San Antonio Building Savvy September 2021

September 2021

San Antonio’s Homebuilding Industry Publication

EVERVIEW HOMES Josh Niemietz and Adam Smith And Their Award-Winning Parade Home

TEXAS CLIMATE ZONES Energy Rater Kevin Burk

DESIGN/BUILD CUSTOM HOMES Steve Zbranek

BUILD BATHS FOR ESCAPISM Beverly Smirnis

PHOTO BY JASON ROBERTS

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Building Savvy

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Guido Companies 210.344.8321 Doors www.guidoconstruction.com The Front Door Company

Doors Drywall The Front Door Company R. Hernandez Drywall 210.340.3141 210.733.6437 www.thefrontdoorco.com

Flooring Flooring Sunn Carpets and Flooring Sunn Carpets and Flooring 210.349.7866 210.349.7866 www.sunncarpets.com

Mortgage Company Mortgage Company

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Home Warranties Centricity Granite Countertops 727.385.7599

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Serving Bexar County and Nearby Areas

remain solely those of the author(s). The paid advertisements contained within the Building Savvy magazine are not endorsed or recommended by N2 Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher

R . H E R N A N D E Z D RY WA L L 210-733-6437 | Ralph Hernandez, Owner

may be held liable or responsible for business practices of these companies. NOTE: When community events take place, photographers may be present to take photos for that event and they may be used in this publication.

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[From The Publisher]

What Happens Next?

The Association of Professional Builders’ recently released 2021 State of Residential Construction Industry (SORCI) report indicates that while builders in the United States have seen record increases in revenue and net profit with homeowners seeking to improve their living environments because of the COVID-19 pandemic, the unprecedented demand isn’t sustainable. APB says savvy builders will need to think more like strategists when it comes to lead generation, team building, project management, planning, owner’s remuneration, financials and self-development.

The strategy won’t be the same for all of us. Just as we write about diversity of choice from auto manufacturers competing with each other in the various automotive segments, you’ll find your niche opportunities. The message is—be flexible and ready to tweak your designs and your marketing messages to pivot to the subtle changes. Here at Building Savvy, we’ll do our part in trying to help you keep up with these changes.

NAHB’s recent study, What Home Buyers Really Want, 2021 Edition polled a panel of recent and prospective home buyers and some of the things that they revealed about their priorities for bathroom design revealed that preferences have changed as we enter the phase that will hopefully remain being called “post-pandemic.”

Buyers are looking for a spa-like experience at home, and the builders of the 2022 New American Home® being built for the National Association of Home Builders’ International Builders Show (IBS) describe their entire house as a “private sanctuary for the homeowner with numerous spa-like features throughout.

The countdown for the “in-person” International Builders Show is on and registration is open for the major home building industry event of the year happening next February in Orlando. This will be a banner year for product introductions and information sharing and a prime learning opportunity for you and your team!

Cheers to the fall season coming soon!

Terry Kemmy Publisher 210.844.1542

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[Industry News]

SORTING THROUGH THE CRAZINESS

By Jim Leonard President, Greenboro Homes

2021 may go down as one of the best years since the early 2000s for new home starts and sales, but unlike other years, severe supply chain issues that never arose before threaten to put the brakes on the economic recovery. Nearly every aspect and every task has been slowed this year by a lack of available labor or lack of material, or both.

riving around town, signs are up at nearly

material needing to go to those area to rebuild, prices may remain high

every supplier looking for help, especially

for some time to come. And as mentioned, new home construction is

commercial drivers. Deliveries are backed

on fire just about everywhere.

up, not because of material shortages,

StrucSure_BuildingSavvy_Augustl2021.pdf

but because there is no one to deliver the goods to your job site. Other products manufactured overseas are held up due to lack of materials to make them. Items such as PVC, copper, aluminum, iron- you practically name it, are in short supply globally.

Companies are telling builders that windows can take up to four months to get. Considering that windows need to be on the job site about 4-6 weeks into the start of a home, C

you would literally need to order them 2-1/2 months before starting the job. No windows means that the frame cannot be completed and dried in and you may not be able to get municipal inspections.

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Some lumber companies are reporting delays of 3-4 weeks to have material delivered. It’s in stock but they have no way to get it to you.

