Building Savvy December 2020

December 2020

SAVVY

SPECIAL

REPORT

2018 I-Codes Now Ratified Across Texas

Local Legend

Don Craighead Sets the Standard for Custom Home Excellence

Last Minute

TAX TIPS

That Could Help You

Finish

STRONG

a Tough Year 1

in

2

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Building Savvy

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Building Materials BMC Building Materials 512.977.7400 Guido Companies www.buildwithbmc.com 210.344.8321

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Doors Doors The Front Door Company The Front Door Company 210.340.3141 210.340.3141 www.thefrontdoorco.com

Flooring Fireplace Installations Sunn Carpets and Flooring Integrity Fireplace Installations 210.349.7866 210.294.1383 www.sunncarpets.com

Electrician Drywall JPI Electric R. Hernandez Drywall 210.233.6638 210.733.6437 www.jpielectric.com

Flooring Doors Garage Hollywood-Crawford Sunn Carpets and Flooring 210.494.3434 210.349.7866 www.hollywoodcrawford.com www.sunncarpets.com

Elevators Electrician Home Elevator of Texas JPI Electric 210.340.5702 210.233.6638 www.homeelevator.com

Home Warranties Garage Doors Centricity Hollywood-Crawford 727.385.7599

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Home Warranties Insurance StrucSure Insurance Hotchkiss 210.581.0420 830-624-4450 www.hiallc.com www.strucsure.com

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Plumbing Diamond Plumbing Pest Control 210.967.6100 Accurate Pest Control www.dptexas.com 210.495.0499

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Kendall County Roofing 830.331.2650 Plumbing www.kendallcountyroofing.com Diamond Plumbing 210.967.6100

Specialty Electronics and Appliances HomeWerks Dr. J. Plumbing Contractor 210.499.5760 210.681.7555 www.sanantoniocentralvac.com www.dptexas.com

Specialty Glass and Mirror Roofer

Lumber and Millwork Insulation Roddis Lumber Klar Insulation 210.226.1426 210.296.5499 www.roddislumber.com

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Title Company 817.918.2323 HomeWerks

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Luxury Iron Doors and Interiors SolarinEnergy DISCLAIMER: Any articles included this publication and/or opinions

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expressed therein do not necessarily re ect the views of N2 Publishing but

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Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher

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4 4

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Totally Connected 6

[from the publisher]

Finish Strong in a Tough Year Borrowing the headline from this month’s Focus Section, I

standards. Make some adjustments in your customer

commend our local industry for its remarkable comeback.

service aftercare with the goal of building loyalty so

We have pressed on and capitalized on pent-up demand

strong that you put yourself in a position like some of

to make up for missed sales during what would have

the automotive manufacturers—where loyal clientele will

normally been our peak activity period in a normal

upgrade to your newest product instead of shopping the

year. Many builders are reporting meeting the business

competition— when they are ready to upsize or downsize

projections they made this time last year when we didn’t

or move to a new neighborhood.

have a clue of what we would face in 2020.

This December, take some time to reflect on what needs to change in your 2021

I wish all of you the happiest of holidays. Stay safe!

business plan. Be on the forefront in planning spaces for the new normal of working and schooling from home. Wow, people with your emphasis on outdoor living spaces and your expertise on anti-bacterial surfaces and superior indoor

Terry Kemmy

air quality. The municipalities that you build in may have already adopted some

Publisher

of the 2018 IRC codes, but even if they haven’t, start adapting to meet the higher

210.844.1542

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[industry news]

•

Help Your New

Ensure you are keeping out outside air and moisture. Insulate walls and attics, caulk and weather-strip doors and windows, and install storm windows if you are in a high wind or

HOMEOWNERS Prepare for the Winter

hurricane zone. We don’t see a lot of severe weather in the greater San Antonio area, but after all the rain we have had, you need to do a quick check-up on your home.

•

Clear rain gutters don’t fill with water that could freeze and damage the roof due to the added weight.

•

Trim tree branches that could potentially fall on your home during a storm. Hiring a professional is strongly advised, especially if any branches are near power lines.

C

older temperatures can take a big toll on

•

your home. Severe winter storms can also

inspected every year. Ensure there are no openings in the

knock out heat, power, and other services to your

chimney bricks or mortar or flashing.

home. That’s why it’s important to take a few

•

steps now to prepare your home for the changing

•

(FEMA) to help you make sure your home is the best shelter possible for

•

you and your family during the colder months ahead.

1

10/27/20

Ensure all your fuel-burning equipment vents to the outside, and the vent openings are clear of debris.

Here are some tips from the Federal Emergency Management Agency

StrucSure_BuildingSavvy_Dec2020.pdf

Insulate water pipes with foam wrap or similar products to help prevent them from freezing.

weather ahead.

By Bryan Smith

Have your heating equipment and chimney cleaned and

Learn how to shut off your main water valve in case your pipes do freeze and burst.

5:21 PM

•

Hire a contractor to check your roof’s structural integrity to sustain the weight of water (or snow) this winter.

