Building Strong Independent Dealers

COBRA Premium Subsidy Extended

2010-01-20T11:15:00.004-05:00

On December 19, 2009 President Obama signed into law the the Department of Defense (DOD) Appropriations Act, 2010 which includes provisions extending the COBRA premium subsidy that was enacted as part of the American Recovery and Reinvestment Act (ARRA) of 2009.

Under ARRA, individuals are eligible for the 65% COBRA premium subsidy for up to 9 months if they lose group health plan coverage because because of involuntary termination of employment between September 1, 2008, and December 31, 2009, elect COBRA coverage, and pay 35% of the full COBRA monthly premiums.

The DOD Appropriations Act makes three important changes:

1. It extends the deadline for the involuntary termination of employment to February 28, 2010.
2. It clarifies that eligibility for the subsidy is based on the date of the qualifying event (i.e., employment termination), not the date the individual becomes eligible for COBRA continuation coverage.
3 It extends the maximum eligibility from 9 to 15 months, both for those who became or become eligible by December 31, 2009 and for those who become eligible by February 28, 2010.

The DOD Appropriations Act also includes transitional provisions protecting those individuals whose eligibility for the premium subsidy expired before the extension (e.g., individuals whose period of eligibility began on March 1 and ended on November 30) and requiring group health plan administrator to notify them of their retroactive eligibility for the subsidy.

For employers, the extensions of COBRA premium subsidy eligibility mean that they will be filing Forms 941 claiming the employment tax credit for the 65% past IRS's originally expected end-point of the fourth quarter of 2010.

CSA Joins New Alliance

2010-01-20T10:17:00.002-05:00

With the mission to benefit companies doing business in the building supply channel by developing services and products that make them more effective, efficient and less prone to liability, seven leading regional building material trade associations have formed the Building Product Retailers Alliance.

Founding members of BPRA include CSA, Florida Building Material Association, Illinois Lumber and Building Material Dealers Association, Kentucky Building Material Association, Northwestern Lumber Association, Southern Building Material Association and Western Building Material Association.

“For years, the regional and state LBM associations have talked about the opportunities we’d have if we pooled our thoughts and resources,” said Bill Tucker, president of the BPRA and the Florida Building Material Association. “With this new alliance, we’ve created the structure to turn those opportunities into reality.”

The regional and state LBM associations have historically focused on providing products and services to building material dealers, and that will not change. The BPRA’s focus is on developing programs that benefit the entire building supply channel.

CSA's President, Jim Moody, serves as vice president for BPRA.

Registration Now Open for CSA/FBMA Joint Winter Education Conference

2010-01-20T09:42:00.005-05:00

The CSA/FBMA Joint Winter Education Conference will be held February 24-26, 2010 at One Ocean Resort in Atlantic Beach, Florida. Registration is now available online with Visa, MasterCard or American Express.

Craig Webb, Editor of ProSales Magazine will be leading a industry panel discussion with experts titled What's Next? This discussion will explore the movement towards building "green"; the construction of homes in the future; whether mandates for energy savings will decrease glazing; and will builders back away from panelization? Questions and comments from the audience will be addressed and this special program will be held from 9 to 11:30 a.m. on Thursday, February 25, 2010. CSA members Tom Hall and Kevin Hamblin will participate on the panel.

Jim Mathis, CSP, will be presenting a program titled Reaching Beyond Endurance, Re-Inventing Yourself for the New World of Work. This program will be offered Thursday, February 25 from 1:00 p.m. to 5:00 p.m. and will resume Friday, February 26 from 9:00 am. to noon.

CSA/FBMA registration fees include seminar programs, breakfasts, networking cocktail receptions on Wednesday and Thursday evenings, a luncheon and dinner. Rates are $250 for CSA/FBMA members; $350 for non-members; $500 for non-sponsoring associates and $125 for spouse/companions.

Should you need overnight accommodations, CSA/FBMA has secured a $145 per night rate with One Ocean Resort & Spa. To register for the CSA/FBMA Joint Winter Education Conference, download a registration form or reserve your room at One Ocean Resort & Spa, click here.

CSA thanks Pennsylvania Lumbermens Mutual Insurance Company and Plycem USA, Inc. for sponsoring this year's conference.

Analyze Your Expenses and Salaries

2010-01-20T09:24:00.002-05:00

A couple of years ago, CSA created a state-of-the art program for analyzing business costs for our roundtable members. We know that not everyone is comfortable in the roundtable setting, so now we've adapted that program for use by individual companies. We've also enhanced it to include a salary survey.

The program is web-based and meets or exceeds all industry standards for security. Your confidential numbers remain confidential -- no one else sees your numbers or even knows you've entered numbers into the system. Once you enter your data, you can compare yourself to our regional average and the national average through nearly 90 charts and graphs for just about any ratio you can imagine for our industry.

Our counterpart associations across the country have agreed to participate in this program, so our national averages should be quite valid. This program has replaced the Cost of Doing Business Survey which previously was used in our industry.

Cost is $200 per company. For more information, contact Diane Rountree at dianerountree@gocsa.com or (678) 674-1860.

OSHA Back on the Prowl

2009-12-22T09:24:00.003-05:00

Jim Moody, CAE
President

We’re starting to hear a lot about OSHA ramping up inspections and rule-making. I suppose this was to be expected given the change in power in Washington.

Here are some facts we know:

• OSHA is adding 130 new inspectors nationwide in the coming year.
• Already, 31 new enforcement agents have been put on duty in the Southeast.
• A new rule on crane operation will be published soon. We’ve been working through the NLBMDA to make sure that our industry isn’t saddled with crazy new regulations, but we won’t know for sure whether we were successful until later in the year.
• OSHA is particularly tuned into combustible dust (like sawdust) and silica (which could be emitted as particles when crushing stone or cutting things like cement fiber board).
• Clear definitions of what levels of noise are dangerous have been withdrawn, leaving more latitude to OSHA inspectors to make a subjective determination.

If you don’t have your safety ducks in a row, now is a good time to make changes. While there is no guarantee you will be inspected, it is reasonable to assume that the chances have gone up. There are a variety of resources available to assist with safety. The cheapest first step is to seek a mock OSHA audit from CSA. Contact Larry Marler (larrymarler@gocsa.com or 770-331-7026) if you’d like to schedule a visit.

CSA also developed a safety manual in 2007, which is still relevant today. All CSA Self-Insured Fund members were provided a copy; for non-Fund members, it’s available for a small fee. The manual is provided on disc so that you can select the chapters pertinent to you, insert your business name, and create a customized safety manual for your own business. To order, contact Diane Rountree (dianerountree@gocsa.com or 678-674-1860).

Keep in mind that if you are inspected and violations are found, you are not off the hook once you pay the fine. The rate of re-inspections is going up. If they come back to find that you have not fixed what they found the first time, you will find yourself paying through the nose.

Random Thoughts

Yesterday was the start of winter. I don’t care for the cold at all. I long for the spring even though it means the yard and my nasal passages will be coated with pollen. At times I wonder if I have seasonal affective disorder (SAD), which is a condition that some people get (or think they get) in winter. I learned about this when I worked as a copy editor for a newspaper right out of college. We had a medical reporter who believed he had this, and he wrote about it a lot. Apparently the short days and lack of sunlight have a dramatic depressive effect on some people.

I don’t seriously believe I have a medical condition, but winter is truly my least favorite time of year. While I’m not depressed, I have found myself recently dwelling on the negative while forgetting the many positives that still exist in my life, the association and our industry. In years past, when I’ve been down, I’ve wrapped myself around the fact that even though it’s cold outside, the days are already getting longer and better times are ahead. Yesterday was the shortest day of the year. While we still have a brutal winter ahead (both in terms of weather and business), the mechanisms to make life better are already working.

As we celebrate Christmas and move into the New Year, all of us at CSA want to wish you the best. Thank you for allowing us to serve you. Good riddance to 2009, and here’s to a better 2010.

Decline in Industry Makes us Ripe for Innovation

2009-12-01T10:50:00.001-05:00

By: Jim Moody, CAE
President

Ruth Kellick Grubbs, an industry consultant and a good friend of CSA’s, recently sent out a newsletter to clients with some harsh insights. Contrary to what I’m hearing from some economists and from other industry gurus, Ruth says there’s no recovery on the horizon for home building.

She cites several reasons to support her analysis:
• Statistics indicating home price increases may be misleading.
• The current low interest rates are not sustainable.
• The homebuyer tax credit will not last forever.
• FHA loans now makeup a significant portion of the market, and they are risky.
• Foreclosures are going to spike again, and so are subprime resets.

Different people can look at the same statistics and come to very different conclusions. Certainly Greg Brooks, another industry consultant, has a different perspective. We provide you with his insightful newsletter each month, and he has a much more positive view of the future than Ruth does.

But whether you think brighter days are just around the corner or not, Ruth makes another point that is interesting.

She says we are at a critical point in the life cycle of our industry. People who study these things have determined that industries typically go through birth, growth and then a decline. The length of the cycle may be different from industry to industry, but the pattern is generally the same. Once an industry hits a decline, there has to be an innovation or the industry eventually dies.

We know that our country will continue to need housing in the long run, so the industry is not likely to die. Instead, someone will find a better, cheaper or faster way to get the job done, and the rest of the industry will fall in line. What’s not known at this point is whether the innovation will keep independent dealers in the mix (although with a much changed business model) or cut us out entirely.

Ruth asserts that technology will have a much larger role in the industry going forward. She also sees major changes in the distribution model, since ours is the most expensive model in existence. She also notes that our existence depends on our customer’s ability to sell our products and services for us, and that’s probably not going to be true in the future.

I’ve seen a lot of information about how homes going forward will be smaller and less customized because cheaper will be better for consumers. If that’s true, then I wonder whether the future is in more manufacturing. Will wall panels be the next big thing? Will the dealers and the home builders essentially be the same company? I don’t have answers to those questions, but it is good food for thought. What do you think the innovation in our industry is going to be? Use our blog feature to post comments.

Meanwhile, one of our members brought a ProSales article on credit to my attention. The article talks about how dealers who aren’t diligent in credit are as guilty of sub-prime lending as the mortgage companies. Clearly credit issues have been significant for our members over the past two years. How you extend credit and manage collections will be critical in the recovery of business going forward. We’ve had a task force developing a guide to best practices in credit and collections this year, and it’s now if final production. Hopefully it will be a useful tool for you; we’ll let you know when it’s available. Here’s the link to the ProSales article

NLBMDA News

2009-12-01T09:18:00.003-05:00

House to Vote on Estate Tax This Week. Take Action Now.
House leadership has announced plans to vote this week, possibly as early as Wednesday on legislation (H.R.4154) sponsored by Rep. Earl Pomeroy (D-ND) to permanently extend the 2009 $3.5 million exemption and 45% tax rate on estates passed onto the next generation. Read more.

IRS Issues New Guidance on NOL Expansion
The IRS has issued new guidance on the expansion of the Net Operating Loss Carryback provision enacted lat month by Congress. The expansion allows taxpayers to elect a 3, 4, or 5-year net operating loss (NOL) carryback instead of a normally 2-year carryback. Read more.

NLBMDA Joins Institute for Legal Reform to Oppose Lawsuit Changes
This Thursday, Dec. 3, the Senate Judiciary Committee will consider legislation by Sen. Arlen Specter (D-PA) that would change pleading rules and potentially overwhelm federal courts with frivolous lawsuits. Read more.

News You Can Use - Special Feature

2009-11-30T11:31:00.004-05:00

Rader's Edge: How To Pick Vendors
Sometimes the biggest successes in LBM come from something as simple as a vendor and dealer teaming up for mutual benefit
By Chris Rader

In today's LBM business, the relationship between the vendor and supplier can't be taken for granted. A strong vendor-supplier relationship can not only outflank the competition but also ensure profits. Below you will find my account of a partnership between a vendor and a dealer that has existed for more than 10 years. You will also find nine ideas regarding how to find the best vendors. This is the story of how two guys have built their business by supporting each other. To protect their identities against competitors, I will call them Victor the vendor and Larry the LBM dealer.

Victor started his career working at an airline ticket counter for a number of years. He began to understand people and how to take care of them. He had to make last-minute decisions to board or not board passengers and to turn every plane, always shooting for on-time performance. Victor then moved to a sales job at window manufacturing plant. Read more.

News You Can Use - Product Information

2009-11-30T10:57:00.002-05:00

Chinese Drywall Caused Homes' Woes, CPSC Finds
With "strong association" made, government now will try to figure out extent of problem, possible remedies
By Craig Webb

A "strong association" exists between homes where Chinese drywall was installed and where occupants reported smells and corroded metals, the U.S. Consumer Product Safety Commission (CPSC) reported today. The finding clears the way for a federal task force to figure out how many houses have this problem and what to do about it.

The report released today (see executive summary) lends government-funded scientific support to the notion that Chinese drywall used in homes in recent years is behind complaints of rotten-egg smells, corroded metal connections, tarnished jewelry, and equipment breakdowns in homes across the United States. CPSC says it has received 2,000 reports from 32 states, the District ofColumbia, and Puerto Rico regarding problem drywall in their homes, and some liability lawsuits already have been filed.

How many homes could be affected remains uncertain, says the CPSC, which recently reached out to the governors of every state and U.S. tereritory seeking data. The agency does know that roughly 7 million sheets of Chinese drywall were imported between 2000 and 2009. What it doesn't know is how many of those sheets went into homes and what percentage of them have problems. Read more.

News You Can Use - Trends and Numbers

2009-11-30T08:59:00.015-05:00

New US home sales rise 6.2 percent
By ALAN ZIBEL (Associated Press)
Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.

The Commerce Department says sales rose 6.2 percent to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September. Economists surveyed by Thomson Reuters had expected a pace of 410,000. Read more.

Existing-Home Sales Jump 10.1%
By Big Builder Staff
The soon-to-expire $8,000 federal tax credit for first-time homebuyers sent sales of existing homes soaring in October, the National Association of Realtors reported Monday.

Sales of existing single family homes, townhouses, condominiums and co-ops surged 10.1% to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, up 23.5% from the same month last year. The NAR has not seen numbers like this since February 2007, when the annual pace was 6.55 million. Read more.

Building Material Reuse Can Pay Off
By Teresa Burney
It's happened to every builder--the windows you ordered are the wrong size and unreturnable so they sit in the warehouse for years.

And most every remodeler has shaken his head while hauling a perfectly nice set of cabinets to the landfill because the homeowner wants something different and he has no place to store them. Read more.

Builders in Atlanta Struggle to Survive
By Michelle E. Shaw, The Atlanta Journal-Constitution
When the housing market was white-hot, McCar Homes was one of the nation's leading builders.

In 2006, the Alpharetta-based company built and sold more than 2,200 homes and boasted revenues upward of $500 million. But now that the market temperature is in the Arctic region, McCar's chief executive isn't sure the company will make it into 2010. Read more.

Touched By Lumber: The World’s Most Famous Lumberyard OwnerA newly restored and remastered version of Gone With the Wind is out in Blu-Ray DVD format this Holiday season, reminding us all that Scarlett O’Hara exceeds even 84 Lumber’s Joe Hardy as the world’s most famous lumberyard owner. Scarlett, who built her business up from the ashes of a fire-ravaged, post-Civil War Atlanta, offers both good and bad management lessons for these hard times. She knew how to be tough--“The War Is Over: Don’t Ask for Credit,” one sign in her store reads. But hiring her unrequited love, the milquetoast Ashley Wilkes, to run the yard shows a serious fault in judgment. Oh well: at least when we watch the two clench in the lumberyard office, thanks to the new restoration we now can admire the moulding display in the background.

Photo courtesy of Warner Home Video.

Webinar: Year Round Strategies for Making Tax Law Work for You

2009-11-23T12:09:00.008-05:00

W E B I N A R

Year Round Strategies for Making Tax Law Work for You

Tuesday, December 8, 2009
3:00 p.m. to 4:00 p.m. (Eastern Time)
$139 per logged on computer

Tax planning is a year-round event if you want to minimize your business’ tax bill. Whether it’s surviving an audit, capitalizing on business deductions, or finding a tax-friendly way to run your business, this webinar will help reduce your tax obligations and make paying taxes less anxiety provoking

What will the hour cover?
Business Tax Planning:
 Accelerating Depreciation
 Net Operating Less Deductions
 Project Your Income
 Manufacturer’s Deduction
 Auto Tax Breaks
 Tax Credits and Incentives

Individual Tax Planning:
 Income and Deduction to Consider at Year End
 Tax Planning for Families
 Tax Planning for Investors
 Retirement Tax Planning
 Estate Planning and Gift Tax Exclusions

And Information on Tax Document Record Retention

ABOUT THE SPEAKERS:
Elizabeth Grubb; Beth specializes in tax planning, tax compliance and business valuations for gift and estate tax planning, charitable contribution and income tax planning, buy / sell agreements, business purchase and sale, and S corporations. She has been with the firm since 1995.