Price increases are up in just about every category in the building cycle. Lumber futures prices have fallen by over 50% since early May but have only come down by a fraction of that in retail locations. Since many people have returned to work, they have put off home improvement projects until pricing comes back down. But with recent wildfires and

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6/22/21

7:36 AM

Sheetrock, insulation, plumbing parts, electrical outlet boxes, wire,

I once worked for a builder who said houses were built with $20 bills.

cabinets, interior trim and doors have all gone up in price. In many

Now this was a long time ago and the amount is probably higher, but

cases these increases are being passed along to builders even as the

his point was that there were savings everywhere if you just looked

house is under construction and the builder has no option to pay it or

for them. Do that enough times and the savings can add up to

have no product. Labor has also gone up in just about every task in

thousands which can go straight to the bottom line.

building.

They need to tighten up their estimates and only order what they

It’s easy for a production builder who builds on their own lots to

think they need. I’d rather be a little short on some items and have to

raise prices or cancel contracts or to sell the home at a higher price.

fill in small quantities than have a bunch of leftover material that has

But what about custom builders who build on lots owned by the

been sitting on the job site and cannot be returned for credit.

purchaser? There is no puling out of those deals. SO the custom

We have discussed savings with our framing engineers in order to

builder sucks it up, pays the difference which probably exceeds what

reduce cost and quantities. For years we wrapped our houses with

they can draw for that item and hopes to make some money at the

OSB but when the price got to be over $50 per 4x8 sheet, we talked

end of the project.

about using structural thermal ply instead. The cost for a 4x8 sheet

So how does a builder hope to contain cost and stay profitable?

of that is around $13. It’s not as pretty, but the engineer signed off

Builders need to analyze their plans and look for areas to reduce

on it and we began using it instead of OSB. We have gone through

quantities where possible. Can you reduce one cabinet from your

other facets of our home and found additional areas to save cost.

kitchen? Can you reduce the size of the kitchen island by at least one

Interestingly we should have been doing this all along but it took

foot? Does the bathroom shower need to be capable of washing a

major price increase and supply chain upheavals to make us look

small car or can you cut down the size, reducing the amount of tile

hard at our product. It’s a lesson more builders should look at.

needed?

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[Focus Section]

BUILD BATHS FOR ESCAPISM

By Beverly Smirnis

As homeowners continue to seek places to retreat from stress inside their homes, a bathroom design that focuses on health and wellness is the winning ticket. Bathrooms also top the list as a primary area of the home that Americans are planning to upgrade.

Designers are speaking of softer shapes, styles and finishes, naming “natural/organic” as the leading trend. This combination feels more European in style and scale, with clean lines, minimal detailing, and the warmth and texture of natural finishes.

Google reported searches for “home sauna” were up 73% year over year, while searches for “luxury sauna” doubled over the same period. Product manufacturers recognize the trend and respond with saunas and steam rooms and other items that recreate the type of health and relaxation benefits found at a high-end gym or spa.

Gessi’s Aflio system reimagines the shower experience with flowing water, glowing lights, an illusion of floating in space.

As part of the brand’s signature Private Wellness® Program Colour by Gessi employs refreshing waterfalls, stimulating hydro-massage, soft nebulized mists, and mood-changing hues to produce a sensory shower like no other.

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NAHB’s recent study, What Home Buyers Really Want, 2021 Edition polled a panel of recent and prospective home buyers.

When a few years ago, there seemed to be declining interest in tubs in favor of showers, it is insightful that in rating bathroom features for the primary bath, the desire for a shower/tub combination earned the highest number of “essential” rankings, meaning that these buyers would be unlikely to buy a home without this feature.

Ideally, the tub and shower would be freestanding. The jury is out on soaking tubs versus jetted tubs, with the NAHB study showing only slightly more than half said a whirlpool bath was important. The National Kitchen & Bath Association named larger freestanding showers as an emerging trend, recommending that they be designed to accommodate two people with zero-

Hand-crafted from MTI’s signature SculptureStone® material, a mixture of ground

clearance entry with integrated seating and

natural minerals and high-performance resins that gives the look and feel of molded

grab bars. NAHB’s study suggests that 59%

stone. MTI Baths’ Bowie freestanding tub with unique “pleated” exterior adds

of its respondents named multiple shower

unexpected texture to the bathroom.

heads as a priority.

Also at the very top of the list, 76 percent of home buyers rated a linen closet as essential or desirable. Double vanities were essential or important to 69%, and 67%sought a private toilet compartment.

Results also indicate that white toilet, tub, and sinks are preferable (65%) over their color counterparts (preferred by 44%).

Other items often cited for bathroom wishlists include larger-format surrounds with fewer grout lines, voice-activated or handsfree faucets, toilets with self-closing lids and bidets.

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,

Easy Sanitary Solutions’ new Super Slim design Xs Series Shower Drain is the world’s

have served as judges for the International

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Builders’ Show Best of IBS Awards and judged

design.

