November/December Tidewater Builder

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The mission of Tidewater Builders Association is to improve the climate for affordable housing; promote the growth and development of the shelter industry; promote excellence and professionalism among members through education and networking opportunities; and support and enhance the community through charitable projects. 2011 OFFICERS: William H. Halprin, president; S.L. “Sam” Cohen, vice president; Scott M. Gandy, associate vice president; Steven E. Lawson, treasurer; Dennis M. Graf, secretary; Eric Sasser, appointee; Lucky C. Peterson, appointee; and Pete A. Kotarides, immediate past president. 2011 BUILDER DIRECTORS: Douglas C. Smith, Gary L. Werner, Scott L. Crumley, Chris Ettel, Erin Widener Speckhart, Lucky C. Peterson, Tuck Bowie and Stephen Quick. 2011 ASSOCIATE DIRECTORS: Joseph W. Kesterson, Kelly M. Beck, Robert L. Nicholson, Robert M. Boyd, Gregory Dodd, Thomas Dye, Brenda Reid and Edward O. Yoder. DIRECTORS EMERITI: Edward P. Brogan, William J. Fanney, Richard D. Guy, Doyle E. Hull, Frederick J. Napolitano, Richard E. Olivieri, John H. Peterson Jr., Julian Rashkind, Stanley Waranch, Howard M. Weisberg, Wendell A. White. CHIEF EXECUTIVE OFFICER:

Channing A. Pfeiffer

Managing editor. . . . . . . . . . . . . . . Mary Prier, APR Editor . . . . . . . . . . . . . . . . . . . . . . . . . . Sara Steil Advertising sales . . . Kim Powers, Jean McCullough Production coordinator . . . . . . . . . . . Stella Council Adviser . . . . . . . . . . . . . . . . . . . . . Sandra Amidon Graphic Artist . . . . . . . . . . . . . . . . . Diane Trumbull Copyright: 2011; all rights reserved. No permission to reprint unless expressly given by Tidewater Builders Association. The Tidewater Builder is published for all TBA member firms through the $15 subscription price, which is included in the annual membership fee. Opinions expressed by contributing columnist are not necessarily those of this publication.

The Tidewater Builder is published bi-monthly, January through December, by Tidewater Builders Association, located at 2117 Smith Ave., Chesapeake, VA 23320. Editorial deadline is 5 p.m. on the 1st of the month preceding publication. The advertising deadline for copy and insertation can be obtained by calling the Homearama/Home Shows and Special Project division at (757) 420-2434. All advertising is subject to current rates, copies of which can be obtained from the Homearama/Home Shows and Special Project division, 420-2434. The magazine reserves the right to determine the suitability of any advertising or editorial copy, and all real estate advertising is subject to the Federal Fair Housing Act of 1968, which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention to make any such preference, limitation or discrimination.

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wo years ago I chose “Somewhere over the rainThis year’s Fall Charity House had special meaning to bow” as the theme for my Builders Ball installame because it was named for a scholarship recipient who tion as President of TBA. The building industry is destined for greatness. It was my honor to present Jushad just suffered two years of a bad economy, and tin Kauflin with his TBA scholarship at his high school asI really felt that my term in office would usher in a turning sembly back in 2004. I didn’t realize he was blind until he point and we would soon be in a land where skies are blue came forward to accept it. To see him now – as a successful and troubles melt like lemon drops. Unfortunately, that professional jazz musician — is so rewarding that I can’t put was not to be the case. into words how it feels. Michael Newsome and Lee Ward The multifamily sector of the housing industry has actuand the whole team at Clark Whitehill did an incredible ally benefited from the tough economic times that make it job in honoring him and securing the future of the scholdifficult to buy a home and Tidewater Multifamily Housarship foundation with a beautiful house. My hat is off to ing Council members have played an important role in them for their continued involvement and commitment to keeping our association strong and vital. this industry and the scholarship foundaStill, we recognize we’ll all be better tion over many years. served when the economy and the housing I have mixed emotions about approachDuring these tough years, market begin to show signs of recovery. My ing the end of my term because I had so I have seen a strong resolve hope is that Sam Cohen’s term as president many great times getting to know our from our members and our members. I’ve been involved with TBA next year will usher in that ray of sunshine we’ve all been waiting for. since 2000 and have had the pleasure of association. Those who During these tough years, I have seen a survive these tough times will meeting numerous builders and developstrong resolve from our members and our ing many lasting friendships. come back that much association. Those who survive these tough If I could offer one piece of advice to stronger in the future. times will come back that much stronger in TBA members, it is this — get involved the future. and get to know each other. That is really At TBA, we have listened closely to our where you’ll see the value of your membermembers and have streamlined what we do ship. I’ve seen time and again members to make the most of limited resources. who are competitors being friendly and helpful to each othThe TBA Restructuring Committee, which is now the er and offering good advice for surviving the tough times. I TBA Advisory Committee, studied the results of an exthink we’re all stronger for that. tensive membership survey. They recommended changes In closing, I want to thank the staff and the board memthat cut away some of the programs and activities that rebers who work behind the scenes to keep this association quired significant financial support from our members but strong and continue to make TBA the best builders associaretained educational programs and casual networking option in the country. Also, I want to thank the past presiportunities. dents and the future presidents who are so important to the We also recognized the importance of our associate success of this association. members and the reality that we’re all in this economy toThis has been a tremendous learning and growing experigether. We no longer provide services or programs exclusive ence that will serve me well for the rest of my life. to builder members. TBA’s Homearamas and home shows continue to proThank you for the opportunity. vide opportunities for members to gain exposure in the consumer marketplace — and to get out and enjoy some face time with their colleagues and their customers. The developers, the builders and everyone else who pulls William H. Halprin together a successful Homearama, which is one of my favorite TBA events, constantly amaze me.

