Tom Reilly

Saving Water, Earning Rebates

December 27, 2022 By quadcities Leave a Comment

Kay, this is the program where the city will rebate Prescott homeowners for using certain water conservation fixtures, right?

Welcome to “At Home with Tom and Sandy.” This month we have a guest, Kay Sydow, the water resource project manager for the City of Prescott. So keep reading, because we are going to talk water.

Sandy: Welcome to our column, Kay. Tom and I are thrilled you are joining us and we are excited to talk about water.

Kay: Thank you for the invite, Tom and Sandy, and yes, we are going to talk about water and more specifically, about the city’s Water Conservation Incentive Program.

Sandy: Kay, this is the program where the city will rebate Prescott homeowners for using certain water conservation fixtures, right?

Kay: That is correct, though we go beyond fixtures. We also include hot water recirculating systems, turf removal, irrigation timers, collecting rainwater in rain barrels and something called ‘passive rain gardens.’

Tom: That is quite a lot of product management for water rebates – all about saving water.

Sandy: Let’s take these one at a time and give our readers the list and how this all works.

Kay: The rebates are all given as a credit on an active utility bill from the city. Starting with fixtures, by replacing your toilet with a low-flow toilet, a homeowner could receive between $100 and $150 credit.

Sandy: Kay, would that be determined by the water usage of the new toilet?

Kay: Yes, $100 for a 1.28 gallons per flush (gpf), or $125 for a dual flush toilet with 1.0/1.28 gpf, and $150 for a 1.0 gpf. And there is no limit on the number of toilets per household for which a homeowner can receive a rebate.

Tom: Wow, that dang near pays for the toilet. What are some of the other fixtures you include?

Kay: We include washing machines. I came upon a statistic that an average family of four does 364 loads of laundry per year.

Sandy: My mom was right, she always said she was doing laundry all the time!

Kay: LOL, if she used an ultra-efficient washer, she could save up to 4,100 gallons of water per year and receive a $200 credit on her water bill.

Tom: That makes a difference when applied citywide for sure. Is there a preferred purchase list?

Kay: Yes, the washer must be on the Consortium for Energy Efficiency list.

Sandy: I heard that if a homeowner is on a septic system, that will get them an additional $50 credit.

Kay: Sandy, you did your homework.

Sandy: Thanks, Kay. Tell our readers about the recirculating system rebate – that is the coolest.

Kay: If you install a recirculating hot water delivery system, the city offers a $150 rebate.

Tom: What sort of proof do you require? Do you send out inspectors?

Kay: No inspection required. We ask only for receipts and photos of the installed system.

Sandy: Kay, you mentioned some of the outdoor water use projects. Can you give us some insights on how our readers might be able to participate?

Kay: Sure! Outdoor water use accounts for most of the exterior usage. And, unlike indoor water use that sends wastewater through the sewer system for treatment, outdoor use will not be recovered; it is gone forever.

Having said that, projects that remove turf and replace that turf with non-water consuming ground covers helps quite a bit. By taking out the grass and replacing it with low-water plants or a passive rain garden you will save quite a lot of water.

Tom: How do you calculate the rebate for this and what proof do you need to get?

Kay: This is one project that you need to contact the Public Works Department before you begin. The city will rebate $1 for every square foot of turf removed.

Sandy: Isn’t there a rebate for installing a timer on your irrigation system?

Kay: Yes, there is. Having a timer not only eliminates overwatering, but it also allows you to maintain a watering schedule so as to only water during those times of the day that reduce evaporation.

Sandy: What is the rebate for this irrigation timer?

Kay: A $75 rebate is available for the installation of an EPA approved WaterSense labelled Smart Irrigation Timer. Again, you will need to contact Public Works before starting the project.

Tom: Please tell us what a Passive Rain Garden is. This is new to me.

Kay: Generally, this is a method of capturing rainwater by constructing an artificial depression in your yard that captures rainwater and stores it long enough to infiltrate the soil.

Sandy: If you use plants in this rain garden, do they need to be on the city’s approved plant list?

