NKB May 2018 issuu

The Official Publication of the Building Industry Association of Northern Kentucky

TEE OFF

WITH THE BIA Have you registered for the 55th Annual BIA Golf Outing yet? This one fills up quick folks!

Take a look at page 22 for more information

www.BuildersNKY.com

www.facebook.com/BuildersKY

May 2018

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New and Replacement Jobs by 2024 Modern life would not be possible without electricians. If you like to know how electric currents make things work, then this is the trade for you.

Qualified electricians are always in demand. With your tools and knowledge, you can go practically anywhere in the country.

Find your home with a career in the home building industry and help others achieve the dream of owning a home.

Learn more at hbanky.com/trades-training-and-jobs Follow us at facebook.com/Apprenticetraining source: 2014-2024 U.S. Bureau of Labor Statistics workforce outlook survey

Northern Kentucky Builder™ is an official publication of the Building Industry Association of Northern Kentucky, 2751 Circleport Drive, Erlanger, Kentucky 41018. It is published in the interest of the Northern Kentucky building industry and read by home builders, remodelers, general contractors, developers, engineers, bankers, Realtors,® architects, material dealers, subcontractors and manufacturers. All rights reserved. Copying or reproduction without the expressed permission of the Building Industry Association of Northern Kentucky is strictly prohibited. phone 859.331.9500 or fax 859.578.3393 email homebuilders@buildersnky.com 2018 Board of Directors John Curtin/Paul Hemmer Company, President Bill Cullen/Cullen Brothers, Immediate Past Pres.

Tom Withorn/Craftsmen by Design, Vice President Ross Kreutzjans/Legacy Management, Secretary/Treasurer Watson Jones/C.K. Ash Insurance, Associate President John Cain/Wiseway Supply. Associate Vice President Mike Willenbrink/Bayer Becker, LDC President Michelle Caldwell/Huntington Bank, SMC President Shad Sletto/EGC Construction, Builder Director Ben Taylor/Drees, Builder Director Brandy Roberts/Florida Tile, Associate Director Fred Cernetisch/Pella, Associate Director Nick Smith/Keller Williams, Associate Director Mike Riegler/Riegler Blacktop, Inc., Associate Director BIA Staff Brian A. Miller, Executive Vice President Jessica Rose, Director of Shows & Events Charley Wayman, Director of Sales & Marketing Shawn Cox, Director of Professional Development Dan Smith, Director of Finance Tammy Arvin, Director of Membership Mandy Trenkamp, Administrative Coordinator Editors Charley Wayman

Northern Kentucky Builder

MAY 2018 FROM THE EXECUTIVE VICE PRESIDENT

MEMBERSHIP AND COMMUNITY DEPARTMENTS

The mission of the Building Industry Association of Northern Kentucky is to promote and enhance the integrity and visibility of the construction industry and the members of the organization through advocacy, communication, education and political action.

BUSINESS CALENDAR AND EVENTS

NEWSROOM

EDUCATION

NKY BUILDER PERMITS

FEATURES

Well-Managed Project Can Go a Long Way to Build Your Company’s Success

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14 TTN 2018

Writing Vicki Prichard Staff The Building Industry Association of Northern Kentucky is open to the world, visit our web site for up-to-date information on BIA services and programs, including extensive public referral directory to Registered Builders, Registered Remodelers and Associate Members.

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2018 Kentucky General Assembly

Builder/Realtor (Cinco de Mayo) Bash

www.BuildersNKY.com

BIA Signature Event Family Barbeque Northern Kentucky BUILDER

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FROM THE EXECUTIVE VICE PRESIDENT On a county by county basis Boone County continues to be the highest volume of permitted remodeling projects. Most notably Campbell County has now caught up with Kenton in total number of permitted projects annually; a phenomenon achieved since 2016.

Volume by County 1400 1200

Volume by County

Axis Title

Brian Miller Executive Vice Presifdent bmiller@buildersnky.com

800 1200

Axis Title

1000 1400

400 800

600 1000

200 600 0 400

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

200

M

ay is National Remodeling month. Since the great recession our remodeling market has been on a wild ride. In 2015 and 2016 we saw massive increases in the volume of remodeling permits. We understand that we are only capturing but a segment of the market as many remodeling projects do not require permits. That means we are capturing the segment of the market that include significant remodeling work where permits are required. The remodeling market recovered ahead of the new residential singlefamily market by two years; remodeling regaining its footing in 2011.

0

Boone

Boone Kenton Values of permitted remodeling projectsCampbell in all three counties increased; showing a AVG Value by County consistent trend.

80,000.00

Axis Title

Axis Title

70,000.00

Volume

60,000.00 80,000.00 50,000.00 70,000.00 40,000.00 60,000.00 30,000.00 50,000.00 20,000.00 40,000.00 10,000.00 30,000.00 - 20,000.00 10,000.00 -

2000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Boone

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Axis Title

Volume

What2500 is more impressive, in 2017 theAVG Value average value of permitted remodeling 70,000 projects jumped dramatically. Speculation as to why the increase happened is left 2000 up to60,000 the reader but welcomed news that it happened is cause for celebration. At 1500 the same 50,000 time the volume of permitted projects took a cooling off break. We believe that this is good for the market as Registered Remodelers had once been 40,000 1000 forced to rely on smaller cost projects and higher volume to drive business. Now 30,000 500 it would seem our remodelers can afford to be somewhat more selective of the 20,000 projects0 they are able to accept in trade for higher value projects that naturally cast 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 10,000

off a higher profit potential.

