Wednesday, December 14, 2011

How Prepared is Your Community for a Natural Disaster?

Improving your home for lifestyle is one thing.  Preparing your home, family and neighborhood for the inevitable natural disaster is something different entirely.  Housing not prepared for a major earthquake may become uninhabitable.  It is worth your time to have a structural assessment performed in the interest of protecting your investment.

In 1976, The Uniform Building Code adopted standard construction methods for wood frame homes, followed by incremental improvements to the code through 1994.  Homes built since 1994 are the most resilient structures due to the seismic requirements detailed in the current building codes.

In the Seattle area, single family residences most susceptible to damage from an earthquake are built from 1947 to 1988, depending on methods, materials, regulations, and soil types of their construction.  Some local municipalities offer contractors specialized training to perform seismic retrofitting on existing homes.  An internet resource, http://www.seattle.gov/emergency/info provides excellent information for professional or do-it-yourself residential retrofitting.

Over the past few years, I have encouraged our staff to become more aware and better prepared at home and at work.  Members of our company are represented in three prominent community groups: COAD (Community Organizations Active in Disaster), MYN (Map Your Neighborhood), and recently  Seattle’s Earthquake Home Retrofit Contractors, referenced in the above link.  If you choose not to explore the websites referenced herein, there 5 basic steps to prepare for a natural disaster for you to be aware of at the least.

Step 1  Education
Understand how to prepare your home, family and neighborhood and get those people involved.

Step 2  Audit your home
The ground shakes and rolls during a major earthquake and can easily shift heavy objects.  Assess your home’s structural integrity and attach tall furniture to the wall.

Step 3  Audit your vehicle
An emergency kit should be in your vehicle to include water, food, cash, comfortable and warm clothing, prescriptions and other items for infant, elderly or disabled family members.

Step 4  Build your 72 hour kit
You should have a disaster preparedness kit in your home for at least 72 hours of survival for all occupants of the home.  Envision worst case scenario of 7.8 magnitude quake during a winter storm.

Step 5 Get involved
Host a Map Your Neighborhood program among your nearest 15-25 neighbors.  More information available on the Consumer Resources pages of our website.

In the event of a natural disaster, the City of Redmond has a radio station that will be broadcasting alerts on AM 1650.  Additional resources are: http://www.govlink.org/3days3ways and http://everyoneprepared.org/.

Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 begin_of_the_skype_highlighting            (425) 885-9871      end_of_the_skype_highlighting www.tenhulzen.com.

Sunday, November 27, 2011

Feeling The Impact of the Trees

Remember the winter wind storm of 2006?  High winds knocked trees down across roadways, power lines and onto houses. When the ground is saturated with melted snow and rain, trees are more easily uprooted.  Here are some steps to prepare and respond to the threat of a tree strike on your home.

Assess your liability.  Identify the trees that are most likely to hit your house; especially those that would hit if they were to fall northward or eastward (the primary wind direction is out of the southwest).   Then verify your home insurance policy covers the threats of a wind storm.

Newer housing developments are more susceptible because when the forests are cleared, hundreds of trees that grew protected are suddenly exposed.  As a result, a single home in Trilogy had 17 trees crash down on it in the 2006 storm.

Hunker down.  Modern houses are designed to hold together in the wind, but a large tree could easily slice through a roof.  If you’re home during a wind storm, make sure you are in a lower floor, furthest from the threat.  Set up overnight accommodations in the basement or living room, especially since the highest winds are generally during the night.

If you are not able to be home during a wind storm, ask a neighbor or trusted resource to check your home for any resulting damage.  In the winter time, extended exposure to the elements means freezing pipes and cracking of finish materials.  The faster the tree can be removed, the better.

Take action.  Contact your home insurance company immediately, followed by contacting your contractor.  Your home will be exposed to the sky and you may be without power.  An experienced contractor will take photos, remove the tree and tarp the affected areas of the house prior to the adjusters arrival.

Following last year’s storm, there were so many claims that insurance adjusters were called in from other states.  Some took up to 2 weeks to respond to those homeowners who called only a day or two after the storm.  Most insurance companies will compensate for reasonable hotel rates for the duration of construction.

Your contractor should be able to provide a repair estimate within several days, and negotiate with the insurance adjuster on the homeowner’s behalf. 