Important Safety Tips During the winter, many people use alternate heating and power sources. Failing to take the necessary safety precautions can increase the risk of electric shock, house fire, or carbon monoxide poisoning: •

Keep fire extinguishers around the home, and make sure all family members know how to use them. The kitchen is a great place to have a fire extinguisher.

C

•

M

Y

MY

CY

CMY

K

Never use a generator, grill, camp stove, or other gasoline, propane, natural gas, or charcoal-burning device inside your home, garage,

CM

basement, crawl space, or any partially enclosed area. And do not

As 2020 comes to a close, I want to thank the Texas builders who trusted StrucSure with their warranty and risk management needs during this challenging year. We wish you a Blessed & Merry Christmas and look forward to working side-by-side in 2021!

place the unit near a door, window, or vent where carbon monoxide

HOW THE NATION’S BEST BUILDERS PROTECT THEIR BUYERS

could seep indoors.

MIRROR IMAGING OF TAB PERFORMANCE STANDARDS

•

SOIL MOVEMENT AND SETTLEMENT COVERAGE FAST AND FAIR CLAIMS MANAGEMENT

Space heaters should be placed on a level surface and away from heavy foot traffic when in use, especially if pets or small children

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are nearby. It’s best to have space heaters that automatically turn off when a room reaches the desired temperature, or in the event

SCOTT WHISENANT Vice President of Sales, Central & Southwest Texas (830) 624-4450 swhisenant@strucsure.com www.strucsure.com

it tips over.

To learn more about routine maintenance, energy efficiency, safety, and other tips to protect and properly care for your home in cold conditions,

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contact a Greater San Antonio Builders Association member.

8

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10

[focus section]

BLANCO’s patented SILGRANIT kitchen sink material reduces bacterial growth by up to 98% and its Senso SOLENTA semi-pro faucet provides the ultimate hands-free experience by combining reliable materials with a sophisticated start-stop technology.

FINISH STRONG AFTER A TOUGH YEAR

By Beverly Smirnis

Don’t Overlook the Importance of Lighting for Ultimate Customer

should be used to balance the lighting scheme.

Satisfaction After the Sale

Most homebuyers tour the models during the day time or view day

All buyers appreciate natural light, so first and foremost, your home

time online tours. But what about nighttime? Does the home still hold

designs should capture daylight to supplement electric light. It is

the same beauty and functionality when there is no natural light?

helpful to carefully consider your target market or make sure your

Luminosity is a virtual 2D & 3D lighting tool that can help you show

lighting plan is adaptable if you are targeting a broader range of

and sell lighting options. Eliminating guesswork, customers can see

potential buyers.

what their space will look like with various lighting, electrical, and home technology packages. Luminosity provides pre-planned, cutting-

For example, Progress Lighting says it is essential to consider

edge lighting design concepts built right into your design tool, where

that seniors need about 75% more light than the average 25-year-

customers can make selections and design choices at the click of a

old. As our eyes age, it is easier to perceive cooler, brighter

mouse.

colors than warmer ones because our eyes cannot absorb as

Be Ahead of the Curve on Covid-Influenced Priorities

much light.

After the toilet paper shortage and the fact that so many people have LEDs are available in specific color temperatures with warmer ranges

traveled to places where bidets are commonplace, more buyers ask

indicated by a 2700K – 3000K bulb and 4000K and higher for cooler

for them. Less travel has meant that outdoor spaces have taken on

colors. Within the bulb itself, LED lights and new LED technology is

greater significance with an emphasis on privacy. More cooking at

now available that offers color-changing abilities. This technology

home means more interest in commercial-style ranges and combo

enables precise control of color temperatures to a color that works

ovens. With more millennials ready to buy, approximately 73% of

best for the individual and space. If you’re using brighter lights, your

them say they are willing to pay more for sustainable home products

light fixtures should have adequate shades, diffusers, or concealed

and energy-saving appliances, according to research by Whirlpool

light sources to prevent glare or too-bright light, and ambient lighting

Corporation.

11

Make The Home Work-Ready Rethink floorplans or staging to offer creative, flexible space with zones for working from home. Attic spaces under the roofline allow for future expansion. Parents who prefer the school work zones close to the kitchen may wish to turn a formal dining room into an office.

Faultless WiFi should already be something you are assuring in the smart home age. Be sure to place task, accent, and recessed lighting with adjustable illumination levels to provide supplemental lighting in specific reading or work areas. Include or allow as an option additional sound dampening materials for specifically designated work areas

Make Additional storage and organizing a priority.

In a space where work and play are one, and without compromising the open floorplans we continue to covet, it is essential to have a plan for reducing clutter. Design cabinets with designated cubbies and add organizers inside drawers to reduce misplaced items. Include a mudroom or locker area near the family’s primary entrance point

Sharp’s patented Plasmacluster Ion air purification technology mimics nature’s own cleaning process, by splitting water molecules into positively and negatively charged ions, which spread throughout the room and actively break down pollutants like germs, airborne and surface-adhering bacteria, fungus, mold, viruses and clinging odors, and then return to the air as water vapor.

with open storage for quick access to items used daily and integrated seating, providing a place for putting on or taking off shoes, as well as additional storage.

