instructions. www.canadiancontractor.ca

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The 2011 Mercedes-Benz Sprinter. Starting from $42,900.* mercedes-benz.ca/sprintersaves ©2011 Mercedes-Benz Canada Inc. *Base national MSRP $42,900, all-in pricing up to $46,516.25 dependent on region. National MSRP pricing is shown for informational purposes only. Price does not include taxes, levies, fees and delivery charges. Price does not apply in provinces with total pricing requirements. Please contact your local dealership directly for total price applicable in those provinces.

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Cover Story |

Ashton Services Group

Brian won the tender, and he’s been our plumbing contractor ever since,” says Sellers.

Jim Allen, maintenance supervisor for Guildford Town Centre also remembers Williams from those times. “I was working for a shopping center in the Lower Mainland. I was looking for a plumber to do some work and Ashton was in one of the tenant spaces.” A casual request led to a problem being fixed quickly. “I’ve been using Ashton ever since.

Balancing act As the business has grown, Williams has been able to get away from daily operations and take more time to help others. “I have always had sort of a ‘give’ attitude. It’s probably in the last ten years that I have had a little bit more time and resources to be able to help out more,” he says.

Does his charitable activity win him any business?

Williams dismisses the question. “You can’t measure what you do (from a charitable point of view) in a monetary way,” he says. “People have noticed us helping out, but I’ve never looked for that or wanted that.”

More exciting for him is finding other businessmen willing to cooperate in community initiatives. “We’re finding a lot of people with common interests,” he says.

His charitable work probably accounts for about 20 per cent of his work week in terms of phone calls, organizing and setting things up. “Some weeks, I’ll take Friday off completely for that kind of stuff,” he says. “I have people in place, and I want to let them shine and get out of their way.

“I’m fortunate enough to be able to help. So if I can, I will. Some people go to the bar; some people help out.”

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“Brian is one of the guys who started from the tools and worked his way up. He talks the talk and he walks the walk…

When Brian’s team is in here, I’m not babysitting them. I know Brian, I know the work ethic, they know the place and they are a very good team,” says Allen. “When they’re on-site doing something for me, I know it’s being done, it’s being done right, and it’s being done safe.”

Giving to the community Williams’ sincere concern for people and their problems is shown in a range of community service awards.

Recent examples include: s 2010 Annual Cultural DIVERSEcity Award from the DIVERSEcity Community Resources Society, which honours diversity in the workforce. s 2009 International Humanitarian Award, Quality Service Contractors, which goes to a business that exhibits a high moral standard in giving back to the community. s 2008 Business of the Year (26-75 employees category) in the Richmond Chamber of Commerce Business Excellence Awards, recognizing outstanding business practices and community involvement. www.canadiancontractor.ca

11-10-04 2:21 PM

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Cover Story |

Ashton Services Group

s 2005 Community Achievement Award, Quality Service Contractors. s 2005 Community Achievement Award for the Semiahoo Minor Hockey Association, Surrey B.C. Williams’ support goes far beyond signing cheques and ac-

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cepting plaques—his involvement is always personal.

“The thing about him is that he’s always there,” says Craig Jones, executive director of the Richmond Chamber of Commerce. “Depending on the group, it could be at 3:00 in the morning—he’s out there.” He shows integrity and leadership, Jones says. “If he’s asking you to step up, he’ll be stepping up there with you.”

The homeless are a personal cause for Williams. “I try to go out six or eight times a year on the mobile mission after work, looking for homeless people around Vancouver,” he says. Getting one homeless person who has been living on the streets into a shelter and involved in a program is a great experience for him. “You’ve done that, and you’re driving home afterwards and the sun is coming up—I don’t even care about the money,” he says.

Williams’ list of accomplishments seems endless. Here are a few: He donated a van to the Union Gospel Mission in Vancouver—which he coincidentally dropped off about two hours after they had been praying for one! www.canadiancontractor.ca

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He assembled a group of people associated with the industry to provide a complete HVAC system to a homeless shelter in New Westminster.

He gave local firefighters a multi-gas detector after accidents that could have been prevented with the detector took two lives.

This year Williams participated in the Ride to Conquer Cancer, a pledge-based charity built around a bicycle ride. To enter the event, you needed $2,500. “He said, ‘I can do that, and I can do better than that,’ says Jones. “I believe that the final number was close to $15,000.”

Team spirit

Beating the odds in a down market The firm has grown considerably since it started out as Ashton Mechanical. They grew about 20 per cent a year from 2006 through 2008. Right now, the company’s doing about $6 million a year in business. Williams is shooting for $10 million by 2012.

He seems to be on track. “This year has been a tough year because new construction is dry. It’s very competitive and there is not a lot of it going on in Canada.” His most recent numbers, though, show he is up over the previous financial year by about a quarter of a million dollars. “In today’s times, I am okay with that.”

One strategy for growth is making sure that they are attentive to customer needs, especially informing existing clientele of what the firm has to offer.

A broad range of services is available, including commercial, industrial and residential work in plumbing and HVAC—hence the name change to Ashton Service Group. “Myself, I’m a very good plumber with hot water heating by trade,” says Williams, who also does gas fitting. In the past, he subbed out HVAC. Eventually, the HVAC work built up to a point where he decided to open his own department. “We’re doing a lot of the sheet metal ourselves, too,” he says. “We’ve got our own, in-house furnace department now, so we’re starting to sell furnaces,” he says.

The diversification helps keep the firm competitive.

“We can keep everybody working.”

Green building is another area Williams has pegged as a source for growth, and it figures prominently in the five-year plan. Ashton recently completed some work on a LEED Gold project for the City of Richmond.

It did the mechanical systems for the city’s new fire hall, which involved geothermal heating, rainwater tanks and low-flow urinals.

Williams keeps the company’s financial management close at hand. His wife Julie is the firm’s vice president and is in charge of its finances. www.canadiancontractormagazine.com

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Williams was an enthusiastic soccer player right through high school, following a family tradition. When he was young, “I could never afford to play hockey. Soccer was a stretch for us,” says Williams. “My wife and I were just fortunate that we had enough for our kids to be able to afford to play.”