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[Savvy Special Report]

REGISTRATION FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS’ 2022 INTERNATIONAL BUILDERS SHOW FEB. 8-10 IN ORLANDO OPENS SEPTEMBER 1

T

he most elite professionals and ‘who’s who’ experts

With its official show homes expected to take center stage as

in residential construction will present and share their

main attractions, the build teams have experienced many of the

insights at IBS education sessions, addressing niche-specific

same supply and permitting challenges that will be subjects of

challenges as well as solutions and trends to wow customers.

discussion and guidance at the show. A willingness to adapt

Hundreds of new products and services are launched on the

and develop new solutions have been the keys to overcoming a

exhibit floor each year as leading manufacturers and suppliers

variety of changes and delays. The New American Home and

showcase their latest products.

New American Remodel 2022 will be officially unveiled to the public and open for touring during IBS 2022.

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Described as a “private sanctuary for the

will be held). The community itself is also trend-setting with transitional architecture consisting

homeowner” who will enjoy its “numerous

of brightly colored townhomes, cottages and multi-story properties complemented by modern

spa-like features, the New American Home®

design and technology features.

2022 is an upscale coastal concept home, designed by BSB Design and built by Envy Homes to raise the bar for high performance, modern amenities and contemporary flair. The three-story property will boast 4,646 square feet of living space, with three bedrooms and four-and-a-half bathrooms.

Features will also include a rooftop terrace, an exercise room and numerous indoor-outdoor living amenities as well as a pool courtyard.

It is expected to achieve net-zero status and Emerald-level certification from the National Green Building Standard. It will also earn certification from ENERGY STAR, Indoor

Lake Sue provides a beautiful backdrop for an innovative masterpiece like The New American

airPLUS, and the U.S. Department of Energy’s

Remodel 2022, the design of which will remain true to its original mid-century modern

Zero Energy Ready Home Program.

character. Architect Phil Kean and remodeler Eric Gray will oversee the home’s transformation,

TNAH is located in Laureate Park at Lake Nona (approximately 25 minutes from the Orange County Convention Center where IBS

which will optimize existing features while nearly doubling the amount of living space from 2,662 square feet to 4,688 square feet.

For more information on the show and the homes, visit buildersshow.com.

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[Savvy Finance]

NEW TAX DEVELOPMENTS FOR S CORPORATIONS An important tax court decision was recently passed down that addresses a common audit trigger for S Corporations: Payments to sole shareholders. Are they considered wages or distributions? The answer to that question can alter a business owner’s tax obligation by thousands of dollars.

By Steven Bankler, CPA

When a business is just starting out,

pay themselves what the IRS considers “reasonable

the owner often chooses a passthrough

compensation for their services” to the business instead of

structure like a sole proprietorship or LLC.

primarily (or solely) taking distributions.

However, once the organization begins making more profits and taking on more expenses, it’s time to start considering

A recent U.S. Tax Court case illustrates what can happen when S Corps ignore that golden rule. A Minnesota law

whether becoming an employee of the business under a

firm’s sole owner failed to report any wages in recent years,

corporation designation is best for tax purposes (and other

and, in others, the income and compensation reported

reasons). An S Corporation Election (or S Corp) can be a

on her personal returns didn’t line up with the law firm’s

valuable middle ground for profitable small businesses

returns.

because it allows shareholders to, essentially, split the difference on taxes between taking distributions of earnings and profits and being paid a salary as an employee.

This mismatched income and wages and an improperly completed Schedule C triggered a tax audit for both the individual and the firm. Can you guess what auditors

An S Corp is constructed to work around what many

determined? The firm was liable for employment taxes

consider a corporate design flaw that leads to double taxation. Even the IRS admits that S Corp allow shareholders to avoid double taxation on corporate income. But that

on, basically, everything the owner paid herself. Once she admitted that she was an employee of her S Corp, the IRS determined that “the firm had no reasonable basis for

doesn’t mean the IRS isn’t watching closely for those

treating [her] as anything other than an employee.”

stretching the opportunity beyond what’s appropriate.

This ruling alone doesn’t change the game for S Corp

The IRS prefers that S Corp shareholders pay themselves

shareholders, but it does re-emphasize the need for due

wages over taking distributions (wages equal employment

diligence when classifying distributions versus wages.

taxes, after all). To this end, the shareholders need to

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Additional changes and rulings over the past year

»

circumstances apply to your S Corp-designated

»

business, it’s time to seek tax advice: »

»

You’re a shareholder of a not-for-profit interested in making an

The S Corporation pays (or could pay) state and local income tax (SALT) payments separate from your individual SALT payments.