Kenton

Volume v. AVG Value

Axis Title Axis Title

2500

70,000 60,000

2000

Permits

50,000 1500

40,000 30,000

1000

20,000 500

10,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

AVG Value

70,000

0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Volume

0

AVG Value

60,000

50,000

Axis Title

Campbell

We took a little deeper dive into the data to determine if there is a correlation between the volume of permitted projects and their value. What we found is that the overall trend of increased volume and increased values tend to trend together there is a counter cyclical relationship between the amount of overall permitted projects and their value.

That is to say that when higher valued projects come to market it could be assumed that remodelers are more willing to pass on lower valued permitted projects to focus on projects with higher value and logically more profit potential.

40,000

30,000

20,000

10,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Kenton

1000

0

Campbell

500

AVG Value by County

Boone 1500

0

Kenton

2500

0

Campbell

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Northern Kentucky BUILDER

4/2016

We wish to thank our Registered Remodelers during National Remodeling Month and all throughout the years for dedication to their professionalism and the overall construction industry. Every day we get phone calls from homeowners looking for the right professional to remodel their home. Since the ending of the last economic downturn those calls increase every year and every day we forward the callers a list of our Registered Remodelers and explain to them the virtues of the Registered Remodeler program. We hope that this information is both useful interesting for you. Thank you, Registered Remodelers,!

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Join us for our 2018

COMMERCIAL COUNCIL EVENT COMMERCIAL PROJECTS IN ERLANGER

Join the BIA and our guest speakers to learn about exciting new commercial projects in Erlanger, including redevelopment of the Showcase Cinemas site and the state-of-the-art SUN Behavioral Health Center.

Being held at SUN Behavioral Health Center 820 Dolwick Dr. Erlanger, KY 41018

Cost is $20 for non-members, $15 for members Appetizers and drinks (soft drinks and water) provided Alcohol prohibited at this facility

When: Thursday May 17th, 2018 3:00-5:00 PM

3-4 Mix and Mingle with tours/ 4-4:45 Speakers/ 4:45-5 Wrap up and tours Contact Mandy Trenkamp for reservations: mandy@buildersnky.com or (859) 331-9500

MEMBERSHIP AND COMMUNITY Milestone Members

These members have reached a milestone in their membership with their renewals in May. Congratulations!

One Year BME Inc. Lanigan Construction, LLC The Flooring Center KY, LLC Top Notch Sheet Metal Five Years Habitat for Humanity of Greater Cincinnati Leaf Guard of Cincinnati, Inc. Lunsford Custom Homes Teegarden Heating & Air United Installs, LLC

HONK CORNER

Housing Opportunities of Northern Kentucky is beginning its 26th year in service to the community. We have had a very successful first 25 years building 34 new homes and rehabbing 86 homes. In recognition of this success and the leadership of our Founder Rev. Jack Goeke, we are going to build what we will refer to as The Legacy House. We are working with the City of Elsmere towards the acquisition of a buildable lot on Dell St. for construction of a 6 room, 4 bed room, 2 bath, brick house with a 2 car built-in garage. In partnership with BIA it is our goal to build this house using donated materials and labor from BIA members and HONK supporters. Some retailers/suppliers have already stepped forward and have made significant donations. Please look for more information about this project and your opportunity to participate and support by going to www.honkhomes.org or calling David Hastings at 859-581-4665 or Doug DeLay at 513-616-4082.

Thanks for supporting HONK!

Ten Years Service Master Restoration Fifteen Years Paul Hemmer Company Perfection Landscaping & Design, Inc. Forty Years Arlinghaus Builder New Members and Recruiters Curb Appeal Landscape & Design Rich Maile Kelle Construction Stan Wagner Lights and Signs, LLC Ross Kreutzjans Option Financial Pat Parshall

DID YOU KNOW? The BIA of Northern Kentucky partners with NPP to provide discount on products and services. NPP negotiates the rates and makes them available to BIA of Northern Kentucky members. Visit www.mynpp.com/bia-ofnorthern-kentucky, Click START SAVING Here are just a few of the discounts available.

Sherwin-Williams • Special NPP member pricing • Expert support and resources at over 4,ooo stores nationwide Enjoy exclusive discounts and personalized service from the nation's largest specialty retailer of paints, coatings and painting supplies. Order online and get a fast turnaround for in-store pickup.

Harry & David 20% Off delivered gifts for any occasion Skechers 30% Off work and corporate casual footwear

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Northern Kentucky BUILDER

BIANKY BUSINESS MEETINGS AT A GLANCE MAY Get Involved 3

BIA Signature Event - Derby Party at Belterra Park 4:00 - 7:00 pm

5-20

2018 Cavalcade of Homes, Saturdays and Sundays, noon until 5 PM visit Northern Kentucky's largest selection of new homes.

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Sales and Marketing Council Board of Governors Meeting

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12th Annual Builder Realtor Bash. Join the NKY builders and REALTORS. Builders reserve your booth now!

Sponsorships are available. REALTORS are complimentary. $20 for Non Realtors

16

Land Development Council Board of Governors / Monthly meeting of the Land Development Council Board of Governors.

All Council Past Presidents are welcome and encouraged to attend this meeting.

21

State & Local Government/PAC Committee / The committee will discuss legislative issues and engage an elected or appointed official in dialogue over issues concerning the construction industry. All members are welcome to attend this meeting.