Visit the Consumer Resources section of our website for case studies of the 2006 winter storm and links to valuable information on the web.

Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 www.tenhulzen.com.

Tuesday, November 8, 2011

It's a Big Stakes Gamble When Your House is On The Line.

Most homeowners want to maintain or improve the value of the investment in their home.  When basing the improvements on quality and aesthetics, professionally performed remodeling improvements generally add more value to a home than those performed by the DIY (do-it-yourselfer).  The question is: “can more be gained by spending less?”  And more importantly: “what level of risk am I willing to take?”

General contractors are essentially a risk buffer, required by law to carry general liability insurance.  Coverage varies significantly with multiple exclusions, so be weary.  Much like other service professionals, general contractors bring together all the elements of performing the required work through a proven system.  The best subcontractors and suppliers recognize the benefits of this consistency, and choose not to perform work directly for the DIY.  Some suppliers share similar philosophy, operating only by extending credit to contractors.

In addition to not having access to the best craftsmen or products, DIY’s accept the entire risk for construction liability and property damage.  If a contractor or friend is injured while work is being performed on the house, the homeowner is entirely liable for workers' compensation payments and average case six-figure lawsuits.

Protecting your home is more than improving its value – it’s also minimizing your risk.  Washington State Labor & Industries maintains a list of registered contractors complete with claim history.  Look up Hiring a Contractor at lni.wa.gov for more information.

Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 begin_of_the_skype_highlighting            (425) 885-9871      end_of_the_skype_highlighting www.tenhulzen.com.

Trade Contractor of the Year (In Review)

This list represents the recognition of superior service and performance for Tenhulzen Remodeling, Inc, as tallied by 5 criteria among our production staff.

1996 - Steve Hudy - Hudy Plumbing & Heating
1997 - Gary Kolstad - MacDonald-Miller Industries
1998 - Matt Seirer - Bel-Red Electric
1999 - Todd Csapiewski - Skico Electric
2000 - Gary Kolstad - MacDonal-Miller Industries
2001 - Jerzy Mamprejew - Best Plumbint & Heating
2002 - Mell Barber - Barber's Drywall
2003 - Ken Watson - Double K Plumbing
2004 - Tom Holt - Holt Tile
2005 - Jim Askervold - Sutter Home & Hearth
2006 - Bill Diggs - Bill Diggs Carpet Service
2007 - Pavel Yerin - Quality Tile, Inc.
2008 - Dale Kaminski - Redmond Roofing
2009 - Sean Cummings - All Pro Painting
2010 - Ed Berg - Sterling Electric, Inc.
2011 - Fred Langford - Langford Plumbing

Without your dedication to upholding TR expectations for customer service, our shared success could not have been possible through this challenging economic cycle.

Friday, November 4, 2011

Trade Contractor of the Year



Congratulations to Langford Plumbing
2011 Trade Contractor of the Year Award
Fred Langford (left) and Marshall Emmons, Northwest Cascade (runner up)



This morning marked the 11th annual Tenhulzen Remodeling annual Trade Contractor Breakfast.  Our continuing goal is to improve customer service through strong relationships with our Trade Contractors and Vendors.


We were encouraged to receive positive feedback from participating residential specialty trades.  For the first time in 3 years, more than half the companies represented reported increases in revenue and backlog.

Monday, October 31, 2011

Happy Halloween from TR

All dressed up and nobody to scare - October 13, 2011.
Witches brew with dry ice at the center table glowed under black lights and eerie strobes surrounded by black plastic draped on the walls with glowing iridescent paint.  That was the sight of Redmond's Haunted Conference Room, covered partially by cotton cobwebs and frightening accouterments.

The Tenhulzen Remodeling "Summer's Dead" party at the home office in Redmond, WA was a great success.  Pictured here are the costumed guests, practicing nearly 2 weeks before Halloween.  The remaining 35 folks who enjoyed the festivities helped vote for the best adult and child costumes.