Kay: Yes, they do. Only native and drought tolerant plants may be installed in the rain garden, and we do encourage those types of plantings. The catchment can also be lined with rocks as well.

Sandy: As with the turf removal, I would presume people interested in the rain garden rebate should contact the City of Prescott Public Works Department before commencing.

Kay: Absolutely. Rain Gardens, a How-to Manual for Homeowners has recently been updated. It gives step-by-step instructions on how to install a rain garden.

Tom: Very interesting. Is there a minimum size and what is the rebate for this type of project?

Kay: The rain garden must be a minimum garden of 50 square feet in size and capture a minimum of 400 square feet of storm water redirected from the roof. The city offers a rebate of $3.00 per square foot of basin footprint.

Sandy: There are incentives for rainwater catchment as well. How do they work?

Kay: Rain barrels and cisterns are a great way to save water. This is where rainwater, typically from the roof, is collected and stored for later use. The minimum amount of 100 gallons is needed to qualify. A 75-gallon or larger capacity storage can get a rebate of $1 per gallon, while a 50-to-65-gallon capacity can receive a $0.50-per-gallon rebate.

Tom: Can you combine smaller tanks to achieve the 100 gallon minimum?

Kay: Yes, you can.

Sandy: Kay, that is great information for our readers and us as well. Now give us all the contact info and links we need to get serious about saving.

Kay: All programs come out of the City of Prescott Public Works Department. For more information, call 928-777-1130. The link to our website is www.prescott-az.gov/water-sewer/water-conservation/rebate-program.

Thank you, Sandy and Tom, for inviting me to participate in your column. This is a great way to let people know about this program. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. 928-778-0040

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7:00 am on KQNA 1130 am/99.9 fm/95/5fm or the web kqna.com. Listen to Sandy and her wingman Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.

Using Social Media in Renovation, Construction Projects

November 28, 2022 By quadcities Leave a Comment

Merry Christmas hugs to all of you, from At Home with Tom and Sandy.

Welcome to another addition of At Home with Tom and Sandy. We are here to give you the inside scoop on real estate and the construction industry – what’s up, what’s down, what’s hot and what’s not. We will share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment. We will talk about products, how to take care of your home and so much more.

Sandy: Hi Tom. So, this month we should talk about how social media affects our industry. It sure has changed the landscape!

Tom: Great topic, Sandy. I am more aware of the different types of social media than I am a participant in them.

Sandy: I believe the different types, as you call them, are referred to as “platforms.” Let’s get the lingo straight, mister.

Tom: OK, you are correct. With all the posts, tweets, peeps and chirps going on, I have a hard time keeping up. I did some looking into this subject a while ago and was astounded at the proliferation of social media platforms.

Sandy: I have heard there are well over a hundred different platforms that encapsulate and capture social media. I would like our conversation to be more focused on the more common ones used in and for our industry.

Tom: Good idea. Several of these social media outlets can be a help for folks trying to decide what to do. They can also be quite confusing.

Sandy: And some are misleading as well. The “fact checkers” are out there, but they cannot catch everything and some things they do not check. I always wondered who checked them, though?

Tom: I have a Facebook account and use it to keep in touch with family and friends. We also use it to promote our business. One is free, the other charges for different posts, I think.

Tom: I am quite concerned about what I see being shared on Facebook pertaining to help for construction projects.

Sandy: I see folks posting about needing a project done. Everything from a new build to yard work. There are a lot of good companies out there and, believe me, several of the recommendations are not as genuine as they appear.

Tom: I see links to websites for companies, which are legit. It’s the Direct Message posts that are troublesome.

Sandy: I agree with the website links. That at least lets you know if they are legitimate companies. I would be scared to hire someone through any social media platform that I could not verify licensing, reputation or have any way to validate a person’s claims.

Tom: The big red flag for me is when people post that they are looking to do your work, even something simple like cleaning up your yard, and they don’t post much about themselves.

Sandy: The ROC requires advertisers to include their ROC license number in the ad. And make no mistake, the posts we are talking about are ads.