Brian Schneider; Brian has more than 10 years of Big 4 public accounting experience. Brian has been involved in all aspects of state taxation planning including income / franchise tax, tax credits and incentives, property tax and sales and use tax. Brian’s experience includes working with SEC clients and privately held companies with expertise in manufacturing and distribution industries.

Beth and Brian are with Battelle & Battelle, LLP, located in Dayton, OH.

The webinar is being hosted by Turnkey Programming. Prior to the webinar, you’ll be contacted by Turnkey with the webinar phone number and password, as well as instructions for logging onto the website to view the webinar live.

Click the picture to enlarge and use the registration form.

What’s the Outlook for 2010? Help Us All Know by Taking Part in ProSales’ Latest Survey

2009-11-19T08:56:00.002-05:00

How did America’s LBM operations fare in 2009? How will they do next year? You can get these valuable insights by taking part in ProSales’ latest online survey, just launched today. This five-minute poll is designed to help us all learn the financial and operational state of dealers from coast to coast. To get the invaluable written comments, you must take part. We’ll be collecting results through Dec. 1.

Take the Survey

Member News

2009-11-18T14:51:00.005-05:00

Gwen Hill of Hill's Ace Hardware Honored by Barrow County Chamber of Commerce

The Barrow County Chamber of Commerce announced Gwen Hill as the first recipient for its Inaugural "Woman of the Year" recognition to be presented at the Women in Business Luncheon, to be held Nov. 11 at The Georgia Club.

"The Barrow County Chamber proudly recognizes Gwen Hill of Hill’s Ace Hardware and Lumber Center as the recipient of this award," said Chamber President Tommy Jennings.

Chosen for her continued efforts to make a difference throughout Barrow County, Gwen Hill has worked with The Tree House and Peace Place, and has been one of the driving forces for the Barrow County Cooperative Benevolence Ministries and the Food Pantry and Food distribution each month.

She has served Barrow County in the past as the chairman of numerous organizations, including the Barrow County Chamber of Commerce, the Winder First United Methodist Church, Jackson EMC Foundation, the Winder Noon Lions Club and many others. In 2001, she was recognized as the Barrow County Chamber’s Citizen of the Year.

Not mentioned in the article is the fact that Gwen has worked in the business since 1971 and has been involved in most every facet of the business including IT systems, inside and outside sales, internal accounting, and other back-office functions. Her dedication and hard work have made Hill's Ace Hardware what it is today. Gwen continues to handle the accounting while being involved in a variety of community organizations and church groups (and keeping up with three grandchildren!)

Source.

Take a ProSales Poll

2009-11-17T14:04:00.001-05:00

ProSales wants to know which brands your company currently stocks, plans to discontinue, or may be added to your inventory in the next 12 months. In exchange, we'll put you in the running to receive a $500 American Express gift card.

Just click on this link... and you'll see a 22-question survey that will only take a few minutes to fill out. Be sure to complete the survey all the way to the end and provide contact information so that you'll be in contention to win the AMEX card. ProSales will pick a winner in mid-December.

Estimating Seminar: Register Now

2009-11-17T11:56:00.000-05:00

CSA is once again presenting our popular Long Form Estimating and Advanced Estimating sessions. These sessions are designed for all levels of estimating and outside sales. The Long Form Estimating session is a two-day session, while the Advanced Estimating session fits into a one-day session.

Lunch is included in the seminars. Please bring a calculator, pencil and paper to each session.

Long Form Estimating - This seminar will give participants instruction and practice in taking off a material list of items usually included in an estimate made by a lumberyard or building material center. Learn the basics to get started in estimating homes, garages, remodeling jobs, and the like! The first day’s schedule runs from 8:00a.m to 6:00p.m., and the second day runs from 8:00a.m. to 5:00p.m.
February 2 & 3, 2010: Blue Linx Learning Center located in the CSA Headquarters, 120 Handley Drive, Suite 610, Tyrone, GA 30290

Advanced Estimating - This seminar is designed to assist the estimator or outside salesperson who already knows how to estimate, but wants to know shortcuts and instructions in multi-pitched roofs, and finding wall lengths/floor areas for more complicated house layouts. This seminar begins at 8:00a.m. and ends at 4:00p.m.
February 4, 2010: Blue Linx Learning Center located in the CSA Headquarters, 120 Handley Drive, Suite 610, Tyrone, GA 30290

About Keith Kluis: Keith is the author of three popular correspondence courses in wide use nationally on estimating, drafting, and selling. He has been a draftsman, estimator and manager of a building material store, as well as a classroom instructor on these topics.

DEADLINE TO REGISTER: January 25, 2010

First person from each company: Second person from each company:
MEMBER - before deadline: $330 MEMBER - before deadline: $280
MEMBER - after deadline: $380 MEMBER - after deadline: $330
NONMEMBER - before deadline: $430 NONMEMBER - before deadline: $380
NONMEMBER - after deadline: $480 NONMEMBER - after deadline: $430

Please note that any staff from a member company is considered a member.

(This seminar requires a minimum of 12 attendees, so register early!)

Click the pictures to enlarge and print the Registration Form.

NLBMDA News

2009-11-17T09:37:00.004-05:00

NLBMDA Makes Case for Eco-Label Before American Lumber Standards Committee
On November 13, NLBMDA presented its proposal for an eco-label to the board of the American Lumber Standards Committee (ALSC) in Charleston, SC. Representing NLBMDA were Val Hanson, former LBMI Trustee, Ken Marson, NLBMDA Board Member and NLBMDA's alternate representative to ALSC and NLBMDA Counsel Frank Moore. Read more.

Health Care Bill Faces Uncertain Future in Senate
Last week, House Democratic leaders celebrated their slim victory on health care overhaul legislation (H.R. 3962), which passed by a vote of 220-215. NLBMDA, which opposed H.R. 3962 for its numerous costly tax increases and mandates on employers, has joined the Start Over Coalition of business groups urging Congress to go back to the drawing board to draft health care reform legislation which will focus on reducing the cost of health care. Read more.

Estate Tax Reform Vote Pending
While Congressional tax committee leaders have continued to indicate that votes on the estate tax would be held before the end of the year, it is not yet clear in what form those votes will take. The NLBMDA Legislative Advocacy Committee at their October meeting reiterated their preference for full repeal of the tax, and support for potential compromises only if they maintain a high enough exemption level to protect the asset-heavy nature of a family-owned building supply company. Read more.

Congress Considers Mandated Paid Sick Leave for Swine Flu
Legislation has been introduced in Congress to require employers to provide up to five days paid sick leave to workers sent home sick with swine flu or other contagious illness. Read more.

Green Things

2009-11-17T09:30:00.001-05:00

Feud Continues Between Wood Certifiers
By Leora Broydo Vestel

United States Fish & Wildlife Service A group filed a complaint with the Federal Trade Commission last week arguing that the premier certifier of eco-friendly wood products in the United States engages in unfair trade practices.

Another shot had been fired in the battle between rival certifiers of environmentally friendly wood products.

The Coalition for Fair Forest Certification filed a complaint with the Federal Trade Commission last week charging that the Forest Stewardship Council – the premier certifier of green forestry products in the United States – engages in unfair and deceptive trade practices.

The group also asserted that the United States Green Building Council’s Leadership in Energy and Environmental Design rating system for efficient and sustainable buildings — known widely as L.E.E.D. — is anticompetitive because it only recognizes products certified by the Forest Stewardship Council and not those of other certifying bodies.

A letter submitted on behalf of the coalition by the law firm Steptoe & Johnson asks the trade commission to investigate. Read more.

Who is liable for green building performance?
As standards become more stringent, experts urge care on guarantees
By D. Ashley Furness, Business Journal Staff Reporter

Green building performance, or rather failure to perform, has long topped the list of legal risks related to sustainability-minded construction, but developers face even greater stakes this year as government-mandated LEED standards loom and achieving certification becomes more difficult.

“Whether it’s the engineer, architect contractor, builder, the biggest issue in green building is writing careful construction contracts that do not guarantee a certain level of performance,” said North Coast Builders Exchange Green Building Coordinator Hallie Fraser. Read more.

Staff Changes at CSA

2009-11-17T09:30:00.000-05:00

By: Jim Moody, CSA President

We all have limited resources, and one of the significant challenges of our economic environment is the need to get more done with less. In that regard, CSA’s business is no different than your own.

We’ve taken a close look at the needs of our members and of the association and compared that to the work that is being conducted. The work that needed to be done in times past is not necessarily the work that needs to be done today or in the future.

For many years, we’ve had two very competent guys on staff whose primary responsibility was to serve as field agents for our Self Insured Worker’s Compensation Fund. Larry Marler and Kevin Rodgers have served ably and done good things for members and for the Fund. They’ve provided lots of insight on regulatory issues and also helped members improve safety conditions. When necessary, they’ve conducted claim investigations and they’ve both conducted more payroll audits than they care to admit. They’ve been our “relationship guys” out there keeping abreast of what’s going on.

While I would never discount the value of maintaining relationships, I also have to recognize that devoting two people full time to maintaining relationships may not be the best way for us to spend staff time. Additionally, there are important things I see going undone, and devoting more staff time to those will ultimately serve members better.

For those reasons, both Kevin and Larry will be beginning significantly different jobs by the end of this year.

Kevin’s changes are most dramatic. Kevin’s lived in Perry and served middle and south Georgia for some time. Kevin is relocating to Atlanta and will be based in the new CSA office. While he can still do safety and Fund work in a pinch, the bulk of his time will be developing, rolling out, and maintaining new programs and services. By that, I mean new products that will help you run your business better. It might be leveraging the buying power of our membership to create a discount for you on something many of you use. It might be developing a manual on how to operate more efficiently. It could be creating partnerships with similar groups to do things neither of us could do alone. The possibilities are endless. It’s very clear to the Board and to me that the association must continue to expand the things you receive in exchange for the dues you pay to CSA if we are to achieve our mission of building stronger independent dealers. Our strategic plan outlines many of those things. Kevin will be the guy to make them happen.

Larry will continue to live in Gainesville and be focused on the Fund, with some fundamental changes. Instead of serving just north Georgia, he’ll serve the entire state. While his focus in the past has been visiting every member in his territory multiple times per year, that won’t be physically possible any longer. His goal is to see every member at least once per year. Other contact will be by phone and e-mail. He’ll still do some payroll audits in person, but we’ll be doing more by mail. The bulk of his time will be spent working with the Fund members who historically have the highest losses. We have a responsibility to do all we can to educate owners about safety, help them develop adequate safety programs and ensure that those programs roll out to their employees. We know that Fund members who make safety a priority have fewer claims and smaller losses, yet there are some members who have not been as focused on it as they should be. Larry’s job is to help them achieve that focus and create safer work environments. The result will be safer workers, lower cost insurance, and an even stronger Self Insured Fund.

Do we lose some of the personal relationship with these changes? Perhaps. I’m sure many of you have struggled with the best way to get the important work done and still maintain relationships with your customers during these trying times. There are always trade-offs. On the other hand, I also recognize that relationships only get you so far if you don’t have the service to back it up. Relationships matter less than tangible value today. What are you getting in exchange for your dues? Are your worker’s comp rates as low as they can possibly be? We believe these are relevant questions for you to ask, and we want to do everything possible to ensure the answers are positive.

We’ve arrived at this decision by being honest about our resources, our needs, and our current weaknesses. The goal is to help the association and the Fund do more for you, our members.

I hope you would agree that CSA and the Fund have provided good value in the past, but we understand that what was good enough in the past won’t always cut it in today’s harsh business climate. We will continue striving to do more for you to ensure that independent dealers not only survive but thrive again.

Congress to Consider Emergency Paid Leave Bill

2009-11-17T09:15:00.000-05:00

From SHRM (Society of Human Resources Managers)

In response to the outbreak of the H1N1 flu virus, U.S. Rep. George Miller, D-Calif., introduced emergency legislation (H.R. 3991) that would provide five paid sick days to workers with contagious diseases who are told by their employers to stay home.

Miller, who chairs the House Education and Labor Committee, told reporters that the legislation was needed to help stop the spread of the expanding H1N1 pandemic. To emphasize that point, Miller named the proposal the Emergency Influenza Containment Act.

“Sick workers advised to stay home by their employers shouldn’t have to choose between their livelihood, and their co-workers’ or customers’ health,” Miller said. “This will not only protect employees, but it will save employers money by ensuring that sick employees don’t spread infection to co-workers and customers, and will relieve the financial burden on our health system swamped by those suffering from H1N1.” Read more.

Bill Leonard is senior writer for SHRM.

Help Daniel Lumber Company Feed Savannah This Holiday Season

2009-11-17T08:51:00.000-05:00

Daniel Lumber Company and Daniel Kitchen & Bath, in conjunction with America’s Second Harvest of Coastal Georgia are spearheading an effort to help feed the less fortunate in and around Savannah this holiday season with the Daniel Lumber Company and America’s Second Harvest Food Drive between now and December 31.

Drop off locations are conveniently located at the Daniel Lumber Company full-service lumber yard (2302 E. Gwinnett Street) in Savannah and the Daniel Kitchen and Bath Cabinet Showroom (3190 Highway 80 West) in Bloomingdale. Non-perishable meats and high protein items such as canned chicken, ham, mackerel, meat spreads, salmon, sardines, tuna, peanut butter, beef stew, canned stew and canned beans or peas are in greatest demand by Savannah’s hungry. Read more.

SCAM ALERT: Bad Checks and Bad Acts

2009-11-13T10:52:00.005-05:00

Be on the watch for this kind of scam.....

A mid-Michigan member of the Michigan Lumber & Building Materials Association (MLBMA) regarding a $2800 check they'd received, along with a request to confirm the transaction. MLBMA researched the matter and determined it definitely is a scam.

The check was allegedly sent to the member from Bailey/Laurerman/Marketing/Communications in Lincoln, Nebraska. The check was drawn on a Tier One Bank account from Lincoln, Nebraska. It contained an official looking UPS Next Day Air tracking number. It was sent from the Kennedy Space Center making I look like the Space Center is a client of Bailey/Laurerman.

A message at the bottom of the correspondence informed the member:

"We would like you to email our secure payment department on payverifier2009@live.com. For your confirmation and more information before you continue the transaction, please don't ignore this email. Make sure you email us to the provided email and don't agree with any correspondent abuse about this email. This Payment Verification is to confirm you receive the payment successfully."

MLBMA determined this was a scam by determining the following:
1. There is a real P.R. firm in Lincoln, Nebraska by that name but it has one less letter in its name;
2. Tier One Bank is located in Lincoln but the address on the check is 20 digits off the real address;
3. The overall spelling and general approach is unprofessional and bogus. Canadian and Australian scammers have apparently been using this tactic with increasing frequency.

If you receive something like this do not respond to verify its receipt. The culprits have a way of using your response in the scam. Do not respond to the email. Delete it.

NLBMDA ALERT: FTC Delays Enforcement of Red Flags Rule Until June 1, 2010

2009-11-12T09:36:00.002-05:00

The Federal Trade Commission has announced another delay in its enforcement of the "Red Flags" Rule, which requires creditors to have Identity Theft Prevention Programs. The FTC is now delaying enforcement of the new rule until June 1, 2010, to give creditors additional time in which to develop and implement written identity theft prevention programs. The last deadline was November 1, 2009.

On November 9, 2007, the FTC published the final Identity Theft Red Flags regulations and guidelines. The rule, promulgated pursuant to the Fair and Accurate Credit Transactions Act of 2003 (FACTA), requires creditors to develop and implement written "identity theft prevention programs." The programs must provide for the identification, detection, and response to patterns, practices, or specific activities - known as "red flags" - that could indicate identity theft.

Additional information on the rule can be found on the NLBMDA website, www.dealer.org, in the "Government Affairs" section.

See the full text of the FTC release announcing the delay in enforcement at: http://www.ftc.gov/opa/2009/10/redflags.shtm. They have also now established a compliance site for businesses at http://www.ftc.gov/redflagsrule.

Read the original here.