2011 ANNUAL REVIEW

TBA adjusts to changing world

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By Channing Pfeiffer, CEO

It was another year of adjusting to a changing world. Recommendations from last year’s restructuring committee were implemented and more changes are likely in the year ahead. Unlike most associations, TBA counts on membership dues for a small part of our operating budget. Our for-profit insurance company, BIIA Insurance, and our consumer events (two Homearamas and the Mid-Atlantic Home & Garden Show) support TBA operations and allow us to keep our dues low.

While builder dues in some other Virginia associations range up to $8,500, TBA’s top dues level is $635. Advocacy for the industry remains at the core of our mission. Our mem-

bership survey confirmed it is what our members value most. Our Political Action Committee and municipal affairs efforts remain active and strong. At NAHB, a new chief lobbyist is leading the push for housing’s role in the economic recovery. Throughout 2011, we hosted free and low-cost educational and social programs. A streamlined member enewsletter, the eBUILDER, was introduced to share industry news as it was happening, and we adopted social media to communicate with members and consumers. TBA also continues to fulfill its historical commitment to community service with the TBA Scholarship Foundation and the TBA Building Trades Academy, both 501C-3 charitable organizations. A highlight of the year was when

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the Home Builders Association of Virginia presented TBA with a special Presidential Award for our work in consulting with other local associations on ways to generate non-dues income. Thank you to everyone who continues to support the industry through your membership. Here’s looking ahead to a growing economy in 2012.

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Membership

2 011 A N N U A L R E V I E W

ODU head football coach Bobby Wilder gave an inspiring speech to TBA members about looking ahead to the next play.

Members continued to find value in their association membership as TBA redoubled its efforts to provide lowcost programs and promote money-saving benefits. Among the year’s highlights were:

Meeting of the Membership • Held Feb. 16 at Norfolk Waterside Marriott • Nearly 200 people attended • Featured Old Dominion University Head Football Coach Bobby Wilder • Bob Widener of The Widener Corp. received the 2010 Member of the Year Award Annual TBA Picnic • Held April 14, at Chesapeake City Park • More than 1,100 people attended • More than 80 member companies sponsored food, beverages, games and support services • Borderline Crazy performed Benefits • Builder and remodeler member rebate program with quarterly payments averaging several hundred dollars • Twenty-two percent discount on cell service through Verizon Wireless • $500 off lowest negotiated price of a GM vehicle • Below-market pricing on small print jobs • Free listing in Find a Member section of TBA website • Competitive insurance rates through BIIA • Free member mailing labels Recruitment • The TBA board recruited 35 new members in May’s “Winning Handâ€? campaign • 35 new members were recruited during the second October Challenge drive • An informal “Members with Benefitsâ€? program was held Oct. 4 as part of the Membership Committee’s regular monthly meeting 56=,4),9 +,*,4),9

Councils

Richard Good of Solar Services stamps TV anchor Joe Flanagan’s passport during the Green Building Council’s Walkabout at the 2011 Home & Flower Show.

Tidewater Multifamily Housing Council • Chaired by Mike Devine of S.L. Nusbaum Realty Co. • Offered educational courses in apartment management and maintenance • Hosted the TMHC Olympic games at the TBA Picnic in April, with 15 owner/manager teams competing • Held the annual TMHC Associates’ Showcase, Awards Banquet & RAM Graduation in July at the Virginia Beach Convention Center • Held two informal Reverse Trade Shows • Held the first Co-Ed Volleyball Tournament in September at the Virginia Beach Field House • Will be offering the annual TMHC Holiday Cruise on the Spirit of Norfolk Dec. 15 Remodelers Council • Chaired by Don Landle of Jerry Harris Remodeling for a second year • Held monthly meetings with an emphasis on education. Topics included energy-saving techniques, lighting and local code changes • Brought the popular Fish Fry booth back to the TBA Picnic in April • Will be holding its annual Holiday Social Dec. 14 at the Coastal Lighting & Supply showroom Green Building Council • Chaired by Guy Sorensen of Meadow Green Builders Inc. • Held monthly meetings with an emphasis on educational topics • Produced a “Walkaboutâ€? for guests at the Mid-Atlantic Home and Flower Show. Show visitors were given a passport which was stamped at each GBC member’s booth throughout the show, drawing traffic to member booths while creating more opportunities to introduce visitors to eco-friendly products and services. The completed passport made each visitor eligible for prizes such as an Apple iPad, Amazon Kindle and LCD TV.Â

More than 25,000 consumers attended the 2011 Mid-Atlantic Home & Flower Show to fall in love with their home, again.