Tom: Absolutely they are. Businesses pay for every post they make. Social media is universal and it’s a freebie to tap into, which I feel generates challenges and problems with construction.

Sandy: OK, that is the downside. Tell me about the good side of all this posting, tweeting and pinning.

Tom: I like the various platforms’ ability to help me stay connected to people I am friends with. There are some platforms where information and ideas can be shared, like Pinterest.

Sandy: I like the ideas that are “pinned” on Pinterest. There are some very clever design ideas there.

Tom: There really are. I used it from time to time to check out the way various materials work together, like metal tiles used as highlights on a stucco wall.

Sandy: YouTube is considered a social media platform as well. Now, that is a helpful forum. The videos that demonstrate the process of doing something is a valuable resource.

Tom: Agreed. The DIY folks out there can learn how to do just about everything. If someone wanted to know how to install ceramic tile, there are instructional videos for that.

Sandy: One doesn’t go to YouTube for advertising, though. I see that sometimes the instructional video producers may put their businesses forward, but only after they have taught us something.

Tom: That is legit in my mind. After watching a video about installing cabinets, folks might opt to call the producer if they are local or reach out to a professional.

Sandy: Our readers need to know that these social media platforms can be helpful; however, we need to be smart in determining how we use them.

Tom: The fact checkers are notorious for checking political facts, but they don’t vet the small guy who wants to clean your yard.

Sandy: That is a good point, Tom. We need to be our own fact checkers. If something sounds too good, it is. Our readers need to know that helping them is a big part of why the YCCA is here. Remember, don’t start without us!

Tom: since this is Christmas, and I know you are like me, you look at every day of the year as an opportunity to do better than yesterday. It is hard to believe that 2023 is right around the corner.

Tom: You are right, Sandy. Let’s all look to the future. Life brings changes and we must all develop and encourage a life of gratitude. We are all partners in our community and our circumstances will change at some time or another. We live in one of the most generous communities on the planet, so let us all continue to give the “Christmas Spirit” throughout every day of 2023 and beyond.

Sandy: Blessed is the season, which engages the entire world in a conspiracy of love. And now let us all sing one of our favorite Christmas carols, “Joy to the World.”

Tom: Helen Steiner Rice said, “Peace on Earth will come to stay when we live Christmas every day.”

Merry Christmas hugs to all of you, from At Home with Tom and Sandy. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

Diagnosing the Issue, Knowing Who to Contact

October 30, 2022 By quadcities Leave a Comment

The usual inquiry will go something like, “OK, Sandy, you gave me three names. Which one would you use?”

“Welcome to “At Home with Tom and Sandy.”

Tom: Hi, Sandy. I have a topic that I would like to put forward for this month. You are always talking about the hundreds of calls you get from folks in our area, and I have always wanted to ask you, what are the types of calls you receive? Are you up for that?

Sandy: Yes, Tom, that could be fun. I do get some strange requests for information.

Tom: Great! Let’s get started. What is the strangest request you get the most?

Sandy: OK, the most consistent call I get, at least the one that makes me smile and wonder why they called YCCA, is from families new to the area wanting to know when their trash pickup day is. I must get this call several times during any given year.

Tom: That ranks right up there with things that make you go, “Huh?” What do tell them?

Sandy: Well, I start by asking them which jurisdiction they are in. They need to know if they are in the City of Prescott, or if they have private pick-up in Prescott Valley or Yavapai County and then I give them the applicable companies to call. I live in Prescott Valley, so I have that pick-up day down pat!

Tom: I can see where this sort of thing takes some time on your part.

Sandy: It is all part of our goal to share and educate. That is so important.

Tom: It is for certain. What other types of calls make you go, “Hmm?”

Sandy: Well, a weird one is from people who want to know where I buy tires.

Tom: OK! That is a little out of the scope for YCCA, isn’t it?

Sandy: Yes and no. While not a construction related question, it does speak to the reputation YCCA has as a trusted place to turn to for everyday answers.

Tom: YCCA outreach is ubiquitous for sure. Not a day goes by that I do not hear some manner of reference to you or the YCCA. Readers of this article, when I let them know that we write this, refer to me as, “You’re the guy with Sandy! You are famous.”