Thursday, October 6, 2011

Kitchen Cabinetry Enhancements

Today's kitchen cabinets are becoming more sophisticated than ever, with consumers seeking to make the most of every nook and cranny.  Here are some of the newest trends in kitchen cabinetry:
  • Clean lines and elegant simplicity continue to be hot design trends, but while cabinet exteriors continue to follow a "less is more" aesthetic, interiors are becoming more important. As such, there's a growing focus on storage systems that make cabinet contents more accessible while maximizing space.
  • To further maximize space, designers are using toe kick drawers, and designing in cabinets to ceiling height to get more storage, as well as using taller wall cabinets or stacked wall cabinets.
  • While heavy ornamentation is out of vogue, many consumers still want personal touches, such as subtle curves and toned down ornamentation.
  • Rich finishes and custom paint colors are being used to give today's simple styles a bit more pizzazz. Other hot trends include higher-gloss finishes, dark stains, light paint colors and two-tone projects.
  • Consumers are more aware of environmental issues, but many seem willing to invest in green options only if they are cost neutral. "Healthy" is as important as sustainable, and the industry seems to be moving away from products that have high levels of formaldehyde. Bamboo and reconstituted veneer products provide sustainable options for the eco-minded.
  • In a more value-oriented society, stock cabinetry is being re-invented with increased offerings, while high-end custom lines are looking to provide lower-cost alternatives to increase market share. 

Traci Raises Bail Money

A huge thank you to:
Diane Bishop
Kelli Fiechtner
Carol Jones
Pat and Jack Tenhulzen
Mary Breilid
Christene and Tucker Jones
Tenhulzen Remodeling


MDA so much appreciates your generous donation!
As you may know, I took Matthew with me to jail and got this mug shot.
Matthew was thrilled to ring the money bell when someone made a donation for us to get out of jail.  Every time the bell rang, the crown of 87 people would all cheer.  He enjoyed the cheering so much that he ran up to ring the bell-  only to say he was just testing it. 

Amazing, at 3 years old, how he can manipulate an entire crowd!
Matthew learned a very important lesson at this event.  That if someone has a disability and looks different, they may be just the same as you and me on the inside.


Matt was afraid of Amber, age 12 (has had MD since she was 5) at first because she looked different.  As you can see from the picture, by the end of our short 2 hour stay, Matthew was sitting in Amber’s lap, giving her hugs and driving her wheel chair.  He will never forget how he made her smile and mentions this often.


Thanks again for donating to the MDA, this meant so much to me.
Take care and lots of love,


Traci Tenhulzen
, Office ManagerTENHULZEN REMODELING, INC.
  

Wednesday, September 28, 2011

How much would you be willing to sacrifice in your home if your lifestyle depended on it?

When consulting with prospective clients, we often use automotive analogies like: “remodeling by cost per square foot is like buying a car by the pound”; or “your decision to buy a Mercedes instead of a Buick establishes the value you place on quality, service and warranty”.  Car analogies like these can even delve further into lifestyle choices.  For example, I recently exchanged a Jeep Grand Cherokee for a Mini Cooper S convertible as my primary vehicle.  Needless to say, this made for a significant lifestyle change.  After relying on an ultra-compact vehicle for a couple years now, I realize that my desire for an SUV came more from what I was accustomed to, rather what I was really in need of: more fun with a lesser “footprint”.

Ironically, my personal story draws a parallel to what consumers are increasingly asking for in residential design.  Led by concepts published in Sarah Susanka’s book “The Not So Big House”, and fueled by the green building movement in the wake of the global warming concept, consumers are realizing the benefits of utilizing more of their home’s wasted spaces.  Whether for storage, accessibility or enjoyment, the little nooks and crannies that were once attics, stairwells or voids are filling up with creative and strategic uses for bookshelves, entertainment systems and wine cellars.  Multiple rooms are being combined to improve flow, and in some cases, homeowners are downsizing altogether by moving into condos and townhomes.  They are in effect making conscious decisions to have more fun with a lesser “footprint”.

I’ve been in enough homes to know that we as a society will fill the available space – often to the point we can’t park in the garage anymore.  The TV show Clean Sweep illustrates how we’ve been conditioned to believe the one with the most ____ wins and how little of it we actually need.  Try asking yourself: what’s it worth to me to improve the enjoyment of my home?  A qualified consultant can speculate what marketability those improvements might bear.

Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 www.tenhulzen.com.

Monday, August 29, 2011

Too Costly to Go Green?


Green diceSustainability is not a fad, but it does seem to be driven by market conditions.  While our customers don't question the increased energy codes (PDF), they tend to seek the best overall return on investment.