Serve the Germaphobes.

Food safe and easy-to-clean surfaces that reduce bacterial growth, as well as hands-free solutions for faucets, will help future-proof kitchen design by adding features that enhance wellness while still looking contemporary as well as beautiful. Non-porous quartz is naturally resistant to mold, bacteria, and mildew and thus a good countertop choice for the germaphobe. Luxury vinyl tile can offer the look of traditional hardwood while providing an antimicrobial surface that can be safely cleaned with bleach and disinfectants.

Watch the trend in developing residential HVAC equipment that better prevents pathogens like viruses, bacteria, and other airborne contaminants from re-circulating and being transferred between rooms. For example, Napoleon® gas furnaces with Phillips UV-C

Since Studio Shed formed in 2008 in Boulder, CO, it has built, delivered, and enhanced more than 4,000 backyards across North America and beyond. It aligns with Marvin windows on many of them. Clients have used their sheds for home offices, as hobby studios, pool houses, guest houses and granny flats.

technology are the same as those used in hospitals to quickly kill all viruses and pathogens.

There’s much more that will be introduced into our homes from the medical community. Existing ductwork can safety be fogged with Envirocon, a chlorine dioxide that kills mold and fungus spores, bacteria, viruses, and odors. Commonly used in hospitals to clean equipment and tools, Envirocon is safe for humans to breathe and leaves surfaces clean with virtually no residue, and will not stain or discolor surfaces. It is EPA approved to be sprayed in air duct systems with occupants present.

Rev-A-Shelf’s natural maple pullouts are designed specifically for cookware storage and organization. The company also makes bathroom cabinetry with built in organizers and in-drawer power outlets.

12

The Broan SurfaceShield lighting fixture features Vital Vio technology

Napoleon® furnaces with HOMESHIELDTM produce super powerful

and an exhaust fan for bathroom applications. Use the energy-saving

Germicidal UV-C light that breaks down DNA, damaging and killing

soft, white LED lighting mode for everyday task lighting. When you aren’t

viruses and bacteria.

using the room, turn on SurfaceShield™ continuous microbial mode for uninterrupted cleaning plus a beautiful violet hue. Broan says round-theThe Bottom Line: Buying demand is strong, and priorities in what

clock use costs less than $4 a year.

people want in their homes has changed. An ability to show a keen understanding of the wants and needs across a broad range of buyer profiles will set savvy builders and remodelers apart from the competition. And, impressed with your thought process and creative design solutions, your satisfied customers will tell others, assuring your continued success in the face of any market fluctuation that may come our way next

Beverly Smirnis is the co-founder of Building Savvy magazine and publishes its flagship Dallas/Fort Worth edition. She and her business partner and husband, Steve Smirnis, have served as judges for the International Builders’ Show Best of IBS Awards and judged numerous homes for

By Beverly Smirnis

Solid core interior doors like those from Masonite provide more serenity than hollow core doors.

13

builders association parade events across the country.

[Legal Corner]

By Gary W. Javore

Mounting

Subcontracts should bind the subcontractor to the contractor, the same way the contractor is bound to the owner. Subcontracts should obligate the trade to construct the home to the same standards that the contractor has obligated itself to the owner. Subcontracts

a Defense Under the

should obligate the trade to have a general liability insurance policy with limits comparable to the contractor’s general liability policy and require that the contractor be listed as an additional insured and

Residential Construction

waive subrogation rights. The subcontractor’s insurance should be primary, with the contractor’s insurance being secondary and non-

Liability Act

contributing. The subcontract should obligate the subcontractor to indemnify the contractor for any claims arising out of the subcontractor’s work.

Finally, the subcontract should include a

dispute resolution process that mirrors the contract’s provision between the owner and contractor. It is imperative for the contractor to have all parties in the same forum.

Mounting a successful defense under the Residential Construction Liability Act (“RCLA”), starts with contracts.

The RCLA requires Owners to provide written notice to a contractor,

For purposes of this

describing in reasonable detail the construction defect for which they

discussion, the contract with the Owner/Purchaser should include: (1)

are complaining. Tex. Prop. Code §27.004(a). Contractors should

The standards to which the contractor is constructing the residence; (2) a

insist on clarity.

dispute resolution process such as arbitration; (3) a provision that permits

Even TREC Inspector Reports frequently include

ambiguous language. For example, “There are cracks in one or more

the contractor to buy the house back (if the home was constructed on the

of the visible floor surfaces; there are cracks in the floor tiles; there is

contractor’s lot and if the cost of repair exceeds a certain percentage of

separation between the masonry and the trim at one or more areas”

the value of the house without the construction defect); and (4) The RCLA

These descriptions are deficient in that they fail to identify the location

disclosure required by Tex. Prop. Code §27.007.