28

Memorial Day - BIA Office Closed

31

Executive Committee / Monthly meeting of association senior leadership team

31

Board of Directors / Bi-monthly meeting of association leadership

JUNE A Look Ahead 11

55th Annual HBA Golf Outing - Traditions Golf Club from 10:00 AM - 7:00 PM

12

Sales and Marketing Council Board of Governors Meeting

20

Land Development Council Board of Governors / Monthly meeting of the Land Development Council Board of Governors.

All Council Past Presidents are welcome and encouraged to attend this meeting.

21-22

Home Builders Association of Kentucky's Summer Board of Directors meeting. Visit www.hbak.com for more information.

24-25

NAHB Mid Year Meeting and Legislative Conference at the Marriott Wardman Park Hotel in Washington, DC

25

State & Local Government/PAC Committee / The committee will discuss legislative issues and engage an elected or appointed official in dialogue over issues concerning the construction industry. All members are welcome to attend this meeting.

26

NAHB Mid Year Meeting and Legislative Conference at the Marriott Wardman Park Hotel in Washington, DC

28

Executive Committee / Monthly meeting of association senior leadership team

Go to buildersnky.com or call 331-9500 for reservations and confirm dates

BIA SIGNATURE EVENT

55th Annual Golf Outing Spend the day on the green networking with members!

June 11

BIA SIGNATURE EVENT

Family Barbeque July 12

More member fun in the park with food, games and barbeque of course!

Northern Kentucky BUILDER

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NEWSROOM REGISTRATION FOR NAHB MID-YEAR BOARD OF DIRECTORS MEETING OPENS MAY 14

MEMBER SPOTLIGHT

Michelle Caldwell, Senior Mortgage Loan Officer

1. Tell me how you first got involved in with the Building Industry Association of Northern Kentucky. I was invited to attend Table Top Night at the previously named Horseshoe Casino.

2. What do you think will change about the Building Industry Association of Northern Kentucky over the next five years OR what would you like to see change? Hard to say, but I hope to see the remodeling piece of our industry continue its growth, as well as new construction. There are several old homes with great bones that people could really make their dream homes, once they find their perfect location! I’m a big fan of old architecture.

3. What might someone be surprised to know about you? I’m a huge coffee fan!

When we go out of town, we try and make it a point to find at least one local coffee shop to stop in.

4. What do you do when you aren't working or volunteering? Spending time with my husband, Clay, and kiddos, Owen & Olivia. We like to find new adventures to get in to. I’m also a fan of jig saw puzzles, during the winter months.

5. What is your best tip to provide to our members about networking with potential customers and clients? Get out more!

Sometimes networking can feel intimidating when you’re not in a field that forces you to be in front of a lot of people; but the more you’re out and about, the easier you’ll find familiar faces and great conversations.

Everyone would prefer to refer their business to folks they like and trust.

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Northern Kentucky BUILDER

But you can reserve your room now! The 2018 NAHB mis-year Board of Directors meeting will be held July 24-28 at the Oregon Convention Center in Portland, OR. You can make your hotel reservation at any time. The block rate hotels are as follows: • Hilton Portland Downtown (HQ hotel) - 921 SW 6th Avenue, Portland, OR 97204 • The Duniway Hotel - 545 SW Taylor Street, Portland, OR 97204 • Portland Marriott City Center - 520 SW Broadway, Portland, OR 97205 The committee and leadership schedule is as follows: Wednesday, July 25, 2018 8:00 a.m.–10:30 a.m. National Housing Endowment - Hilton 8:00 a.m.–12:00 p.m. State Representatives Meeting - Hilton 8:00 a.m.–12:00 p.m. National Area/Associate Chairmen Meeting - Hilton 1:00 p.m.–5:00 p.m. Executive Board Meeting - Hilton Thursday, July 26, 2018 7:30 a.m.-9:30 a.m. Subcommittee Track 1 7:30 a.m.–10:00 a.m. Multifamily 8:00 a.m.–10:00 a.m. National Area/Associate Chairmen 8:00 a.m.-10:00 a.m. Global Opportunities Committee 10:00 a.m.–12:00 p.m. Subcommittee Track 2 12:30 p.m.–2:30 p.m. Subcommittee Track 3 1:30 p.m.–4:00 p.m. Home Innovation Research Labs

National Housing Center Board of Governors Nominations

Public Affairs and Association Communications 3:00 p.m.–5:00 p.m. Subcommittee Track 4 4:30 p.m.–7:00 p.m. Education 5:30 a.m.-7:30 p.m. Subcommittee Track 5 7:00 p.m.-10:00 p.m. Capitol Club Event – Irving Street Kitchen 7:00 p.m.-10:00 p.m. Gold Key and Platinum Club Events - Castaway Friday, July 27, 2018 7:30 a.m.–10:00 a.m. Audit

Construction Liability, Risk Management, & Building Materials Design

Environmental Issues Federal Government Affairs Membership

Professional Women in Building Presidents Council

Single Family Builders 7:30 a.m. – 1:00 p.m. Legal Action 10:30 a.m.-12:00 noon NAHB Past Chairmen/Presidents 10:30 a.m.–1:00 p.m. 50+ Housing

Associate Members Building Systems

Business Management & Information Technology Construction Safety & Health

NAHB Remodelers

State & Local Government Affairs 12:00 p.m.–1:30 p.m. Senior Officers Meeting & Pre-Resolutions Luncheon 1:30 p.m.–4:00 p.m. BUILD-PAC Trustees

Construction, Codes & Standards Convention & Meetings

Custom Home Builders Housing Finance

Land Development Sales & Marketing 4:30 p.m.–7:00 p.m. Budget & Finance NAHB Leading Suppliers Resolutions

Young Professionals 6:00 p.m.-7:30 p.m. Regional Receptions - Hilton Saturday, July 28, 2018 8:30 a.m.–11:00 a.m. Area Caucuses 1-15 11:00 a.m.–12:30 p.m. Joint Executive, Budget and Resolutions Meeting 1:00 p.m.–5:00 p.m. Board of Directors Please log into www.NAHB.org to make your reservations for both your lodging and/or your attendance.