Managing, coaching and supporting amateur sports have been a passion for him. He and some friends set up a weeklong hockey camp for the kids in the neighbourhood, held just before hockey season. Williams usually collected some token fees from the kids and took donations on the last day of the camp, around the barbecue. “We were collecting this money, and we did not know what the heck we were going to do with it,” he says.

One of the kids’ parents, Brian Whatley, had passed away, and the ensuing financial hardship meant that his daughter, Becky, couldn’t attend the camp. Williams and his partners decided to set up the Brian Whatley Trust Fund for kids in the neighborhood who couldn’t afford to play organized sports.

The kids apply with a letter. “Sometimes, rather than go through the trust fund, I just take them to the sports store and buy the gear,” says Williams.

Williams is known for acts of kindness. Sellers recalls the time Williams helped him when he took custody of his great niece and great nephew. “Brian used to be a Big Brother many years ago. At Christmas time, he always had something for

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Ashton Services Group

the two kids I was raising,” he says. “He always recognized my efforts with the kids. He was very supportive of what I was doing, in my little project. I found it beneficial to have somebody there—kind of giving me a pat on the back.”

Key assets Williams’ focus on human needs includes his staff. “He’s a very giving gentlemen and he works very hard. He understands that his biggest asset is his staff. He spends a lot of time making sure that they are one big family,” says Jones.

“The secret is to understand the needs and wants of your people and treat them the way you would like to be treated,” says Williams. He uses the model of a sports team: “If somebody is not playing right, somebody on the team will talk to them or the coach might have to talk to them—or sometimes you have to trade them, if they don’t suit the culture.”

What is that culture? “Ownership has a can-do attitude on everything. ‘No’ is not in our vocabulary,” says Williams.

Besides routine technical training for the trades, Williams organizes sales and customer service training for everyone in

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the company. Everyone in the organization is promoting Ashton Service Group.

The company has cast a wide net when recruiting, and has won a diversity award for its staff demographics. “We have a whole cross-section here,” says Williams. He posts jobs on Service Canada’s Job Bank. As well, he is often contacted by overseas employment agencies.

Williams is careful in his choices. “We usually have at least three telephone conversations with them—just to see if there’s a fit and get a feel for the type of work they have been doing and get a gut feeling about them.”

Employees see the company’s sense of community responsibility and buy into it. “It’s contagious; they want to be part of it. You’d be amazed at the staff who come up and offer us a cheque or ask to help.”

Peer review Williams is largely self-educated about business management.

“I have not been near a university in my life. I have Grade 12.

But I feel like I have an MBA through the training I got through my associations with my peers.”

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One such group is the Quality Service Contractors. He was blown away by the first meeting he went to, 12 years ago.

He walked away with pages of notes on simple things like handling phone calls, ensuring that workers park the service vehicles where people can see them and getting technicians to wear shoe protectors. “There was a whole list of things we weren’t doing,” he says.

Another association is The Alternative Board (TAB), a business group where “companies from different businesses sit around a room and share different questions each month,” says Williams.

“It’s a group of peers, small business owners,” explains Kevin Armstrong of the Vancouver-area TAB. “They can’t be from competing businesses.” Recently, TAB recognized Williams as Vancouver Board Member of the Year.

“What [Williams] does is bring a very high level of sophistication to all of his systems,” notes Armstrong. “For a guy in the plumbing business, he has developed a lot of systems—and he’s always looking for new ways to do things.”

Ashton is rigorous about phone calls. “Every telephone call is tracked and every piece of advertising has a different tracking

number on it,” says Williams. Every phone call from those lines is recorded and customer service levels are monitored. Every customer call is followed up.

The web is another opportunity. Williams recently attended a QSC event that made him question his web marketing. “I took a seminar on placement and search engine optimization and all that. I got an understanding of how it really works,” he says. Reviews, blogs, video testimonials, keywords and searchengine optimization have all gotten detailed attention. “I found a local guy here and we have been working on it.”

“Brian’s not the kind of guy to build up wealth and hoard it.

He seems to think that the more he gets, the more he needs to share it,” says Sellers.

Williams’ summary is concise. “Treat your staff like a team.

Have fun every day. If you’re not laughing and enjoying it, you really should think about doing something else. Most of us have to work, so you might as well have a chuckle, because we spend a lot of time together.” CC Jim Barnes is a Toronto-based writer with 30 years of experience in business journalism.

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Pickups innovate in safety Up-to-date safety technologies are significantly important for pickup trucks; manufacturers are delivering the best in their latest models.

Ford Harley Davidson F-150

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www.canadiancontractor.ca

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Truck Report

Photo courtesy of Ford Canada

2011

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Truck Report

2011

E

verybody knows that the best safety innovations first appear on high-end luxury cars. Eventually they begin to filter down to regular and entry-level models. And what typically comes last? Pickup trucks.

It probably didn’t seem that important in the past because the theory was that bigger is better; when it comes to a full-size pickup colliding with a smaller car, the truck wins. Yet because most pickups are less nimble than cars, it’s actually more important to have the latest safety technologies in work trucks too.

Pickup truck drivers must also contend with differing handling characteristics, depending on whether or not they are carrying a heavy load in the truck bed or cargo area.

Safety is much more than simply about the size and weight of a vehicle, and the race among the top manufacturers to be the best in the full-size light truck market has meant that many of the latest safety innovations can now be found in every manufacturer’s work truck line-up. This is an important market for all manufacturers, as light trucks remain the most popular vehicles in Canada, and pickup truck sales specifically were up 26.2 per cent last year.

Each manufacturer vies every year to achieve a Top Safety Pick rating from the Insurance Institute for Highway Safety (IIHS). To earn Top Safety Pick, a vehicle must have good ratings in all four of the institute’s tests of crashworthiness.

To determine crashworthiness—how well a vehicle protects its occupants in a crash—IIHS rates vehicles good, acceptable, marginal or poor based on performance in high-speed front and side crash tests, a rollover test, plus evaluations of seat/ head restraints for protection against neck injuries in rear impacts. In addition, the winning vehicles must offer Electronic Stability Control (ESC).