TBA offered members three major marketing opportunities:

Mid-Atlantic Home & Flower Show • March 4-6 at the Virginia Beach Convention Center • Attendance: More than 25,000 • National Home & Garden Show series presented by DISH Network • 11 lavish display gardens/hundreds of exhibits • Presenters: The Mole Hunter; Dr. Lori; feng shui expert Bonnie Primm; K9s in Flight • Sponsors: Belgard Hardscapes; Beach Windows & Siding; Dr. Energy Saver; Innovative Spas; Pilot Media; ValPak Spring Homearama • May 28-June 12 at Eagle’s Nest in Virginia Beach • Attendance: Nearly 40,000 guests • Nine custom homes by seven builders • Homes 2,600 to 4,400 square feet/from low $500,000s • Seven homes sold before show’s end; another sold later • Sponsors: City of Virginia Beach; HomeTalk.com; Monarch Mortgage; Waste Management; Dominion Virginia Power; Virginia Natural Gas; Harrison’s Moving & Storage; RSVP; ValPak; Pilot Media; Cox Communications Fall Homearama • Oct. 15-30 at The Riverfront at Harbour View, Suffolk • Attendance: nearly 80,000 guests • Nine showcase homes/seven sold before end of show • Homes from 2,800 to 4,000 sf/$550,000 to $750,000 • Sponsors: TowneBank; City of Suffolk; Sentara; HomeTalk.com, Nansemond PreCast Concrete; Columbia Gas of Virginia; Harrison’s Moving & Storage; Dominion Virginia Power; River Stone Chophouse; Tysinger Automotive, Pilot Media, Hampton Roads Magazine, WAVY-TV, ValPak, RSVP Publications; Suffolk Living

Public Relations

Hampton Roads Show host Chris Reckling interviews Homearama builder Charlie Anderson, right.

The Public Relations and Production Division supports all aspects of TBA’s goals and initiatives with editorial, design, photography, technical and public relations services. During 2011, the division provided:

Media relations/promotions TBA worked with local print, broadcast, direct mail and other media to promote the “buy now” message and to attract attendance at major consumer events, including: • Spring Homearama/Fall Homearama media relations • Mid-Atlantic Home & Flower Show media relations • TBA press releases/responds to queries Member communications Helped keep members informed of industry news and association events: • Six issues of Tidewater Builder magazine • Bi-weekly, digital eBUILDER • TBA website updates • TBA Facebook/Twitter • Member eblasts

2 011 A N N U A L R E V I E W

Consumer Events

Consumer communications Promoted the message that now is a great time to buy a new home with tools targeted toward consumers, including: • Monthly TBA column in The Virginian-Pilot Home section • Spring Homearama/Fall Homearama Plan Book • Spring Homearama/Fall Homearama website • Homearama/Home Show Facebook pages • Mid-Atlantic Home & Flower Show website • Compilation of consumer e-database • Quarterly enewsletter to consumers Marketing support Designed and distributed materials to help assure the success of TBA’s for-profit and non-profit ventures, including: • Sales collateral brochures • Membership mailings, emails • BIIA direct mail, email campaign, website 56=,4),9 +,*,4),9

The Political Action Committee nixed the annual PAC Golf Tournament in favor of a Fall Oyster Roast, designed to be an annual mix and mingle with legislators as well as a fundraiser.

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TBA’s Builder Services division brings builders together to discuss current issues affecting their livelihood, including federal, state and local governments and training opportunities. Highlights of 2011 include:

Builder Services • Individual assistance with regulatory and logistical issues for TBA members • Legislative updates in biweekly eBUILDER • TBA Political Action Committee interviewed and endorsed candidates in Portsmouth and Virginia Beach’s City Council special elections • PAC committee interviewed and endorsed candidates in all contested races of state senators and delegates Municipal Affairs Committees TBA’s municipal affairs committees and TBA staff met regularly with city staff and leadership to address mutual areas of concern, which included the following issues during 2011: Chesapeake • Chair Erin Widener-Speckhart • Co-vice chairs Greg Dodd and Doug Smith • Revisions to rules governing reconstruction of lawfully non-conforming buildings damaged to an extent exceeding 50 percent of value • The Comprehensive Plan • Mobile Home Displacement Policy • Proposed residential design guidelines Virginia Beach • Chair John Ainslie • Vice chair Lucky Peterson • New green regulations from Green Ribbon Implementation Committee • The Public Works Public Facilities Manual • New Accela Permitting Software (now accepting credit cards at the counter or over the phone.) 56=,4),9 +,*,4),9

Suffolk • Chair Tuck Bowie • Vice chair Reese Smith • Update of Unified Development Ordinance (UDO), including dimensional standards and categories • Changes to the Planned Development, Traditional Neighborhood Development and Mixed-Use Development districts to eliminate the phasing of residential development per a required jobs-to-housing ratio • Draft Public Utilities Pro-Rata Policy • TBA request: Public Works engineering reviews are now charged an upfront flat fee for plan review Portsmouth • Chair Eric Sasser • Monitoring progress at regular meetings Norfolk • Chair Basil Kotarides • Represented the industry with Bon Secours Hampton Roads Health System’s new community program, Building Healthy Communities in East Ocean View.