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Open Enrollment Now Happening for 2018-19 Academic Year for Enzweiler Building Institute To get an application simply visit our website at www.buildersnky.com/trades-training-and-jobs.html You and your employees will be glad you did!

You can always contact our Director of Professional Development, Shawn Cox at 859 331 9500 or scox@buildersnky.com with any questions.

We are thrilled to introduce Jerry Siemer as the newest member of the Hagedorn family!

Jerry will be adding his considerable experience to our team in Commercial Builder Sales.

Sale Welcome, Jerry!

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Northern Kentucky BUILDER

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Northern Kentucky BUILDER

11

A Well-Managed Project Can Go a Long Way to Build Your Company’s Success

W

ith thousands of variables to handle, just how does one successfully manage construction projects? Staying on top of timelines, meeting deadlines, and keeping teams working effectively and efficiently doesn’t just happen; successfully managing your construction project requires adhering to some critical factors, and the end result earns your business a stellar reputation.

Seamless Communication “Communication remains the primary means for managing and completing a project successfully,” says Sean P. Foley, Ph.D., Program Director and Association Professor of the Construction Management Program in the Haile/US Bank College of Business at Northern Kentucky University in Highland Heights, Kentucky.

While the past couple of decades have seen tremendous advancements in communication methods, Foley points out that not all communications methods are created equal, and that some individuals find it difficult to determine which form is best for a given situation, be it phone call, email, or text message.

“That being said, technology has provided new and creative ways to address the exact dimensions you 12

Northern Kentucky BUILDER

reference – costs, handling changes or obstacles, communication, organizations, and others,” says Foley. “We are seeing more and more integrated design and construction teams where the major players come to the table at the early stages of a project to determine the best solutions. These can be loose informal meetings or structured Integrated Project Delivery (IPD) solutions where all the major players are under one contract. Another dramatic advancement has been the Building Information Modeling (BIM) revolution in our industry.”

Foley says three-dimensional models are created by the respected disciplines, then brought together for use in coordination of the project. Those coordinated models form the base allowing for better collaboration, communication, and coordination of the project.

“Significant cost savings have been found by means of reducing rework by as much as 80% on projects as MEP – mechanical, electrical, and plumbing systems n—structural, and architectural conflicts are found prior to installation in the field,” says Foley.

The Fine Details With communication key throughout all stages of a construction project, Paul Bogenschutz, President of Ashley Construction in Edgewood, Kentucky, points to other specific essential tips and best practices in managing construction projects.

For instance, says, Bogenschutz, if you’re building on the customer’s lot, make sure you have a clause in your contract that allows you to charge extra for unforeseen rock conditions or other soil conditions that were not called out in the plans or a soil report.

Be sure, he says, to review plans with the customer and have them sign off before the plans go to the building department so as to avoid a false start and have to resubmit.

Facts and Figures Before You Sign And be sure to know the exact figures before signing a contract.

“Make sure you know your cost before signing a contract,” says Bogenschutz. “Prepare a detailed estimate and make sure you get current pricing from your subs and suppliers since the market conditions change very quickly.

Having an estimating template keeps you from missing items as you’re going through an estimate. I also suggest that you use an Excel spreadsheet since it can take the manual errors out of the adding and multiplying functions and it allows you to make changes a lot quicker.”

Once you go to contract, says Bogenschutz, it’s important to lock into pricing with contracts to subcontractors and purchase orders to suppliers to protect yourself and the customer from “cost creep.”

And monitor your bills and checks against the quote, says Bogenschutz,

to avoid over paying, and to make sure that you’re well aware of your overall cost as the job moves along.

“If you wait until the end of the job, it may be too late to change the outcome,” he cautions.

“Computer companies have many software products out there that can help with tracking your costs,” says Bogenschutz.

Pre-construction meetings with the customer gives the opportunity to introduce them to your team who will be working with them directly on the project. These meetings are also opportunities to discuss expectations and completion times.

“Allow some time in your schedule for either conditions and have a conversation as to how important it is to have selections done and out of the way early so that the job doesn’t have delays,” says Bogenschutz.

“List them out, with dates, for the homeowners when certain items need to be selected, otherwise they may spend their time on items that don’t need to be selected until further down the road.”

Earn Customer’s Satisfaction and Recommendations Through Quality Work Bogenschutz cautions to be careful not to change your project completion date unless you’re sure you can meet the new deadline.

“Remember, you have to deal with the unknown weather conditions or sub/supplier delays,” he says. “The last thing you want to do is rush the

"

Communication remains the primary means for managing and completing a project successfully

”

job at the end and lose the quality and therefore lose that customer’s recommendation for future jobs.

They’ll forget that you were a week late in finishing a job, but they never forget a poor-quality job.”

Bogenschutz echoes Foley’s counsel regarding communications: keep the customer in the loop.

“The more you keep them in them involved, the better the end result will be,” says Bogenschutz. “No one likes surprises, so if you have a problem that can’t be resolved without changing the way the customer wanted it, then talk it over with them, giving them different options so they can be part of the solution.”

This communication includes staying updated on order changes.