My rudimentary analysis concludes today's home renovation customer tends to be more interested in improving lifestyle than saving the planet

Agree?  Disagree?

Saturday, August 27, 2011

Off the Grid


With energy costs on the rise and fear of economic collapse, there's a real attraction to self-sufficiency.  Solar, wind, geo-thermal and use of alternative fuels have become more familiar in the last several years.  As these technologies start proving their worth over time, they will likely be adopted by the mainstream consumer. 

Corporate R&D departments are tapping into builders for information.  At the International Builders Show in 2009, Michael Tenhulzen was asked to be a member of a research study on residential solar energy.  Results were recently released for a product that will soon be competing with traditional solar arrays.

Selling energy back to the utilities is a more intriguing prospect than ever with rising energy costs and regulation.  Unfortunately, the mainstream market won't adopt the solar, wind and other energy conversion technologies until the return on investment becomes more favorable.  Currently, a solar array and battery system that can support the basic needs of a home overnight takes roughly 15 years to "pay for itself".  And then there's the argument about solar efficiency of Seattle's weather at the 48th parallel.  Wind farms along the Columbia Gorge and other wind prone locations are effective, but their residential counterparts are relatively costly compared to potential output.  When considering alternative energy sources, the less moving parts, the better.

There are a multitude of resources out there for becoming less reliant on "the system".  A good place to start is off-grid-living.com.  Of course, energy is only one component of becoming more self-reliant.  Water resources are threatened by drought, earthquakes and bio-chemical terrorism.  Try shutting off the water to your house for a day.  How would your family function?  It's worth investigating the possibility of drawing water out of the earth's natural filtration system.  Well water resources are more plentiful than we think.  A good well with a solar-powered pump may be the best investment in supporting life on your property.

In recent years, it seems a lot more people are interested in growing and raising their own food sources to reduce intake of potentially harmful chemicals and reduce cost of living expenses.  If your neighborhood can tolerate it, having some chickens and goats can support a healthy diet and provide natural fertilizer for the garden.  Read up on what soil types support what types of foods.  Then plan your yields according to your needs.  Many varieties of fruits and vegetables can be planted a month apart so they mature as they are needed.  Over the winter, dried, frozen and canned foods are depleted for re-stocking during the growing months.

Thinking about getting off the grid is a little like going back in time.  How did people survive before indoor plumbing?  Before electricity?  By adjusting your lifestyle to adopt some of the "off the grid" concepts, you'll find yourself less threatened by rising energy costs, food prices and the inevitable natural disaster.

Monday, August 22, 2011

Window Replacement Story

A close friend of mine decided it was time to replace windows in his home.  He contacted 3 window companies and a big box store for comparative analysis.  After receiving all 4 quotes, he called me over for advice.

Fenestration is a major component of the building envelope.  Best overall performance of the new windows is a consideration for energy costs and indoor air quality.  Although the window products were all vinyl, there were subtle differences that made big differences in which to choose.  To make the best decision possible, we made a list of pros and cons for each.  Since overall performance was not important, the list consisted of: manufacturer, installation method, installed cost, online customer reviews and warranty.

1.  Manufacturer.  There are an untold number of vinyl window manufacturers in the U.S.  Of those that have a northwest presence, there are only 3 brands that are commonly used by residential builders.  Because only one of the proposals included a top manufacturer, it received the best mark.

2. Installation method.  Most window replacement companies will cut out the existing windows and install new with no flange.  That is to say, the flange is cut off and the windows are fastened into the sides of the window opening instead of to the outer wall.  The flange is designed to be sealed to the sheathing before the siding system is applied.  Without it, a bead of caulk is all that prevents the opening from leaking.  Since method was not specifically stated, each of the 4 companies had to be queried.  Proper flashing at the top of the window and use of self-adhesive rubberized ice & water shield on the flange is best to prevent problems with air and water leaks.

3. Installed cost.  3 of the proposals included installed cost and 1 was for materials only.  This is important to know, because of the labor variable.  When a new window is specified to be installed with the flange intact, it requires the installer remove the adjacent siding and cut back the interior liner to accommodate the window thickness (vinyl windows are thicker than aluminum, but not typically as much as wood).  If it takes 1 hour to install a window without flange, it can take up to 8 hours to set the same window with a flange intact.  In many cases where horizontal siding covers an aluminum flange, the siding can be cut back in place to accommodate a picture-frame flat trim, which changes the look of the house.