Senate Passes Unemployment Extension, Home Buyer Tax Break

2009-11-05T10:08:00.001-05:00

From the Atlanta Journal Constitution
The U.S. Senate late Wednesday unanimously passed legislation extending unemployment benefits and also significantly expanding a homebuyer tax credit that was championed by Republican U.S. Sen. Johnny Isakson of Georgia.

The Senate voted 98-0 to extend unemployment benefits for the jobless by up to 20 weeks. In states with unemployment rates of 8.5 percent and above -- in Georgia the unemployment rate is 10.1 percent -- the jobless could receive up to 99 weeks of benefits, which average about $300 per week. Read more.

NLBMDA ALERT: Tell Congress to Oppose Health Care Tax Hikes on Small Business

2009-11-05T08:56:00.001-05:00

BACKGROUND: The House Democratic leadership has unveiled their final health care reform legislation, with a vote expected before Veterans' Day - and possibly as early as this weekend. Unfortunately, the "Affordable Health Care for America Act" (H.R. 3962) contains numerous onerous provisions that will only drive up the costs for small businesses and penalize employers, rather than addressing health care costs in a meaningful way.

Some major areas of concern in H.R. 3962 for small businesses:

* Employer Mandate: Employers will be required to offer health care to full and part-time employees. All employers with a payroll of $500,000 or more will pay a payroll tax of up to 8 percent if they do not provide "qualified" health insurance to their employees.
* "Pay-or-Play": Employers who do offer benefits may still be subject to penalties if they do not offer "qualified" individual and family coverage, meet premium contribution requirements of at least 72.5% for individuals and 65% for family plans, and offer a "qualified" plan as defined by a government-appointed board. If an employee declines coverage from their employer and instead obtain coverage through the exchange, the employer will be subject to a payroll tax penalty of up to 8 percent. An employer who offers coverage other than the "qualified" plan can be assessed a penalty of $100 per employee per day, up to $500,000.
* Surtax on Small Businesses: The bill contains a surtax on individuals with incomes of $500,000 single/$1 million joint - which will also impact the 75 percent of small businesses who are structured as pass-through entities and pay their business taxes at the individual level.
* 1099 Reporting Requirements: H.R. 3962 includes increased corporate reporting requirements that will mandate that companies issue a Form 1099 to all corporations from whom they purchase goods or services, once a $600 per year per vendor threshold has been reached.

TAKE ACTION: Visit www.BuildtheVote.org to quickly send an email message to your Representative asking him/her to vote NO on H.R. 3962. You can also call your legislators through the Capitol Switchboard at 202-224-3121.

SCAM ALERT: PHONY TRUSS ORDERS

2009-11-05T08:34:00.003-05:00

SCAM ALERT

Scammers are targeting the truss portion of the industry. More than 40 companies have been contacted by the scammers, and one company may have lost money because of it. We urge you to be extremely vigilant in screening potential customers!

Be on the watch for these warning signs:
• Emails from an individual asking for pricing on a large quantity of trusses (e.g., 200). He may attach a picture of a truss. Often, the requestor claims to be a Reverend representing the Presbyterian Church of God. However, in the most recent wave, the scammers have had normal names (e.g., Dave Weliam).
• The requestor says he is making arrangements with a freight company to pick up the order.
• At some point the requestor will ask if you accept credit cards and may even send you a credit card number. He will likely instruct you to pre-pay the freight company, and add the freight charges to his final invoice.
Please forward this email to anyone in your company that receives email and has contact with customers. The U.S. Federal Trade Commission, Better Business Bureau and the FBI have many resources on how to avoid falling victim to email fraud. You can also file a fraud complaint on any of these websites.

Rethink Your Health Insurance Benefits

2009-11-04T13:25:00.002-05:00

Click the picture to enlarge.

Georgia Appellate Court Voids Restrictive Covenant in Employment Contract

2009-11-04T11:00:00.000-05:00

10/5/2009
By Diane Cadrain

The Georgia Court of Appeals voided the noncompetition clause in an employment contract, finding that it was overbroad because it failed to properly limit the territory to which it applied.

Mary Squire worked as a tax professional at an H & R Block office in Gainesville, Georgia. Her job required her to prepare and file tax returns for individual Block clients. After four months of this work, Block hired her as the office manager for her office for the 2008 tax season. In her capacity as an office manager, Squire had access to Block's client database for the entire Gainesville District. Her employment contract for the office manager job contained certain post-employment restrictive covenants, including noncompetition and nonsolicitation clauses, which barred her from setting up or working for a competing business within 10 miles from Block's Gainesville district and soliciting Block clients.

In early December 2008, Squire resigned from Block, but worked for approximately two more weeks after giving her notice of her resignation.
During that time she continued to have access to the Block client database for the Gainesville District.

In early January 2009, Squire's former district manager at Block saw Squire pictured, together with other former Block employees, in an advertisement for Paramount. The ad referred to Paramount's "tax professionals, pictured above." Shortly thereafter, Paramount sent out a business-solicitation letter to almost 6,000 people, offering them $30 off on tax preparation services, and stating that many recipients of the letter may have used Paramount's professionals when they previously worked at "another company around the block." The letter then gave the names of Paramount's "Tax Preparers," each of whom was a former Block employee, and specified the Paramount location where each individual was working.

Block sued Squire and Paramount for breach of the contract covenants. A trial court ruled that the covenants were enforceable and that Squire had breached them. Squire and Paramount appealed.

The appellate court first addressed whether the restrictive covenants in Squire's employment contract were enforceable. Such covenants, the court stated, will be enforced only if they are reasonable as to: (1) duration;
(2) the capacity in which the employee is prohibited from competing against his former employer; and (3) the geographic territory in which the former employee is restricted from working.

Applying these principles, the appellate court found that the restrictive covenants were unenforceable because the noncompetition clause was overbroad in that it failed to properly limit the territory to which it applied.

To be enforceable, the court said, a non-competition clause must contain a territorial limitation sufficient to give the employee notice of what constitutes a violation by specifying the territory in which the employee's conduct is restricted.

Squire's contract barred her from working for any employer whose business included the preparation and electronic filing of income-tax returns, if that employer was located, conducted business, or solicited business in Block's Gainesville District or within 10 miles of its borders. But, the court said, the contract failed to limit the prohibited conduct to a specific geographic area. In fact, on its face, according to the court, the contract language would have prevented Squire from accepting employment anywhere in the United States, if her prospective employer engages in the preparation and electronic filing of tax returns and also either has an office or advertises in, or within ten miles of, Block's Gainesville District.

Significantly, the court stated, the restriction would apply even if Squire were not going to work at a location within ten miles of the district. It would bar Squire from accepting employment, for example, at the Atlanta, Savannah, Macon, or Columbus office of a statewide tax preparation or accounting firm, if that firm also had an office in or advertised within ten miles of the Gainesville District. Similarly, assuming that one or more of Block's national competitors has offices or advertises within ten miles of the Gainesville District, this language would prevent Squire from accepting a position with such an entity, even if she were relocating out-of-state.

In light of those provisions, the court found that the contract overprotected Block's business interest in the customer relationships Squire may have developed while at Block, and it did so at the expense of her right to earn a living and her ability to determine with certainty the area within which [her] post-employment actions are restricted.

Given its overbreadth, the noncompetition covenant contained in Squire's employment contract was unenforceable as a matter of law, the court concluded. And because the noncompetition clause was unenforceable, the nonsolicitation clause included in the agreement was likewise unenforceable.

The Court of Appeals reversed the lower court's findings.

About the author.

Diane Cadrain is an attorney who has been writing about employment law issues for more than 20 years. She is a member of the Human Resource Association of Central Connecticut.

Editor's Note: This article should not be construed as legal advice.

Paramount Tax & Accounting, LLC v. H & R Block Eastern Enterprises, Inc., Ga. Ct. App., No. A09A1542 (Aug. 6, 2009).

Special Training Program: The Forklift and You - Decrease your forklift accidents and increase your bottom line

2009-11-04T09:01:00.003-05:00

Get the only forklift training specific to the lumber and building material industry that meets all OSHA forklift training requirements. The training program includes:

-Industry-specific video/DVD
-Trainer’s guide
-Complete operator package
-Training poster

Click the picture for details and order information.

News You Can Use

2009-11-03T11:57:00.006-05:00

Product Information: Stanley and Blecker Decker to Merge
The Stanley Works and Black & Decker announced today they will merge to create Stanley Black & Decker, an $8.4 billion global tool company. The deal is worth $4.5 billion, the companies said in a joint news release. Read more.

September Construction Spending Up 0.08%
Construction spending in September posted a better-than-expected performance, powered by the largest jump in housing construction in more than six years.

The advance spurred hope that the battered housing sector is starting to turn around and will provide support for the overall economy as it struggles to emerge from the worst recession since the 1930s. Read more.

Employment costs rise at slowest pace since 1982
Employment costs rose by the smallest amount on record in the 12 months ending in September, as high unemployment restrained wage and benefit growth.

The data shows that employers face little pressure to raise pay, even as the economy recovers. The weak labor market makes it difficult for people with jobs to demand higher pay and benefits. Read more.

Have you seen EcoHome?

NLBMDA News

2009-11-03T10:22:00.005-05:00

Pelosi Unveils House Health Care Bill
Last week, the Democratic House leadership unveiled their nearly-final draft health care reform bill. The bill makes some improvements to the employer mandate, by doubling the floor for penalties on small businesses for not providing health care benefits to employees and dependents. Previously, the penalties began at $250,000 in total wages; now, they begin at $500,000 in wages. Read more.

CPSC Issues Inconclusive Chinese Drywall Report
The Consumer Products Safety Commission (CPSC) last week issued a summary of its findings to date on the Chinese drywall investigation. An interagency task force, comprised of the CPSC, Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), Centers for Disease Control and Prevention (CDC), Agency for Toxic Substance and Disease Registry (ATSDR) and state health departments have been coordinating research and governmental response to homeowners who have complained of health and metal and appliance corrosion in their homes. Read more.

OSHA Takes Initial Step Toward Combustible Dust Rule
The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) just published an advance notice of proposed rulemaking (ANPR) in the Oct. 21 edition of the Federal Register as an initial step in development of a standard to address the hazards of combustible dust. Read more.

Home Builder Confidence Dips in October
With the expiration date for an important home buyer incentive approaching, builder confidence in the market for newly built, single-family homes slipped one point to 18 in October, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Read more.

News You Can Use - Product Information

2009-10-21T13:36:00.003-04:00

Insurers dropping Chinese drywall policies
By BRIAN SKOLOFF, Associated Press

WEST PALM BEACH, Fla. - James and Maria Ivory's dreams of a relaxing
retirement on Florida's Gulf Coast were put on hold when they discovered
their new home had been built with Chinese drywall that emits sulfuric fumes
and corrodes pipes. It got worse when they asked their insurer for help -
and not only was their claim denied, but they've been told their entire
policy won't be renewed.

Thousands of homeowners nationwide who bought new houses constructed from
the defective building materials are finding their hopes dashed, their lives
in limbo. And experts warn that cases like the Ivorys', in which insurers
drop policies or send notices of non-renewal based on the presence of the
Chinese drywall, will become rampant as insurance companies process the
hundreds of claims currently in the pipeline. Read more.

News You Can Use

2009-10-21T12:53:00.003-04:00

Economists Forecast Strong Housing Growth
Experts at NAHB conference see a turnaround occurring by mid-2010, but the way back will be long

By Craig Webb, ProSales Online

The U.S. housing market appears to have bottomed out and looks likely to return closer to normal--but not boom--levels by 2012, a group of housing economists predicted today.
Enthusiasm with several strings attached was the prevailing mood expressed in presentations prepared for the National Association of Home Builders (NAHB) 2009 Fall Construction Forecast Conference. Read more.

Housing Starts Hold Steady in September
Total housing starts, expressed as a seasonally adjusted annual rate (SAAR), came in at 590,000, according to data released today by the Commerce Department. That's 0.5% ahead of the previous month -- which was adjusted downward, from 598,000 to 587,000.
If not for the downward adjustment of August starts, the total percentage would have declined 1.3%.

There was better news for builders, and their suppliers, in the single-family front. Single-family housing starts in September were at a rate of 501,000; this is 3.9% above the revised August figure. Moreover, the August figure was revised upward, from a previously stated 479,000 to 482,000.

Compared with September of last year, total starts declined 28.2%, and single-family starts declined 8.7%. Read more.

September housing construction rises 0.5 percent
By Martin Crutsinger
Source: Associated Press/AP Online

Construction of new homes edged up slightly in September, helped by a rebound in single-family construction. However, in a worrisome sign for future housing work, applications for building permits fell by the largest amount in five months. Read more.

More Signs of Economic Recovery
The decline in consumer spending on home renovation projects is tapering off, and remodeling activity should start to pick up early next year, according to a just-released study by Harvard’s Joint Center for Housing Studies.

The quarterly forecast pointed to several positive signs that could boost home improvement spending, causing a reversal in annual declines by the second quarter of 2010. Read more.

OSHA Inspects Another Member

2009-10-21T11:44:00.005-04:00

By Larry Marler

Recently OSHA issued penalties to a CSA member as a result of an inspection done earlier this year. The fines are a whopping $23,000!

The purpose of this article is not to embarrass the business, but to provide a clear idea to our readers and members about the potentially high cost of non-compliance.

The listed violations are as follows:

Hazard Assessment Program unavailable

Failure to require proper Personal Protection Equipment (PPE)

Allowing sawdust and cobwebs to accumulate around electrical equipment

Improperly arranged exit routes

Unsanitary conditions in restrooms and washing facilities

Fire extinguisher violations

Improper operation of forklifts, carrying loads too high

Guards on rotating shafts and belts missing, etc.

You can draw on various resources to avoid these fines and to stay in compliance with OSHA. CSA is here to help. We offer free inspections to help find and fix potential violations at your place of business. To find out more about these free audits or to schedule one, please contact CSA at 678-674-1860.

ProSales Says "Cowboy" Jackie Allmond of Choo Choo is Best LBM Sales Rep

2009-10-21T11:21:00.004-04:00

By Rick Davis

At 7:15 on a south Georgia summer morning, the sun is beaming and so is "Cowboy" Jackie Allmond as he stands in the parking lot of Choo Choo Build-It Mart's Rincon yard. With 50 tasks on his to-do list, Allmond knows he's going to be busy today. But he can't dive in just yet: A fellow salesman has stopped Allmond seeking his advice on hurricane-rated floor fasteners, an important commodity in this coastal market.

Allmond doesn't dismiss the salesman's request with a hurried reply. Instead, he leads the man inside to show the exact piece he should offer the builder. Only after providing technical advice does he move to his office, get organized, and prepare to take off in his tricked-out red Ford F-150 pickup for a day of deal-making. Read more.

Emerging Trends: Don't Put Me on Your Bid List!

2009-10-21T10:16:00.001-04:00

By Steve OndichCommercial Forest Products

THIS year has been a rude awakening for many sales professionals. A few years ago, large sales were easily had. In 2009, reps are working twice as hard for smaller sales. Margins are also tight due to intense competition among companies that are willing to sacrifice profits for the sake of staying busy.
The good news is that unless you've traded in your Blackberry and drive-through Starbucks for a pork-pie hat and a place in the soup line, you're still in the game. The bad news is that you're far from alone.

Complaining about the bad economy is very 2008. The new water cooler rant is that there are too many companies competing for the same small pool of work. When 30 piranhas are stuffed into a 12-gallon tank, any morsel of food is quickly devoured-yet all of the fish remain hungry.
As salespeople, we can either accept mediocre results as an inevitable byproduct of the bad economy or we can find a way to distinguish ourselves from the mass of competition. Going back to the piranha analogy, there will not be enough food put in the tank this year. You want to be the lone fish that jumps and catches the morsel before it hits the water.

One easy way to elevate yourself is to get out of the "bid-list" mentality. Asking to bid jobs or be on someone's bid list is a weak, passive way to solicit business. An inanimate fax machine can be on a company's bid list. You're better than that. In a good economy, working this way yields mediocre results, and we're not in a good economy.