“There is nothing worse than waiting to the end and handling them a large change order,” says Bogenschutz. “They don’t like surprises! All changes should be priced and approved by the customer before you do the work.

Try not to nickel and dime the customers. They hate this.”

Keep it Tidy Clean job sites matter. “Nothing says you don’t care about their home than having a messy job site,” says Bogenschutz. “Make sure your subs clean up after themselves.

And keep your files tidy, while you’re at it. Bogenschutz advises keeping separate job files in the

office for each job so you can quickly reference them, and for down the road when you need to research an item.

And don’t forget to help your customer stay organized.

SPRING MEMBER DRIVE Why aren’t more companies’ members of the BIA? Maybe they were never asked. The best people to do the asking are current members like you. Each year the BIA counts on you to help us grow by encouraging your building industry colleagues and peers to join.

May 15th from 9 am – 2 pm Breakfast and lunch will be provided.

Prizes for top recruiters. Members earn triple spike credits the whole month of May. RSVP to Tammy with the time you are able to attend at tarvin@buildersnky.com or 859-331-9500.

“Provide the customer with their own job binder so they can keep their selections, contract, plans, and items that they collect when researching products when making their selections,” he says.

Review the job’s actual costs versus estimate costs at the end of each job, advises Bogenschutz. This allows you to see where you can improve on your estimates. And if you missed an item, make sure you add it to the estimate template so you don’t miss it again.

Finally, Bogenschutz recommends setting up a draw schedule in the contract and be sure to follow it.

“You need money to run your company, so make sure that you keep an eye out for the draw dates,” he says. “You should try to get at least four draws on a smaller home and at least five draws on a larger home. If you run into a job that may run one year or more, I suggest a monthly draw based on the work that was completed the month before. That way, you are not strung out for a long period of time waiting on the next draw, and your subs and suppliers are wanting to be paid at least every two weeks.”

Northern Kentucky BUILDER

13

Barbara Huff, Maryann Curtin, John Curtin, John Toebben, Dana Toebben

TABLE TOP NIGHT 2018 Good times were had by all at this year’s Table Top Night!

The BIA’s premier networking event was once again held at Belterra Park Racing & Entertainment Center. Several of Northern Kentucky’s top Registered Builders, Remodelers & Developers attended, giving exhibitors an opportunity to showcase their newest products and services, and make new connections. This year, the committee chose St. Patrick’s Day as the theme. Mike Eubanks was back as the emcee, and so was the jail! There was also a Pot O’ Gold where people could donate $10 to choose a coin. Lucky people won prizes and not so lucky people wound up in jail. Regardless of how people’s luck played out, everyone had a great time eating, drinking, networking, and celebrating St. Patrick’s Day a few days early. Congratulation to Sims-Lohman for winning the best decorated booth award!

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Northern Kentucky BUILDER

Cheryl Stegman, JoEllen Thompson

A special thank you to the Table Top Night committee for all of their hard work: Mike Eubanks, Pat Parshall, Watson Jones, Cheryl Stegman, JoEllen Thompson, Joe Walter & Diana DeVore.

Table Top Night was presented by Florida Tile. Thank you to our other sponsors who made this year’s event possible: Pella Windows & Doors, Star Building Materials, Republic Bank, Reading Rock, Stewart Title, Missy Bricking, Northwest Title, 360 American Title Services, CK Ash, Edgewood Electric, Forge Lumber, Granite & Quartz Wholesale, Great Force Insurance, Logan Lavelle Hunt, Option Financial, Wiseway, Top Quality Building Products & Janell.

Jessica Rose, Charley Wayman Sims-Lohman, Best Decorated Exhibitor

All money raised at this year’s Table Top Night was donated to the Enzweiler Building Institute.

Florida Tile, Brandy Roberts

Pat Parshall, Walt Dunlevy

Mike Eubanks, Brian Miller

Northern Kentucky BUILDER

15

2018 Kentucky General Assembly Wrap Up Another Year of Positive Change for Kentucky and our Region

At

press time the following update covers the waning days of the 2018 Kentucky General Assembly. Usually, we would be able to report back on a completed session absent the veto period, as bills would have made their way through the regular session. The session was pushed back a few days to allow for the Free Conference Budget Committee to do its work. If there are any missed issues we will work to report back to you on them in our next issue of NKB. Additionally, the biennium budget has yet to be vetted at press time.

The 2018 session has been foundationally transformative.

During the 2017 General Assembly there were many bills that your industry has long advocated in favor of. The 2018 session continued to be surprisingly effective. We wish to once again thank the members that traveled to our Commonwealth’s Capitol to represent their industry on February 7th.

As a result of your efforts we report back the following list of bills that made it through the process and are either signed into law or await Governor Bevin’s signature: HB 2 – Workers Compensation This bill, sponsored by Adam Koenig, fixes a Kentucky Supreme Court ruling that created lifetime coverage for permanently partial injured workers. Currently, our employers are experiencing dramatic increases in their workers compensation insurance due to the recent ruling. This bill has been sponsored by Representative Koenig for several years. We congratulate him on final passage of Workers Compensation Reform!

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Northern Kentucky BUILDER

HB 100 – Building Industry Licensure This bill originally filed to allow for electrical and plumbing contracting companies to carry on for six months after the death of their master license holder has had an extremely important committee substitute added by your association.

We were successful in introducing Senate Committee Substitute 1, which authorizes Kentucky amendments to the National Electric Code. We have had the ability for our Commonwealth to amend the building code for decades and now we may have the ability to do the same with the electric code. Manufacturers have found money in the codes by mandating the installation of their products. By allowing Kentucky to amend the electric code we can avoid these situations.