of such alleged defects. A contractor must request an inspection in

14

writing within thirty-five days of receipt of a demand. Tex. Prop. Code

out while repairs are made, an offer to reimburse them for temporary

§27.004(a). However, if the notice letter is ambiguous, it is best to

housing.

combine the request for inspection with a request for clarification.

of settlement, it will come down to whether the offer is considered

For example:

reasonable . Tex. Prop. Code §27.004(f). However, if an owner refuses

Tex. Prop. Code §27.004(g). If the owner refuses an offer

an unconditional offer of mitigation, that sets up a critical defense for

We believe your notice letter is deficient in that it fails to describe

the contractor.

the construction defects in reasonable detail. Attached hereto is our request for clarification. Once you have made those clarifications, then,

Tex. Property Code Sec. 27.003. provides in pertinent part:

pursuant to the provisions of Chapter 27 of the Texas Property Code, we

(a) In an action to recover damages or other relief arising from a

hereby request an opportunity to inspect the residence for the purpose

construction defect: (1) a contractor is not liable for any percentage of

of evaluating any proposal for settlement. In addition, we would request

damages caused by:

any evidence that depicts the nature and cause of the defect and extent of the repairs necessary to remedy the defect, including expert reports,

(b) failure of a person other than the contractor or an agent, employee, or

photographs, and videotapes.

subcontractor of the contractor to: (1) take reasonable action to mitigate

Once a demand is received (or revised demand if clarification is

the damages

requested), the contractor needs to identify each subcontractor that

In addition, the more repairs a contractor can successfully complete,

may have responsibility for the claim and place them and their insurance

the fewer issues remain in dispute for arbitration.

carriers on notice of the claim (including a copy of the demand and any

Under the right circumstances, if the contractor has included a provision

reports furnished by the owner). In order for the carriers to have enough

in its contract giving it the right to repurchase the house, it may want

time to schedule an independent adjustor, contractors should endeavor

to make an offer to repurchase the home (in compliance with the

to provide at least two weeks advance notice of any inspection. At

requirements of Tex. Prop. Code §27.0042) as such an offer is deemed

the time of the inspection, trades should be advised not to talk to the

reasonable absent clear and convincing evidence to the contrary. Tex.

owners. Each trade should report back to the contractor with what, if

Prop. Code §27.0042(d).

any, repairs are necessary to correct their work, describing the repairs in reasonable detail. If no repairs are required, they should explain why.

The owner has twenty-five days to accept the offer or explain why the

Alleged deficiencies should be measured against Code requirements

offer is unreasonable. Tex. Prop. Code §27.004(b)(1). If the owner

and any performance standards provided to the owner as a part of the

objects to the offer as being unreasonable, the contractor has ten days

limited warranty.

within which to supplement its offers. Tex. Prop. Code §27.004(b)(2).

If the owner’s rejection has a reasonable basis, the contractor should

Within 45 days of receipt of the demand, the contractor needs to

supplement its offer, addressing the issues raised in the owner’s

make an offer of settlement. Tex. Prop. Code §27.004(b). The offer

rejection.

must describe the repairs in reasonable detail. Contractors would be well-advised to make two offers: (1) an offer of settlement and (2) an

If a contractor follows these steps, it will have established key defenses

unconditional offer of mitigation. Both contain an offer of repairs, but the

for any subsequent arbitration and may also entitle it to a defense under

settlement offer will include an offer of attorney’s fees, reimbursement

the additional insured provisions in its subcontractor’s general liability

for consulting fees, and if the repairs will require the owner(s) to move

policies

About the Author Gary Javore is a principal of Johnson, Christopher, Javore & Cochran, Inc. and has been actively involved in construction litigation since 1981. He has been a frequent speaker for the Construction Law Section of the San Antonio Bar Association and Texas Bar Association. Gary writes construction contracts for owners and contractors and is the principal author of Construction Contracts and the Law published by the National Association of Home Builders. He serves as general counsel for the Greater San Antonio Builders Association. He has mediated over 500 cases and has been appointed as an arbitrator in over 250 cases. He has been selected by his peers for inclusion in “The Best Lawyers in America” for mediation and arbitration for the past 12 years, was selected as the Mediation Lawyer of the Year for San Antonio in 2015 and 2018 and as the Arbitration Lawyer of the Year for San Antonio for 2017. He sits on the construction/commercial and consumer law panels for the American Arbitration Association, Conflict Solutions of Texas, and the International Institute for Conflict Prevention & Resolution.

15

[savvy builder]

Don Craighead Custom Homes Third Generation Builder Still Has a Fire in His Belly The Hartman Home, Horseshoe Bay

an Antonio has its share

But rarely do you find a family that has consistently created high-end custom homes for folks in

of excellent home builders

South Texas for more than three generations. Rarely do you find a family in any industry for that

and craftsmen, and it is

matter that maintains an impeccable, sterling reputation for 100 years.

not uncommon for sons to follow their dads into construction.

Now

in

our

fourth year of print, we’ve featured many of these excellent builders. We’ve also featured

Well, the Craighead family is that exception.