Here's why I don't like bid lists:
• You're not the only one receiving that request for quote (RFQ).
• Bid lists reduce everything down to price. If you have a premium product, your bid is going to look high when compared to an inferior product. It's extremely difficult to point out your product's superiority on a bid list.
• RFQs are often red herrings. Have you ever walked into a prospect's building and been surprised by some newly purchased materials despite having been erroneously assured that you're on the bid list?
• Bid sheets create the illusion of an even playing field. Buyers often have a preferred vendor in mind before they distribute RFQs. If you're not the preferred vendor, you have a few strikes against you from the start. The preferred vendor's bid only has to be in the ballpark. You may be the low bidder across the board and still not get the job. Low bids are rejected because "they're too low, something must be wrong." High bids are accepted because "it's not that much more, and we know what we're going to get." It's not spelled out on the RFQ, but it's a reality.
Here's what you can do:
• Get the order before it's put out for bid. If you can find out what projects are upcoming before the RFQs go out, you'll have the opportunity to sell before your competition becomes aware of the opportunity. Great sales pitches can easily be drowned out by dozens of mediocre ones. Don't wait. Pre-sell your products.
• Work to become the preferred vendor. If customers want to give you work, selling becomes exponentially easier. If you're a second- or third-tier vendor, don't assume that you can bid your way to the top tier. Find out why your competition is getting the lion's share of the work. Nine times out of 10, you'll be told it's price. It's probably not.
Think about it. If you're a purchasing agent, are you going to admit that you prefer one vendor because he lets you use his condo in Palm Springs every year or because the owner likes him? No, you'll give a less accurate, but more respectable answer ("His prices are lower"). Find out what makes your customer tick, then you can decide how to improve your relationship, or if you even want to.
• Find out what's important to your customer so you can bid accordingly. Don't assume all of the important specs are on the bid list. Maybe you'll be the only vendor quoting product that hits all of their specs. Make sure they know it.
• Find a good reason to stay on your customer's radar. Repeatedly calling to ask, "Do you need anything?" or "Are you ready to order?" keeps you on their radar, but not in a good way. "I've got a good idea that should save you some money" is a call that your customers will want to take. A busy purchasing agent will often bypass the bid process and give an order to a rep who happens to be on their radar when a job is released. Contact them often, but make sure you have a worthwhile purpose or you'll be put on the dreaded straight-to-voicemail list.

As a hardwood vendor, my goal is to solve problems and present opportunities to my clients. A proactive approach often gives me the first-and sometimes the only-look at new business.

- Stephen Ondich is the owner of Commercial Forest Products, Fontana, Ca., a manufacturer and distributor of hardwood products. He can be reached at (909) 256-4583 or sondich@commercialforestproducts.com.

Brown Lumber Recognized as Alabama Retailers of the Year

2009-10-21T09:10:00.004-04:00

(In this photo - Andrew (l) and Andy Brown (r) with Jim Croome)

The Alabama Retail Association (ARA) in cooperation with the University of Alabama at Birmingham (UAB) today recognized nine outstanding Alabama retailers as “Retailers of the Year.” The presentations were made at The Club in Birmingham during the UAB School of Business’ 2009 Retail Day Luncheon. This marked the 10th presentation of the Retailer of the Year Awards since 1999.

Andy and Andrew Brown , owner/general manager and vice president/sales manager, respectively, of Brown Lumber & Building Supply Inc., a third-generation family business in Columbiana, received the Gold Award in the “Annual Sales More than $5 Million” category. Stacy Walkup, executive director of the South Shelby Chamber of Commerce, nominated the Browns for this prestigious award. Read more.

Webinar: Combustible Dust

2009-10-20T13:25:00.004-04:00

W E B I N A R
Combustible Dust: Not Just a Grain Elevator Hazard!
Tuesday, November 17, 2009 at 3:00p.m. (EST)
$139.00 per logged on computer.

The combustible dust hazard is not limited to grain elevators; lumber yards and wood working activities are at risk as well. OSHA has had a Combustible Dust National Emphasis Program (NEP) since March 2008. As a result OSHA has increased their educational enforcement actions in this particular area due to a number of explosions resulting from combustible dust.

This webinar will provide attendees with a basic understanding of the combustible dust issue, discuss critical housekeeping tips, precautions you should take, what standards apply to our industry and recommendations as they pertain to OSHA’s NEP.

About the presenter – Bill Adams is an Associate with SafeX and is a Certified Industrial Hygienist, Certified Safety Professional, and Certified Professional Environmental Auditor. He has extensive experience in all aspects of health and safety. Bill has assisted manufacturing facilities in designing and implementing health and safety management system programs, including self directed work teams.

Click on images to enlarge, print and use the registration form.

NLBMDA News

2009-10-20T11:58:00.002-04:00

Contact Your Senators Today About the Homebuyers Tax Credit
The Senate Banking Committee will hold a hearing Tuesday, October 20 to hear the latest on the housing market from Housing Secretary Shaun Donovan and industry representatives. Home buyer tax credit champion Sen. Johnny Isakson (R-GA) will also address the committee to press for an extension and expansion of that credit before it expires at the end of November. One option that remains on the table is for the credit to be attached to an extension of unemployment benefits the Senate may vote on this week. Dealers are encouraged to keep calls and letters coming to their Senators to press them to act sooner rather than later to preserve the credit. Visit www.BuildtheVote.org to take action today. Read more here.

NLBMDA Submits Comments to U.S. Green Building Council on Second Draft of Certified Wood Credit Benchmarks
On Oct. 14, NLBMDA submitted comments to the U.S. Green Building Council (USGBC) on its second draft of proposed revisions of the benchmarks for the certified wood credit in the LEED rating tool. Currently, wood certified by the Forest Stewardship Council (FSC) is the only wood eligible for credit toward LEED certification. USGBC has proposed a new system of "benchmarks" that any certification scheme could be evaluated against to determine if their certification procedures would be acceptable to USGBC. Read more.

Health Care Negotiations Continue
Negotiations continue this week between Senate Majority Leader Harry Reid (D-NV), Finance Chairman Max Baucus (D-MT) and Health Committee member Sen. Chris Dodd (D-CT) to reconcile the competing health bills passed out of those two committees. Reid has stated plans to bring a final reform bill to the Senate floor next week. Read more.

OSHA Announces Emphasis Program on Recordkeeping
The U.S. Occupational Safety and Health Administration (OSHA) recently announced it is initiating a national emphasis program (NEP) on recordkeeping to assess the accuracy of injury and illness data recorded by employers. Read more.

Climate Change/Energy Hearings Set in the Senate
While most of the health care negotiations are now taking place behind-the-scenes, several Senate committees are gearing up for hearings and mark ups of climate change/energy legislation. The Senate Energy and Natural Resources Committee holds a hearing this Wednesday, October 21, on the costs and benefits of greenhouse gas emissions allowances. The Boxer-Kerry bill (S.1733) is expected to be marked up in the Senate Environment and Public Works Committee following three days of hearings set to begin next Tuesday, October 27.

Legislation Introduced to Tie Tax Credit for Windows, Doors and Skylights to Energy Star
On October 15, Sens. Jay Rockefeller (D-WV) and Chuck Grassley (R-IA) introduced legislation that would modify the existing tax credit for energy efficient windows, doors and skylights for 2010 by tying it to established ENERGY STAR® standards for fenestration products. The current $1,500 tax credit, passed as part of the American Recovery and Reinvestment Act (ARRA), limited the tax credit to windows, doors and skylights "equal to or below a U-factor of 0.30 and SGHC (solar heat gain) of 0.30," commonly known as the ".30/.30 standard." Read more.

FLAME Act Passes Senate
As part of the 2010 Interior and Environment Appropriations Act, the Senate passed legislation Sept. 28 to create a dedicated fund within the Forest Service to pay for fire suppression activities and prevent forest management funds from being raided during high fire activity years. Between 1999 and 2003, $2.2 billion of the $3.5 billion spent on forest fire fighting was diverted from other programs. The dedicated fund will help ensure other important forest management programs are not disrupted by budget shortfalls. The legislation now goes to conference with the House.

Have You Subscribed to the NLBMDA Green Update?
NLBMDA recently announced that it has partnered with MultiBriefs to create the new NLBMDA Green Update, a free, opt-in e-mail resource providing comprehensive biweekly news briefings of interesting stories important to the building material industry. Read more.

Advantage Software Seminar

2009-10-06T18:10:00.004-04:00

One of CSA’s most popular seminars is back!

Are you…
Interested in learning more about the Advantage Computer System?
In need of a little extra help with the program?
In charge of inventory control?
Looking to resolve common problems and learn “quick fixes”?

If you answered yes to any of the above, this seminar is for you!
The Advantage Computer Systems Seminar, hosted by CSA and Advantage Computer Systems, will be led in a roundtablestyle discussion by Wade Frazier and Ed Brown with ECI Advantage. They are excited to answer all questions and facilitate discussions.

The best part of this seminar is that the attendees pick the discussion topics! When registering for the seminar, attendees will be asked to pick five topics to discuss. Wade and Ed will then create an agenda and curriculum from these topics.

The cost of this seminar is $100.00 per person, and will begin promptly at 8:00a.m. and run until 4:00p.m. Lunch, breaks and materials are included in the registration fee.

Accommodations at the Hampton Inn in Fairburn are available. We’ve reserved a block of rooms, but in order to reserve your room, please call 678-782-4600 and tell the reservations staff that you are taking a room in the CSA block. Rooms for Sunday, November 8 (the night before the seminar) are $69.00 plus tax per night, and includes breakfast at the hotel. Reservations are the responsibility of the attendee. Rooms will not be held after October 21, and reservations after this date will be taken on a space availability basis only.

Please click the picture to enlarge, print and use the registration form.

Webinar: As Long As There Is Competition

2009-10-06T15:01:00.006-04:00

W E B I N A R

As Long As There Is Competition...
Thursday, November 5, 2009 at 3:00p.m. (EST)
With John Cortright

$139.00 per logged on computer

Add the coming of winter to this economic environment and anyone can tell you that sales are difficult to come by. But, there is still business out there and we need to take control of our future by ferreting it out and making it ours!

John Cortright, our speaker, started as a stock clerk in retail and in a 15 year period worked his way up the corporate ladder to Senior Vice President of a three hundred million dollar building material firm. He dealt with new strong competition, over saturated markets, economic downturns and yet he exceeded sales and profit expectations. Hear about his unique methods for building success in this special webinar.

Topics that will be covered in this one hour:
· How to produce more sales from your existing client base
· How to take business from the big boxes – low budget or no budget
· The most dependable and profitable customer base is like an iceberg, only 10% is visible. Uncover and take control of the other 90%!
· Make your sales budget and increase the profit in the process
· Take control of your business so that you move out of this downturn AHEAD of the pack!

The webinar is being hosted by Turnkey Programming. Prior to the webinar, you’ll be contacted by them with the webinar phone number and password, as well as instructions for logging onto the website to view the webinar live.

Click the pictures to enlarge, print and use.

On Safety: Six Ways to Address Distracted Driving

2009-10-06T14:48:00.003-04:00

At least one of the organizations sending an official to speak at next week's Distracted Driving Summit supports technology as part of the solution. The Governors Highway Safety Association listed six ways the federal government could address the problem without penalizing states that fail to enact texting or calling bans; GHSA is already on record as stating drivers should not use cell phones for any purpose while they are driving.

"To address this growing problem, the federal government does not need to sanction states that do not pass cell phone or texting while driving bans. Rather, there are a variety of actions the federal government can take to help states best respond to distracted driving," the organization stated in a Sept. 14 statement of its position. GHSA Chairman Vernon F. Betkey Jr. is scheduled to speak Oct. 1 at the summit as one of the Legislation, Regulation and Enforement panelists at the summit. Read more.

On Safety: OSHA News - Advancing PPE Regulations

2009-10-06T14:43:00.001-04:00

OSHA updates its PPE standards
Last month, the Occupational Safety and Health Administration revamped personal protective equipment standards for general industry, shipyard, longshoring and marine terminals.

The changes pertain to eye, face, head and foot safety. Among other things, they require that filter lenses of eye safety devices meet standards concerning the "transmission of radiant energy such as light or infrared."In revamping the standards, OSHA aims to keep them in line with technological advances and applicable national consensus standards. It also seeks to ensure that PPE design and construction responds to job-specific hazards.

The final rule takes effect on October 9. Read the OSHA Trade News Release here.

Source.

Webinar: Welcome to Lawyerland - How to Navigate the Court System

2009-10-06T14:38:00.001-04:00

W E B I N A R

Welcome to Lawyerland: How to Navigate the Court System
Tuesday, October 22, 2009 at 3:00p.m. (EST)
With Annie Catmull with Walker, Wilcox and Matousek

When faced with the prospect of litigation, understanding the court system will help you control costs and improve the likelihood of a satisfactory resolution, so you can get back to business quickly.

One of the most difficult things to learn about the court system is how to navigate all of the filings and motions. The speaker will give you the basics of how to bring or defend a case.

Topics that will be covered in this one hour:
-Small claims, common pleas, and municipal courts. What are their differences?
-What to expect in Federal and State Courts and when to expect to be there.
-Going to court, whether you are allowed to represent yourself and when you are not.
-Different cases, advantages and disadvantages of litigation alternatives: mediation and arbitration.
-The minimum initial steps you should take as soon as you learn you or your company is being sued.
-Finding a reliable attorney, getting them the facts, and how to control costs – the growing trend of flat fee billing.

The presenter Annie Catmull is a lawyer with Walker, Wilcox and Matousek (located in Houston, TX and Chicago, IL). This firm focuses on complex commercial litigation, bankruptcy/recturing, and insurance coverage disputes. Her nationwide practice includes the representation of creditors ranging from large and small independent businesses to Fortune 500 companies. She was a speaker at the NLBMDA ProSales Industry Summit in 2008 on the subject of bankruptcy and the homebuilding industry.

This webinar provides you the opportunity to learn from one of the leaders in the industry without having to leave your business. No travel, no time away from the office. The price is just $139 per logged on computer. To get the most bang for your buck, gather all your managers around one computer and use a speaker phone.

The webinar is being hosted by Turnkey Programming. Prior to the webinar, you’ll be contacted by them with the webinar phone number and password, as well as instructions for logging onto the website to view the webinar live.

Click the pictures to enlarge, print and use.

Equipment Financing Program

2009-10-06T13:44:00.003-04:00

Association Health Programs offers an Equipment Financing Program for CSA members. Included in the offer are terms such as no down payment, flexibible terms to meet your cash flow needs, fast approvals and simple documentation. There is a secure online application and payment calculator at www.associationpros.com

For more information, contact Stuart Pase at 888-450-3040 or email stuart@associaitonpros.com

NLBMDA News

2009-10-06T13:18:00.003-04:00

You can find all the most up to date national organization news here.

USGBC Releases Second Draft of Certified Wood Credit Benchmarks
Health Care Continues to Dominate Congressional Schedule
Homebuyer Tax Credit Looming
Boxer-Kerry Introduce Energy Bill, Version 2.0
Have You Subscribed to the NLBMDA Green Update?
Save the Date! NLBMDA Legislative Conference Scheduled for March 15-17, 2010

News You Can Use - Running Your Business

2009-10-06T12:14:00.003-04:00

Credit card fees can take a bite out of your profits. CSA members can lower their costs by up to 20% by enrolling in a special program. Enrollment is free and your credit card processing system will be reprogrammed for the cost savings at no expense to you.

For more information and a free, no obligation quote, please call 847-219-6711 or fax 815-455-5317.

CSA Celebrates with an Open House

2009-10-06T11:32:00.002-04:00

The Construction Suppliers Association celebrated the opening of its new offices with an open house on Wednesday, September 30th. Over fifty members, friends, and associates attended throughout the day to tour the new offices and enjoy some lunch together.

The space is located at 120 Handley Road, Suite 610 in Tyrone, Georgia. We're open from 8:00 a.m. until 5:00 p.m. Monday through Friday. You're invited to come visit us anytime. Call 678-675-1860 for more information, directions and to schedule a tour. See all the photos from the Open House.

Our photo slideshow.

Official Notice to Members: Board Nominations

2009-10-06T08:03:00.000-04:00

The CSA Nominating Committee has nominated the following people to serve new terms on the Board:

Kevin Hamblin, Builders Station, Carrollton GA, 2nd Vice Chair (automatically ascends to the chair)
Tee Bridges, Stone’s Home Centers, Bainbridge GA, Board member
Mason Kocher, Kocher Building Materials, Montgomery AL, Board member
Ray Gaster, Gaster Building Materials, Savannah GA, Board member

CSA’s bylaws state that members have 30 days from the date of notice Wednesday, October 7, 2009 to submit alternate names. If no alternate name is submitted by at least 20% of the eligible voting membership, the slate of nominees is automatically elected. If one or more names are submitted by at least 20% of the eligible voting membership, then an election will be held. If you wish to submit alternate name(s), please do so to Jim Moody, CSA President, by fax at (678) 674-1864, e-mail at jimmoody@gocsa.com, mail at 120 Handley Road, Ste. 610, Tyrone GA 30290, or phone at (678) 674-1860.