HB 252 – Unemployment Insurance This bill would give the Secretary of the Education and Workforce Development Cabinet the authority to reduce rates or suspend payments to the service capacity upgrade fund. In short, the current time a dislocated worker can file for benefits is 26 weeks. The bill is estimated to likely reduce the time by ten weeks. This will lower your unemployment insurance rates as a business owner.

HB 314 filed on February 6th

by Rep. James Tipton, is a critical piece of legislation to the construction industry. The legislation would allow the Secretary of the Labor Cabinet, through an administrative order, to suspend or delay the enforcement of a regulation that was automatically adopted

by Kentucky OSHA if Federal OSHA delays or suspends the corresponding federal regulation.

Why is this important? Within the last year, at least three regulations, OSHA's "silica dust" rule, the "derrick and crane" rule and the "beryllium" rule were issued as "midnight" regulations in late 2016 and January 2017 during the transition of administrations on a Federal Level. Due to Kentucky's existing law, both rules were automatically adopted

by Kentucky OSHA in 2017 - despite OSHA working on significant changes for both rules. Most Kentucky employers do not realize beryllium is present in their workplaces, or they're potentially impacted by the rule.

HB 370 – Property Development Speeds up the responsive time from the state regarding environmental remediation cases and sets a hard deadline for approved or denied applications. The bill requires public notice of remediation projects but removes the newspaper provisions for public notice.

SB 151 – Pension Reform – Originally, Pension Reform was drafted in Senate Bill 1. There was no agreement on SB1 and since the deadline for introduction of new bills had passed, another bill had to carry Pension Reform for any change to be accomplished. The bill does many things to change the pension system. Following is a list of significant changes regarding Pension Reform: • Reforms Teacher Retirement System sick-day benefits – Teachers had been paid up to 300 sick days unused during their career but also based those benefits on their highest paid years. That is, if they passed on taking sick days early in their career they were compensated for

a rate that was disconnected from the unused sick days. Current teachers will no longer be able to apply future unused sick days after July 31, 2018 toward service credits in a manner that allows them to retire early; • Prohibits state workers from applying future unused sick days after July 31, 2018 toward service credits in a manner that allows them to retire early; • Ends the double dipping in the Kentucky Retirement Systems by mandating that state employees retiring after January 1, 2019 and returning to state jobs would not get a second retirement account; • Increases the age that new teachers and administrators in the Teacher Retirement System would be eligible for retirement to age 65 with five years of service or the “rule of 87,” which requires beneficiaries’ combined age and years of service to equal 87 before reaching retirement eligibility; • Limits the “inviolable contract,” which protects reduction in future benefits, to only covering the cash-balance accounts; • Retirement payments should now be much-more aligned with contributions made by both the employer and employee rather than the previous defined benefit systems, which produced arbitrary, artificially high and ultimately unaffordable benefits; • Establishing a 17-percent shared investment: o Teachers contribute 9.105 percent of their salaries (similar to their current contributions); o The state adds 6 percent; o Local school districts provide 2 percent; • The bill does not affect cost of living adjustments or make any other changes to existing teacher’s retirement benefits.

Tax Reform, The Road Plan and The Budget…Oh My!!!

Senate Bill 231 – Kentucky Work Ready Scholarships and KEES Scholarships The Work Ready Scholarship program portion aside, SB231 was amended on the House Floor to include KEES funding for “Qualified Workforce Training Programs”. This language was originally a portion of House Bill 247. That bill was a reform overhaul of the KEES program and ultimately did not have consensus to be taken from the House Orders of the Day and come up for a vote. As a result, we were successful in working with leadership of the Education and Workforce Development Cabinet and Representative Kimberly Poore Moser to ensure that students of the Enzweiler Building Institute had the ability to use their KEES scholarships to attend our school. It has been our long-held belief that the construction industry and our training program should be on the same level playing field as other base industries such as advanced manufacturing and health care. At press time the House of Representatives just passed SB231.

The amendment is off to the Senate for Concurrence of House Floor Amendments.

We hope that your businesses benefit for many years to come as a result of the last two General Assembly sessions with transformational wins for which your association has long advocated. Each Friday we update the membership about our advocacy efforts not only in Frankfort but also the local and national level. If you do not receive and wish to be added to our weekly advocacy email updates, please call us at 859-331-9500 or email Mandy@BuildersNKY.com.

T

he Kentucky General Assembly has taken up pension reform, the state budget, revenue and tax reform within the last few days of the session. At press time the General Assembly has begun a 10-day veto period which allows Governor Matt Bevin to veto legislation enacted by the General Assembly.

At press time and after the veto period, the legislators will return on Friday, April 13, 2018 to complete the final days of the 2018 legislative session. The last day of the legislative session will also be the only opportunity the Kentucky General Assembly will have to override any of Governor Bevin's vetoes.

Budget A $22 billion state budget would restore some funding cuts proposed

by Governor Bevin while insuring KY fully funds its public pension system also received final passage this week.

Road Plan HB 202 - The road plan would authorize over $2.4 billion for bridges, repaving and other highway needs throughout KY over the next two fiscal years has received final passage and is now headed to the governor's desk.