Starting with B.L. Craighead, Sr., the Craighead family has been designing and building luxury homes in San Antonio since 1923. In 1946 B.L. Jr. hung out his own shingle, and in 1980 Don Craighead joined the family business, partnering with his dad.

women who grew up in construction families and moved into running their own residential business.

“

“I grew up going to job sites as a little boy with my dad,” says Don. “But dad didn’t want any of us to be builders. He wanted us to get a college degree and a career that offers job security, a company car, paid vacation, paid holiday, and profit-sharing. All of the things he knew that the home building life did not offer.

Don’s wife, Nell, his soulmate for 52 years

16

“

I listened to my dad, but only temporarily.”

So Don headed off to College Station. After he graduated from Texas A&M, he immediately went to work for Proctor & Gamble as an account rep.

Eleven years later, with his fill of the corporate grind and traveling too much, Craighead left P&G in 1980. Much to the dismay of B.L., Don could no longer stay away from the career that had been calling him since he was a young lad.

He formed a partnership with his father, and four short years later started his residential construction enterprise, Craighead Custom Homes.

Don and his wife Nell raised three daughters while raising many roofs in prestigious neighborhoods and winning their share of construction awards.

Craighead served on the Greater San Antonio Builders Association Board of Directors for several terms over three decades. He received the James I. Campbell Lifetime Achievement Award from GSABA in 2011; and in 2008 was elected a Lifetime Director of GSABA as only the third builder to receive this designation in the association’s 65-year history.

No story on Don Craighead would be complete without mentioning his wife Nell and her significant contribution to their business. Nell, who lost her battle with cancer in February 2019, was Don’s soulmate for 52 years and his interior designer for 40 years. “She always had a big smile and loved working with our clients. She was an awesome interior designer and won trophies for Best Interior Design in the Parade of Homes and three Summit Awards. All of my suppliers, subcontractors, and clients, told me how much they enjoyed working with her. Everywhere she went, she left a little sparkle.”

“ Don and Nell started their business because of their passion for home design and construction and wanting to provide a better home building experience for people. “Building your dream home should be fun,” adds Don. “I’ve worked hard at taking away my clients’ stress and making them comfortable throughout the process. I do this by paying attention to the little details throughout, and by bringing optimism, honesty, and guidance every day on the job. ”

Craighead stated that one piece of advice he would pass along to someone just starting in the business is about getting the right partners. “Find the guys who are the experts in their trades, treat them right, and stay with them. I could have easily saved money lots of times by shopping for the lowest bidders on my work, but in the end, I couldn’t always guarantee a customer would like the result. It’s worth it for me to be able to count on my guys all the time.”

17

Here’s what some of his partners, friends, and subcontractors said: “I’ve known Don and B.L. and the Craighead family for years. They are big Aggies and salt of the earth folks. I don’t know of a single person in this business who doesn’t respect and admire Don. And everyone knew Nell; we all appreciated her. She was a beautiful woman and an excellent interior designer. They were indeed a great team.”

– Ray Wilkinson, Texas Allied Landscaping “When I think of Don, I think of honesty, straightforwardness, and integrity. He’s a legendary builder who has stood the test of time.”

– Ashley Penix, Capital Hardwood “I’ve done Don’s work for over 30 years, so we go way back. Everything about him and his approach to building homes is quality.

His workmanship is excellent; he’s the best of the best.”

– Joe Naranjo, True Granite “I’ve known the Craigheads since high school. Great people. Don has always been a very fair builder to all of his clients and subs and partners.”

– Mike Perkins, Roddis Lumber “After I retired from building homes, I took a few months off to regroup. I ran into Don at a Bill Miller’s just as I was starting up my charitable foundation. I asked him if he would build my house at Horseshoe Bay, because I just did not have the time or energy to oversee that project and still move forward on my new venture. I could have picked any number of guys to build that house, but I chose Don. I knew he’d get it done correctly. I knew from watching him that he always takes care of his customer. Always. I was lucky to get him.”

– Gordon Hartman, Retired Builder/ Philanthropist “Don’s standard is very, very high. He’s among the best in the business, and I think he learned a lot of that from his dad, another great builder.

– Wes Richter, Keith Zars Pools

18

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[savvy trucks & toys]

Toyota / Lexus:

By Beverly & Steve Smirnis

T

“

If it ain’t broke, “ don’t fix it.

he slogan seems to be the mantra in the Toyota/Lexus world. The Toyota Land Cruiser has been in production since 2007, receiving only a mild refresh in 2016.

The entry-level Land Cruiser priced at $86,880 has now entered the 2021 model year with only very minor differences from the 2020 model.

SUV. Perhaps wisely, decision-making for Land Cruisers purchasers was virtually eliminated. They were only available in one trim level until the Heritage Edition was introduced for 2020, which deletes the third row option and adds bronze-colored BBS wheels, special badges and a roof rack. Every Land Cruiser comes with a 5.7-liter V8 engine that produces 381 horsepower and 401 lb-ft of torque, paired to an eight-speed automatic transmission and a full-time four-wheel-drive system.