Advocacy during 2011 General Assembly Session: • Legislative Committee Chair John Napolitano • Members: Sam Cohen, Dennis Graf, Steve Lawson, John Ainslie, Bill Halprin, Lucky Peterson and HBAV President Michael Newsome Soil and Water Conservation Board Balance: Business and local government now have a voice in adopting and administering new stormwater management policies. Temporary Proffer Payment Enforcement/Extension: “Temporarily” required delay of the payment of per lot cash proffers from before the issuance of building permit or earlier, until after final inspection by local building officials. Notice to Landowners: Requires the local zoning administrator to provide a property owner written notice within 10 days, should a request for a zoning determination be sought by anyone other than the property owner. Local Government Performance Agreements/Clarification: Clarifies that terms, conditions and specifications contained in any agreement, contract, performance agreement or similar document be limited to those items depicted or provided for in the approved plan, plat, permit application or similar document for which such performance guarantee is applicable. Local Bonding Moratorium/Deferral Option: Extended the validity of local government approved preliminary plans, final plans, special exception, conditional-use permit and rezoning actions that were valid on Jan. 1, 2009, until July 1, 2014, with House Bill 2411, which allows local governments to enact a bonding moratorium or deferral option on extended, but inactive development plans.

Local and regional issues: • Input to Virginia Code Officials Region 8 plans reviewers on a 1 and 2 Family Residential Plan Review Checklist to streamline the residential building plan review process. • Partnered with codes officials to bring Check Bajnai, Chesterfield County chief plan reviewer, and Brian Foley, Fairfax County chief structural engineer, to TBA for a wall-bracing seminar. • Ongoing efforts to bring sound science and practicality to the Virginia Watershed Implementation Plan submitted by the state to EPA. Thanks to leaders in our industry, the final WIP, which is Virginia’s plan to meet EPA’s new Chesapeake Bay Total Maximum Daily Load (TMDL), is as equitable and cost-efficient allocation of pollutant loads as possible. • Input to NAHB, EPA and U.S. Army Corp of Engineers on key elements of the draft federal guidance for reinterpreting the limits of federal authority to regulate development activities in areas located in or adjacent to “Waters of the U.S.” National legislative action • Visited with senators and congressmen at Spring Legislative Conference to advocate for housing and its critical role in a national economic recovery and opposed changes to the tax code that would increase taxes on homeowners, renters or home builders, such as curtailing or eliminating the mortgage interest deduction, the capital gains exclusion, the deduction for property taxes, the Low Income Housing Tax Credit and other housing tax incentives. • TBA President Bill Halprin and NAHB Build PAC trustee Vince Napolitano, met with Congressman Scott Rigell who signed onto the NAHB Home Construction Lending Regulatory Improvement Act of 2011.

Educational Programs

Instructor John Taylor joins RAM School dean Sharon Hamilton-Taylor in awarding 43 graduates their certificate at the TMHC Banquet.

TBA offers free and low-cost opportunities for members to stay current and to network with colleagues, including the programs:

Free Member Breakfast Forums • Senior Managing Director of Capital Markets at BB&T John B. Jung Jr. with an economic overview for 2011 • OSHA compliance officer Fredda Jernigan on fall hazards • OSHA compliance officer Rick Kennedy; Patty Letchworth of BIIA Insurance; Joe Pushak of Bonded Builders Warranty Group and Grig Scifres of Williams Mullen on reducing risks Seminars • National speaker Carol Flammer presented “Social Media for the Home Building Industry” • “Meet the Editor” featured The Virginian-Pilot Home section and Gracious Living editor Victoria Hecht • NAHB launched Webinar Wednesdays, one-hour weekly webinars on timely topics • TBA hosted free NAHB Construction Forecast Webinar

2 011 A N N U A L R E V I E W

Builder Services Division

Green Building Council • Understanding the ACCA Manual J • The Benefits of Insulated Concrete Forms • Lead Paint Abatement Tidewater Multifamily Housing Council • Registered in Apartment Management School with 43 graduates • Two Fair Housing seminars featuring Mally Dryden-Mason • Virginia Residential Landlord Tenant Act seminar featuring “Chip” Dicks • A series of HVAC workshops TBA PAC Chairman and past TBA President Vince Napolitano, left, and HBAV BUILD PAC trustee Richard Oliveri, right, hobnob with Lt. Gov. Bill Bolling at the Board of Directors meeting. Bolling spoke about job growth in the Commonwealth.

Remodelers Council • Energy-saving techniques • Lighting • Local code changes 56=,4),9 +,*,4),9

Building Trades Academy

2 011 A N N U A L R E V I E W

Member firms are helping to employ past BTA graduates like Carlos Wilson. He now works at Belmont at Greenbrier apartments.

Despite a financially challenging environment, TBA’s Building Trades Academy managed to provide students with the opportunity to gain instruction and hands-on training in apartment maintenance, carpentry, plumbing, electrical and HVAC.

The 2011 accomplishments included: • John Mack, who has spent his career working in youth development organizations, was appointed staff vice president. Since Mack’s arrival, BTA has made a paradigm shift. • By end of year, BTA will conclude the first Facilities Maintenance Apprenticeship class, which was developed and implemented through funding received by the Home Builders Institute from the Department of Labor. • Graduated four Pre-Apprenticeship classes, comprised of 86 students • Awarded $96,000 from the City of Virginia Beach to provide training to 27 of its residents • Awarded $64,000 from Opportunity Inc. to train 16 youths (ages 18-21) • Awarded $24,000 from the City of Suffolk to provide training to six of its residents • Awarded a Community Development Block Grant from the City of Chesapeake for $28,00 to provide training to seven Chesapeake residents • Awarded a Community Development Block Grant from the City of Norfolk for $23,468 to provide training to six Norfolk residents • Raised $19,500 through the annual TBA Charity Golf Tournament at Sewells Point Golf Course • Awarded $12,000 from the City of Chesapeake to provide training to three of its residents Want to contribute? • BTA is a 501-c3 entity that provides workforce education, training and employment services in facilities maintenance. If you would like to contribute, please contact John Mack at 305-3060 or jmack@tbaonline.org.