»

There’s more than one class of stock associated with the

You’re unaware of the 2020 and 2021 changes to Schedule B-1/ K1 and international reporting.

business. »

Your business recently terminated its S Election to become a C corporation.

S election. »

Your S Corporation holds stock in a controlled foreign corporation (CFC).

may affect particular S corporations. If the following

Your S Corporation operates a mixed-funds investment in a

With corporate tax rate hikes looming, too, there are more than enough

qualified opportunity fund (QOF).

reasons to revisit your S Corp tax strategy.

»

Your business recently merged with another company.

»

You participated in the Paycheck Protection Program (PPP).

»

You received cancellation-of-debt (COD), a lawsuit settlement,

protection as well as exit strategy services for closely held businesses. He

or other extraordinary income that could be miscategorized.

also provides litigation support (both as a testifying expert witness and a

»

Steven Bankler has more than 44 years of experience in the accounting industry. Steven’s expertise lies in consulting, planning, tax, and asset

consulting expert), business negotiations and estate planning. Visit www.

You’re unsure whether the accumulated adjustments account

bankler.com for additional tax strategy tips and to learn more about Steven

(AAA) used to compute the tax effect of your distributions

Bankler, CPA, Ltd.

meets newly outlined IRS standards.

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17

[Savvy Builder]

EVERVIEW HOMES Striving to be Best in Class in All They Do

E

verview Homes aspires to be respected as the builder-of-choice for families seeking to invest in a home

that best fits their lifestyle and reflects who they are as individuals.

They strive to create healthy,

“We offer the most sensible

efficient, and low maintenance

way to build through a value

homes that enrich, enhance and

rich, streamlined process,”

simplify their homebuyers’ lives.

adds Smith. “We provide true

Their award-winning home in the

craftsmanship and cutting-

recent GSABA 2021 Parade of

edge design elements with

Homes was no exception. They won

exceptional amenities to

the Parade award for Best Master

meet and exceed our client’s

Suite and Master Bath.

expectations.”

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Ten years ago, Everview Homes began building

with Century 21. A few short years later, at age 25,

homes ranging between 1,200 and 2,000 square

he split off on his own as a broker with one realtor

feet in Northeast San Antonio and quickly

and quickly grew to a firm with 70 realtors. Adam

progressed into the semi-custom and custom

was a top agent for Century 21. However, in 2008,

market. Today, Everview continues to build

the famous recession bit everyone hard.

beautiful homes including production, semicustom, custom, multifamily, and duplex homes in Spring Branch, Blanco, Horseshoe Bay, New Braunfels, Hondo, Seguin, Selma, and San Antonio.

“I always wanted our product to be best in class, no matter the size and scope of the project,” says founder Adam Smith. “Structure and architecture are important to me, even in smaller homes. We

Smith entered the building industry by way of real

pride ourselves in giving our clients a lot more for

estate. Twenty-one years ago, he was a new agent

their money.”

Smith decided he was going to endure and get through the economic storm by shifting gears.

Instead of just selling homes, he partnered up with a land developer and started selling and marketing land. The knowledge he gained by working closely with developers, while at the same time listening to the wants and needs of consumers in a difficult economic time, proved to be a foundation for his venture into launching a residential construction business.

“It was an incredibly difficult time back then,” adds Smith. “But I was all in and kept learning more about the complete residential picture. Every day I had to tell myself that no one else was going to bail us out. Everyday you go all in. “

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Smith’s right-hand person for his luxury custom homes is builder Josh Niemietz. Josh’s father Joseph Niemietz was a builder, so he grew up on job sites. As a teenager he worked on framing crews; was an electrician assistant; worked on plumbing crews, and even learned interior trim. By age 19, Niemietz moved into management and never looked back.

“Building a home that is tailor made for a family is key,” says Niemietz. “Clients want and expect custom homes designed and built around their family’s needs and personal preferences. We’re able to consistently provide both style and quality to our buyers.”

A quick look at their website (www.everviewhomes.com) will provide a list of standard features in their homes that are often upgrades or extras with other builders. Most notably, are a few signature Everview features such as 14-20-foot ceiling heights (foyer, family room, dining); 10-foot plates and ceiling treatments throughout; and 8-foot doors throughout first floor.

Everview’s parade home in Belle Oaks drew rave reviews for these and many other unique features: stately curb appeal, 20-foot ceilings; butler’s pantry, hidden safe room, wine room and the most incredible master suite in the parade.