4. Online customer reviews.  The internet has become a powerful tool for consumers who share their experiences with service providers and the products they choose to represent.  Although reviews were rather scattered, we were able to roughly determine that the lowest cost also had the highest percentage of complaints.  Interestingly, the highest cost had the best reviews.  My friend understands the value of service and ranked the pros and cons accordingly.

5. Warranty.  It turns out a “lifetime” warranty is not always for the life of the home.  Fine print revealed that some of the warranties do not cover installation method nor transferability to a new owner.  Sometimes the salesperson has not read the warranty of the product they sell.

This exercise proved there was really only 1 company from the field of 4 that was best suited for my friend’s home.  In the final analysis, the selection could have been made before wasting his time to meet all 4 estimators.  Because it was also the most expensive, he chose to save up for this investment and promised the company he would be calling them in the spring.


Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 begin_of_the_skype_highlighting            (425) 885-9871      end_of_the_skype_highlighting www.tenhulzen.com.

Wednesday, July 20, 2011

Be a Smart Gambler With Your Home

A casino is a good analogy for today’s market because the common notion is we are going to come out with less than we brought in.  Smart players, however, are improving their homes in your neighborhood today. Here are the reasons why they choose now to make their play.

In poker, you can choose to pass, fold, raise or call; the strategy being to make your hand look better than your opponents.  Similarly, there are only 4 things you can do with your home: live in it as is, list the home for sale, improve and remodel, or rent the property out.  The only choice to make your home look comparatively better is to improve it. 

Let’s say your home is worth $650,000 today and it could have been valued as much as $800,000 at its peak value.  You may have purchased it several years ago for $500,000 and still owe $300,000 on the mortgage.  Of the four options of play, most will choose to pass on any play until justified by what we think it should be worth when we are ready to sell. 

The smart player, however, invests $100,000 in improvements when competing homes are holding.  Mortgaging $400,000 at a lower rate on a $750,000 value is a smart play for the following reasons:

Cost of Money:  Loans are less costly and more prevalent than most people choose to believe.  Talk with your banker or see your contractor for a referral.  In most cases, overall costs can be reduced by leveraging the construction loan for the value of the completed project.

Tasteful and Balanced: Being careful to get the needed space, smartly designed without overbuilding the neighborhood.  The home that gets the most value on sale just “feels” right to the buyer.  The best remodels are those that look original to the house - as if the builder had only been wise enough to include it in the first place.

Leveraging Desirables:  Kitchen and master bath remodels do the most to add the lifestyle improvement value to a home and are averaging $80,000 and $50,000 respectively.

Planning for the Future: There are 50 million baby boomers in this country.  Over the next 2 decades, it is expected that the vast majority of them will want to stay in their homes through their “golden years”.  They will expect their homes to continue to function despite deteriorating eyesight, hearing and mobility. Be sure to apply elements of universal design and sustainability.  Doing so ensures a sound investment for your own enjoyment and for potential buyers of all ages.

Improving your home is a smart play when done appropriately and with the right goals in mind.  Assess the chip count in your neighborhood and talk to your contractor, banker and financial advisor about the risk vs. return with your investment.

Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 begin_of_the_skype_highlighting            (425) 885-9871      end_of_the_skype_highlighting www.tenhulzen.com.

Tuesday, July 12, 2011

One of the ways to measure a home’s efficiency is by the age of the vacuum tracks.

Bigger is not always better.  When a home starts to feel like its not functioning the way it is supposed to, the natural tendency is to add more space.  But more square footage does not necessarily mean a more spacious or efficient house.  Instead, consider transforming existing rooms into spaces with dual purpose.

Historically, homes have been built with specific-purpose rooms: dining room, living room, family room, etc.  So, what if these rooms were designed for multiple purposes?  Would our homes then need to be as large to accommodate the same functions and number of people?