Most importantly, the large, luxury

SUV is capable of towing 8,000 pounds and equipped with off-road hardware including a locking center differential. Another factor that weighs in is Toyota’s move to load every model in its lineup with standard safety and driver-assistance technologies that many others offer only as options. Two years of

Buyers have been willing to continue shelling out the money for the Land Cruiser for several reasons. Many remain loyal to the old school SUV due to the clout that the Land Cruiser name carries with the off-road and overlanding communities. If you’re looking for a large, luxurious family hauler, most of comparisons are crossovers, while Land Cruiser is a true body-on-frame

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complimentary

scheduled

maintenance,

uncommon in this segment, also resonates with Toyota loyalists in general.

However, the announcement has just been verified; 2021 will be the last year model for the Land Cruiser, with internal competition mostly to blame.

The Sequoia answers to those

looking for a luxurious large SUV from Toyota but don’t care to shell out the extra money for a Lexus. Based on the Tundra pickup, Sequoia still remains a true SUV with its body-on-frame platform. The TRD Pro trim level, added for the 2020 Sequoia and denoted by its blacked-out emblems, adds the off-road capability factor to the Sequoia as well with upgraded Fox shocks, skid plates and significant ground clearance and is rates to tow up to 7,400 pounds.

Here again, Toyota limits the choices.

The

Sequoia is available only with the V-8 engine mated to a six-speed automatic transmission.

You do have the choice of rear- or four-wheel drive. But the Sequoia is criticized for lacking the modern features of some of its rivals and for its sub-par gas mileage performance. While the V8 puts out 383

choose a two or three row seat option. (The Mark Levinson audio

horsepower and 403 pound-feet of torque, the 6,100-pound Sequoia is

system is exclusive to the three-row option.) The LX never struggles to

slower to accelerate than some of its rivals with less power. In spite of

make an impression, but it too is criticized for being mostly unchanged

the criticisms, Sequoia buyers appreciate some of the old school things

since 2008.

about it, and those types of buyers like that the Sequoia has many of the

The strategy by Toyota / Lexus in the large, luxury SUV segment appears

attributes of the Land Cruiser and Lexus LX500 at a lower price point.

to be: Stick to your guns and keep selling vehicles, making few changes

Sequoias can be had for as low as about $50k. Our TRD Pro Sequoia

and limiting available options until they eventually become obsolete

tester had a price tag just north of $65K.

and replaced by other Toyota / Lexus nameplates. Essentially, Toyota / Lexus is in a position of strength that also puts it in the position of holding somewhat of a monopoly. Truly, their biggest competition are the other vehicles in their own fleet. The brand has done a superior job of winning over buyers and focusing the strategy on them instead of worrying so much about the actions of competitors.

The Lexus LX500 cousin, nearly identical to the Land Cruiser, starts at just over $87K and adds lots of luxurious appointments such as real wood and supple cushioning while using the same body-on-frame architecture.

Beverly & Steve Smirnis are members of the Texas Auto Writers

The LX500 comes nearly fully loaded and with one

Association and the Texas Motor Press Association, reviewing

available powertrain—the 5.7-liter V8 mated to an eight-speed automatic

vehicles and casting their votes at driving events where the Truck

transmission with full-time all-wheel drive. It also sports superior off-

of Texas, Car of Texas and Off-Road Truck of Texas are some of the

road ability with standard lockable center differential and a two-speed

titles awarded. Follow their automotive blog on

transfer case and five different terrain modes. Its air suspension can

TheSavvyList.com/TheSavvyDriver

give the large Lexus over 11 inches of ground clearance. Buyers can

21

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[savvy special report]

2018 I-Codes Now Ratified Across Texas as 2021 Code Hearings Begin B

uilders understand that change and advancement in

Paul identified the following list of changes between the 2015

minimal standards for residential construction are needed

and 2018 codes that will most impact code enforcement and

and necessary. Still, industry advocates also work hard to

inspection once these I-Codes are fully adopted:

prevent excessive design standards that hurt housing affordability.

The building codes process involves a series of proposed changes and hearings, and then the new codes are published every three years to establish minimum regulations. Municipalities then have their own set of hearings to decide which ones to adopt, reject, or modify. It is a time-consuming process. For example, as the 2021 building code development process gets underway, 162 changes to the 2018 codes are only ratified and accepted by all 254 Texas counties.

Chapter 3: BUILDING PLANNING R301.2 To assist the designer, jurisdictions will now include variables for HVAC local calculation Manual J assessments with other climatic and geographic design criteria available from the building department.

R301.2.2.1. New seismic design category (SDC) maps are included in the 2018 IRC. Notably, North Texas is now included.

Paul Evans, who has served on the International Code Council’s structural and energy committees, said about 94 true code changes between the 2015 and 2018 International Residential Code® (IRC), mainly involving definition changes with clarifications.