Like most builders Josh is particular in choosing subcontractors, suppliers and partners. Many of them have been with Everview for several years. Here’s what some of them had to offer:

“Working with Josh is great. I know him also as a friend. He’s got a lot of integrity and high character. He will always do what he says he’ll do, and in this business that is rare.”

Terry Brown, BnT Plumbing “Adam is a very smart builder; very progressive and forward thinking. He takes care of his guys.”

Rudy Garza, Airmaxx “That parade home was amazing! They always build unique, highquality homes. Their ceilings and elevations really stand out.

Jose Trejo, Trejo Electric “Working with Josh is great. I know him also as a friend. He’s got a lot of integrity and high character. He will always do what he says he’ll do, and in this business that is rare.”

Terry Brown, BnT Plumbing “Josh is very direct, very thorough. He expects us to do our part professionally and trusts us like a valued partner. We really enjoy our relationship and the growth we’re experiencing with them.”

Juan Cantu, C3 Granite

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[Sales Energy]

THE RESIDENTIAL ENERGY CODE IN TEXAS: What You Should Know, and How It Can Work For You

By Kevin Burk, RESNET Home Energy Rater

A

s a Texas homebuilder, architect, or home designer, you may be asking yourself what is

In this article, I will attempt to answer these

this energy code, and what do I need to know about it?

questions, and more importantly, show how

Why does a home built in Fredericksburg need to meet a

the energy code can actually help you build

different standard than a home built in New Braunfels?

What are the compliance options available to me as a

and design a better, more efficient, and more

builder or an architect, and how is compliance determined?

comfortable home for your homeowner.

Kevin Burk, from left, Brian Burk and Mark Whittemore.

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Background The 2015 International Energy Conservation Code, otherwise known as the IECC, has been the

insulation and windows with a u factor of

law of the State of Texas since September 1, 2016. It addresses the design of energy-efficient

.40 or better, but that same home built in

building envelopes and installation of energy-efficient mechanical, lighting, and power systems

Boerne would require R-20 walls or R-13 with

through requirements that emphasize performance in both commercial buildings and low-rise

continuous R-5 insulation and a window with

residential (3 stories or less in height above grade) buildings. It serves as a minimum code

a u factor of .35 or better. See the table, below.

standard for all builds in the State, regardless of whether there is a municipal code enforcement authority. As one of the International Codes (I-Codes) in the family of I-Codes promulgated by the International Code Council (ICC), it establishes the minimum regulations for energy efficient buildings. The residential portion (Chapter 4) of the IECC is replicated as Chapter 11, Energy Efficiency, in the 2015 and subsequent editions of the International Residential Code (IRC).

The law that established the 2015 IECC as the state energy code empowered the State Energy Conservation Office (SECO) as the executive agent for recommending changes to the code but limited its ability to do so to once every 6 years. We are currently in a permissible change year, and the Texas Legislature has made some minor changes to the 2015 law. As of July 22, 2021 the Legislature has not changed the minimum state energy code from the 2015 IECC.

There are 3 distinct climate zones in Texas, but we will deal with only 2 here. Climate Zones 2

While we are blessed with many things by living here in Texas, one could argue that having such a diverse change in energy code requirements as defined by the two climate zones running right through the middle of our state is not one of them. It is indeed a

and 3, which encompass the Greater San Antonio – Austin - Hill Country Area. The climate zone

significant challenge for our builders and

boundaries are defined by county political boundaries across the United States. These climate

architects.

zones are determined by the US Department of Energy and are based on climate data. The climate zones in Texas are as follows:

Compliance Options = Flexibility »

Climate Zone 2: Edwards, Real,

Bandera, Bexar, Comal, Travis, Hays and the

The 2015 IECC and the more recent 2018 and 2021 editions provide 3 ways for a builder to

counties south and east.

achieve compliance with the energy code.

»

method with the above-code Energy Star for

Climate Zone 3: Most of the Texas

Hill Country with Kimble, Kerr, Kendall, Gillespie, Blanco, Llano, Burnet and the counties north and west.

What is significant about the climate zones?

Quite a bit, actually. There is a significant difference between Climate Zone 2 and 3 in terms of:

And the State of Texas provides a fourth Homes program. All 4 options are based on an energy-efficient building envelope. They differ in how they calculate efficiency of the home within that envelope. I will summarize each.