A recent case study is of a family of 5, who wanted a media room added on to the back of the garage, adjacent to the living room.  Thorough consultation revealed that the family room, inside the front door to the right, was only used for holiday gatherings. This made for inefficient unused space that was a net loss in cost value of heating and furnishing the room.  “Everyone comes in the front door and turns left toward the kitchen and living room” reported the homeowner. As a result, an 8-foot diagonal motorized screen retracts into the ceiling of new custom library cabinetry surrounding the fireplace in the old family room.  And with the click of 2 buttons and a dimmable light switch, the $40,000 furnished library converts to a home theatre. “The family has been using the room a lot more” the owner later reported, happily adding that the efficiency of the home was improved without spending $100,000 for the addition.

Remodeling is a Green process.  Existing homes have an established footprint, reducing environmental impact.

Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 begin_of_the_skype_highlighting            (425) 885-9871      end_of_the_skype_highlighting www.tenhulzen.com.

Monday, June 27, 2011

Staying Put

Baby-Boomers have made it plainly obvious they do not want to spend their waning days in a retirement facility.  The residential construction community recognizes this and has geared up for  the Aging-In-Place phenomenon.  For nearly a decade, renovation experts with the CAPS designation have been accommodating special needs while maintaining a residential sense about the home's active areas.  

Flush floor plans with universal design elements are making it easier for people of all ages to function safely in their homes.  Products as generic as grab bars are becoming stylized to coordinate with popular lighting and plumbing fixtures, so they have become functionally aesthetic.  Coupled with appropriate lighting, a myriad of finish materials provide color and texture contrast to commonly used surfaces.

CAPS is an acronym for Aging In Place Specialist.  Basically, a remodeling contractor who has completed a 2-day course in technical specifics and sensitivity training for aging adults.  For more information about CAPS, visit our website.

Tuesday, June 21, 2011

Have You Hugged Your Contractor Lately?

If you are planning a home improvement project, your contractor will likely be an intimate part of your daily life for a significant amount of time.  Your experience with the project will be much better if you are prepared to develop a relationship.
 
When you consider all the places you spend your money, how many transactions are truly relational?  Do you send Christmas cards to the grocery store clerk, or visit your car salesman when he’s in the hospital?  Most people would never give a thought to these transactional purchases.  But what about a relationship-based service?  Your doctor, attorney or financial advisor are entrusted with enhancing your well being and therefore demand a certain level of personal relationship development.

The relationship the shopkeeper and service provider had to the consumer in simpler times established the backbone of the community.  These days, the relational-transactional gap has been significantly widened with acceptance of automated tellers, web accounts and e-commerce.  Today’s consumer generally prefers typing on the keyboard to picking up the phone. 

Remodeling contractors, in particular are very relationship-conscious and generally offer no more than digital brochures on their websites.  Initiating contact requires a phone call, followed by a conversation in your home about somewhat personal lifestyle parameters.  By entrusting this professional with the necessary information, they will be able to tailor your project to fit the needs of your family today and in preparation for the future.

Most importantly, a well developed relationship will open lines of communication, reduce confusion and meet expectations.  If all goes well, a good contractor relationship results in the highest compliment a customer can give – a referral.

Michael Tenhulzen, CGR, CAPS of Tenhulzen Remodeling in Redmond (425) 885-9871 begin_of_the_skype_highlighting            (425) 885-9871      end_of_the_skype_highlighting www.tenhulzen.com.

Tuesday, May 24, 2011

Proceed with caution when selecting a contractor

Improving your home is a sound investment if done wisely.  These days, it’s difficult to differentiate the Service to Value Ratio (SVR) of remodeling contractors.  So we must be cautious.  SVR is measured by the following formula:

cost of goods and services
-------------------------------      =     value of improvements
     risk of relationship

The cost of goods and services is reliant on a thorough and accurate estimate.  Consumers should check with a contractor’s references to verify the historical accuracy of initial budgeting or estimating.  If you receive a consistent message, factor accordingly for your financial planning.

Risk of relationship is a function of the contractor’s financial solvency and their commitment to customer advocacy.  For a contractor to be financially solvent, they should be debt-free and operating at a profit on every job.  Unprofitable businesses typically do not survive long enough to be able to service their customers.  Some may go out of business in the middle of a job.  Because only happy customers become advocates, find out what your prospective contractors are doing to retain customers and make them advocates of their services.  Consider the amount of risk you are willing to take with an unknown resource and work out the worst-case scenario for the purposes of this formula.

