Thursday, July 02, 2009

Home Building Labor Costs -- Controlling Them.

Most home building construction projects are estimated based on the prevailing cost of materials and the hourly wage to repair, install, or construct the project. Most contractors know their crews’ production rates and can estimate with accuracy.

However, some conditions that affect building costs are out of the contractor’s control. Material prices, for instance, rise and fall in accordance with the nationwide or worldwide supply and demand of lumber, cement, and raw materials. Production will also change with jobsite conditions, which can change by the hour (in the case of bad weather) or by the job (if there’s a shortage of materials, or if part of the work must be done from scaffolding or ladders).

Working conditions have a major effect on labor. If you’re lucky enough to be working with highly-experienced tradesmen on a perfect jobsite in ideal weather conditions, you should have an easier time estimating labor costs. But if the weather is constantly changing, new workers are being added to your crew, or if you have to match materials to what’s already installed, your crew isn’t going to perform at their usual rate. Before you estimate the cost of labor on your next home building project, look over this list to see if any of the conditions shown could affect your labor output.

1. Hot or Cold Temperatures: Add 10 to 15 percent to labor when working temperatures are above 95 degrees or below 40 degrees F. People just can’t work as efficiently in extreme temperatures.

2. Confined Work Spaces: Add 15 to 25 percent to labor when work needs to be performed using ladders, scaffolding, or in a crawl space.

3. Height Factor: Add 1 percent for each 10 feet of height that material must be lifted above ground level.

4. Tradesmen Skill Level: Add 5 to 40 percent for tradesmen with below-average skills.

5. Small Jobs: Add 30 to 50 percent to small jobs where fitting and matching of materials is required, adjacent surfaces have to be protected, and the jobsite is occupied during construction.

6. Major Disaster Work: Add 25 to 50 percent for work done following a major flood, fire, earthquake, tornado, or hurricane. Skilled labor may be in short supply and you’ll have to settle for whatever’s available – and pay more for it too.

7. Difficult Conditions: Add 10 to 35 percent for demanding specs, rigid inspections, a demanding owner or an inexperienced architect.

While estimating construction work is a difficult skill, identifying workplace conditions can help you in determining a realistic labor cost of a job. Never make your estimate solely from the plans. Always visit the jobsite to determine actual conditions.

For other varibles that affect the cost of construction look through the practical estimating guides available at http://www.craftsman-book.com/ .

Wednesday, June 24, 2009

Electrician's Exam -- Tips for Passing

Most communities now require that any electrician working without supervision must be licensed. For larger electrical construction projects, many states require the certification of journeyman electricians as well as specialty electricians, such as splicers of high-voltage cable. This licensing trend is increasing as more states recognize the need to protect homeowners from incompetent electricians.

The Electrical Exam
Just about all states now require that electricians pass a demanding exam. These exams are a good test of the electrical knowledge of each examinee. The exams usually center on, and make reference to the National Electrical Code and questions in the exam often include many obscure code references that require genuine Code knowledge, not just common sense. These are hard tests to pass, but there are secrets to studying that can offer you an edge.

The first stage in preparing for your electrical exam is to check with your state board for the requirements, recommended study material, and how to apply. If you meet the license requirements follow the links to find out where the exams are given and the study material required. Often the whole test application process can be done "on line" thorough your state licensing board. To find your state licensing board go to: http://www.contractor-license.org. It gives licening information for all states and lists web sites of where you can apply and sometimes it lists what is required.

Once you have set your exam date you will probably want to prepare for the test. There are probably plenty of schools in your state that will be happy to take your money and spoon-feed you electrical knowledge to help you pass the exam. But you may be able to save your money, study on your own and pass the exam with flying colors. Most electricians who fail the exam, know the material, but do not know how to study properly.

By spending a few nights a week studying for the exam you will quickly find yourself growing more familiar with the statutes of the National Electrical Code. Getting a license should be a goal that you set for yourself; it is a key to your future -- a satisfying, steady, well-paying career in the electrical industry. As you study the NEC and the other required references, highlight important points with a marker. You may want to buy tabs that mark the important sections of the NEC so that you can find them quickly during the open book exam. Speed is important; as you may be able to spend only have two to four minutes for each test question, so you will want to stay focused. You can find these tabs at: http://craftsman-book.com/products/index.php?main_page=cbc_product_tool_info&cPath=10&products_id=466

Effectively studying the NEC Learning to read and understand the NEC is like learning a foreign language. You need to understand the basic structure of the language, study the words, and how those words are used in phrases, as well as the pronunciation. Having learned the basics, you try your hand at communicating, but at first, all you can manage are short phrases because you don't know how to put the words together in a complete sentence. For that, you need to study the rules and understand the subtle nuances of the language -- and then practice.