Prescriptive Path. This method of determining compliance focuses on the heating and cooling loads of the building

»

Building envelope air leakage, as measured by the blower door test;

»

thermal enclosure insulation, specifically in walls; and

»

fenestration ratings, specifically window u factors.

envelope, measured in terms of heating and cooling Btu per square foot of building envelope. The focus is on the thermal performance of the home, not on the efficiency of mechanical systems or the operating cost

For example, a home built in Bexar County, which is in Climate Zone 2, requires a blower door test of 5 Air Changes per Hour at 50 pascal (expressed as 5 ACH 50) or less, while that same home built in Kendall County, which is in Climate Zone 3, would require a significantly tighter envelope requiring a blower door test of 3 ACH 50 or less. Three air change per hour (3 ACH 50) translates to 3 volumes of the conditioned space being measured as leakage over the course of one hour at an induced pressure of 50 pascals.

of the home.

There are 2 methods of complying a home by the prescriptive path. One method uses the prescriptive table in the code and requires no software calculation and does not allow for trade-offs in the building envelope.

There are significant differences in terms of wall insulation and window performance

The second method uses an energy rating

requirements, as well. For example, a home built in New Braunfels requires only an R-13 wall

software such as RES Check or Ekotrope and

23

allows trade-offs in the building envelope by calculating compliance

requires energy rating software that can generate an index score,

by envelope component. The Prescriptive Path is the most rigid

and RES Check is not capable.

compliance path, and limits the flexibility that builders and architects

The Texas Energy Rating Index provides the greatest flexibility for

have in build and design.

both the builder and the architect because it rewards both innovative

Simulated Energy Performance Path. This method of determining

building envelope design and higher efficiency mechanical systems

compliance focuses on the operating cost of the home being

and appliances. When the State of Texas adopted the 2015 IECC

designed or built as compared with the operating cost of that same

it adapted the index to provide significant flexibility to builders and

home built to the prescriptive standard in the table above. This

designers. The following indexes are required for compliance in

compliance method requires a software calculation and factors

Texas climate zones 2 and 3, and is referred to as the Texas Energy

more energy efficient envelope components, such as reflective

Rating Index (TX ERI). Lower index numbers equate to more efficient

metal roofing or better performing fenestration. This is where

homes.

the flexibility of the IECC benefits builders and architects. This cost performance method allows trade-offs in building envelope components and frees the envelope design from the constraints of the prescriptive table, so long as the operating cost of the home

•

TX ERI of 63 through August 31, 2022

•

TX ERI of 59 effective September 1, 2022

does not exceed the operating cost of the prescriptive built home

In summary, the 2015 IECC provides for a minimum standard

when compared side-by-side in the energy rating software program.

of efficiency for residential home builds in the State of Texas. It

The Simulated Performance path allows more flexibility in building

implements the US Department of Energy climate zones, of which

envelope design and materials, but is does not reward higher

there are significant differences between Climate Zones 2 and 3 that

efficiency mechanical systems or appliances.

Texas builders and architects must account for. It provides builders and architects flexibility by providing three distinctly different

Energy Rating Index. This method of determining compliance

approaches to compliance. It is not your grandfather’s energy code

focuses on the operating efficiency of the home as expressed by an

– and that is not a bad thing.

index score. The index rewards the use of more efficient mechanical systems (HVAC and hot water) and incorporates certain appliances

About the Author - Kevin Burk is the owner of Burk Energy Raters

such as dishwashers, washing machines, dryers, and refrigerators.

in Boerne, TX. He has been a Residential Energy Services Network

The higher the efficiency of mechanicals and appliances, the lower

(RESNET) Home Energy Rater for 5 years, and has rated hundreds of

the energy rating index will be for a given home. In 2015, this index

homes for energy code compliance. Prior to starting his company in

score was the equivalent of the HERS rating score. This year, the

2016, he served a 28-year career in the US Army.

Texas Legislature updated the way this index is calculated, and it is no longer equivalent to the HERS index. This compliance method

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[Builder’s Corner]

Design/Build Custom Homes, Lake LBJ Style

W

By Steve Zbranek

hen I started my homebuilding career 42 years ago, I remember the immense job satisfaction from scraping dirt on a lot, pouring concrete, building a home and handing lucky homeowners the keys at the end. Their excitement

was contagious and it made all of us want to do a better job every day. Through the years it has always been fun to bring custom home dreams to life for

We chose the Design/Build format when our

families, but three years ago the fire has been reignited. Our team at Zbranek &

company began with a goal to become a full

Holt Custom Homes has opened an office in Horseshoe Bay on beautiful Lake

service, one stop building company for all

LBJ. Now we are not only building amazing custom homes, we are also building

things related to a new home project. We

places where families come to play, relax and have fun. The mood is festive and

call it “Plans to Plants.” To be a Design/Build

the ideas are based on elegant design and entertaining family and friends.

firm does not necessarily mean loading up overhead with someone on staff for every function. While some builders do have “in house” architects, the majority in this category form business relationships with several plan designers and architectural firms to help each other build their business.