Northern Kentucky Construction Funding Projects of Important Impact: Boone County • Mt. Zion Road Interchange $5,430,000 • I-75 between KY-536 and US-42 - $1,060,000 • Graves Road Interchange - $4,000,000 in 2019 & $11,000,000 in 2020 • I-75 & I-275 interchange $2,000,000 in 2019

• KY-536 from I-275 to Cardinal Way - $3,000,000 • Donaldson Road Widening - $2,000,000 in 2019 and $5,000,000 in 2020 • Mineola Pike Widening $1,500,000 in 2019 • Pleasant Valley Road to Hopeful Church Road Connector $1,500,000 in 2020 • General issues regarding Amazon - $2,000,000 in 2018 and again in 2019 • Federal matched earmark $35,140,000 in 2018, $9,100,000 in 2019 and $3,150,000 in 2020 • Reconstruct North Bend Rd to Rogers - $22,180,000 • I-75 Maintenance - 23,980,000 • Reconstruct Gunpowder Rd $1,000,000 in 2019 Campbell County • Combs Heil Bridge rehabilitation - $4,500,000 in 2019 • US-27 lane added from Marshall Ln to Johns Hill Rd - $300,000 in 2018 and $500,000 in 2019 • New Technology Triangle access road - $1,439,840 Kenton County • Brent Spence Bridge deficiencies - $1,439,840 • Brent Spence Bridge maintenance and repair - $30,000,000 in 2019 • Safety and congestion of KY-536 $1,000,000 in 2019 • KY-536 project - $4,500,000 in 2020 • Hands Pike from KY-17 to Crystal Lake Dr. - $8,010,000 in 2019 • Roebling Bridge deficiencies $1,200,000 in 2019 • KY-177 Bridge over Bowman Creek - $425,000 in 2019 and $2,695,000 in 2020 • KY-2045 Bridge over Bushy Creek - $350,000 in 2019 and $3,605,000 in 2020 • Pavement on I-275 - $18,020,000

in 2019 To give you an idea of the scope of road projects following is a list of major populated county's funding in the Biennial Highway Construction Plan from 2018 through 2020: Lexington - $145,591,373 Louisville - $353,455,414 Northern Kentucky - $296,899,670 To read the entire list of road projects read the final version of HB 202.

Legislative Branch Also given final passage this week was the state Legislative Branch budget in HB 204 and the Judicial Branch budget in HB 203.

Tax Reform While the veto period is taking place the BIA will review the FULL revenue and tax reform package that was presented this week. A few of the items in the tax reform package include the following: • 5% flat rate for corporate income tax and individual income tax • Phased-in inventory tax credit • Tax on selected services (lawn care, dry cleaning, janitorial services, gym memberships, etc.)

• Tax on labor and services for certain repair, installation and maintenance • State personal itemized deductions will be Mortgage Interest Deduction and charitable deductions only.

• The sales tax in KY will remain at 6%

Thursday, May 10th 3-6PM at the NKAR Education Center This is an educational event for REALTORS. Builders reserve your booth now!

Sponsorships are available. FREE TO REALTORS ONLY. ($20 for Non Realtors) Contact Jessica at jessica@buildersnky.com or 859.331.9500

Buy The t Bes

“Concretely

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Thank you contractors, building owners and greater community for the opportunity to serve you.

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Columbus 831 Harmon Ave. Columbus, OH 43223 P: (614) 224-9111

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MillenniumClub Sales TOM SEITER & JIM HOERLEIN Dispatch MIKE BESSLER

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Reis Concrete Products, Inc. Ready Mix • Concrete Septic Tanks

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Email: concrete02@fuse.net • Fax: 859-635-REIS

Arlinghaus Builders C.K. Ash Insurance Barnes, Dennig & Co. Ltd Boone Ready Mix, Inc. Bray Trucking, Inc. Budget Blinds & Tailored Living Carpetland Cincinnati Closets, LLC Cincinnati Glass Block Citizens Deposit Bank Contract Lumber Cutter Construction The Drees Company Dudley Construction Co., Inc. EGC Construction Corporation Ernst Concrete Fischer Homes Florida Tile Ideal Garage Solutions Inc. Janell Concrete & Masonry Inc. The Jennifer Vories Team with Keller Williams Realty Services Kelly Bros. Lumber Kentucky Federal Savings & Loan Kentucky FluidAir, Inc. Kitchens by Rutenschroer L & N Federal Credit Union Logan Lavelle Hunt M & W Excavation Co Inc. Marshall Auto Group Nisbet Brower Northwest Titles Family of Companies, Inc. Reading Rock Inc. Reis Concrete Sims-Lohman Fine Kitchens & Granite SRM Taylor Brothers Inc. Tri-City Insurance Vonlehman & Company Watson Gravel Inc. Wiseway Supply WRC, Inc. The Millennium Club is an elite group of companies whose contributions pay for the refreshments and entertainment at events like the Annual Golf Outing, Tabletop Night, Elk Creek Outing and the Holiday Party.

20

Northern Kentucky BUILDER

www.kellybros.com DRY RIDGE 85 S. Main Street 859-824-3371 COVINGTON 3502 Latonia Avenue (at 35th Street) 859-655-8134

HERE FOR WHEN YOU PLAN AND WHEN YOU DON’T We have been partnering with Kentucky builders for over 50 years. Let us help you put your company’s insurance, group benefits and wealth management programs in place for all the challeneges your business faces.

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Start Planning With Us Today 888.499.6880 | www.LLHins.com Northern Kentucky BUILDER

21

55TH ANNUAL GOLF OUTING

Golden Eagles Club Members David Drees

TEE OFF WITH THE BIA

Greg Fischer Jack Miller

Ralph Drees

Mike Kegley

June 11th @ Traditions Golf Club 2035 Williams Rd, Hebron, KY

9:30am. Registration 11:00am Lunch & 12:00 p.m. Shot Gun Start $600 per foursome, $150 per golfer *Payment is required with reservation. Price includes 18 holes of golf with cart, three beers per golfer, grill lunch, dinner and awards.