56=,4),9 +,*,4),9

TBA Scholarship Foundation

Past scholarship recipient and Charity House namesake Justin Kauflin entertained Homearama visitors with live jazz music.

Tidewater Builders Association’s Scholarship Foundation, chaired by Michael Newsome, continued its mission of giving.

Scholarships awarded • Almost 200 applications submitted • Nearly $70,000 in scholarship monies awarded at Awards Breakfast at the Greenbrier Country Club June 1 • Eight academic scholarships totaling $60,000 • Five Young Designers Competition scholarships totaling $5,750 • Ocean Lakes High School won $3,000 grant for the most entries • Hickory High School won $1,000 grant for the second-most entries • TBA continued scholarship funding for 30 past recipients during the 2011-12 academic year Scholarship House • Built by Clark Whitehill Enterprises at the 2011 Homearama Charity House, which sold during the event • Named for 2004 scholarship recipient Justin Kauflin, a blind jazz pianist who performed during the event Scholarship Foundation contributions • S.L. Nusbaum donated rental proceeds for the 2011 Tidewater Multifamily Housing Council Scholarship Apartment • Tidewater Multifamily Housing Council’s endowed scholarship is now $72,042 toward its $100,000 goal Did you know? • Since 1965, 424 students have received more than $1.66 million from the TBA Scholarship Foundation • The foundation is a 501-C3 charitable organization • You can mail your tax-deductible contribution to the TBA Scholarship Foundation, 2117 Smith Ave., Chesapeake, VA 23320

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TBA members are encouraging their vendors to get a quote from BIIA in a multi-faceted direct mail campaign.

BIIA Insurance is a wholly owned for-profit subsidiary of Tidewater Builders Association that provides non-dues income to support the work of the association on behalf of the industry. The company specializes in Workers Compensation and General Liability (GL) coverage for small businesses throughout Virginia.

During 2011, BIIA Insurance: • Introduced a no deductible GL policy • Added commercial auto coverage for clients • Expanded services to more business classes • Added small business clients outside of construction industry • Lowered premiums to be more competitive • Increased agent commissions • Introduced new website, www.biiainsurance.com • Added an online bill pay option • Online claims reporting 24/7 • Provided online safety training in English and Spanish • Continued personalized OSHA training for clients • Offered risk reduction services Even in the down economy, BIIA has been growing its client list with an aggressive marketing campaign directed at: • TBA members • Vendors of TBA members • Multifamily owners statewide • Insurance agents statewide • Northern Virginia Building Industry Association members • Fredericksburg Builders Association members

Think of us first for: • Competitive rates • Superior coverage • Excellent customer service Have your agent get a quote before you renew BIIA Insurance is endorsed by the Home Builders Association of Virginia.

2 011 A N N U A L R E V I E W

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To the following TBA members for your patronage: ABT Custom Homes Ainslie Group Bonded Builders Warranty Group Charlie Anderson Builder East West Realty H.D. Watson Builders J.F. Schoch Building Corp. Joey Corp. Les Ore Contruction Co. Inc. Lifestyle Homes LR Hill Custom Builders Murray Homes Inc. Napolitano Homes Norfolk Redevelopment & Housing Authority Oceanside Building LLC RML Corp. Roseland Properties Rose & Womble Realty Sadler Building Corp. Sasser Construction Simpson Builders Inc. TCI Inc. The Widener Corporation William E. Wood & Associates

Professional videos for: your website, your sales office, your event or‌

MEMBER

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Presenters at the 2011 Hampton Roads Residential Market Review at Old Dominion University’s E.V. Williams Center for Real Estate and Economic Development showed graphs and charts of indicators of the housing market over the years, including the dramatic effect of foreclosures on home prices and home sales.

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COUNT ON US 1,350 locations. All 50 states. 300 showrooms. 17,000 associates. 58 years in business.

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Nobody expects more from us than we do ® © 2011 Ferguson Enterprises, Inc. All rights reserved.

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he theme of the event was “Come out and play, come out and stay.” And they did. Perfect weather, beautiful landscaping and nine distinctive custom showcase homes brought nearly 80,000 visitors to Tidewater Builders Association’s Fall Homearama 2011 at The Riverfront at Harbour View in Suffolk. “It was perfect weather. It was a perfect show,” said vice chair Les Ore of Ore Builders. In addition to his Homearama home, Ore sold a second home from the show and was working on a third contract as well as “tons and tons of leads.” Ore says Homearama is a win-win for customers and builders. “You could never get out and meet that many people on your own.” “Everybody that I’m talking to says it was a great show,” agreed Homearama Chair Stephen Quick of Stephen Alexander Homes, whose company also has new business lined up as a result. “I have heard that other builders have build jobs from the show and a lot of leads,” he added. “Besides the homes, what people commented mostly on was that particular street where we had the show. It was one of the prettiest streets in all of Riverfront. ‘I would live in a place like this,’ they said.” “The response from the people who came out to Homearama was overwhelmingly positive,” said Mark Edwards, senior vice president of sales for East West Communities, developer of the site. “Six of the nine Homearama homes are sold, and one more Homearama home has a contingent contract.”