There are several benefits to a builder in a Design/Build structure. First and most important to the client, you begin with a target budget, and design a home to that budget.

Does this always work? Sometimes not.

However, when clients add things such as large, covered patios, multi-car garages, wood windows, upgraded cabinets, etc. …they see the cost of these items in real time, and the effect that they have on the final contract price. Some clients pay for what they want, but still don’t like surprises at the end. Others have a top end price that they can or will pay for their new home. With Design/Build they can see these costs and prioritize their decisions accordingly.

26

Another benefit to the builder is keeping items from being added to

Next, form a marketing relationship with one or more plan designers/

the house that raise the cost, and are not requested by the client.

architects who are not too busy to work with you. Often the best

Examples of these are non-standard window sizes, large overhangs,

named architects in the area are very busy and can’t offer the pricing

flat roofs, abundance of masonry detail, and one of my favorites 150

and turn around time needed. Seek out others trying to grow their

recessed cans. A builders input here can save money for the clients to

businesses. Discuss becoming a sales arm of a sort to their company

get the things that matter to them the most. Next is timing. A Design/

and the amount of business that you think you can send.

Build firm can typically go from “how are you?” to a permit set of

In our system, we offer the clients no cost preliminary sketches

plans faster than when the plans are controlled outside of their office.

upfront to get their ideas on paper. Our deal with the plan guys is that

Because we send so much business to a few firms our plans get a

we will pay them an hourly fee for these sketches, if the buyers walk.

priority and our homes get started faster.

If they continue to full plans the sketches are part of the typical design

So, does being a Design/Build company mean that you don’t consider

process for their firm and paid on a negotiated per square foot basis.

other types of business? Not necessarily. If a client presents a set of

If we lose a client after a couple of sketches, we pay the bill and write

plans drawn by an architect of their choosing it becomes decision

it off to marketing.

time for the builder. Do you want to take time for your staff to obtain

Pre-qualifying who you are talking to is the key here. We may lose

bids and create a budget for a home that you may not build? In slower

one out of twenty people that we draw sketches for. And, usually

times this might make sense. In our company we rarely bid plans.

for a reason unrelated to the home itself. Some builders ask for a

We are fair priced for everyone but there is always another company

deposit and a signed “design agreement” at this stage. This keeps

willing to build a home for less. Unless a buyer has thoroughly

the clients involved and invested. One important factor is that we also

researched other builders and literally asks us to be their builder (this

negotiate with the architects and plan designers that the drawings are

does happen), we pass. As I have written in a previous article, we

copyrighted for our use only, since we are paying the bills. This keeps

have all met clients who paid architects to draw the home of their

clients from shopping your drawings to other builders.

dreams, and the final cost was out of their range. Likewise, architects

I was recently asked by the Texas Association of Builders to do an

will tell us that they have drawn nice homes for families that were

educational presentation on this subject at the Sunbelt Builders Show.

never built. This happens when plans are dawn without budget

I estimated that there were close to 165 attendees in the session.

checks and balances along the way. More than once in my career

There was much interest in this subject and many questions during

after we price a client’s plans, and the number was too high, they

and after the session about how it all works. Since then, I have

abandoned those plans and had us draw a new home in their budget.

received many inquiries from builders and remodelers in the audience

This is why Design/Build works.

who want to learn more. We are a fixed price, (not cost plus) Design/

If a company is not a Design/Build company and would like to

Build Company and have been from the start. It works for us, and

change their program, what is the first step? It starts internally. To

our clients. Starting with the end in mind creates a fun project in an

be successful the person on the builder’s team working with clients

industry that is seldom referred to as fun. And as a wise friend once

needs to be well versed and current on construction costs. Most

told me, “If you are not having fun at what you are doing, do something

custom builders and remodelers check this one off easily. However,

else.”

if you sell with Realtors or sales agents who don’t possess costing knowledge this will be a problem.

About the Author In addition to serving two terms as Chairman of the Lake Travis Chamber of Commerce, Steve Zbranek was also the Founding Chairman of Leadership Lake Travis, served on the Board of Directors Lakeway Police Memorial Foundation and was recognized as both Business of the Year and Citizen of the Year by the Chamber. A decorated US Air Force Veteran, Steve is a 42-year Custom Home Builder in San Antonio, Austin, Horseshoe Bay & Texas Hill Country. He’s a two-time National Master Builder of the Year, was inducted in the Austin Builders “all of Honor” and his company Zbranek & Holt Custom Homes was recognized three times by the Austin Business Journal as “Custom Builder of the Year.” Zbranek is also a Past President of both the Greater Austin and Greater San Antonio Home Builders Association. For more information visit www.zhcustomhomes.com

27

[Savvy Trucks & Toys]

Looking for a Mid-Sized Truck?