Reservations Open To make your reservation call Tammy at 859-331-9500 Contact Charley at Charley@hbanky.com or 859-331-9500 to sponsor the biggest event of the year!

HERE FOR WHEN YOU PLAN AND WHEN YOU DON’T We have been partnering with Kentucky builders for over 50 years. Let us help you put your company’s insurance, group benefits and wealth management programs in place for all the challeneges your business faces.

ADVICE. SERVICE. RESULTS.

INSURANCE

GROUP BENEFITS

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Start Planning With Us Today 888.499.6880 | www.LLHins.com

22

Northern Kentucky BUILDER

LIST YOUR HOMES FOR FREE AT BUILDERSNKY.COM!

New homesource.com has partnered with the HBA to bring you free listings on our website at www.hbanky.com.

Tap into the power of over 3,000 unique visitors a month on the HBA’s site. To see the builders already taking advantage of free listings go to newhomesource.com/hbanky.

This service is provided to you as a member and managed by the staff at newhomesource.com.

DO BUSINESS WITH A MEMBER For a list of current members of the Building Industry Association of Northern Kentucky call 859.331.9500, download the BIA’s APP or visit www.BuildersNKY.com.

W O R K LLIVE I V E PLAY P L AY WORK

Creating and maintaining beautiful outdoor living spaces….

LIVE WORK PLAY

NKY RELO Your Guide to Homes, Working, Entertainment and a Few Things In-Between for the Newcomer in the Northern Kentucky Area

repeat

NORTHERN KENTUCKY RELOCATION GUIDE 20 18

Check out the online version on issuu.com (search 2019 Northern Kentucky Relocation Guide)

Are you ready to reach relocators?

859-630-9995

2019 Relocation Guide Advertising Rates Available!

Contact Charley 859-331-9500. charley@buildersnky.com

Northern Kentucky BUILDER

23

y l i fam BIA

th

2 1 y l u J

4 : 0 0 pm – 8 :0 0 pm Pre sid e nts P a r k , E d ge w o o d, Ke n t u c k y @Ada m s S h e l t e r $ 2 0 P e r P e r s o n 16 a n d u n d e r F RE E

DO BUSINESS WITH A MEMBER For a list of current members of the Building Industry Association of Northern Kentucky call 859.331.9500, download the BIA’s APP or visit www.BuildersNKY.com

NORTHERN KENTUCKY BUILDING PERMITS MARCH ‘18

#

SINGLE FAMILY

#

MODULAR HOMES

#

MULTI FAMILY

#

CONDOS

#

COMMERCIAL

#

COMMERCIAL REMODELING

#

RESIDENTIAL REMODELING

BOONE

47

$10,036,506.00

0

0

9

$8,250,000.00

2

$938,209.00

6

$24,671,000.00

64

$12,740,620.00

56

$827,048.00

CAMPBELL

14

$3,699,989.00

0

0

0

0

0

0

1

$416,000.00

6

$730,000.00

17

$142,371.00

KENTON

20

$4,511,297.00

0

0

0

0

0

0

0

0

32

$13,071,045.91

40

$1,908,769.00

GRANT

8

$1,439,000.00

0

0

0

0

0

0

0

0

2

$3,605,000.00

1

$17,000.00

MASON

0

0

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL

89

$19,686,792.00

0

$0.00

9

$8,250,000.00

2

$938,209.00

7

$25,087,000.00

104

$30,146,665.91

114

$2,895,188.00

Contact Charley@buildersnky.com today to receive this monthly report in full detail. Investment is $275 to receive all 12 reports for 2018.

MARCH ‘17

#

SINGLE FAMILY

#

MODULAR HOMES

#

MULTI FAMILY

#

CONDOS

#

COMMERCIAL

#

COMMERCIAL REMODELING

#

RESIDENTIAL REMODELING

BOONE

48

$9,105,733.00

0

0

7

$2,172,575.00

0

0

5

$3,636,315.00

47

$14,649,509.00

70

$1,073,349.00

CAMPBELL

15

$3,622,817.00

1

$57,186.00

2

$864,000.00

0

0

1

$550,000.00

10

$821,104.00

20

$173,231.00

KENTON

19

$3,824,737.00

0

0

0

0

0

0

0

0

13

$985,125.00

28

$586,028.85

GRANT

4

$540,000.00

2

$192,000.00

0

0

0

0

0

0

1

$186,000.00

1

$15,000.00

MASON

0

0

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL

86

$17,093,287.00

3

$249,186.00

2

$3,036,575.00

0

$0

6

$4,186,315.00

71

$16,641,738.00

119

$1,847,608.85

26

Northern Kentucky BUILDER

and a premier tool to market your homes to a wider audience coming this spring on...

ANNUAL HOMEBUYER FAVORITE EVENT...

Sponsorships are available and can be purchased through different levels.

Runs the weekends of May 5-6, 12-13, & 19-20

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Marketing and advertising for the Cavalcade of Homes will be a combination of social and broadcast media, digital campaigns, and a show guide

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For sponsorship information, contact Charley Wayman at 859-331-9500.

For more information or to book your entry, contact Jessica Rose, Director of Shows & Events at 859-331-9500 or by email at Jessica@BuildersNKY.com

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1/30/15 2:47 PM