The Nominating Committee was composed of David Swift, chair; Billy Badger; Tom Hall; Jeff Edwards; and Chris Moon.

From ProSales Online: Tips for Surviving a Hostile Economy

2009-09-23T07:40:00.001-04:00

Florida dealer Don Magruder's 10 ideas don't have anything to do with management or sales, but they could make the difference between survival and failure.

By Don Magruder
Over the last three years, the hostile economic times have taken a major toll on the well-being of employees and businesses, with many coming ever so close to their rope's end. As business people, many of us have been fighting very hard to survive, but we must never forget the folks who bear the heaviest load of those pay cuts, reduced hours, and dwindling benefits: our employees. An encouraging word or clearing of a path in the direction of common sense may be the difference between survival and surrender.

Sensing an increasing burden on many in our management and sales group, I shared with them my thoughts of how they and Ro-Mac Lumber could survive this hostile economic environment. Below are my top 10 tips for surviving these current hostile economic times. Most of you know them already, but it helps us all to refresh our souls. Read more.

News You Can Use - Trends and Numbers

2009-09-23T07:36:00.002-04:00

Survey: Boomers Want Single Level, Energy-Efficient Homes in the Suburbs
A new survey reveals that 55+ Americans would prefer suburban living in single-story homes with amenities, particularly high-speed Internet access, for their later years, and they don't consider "universal" design a priority. These are some of the findings from 55+ Housing: Builders, Buyers, and Beyond, a survey conducted by the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute, which asked owners and renters about their current homes and the types of homes, communities and features they prefer as they age. Read more.

Overall Housing Starts Rise 1.5 Percent in August
Privately-owned housing starts in August were at a seasonally adjusted annual rate of 598,000, 1.5 percent higher than July figures, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. Single family starts, however, fell 3 percent to a seasonally adjusted rate of 479,000.

NAHB blamed the pullback in single-family starts on the looming expiration of the $8,000 tax credit for first-time homebuyers. Read more.

Protecting Your Business

2009-09-22T18:19:00.003-04:00

By Business and Legal Reports, Inc.

After a Georgia company reduced a vice-president’s bonus, he decided to open his own business. He discussed his departure with his supervisors and thought he had arrived at an amicable parting, only to be sued after he left the company.

What happened. “Fawkes” owned a share of an insurance company named Hamilton, Dorsey & Alston. Wachovia Insurance Services purchased Hamilton on May 1, 2001. Fawkes received cash and Wachovia Insurance stock and was given a four-year contract to work as a senior vice president in Wachovia’s employee benefits area.

In September 2004, Wachovia Insurance’s president asked Fawkes to sign a confidentiality and nonsolicitation agreement that would make Fawkes an at-will employee. Two years later, Wachovia reduced Fawkes’ bonus and commission structure. In April 2007, Fawkes decided to resign and open a competing business. He met with the company president and his supervisor to discuss the plan and to assure them that he intended to honor the nonsolicitation agreement. Fawkes’ supervisor formally informed the department that Fawkes was leaving to start his own firm.

On April 23, with his supervisor’s permission, Fawkes sent a letter to 90 of his business contacts informing them that he was starting his own business. On April 30, his employment with Wachovia Insurance ended. Two months later, Wachovia sued Fawkes and his new business for breach of the nonsolicitation agreement, misappropriation of trade secrets, and computer theft. Fawkes asked the court to dismiss the case.

What the court said. Wachovia alleged that Fawkes had breached his written agreement not to solicit clients. Fawkes countered that the covenant imposed an unreasonable restraint on his ability to do business because it forbade him to solicit clients that had already ended their relationships with Wachovia Insurance. The court agreed with Fawkes; the covenant defined a customer as “any individual or entity that has purchased an insurance contract through the Company,” which the court found to include too many customers that no longer had a relationship with Wachovia. It thus found the nonsolicitation agreement too broad to be enforceable.

Wachovia also complained that Fawkes had breached the agreement by hiring two of its employees for his new company. In fact the employees had approached Fawkes and he had not approached or solicited them, so the court found no breach.

Wachovia next argued that Fawkes had misappropriated trade secrets by using a Wachovia Insurance client list from password-protected company computers. To obtain relief under the Georgia Trade Secrets Act (GA Code Sec. 10-1-760), Wachovia needed to show that this information was not commonly known to the public. But Fawkes proved that all of the information was available on a public website (“freeERISA.com”), commonly used by employee benefits companies for prospecting for customers. The court ruled that Fawkes had not misappropriated Wachovia’s trade secrets.

Finally, Wachovia claimed that Fawkes had committed “computer theft” because Wachovia Insurance employees who moved to Fawkes’ new company used Wachovia’s client contact information on their Blackberry® devices in their new employment. GA Code Sec. 16-9-93(a) defines computer theft as “knowingly using a computer network without permission and with the intention of taking someone else’s property.”

But Fawkes’ employees were merely using Blackberry devices that contained information Wachovia Insurance also had; Wachovia could not prove that they were using its own computer network without permission and intending to steal Wachovia’s data. The court agreed that Wachovia had shown no evidence of computer theft. It dismissed all the claims against Fawkes.

Wachovia Insurance Services v. Fallon, Ga. Ct. App., No. A09A0140 (July 14, 2009).

Professional Pointer: This employer filed this lawsuit to send “a message to others,” to communicate to future employees that the company would not tolerate them taking its business. Before trying to send a similar message, make sure you have a solid case with real damages.

Contributed by BLR, Inc. Read plain-English analysis on Employment Contracts in Georgia.

NLBMDA News - Government Released Guildes on H1N1

2009-09-22T16:11:00.000-04:00

The U.S. Centers for Disease Control and Prevention (CDC) and the Department of Homeland Security (DHS) have released guidance for employers of all sizes to prepare for the possibility of the H1N1 flu in the workplace over the coming months. An "H1N1 Preparedness Guide for Small Businesses" was a also recently released. For more information and to download the guide, visit www.flu.gov. Source.

NLBMDA News - Builder Confidence Edges Up in September

2009-09-22T16:09:00.001-04:00

Builder confidence in the market for newly built, single-family homes edged higher for a third consecutive month in September, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released last week. The HMI rose one point to 19 this month, its highest level since May of 2008.

"Today's report indicates that builders are starting to see some glimmers of light at the end of the tunnel in terms of improving sales activity," said NAHB Chief Economist David Crowe. "However, the fact that the HMI component gauging sales expectations for the next six months slipped backward this month is a sign of their awareness that this is a very fragile recovery period and several major hurdles remain that could stifle the positive momentum. Those hurdles include the impending expiration of the $8,000 tax credit as well as the critical lack of credit for housing production loans and continuing problems with low appraisals that are sinking one quarter of all new-home sales. These concerns need to be addressed if we are to embark on a sustained housing recovery that will help bolster economic growth." Read more.

NLBMDA News - IRS Highlights Taxability of Personal Use of Employer-Provided Cell Phones

2009-09-22T16:00:00.003-04:00

A recent issue has been highlighted by the IRS in the personal use of employer-provided cell phones. A little-known rule currently requires that where an employee uses the employer-provided cell phone for personal purposes (i.e., only a portion can be substantiated as business use), the fair market value of such personal use is includable in the employee's gross income. Read more.

NLBMDA News - EPA to Require Contractor Certification for Lead Removal Projects

2009-09-22T15:59:00.000-04:00

Legislation was recently introduced by Sens. Amy Klobuchar (D-MN) and Mike Crapo (R-ID) to establish a national standard for product emission ceilings and to direct the EPA to promulgate a national formaldehyde rule for composite wood products by 2011. The legislation is based on the California Air Resources Board (CARB) regulation enacted last year and appears to be an effort to impose California's standard on the rest of the country rather than go through a lengthy rulemaking process at the EPA. The legislation, S. 1660, has been referred to the Environment and Public Works Committee. Source.

NLBMDA News - Rumors Continue to Fly on Card Check

2009-09-22T15:56:00.001-04:00

Senators speaking to union conferences last week continued to assert that support is building for a so-called "compromise" that may remove the card check component of the "Employee Free Choice Act" but still make it easier for employees to form a union by limiting the time for employers to respond and still including dangerous binding arbitration requirements. Read more.

NLBMDA News - Baucus Health Care Plan Includes Onerous 1099 Reporting Provision

2009-09-22T15:55:00.000-04:00

As anticipated, the Baucus health care plan also includes a corporate reporting requirement as one of the revenue raising provisions to pay for healh care reform. The plan, as we've reported previously, would require all businesses to issue 1099s to all corporations from whom they purchase goods or services. As introduced in the Senate bill, there would be a $600 threshold for each vendor, posing a further administrative burden as companies would have to track spending for each vendor to determine when the threshold was reached.

NLBMDA is working with its small business alllies on this issue and will be vigorously opposing this measure. Source.

NLBMDA News - Health Care Reform Bill Takes Shape in Senate

2009-09-22T15:53:00.003-04:00

Tomorrow the Senate Finance Committee will begin to mark up the draft health care legislation, "America's Healthy Future Act," introduced last week by Chairman Max Baucus (D-MT). Affordability has become the major focal point, with some in the Senate seeking to increase the tax credit for individuals who will be forced to purchase insurance under the Baucus plan. Affordability is also a concern for the business community, where the Baucus small business tax credit is so narrow few businesses will be able to qualify. Read more.

NLBMDA News - Support Builds for Extension of Homebuyer Tax Credit

2009-09-22T15:16:00.002-04:00

Senate Majority Leader Harry Reid (D-NV) last week joined Sens. Benjamin Cardin (D-MD) and John Ensign (R-NV) in sponsoring legislation (S. 1678) to extend the first-time home buyer tax credit for six months, and allow buyers to claim the credit for either 2008 or 2009. Staunch housing advocate Sen. Johnny Isakson (R-GA) and Sen. Debbie Stabenow (D-MI) have also cosponsored the bill. Read more.

Changes in Bylaws Broaden Leadership Base, Make CSA More Transparent

2009-09-22T12:32:00.000-04:00

Jim Moody, CAE
President

The Board of Directors has made a few changes in the CSA bylaws that I’d like to share with you. Admittedly, discussing bylaws is about as interesting as watching paint dry. Yet, these changes are important, and in our spirit of transparency, I want to make sure you know about them.

Here are the highlights:

· We’ve made it clearer that the company is the member, not the person. That means that anyone from a member company can take advantage of CSA programs and services.
· There are now term limits for Board seats. Terms are for three years, and they are renewable once. After that, there can be no one in a regular Board seat from that company for the next three years. The thinking here is that we want to be inclusive with our governance. We want to avoid the reality and the perception that a small number of companies control the association. The association belongs to all member companies, and every company should have equal opportunity for a leadership role.
· For that same reason, we’ve changed the makeup of the Nominating Committee. The committee now consists of the immediate past chair (who chairs the committee), chair, incoming chair, a sitting Board member and someone not currently on the Board (the latter two chosen by the immediate past chair).
· All companies will be made aware of the selections of the Nominating Committee via e-mail. Unless there is substantial disagreement by the membership (meaning at least 20% of companies submit alternate names), the nominations will become the final selections. If a nominee from the membership hits that 20% mark, it will trigger an election conducted by mail ballot.
· We’ve added an associate member to the Board. While this member can vote as a fully vested member of the Board, he or she will not be eligible to serve as an officer. Compared to our sister associations in other parts of the country, CSA is under-represented in associate members. We believe this is an important part of our community that is missing. Adding this seat on the Board is an important step in saying that we value associate members.
· The term of the treasurer, previously unlimited, is now limited to three years. This seat is only renewable if the person was named to fill an unexpired term, and in no case can someone serve more than 60 months. While no one is implying that previous treasurers failed to do a proper job of oversight, the term limits are important insurance against collusion. Transparency makes good business sense for an association like ours, and moving this detailed knowledge of the association’s finances around to more member companies more often is desirable.

We believe these changes in the bylaws, along with some other clean-up in the language, bring CSA into the modern era in terms of governance structure. We need to be inclusive and transparent in how the association is managed, and these changes allow that to happen.

Is this an indictment on the past? Certainly not. CSA has been strong in the past because of the vision and attention of its Board. But things change, needs arise, and people’s perceptions shift. In the same way that you can’t run your business successfully the same way it was done 20 years ago, CSA has to stay in tune with the times. These bylaws changes bring us to where we need to be for now, but 10 or 15 years from now the thinking may be entirely different.

If you have questions or concerns about these changes, I welcome a discussion. The document showing all the changes is posted on our website……..

Tee Bridges Appointed to State Task Force

2009-09-22T09:24:00.001-04:00

Tee Bridges, of Stones Home Centers in Bainbridge has been appointed to represent The Construction Suppliers Association on the Residential Green Building Code Task Force of the Georgia Department of Community Affairs.

This task force was formed in response to increasing interest and requests by local governments and the building industry. The Department of Community Affairs (DCA), upon authorization by the State Codes Advisory Committee (SCAC), is working to develop a statewide residential green building code. This code will be based on the ICC-700, National Green Building Standard, developed by the International Code Council (ICC) and the National Association of Home Builders

The purpose of the Task Force is to review this code and make recommendations to the SCAC regarding its adoption and the adoption of any supplements and amendments. Upon approval by the SCAC and the DCA Board, this code will take effect on January 1, 2011 as an optional code. Local governments would first have to adopt this code if they choose to enforce it.

CSA is thrilled that Tee will be a part of this task force, helping to shape the future of green building codes in Georgia. Thank you, Tee, for your contribution.

CSA Introduces New Cost-Saving Health Insurance Program

2009-09-10T13:24:00.000-04:00

By: Jim Moody, CAE
CSA President
When we’ve asked members about the challenges you face (aside from the global economic issues we can’t solve), we’ve consistently heard from you that health insurance is one of the biggest thorns in your side.

The federal government is working on that issue, but I don’t put a lot of hope in their efforts. I suspect that at the end of the day, health insurance will still be incredibly expensive for small business, and that the pressure for you to provide coverage for your employees will be intense.

While I’m not ready to say we’ve solved problem that has confounded experts and the government for many years, I am happy to say we have found an option that may present some ideas you haven’t explored previously.

For more than a year, CSA has been diligently looking at a variety of options to allow you to provide health insurance benefits without breaking the bank. That search ended last month when the Board voted to endorse a program by Association Health Programs out of Overland Park, KS.

This company is essentially an independent agency with the ability to write policies from a variety of companies, including all the big names. But this is where the similarity to traditional programs ends.

Rather than looking for the best group rate, Association Health Programs starts with individual plans. These are typically less expensive than group plans, and there are some other benefits as well. For instance, the plans are portable, meaning if the employee loses his job, he can keep his health insurance as long as he’s willing to pay the premium himself (and you don’t have to worry about administering COBRA benefits). Also, the policy can’t be cancelled for any reason (group plans can be cancelled). It may also allow you to tailor coverage to the individual’s situation for the best combination of price and coverage, which may be different from employee to employee.

One downside is that in some states (Georgia is one), insurance companies can choose not to write initial coverage for some individuals. (Alabama is a different story – everyone with an Alabama residence or an employer in Alabama is guaranteed coverage through a state risk pool.) When there are employees who can’t be insured individually, a group plan must remain. The goal then becomes to make the group as small as legally possible and cover everyone else as an individual.

As you might guess, this approach can be complicated. On the other hand, the cost savings can be dramatic – 30-40% is not unusual. Each company is different, so the plan has to be tailored for your needs and must take into account the health of your employees. While I can’t promise that everyone will see this kind of savings, the due diligence we’ve done convinces me that this program really will work for many of you. The only way to know is to call Association Health Programs to discuss your specific situation and let them work on quotes for you.

Note that this is not a health savings account that requires lots of administration nor is it some fly-by-night option that will fold without notice. The company has been in business for years and has hundreds of thousands of people covered through various plans. That large number gives AHP buying power you can’t find in a “regular” agent, and that is the key to providing lower cost premiums.

We’ll be working hard over the next few months to educate you more about this option. I suspect you are intrigued but have questions, which is reasonable. Feel free to contact me with general questions or call AHP directly to quiz them on how this all works. There’s also a website with more information: http://www.associationpros.com/assoc/csa. You can also call toll-free at (888) 450-3040 for more information.

Again, this may not work for everyone. But it does offer you an option you probably haven’t considered before, and it has the potential to save you a fair amount of money. Now, more than ever, something like this is worth exploring.