IIHS estimates that one-third of all fatal accidents could be prevented if ESC is used, so it’s a very important safety technology, especially in pickup trucks. In the U.S., ESC has been made mandatory starting with all 2012 model pickups.

ratio. This is a said to be a good assessment of vehicle structural protection in rollover crashes.

In the latest tests, the Tundra’s roof withstood a force of 4.5 times weight. The F-150’s roof withstood a force equal to 4.7 times the vehicle’s weight. Vehicles with a strength-to-weight ratio of 4.0 or higher earn a good rating. The good rating and Top Safety Pick designation for the F-150 apply to pickups manufactured after February 2011 because Ford made changes to the roof structure to better protect occupants in rollover crashes.

It’s a given that the latest pickup trucks will have all basic safety features—front air bags, head restraints, an anti-lock braking system (ABS) and such. (We hardly need to mention seatbelts, except that research shows pickup truck drivers are less likely to use them than drivers of cars, even though the chance of surviving a crash is 25 times higher if seatbelts are used.)

Most new pickups offer a range of the newest safety enhancements, such as Electronic Stability Control. You find it’s under various names from different manufacturers, such as General Motors’ StabiliTrak, Chrysler’s Electronic Stability Program (ESP), Ford’s AdvanceTrac, Nissan’s Vehicle Dynamic Control (VDC) and Toyota’s Vehicle Stability Control (VSC).

ESC in big trucks

How ESC works

In the Large Pickups category for 2011, two models are IIHS Top Safety Picks: The Ford F-150 crew cab models built after February 2011, and Toyota Tundra crew cab models.

IIHS also said the same vehicles are the only large pickups to earn the top rating of good in its new roof strength evaluation that measures occupant protection in rollover crashes. The Nissan Titan is rated acceptable for rollover protection. The Chevrolet Silverado and its twin GMC Sierra, and Dodge Ram are rated marginal. The ratings only apply to crew cab versions of these pickups.

To measure roof strength, a metal plate is pushed against one corner of a vehicle’s roof at a constant speed. The maximum force sustained by the roof before five inches of crush is compared to the vehicle’s weight to find the strength-to-weight

ESC technology varies slightly among the various manufacturers, but the result is the same. Sensors monitor the vehicle as it

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11-10-04 2:24 PM

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Truck Report

2011

moves, calculating direction, G-forces and especially any sudden changes. If you come into a corner too fast, for example, ESC can help you make the turn safely by throttling back on the engine power to slow you down, and also applying the brakes at just the right pressure to help you maintain—or regain—control. With ESC, once the vehicle has settled down— and you say “Wow, that was close,” the technology goes back to rest, waiting to react again, as needed.

Stability control sensors can include those for steering wheel angle, measuring the direction you intend to go; yaw rate, which measures how much the vehicle is actually turning compared to the steering wheel angle; lateral acceleration or sliding; wheel speed; longitudinal acceleration, which also can detect the road pitch; and roll rate.

systems have undergone major improvements. One of the best braking enhancements is Electronic Brakeforce Distribution (EBD), which also will have slightly different names with each manufacturer. This system works with the ABS system and can automatically vary the amount of brake force applied to each

Rollover protection The sensor is often a component of a rollover protection system, which encompasses the inclusion of side-curtain airbags. This is a critical truck technology, as the U.S. National Highway Traffic Safety Administration (NHTSA) reports that pickup truck occupants are three times more likely to be involved in rollover crashes than passengers in other types of vehicles.

To provide additional rollover protection, most pickups have reinforced cab structures that act like a roll-cage, providing protection to the driver and passengers during a crash or a rollover. Like cars, pickups also feature predetermined crush zones around the engine compartment that are designed to absorb crash energy, reducing the impact on passengers.

Another useful truck option is Trailer Sway Control. If you’re towing a trailer and it begins swaying from side to side, this will be sensed by the truck’s ESC system, which will help you control the vehicle until the trailer is stable again.

Good brakes Brakes, of course, are key to the ESC system. And braking

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of the truck’s wheels. EBD also properly balances the brake forces between the front and rear wheels so the rear brakes won’t lock up and cause loss of control.

Another feature, commonly known as Brake Assist, judges your speed and predicted stopping distance, determining how hard you’re pressing on the brake pedal. It will work no matter how hard or lightly you’re pressing. If you hit the brakes so hard that you are about to skid out of control, Brake Assist will ease off the pressure to maximize your vehicle’s stopping power while still maintaining control.

Other safety options, available on some higher-end trucks, include back-up cameras, which not only help prevent you from hitting anything behind your truck but aid in aligning a trailer hitch, and monitors that use sensors to detect when another vehicle is in your blind spot. Tire pressure monitoring systems are another useful safety feature.

Here is a look at some of the key safety features in today’s crop of pickup trucks:

Toyota The 2011 Toyota Tundra features a suite of active and passive safety systems. It includes standard Vehicle Stability Control (VSC) and traction control; anti-lock braking system, Brake Assist (BA); electronic brakeforce distribution (EBC) and Smart Stop Technology (SST). SST is designed to reduce engine power when the brake is firmly applied, helping to bring the vehicle to a stop even if the accelerator pedal is fully depressed. There are eight airbags, www.canadiancontractor.ca

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Photo courtesy of Toyota Canada

Truck Report

Photo courtesy of Nissan Canada

Toyota Tundra

side-impact and roof-mounted supplemental curtain air bags that help provide side-impact and rollover protection for outboard passengers; front seat belts with adjustable upper anchors, pretensioners and load limiters; front seat Active Head Restraints; and three-point rear passenger seat belts.

Vehicle-incorporated safety features include a Zone Body construction with front and rear structure crumple zones, an energy-absorbing steering column, hood-buckling creases with safety stops, knee bolsters, special side body reinforcements and a shift interlock system.

GM Nissan Titan

all-position vertically adjustable headrests and three-point lap and shoulder belts with front-belt-anchor height adjusters.