What to expect on the Examination
Most electrical exams will include questions on the NEC, general knowledge of electrical practice, theoretical questions, and questions on local ordinances. The questions on the NEC including rules and design calculations comprise from 70% to 80% of the exam.

The people compiling the examination maintain a bank of several hundred questions covering each test subject. Questions are selected at random. The format of the actual exam and the reference material allowed into the exam room may vary with each locality. Typically, an applicant is allowed six to eight hours to complete the exam. Applicants are usually required to report to the examination room at 8 a.m. where the proctors explain the rules of taking the exam. Once the exam begins it continues until lunch -- when there is usually an hour break.
Sometimes it may seem like several of the answers could be correct, but only one of them will be. Use the process of elimination to find the actual correct answer.

Tips on scoring higher A good way to score highly is to pace yourself. As the exam starts, take a few minutes to look over the number of questions given in the exam and figure out approximately how much time you will have to spend on each one. When answering the questions, if an answer you are not sure of, skip the question and move on. Once you complete all the questions in the exam booklet that you know the answers to, return to the difficult questions that you skipped. When you have finished these, take a few minutes to review all your answers.

Using this method should help you increase your score and keep you from fixating on one question while the time passes, and the exam ends, and you're not finished.

Anyone who installs wiring should consider making more money as a licensed electrician. You can find more helpful information on passing the electrician's exam by going to:http://www.electrician-exam.com/ .

Thursday, June 18, 2009

Contracts that are Almost Legal in all 50 States


Browse the Web for “construction contracts” and you'll see braggadocio about some boilerplate contract being "legal in all 50 states."

Claims like this show up on Web sites run by savvy companies with good credentials -- who should know better than to make these claims. Every state has the right to set unique requirements for construction contracts. And nearly all have. It's simply foolish to claim any construction contract is "legal in all 50 states."

You can take this to the bank: There's no home improvement contract that's legal in all 50 states. I'll go one step further: There's no contract for residential construction that's legal in all 50 states. You won't even find a contract for commercial construction that's legal in most states. That's not the way it works.

Construction contract law varies from state to state the same way income tax law varies from state to state. Imagine the reaction if you tried to file a New York or Texas income tax return with the Montana Department of Revenue. You'd probably be breaking the law in two states.

It's the same with construction contracts. Nearly all states require specific disclosures, set unique limits or void certain types of clauses in construction contracts. No two states are alike. And most states impose heavy penalties for doing construction work under a contract that doesn't meet state code. Fines up to $1,000 are common, as is the threat of jail time.

Even if you aren't concerned about fines and jail time, consider the impact if you get into a dispute before collecting final payment. The attorney for your client won't be impressed with your "legal in all 50 states" contract. More likely, you'll discover that the contract is either partially or totally unenforceable under state law. Game over! You lose. Run, don't walk, to the nearest exit. You're not going to collect another dime on that contract. If opposing counsel is charitable, you'll escape discipline from the state board. Persist and you'll get an invitation to do the perp walk at a state hearing.

When you see the claim, "legal in all 50 states," I recommend thinking "probably not legal in any state." The latter is far more likely than the former.

So how do you judge if some boilerplate contract is legal? If you're paying the $10 to $150 that most vendors change for a download, you've got the right to know: Is it really legal in my state?

I can recommend a Web site. It's free. Construction-Contract.net has a good selection of state-specific home improvement, residential and commercial construction contracts. You can download the contracts in Rich Text format and change them on your word processor to fit the specifics of your job. Even better, the site lists laws in each state that set minimums for construction contracts. Before buying any boilerplate contract or contract package, compare what the law requires in your state with what the vendor is offering. If the vendor's contract comes up short, save your money.

Tuesday, May 12, 2009

California Accessibility Standards Define Litigous Grounds


Have you ever walked into a public restroom in California and wondered about the odd placement of a mirror on the wall or the unusual spacing of fixtures? If so, you’ve gotten a glimpse of what California builders, remodelers, owners, developers, architects, as well as planning and code officials, are required to address every time they build, remodel, or repair a public facility – any building open to the public.


By law, they must follow the most-current accessibility requirements in California’s Building Code (Title 24), the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities (ADAAG), and related materials. These California requirements, which are much stricter than those in the Federal ADA (Americans with Disabilities Act), apply to all commercial and public buildings and public areas in the state. This includes restaurants, theaters, factories, hotels, motels, just to name a few.