OSHA to Target Nursing Homes, Manufacturing Facilities for Inspections

2009-09-10T11:23:00.002-04:00

OSHA said its Site-Specific Targeting 2009 program will focus enforcement efforts on nearly 4,000 high-hazard worksites on the agency's list for comprehensive safety inspections. The agency said the SST program helps it direct enforcement resources to workplaces such as manufacturing and nursing homes where the highest rate of injuries and illnesses occur.

Changes to this year's program include dividing the primary list of establishments slated for inspection into three sectors--manufacturing, non-manufacturing, and nursing homes. Rather than using one rate for all establishments, OSHA established minimum injury and illness rates for each group, allowing the agency to inspect even more establishments that exceed the minimum rates specific to that sector. Additionally, some facilities that did not answer an OSHA Data Initiative survey will be added to the inspection list. The agency said its intent is to deter employers from not responding to avoid inspection. Read more.

Ask the Human Resources Experts

2009-09-09T14:00:00.004-04:00

Question: Do we have to pay employees for their time spent going to mandatory drug testing?

Answer: Yes. The Department of Labor (DOL) does not oversee workplace drug testing, but the Fair Labor Standards Act (FLSA) provides guidance as to what is considered compensable hours worked.

For various reasons (e.g., per regulations, drug-free workplace, position relevance, etc.), some employers require employees to participate in mandatory drug testing prior to the beginning of employment and/or after hire. Employers are not required to compensate a person for any time spent on pre-employment drug testing. However, once the employee is hired, FLSA guidance requires employers to compensate employees when they go for such testing because the drug testing is mandated by the employer. According to the DOL web site, “Whenever you impose special tests, requirements or conditions that your employee must meet, time he or she spends traveling to and from the tests, waiting for and undergoing these tests, or meeting the requirements is probably hours worked.” Because the employee must participate in the testing as a condition of employment, it will restrict the employee from performing other responsibilities. Therefore, the time of day an employee is scheduled for the testing (e.g., before work, during work hours or after work) does not determine whether the employee will be compensated. The facts that the testing is under the employer’s control, related to the company business and a condition of employment will meet the standard for that time being counted toward hours worked.

Employers should consider scheduling employee drug testing during normally scheduled work hours. This practice could avoid any potential overtime issues because of the additional compensable time spent participating in the drug testing.

From the Society of Human Resources Managers

CDC Guidelines Urge Employers to Prepare Now for Upcoming Flu Season

2009-09-09T13:10:00.001-04:00

From Jackson Lewis

Anxiety over the new H1N1 flu may have eased during the summer, but the federal government has reminded us that seasonal and H1N1 flu may again command concern with the coming of fall. The Centers for Disease Control and Prevention, anticipating a spread of the H1N1 flu, has released new guidelines (available at here) to help businesses and employers prepare now for the impact seasonal and H1N1 flu could have on employers, employees and operations.

The CDC warns, “The severity of illness that 2009 H1N1 influenza flu will cause (including hospitalizations and deaths) or the amount of illness that may occur as a result of seasonal influenza during the 2009–2010 influenza season cannot be predicted with a high degree of certainty. Therefore, employers should plan to be able to respond in a flexible way to varying levels of severity and be prepared to refine their pandemic influenza response plans if a potentially more serious outbreak of influenza evolves during the fall and winter.” Learn about the guidelines here.

Webinar: ENERGY STAR Qualified Homes

2009-09-09T12:53:00.005-04:00

W E B I N A R

ENERGY STAR Qualified Homes: New Opportunities for Building Material Suppliers
with Sam Rashkin
Tuesday, September 22, 2009 at 3:00p.m. (EST)
$139.00 per logged on computer

Yes the housing market is soft with the recovery time hard to predict. However, one thing is certain: homes will be built far better according to advanced building science principles. The Business case is too compelling for everyone involved. Take this seminar and find out how ENERGY STAR Qualified Homes will help change the entire building industry landscape.

Topics:
 Overview of why specific structures work or don’t
 Why structures that do work cost less and perform better
 How ENERGY STAR Qualified Homes’ new specifications ensure structures that do work
 What materials will builders need from suppliers to meet new ENERGY STAR Qualified Homes specifications
 Preview where housing is going in the future in response to energy, national security, and en-vironmental imperatives.

The presenter, Sam Rashkin, has managed ENERGY STAR for Homes since its start in 1996. Under his leadership, ENERGY STAR for Homes has grown exponentially to more than 8,000 builder partners and is now approaching one million labeled homes. He is also overseeing an advanced technology pro-gram for elite builders called ENERGY STAR Concept Home. Mr. Rashkin received his Bachelor of Ar-chitecture from Syracuse University, completed Master of Urban Planning studies at New York University, and is a registered architect in California and New York.

Click the pictures to enlarge, print and complete for registration.

CSA Open House - You're Invited!

2009-09-09T12:12:00.002-04:00

NLBMDA News

2009-09-09T11:46:00.006-04:00

Congress Returns to Tackle Health Care and Packed Agenda
Congress returned to Washington today to set to work resolving differences on health care reform that only seemed to widen during the August recess. Climate change legislation, expiring tax credits and the annual spending bills are also on the to do list, making it likely that the scheduled October 8 adjournment date will pass long before Congress completes their work for the year. President Obama will deliver remarks on health care to a joint session of Congress on Wednesday evening. Read more.

NLBMDA Calls on Congress to Extend Homebuyer Tax Credit
As Congress gets back to work, NLBMDA is calling on members of the Senate Finance Committee and House Ways and Means Committee to highlight the importance of extending the homebuyer tax credit before it expires on November 30, 2009. Over 140 letters were sent by NLBMDA members during the August recess, highlighting the importance of this tax credit in returning the housing market to stability and restoring our nation's economy. NLBMDA called on the committees to support and pass legislation such as that introduced by Sen. Johnny Isakson (R-GA) to make the tax credit available to all buyers and extend its availability through 2010. Read more.

Lawmakers Considering Temporary Estate Tax Fix
Faced with the Dec. 31, 2009, deadline for the phased-out elimination of the estate tax, which will go to zero in 2010 but return in full in 2011, legislators have begun to explore various options for retaining the tax. Several bills have been introduced that would make permanent exemptions of $2 to 5 million and lock in overall tax rates at 30, 40 or 55 percent. Read more.

Energy Efficiency Tax Incentives Introduced
While broader climate change legislation is being delayed in part due to the debate on health care reform, more targeted pieces of legislation are being promulgated to seek to extend existing and create new incentives for energy efficient and green buildings. Just prior to the August recess, Senators Olympia Snowe (R-ME), Dianne Feinstein (D-CA) and Jeff Bingaman (D-NM) introduced a package of tax incentive legislation including the "Expanding Building Efficiency Incentives Act" (S. 1637). Read more.

Practicing Positive Employee Relations

2009-09-09T10:55:00.000-04:00

In CSA’s continuing desire to improve member services, the idea of this desk book was born. This book is intended to provide members' executives and managers with a source of information and guidance in attaining positive employee relations at their individual companies. Use this book as a starting point for auditing, modifying, and developing your own personnel practices and procedures that are best suited for your individual corporate culture. We hope that you use this book as a true "desk book." Keep it handy and refer to it often in managing employees.[1]

This book is available at a member discount of $59. To order, please email your name and shipping address to lisagolden@gocsa.com. We will invoice you for the amount when the order is shipped.

[1] This desk book is intended only as a guide to provide general information on the topics discussed here. It is not intended as legal advice on particular matters. Since many of the issues addressed in this desk book are legal in nature, a review of the specific facts relevant to the particular member company should be made prior to implementation of any of the concepts set forth here. Accordingly, members are strongly advised to consult with counsel concerning the applicability of any of the matters discussed in this desk book to their particular companies and to the particular situation at issue.

The New CSA Headquarters...

2009-08-31T10:17:00.004-04:00

is open for business!
You can now find us at:

Construction Suppliers Association

120 Handley Road

Suite 610

Tyrone GA 30290

P: (678) 674-1860*

F: (678) 674-1864

* The old phone number will forward to this one for awhile

You can see a slide show of the new building below:

News You Can Use - Trends and Numbers

2009-08-27T10:36:00.003-04:00

Consumer Confidence Index Rises in August
The Conference Board Consumer Confidence Index®, which had retreated in July, rebounded in August. The Index now stands at 54.1 (1985=100), up from 47.4 in July. The Present Situation Index increased slightly to 24.9 from 23.3 last month. The Expectations Index improved to 73.5 from 63.4 in July. Read more.

New Homes Sales Surge 9.6 Percent in July
Sales of new one-family houses in July 2009 were at a seasonally adjusted annual rate of 433,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 9.6 percent above the revised June rate of 395,000, but is 13.4 percent below the July 2008 estimate of 500,000.

The median sales price of new houses sold in July 2009 was $210,100; the average sales price was $269,200. The seasonally adjusted estimate of new houses for sale at the end of July was 271,000. This represents a supply of 7.5 months at the current sales rate.

Architecture Billings Index Bounces Back in July After Substantial Dip
Exhibiting a welcome rebound following a 5-point dip the month prior, the Architecture Billings Index (ABI) was up almost 6 points in July. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the July ABI rating was 43.1, up noticeably from 37.7 the previous month. This score, however, still indicates a decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score fell to 50.3 from 53.8, but it was the fifth straight month with a score in above 50. Read more.

Existing Home Sales Up 7.2 Percent in July
For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005. Read more.

NLBMDA News: ProSales Honors Industry Notables

2009-08-26T13:33:00.002-04:00

To commemorate its 20th anniversary, ProSales magazine's September issue presented its "list of the 20 people, trends, concepts, tools, and initiatives that we believe have had the greatest impact on the construction supply industry during ProSales' history." Among the many notables are NLBMDA Chairman and Pro-Build CEO Paul Hylbert, Jr. On his contributions, the magazine commented, "Arguably, no one has been bigger in the building materials industry over the past 20 years than Paul Hylbert, and nobody matters more now."

Also featured were the state and regional building material associations. "For more than a century, regional groups have provided the meetings, roundtables, classes, and other venues for dealers to look up temporarily from their intensely local concerns, collect management ideas from fellow dealers, and build relationships that often prove to be lifesavers when trouble occurs," noted the magazine.

Other honorees included Joe Hardy of 84 Lumber, Rob Mellor of BMHC, Tony DeCarlo of Lumbermens Merchandising Corp., and Bill Hayward of Hayward Lumber. Congratulations to all the honorees. For the complete article, visit the ProSales website here.

NLBMDA: CPSC Finds No Radiation Risk from Manufactured Drywall

2009-08-26T13:32:00.000-04:00

The Consumer Products Safety Commission (CPSC) has reported that testing conducted by federal and state agency radiation laboratories found no radiation safety risk to families in homes built with manufactured drywall.

Responding to recent news accounts about the possibility of imported drywall containing radioactive phosphogypsum, federal and state agency radiation laboratories analyzed multiple samples of drywall obtained by the CPSC and the Florida Department of Health(FLDOH). Twenty-one samples were analyzed from homes and manufacturers of drywall. Seventeen were obtained by CPSC from manufacturers and suppliers in multiple states, and four were obtained by FLDOH from homes exhibiting copper corrosion, odors and occupant complaints. Results of the phosphogypsum testing showed levels that do not pose a radiation safety risk to families.

CPSC stated that federal and state scientists believe that imported and domestically-manufactured drywall associated with these samples does not pose a radiological concern to consumers. For more information, visit the CPSC website here.

NLBMDA News: U.S. Green Building Council Introduces LEED for Homes Affiliate Program

2009-08-26T13:29:00.002-04:00

On August 20, the U.S. Green Building Council (USGBC) announced the introduction of its new LEED for Homes Affiliate Program. The program allows regional green home building programs to promote the growing green residential market by partnering with USGBC as a LEED for Homes Affiliate. This new program is designed to work flexibly and smoothly with other third-party green home providers. According to USGBC, the objective of this new program is to increase the availability of the green homes stock through collaborations with local green home building programs across the country by further promoting sustainable design and energy-and-resource efficiency in all dwellings.

"This is an important step forward as we advocate for full marketplace adoption of green home building. One of the greatest benefits of the LEED green home certification program is its continual progress and flexibility," said Nate Kredich, Vice President, Residential Market Development, USGBC. "Through the LEED for Homes Affiliate Program, green residential programs can partner with us to further promote green homes."

To address the need for knowledgeable green home building professionals, the Green Building Certification Institute implemented specializations for its LEED professional credentialing. The LEED Accredited Professional + Homes specialty allows LEED AP candidates to specialize as a green building expert in the residential field, advancing the construction of green homes by employing green building professionals.

The first two green home building programs that have signed-on to be LEED for Homes Affiliates are the Home Builders Association of Greater Dallas and Minnesota GreenStar. USGBC and HBA Greater Dallas have previously teamed up through Green Built North Texas, a voluntary partnership of local home builders, industry supporters and sponsors committed to green homes in North Central Texas. Minnesota GreenStar, a third-party green home building certification system, recognizes that its challenging climates require residential energy efficiency. Read more.

NLBMDA News: Congress Facing Ambitious Fall Agenda

2009-08-26T13:04:00.002-04:00

Members of Congress face an ambitious agenda when they return September 8, with health care reform, climate change, the annual spending bills and possibly a transportation funding measure on the top of the list.

Labor advocates continue to press for a vote on card check legislation, the "Employee Free Choice Act," though reports suggest that senators attempting to develop an alternative are now focusing on binding arbitration rather than the card check measure that would effectively eliminate the secret ballot. Even without the card check provision, possible alternatives are likely to limit employers' ability to respond to union organization campaigns and impose unreasonable binding arbitration requirements that will curtail the ability to negotiate employment terms with employees.

Meanwhile, the building industry continues to press for an extension of the first-time homebuyer tax credit, which expires December 1. Legislation introduced by Sen. Johnny Isakson (R-GA) would eliminate the first-time buyer requirement, increase the credit from $8,000 to $15,000 and extend the credit for an additional year. Visit www.BuildtheVote.org to encourage your legislators to focus on housing when they return to Washington, and to urge them to oppose card check and any so-called compromises. Your calls, visit and letters do make a difference! Read more.

NLBMDA News: Health Care Reform Faltering

2009-08-26T12:56:00.003-04:00

The President and Democratic leadership have been met with an unexpected backlash to their health care reform efforts over the August recess, leading key legislators to pull back from the public option component and others admitting additional work will be needed to develop a bill that will clear the 60 vote hurdle in the Senate. Sen. Joe Lieberman (I-CT) suggested over the weekend that some portions should be deferred until the country's economic conditions improved, echoing Republican calls to focus first on cost control and insurance market reforms.

Dealers are encouraged to continue contacting legislators during the final two weeks of the Congressional recess to oppose reforms that place the burden on the backs of small businesses. Read more.

Affidavit of Nonpayment - Protecting Your Lien Rights under Georgia Law

2009-08-26T12:34:00.004-04:00

By: Jared W. Heald, Esq.
Hendrick, Phillips, Salzman & Flatt, P.C. (Atlanta, GA)

There exists among suppliers a common misconception that when a waiver and release of lien rights is conditioned upon receipt of payment by the supplier that the supplier’s lien and bond rights remain intact if the supplier does not receive payment. This belief often stems from a misunderstanding of Georgia law.

Georgia law provides forms for the interim and final waiver and release of lien and bond rights titled, “Interim Waiver and Release Upon Payment” and “Waiver and Release Upon Final Payment”. Both of these forms contain the following language, “[u]pon the receipt of the sum of $ _____, the mechanic and/or materialman waives and releases any and all liens or claims of liens it has upon the foregoing described property . . . .” Identical or similar language is also utilized by Owners and General Contractors in the forms they prepare for their own use.

The catch that many unwary suppliers fall into is that, under Georgia law, executing a form with such language can, despite the language making it effective “upon receipt of payment”, effectuate a waiver and release of the supplier’s lien rights. This is because Georgia law has a special provision concerning when payment is received that deems you to have been paid, even if, in fact, you have not been paid.

Under Georgia law, payment is deemed received, and a supplier’s lien and bond rights are terminated, at the earliest of: (1) actual receipt of payment; (2) execution by the supplier of a separate written acknowledgment of payment in full; and (3) sixty days after the date of the execution of the waiver and release. The first statutory provision regarding receipt of payment is what most suppliers believe to be the common understanding of what constitutes receipt of payment. While the second statutory provision regarding receipt of payment is not commonly known by most suppliers, it is only fair that if a supplier signs an acknowledgment that payment has been received that payment be deemed received. Suppliers should simply refuse to sign such an acknowledgment unless payment has, in fact, been received. The third statutory provision regarding receipt payment, however, can impose an undue burden upon uninformed suppliers by acting to waive lien and bond rights without having received payment. Importantly, those harsh consequences can be avoided.