Nissan The 2011 Nissan Titan also includes a long list of safety equipment: standard Vehicle Dynamic Control (VDC); Nissan’s Advanced Air Bag System (AABS) with dual-stage front supplemental air bags with seat belt sensors and a front passenger occupant classification sensor; standard front-seat-mounted

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From General Motors, the 2011 Chevrolet Silverado and GMC Sierra full-size pickups include StabiliTrak electronic stability control with rollover mitigation technology; roof-mounted rollover-capable head curtain side air bags, which are integrated into strengthened chassis and body structures to provide improved passenger protection; and safety belt pretensioners that activate during a rear-end crash.

Additional safety features include an Autotrac active transfer case to help keep the vehicle sure-footed in slippery driving conditions, Ultrasonic Rear Parking Assist, a rearview camera system and a tire pressure monitoring system. All retail models www.canadiancontractor.ca

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Grow your business opportunities by registering as a participating heating and cooling contractor.

When you register as a participating contractor with the HEATING & COOLING INCENTIVE, your business will be added to our online listing, giving your company more visibility. Once you are registered you will be able to offer your customers incentives of up to $650* when they replace their old, inefficient central heating and cooling systems, and allow them to better manage their energy costs.

For complete details and to register as a participating contractor, visit saveonenergy.ca today.

It’s easy and it’s free.

Subject to additional terms and conditions found at saveonenergy.ca. *Incentives are available for installation of eligible equipment completed between Jan. 1, 2011 and Dec. 31, 2011, and must be submitted no later than Feb. 1, 2012. Equipment must be purchased from and installed by a participating contractor. Replacement furnaces must be high-efficiency models with an electronically commutated motor (ECM). Funded by the Ontario Power Authority and offered by your local electric utility.

A mark of the Province of Ontario protected under Canadian trade-mark law. Used under licence.

OM

Official Marks of the Ontario Power Authority.

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Photo courtesy of GM Canada

Truck Report

2011

crumple zones; electronic brake-force distribution; electronic stability program; energy-absorbing steering column; and an Enhanced Accident Response System (EARS). The EARS system makes it easier for emergency personnel to see and reach occupants in the event of an accident by turning on the interior lighting and unlocking doors after air bag deployment (it also shuts off the flow of fuel to the engine).

Also available are height-adjustable seat belts; Hill-start Assist (HSA); interior head-impact protection; knee bolsters; and GMC Sierra Heavy Duty Photo courtesy of Chrysler Canada

come standard with the OnStar 9.0 system, including a one-year subscription to the Safe and Sound plan. It includes Automatic Crash Response, Emergency Services, Crisis Assist and Stolen Vehicle Assistance featuring Stolen Vehicle Slowdown.

Chrysler Chrysler’s 2011 Ram 1500 and the new 2012 Ram 2500 and 3500 Heavy Duty have several safety features available, including an anti-lock brake system (ABS); advanced multi-stage air bags; BeltAlert; constant-force seat belt retractors (CFR);

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Chrysler Ram 3500 Heavy Duty

www.canadiancontractor.ca

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Photo courtesy of Ford Canada

Ford F-150

a low-risk deployment air bag—a front-passenger air bag that uses unique shape, venting, folding patterns, advanced inflators or a combination of these four technologies to position and inflate the restraint properly for a belted passenger, while also meeting safety requirements for out-of-position, small occupants and rear-facing infant seats. Also available are the Parksense rear park assist system; power-adjustable pedals; seat belt pretensioners; three-point seat belts; Tire Pressure Monitoring (TPM); and Trailer-sway Control (TSC).

Ford The 2011 Ford F-150 also features a large number of standard safety and stability systems, including Safety Canopy side curtain airbags, AdvanceTrac with RSC (Roll Stability Control), SOS Post Crash Alert System, trailer sway control, and an advanced safety structure using high-strength steel.

New safety features from Ford for 2011 include a seat-integrated shoulder belt for the front middle seat and a head restraint for the second-row middle seat. Other standard Ford F-150 safety features include dual-stage airbags for the driver and front passenger, front seat-mounted side airbags and fourwheel ABS brakes.

According to Ford customer research, 83 per cent of F-150 buyers consider safety a leading purchase reason. That’s a significant trend, as safety should be the foremost consideration in the selection of any pickup truck. CC Bill Roebuck is a veteran member of the Automobile Journalists Association of Canada. www.canadiancontractor.ca

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The Man WiTh The Tan. Our tan is legendary. It’s the color of the most secure jobsite storage solutions around. Not red. Not green. So, if you’re looking for features like the patented WATCHMAN® 5 – a weather and tamper-resistant recessed lock that virtually prevents drill-outs – you’ll never get burned with a KNAACK® tan.

For more information, visit www.knaack.ca or call 1.888.562.2251 © 2011 Knaack, LLC. All rights reserved. U.S. and other countries registered trademarks of Emerson Electric were used in this Ad.

Canadian Contractor y October/November 2011

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Contractor University In the last issue of Canadian Contractor Magazine we took a look at how important cash flow is for a $300,000 business growing to $1 million. The following is the third in a four-part series that will take you on the road to a $3-million business.

The 3 million

dollar road

By Mike Draper

N

ow that you have reached $1millon in annual sales, it’s time to set your sights on higher revenue and higher profits. Reaching for $2 Million in annual revenue is the next big step. It is an exciting step and one that has you stepping away from the day-to-day, on-site renovation work.

In order to have reached the $1,000,000 level you probably had to hire a site supervisor or lead carpenters to manage the on-site activities. The timing of the hiring is a function of job size. If your average job is under $25,000, you probably had to take this step around $600,000 in revenue. If your average job

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Part 3: Beyond your first million

is over $150,000, you could probably hold off until you reach $1 million or so.

But who is tracking job costs, selecting and hiring the trades, ordering material and taking full responsibility for a job?

Typically it is you, the business owner. This is the natural place for the responsibility and there is usually not enough profit at $1,000,000 to hire a dedicated project manager. To reach $2 million though, you will have to hire a project manager. With a lower job average, you will likely need to hire a project manager before you reach $1 million in sales and certainly by $1.5 million regardless of job average. www.canadiancontractor.ca

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S:7”

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THE YEAR®

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Contractor University

The Project Manager

Be free to market and sell

Hiring a project manager is a big step and a big commitment.