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Edwards added, “We are very pleased with the sales results from the show to say the least. Several of the Homearama model homes have two contracts working at the same time. In the past 30 days, our REALTORS® have written four additional contracts on homes in The Riverfront, with several other buyers working on building packages for new homes with our featured builders. “Several sales are also taking place at the Gables, the condominium neighborhood by Terry Peterson near where Homearama was held,” added Edwards. “Even our Founders Pointe community has seen an increase in new homes sales activity as a result of Homearama.” ;OV\ZHUKZ VM ]PZP[VYZ ÅVJRLK [V /VTLHYHTH LHJO ^LLRLUK [V ZLL [OL OVTLZ /LYL [OL` LU[LY [OL *OHYP[` /V\ZL MV`LY HUK THRL [OLPY ^H` [V [OL THZ[LY ILKYVVT 56=,4),9 +,*,4),9

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• First place: Tranquil Living: The Pilot Reader House, built by builders Stephen, Steve and Alex Quick of Stephen Alexander Homes. • Second place: The Justin Kauflin House: The Charity House to benefit Tidewater Builders Association’ Scholarship Foundation, built by Michael Newsome and Lee Ward of Clark Whitehill Enterprises. • Third place: Tribute to the City of Suffolk: The 19th Hole built by Les Ore of Les Ore Construction Co. Inc.

Interior Design

• First place: Tribute to the City of Suffolk: The 19th Hole by Les Ore of Les Ore Construction Co. Inc., with interior design by Cathy Tellefson of Complete Interiors and furniture from Schewel Furniture Co. Inc., The Ark Outlet and Built-to-Last. • Second place: Tranquil Living: The Pilot Reader House, built by builders Stephen, Steve and Alex Quick of Stephen Alexander Homes, with interior design by Sharon Goodwin of Goodwin Interiors and furnishings by La-Z-Boy Furniture Galleries. • Third place: The Justin Kauflin House by Clark Whitehill Enterprises, built by Michael Newsome and Lee Ward of Clark Whitehill Enterprises, with interior design by Rich Kahler and Trinity Scott of Exotic Home and Kathy Browning of Design Consultants, and furnishings from Exotic Home.

Favorite Landscape

• First place: Get Pink with Sentara: The Breast Cancer Awareness House by builder Chip Iuliano ABT Custom Homes with landscape design by Robert Askew of R.W. Askew Nurseries Inc. • Second place: Tee Time by builder Chip Iuliano ABT Custom Homes with landscape design by Tom Rozier of Dreamscape Designers. • Third place: King’s Cottage by builder Charlie Anderson of Charlie Anderson General Contractor Building Inc., with landscape design by Eddie Gosman of Edward Gosman and Associates.

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mployers often seek to bar employees from competing with the employer after termination of employment (whether voluntary or involuntary). Typically, this is accomplished by having a non-compete provision included in an employment agreement or by having a separate non-compete agreement. Over the last decade or so, the Virginia Supreme Court has ruled on a variety of non-compete provisions. Although Virginia law is less receptive to enforcing these provisions than the law in other states, Virginia courts will enforce such provisions if the provision is “narrowly drawn to protect the employer’s legitimate business interest,

is not unduly burdensome on the employee’s ability to earn a living, and is not against public policy.” Courts consider the duration, geographic scope and function of the noncompetition restriction when evaluating whether it is enforceable. As the law has evolved, the Virginia Supreme Court has continued to narrow the scope of non-compete provisions that are enforceable under Virginia law.

Case in point

In a case that was decided in early November, 2011, the Virginia Supreme Court considered whether a non-compete was enforceable when it prohibited the employee from directly or indirectly

THE BUILDERS CHOICE

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engaging, or concerning himself in any manner whatsoever in pest control as an owner, agent, servant, representative or employee, and/or as a member of a partnership and/or an officer, director or stockholder of any corporation or in any manner whatsoever. Although the geographic scope (the cities within which the employer or employee did business) and the duration (two years after termination of employment) were sufficiently narrow and thus enforceable, the court determined that the function language of the provision was so broad that it was unenforceable. The Virginia Supreme Court has been consistent in holding provisions unenforceable that are broader than the scope of the former employee’s employment activities or that are considerably broader than the employer’s business activity. Blanket prohibitions against working for a competitor that are not tailored to the functions performed by the employee run the risk of being deemed unenforceable by Virginia courts. Although non-compete provisions that prohibit an employee from engaging in activities that actually or potentially compete with the employer may be enforceable, when the employer seeks to prohibit the employee from working for its competitors in any capacity then the employer has the burden of proving a legitimate business interest for doing so. Quite often it will be very difficult for an employer to prove that it has a legitimate business interest that supports a very broad prohibition. Prohibiting an employee from engaging in all reasonably conceivable activities for a competitor is likely to be deemed unenforceable even if the activities that the former employee actually performs are identical to the ones being performed for the competitor. The point

is that if the non-compete provision is broadly worded then it runs the risk of being held unenforceable even if the employee is performing the same job functions for a competitor. Employers have a legitimate business interest in protecting their business from a misuse of proprietary information by employees when they go to work for a competitor. However, the non-compete provision must be narrowly worded so that the geographic area covered by the restriction, the time period of the restriction and the functions that are restricted have a direct relationship to the duties actually performed by the employee. Provisions that essentially prohibit the employee from working in the same line of business are likely to be held unenforceable. It’s advisable to have the language of your non-compete provisions reviewed by a capable employment lawyer. C. Grigsby Scifres, a partner in the Virginia Beach office of the law firm of Williams Mullen, is Tidewater Builders Association’s general counsel. This column features legal issues of interest to TBA’s members. For more information, contact Scifres at 757.473.5370 or at gscifres@williamsmullen.com.