With regard to that portion of the law that deems you to have received payment, the complete Georgia statute provides: “Such amounts shall conclusively be deemed paid in full. . . [s]ixty days after the date of the execution of the waiver and release, unless prior to the expiration of said 60 day period the claimant files a claim of lien or files in the county in which the property is located an Affidavit of Nonpayment . . . .” Thus, the law provides an opportunity to suppliers to avoid the loss of lien rights when payment has not been received – the opportunity to file an Affidavit of Nonpayment within sixty days of the date of the execution of the waiver.

An Affidavit of Nonpayment is a signed, notarized, sworn statement which provides that the supplier has not received payment as provided for in the waiver and release, and the Georgia statutes provide a template. If it is filed in the correct county within sixty (60) days after executing the waiver, the supplier’s lien and bond rights are preserved and payment will not be deemed to have been received. The statutory form for the Affidavit of Nonpayment is found in O.C.G.A. § 44-114-366 (f)(2).

In summary, when executing a waiver and release of lien and bond rights, be sure to calendar the date at most fifty days later to provide you with enough additional time to file and record your Affidavit of Nonpayment if you have not been paid. However, it is important to note that the filing of an Affidavit of Nonpayment does not extend the time within which a supplier is required to file, for recording, a Claim of Lien.

Here’s Your Ray of Sunshine for the Week

2009-08-25T08:00:00.001-04:00

Jim Moody
President

I recently spent a few days with my counterparts from the other state and regional LBM Dealer associations. It’s always good to get together with colleagues, and this is a robust community that shares information and ideas very well.

This year we met in Gettysburg, PA, which is sort of fitting given the times we live in. I was struck by several things at the meeting, some related to the association and some related to the industry.

It’s clear that most of us are in the same boat. Few parts of the country are doing well. Those energy-producing states in the middle part of the country seem to be holding their own, but everyone else is down. The good news is that we are not Michigan or Florida. The bad news is that most of my counterparts were more negative about the future than I’ve been.

Of course, our perspective of “bad” is a little distorted by the good times we’ve been through as a nation and as an industry. You don’t have to go too far on a tour of the battlefield at Gettysburg to gain a sense of perspective. Yes, these are bad times. But they are nothing like what this country has been through before.

Sure, most of us (and perhaps all of us) in this industry worry that the country is teetering on the brink of socialism. We worry about deficits, the credit system, and the fact that no one seems willing or able to build a new house. All of those are valid, but we’ve already seen that the worst predictions about the direction our country is taking are not coming true.

For instance, the card check legislation that all of us feared seems to have hit a wall. I won’t say it’s dead, because there are still compromises in the works. But the ability for a union to organize without a real vote isn’t going to happen.

Ditto on nationalized health care. We may end up with something, but I really don’t think that the full-fledged plan that the Obama administration wanted is going to go come to pass.

In the short run, our nation can move to the extremes. It certainly seemed that we had shifted far to the left. But the beauty of our system is that when the pendulum swings too far right or left, the huddled masses in the middle pull it back. I won’t predict that the majorities in the House or Senate are about to change, but over time (maybe even a short time), we’ll see moderation there. Even today with full control, the extreme liberal left doesn’t have enough power to force its full agenda on America.

So my point here is that while times are bad, they are nothing like we experienced in the Civil War (or War for Southern Independence for you Daughters of the Confederacy) or Reconstruction. We outlasted those bad times and built a great nation. We’ll come out of this as well. OK, maybe Michigan won’t. But everyone else will. Keep the faith.

CONSTRUCTION SUPPLIERS ASSOCIATION, SUMMER CONFERENCE

2009-08-12T13:52:00.001-04:00

CONSTRUCTION SUPPLIERS ASSOCIATION, SUMMER CONFERENCE
CHAIRMAN’S ADDRESS
FRIDAY, JULY 10, 2009

It is customary at this meeting for the chairman to give a state of the association address. Since many of us are board members or trustees, that seems redundant at this meeting. I can confidently say that the association is strong and moving in a positive direction under good leadership.

This gives me an opportunity to speak about another subject that probably has been on your mind more than once during the past 24 months.

That subject is to ask the question, “Why am I in this business?”

My initial response is that I am in the business for the money, but since there has not been much of that in recent months, I must turn to some other reasons.

I like this industry

The industry has good people – customers, suppliers, employees, business owners

We are in an honest industry – Committing to an order from a lumber mill based on a phone call or handshake really does mean that you are going to take delivery. There is a lot of integrity in that type of arrangement, especially in today’s litigation-oriented business environment.
Our success depends on the strength of our relationships – our customers are typically multi-transaction and multi-year customers and eventually friends. The same is true for suppliers. I like to be in an environment where relationships matter.

I love the American Free Enterprise system, and while all industries operate within that system, our industry truly embodies the principles of free enterprise. There is risk and reward; lately we have been operating more on the risk component than the reward component. Success comes with hard work, learning from mistakes, creativity and innovation, and decisions that we make.

Competition is keen. It is possible to differentiate oneself from competitors. An owner in our industry can actually create a poor, mediocre, satisfactory or outstanding business. The decisions we make and the way we lead our companies really do impact our outcomes.

Our business is pretty simple – you buy a product that is virtually indistinguishable from the product that your competitor down the street buys, you send it out of your store on a truck that looks just the same as the one down the street, to a jobsite that looks just the same as the one your competitor services ------- but within that simple framework there is a challenge to do it better, cheaper, faster, with more value to your customer than the next guy.

I like the fact that in our industry we help people build an important necessity of life, and sometimes their dream home. In fact in our company we have adopted an advertising slogan that I picked up at an earlier summer conference “Together we build the American Dream”

I like the smell of cut wood, especially cedar.

I like having an important role in providing a living for 40 or 50 people and families.

In most communities, owning the local lumberyard affords an opportunity to have a positive impact and influence on the community

Civic clubs, school boards, city commission

US Congress through the lobbying initiative of CSA and NLBMDA

Community events

Signage – many of us have marquee signs in front of our stores on busy streets. You can have an impact on the community simply by the message that you put on the sign.

Eagle Scouts – I think that Blake Builders Supply is primary source for all of the local Eagle Scouts to obtain materials for their final projects.

I like the whole concept of being an entrepreneur – no corporate meetings, no shareholders, flexible to customer needs and marketplace changes, rapid feedback on decisions, the adrenaline rush of risk and reward.

Finally, I believe that God gave me the ability and opportunity to do what I do. I also believe that God has a plan for every life. So if I do my best to fulfill my opportunity and ability, that is a very good thing.

I hope that my reflections have struck a chord with you as you think about “Why am I in this business?”

News You Can Use - The Many Shades of Green

2009-08-12T11:28:00.001-04:00

Plantings, Not Shingles, Gaining Favor As Cover for Houses in Central Ohio
By Jill Laster, The Columbus Dispatch, Ohio

Central Ohioans looking to add a garden to their homes have a new option from builders: the roof.

Green roofs use plantings on top of water-resistant membranes to lower energy costs, deflect heat, extend the life of the roof, reduce storm-water runoff and absorb noise.

Demand for the roofs is growing across the United States. More than 3.1 million square feet of green roofing was installed during 2008 in the United States, a 35 percent increase from 2007, according to Green Roofs for Healthy Cities, an industry association. Although green roofs are most common on businesses, homeowners are starting to take notice.

In central Ohio, several companies are selling green roofs, including LiveRoof, GreenGrid and Green Roof Blocks. No local homeowner has installed a living roof yet, but they say they have had an increase in callers both in central Ohio and nationwide.

"I think it's part of an increased awareness of our impact on the planet," said Kelly Luckett, president of Green Roof Blocks of Florissant, Mo. "Green roofs are just a small part of that.
Aesthetics play a role as well. Jeff Salisbury and Christine Plepys of Newport, Ky., added a green roof to their new garage three years ago because they wanted something pleasant to look at from their porch. Read more.

News You Can Use - Trends and Numbers

2009-08-12T11:18:00.002-04:00

Homeowners Turning to Phased Remodeling Due to Down Market, Says NARI
Residential remodels are no longer those once-in-a-lifetime projects that keep homeowners dreaming years on end before they ever pick up a hammer. Instead, many homeowners opt to do a series of remodels as their schedules, budgets and lifestyles evolve over time, according to the National Association of the Remodeling Industry (NARI).

In fact, according to a recent Consumer Reports poll on home remodeling, 36% of homeowners who plan to remodel plan to do so in phases. Read more.

Builders Ask Congress To Extend and Enhance Home Buyer Tax Credit
To help create jobs and set the stage for a strong recovery, the National Association of Home Builders (NAHB) today called on Congress to extend and enhance the $8,000 first-time home buyer tax credit due to expire on December 1.

Specifically, NAHB is asking Congress to extend the home buyer tax credit program through November 30, 2010 and make it available to all buyers of principal residences. Read more.

Consumer Satisfaction With Windows and Patio Doors Declines, According to Latest J.D. Power and Associates Report
As economic difficulties lead homeowners to curtail remodeling projects, overall satisfaction among consumers with windows and patio doors has declined in 2009, according to the J.D. Power and Associates 2009 Windows and Patio Doors Satisfaction Study(SM) released today. Read more.

AIA Study Estimates up To 270,000 Construction Industry Jobs Could be Created if American Clean Energy Security Act is Passed
The American Institute of Architects (AIA) conducted a study to determine how many jobs in the design and construction industry could be created if the American Clean Energy Security Act (H.R. 2454; also known as the Waxman-Markey Bill) is enacted. The study analyzes two provisions included in the House-passed Act, the State Energy and Environment Development (SEED) program and the Green Resources for Energy Efficient Neighborhoods (GREEN) program. Using studies that measure the extent of job creation in the building industry, the findings estimate that as many as 270,000 jobs could be created or saved if the building-related provisions in H.R. 2454 become law. Read more.

Time to Get Moving

2009-08-12T10:12:00.000-04:00

By Jim Moody, CAE
CSA President

It’s an exciting time at CSA. We’re moving on August 24 to our new home in Tyrone, GA. This move fulfills a dream the Board has had for some time: Owning our own building on the south side of Atlanta.

Because of generous contributions from various members, our new space is quite plush. We have very nice base and crown molding, and there is bead board and chair rail in the public spaces. Our carpet is attractive and durable. Our doors are two-panel V-grooved to fit in nicely with the cottage look of the exterior. Some decorative elements and a grill have been donated. It’s really turned out nicer than I ever dreamed we could afford.

Once we are settled, we’ll have an open house for all members to come and see your new building. Of course, members are always welcomed to drop by – you don’t have to wait for the official invitation.

One of the great things about this new building is the ability for us to hold board meetings and educational sessions. We have previously had to use hotel space because our conference room was not large enough. The new conference room will have great A/V capability and can easily be configured into a classroom or a boardroom. We’ve entered into a partnership with BlueLinx that allowed us to purchase high-end conference room furniture (comfortable chairs!), and this conference room will be known as the BlueLinx Learning Center.

A serving kitchen right beside the BlueLinx Learning Center will allow us to provide food easily and at a reasonable cost so that we can keep registration fees to a minimum. Through the magic of American Express points, we will also have a full-size refrigerator. Our current refrigerator is sized for a dorm room and is on its last leg.

As we pack up, there are a number of CSA projects that still require work. It’s just about roundtable season, there are a couple of educational programs on the agenda, and we’ve got a new health insurance program to roll out (more about that in a couple of weeks). We’re aiming for this move to have minimal impact on our regular work. But, on Monday, Aug. 24, you will probably find that the office is unreachable while we are in transit. We hope you’ll excuse this “down day” as we relocate. Rest assured that we will be back in the saddle as quickly as possible, ready to serve you from our own new building.

Red Flags Rule Postponed Until November

2009-07-30T08:46:00.002-04:00

The Federal Trade Commission (FTC) announced that it would further delay enforcement of the "Red Flags" Rules by another three months, from August 1 to November 1, 2009. The commission also announced that it would be doing more to inform small businesses and other entities about compliance on this issue. The FTC also wants to smooth the way for easier compliance by offering additional resources and guidance to clarify whether businesses are covered and what they must do to comply.

"Although many covered entities have already developed and implemented appropriate, risk-based programs, some—particularly small businesses and entities with a low risk of identity theft—remain uncertain about their obligations," said the FTC in a release. "The additional compliance guidance that the Commission will make available shortly is designed to help them."

The FTC has provided a set of FAQs for the guidelines that address how the agency intends to enforce the Rules, noting that "Commission staff would be unlikely to recommend bringing a law enforcement action if entities know their customers or clients individually, or if they perform services in or around their customers' homes, or if they operate in sectors where identity theft is rare and they have not themselves been the target of identity theft."

The full set of FAQs can be found here.

Thank you to the Mid-America Lumbermen's Association for this updated information.

More Signs of Hope for Housing Market

2009-07-29T15:01:00.001-04:00

The S&P/Case-Shiller Index, a leading barometer of the U.S. housing market, recorded a slowing of the rate of decline for existing-home prices for May 2009. This is the fourth consecutive month that both the 10-city and 20-city composites showed improvement, which is being heralded as a possible turnaround for the stalled real estate market. Read more.

CSA Makes a Deal for YOU!

2009-07-29T13:00:00.000-04:00

Looking for high-level sales training for your staff but put off by the typically high cost of a consultant? CSA has a deal for you. Through our relationship with Tim Shaver of the Sandler Sales Institute, we are able to offer a 12-week course of excellent sales training for only $300 per person. This kind of training normally runs in the thousands of dollars, but we happened upon a situation where Tim is piloting web-based teaching. The only catch is that course participants must complete an evaluation at the end of the program.

Sessions will run for one hour beginning at 2 p.m. ET on Tuesdays, starting Sept. 15 and running through Dec. 1.

Details of the course and a registration form are now available. The course is limited to 25 people, and the fee increases to $400 for those who don’t register by Aug. 15. Because extensive materials must be prepared and shipped to registrants, we can’t take anyone after Sept. 1 (but this one will sell out fast – don’t wait until the deadline to register or you may find that there’s not a spot left).

Rarely do we have the opportunity t provide such high-level training at such an affordable price. Register your sales team today. You don’t want to find out from your competitor just how great this program was!

Click to enlarge, print and use the registration form.

NLBMDA ALERT: Health Care Reform

2009-07-29T12:00:00.000-04:00

NLBMDA has long worked with a broad-based coalition of business groups to advance health care reform that would lower costs and increase access to quality health care. Unfortunately, the Democratic health care bill introduced in the House of Representatives, "America's Affordable Health Care Choices Act of 2009," (H.R. 3200) is a misguided approach that aims to expand health care coverage through a government-run public plan and costly mandates and taxes on the very small businesses the bill purports to help.

H.R. 3200 is a massive restructuring of the health care system in this country and includes many mandates and additional taxes on employers. The bill will create a public health care option and establish an individual mandate requiring every American to either buy private insurance or buy into the government run plan. If an individual fails to do so then they will be faced with a 2.5% tax on their modified gross income. Employers will be required to provide a payment towards healthcare costs to their workers. The minimum employer contribution in the case of an offering employer is 72.5% of the premium on individual plan and 65% of the premium for family coverage.

The so-called "pay or play" provision requires employers to offer a qualified plan to all employees. What is considered qualified will be determined by the Federal Government and currently the definition of employee appears to include both full and part time workers. If the offered plan does not meet federal standards or the employee opts to enter the public plan, then the employer must pay an 8% tax that will be contributed to the federal healthcare exchange.

This is a major burden for business in the current economic climate. An additional "surtax on the wealthy" that has been proposed to help cover the $1 trillion price tag of H.R.3200 will also impact the many small businesses that pay taxes on their individual tax returns. The surtax will begin for couples with a modified adjusted gross income of $350,000, and is expected to raise $554 billion, or half the total costs of the Democratic plan. Data from the Joint Committee on Taxation, however, says that at least 55% of the revenue raised by increasing the top two tax rates will come from small business income.

Take Action: The House may vote on H.R. 3200 this week before the August Congressional recess. NLBMDA and many of our federated state and regional associations have signed on to a coalition letter today to the Hill expressing our strong opposition to employer mandates and tax increases. Contact your Representatives today to urge them to oppose H.R. 3200 and work instead for real reform that cuts cost and improves competition in the health care system. You can quickly email your member of Congress through NLBMDA's Build the Vote website. Health care reform that increases costs for small businesses is a risky move that threatens our economic recovery.