Sandy: Well, I don’t know about that, but it is gratifying that YCCA is so well trusted in our community. I also get calls for the names of a seamstress and where I get my hair cut.

Tom: And, you know a seamstress or two. Do you tell people where you get your hair done? Or is that a trade secret (pun intended)?

Sandy: Well, yes, I do know a seamstress and not a trade secret as you put it, but no, I don’t let on where I get my hair done, who would want a head of hair looking like mine? LOL. Another call I get frequently is when people think they need a new roof when they do not have any symptoms.

Tom: Symptoms, such as…?

Sandy: No leaks, no broken tiles, no missing shingles, no mineral particles building up at the downspouts. And their roof is only five years old. They want three or four roofers to come out and inspect.

Tom: I get it. What do you tell them?

Sandy: Well, once I understand their concerns, I usually tell them they really do not need all that.

Tom: It’s kind of like talking them off the ledge.

Sandy: Exactly. I usually get calls from people who do not necessarily understand the process they need to go through. They put the cart before the horse. I take the time to help them understand what they need to do and in what order of sequence.

Tom: I imagine many people are grateful.

Sandy: They are usually grateful for the information. There is always a retired engineer that knows what needs to happen and just wants a name. I try to drill down a little, but they just want a name. I might hear from them again a month later wanting more assistance, which I willingly provide.

Tom: Let us talk a little bit about the information and advice you give out. I imagine you get lots of calls for subcontractors and contractor recommendations, how do you determine the names you give out?

Sandy: Good question. The usual inquiry will go something like, “OK, Sandy, you gave me three names. Which one would you use?” And I just don’t go down that rabbit hole. I just give them the names and tell them any one of those companies would be happy to assist.

Tom: Smart. So let’s get back to how you choose what name to give out.

Sandy: I spend time with the caller to find out more of what they are looking for. I try to understand their project needs and where they live. With all this information, along with knowing all my lovelies out there, I try to give out three or four names of who I think will fit their needs. If somebody calls me about a project in Paulden, I try to send them to businesses I know will go there. That is usually not somebody from Dewey-Humbolt.

Sandy: Another frequent call is from homeowners wanting a window company and window replacements. After talking with the homeowner, we find out they just need glass replacement and there is nothing wrong with the window, it does not leak, it operates great and all that is needed is new glass.

Tom: So, you must ask a lot of questions. And knowing you, Sandy, you do not blindly accept the questions and give information.

Sandy: You are right, Tom. Sometimes it is like an analysis and synthesis of figuring out what the issue is and coming to the right decision on how to manage a problem or answer a question.

Tom: Serving the community, engaging in a partnership, moving obstacles, being relevant to the community, sounds to me like what YCCA does.

Sandy: And Tom, I receive a gazillion questions on mold, deck replacements, permitting questions, survey questions, square-foot price to build, and as you know the list goes on and what is even more exciting is that I have an entire treasure trove of contractors to call. For example, you have been my “lifeline,” my “call a friend” and my Wikipedia.

Thanks for stopping in and reading “At Home with Tom and Sandy.” You’re in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

YCCA Providing Learning Opportunities, Construction Updates

October 1, 2022 By quadcities Leave a Comment

Fall is here Tom. Schools are back in session and I see so many smiling faces on the school buses.

Welcome to another edition of At Home with Tom and Sandy. We are here to give you the inside scoop on real estate, the construction industry, what’s up, what’s down, what’s hot and what’s not. We will share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment. We will talk about products, how to take care of your home and so much more.

Sandy: Fall is here Tom. Schools are back in session and I see so many smiling faces on the school buses.

Tom: We are getting into my favorite time of year. Speaking about school, I have noticed what I perceive as an increase in seminars and learning opportunities by the YCCA for our industry. Bravo Sandy!

Sandy: Well, I do not know about more, I never really counted them, I just know that YCCA just puts the opportunity out there and loves sharing processes and education with the industry.