Paying someone a project manager’s salary, which is now overhead, can be a daunting undertaking. In the early stages, while you are moving through the $1million level, the project manager’s salary would be eating up all of the profit. This is where most contractors who remain at $1 million fail to make the leap and end up stagnating. They fail to make the commitment to hiring a project manager due to the expense.

However, without making the commitment to a project manager, there is simply not enough time in the week to deliver $1 million worth of renovations, do the marketing, meet with new prospective homeowners, write up quotations, and manage your existing projects. If you are already working 10 or more hours a day, how do you think you can bring even more business in? It is impossible. Your model needs to change in order to grow. That change is to hire a project manager. It is really the only way to reach $2 million in sales.

The other critical reason for the project manager is to free up your time for the marketing and sales work that is needed to support a $2 million business. Sales and estimating is almost a full-time job now. If your average renovation project is $50,000, then you will need 40 projects a year. If your close rate is 20 per cent (one in five), then you would need to quote 200 jobs per year. See the last issue of Canadian Contractor’s Contractor University article for a review of the average dollar sale, conversion rate and related topics.

How your automated CRM system wins clients An automated Customer Relationship Management system (CRM) is critical to keeping track of your leads. Here is how they work: You meet with a homeowner in September, expecting that they will want to do the kitchen renovation in the fall so that it is ready for Christmas. However, they tell you that they won’t have the money saved up until the spring. They are very serious about starting the project in April, but that is seven months away. They suggest you follow up with them in March so that they can finalize the scope of work and firm up the finishes.

Here’s a typical scenario. You leave the meeting making a note in your book to follow-up in March and put it out of your mind. April or May rolls around next year and you realize that you forgot to follow-up in March. You call the client and they inform you that they have selected another contractor because they never heard back from you. They thought you weren’t interested.

With the automated system, you would have entered their contact information, including email address, and notes into the system. You would have entered a reminder task for you to follow-up early

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The math on sales At 200 quotes per year you need to be doing approximately four quotes per week, every week of the year. Most contractors find that they need to visit a prospect’s home at least three times before a homeowner will award them a $50,000-plus project.

Often even more visits are required. Let’s use the three visits as the example. At four quotes a week and minimum three visits

March. In the meantime, you have the system send them some relevant email content such as How to Choose a Contractor or Pre-Planning Checklist. Send them content which is designed to educate the homeowner on the attributes of what your company offers. You will also stay top-of-mind with the homeowner.

The reminder task pops up in March and you make the call to the prospect. They will be thankful for the relevant information you have sent them over the last six months. It is almost like no time had passed and you now have not only a motivated, happy client, but an educated one.

Next, you sign a contract and you do the renovation. Along the way they tell you that two years from now they want to finish the basement. Since you did such great work in the kitchen, the basement is yours to lose.

You make some notes in your CRM system, start another automated follow-up sequence to stay in contact every three months, and set a reminder task to call them two years from now.

That is the power of the automated CRM follow-up sales system. Most successful contractors we work with get 50 per cent or more of their work from previous clients and referrals. An automated system for regular communications and timely follow-up is essential. —MD www.canadiancontractor.ca

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per quote, you are looking at 12 propspect visits per week.

Can you make three sales calls per day and write up a quotation a day while you are still managing projects? Absolutely not.

Now that you agree that you have to make the commitment to hire a project manager, how do you cover the cost of one when you are still at $1 million in sales? Cash flow becomes the key issue. As we mentioned in Part 2 of this series, you have to plan your cash flow needs and how much, if any, you need to borrow in the short term to cover the cost of the project manager.

Hire from within The best approach is to hire and promote from within. You can transition personnel to positions of increased responsibility as revenue increases.

Now that the project manager is on board and is looking after your jobs, managing your trades and sub-trades, tracking your job costs, etc. you can focus on driving more sales into your company. As mentioned at the beginning of this article, this is a very exciting time. Your business starts to run almost on autopilot and you are freed from the day-to-day grind that comes from the job sites. You get to focus on growing your business instead of doing the work. You get to go out and meet homeowners to describe how your renovation system will deliver their renovation dream. You have time to focus on the strategic things that your business needs to continue to grow.

Being a business owner At this point you are no longer a renovator. You are a business owner, free of the day-to-day, hands-on work. Since your company is now operating with a more systemized process, you are able to take some time off and feel comfortable that your projects are still moving along as planned. The project manager now has your projects under control.

Automating your sales All may sound rosy, but there are still some other critical pieces that your business needs to make sure that you can support $2 million in sales. In order to keep track of all of your prospects, stage of proposals and when to follow up with homeowners, you need to have an automated marketing/ CRM (Customer Relationship Management) system. Proper use of an automated system will enable you to track where you are in your sales cycle with a homeowner, when to followup and when you were in last contact with a homeowner. It does take some time and effort to set the system up and keep it up-to-date, but the benefits in increased conversion rates will greatly offset the effort.

Most contractors I know use a book and try to keep track of all prospects, quotes and follow-up activities manually. But www.canadiancontractor.ca

ConU.indd 39

I’ve seen too many times where follow-up falls through the cracks and doesn’t happen. That is a waste of your marketing dollars and the time you spent visiting a homeowner, measuring up the renovation and understanding the client’s needs. If you fail to submit a quotation in a timely manner you will be communicating to the prospect that you are either too busy to service them or you are too disorganized to do a good job. A week or two goes by and you beat yourself up for not having delivered a quote. Sometimes you are too embarrassed, so you drop the prospect. Those visits you made are now wasted and your reputation has been tarnished. Remember, the least expensive way to grow your business is to improve your conversion rate so that you make more sales from the leads that you already have.

(If you would like to find out more about the automated marketing system we use, email me at mike.draper@renovantage.com.)