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*SV\K HSSV^Z I\ZPULZZLZ [V VWLYH[L TVYL LMÄJPLU[S` Builders today are ideally positioned to reap the benefits of Cloud technology. Live coordination and tracking of labor, materials and vendors are now a reality. The Cloud can also provide rapid deployment of IT infrastructure and remote monitoring of on-site surveillance systems. Because your data always resides in the Cloud, laptops and field devices that are damaged or stolen will no longer present security risks.

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What is the Cloud?

If you use the Internet, have email, perform web searches or use online forums, you have taken advantage of Cloud technology. Cloud computing is a delivery mechanism for providing virtual services that can be accessed from almost anywhere. It enables your business to achieve objectives that in the past were

limited by technology.

Financial benefits of Cloud

Historically, builders have had to buy and own costly hardware to handle their computing needs per site office. Adding more resources and capabilities required additional purchases. However, this is no longer necessary. The Cloud enables deployment of computing resources without incurring major capital expenditures. Leasing of IT resources makes financial sense and eases the monetary burden. The Cloud changes construction IT into an affordable pay-as-you-go solution. Predicting and budgeting the costs of IT has always been hard. How can the Cloud help construction company owners gain control? Everything you need from equipment, software, connectivity, maintenance and data protection can be combined into a single monthly payment.

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Budgeting IT costs suddenly becomes realistic and easy to manage.

Field benefits of Cloud

Imagine if field employees could access company data while away from the office? With Cloud, it’s possible. And with the additional flexibility comes the following benefits: • Flexibility to utilize core business services on a laptop, smart phone or tablet • Verify in video form a project’s completion • Live monitoring of punch lists • Ease of access through different devices makes Cloud computing uniquely flexible. • No longer are we confined to the office. The Cloud now allows you the freedom to choose how you work.

The technology landscape is rapidly evolving. Major vendors such as Cisco, HP, Microsoft, IBM and Intel see the marketplace already implementing Cloud solutions. Even Wall Street is making the transition to the Cloud. The industry is forecasting a 75 percent market penetration by Cloud solutions in the next three years. Cloud computing will be as influential as E-business and “has the potential to change the status quo in the IT market,� according to Industry analyst Gartner. To help you understand Cloud computing, NetTek, a local solutions provider with 20 years of experience, is offering Tidewater Builders Association members a free educational presentation in the first quarter of 2012 at TBA. To find out more about the Cloud and this upcoming event, please visit www.nettek.com. For more information on Cloud computing, contact Sean Bowers at (757) 321-4000 or sbowers@nettek.com.

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Over the years, we have designed hundreds of homes — and we have learned so many things about residential design that we could write a book … or an article.

Obtain a site first before planning your home

So many clients come to us with a plan in mind, yet when we ask them about the site, they state that they don’t have one yet. Before you design the home, you must know the importance of understanding your site. One should walk the site, be on it at different times of the day, search for views from the site, determine the sun path, and even get up on a ladder to see what kind of views you will have. Don’t even think about designing a home before site selection is completed or you’ll miss out on all of the reasons you selected the site in the first place.

Floor plan

Don’t get married to a floor plan early on either. We have seen so many people come in with a plan that they created or

obtained from a plans website and after some basic questions, they realize that the plan will not achieve their dream home. When you start the process, understand what rooms are desired in the house and their relationship to each other, but don’t go any further. Meet with your architect and let him take this information and work with him through sketches to develop a plan concept.

Champagne tastes on a beer budget Don’t expect to build a home at $70 per square foot and get high-end finishes. Actually, don’t expect to build a home for under $100 per square foot. Period. We have had so many people come in and expect to construct a home for costs that we haven’t seen since the 1970’s. If you are a builder, be up front with your clients about costs. Time and time again, we have to help our clients create a realistic budget and create a program that works within that budget.

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Scope creep

The dreaded square foot increase through a project. We have all seen it. We start with a basic plan and then it starts to grow… and grow… and grow… then you get to pricing and the project is over budget. It’s our job as professionals to not let this to occur. Or if it is to occur, that the cost ramifications are made known in real time. A technique to prevent this is to allow the client to control the size of their home. Does this sound crazy? No. Give them a basic program in excel and have them create the home of their dreams. At least once a week, we have someone come into the office and say that they want a 3,000-square-foot house. Our first question to them is how do they know that is the size they need? The easiest way to avoid scope creep is to have the client create the program, measure spaces of their present living conditions and verify that they understand the basic blueprint for their new home.

Help your clients understand the design

Over the years we have seen clients go glassy eyed when looking at floor plans. Floor plans do not create a home!!! Help your clients get past the floor plan. With all of the 3D capabilities of today’s software, the floor plan should be relegated to the final construction documents. Ninety-five percent of people building a home don’t under-

stand floor plans, sizes and dimensions on floor plans. Create a 3D walk through for your clients to help them visualize the home. Use a tape measure and show them sizes of room and relationships. Show them the difference between nine-foot ceilings and 10-foot ceilings. Use photographs, sketches, or whatever medium it takes so that your client fully understands their design. If you achieve this during the design process, the building process will go much more smoothly.