Value of improvements is the cost of goods and services, divided by the risk of relationship.  If the cost is low and the risk is high, chances are your value will be very low.  If the cost is high and the risk is low, then chances are your value will be high.  Because of these variables, value is a relative term.  High value is often perceived as lifestyle enjoyment and improved resale value.

Deals and discounts on consumer products are conditioning our buying habits for professional services.  The problem is not so much that there are fewer home improvement projects to be had, but that undereducated consumers get caught by surprise when they find out their contractor is not performing with their best interest in mind.

Protect your investment and proceed with caution.

Monday, May 9, 2011

How much green does it take to go Green?

If you have been considering improving your home with “green” products, you’ve certainly noticed the cost is considerably more than their standard counterparts.  Because the products and techniques are not yet mainstream, they do cost more.  How much more depends on quantities, dependencies and individual conscience.

The three major components of building green are: 1) energy efficiency (measured in both in the effectiveness of the climate control device and the ability for the house to maintain temperature), 2) renewable products (short growing cycle or made from recycled materials) and 3) sustainability (low maintenance and ability to operate “off the grid”).

When renovating an existing home, it is unrealistic to expect a positive return on a green investment.  The decision to reduce the “carbon footprint” of your home is largely based on your desire to be environmentally responsible.  The more green you are willing to go may lead you into a series of dependencies, which begs the question: where do you stop?

For starters, some good cost-to-value improvements include complete window replacement, high-efficiency furnace, attic insulation, Energy Star appliances, low-flush toilets and gas insert fireplaces.  Do some homework before selecting your solutions to avoid adding grief to the amount of green you are budgeting to spend.  Click the Consumer Resource tab on my website for tips on selecting a contractor.

For more information about this topic and a list of resources visit www.builtgreen.net.

Michael Tenhulzen, CGR, CAPS is President of Tenhulzen Remodeling in Redmond (425) 885-9871 www.tenhulzen.com.

Friday, May 6, 2011

Mothers Day deliveries

Moms rule the house.  Without them, our business would be entirely different.  It is for this reason that Tenhulzen Remodeling is proud to announce that over 30 of our selected customers from the past couple years received a special delivery today:  A Mothers Day flower arrangement and gift of our Silver Premier Residential Services membership.

Happy Mothers Day to all the moms within reach of this message.  Especially to my mother and to my wife.

Michael Tenhulzen, CGR, CAPS
President, Tenhulzen Remodeling, inc.

Tuesday, May 3, 2011

Saturday, April 30, 2011

Injured Reserves

These days, there's a running joke at TR about crutches for our field crew.

An icy parking lot in December claimed one for 6 weeks.  In late March, a routine arthroscopic knee surgery turned a 5-day recovery into 6-8 weeks. for another  And an ankle strain mid-April forced light duty for about a week for a 3rd.

Now our President will be going in for foot surgery on May 6th.  When he's off crutches in 5-6 weeks, we'll either have the best 3-legged race relay team, or looking for other uses for used crutches.



Best suggestion for use of old crutches recognized in the June 2011 Newsletter.

Friday, April 8, 2011

April e-zine

Tenhulzen Remodeling's April Newsletter is out.  Click here to view content.

Eligible Tax Credits
Doing More with Less
Aging Options
Get in the Loop
Earthquake Preparedness

Saturday, March 26, 2011

Aging Options

The Accessory Dwelling Unit (ADU) has become a popular alternative to senior living facilities.  This short video is an interview earlier this week with an ADU customer.  Construction completed in 2006 as an attachment to the existing garage.  This photo was taken mid-project.

Financing of an ADU is typically the elderly parents paying for the projects on their childrens' property.  The result is a transfer of wealth that offers multi-generational opportunities.  The ability to perform these long-term living spaces is a result of CAPS training for our design and sales staff.

Friday, March 25, 2011

Feeling Lucky? (after Japan)

As the month of March comes to an end, so does our "luck of the Irish".  Or does it?

The pattern of earthquakes around the Pacific Ocean's "ring of fire" causes some geologists to pick the west coast of the U.S. to be next, as indicated by this video.

Seismic retrofitting may help reduce the damage sustained.  At best, it should keep the foundation on the house.  Structural engineers and building inspectors deem a house uninhabitable if it has come off its foundation.