Your Driving Personality Will Determine the Right Fit

By Beverly & Steve Smirnis

For 2021, the Ridgeline received substantial styling changes to give it a more squared-off and a more rugged look that better matches its truck capabilities, which include the fact that Ridgeline has a payload capacity of 1,509 to 1,583 pounds and the largest standard bed in its segment.

Everything in front of the A-pillar is new, including a taller hood, a larger grille and and redesigned headlights.

T

At the rear is a new bumper design with a dual exhaust.

To further toughen up the he mid-sized trucks are just about as big as some of the older model half tons but they’re still efficient and maneuverable and for the most part less expensive.

The Honda Ridgeline is constructed with a strong and highly rigid unibody, which together with the fully independent suspension and torque vectoring

looks Honda, has brought out a HPD (Honda Performance Development) appearance package, a $2,800 add-on that gives you squared-off fender guards, special graphics and bronze-colored wheels.

all-wheel drive (now standard on the 2021 model) gives it superior on- and off-

All the things that people like about the

road handling, and a quiet and comfortable ride. The critics have long given the

Ridgeline remain—lots of standard tech

Ridgeline a good ranking in the midsize truck category for the ride and handling

features, a dual-hinged tailgate that swings

and for its cabin, but it has also garnered a nearly equal amount of criticism

both down and out, a bed with lockable in-

because it looked more like a minivan with a pickup bed than it did a pickup truck

bed 7.3 cubic-feet storage compartment

and it doesn’t have the off-road capability and true truck-like features of its body-

that can carry 4-foot-wide objects between

on-frame contenders in the midsize pickup segment.

the wheel wells, and a 60/40-split rear seat

28

base that flips up so you can stow things on the flat cabin floor.

It also retains a naturally aspirated 3.5-liter V6 engine putting out 280 horsepower and 262 pound-feet of torque with a 9-speed automatic transmission, rated to tow up to 3,500 pounds or 5,000 pounds with upgrades including AWD. The Ridgeline starts at $37,655 and you can spend up to $43,920 for the Black Edition.

The Ford Ranger starts at $24,820 with the Tremor package vaulting the price upwards of $42K. If you’re comparing a Ridgeline to a Tremor, your choice will come more down to personality than price, however. High-strength steel frame and frame-mounted steel bumpers (included on 4x4, FX2 and Tremor) qualify the Ranger as another Built Ford Tough® work

ride is stiffer, but the big bragging point for the Tremor is that, unlike the competitor’s off-road trucks, it doesn’t lose any towing capacity. Just like all the other Rangers, the Tremor can tow up to 7,500 lbs. when properly equipped and it still has a payload of 1,430 pounds.

truck with payload capacity of 1860 pounds. Ford’s turbocharged

The Ridgeline and the Ranger Tremor are two extremes, exhibiting that

2.3-liter 4-cylinder engine powers the Ranger, generating 270 hp

the midsize truck segment has something to offer for all types of drivers.

and 310 lb-ft of torque, and it’s paired to a 10-speed automatic transmission.

The new SuperCrew four-wheel-drive Ranger with the Tremor OffRoad package gets the adventurous driver revised suspension and underbody protection along with added ground clearance, Fox shocks, 32-inch all-terrain tires, recovery hooks and more.

The fatter tires, better shock absorbers and new rear springs help the Ranger ride and handle a little better on-road, too. Yes,

Beverly & Steve Smirnis are members of the Texas Auto Writers Association and the Texas Motor Press Association, reviewing vehicles and casting their votes at driving events where the Truck of Texas, Car of Texas and Off-Road Truck of Texas are some of the titles awarded. Follow their automotive blog on TheSavvyList.com/TheSavvyDriver

retaining all of that towing and hauling capacity means that the

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Specializing in E xceptional Architectural Photography G R A P H I C D E S I G N • C O M M E R C I A L P H OTO G R A P H Y • W E B S I T E D E V E LO P M E N T • V I D E O P R O D U C T I O N

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Contact me for a quote on your next project:

210.789.2033

www.jasonroberts.biz

Featured image photographed for Everview Homes at the 2021 Parade of Homes in Belle Oaks.

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