Building and the status quo

Don’t be afraid to use new technologies in your homes. Ask yourself this question. Why have you always done crawl spaces that are vented? What is the reasoning for it? Why would you not want to seal the perimeter of the home and provide air into the crawl space? Look at all of the new green technologies that can reduce operating costs. Why is the ductwork taped? Why not use mastics that will seal joints more securely? Ask your architect about technologies they are using or learning about. After all, the only way we can improve our built environment is to throw out the status quo and improve our construction methods. Tom Retnauer is a founding principal of Retnauer Baynes Associates, PC, an award-winning firm based in Chesapeake. Retnauer is a member of the AIA Hampton Roads Chapter and a graduate of Virginia Tech. He can be contacted at (757) 546-2471 or tom@rdapc.com.

How to Participate Step 1 Visit WarmWiseVA.com and click on Residential Rebates to review qualifying furnaces and water heaters. Step 2 Purchase and install qualifying equipment. Step 3 Complete and submit your Residential Savings Application to receive your rebate(s).

Visit WarmWiseVA.com for more information.

Cash Rebates for Home Builders Through Columbia Gas of Virginia’s WarmWise program, builders of new homes, condos and apartments can receive a cash rebate of up to $300 for each qualifying energy efficient natural gas installation! For new construction projects, rebates are available for qualifying furnaces and hot water heaters. 56=,4),9 +,*,4),9

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LȣɄɉ PǸȵȰ Pilot publisher nominated for HUD post

President Barack Obama nominated Maurice A. Jones, publisher of The Virgin1VULZ ian-Pilot, to become deputy secretary of the Department of Housing and Urban Development. If confirmed, Jones will succeed Ronald C. Sims. Jones has served as president and publisher of Pilot Media since 2008 and before that served as vice president of the Landmark Publishing Group. In addition, he has held numerous political positions such as Deputy Chief of Staff to former Gov. Mark Warner, Commissioner for the Virginia Department of Social Services, and during the Clinton Administration served as Legal Counsel, Deputy Director for Policy and Programs, and Director of the Community Development Financial Institutions Fund at the Department of the Treasury.

MSA P.C. regains veteranowned small business status

MSA P.C. recently regained its status as a Veteran-Owned Small Business with the United States Small Business Administration. “MSA’s veteran and civilian owners are the same as always,” president and Vietnam veteran Robert S. Miller III, P.E. said. “A change in MSA’s volume of business allows us to re-qualify as a Veteran-Owned Small Business. This is very exciting because we are continuing 38 years of service to our clients, and now we can help them meet federal contracting goals.” MSA has completed more than 300 federal government projects since the early 1980s. MSA P.C. is a regional consulting firm headquartered in Virginia Beach.

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Members to be honored at Women in Business function

Congratulations to TBA members Shirley Sasser of TowneBank, Amma Guerrier of Monarch Bank and Alanna Deal of The Breeden Co. The women are among those being honored at the 9th annual Inside Business’ Women in Business awards ceremo0$B ; $GVB /D\RXW 30 3DJH 0$B ; $GVB /D\RXW 30 3DJH ny from 6-8:30 p.m. on Thursday, Dec. 15, at the Norfolk Waterside Marriott, 235 E. 0$B ; $GVB /D\RXW 30 3DJH Main St., Norfolk. Tickets cost $55 per person. To register or for information, visit www.insidebiz.com. National Association of Home Builders National Association of Home Builders National Association of Home Builders

Put your membership Put your to work now. membership Put your membership to work now. to work now. Money-saving discounts that

Money-saving that benefit your business, discounts your Money-saving discounts that benefitand your business, your employees, your family benefit your business, your employees, and your family Visit employees, and your family Visit www.nahb.org/ma Visit www.nahb.org/ma for these and other participating www.nahb.org/ma for these and other participating companies. for these and other participating companies. companies.

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Shawn Lemke of Beach Ground Works Inc.

“It’s not just for builders!” BIIA Insurance specializes in helping small businesses. You may know Shawn and Ashley Lemke from their award-winning landscapes. One of their backyard ponds was profiled in The Virginian-Pilot’s Gracious Living section. The proprietors of Beach Ground Works Inc. of Virginia Beach turned to BIIA Insurance for their Workers Compensation coverage three years ago at the suggestion of their Nationwide Insurance agent. Besides themselves, the couple employs another three to five people to help with all kinds of outdoor landscape construction – from retaining walls to water features. They’ve taken advantage of the on-the-job safety training offered by BIIA and they feel good about being prepared for the worst. “They gave us the literature and the forms that we need in our files to reduce our risk if anything should ever happen,” said Ashley. :H NQRZ WKH EXVLQHVV 7KLQN RI XV ÀUVW BIIA offers competitive rates, excellent customer service, and free assistance with OSHA safety training, safety policies and risk management – all designed to help your business thrive.

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You save at The Discount King and they get a fancy new kitchen.

Sales professionals Ed DeVries and Tom Huxtable.

Top name appliances at unbeatable prices. It’s how savvy builders impress their clients and save money at the same time.

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eastcoastappliance.com

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