News You Can Use - Trends and Numbers

2009-07-29T11:50:00.002-04:00

Overall Housing Starts Rise 3.6 Percent in June, With Single-Family Starts Up 14.4 Percent

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 582,000, 3.6 percent above the revised May estimate of 562,000, according to the latest data from the U.S. Census Bureau. Single-family housing starts in June were at a rate of 470,000, a 14.4 percent increase above the revised May figure of 411,000, the agency reported. Read more.

Existing-home Sales Rise 3.6 Percent in June 2009
Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008.

Lawrence Yun, NAR chief economist, is hopeful about the gain. "The increase in existing-home sales occurred in all major regions of the country," he said. "We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year." Read more.

New Home Sales Soar 11 Percent in June
Sales of new single-family houses in June 2009 were at a seasonally adjusted annual rate of 384,000, 11 percent above sales in May, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. The figure, however, is 21.3 percent below the June 2008 estimate of 488,000.

Sales of newly built, single-family homes rose 11 percent in June to a seasonally adjusted annual rate of 384,000 units, according to U.S. Commerce Department numbers released today. Coming on the heels of an upwardly revised number for May, the gain marks a third consecutive month of improved sales activity. Read more.

Survey Finds Home Prices Increased Significantly in May
NEW YORK, NY -- According to the May 2009 RPX Monthly Housing Market Report released last week by Radar Logic Incorporated, the price per square foot for housing increased from April to May in 22 of the 25 metropolitan statistical areas (MSAs) covered by the report. The price gains in most of these MSAs were larger than average for the month of May, which may indicate that seasonal market forces are being augmented by a more lasting recovery in these housing markets.

Radar Logic's 25-MSA Composite increased 2.1% in May on a month-over-month basis, which was an improvement from its 1.2% increase in April. The 25-MSA Composite has increased 3.7% since March 30, 2009, when it hit its lowest point since the end of the housing boom. Read more.

Consumer Confidence Falls for Second Straight Month
The Conference Board Consumer Confidence Index™, which had retreated in June, declined further in July. The Index now stands at 46.6, down from 49.3 in June. The Present Situation Index decreased to 23.4 from 25.0 last month. The Expectations Index declined to 62.0 from 65.5 in June. Read more.

NLBMDA News - Congress Works to Extend FHA Foreclosure Fund

2009-07-29T11:48:00.001-04:00

Before the August recess, Congressional leaders are working to pass legislation boosting funds for the Federal Housing Administration (FHA), as well as the Federal Highway Trust Fund and unemployment fund. The bill would increase the FHA Mutual Mortgage Insurance Fund commitment limit from $315 to $400 billion. Without such action, the funds available for foreclosure mitigation could run dry in August, jeopardizing the few positive signs of life the housing industry is currently experiencing.

NLBMDA News - Tax Credits for Home Improvements Sought

2009-07-29T11:47:00.000-04:00

Georgia Congressmen Hank Johnson (D) and Nathan Deal (R) plan to introduce legislation to create a tax credit for the purchase of materials for home improvements. The $2,000 (single filer)/$4,000 (joint) credit would double for the purchase of materials that qualify under a green building standard. Read more.

NLBMDA News - Home Builder Confidence Gaining in July

2009-07-29T11:46:00.002-04:00

Home builder confidence in the market for newly built, single-family homes notched up two points in July to its highest level since September 2008, according to the recently-released National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI rose two points to 17 in July as builders saw an improvement in current sales conditions but continued to express concerns about the future. Read more.

News You Can Use - The Many Shades of Green

2009-07-29T11:45:00.002-04:00

Southern Pine Producers Show Scant Interest in Green Certification
Survey finds few want the certificate but most want to be thought of as green
by Craig Webb
A majority of Southern Pine producers responding to a recent Southern Pine Council survey don't have green certification for their forests now and nearly half don't plan to do so, despite getting regular requests for certified products and feeling it's important to market Southern Pine's green qualities. Read more.

Producers cite costs in green certification survey
(Jul. 28) Wood certification has reached its 15th birthday, but many forestry companies still harbor reservations about the costs and benefits associated with green certifications.
This was the finding of two recent surveys conducted by Random Lengths, an industry publication that tracks lumber and other LBM commodity prices, and the Southern Forest Products Association (SFPA), a forestry trade group. Read more.

News You Can Use - Safety Corner

2009-07-29T11:42:00.001-04:00

The National Burglar and Fire Alarm Association (NBFAA) recommends the following safety tips for protection against carbon monoxide poisoning.

Install CO alarms outside each sleeping area of the home and on each floor of the home. For greater protection, connect the CO alarms throughout the home so that when one activates, they all activate.
Adhere to all manufacturer’s guidelines and instructions for installation.
Identify and store all local emergency contact numbers for a CO alarm emergency.
Program these numbers in your cell phone as well, in case you are not at home when an alarm activates.
Test monthly and confirm that each CO alarm is operating properly to the manufacturer’s instructions. Read more.

Webinar: What Dealers Need to Know about DOT State & Federal Laws

2009-07-16T12:49:00.004-04:00

W E B I N A R

What Dealers Need to Know About DOT State & Federal Transportation Laws
with Larry Marler of Construction Suppliers Association
Tuesday, August 25, 2009 at 3:00p.m. (EST)
$139.00 per logged on computer

Everyone knows that the Department of Transportation has clamped down. Trucks are being stopped and records reviewed more often than ever before. Do you and your employees driving the trucks understand the regulations? Are you in compliance? The changes that have occurred over the past few years are many and the penalties for non-compliance are severe. A basic overview of the following will be covered in this special webinar. Be sure that you, your managers and drivers all get together to participate in this one!

Topics:
· Who’s under the law
· Who’s exempt
· Commercial vs. CDL
· IFTA & IRP
· Truck Maintenance & Inspections
· Accident Reporting Requirements
· Hours of Service and Work Records
· Physical Requirements: Bridge Law – How it Works and much more…..

The presenter, Larry Marler has over 38 years in the transportation safety business. He served as 19 years as Safety Director for 5 major long distance carriers and 19 years assisting members of CSA. He knows our industry and will be able to answer your questions so be sure to have them ready!

Click on the pictures to enlarge, print and complete the registration forms.

Georgia Passes New Law That May Enhance Enforceability of Non-Compete Agreements

2009-07-16T10:45:00.002-04:00

From Jackson-Lewis

The Georgia legislature has passed a new law that makes employee restrictive covenants and non-compete agreements easier to enforce. While House Bill 173 has been signed by the governor, it will not go into effect unless the Georgia Constitution is amended in a statewide referendum in the 2010 general election. If implemented, Georgia will transition from a state where such agreements can be difficult to uphold to one where such agreements are regularly enforced, thus joining the majority. Read more.

Highlights from the Summer Management Conference

2009-07-15T10:01:00.011-04:00

By: Jim Moody, CAE

CSA President

We’ve just returned from our Summer Management Conference in the north Georgia mountains. Though our crowd was smaller than in the past couple of years, those who attended seemed to find it a meaningful experience.

One of the things that I love about CSA is the focus on family. Many of the members are family-owned companies, and CSA has always welcomed spouses and children to the Summer Management Conference. It’s not unusual for fathers to bring their sons or daughters who will eventually take over the business to our roundtable meetings. This family orientation says a lot about the character of the organization. Frankly, it’s one of the reasons I took the job almost three years ago.

It was heart-warming to see families out on the lake kayaking, jet-skiing or just tooling around on a boat. Some folks went horseback riding while others hiked up mountain trails to waterfalls. We also had a large group venture down the Ocoee River for a really fun whitewater experience (fun unless you were in the boat that flipped over, but that’s another story).

While we had substantial educational opportunities at the meeting, I’m not apologetic for planning a meeting that includes ample opportunity for fun. You work hard day in and day out. It’s a stressful business, and that’s never been more true than today. I believe creating opportunities for you to let off steam, enjoy time with family, and enjoy bonding with colleagues is a critical part of the management conference. As we choose places to meet, we do it with an eye towards the activities in the area.

Of course, we also look at the pricing. We chose a smaller, lesser known property this year because of the value it provided. It was quaint and rustic yet nice all at the same time. The food was excellent and again provided good value. As it turned out, to the surprise of some, it was a perfect place for us.

Next year we’ll again be at a more typical resort. The economy has hurt hotels in the same way it has hurt our industry, and hotels that were once out of our range have become possibilities. We’ll be at Marriott Bay Point Resort in Panama City Beach. This is, I believe, the nicest hotel in the Panama City area. It’s set up for conventions like ours and for families. There are ample on-site restaurants (including one on the water with a very nice sunset view) and the pools are what you’d expect from a top-tier resort. There’s great golf and a very nice spa. Water sports (kayaks, jet skis, etc.) are available for rental, and the bay makes for a very nice water playground.

One of the drawbacks of this property for many years was the fact that it was on the bay and not the gulf. While there is a small sandy beach, it’s not the same as being right on the gulf. The hotel has solved this problem with the acquisition of a boat that ferries hotel guests a mile or so across the bay to Shell Island. This island is part of the St. Andrews State Park, so there is no development there. It’s pristine beach, and because there’s no bridge, it has a private island feel to it.

We considered Sandestin for this meeting, but the part of Sandestin we could afford was not the nice new part. From where we would have been, you’d still have to drive or ride a shuttle over to the beach, and their beach is often six or seven rows deep with chairs. If you aren’t in the first row, your beach experience isn’t that great.

So, Marriott Bay Point it is. We’ll be there soon after the 4th of July (Thursday, July 8-Saturday, July 10), and you can tie in a full-fledged beach vacation if you’d like. Our rate is a bargain at $178/night. That rate is extended to July 3 - July 13. Mark your calendar now. For reservations, click here.

Meanwhile, the Education Committee is seeking ideas for next year’s speakers. If you have an idea of someone you’d like to hear, please let me know so I can pass it along. Recommendations are desired from everyone – not just attendees of this year’s meeting.

For those of you who did attend this year, thanks so much for supporting CSA. I don’t take lightly that you gave your time and money to the association, and there are many competing interests for both of those. I trust that you feel that the return you received on your investment was adequate. If not, please let me know.

You can see a full set of photos from the event here.

Where’s the Money From? Simple Question to Saves Lien Rights on Credit Accounts

2009-07-15T09:54:00.001-04:00

By: Jared W. Heald, Esq.
Hendrick, Phillips, Salzman & Flatt, PC,
Atlanta, Georgia

In the current economic recession, materials suppliers are continually having to write-off bad debt as their credit-account customers continue to default on making payments for materials, file for bankruptcy, or simply close the doors.

When faced with such a situation, those suppliers who have protected their lien rights can take solace in the fact that while their customers may be going out of business, the supplier can look to the owner of the real property into which their goods and materials were incorporated for payment. However, a little-known nuisance in Georgia law may operate to erase suppliers’ lien rights without their knowledge.

As a prerequisite to preserving lien rights, Georgia law requires suppliers, who provide goods to a customer on more than one job pursuant to a credit-account, to make a reasonable effort to ascertain the source from which their customers received the funds being paid to the supplier so that the supplier is able to properly allocate the payment. Georgia law requires the supplier to ask its customer where the money being used to make payment on the credit account originates. In the absence of an inquiry, a supplier runs the risk of waiving its lien rights.

Georgia law does not permit a material supplier to blindly allocate a customer’s payment to the delivery of choice, which understandably is often the oldest delivery still on the books, even if the customer consents to the allocation. The following example will demonstrate this rule of law in action and explain why the inquiry is crucial.

Supplier is in the business of selling masonry products on credit to approved customers. Masonry Contractor is one such credit-account customer of Supplier. Masonry Supplier is awarded a contract on two projects, Y and Z. Supplier provides $20,000.00 in goods to Masonry Contractor at Project Y on August 15th. Supplier provides $30,000.00 in goods to Masonry Contractor at Project Z on September 15th. Supplier tracked the provision of supplies to the two projects using separate account ledgers.

On November 1st, Masonry Contractor makes payment to Supplier in the amount of $20,000.00. Supplier, unaware of its duty to make an inquiry regarding the origins of the monies being paid to it by Masonry Contractor, applies the payment to Project Y for two reasons: first, the payment received from Masonry Contractor matches the dollar amount of goods sold to Project Y; and, second, Project Y’s account was the oldest outstanding delivery to Masonry Contractor. Unfortunately, shortly thereafter, Masonry Contractor does not make further payment to Supplier and is rumored to be going out of business

On December 1st, Supplier files a claim of lien on Project Z for the $30,000.00 of goods supplied to Masonry Contractor for use on Project Z. Upon receipt of a copy of Supplier’s claim of lien, the Owner of Project Z challenges the validity of Supplier’s claim of lien. Owner Z argues that Supplier was paid $20,000.00 for materials supplied to Project Z making Supplier entitled to a $10,000.00 claim of lien on Project Z only. Owner Z can prove its position because Owner Z has banking records from Masonry Contractor and itself showing that the November 1st payment to Supplier was made out of funds received from Owner Z. Under Georgia law, Owner Z wins and Supplier is only entitled to a claim of lien against Project Z in the amount of $10,000.00.

The end result is that Supplier has been fully paid for the $30,000.00 worth of materials supplied to Masonry Contractor for Project Z, but has not received any payment for the $20,000.00 worth of materials supplied to Masonry Contractor for Project Y.

As all suppliers who have had the unfortunate mistake of being involved in litigation realize, the Court’s finding in favor of Owner Z against Supplier does not occur until many months after Supplier has provided materials to either of the projects in our example meaning Supplier cannot place a claim of lien on Project Y to try and secure payment for the materials provided to Masonry Contractor at Project Y. Had Supplier asked Masonry Supplier, “Where’s the money from?” this unfortunate consequence could have been avoided.

While this is illustrative example of this Georgia rule of law is simplistic, it helps explain the real pitfall faced by suppliers who fail to make the proper inquiry – the loss of lien rights through expiration of time because of an erroneous belief of payment on the project. Obviously, in the common business practice, where a supplier provides goods to a customer at dozens of projects at the same time, the realities of tracking payments received on a customer’s credit account back to the appropriate project is much more difficult and time consuming on an accounting department or accounts receivable manager. However, if a supplier wishes to have the ability to counter this unique defense available to an owner to defeat a supplier’s claim of lien, the supplier must have made the appropriate inquiry.

NLBMDA News - Obama Administration Considering Using TARP Funds to Assist Small Businesses

2009-07-15T08:30:00.000-04:00

It was reported over the weekend that the Obama administration is working on an initiative to use money from the $700 billion Troubled Assets Relief Program (TARP) bailout fund to assist small businesses, which the administration believes are the key to an economic recovery. "Small business" is defined by the federal government as companies with 500 or fewer employees. Read more.

NLBMDA News - Card Check Negotiations Given New Life By Franken's Arrival

2009-07-15T08:25:00.000-04:00

Sen. Al Franken (D-MN) was finally sworn in to the U.S. Senate on July 9, giving the Democrats the 60-vote block they need to override procedural hurtles on controversial legislation such as the so-called "Employee Free Choice Act" (H.R.1409/S.560). While several key Democrats continue to hold firm in opposition to the card check legislation as currently written, Sen. Tom Harkin (D-IA) continues to press for support of a "compromise" that will garner enough votes to bring the legislation to the Senate floor before the end of the month. Dealers who are concerned about legislation that undermines the employee-employer bargaining relationship should visit www.BuildtheVote.org to remind your Senators to hold firm in opposition to card check legislation in any form. Source.

NLBMDA News - Health Care Reform May Be Funded by Tax Hikes

2009-07-15T08:20:00.000-04:00

As Democratic leaders in the House and Senate struggle to identify methods to pay for the estimated $1 trillion price tag of health care overhaul that includes a public plan, House Democrats are reported to be leaning towards raising taxes on individuals who earn more than $280,000 and couples earning more than $350,000. Of course, these tax hikes would also impact small businesses paying on the individual rate schedule. It is estimated this would cover half the cost of the legislation, while the remainder would be covered by lower Medicare spending. Read more.

NLBMDA News - Energy/Climate Change Legislation Gets Chilly Reception in the Senate

2009-07-15T08:15:00.000-04:00

Following the closer than anticipated vote in the House of Representatives on energy legislation in June, Senate committee chairs have backed off of earlier assertions that a bill could be passed out of that chamber prior to the August recess. Read more.