These accessibility standards require that all members of the public, virtually without exception, have access. The design must be approved by local zoning boards before the plans are approved. Accessibility standards apply not only to new construction, but may be applied to remodeling or renovation of existing buildings.

The 2000 Census identified nearly 6.2 million Californians as having a disability. By the year 2010, this number is expected to increase to 11 million. California state government is responsible for providing service to all citizens, and accessibility laws ensure that these services are extended to those with disabilities.

The Americans with Disabilities Act (ADA) was enacted in 1990 to improve access for the disabled to almost every public business. Buildings are required to have barrier-free entryways, toilet facilities designed for wheelchair access, signs in Braille, low countertops, obstacle-free passageways, reserved parking, and numerous other features. Despite the enactment of the ADA, many in the disabled community report that a majority of businesses have made little or no effort to comply with this 15-year-old law.

For this reason, many people with disabilities have made it their cause to ensure that the law is followed. While most disabled customers are motivated by a sincere desire to ensure access for all, there is a small group of opportunists who have partnered with a few law firms to track down and file suit against any business where they can find even the most trivial violation. These law firms appear to be responsible for the majority of ADA lawsuits – in fact, there have been over 1,000 ADA accessibility suits filed by just one plaintiff.

Maybe California’s fertile litigious society is providing fuel for this wildfire of lawsuits. Two California ADA statutes provide either $1,000 or $4,000 in minimum damages, plus attorney’s fees, for each successful claimant. An especially-aggressive claimant can maximize these awards by individually listing each condition he finds. Some file for damages against dozens of businesses at a time. This is the plight small business owners find themselves in. Many of them, when faced with such a lawsuit, end up just handing thousands in cash to the complainant, rather than fighting a court battle that will likely cost them even more.

Part of the problem is, ironically, that California’s standards are higher than those mandated by the Federal ADA. In some cases, state and federal regulations are in direct conflict. A business can follow ADA requirements to the letter and still be in violation of California law. It’s estimated that only 5 percent of California’s public buildings are in complete compliance.

Few building inspectors and architects are fully informed on every nuance of state compliance standards. The ADA and California requirements for building accessibility are given in intricate, technical detail in state pamphlets. However, without any illustrations or diagrams, where the contractor can see how to build to those requirements, many are just making their best guess. Add to the misinformation and flawed interpretation the law firms that make their fortunes by sending clients in wheelchairs to find accessibility violations, and you have a big problem for California businesses and the contractors who build for them.
There is a book that explains all of California's Accessibility Standards. It is filled with large, clear illustrations and descriptions on what is required to meet these standards. You can find it at:

Tuesday, April 14, 2009

California Construction Contracts






What's required in a California Construction Contract?

A heck of a lot.

In 2006 California Construction Law changed and became much more complex. A California construction contract has to be in 10 point type, has to include the name and address of the owner, the contractor, and the lending agent, and the contractor's license number. It has to list the contract price, the downpayment, the estimated start and completion dates, the general liability insurance coverage, a note about how extra charges will be handled and a disclosure for the owner on Mechanic's Lien Waivers. This is just a start of the requirements.

For free California construction contracts that you can download and use go to:
http://www.construction-contract.net/list.php?state=CA

For more easy-to-understand information on California construction contracts visit:
http://www.docstoc.com/docs/document-preview.aspx?doc_id=3011099Add Image

Wednesday, April 01, 2009

Contractors Affected by Illinois Laws


New Illinois laws intended to protect homeowners are making it really tough on contractors.


The Illinois Home Repair and Remodeling Act requires that contractors provide a written contract for every residential remodeling or repair job over $1000. The contractor, as well as the homeowner, are required to sign and date a contract, as well as a State brochure Home Repair, Know Your Consumer Rights.


If contractors operate a business under an assumed name they're liable for a $2,500 fine and a year in prison. If contractors take on a home improvement project and don't finish it on time, the homeowner can demand a refund on any money paid. If the contractor doesn't pay this money, he faces a suspension of his business license and a fine up to $50,000.


Illinois contractors must be careful what they say to their customers. False promises can get them up to a year in jail under the new Illinois Home Repair Fraud Act (HRFA). Under this law contractors are also liable for making false excuses for non-performance, failing to employ qualified personnel (forget about your brother-in-law), or violating the building code.


What can contractors do to protect themselves? They can write contracts that comply with the State of Illinois requirements. Unfortunately, contracts that cover these requirements can't be found in the local stationary store. Contractor's can consult a lawyer and have a new contract drafted for each job -- but that's an expensive option for small remodeling contractors.