Not all homeowners are ready to renovate when you first talk to them. They might be getting some idea of costs so that they can save or go to the bank to get a loan. The beauty of the automated system is that you can have the system stay in contact with them via email over a long period of time and then remind you when it is time to make contact with the homeowner. (see sidebar for an example of how the automated system works.)

Get admin help Finally, if you haven’t already, you will need to hire at least one full-time equivalent for administration and bookkeeping. This is a lot of administrative work that has to be down at this level, and it is virtually impossible for the contractor to do it all themselves and still focus on the rest of the business. With data entry for new sales leads, typing up quotes, scope of work writing, and letters that need to be written, you will have no problem filling the schedule of a full-time administrative person.

When you combine the efficiency of hiring a project manager and the power of an automated sales follow-up system, your business will continue to grow up to $2 million and will be on its way to $3 million and beyond. In the next issue we will discuss how to continue to scale your business to give you the life that you had dreamed about when you started your business. To choose to work or not to work whenever you want—that is the sign of a successful business owner. CC Renovantage Inc. is a first-of-its-kind home renovation group of contractors specializing in everything from room renovations to complete additions. Renovantage takes the risk and worry out of home improvement by giving contractors the business tools, systems and services they need to operate efficiently and reach the next level of growth.

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Stuff We Like

CONSTRUCT CANADA 2011 CONSTRUCT CANADA IS THE BIGGEST ONE-STOP EVENT IN THE COUNTRY FOR LEARNING ABOUT INNOVATIONS THAT CAN MAKE YOU A BETTER CONTRACTOR

By Steve Maxwell

With more than 1,000 exhibitors at the Construct Canada show, it’s easy to miss important stuff. The 15 exhibitors featured here offer innovative, profit-boosting products that I’ve used personally and like.

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www.canadiancontractor.ca

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Cosella-Dorken Booth #1032

Roxul Booth #447

Longer building life and better moisture control are the main claims to fame from these guys. I’ve used their breathable roof underlay and building wrap and their DELTA-DRY rainscreen for back-of-siding drainage. I like them all. The underlay is tougher than the usual stuff, and designed to let moisture dry through the membrane while keeping liquid water out. I’ve also used the DELTA-DRY product, most recently under cedar shingle siding, and it’s easy to cut accurately and install.

Shingles get plenty of support when they’re nailed home on this stuff.

I know from installations that Roxul mineral wool batt insulation is firm enough to cut accurately (a serrated bread knife works great), rigid enough to avoid sagging, and water resistant enough to stand up to leaks that would saturate other kinds of batt insulation to the point of uselessness. It’s also virtually itchfree to install and puts very little dust in the air. You can also buy it everywhere. What more could you want in a batt insulation? Roxul also has a new product that’s big at this show: It’s called ComfortBatt, and is made especially for use in steel stud buildings. If you do commercial work, you might also want to check out Roxul’s BEDR system. I haven’t tried this yet, but it’s a rainscreen and insulation system that meets ASHRAE and IECC standards.

Trim Tex Booth #402

Benjamin Obdyke Booth #246 This is another company that specializes in ventilation and moisture control, an issue that’s becoming more and more of a concern as consumers react to concerns about mold. Benjamin Obdyke’s Cedar Breather and Home Slicker products are semi-rigid, non-woven sheets of mesh that hold wood siding and shingles away from wall surfaces, allowing ventilation and liquid water drainage. Tack them down, then install over top. www.canadiancontractor.ca

Stuff We Like.indd 41

These are the guys you need to see if you want to raise your drywalling to a higher aesthetic standard. I’ve seen and used their plastic trim products and they make all kinds of creative options possible. Even their corner beads are cool. The nicest in my book are rounded and fasten to drywall with spray-on adhesive instead of nails. Accessory square corner extensions fit where corners meet walls and ceilings, so you can run trim there. Rounded corners are tougher than square ones, and the plastic holds onto paint better than metal.

Honda Booth #140 There’s no end of generators on the market, and most are loud, inefficient and generate electricity that can fry sensitive electronics. Honda’s inverter line is different. I have yet to see Canadian Contractor y October/November 2011

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Stuff We Like

Product File

Reel cool Who doesn’t hate opening their toolbox to find chalk dust all over the place. Well Delta, B.C.based TASK tools believes it has solved the No.1 problem with chalk reels. The capless refill port featured on three new TASK models is designed to allow for quick, no-spill refills. And since there is no door or cap to accidentally slide open, these reels will never spill chalk in your toolbox. The patented string-locking switch allows the reel to be used as a plumb bob and makes snapping a chalk line over long distances much easier. These units also feature an integrated line level and end hooks that hold nails, ledges, and will tack into drywall. Visit www.tasktools.com.

Cut the cord Makita has introduced the 18V LXT Lithium-ion Cordless ½-inch Driver-Drill (model LXFD01). This tool is powered by a four-pole motor that delivers 480 in.lbs. of max torque and 290 in.lbs. of PTI torque. Designed to be both durable and compact, the model LXFD01 drill/driver is 7-9/16-inches long and weighs only 3.8 lbs. Its 16 clutch settings and two-speed all-metal trans-

any other generators more wellmannered than Honda. Super quiet operation is a plus, but so is fuel economy. Instead of running full blast no matter how much or how little electricity is being demanded, the inverter series automatically throttles engine speed up or down as required to make the necessary juice. Run a sander and the inverter operates at an idle. Fire up a tablesaw and control circuitry steps on the gas only as much as necessary to supply the required amps. And unlike most generators that put out damaging, spiky voltage wave patterns, power from the inverter series is at least as pure as what comes out of a wall socket.

Schluter Booth #1338 The tile installation innovations that these guys invented are fast becoming mainstream, but you probably haven’t had a chance to check out Schluter’s KERDIBOARD yet. It’s a rigid structural sheet foam product that’s made to support tiles directly with thinset mortar. This same mortar is also the stuff that holds pieces of KERDI-BOARD together while building with it.

Used to make countertops, vanities, shower stalls and tiling substrate for interior walls, this stuff cuts like drywall, is light weight and includes a printed grid pattern to aid in accurate tile placement.