Tom: Some of the topics are quite important and germane to what the industry is experiencing. From legislative updates and code changes to permitting across the Quad Cities, YCCA seems to have a good handle on things.

Sandy: Staying relevant is key to thriving, Tom. We have had a lot of updates to our permitting processes and our members appreciate the opportunity to stay abreast of these changes.

Tom: Those seminars impart a lot of good information and can help to relieve a bunch of frustrated contractors and building department employees.

Sandy: We have had a number of suppliers put on informative gatherings to introduce the industry to new products on the market and how some of these products might be better than what is out there now – and, of course, there are always new application methods.

Tom: I remember going to those seminars when the cement board that looks like wood siding was introduced. I also recall YCCA putting on the Boot Camp a few years ago before COVID-19 hit. That was successful at getting young people interested in the industry.

Sandy: That was a lot of work and included a large number of volunteers such as yourself. But we are not the only source for ongoing education and training. Many of our members also belong to other industry groups.

Tom: I am familiar with National Association of the Remodeling Industry, or NARI. This organization provides hundreds of courses online and webinars.

Sandy: I am familiar with NARI and would add the Association of General Contractors of America. As with NARI, they provide online courses and webinars.

Tom: Both are great resources for us. The courses tend to be a bit longer and certainly go into more depth on a subject than do the webinars.

Sandy: The courses are longer but cover a lot more ground. With the advent of online learning, one can tale courses offered from anywhere. There are a lot of schools that have a construction curriculum.

Tom: The ability to learn remotely is truly a blessing. So many aspects of the construction industry can be learned without hard classroom time. Examples of what can be taught would be codes, basic structural information, scheduling and basic or advanced business practices.

Sandy: Basic business practices are important and might be overlooked by too many in our industry. That type of course would be valuable. The other thing, though, is there are a lot of “How To” subjects that cannot be taught online.

Tom: True, I think Zoom has helped with that. It allows the student to ask questions in real time.

Sandy: I like that. YouTube is fine for some instructional videos, but I agree that Zoom can really help flatten the learning curve. Because construction is so hands on, it is difficult to demonstrate a process and learn from it without human interaction.

Tom: Our readers need to know that we are talking about everything from two-year degrees where a student can gain knowledge and skills necessary to enter the industry as a seasoned apprentice, to higher degrees in construction management, to the ongoing opportunities for current trades and contractors to hone their skill level.

Sandy: The possibilities and offerings are incredible. There are so many topics to choose from. I am always on the lookout for ways to help our members learn and improve their ability to serve the folks in our community. One of the coolest links for our industry is the International Code Council (ICC), which offers a variety of professional development and training options for every individual at any point in their career.

Tom: Yes, ICC Assessment Center provides nationally recognized credentials that demonstrate a confirmed commitment to protect public health, safety and welfare and participating in ICC education sure does raise the professionalism of a business and offer certifications.

Sandy: ICC also has a great Technical Training Program (CTTP) to welcome the next generation of leaders to the building safety profession. This program works in tandem with existing construction trades, construction technology and engineering programs to encourage colleges and trade schools to instruct students about codes and standards.

Tom: I will shout this from the tallest mountain. The building safety profession is an excellent option for young adults looking for a rewarding, high-paying career.

Sandy: Tom, I agree, the demand for skilled workers is up. Over the next 15 years, the building industry will experience a loss of 80% of the existing skilled workforce. This is an excellent career field for those looking for a challenging and enduring career.

Tom: It is never too late to learn. Thanks for stopping in to read At Home with Tom and Sandy. You are in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

What Inflation Means for the Cost of Construction

August 29, 2022 By quadcities Leave a Comment

Prices have gone up and there’s not much sign of coming down.

Welcome to “At Home With Tom and Sandy.” As I always like to say, “sit back, relax and enjoy.” We have had great monsoons, not many calls on roof leaks, lots of calls on weed removal. Tom and I are talking “inflation” this month.

Sandy: Hi Tom, I must vent a minute. I just filled up my car and my tank fill was almost $100. This is crazy!

Tom: Tell me about it. We just finished a road trip to South Dakota and almost spent $1,000 in gas. Inflation is real.