We recommend these resources:
Pacific Northwest Seismic Network
USGS - Past 30 days of Earthquakes
Earthquake Home Retrofit Contractors

Thursday, February 24, 2011

Analyzing the Risk of Home Improvement

One good thing about an economic recession is how consumers decide which businesses succeed, which ones struggle, and which ones fail.  Although our human response to failing companies is a deep felt sympathy, we also recognize survival of the fittest as one of the laws of nature. When it comes to home improvement, there are a variety of factors that determine which ones are destined to succeed and which are likely to fail.

Risk is typically measured in terms of potential for financial reward.   When assessing your risk of remodeling, however, an expanded range of metrics should be considered.  This article addresses some of the internal metrics renovation experts live and die by.  They include Lead Sources, Solvency, Profitability, and Customer Satisfaction Rating.

Lead Sources include all the ways prospective customers make contact.  This metric is indicative of how “visible” a company is.  Happy customers love to refer their contractor to their friends.  If a significant percentage of leads come from advertising alone, the contractor may not be providing adequate customer service.  Conversely, if relying completely on customer referrals, the circle of influence could dry up.  Similar to an investment portfolio, a contractor’s lead sources should be quite diverse.

Solvency is the company’s ability to sustain itself through careful planning, scheduling and job cost analysis.  Debt liability and backlog are indicators to how “healthy” a company is.  Needing a down payment today to pay suppliers for a prior job is a very risky business practice.  Instead, ensure your payment schedule is tied to the forecasted expenses for your project.  To reduce your risk, ensure your contractor is licensed and bonded, and allow your attorney to review the contract language.

Profitability is a function of sales price, minus cost of goods sold, minus operating overhead.  It differs from solvency in that each customer’s job should be accounted for independently from any others.  It’s good to know that your contractor will be profitable on your job to ensure they are able to warrant and service the product.  Furthermore, that they are consistently profitable on all of their projects.  This indicates good execution of their process, and supports solvency.

Note that in a competitive market, contractors will attempt to “under bid” the scope of work just to get the job.  In this case, the only way to become profitable is to up-charge the customer through the course of design or construction.  To reduce your risk of “budget creep”, query your contractor about the accuracy of their budgeting relative to the past several projects, and ask to speak with those customers about their experience.

Customer Satisfaction Rating is difficult to assess, unless performed by a 3rd party.  “Happy” customers are generally pleased to write a recommendation, whereas unhappy customers feel compelled to write a warning to others.  If you are skeptical about the written recommendations provided by the contractor, I suggest searching online resources for posted reviews.

Looking for the best deal is not as opportunistic as it was going into 2009.  Prospective remodeling customers are becoming less likely to shop contractors based on price.  It’s almost as if word has gotten around that the best deal expects the worst experience.

Risk assessment is all about knowing what you’re getting into before it happens to you.  In most cases, remodeling customers find there is one constant.  That is: you get what you pay for.

Tuesday, February 1, 2011

February e-zine

This month's issue features construction terminology and explores alternative lending solutions.

Monday, January 31, 2011

Tenhulzen Customer Gets A Free Ride

Traci and Michael Tenhulzen are volunteer alpine ski patrollers at Summit Central on Snoqualmie Pass.  Stabilizing and transporting injured snow riders is a no-charge service on the mountain.  In this case, the injured got more than they bargained for.

While actively patrolling on a Saturday afternoon in January, Traci responded to an incident.

Upon arrival, Traci and two other patrollers discovered the patient was suffering from a broken clavicle (collar bone).  After stabilizing the injury, the patient was carefully loaded into the toboggan in a seated position to improve comfort during transport. 

Traci climbed in the toboggan and secured herself back to back with the patient, who was taken into the first aid room and questioned for the required paperwork.  During the inquiry, Traci recognized the name and address as being one of our recent remodeling customers.  Michael arrived just as the injured's spouse came into the building.

Our bandaged customer smiled through the embarrassment  of the ordeal and said "I hope this doesn't end up costing more than our remodel."  Michael thought for a moment and replied, "I hope your remodel wasn't nearly as painful."

After caring for the public on a routine basis, it's nice to know familiar faces can count on us to take care of more than just their homes.