Thermapan Booth #921 These are the guys who introduced me to structural insulated panels (SIPs) 10 years ago. I’ve since come to like SIP construction a lot because it creates strong, energy-efficient structures that go up quickly. SIPs are also an excellent way to meet the E80 code standards sweeping across Canada. The biggest part of these changes address energy efficiency, and Thermapan has put together SIP construction packages that yield buildings that surpass code minimums with E81, E83 and E84 ratings.

Uponor Booth #413

mission allow for a wide range of applications while a new rubberized grip delivers increased comfort on the job. Visit www. makitatools.com.

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There’s nothing new about radiant infloor heating, but there are innovations for speeding installation times while making pipe connections more reliable and jobs more profitable. Uponor’s PEXa pipe is a case in point. It’s got physical qualities that work hand-in-hand with a new cordless tool by Milwaukee.

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www.canadiancontractor.ca

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Dubbed the ProPex expander, this tool temporarily swells the end of PEXa pipe so barbed plastic connection fittings slide right in. About 10 seconds later, the pipe has contracted sufficiently to seal around the fitting, once and for all. No rings, no crimping.

It’s lightning-fast.

TOTO Booth #2035 Little things make a big difference to your clients, and a weak, unreliable toilet in your renovations or new builds directs constant negative reinforcement your way. Independent lab testing by Canada’s Veritec Consulting has consistently shown TOTO toilets to flush reliably, while other manufacturers have scrambled to play catch-up with TOTO’s performance, I’ve had two TOTOs at my house for almost 10 years and even with five kids in the place, I never have to reach for the plunger.

Deck Masters Booth #114 These guys tracked me down at a trade show back in 2010 hoping I’d take a look at their stuff. I’m glad I did. I don’t know of any other deck material and tool supplier that has an innovative line of products like these. Their HID-Fast deck nailer is probably the most impressive. It’s like a pneumatic hardwood flooring nailer, except designed for deck boards. Both wood and composite decking is fastened with proprietary stainless steel fasteners that extend through the sides of each board, locking the lumber down without any visible fasteners. While you’re at it, take a look at Deck Masters tools for wrestling wonky deck boards into submission during installation.

Bostitch Booth #500 If you’re looking for a 15-gauge nailer, check out the N62FNK-2.

At just over 4 lbs., it’s extremely light and has other unique features that make a difference; an on-board LED light, a button-activated blower and interchangeable nailing tips for different shapes of trim that aren’t found on any other finishing nailer I’ve seen. I haven’t put enough mileage on mine to comment on reliability, but this model is certainly a pleasure to hold and use. www.canadiancontractor.ca

Stuff We Like.indd 43

Product File

Convenient cutting If your work involves cutting overhead or hard-to-reach pipes with a hacksaw blade you will likely appreciate this advancement in tool technology. BOSCH recently introduced the model BSH180 Band Saw, which is designed to replace traditional hacksaws and awkward reciprocating saws commonly used by plumbers and electricians. The

cordless BSH180 can execute precise cuts to a variety of materials, including metal, copper pipe and electrical cables and is small and light enough (7.7 lbs.) for use in tight spaces. The tool is powered by an 18-volt fat or slim battery pack that allows for more than 150 cuts per charge. Visit www. boschtools.com.

Hammer time Milwaukee Electric Tool Corporation has introduced the new 5/8” SDS Plus Rotary Hammer (model 5263-21). At 10.9” long and weighing 4.6 lbs., Milwaukee is marketing this product as the lightest and most compact tool in its class, ideal for drilling overhead and in tight spaces, yet powerful enough to drill the majority of holes commonly drilled by the professional trades.

According to the company, the model 5263-21 rotary hammer provides up to 65 per cent faster drilling with 1.5 ft.lbs. of impact energy and 0-3,700 rpm. Visit www.milwaukeetool.com.

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Stuff We Like

Stanley Booth #500 These guys are pumping out the innovations in a big way, especially in the small tool department. FatMax tape measures have been leading edge for a while, but check out their new line of Sweetheart chisels. They come in a leather tool roll that’s perfect for keeping the entire eight-chisel set in order. Stanley’s new lightweight MIG15 hammer has the same name as the famous Russian fighter jet, and though it doesn’t hit as hard as heftier framers, it’s a great jobsite hammer that’s easy to carry on your belt.

DeWALT Booth #500 Check out the new line of 20V MAX cordless tools from the yellow guys. I’ve been using them since the summer, and they just hit the streets for sale this past October. 20V MAX is neckand-neck in performance with the best leading edge cordless, but with several unique features. The charger handles both 12V and 20V batteries, and plans to launch a new 4.1 amp-hour 20V MAX battery in April 2012 will be a big advance. This is more than 30% larger than the largest current cordless batteries, and promises to redefine what long run time is all about.

Six amazing models.

One trusted name.

Bosch Booth #202 The first thing you should look at here is the GCM12SD Glide Miter Saw. I’ve been using one for a year, and of all the chopsaws I’ve cut with over the last 20 years, this is my favourite.

Freedom from sliding rails is the reason why. Instead of rolling on big silver pipes, the GCM12SD hinges on articulated arms, making for a much shorter and easier-to-lug saw.

The Fluke P3 Series

P

3

Proven Practical Performance

The only thing that precedes Fluke’s highest standards of quality is our reputation for making the finest measurement tools in the world. Fluke thermal imagers are no exception. And, the P3 series handily delivers on the promise to offer the most tool for the money.

• Superior image quality • One-handed, easy-to-use interface • Torture tested™ Find out more about these new products from Fluke at www.flukecanada.ca/P3series

Ti27 TiR27

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Ti29 TiR29

Ti32 TiR32

Thermal Imagers

Marvin Windows and Doors Booth #532 In 1989 I bought a house-worth of wooden, double-hung windows from Marvin, and this past spring I was still able to buy replacement hardware and weatherstripping made especially to fit these units. That’s pretty good back-office service, and it’s something that can make you look like a hero with clients.