R302.13. Fire-resistant membrane protection is now required for the applicable floor framing materials above crawl spaces containing fuelfired or electric- powered heating appliances. (Note: This is not just related to furnaces, but any appliance that heats, including stoves and cooktops.)

24

R314. The exemption for interconnection of alarms during alterations based on feasibility has been removed from the code.

R324.6 Requirements for roof access and pathways for firefighters have been introduced into the IRC provisions for rooftop-mounted photovoltaic solar energy systems. Rooftop-mounted photovoltaic solar energy panels and modules are not permitted to be installed below emergency escape and rescue openings.

R325.6

The definition of habitable attic has been revised and the technical requirements have

been placed with mezzanines.

CHAPTER 5: FLOORS R507 Requirements for fasteners and fastener connections, flashing and alternative materials are added. Paul notes that inspectors are receiving special instruction for this in in some cases, municipalities will be using inspectors that solely inspect decks.

A new section on footing minimum size is added to help describe minimum prescriptive (nonengineered) requirements for an exterior deck footing based on snow load, soil quality, and footing shape and size. Maximum joist spacing and total length have been clarified. Decking material options and fastener systems are clarified. Vertical and horizontal support of an exterior deck is updated while support and attachment of ledgers is added to the decking section.

CHAPTER 6: WALL CONSTRUCTION To help clarify when studs greater than 10 feet long may be used, an exception is added to Section R602.3.1 as well as a reference to new Table R602.3(6) which applies only to 11- and 12-foot tall walls in one- and two- story buildings.

R602.10.3. Seismic Adjustment Factors attempts to clarify roof and ceiling dead loads in the top story of a multi- story dwelling and use of the BV-WSP bracing method have been added. Table R602.10.3(4) now allows use of Methods WSP and CS-WSP with brick veneer in the second story R308.4.2. Glazing within 24 inches of the hinge side of an in-swinging door now requires safety glazing where the glazing is at an angle less than 180 degrees from the plane of the door. (If an in-swing door can hit the adjacent wall glazing is required.)

R308.4.4

R602.10.4.1 Mixing of continuous sheathing methods with an intermittent alternate bracing method is clarified. Braced wall line(s) containing an alternate method must have sufficient bracing length for an intermittent method, not just for the continuous sheathing method when the alternate method is Method PFH, PFG or ABW

Unless laminated glass is used,

structural glass baluster panels in guards now require an attached top rail or handrail.

R311.7.3

of a dwelling.

The maximum rise of a flight of

stairs has increased by 4 inches, from 147 to 151 inches (meaning you no longer have to have a staircase landing where you have nine or ten foot ceilings).

R311.7.11 Ship’s ladders are now permitted as a means of egress for lofts with an area that

CHAPTER 7: WALL COVERING R703.2

Water-resistive barrier materials other than No. 15 asphalt felt must be installed

following the manufacturer’s installation instructions. The exemption for detached accessory buildings is deleted.

R703.8.4 Masonry veneer is explicitly allowed to attach to through insulation into the underlying wood structural panels.

CHAPTER 9: ROOF ASSEMBLIES

does not exceed 200 square feet (a provision

New Section R905.17 addresses installation and attachment of building- integrated photovoltaic

created mainly in consideration of tiny houses).

(BIPV) roof panels

25

CHAPTER 10: CHIMNEYS AND FIREPLACES

CHAPTER 15: EXHAUST SYSTEMS

R1005.8. Factory-built chimneys, which have been required to maintain

M1503.6 Makeup air for domestic cooking exhaust systems is no

a minimum clearance to insulation, are now required to have an

longer required if all fuel-burning appliances in the dwelling unit have a

insulation shield to provide the clearance to the insulation.

direct vent or mechanical draft vent system.

CHAPTER 11: ENERGY EFFICIENCY N1102.1.2. The prescriptive U-factors for fenestration have been lowered to .25 to improve the energy efficiency of dwellings and townhouses.

N1102.2.2

CHAPTER 16: DUCT SYSTEMS M1601.1.2. Underground ducts, including both direct-burial ducts and those encased in concrete, require sealing and testing. .

When applying the exception for insulation in ceilings

without attics, the insulation must extend to the outside of the top plate.

CHAPTER 24: FUEL GAS

N1102.4. A new standard for air-leakage testing, RESNET/ICC 380, is

G2420.5.1 Shutoff valves located behind movable appliances are

now referenced in the IRC to provide flexibility for the testing industry.

considered as meeting the requirement for access.

N1104.1. The required percentage of permanent lighting fixtures having

G2442.2. The prescriptive duct size requirements for forced air furnaces

high-efficacy lamps has increased from 75 to 90 percent.

have been deleted in favor of other sizing methods specific to the appliance.

CHAPTER 13: GENERAL MECHANICAL SYSTEM REQUIREMENTS M1305.1.1. The appliance access requirements for furnaces in compartments have been removed from the code in favor of other code provisions and the manufacturer’s instructions.

G2447.2. Commercial cooking appliances are now permitted in dwelling units when installed in accordance with an engineered design and the manufacturer’s instructions.