Only a few contract writing programs even offer options for these Illinois requirements. One of them, Construction Contract Writer contains all of the options needed to protect the contractor
as well as provide the ability to list and cover all the possible problem areas of the job -- before work begins. Contractors can find sample Illinois contracts that they can download and use for free at http://www.construction-contract.net/list.php?state=IL.

Friday, March 27, 2009

New State Laws Effects on Construction Contracts

Construction Contracts –Unusual State Laws Stack the Deck Against Contractors
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New state consumer-protection laws are making it really tough on contractors by requiring specific disclosures and statements in their home improvement and construction contracts. The days of “hand-shake” agreements, or boiler-plate contracts are over. Failure to include state-mandated disclosures or statements in a construction contract can result in fines, or make any construction contract null and void.

Most contractors may be unaware of these state changes in the laws affecting their construction and home-improvement contracts. Contractors typically run small businesses and put their emphasis on building to state codes rather than keeping track of legal changes required by state contract law. Many contractors still do business on a handshake or use a simple “boiler-plate” one-size-fits-all contract that may omit specific state requirements.

Some of the toughest states on construction contract requirements are Pennsylvania, Texas, New York, New Jersey, Florida, California and Hawaii.

Pennsylvania requires that a long list of disclosures to appear in a construction contract – such as start and finish dates, names and addresses of subs, insurance coverage and a phone number for Pennsylvania Bureau of Consumer Protection. Omit these disclosures and your construction contract is unenforceable in Pennsylvania. Also, any Pennsylvania construction contract that includes one of the eleven clauses commonly found in most home improvement contracts, renders the contract unenforceable. Failure to comply is a misdemeanor – if the contract is for a small job under $2000. But if the job is a larger job – for over $2000, a violation is a felony. The only contract writing program I've found that contains the disclosures required by Pennsylvania law is Construction Contract Writer. http://craftsman-book.com/products/index.php?main_page=cbc_product_software_info&cPath=43&products_id=548.

I've also found that there are even free samples of the Pennsylvania contracts that you can download as RTF or PDF format at http://www.construction-contract.net/.

Texas
requires that contractors deliver a 2-page disclosure statement before the construction contract is signed. Texas Property Code requires a notice in contracts for building or remodeling a residential property that qualifies as a homestead. Forget this notice and you are liable for up to three times the actual damages – plus attorney’s fees. Arbitration clauses in Texas construction contracts have to be in 10-point bold type, or they’re void. These type of stringent requirements are hard to find in most boiler plate contracts. You can find some free sample contracts made especially for Texas at http://www.construction-contract.net/. If you download the RTF format you can customize the contract in MS Word to fit your job requirements and be fairly confident that you're complying with Texas laws.

New York
requires a long list of specific disclosures in contracts for home improvement, home repair, construction of custom homes contracts Failure to comply brings a fine of $100 to $2,500. If you head to http://www.construction-contract.net/list.php?state=NY you'll find a plethora of contracts for home improvement, custom homes, public works, and more that you can customize for your needs with the help of your word processor.

New Jersey requires all home improvement contracts for more than $500 be in writing. Failure to comply can result in offering the property owner a full refund, or awarding three times any damages caused. What a pain. Every small job requires a contract. Luckily, there a number of these posted on the Web that you can customize on your computer. Find them at:

http://www.construction-contract.net/list.php?state=NJ .

Florida
requires a 3-day right to cancel in your contract or you’re subject to a $1000 fine. Omission of the construction industry recovery fund notice in a contract risks a $500 fine. Florida also requires that contractors update their license with additional study. You can avoid the fines listed above by using a free contract downloaded at:
http://www.construction-contract.net/list.php?state=FL

California
requires specific disclosures in every contract. Omit these disclosures and risk losing your contractor’s license. Without these specific disclosures, the contract becomes completely unenforceable. In fact, leaving out some disclosures can bring disciplinary action by the California State License Board. Yet, many contractors go blissfully on their way using boilerplate contracts from the stationary store -- not realizing that their license could be revoked should something go wrong. To get the disclosures you need to comply with California contract law go to: http://www.construction-contract.net/list.php?state=CA

How can contractors protect themselves? Many large construction companies hire or retain lawyers to keep their contracts within the legal boundaries of state law. Smaller contracting businesses may just try and keep the customer happy to avoid trouble and potential disagreements. This may work if you don't mind working for free. Chances are, some day you'll do a job for the customer who knows contract law, or consumer protection law, a little bit better than you. Hopefully, they won't use that knowledge as leverage to take advantage of your laxness in not keeping your contracts current with your state laws.

My mom used to tell me that an ounce of prevention was worth a pound of cure. Keeping your construction contracts current with your state's consumer protection acts may save you plenty.