Another thing I like about Marvin is their SillGuard product. It’s a plastic drainage shield that acts as plan B in the event water leaks in and around the window or siding. A small and inexpensive thing, but one that makes you look good with qualityminded clients. CC www.canadiancontractor.ca

October/November 2011 ❙ CANADIAN CONTRACTOR

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The Holdback

How to stab a renovator in the heart The following is a letter received from Toronto renovator Richard Stark, owner of Collaborative Ventures Inc. By Richard Stark

I

fought the WSIB for a few years on a $34,000 assessment from an audit done in 2006. The appeal was finally resolved in 2009 when I agreed to pay a token amount (less than 20 per cent of the original assessment). I probably shouldn’t have, but did so to put an end to the stupidity.

Then it took until late last year to get WSIB to properly reflect the settlement in their accounting, which is a story of incompetence all its own.

I thought that might end my WSIB woes for a while, but a week ago I received notice that I was about to be audited all over again! Apparently their mandate is to audit every five years. Perhaps they might think about timing audits from the resolution of the last audit to space them out a bit. In any event, I asked the auditor to review the history of the file and bring it on.

But there is more. We had one accident claim last year. It was a relatively minor event; one of my employees broke a bone in his hand when he was drilling through masonry with a hammer drill. The bit jammed and his hand slammed against the wall. The accident was not out of the ordinary, and to suggest that this had anything to do with a lack of observance of safety protocols would be ridiculous.

He was off for a couple of weeks until he was able to resume light duties, coming in part-time and working as much as he could. I paid him throughout and WSIB reimbursed us for the time he couldn’t work.

I expected that was the end of it, until I received my CAD-7 Assessment for the year, which included a surcharge of $5,957.13. This corresponds to the amount—to the penny—paid by WSIB for my worker’s injury. Now, I want to put this in perspective: During 2009 and 2010, I had a total insurable earnings amount for workers of $1,310,457 and paid a total of $114,140 in WSIB premiums. In spite of this, they are charging me the total amount paid out by them for the injury.

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I have already had some correspondence with the CFO on the methodology for the calculation of these surcharges during my last appeal and asked how it was possible that they could assess a penalty amounting to their costs when I paid so much in premiums and was in good standing with them. The response that I received was nonsensical and useless; basically telling me that I should instead be focused on the CAD-7 rebates I had received over the years. I didn’t have the energy to pursue it further.

Not only do I have to reimburse them for 100 per cent of their costs in 2010, after remitting over $100,000 in premiums for two years, I also lose the CAD-7 rebate for 2010, which based on what I received in 2009, would have been around $12,000. That relatively minor and unavoidable injury just cost me $17,000 in addition to the $114,000 in premiums I paid!

I’m not an actuary, but when I look at the way the claims are calculated, it seems to me that unless you have an insurable payroll exceeding $5,518,420 you will pay 100 per cent of any payout WSIB makes. In my industry sector (home building) this is the insurable portion of workers’ payroll that would be required in order for the expected injury frequency in one year to equal one!

So really, the question becomes, why is WSIB called insurance when it is really just a business tax? I certainly don’t feel “insured” when I have to pay for all of the losses incurred as a result of even the smallest accident. And where is the fairness in a system with such a ridiculously unfair calculation? On average, I pay $60,000 a year in workers’ insurance premiums without a shred of benefit.

The message this sends is that small company workers should not report injuries on the job so that their small business employers can directly pay the costs of the injury and still collect the CAD-7 rebate. And that is disastrous for honest business owners who want to do the right thing.

What a mess. CC www.canadiancontractor.ca

11-10-04 2:37 PM

12:01 PM HEADQUARTERS 11:38 AM POWER PLANT

high roof available with 6'3" headroom

2:45 PM CORNER OFFICE optional locking centre console with file cabinet and laptop storage with 120v power

powerful and efficient 5.6L V8 and 4.0L V6 engine options

9:02 AM WORKSHOP

3:10 PM BILLBOARD

custom upfits for all your tools

ample space for advertising

7:15 AM WAREHOUSE

4:45 PM STORAGE FACILITY

up to 320+ cubic ft of cargo space

243- degree wide opening doors

The All-New 2012 NV Lineup INNOVATION THAT WORKS

Your business card may say contractor, plumber, landscaper or electrician, but we know that’s only half of the story. You’re also the accountant, customer service department and CEO. And that’s why the Nissan NV is so much more than a van.

With a built-in filing cabinet,* and expanded desktop surface,* it’s your entire office on wheels – perfect for all your jobs.

You’ll have a hard time finding any other van than can do the same.

Starting from $30,998 For more information, visit ncv.nissan.ca *Available features. MSRP for 2012 NV 1500 (X41A72 AA00) is $30,998. Freight and PDE charges ($1,630), license, registration, insurance, duties and applicable taxes (including excise tax, fuel conservation tax, tire recycling tax and duties on new tires, where applicable) are extra. All prices are subject to change without notice. TMThe Nissan Commercial Vehicles names, logos, product names, feature names, and slogans are trademark owned by or licensed to Nissan Motor Co. Ltd., and/or its North American subsidiaries.

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DEWALT_20VMAX_FllPgAdCC.pdf

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MAXIMIZED POWER. up to 57% faster**

MAXIMIZED RUN-TIMES. up to 35% more runtime**

MAXIMIZED DEWALT. JOBSITES TODAY DEMAND TOUGH, RUGGED, RELIABLE TOOLS. INTRODUCING A LITHIUM ION SYSTEM OF HIGH PERFORMANCE CORDLESS TOOLS DESIGNED TO DOMINATE TODAY’S JOBSITES. STEP UP TO THE NEXT LEVEL and

TOUGHEN UP TO THE MAX.

PA RT O F T H E * Maximum initial battery voltage (measured without a workload) is 20 volts. Nominal voltage is 18. ** vs. leading 18 Volt lithium ion tools.

Copyright ©2011 DEWALT. The following are examples of trademarks for one or more DEWALT power tools and accessories: The yellow and black color scheme; the “D”-shaped air intake grill; the array of pyramids on the handgrip; the kit box configuration; and the array of lozenge-shaped humps on the surface of the tool.

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