26

CHAPTER 27: PLUMBING FIXTURES

CHAPTER 41: APPLIANCE INSTALLATION

P2713.1. Bathtub overflow outlets are no longer required. (While this

E4101.3. The maximum cord lengths for range hoods and built-in

change was added to address the fact that a lot of European tubs don’t

dishwashers have increased and the code clarifies that the receptacle

have them, Paul says this is an example of a change that’s not good and

outlet for the dishwasher has to be in the space adjacent to the

recommends you should use tubs that have them!).

appliance.

CHAPTER 29: WATER SUPPLY AND DISTRIBUTION P2906.18.12

APPENDIX Q: TINY HOUSES

A single solvent-cement transition joint is now an

Dwellings under 400 square feet do not have to be inspected.

acceptable method for connecting a CPVC water distribution system to a PVC water service pipe. (Paul says this one is ill-conceived and still recommends using purple CPVC glue so that the inspector can see it.)

CHAPTER 37: BRANCH CIRCUIT AND FEEDER REQUIREMENTS E3703.5 A separate 20-ampere branch circuit is now required to serve

R. Paul Evans CGA, CAPS, CGP, is the National VP of Millwork for BMC.

receptacle outlets of attached garages and detached garages with electric power.

He is a native Texan with over 40 years in the construction industry and

CHAPTER 39: POWER AND LIGHT DISTRIBUTION

Louisiana and holds GC licenses in 17 states.

E3902.4.

is a voting member of the ICC. He is licensed as an engineer in Texas and

Ground-fault circuit-interrupter (GFCI) protection is now

required for lighting outlets of crawl spaces.

(Paul notes that he

disagrees with this one because people keep crawl space lighting on to prevent pipes from freezing and the GFCI would not warn when they turned off.)

27

[savvy finance]

By Steven Bankler, CPA

Last-Minute Tax

Checklist Before the

New Year

PPP Loan Forgiveness You may have heard that Paycheck Protection Program (PPP) loan forgiveness is already being administered, but you can wait until 2021 to apply. It might even be more tax-advantaged to do so (depending on your situation). And you may decide that full forgiveness isn’t worth it. As of October, the IRS had ruled out the usual tax deductions for wages and rent that were paid with forgivable PPP loans to prevent a “double tax benefit.”

So, while applying for PPP loan, forgiveness can wait until the New Year; accounting for the money and deciding how it will affect your usual business deductions can’t. If you choose to ask for forgiveness, you must be able to prove that you maintained or quickly rehired employees and maintained salary levels. And you’ll need to show that you spent the money wisely, including following strict rules on payroll and non-payroll spending. Keep meticulous records now and have a plan ready for full PPP forgiveness just in case.

It’s time to make some last-minute tax moves.

But this year is unlike any other. Before making

Deferred Payroll Taxes

assumptions or merely doing what you’ve always

The federal government declared a payroll tax “holiday” for this fall. But is it

done, check with a tax advisor, particularly in the

too good to be true? It might be. The payroll tax deferral includes withholding,

following areas:

deposit, and payment of certain employee payroll taxes from September through December 2020. The deferral relates only to the employee’s portion of Social Security payroll taxes (6.2%) for those who generally earn less than $104,000 annually.

However, questions remain on if and how the payroll taxes will need to be paid back (as in, deducted from paychecks) in 2021. If you took advantage of the payroll tax holiday, be sure to stay informed about any catch-up requirements that could kick in.

28

Expenses and Losses

and exit strategy services for closely-held businesses. He also provides

The stops and starts of 2020 no doubt left you with expenses and

litigation support (both as a testifying expert witness and a consulting

losses. Everything from increased personal protective equipment (PPE)

expert), business negotiations, and estate planning.

and supplies, education and training, new computers and paperless

Visit www.bankler.com for additional tax strategy tips and to learn more

devices, and legal services are deductible expenses that can add up to

about Steven Bankler, CPA, Ltd.

significant tax savings.

When it comes to business losses, you may have experienced stalled timelines, economic uncertainty, and supply chain disruptions that cost you dearly. Thankfully, the federal CARES Act will allow you to offset 100% of the income you earned during 2018 and 2019 with those losses, so it would be wise to dig back into the records to determine your best strategy.

Charitable Donations Business owners often have a choice on whether to deduct donations on personal or business tax returns. Does it matter? Yes, for even more reasons this year.

If you received PPP funds, charitable contributions could offset

NOISES IN YOUR ATTIC?

the potential shortfall a loss in tax deductions could cause. C Corp contributions—usually capped at 10% of taxable income—are deductible up to 25% through the end of the year, which is a bonus. And if you’ve reached retirement age, the required minimum distributions (RMD) that

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well. So, weigh the pros and cons carefully and consult your tax advisor before deciding whether you or your business entity should take credit for end-of-year contributions.

Take a page from Santa and check your tax checklist twice before the holidays. There will doubtless be a few head-scratchers that will require new strategies to overcome this exceptional year.

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