Sandy: Yes, inflation is real. It is a nightmare and it is affecting everyone and every family.

Tom: The construction industry is no exception. Prices have gone up and there’s not much sign of coming down.

Sandy: I hope our readers understand the implications and interconnectivity that inflation is having on our industry. Plastics, metals, lumber, windows, bathtubs, energy, paint and everything else is costing more.

Tom: It takes diesel and gasoline to get the raw materials prepared for building products such as concrete, masonry and asphalt, so energy prices are a big part of inflation.

Sandy: It seems like everything is touched by the inflation monster. I am hearing all manner of complaining from both our contractors as well as our citizens. The frustration level is high.

Tom: I get it. But, Sandy, there is at least one positive aspect we are seeing in the remodeling industry, and that is the value of our homes has risen.

Sandy: Boy, are you ever the optimist! But I suppose you are right; home values are certainly up.

Tom: According to Zillow, between October of 2021 and October 2022 the value of an average home will rise by 14%.

Sandy: Wow, if my math is right, that means $14,000 per $100,000 of value. That is a lot. So, with all the costs going up, tell me how you see this unseen benefit of yours?

Tom: LOL. Sure. The average value of a home in Prescott, according to Zillow, is $621,216. Given that, a 14% increase would add about $85,000 to that home.

Sandy: Maybe a great time to sell, but then what? It will cost you more to buy and no value is realized.

Tom: True, so true. Unless, of course, you relocate to a small town in Nebraska that does not have the same real estate pressures. Your access to amenities may be compromised, though.

Sandy: There are days though!

Tom: So, given the value increase of a home, and let’s say you were considering an improvement project, you would have more leverage in getting a loan to fund your project – and $85,000 is a lot of value.

Sandy: That could be a new master suite! OK, I get where you are coming from. A tiny unseen benefit, I will give you that. So, then Tom, what advice could you give to our readers about navigating any project in crazy inflation times like these?

Tom: My first go-to in cost control is always planning. Spend the time before you start planning every detail you can about your project. In inflationary times, changes can be costly.

Sandy: Most contractors are now having to order finishes, cabinets, windows at the signing of the contract because of supply chain issues. A change in some those items might be costly in both dollars and time.

Tom: Exactly.

Sandy: Folks need to take a bit of extra care in selecting the company they will be moving forward with. We recommend they ask questions about what strategies that company has to deal with cost increases.

Tom: Excellent. While no company is immune to price changes and no one can protect everything, the answers to that question alone will give the consumer insight to the level of professionalism the company has.

Sandy: Good advice. We always try to council people to interview, interview, interview. Prepare your questions in advance and ask the same questions of each company you interview.

Tom: Selecting the right company, especially in times of inflation, can make all the difference. But, all told, I would not recommend putting off a project while waiting for prices to come down.

Sandy: We are not seeing much downward movement at all, and many people are wondering, will construction costs go down and, if so, when?

Tom: I have never seen such record spikes in the price of building materials like lumber and shortages of many other products because of supply chain problems.

Sandy: Last year’s high home construction costs resulted from several factors, and many of them were related to the pandemic. Staffing shortages were one factor, and we know that many people used the pandemic to remodel their homes, and the spike in demand meant that there often were not enough workers.

Tom: Families began ordering supplies in record numbers, and it has taken two years for the supply lines to catch up and we aren’t caught up yet.

Sandy: Labor shortages are going to keep construction prices higher – upwards of 40% of construction.

Tom: And then there is that word we talked about earlier, inflation. Inflation is on the rise, and that is bringing up the cost of everything from groceries to housing supplies. We are at the highest point in inflation since 1982.

Sandy: While the resulting price increases affect all commodities, it will certainly be a factor that keeps home construction costs higher than usual.

Tom: Of course, construction prices are also closely tied to supply and demand, so this is another reason the answer to the question of will construction costs come down is no, and it’s not looking likely for the early part of 2023, either.

Sandy: Increased construction costs are difficult to stay on top of and what I see with price volatility across the board, this is harder than usual for the industry to do. I see that quotes to customers are shortened and the validity periods are being adjusted every 10 days or even one week at a time.

Tom: I think homeowners should stop looking at price – there will always be companies that cut prices to the bone to get work, but they usually don’t last awfully long – so focus on the company that offers superior service, and can get the job done in a timely manner.

Sandy: I say the economy is a wave. When it goes up, it will always come back down again. When it comes to construction costs, the key for everyone right now is to float on top of the wave until things change again. Because they will, and we will see the end of all this at some point. Inflation will moderate but not reverse.

Together, Tom and I say, “Happy September to you.” Until next month. Thanks for stopping in to read At Home With Tom and Sandy. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

Adding a Window into Problems and Solutions with a Life Coach

July 30, 2022 By quadcities Leave a Comment

We can’t see through a door, but Deborah can help by adding a window.

Welcome to “At Home With Tom and Sandy.” This month, in light of everything going on from COVID-19 to unemployment, to everyday stress, to controlled expenses and the cost of living, Tom and I thought we would take a pause and have a lunchbreak, or a “breakfunch,” for those of us who eat small meals between breakfast and lunch and do not take an actual lunch break, and veer away from our normal column. Settle in, this is going to be wonderful!

Sandy: Hi Tom! It’s August! For our detour topic this month, I have invited Deborah Peterson to join us. Deborah is a life coach, ordained counselor/clergy member, and has a business called “Coaching Clarity by Definition.”

Tom: I like taking a break from the usual, however I can’t promise I won’t weave some reference to remodeling in here. Hello, Deborah and welcome to At Home.

Deborah: Hello, Sandy and Tom. It’s great to be a part of your column and thanks for asking me to participate.

Sandy: Deborah, you do all these fascinating things, so let’s start by you telling us and our readers what a life coach is!

Deborah: In a condensed version, I help people develop strategies that allow them to focus on making positive internal shifts in thinking and behaving that changes who we are and what we do.

Tom: That actually sounds like a tall order and not easy to do.

Deborah: It is pleasantly demanding, of course, and so many people today are really hurting, feeling stuck and exhausted with the status quo template of life. With what is happening in our world now, many are anxious and scared.

Sandy: Deborah, it sounds as if even though many people tend to be motivated and possess an entrepreneurial spirit, are you saying there isn’t one of us who couldn’t benefit from some help from time to time, especially now with all of this anxiousness and fear taking place?

Tom: What a great question, Sandy. It’s akin to us asking questions to a client to see if we are a fit to help with their remodeling goals.

Sandy: Tom, I knew you would find a way to sneak in remodeling!

Deborah: LOL! And actually Sandy/Tom, you’re right on. I help people remodel (there, I snuck in your word, Tom) their thinking and hence their responses/behaviors; after all, we are what we believe or internally calculate.

Sandy: To me, that sounds a lot like helping people figure out new ways of dealing with the stress, pressure, strain and anxiety of dealing with life.

Deborah: Exactly, Sandy, and teaching individuals that when we allow bitterness and anger from past, unresolved issues to eat away at us, it spills out into our everyday life. So, I focus and strategize on removing these self-sabotaging resentments and unresolved issues.

Tom: Do you mean we are often our own worst enemy?

Deborah: Absolutely, Tom! The self-principle that gets neglected is being aware of the negative internal dialogue we believe more than any other words or actions of other well-meaning or harmful people.

Tom: Boy, oh boy, isn’t that the truth.

Sandy: Can you share with us some of the steps you take to sort out the behaviors that are getting in the way?

Deborah: Yes. It’s more about defining and clarifying the root cause of the symptomatic feelings of self-loss and emotional clutter. Emotional clutter will manifest in various ways with each individual. The way we internalize and perceive our past clutter must be exposed; however, the one constant is that all alike suffer an inner exhaustion, an energy drain that causes people to feel angry, intolerant and frustrated, unable to conduct themselves in a constructive manner in personal and extended relationships.

Sandy: Deborah, once you determine what some of the clutter is, what can you help people to get rid of it?

Deborah: I educate them on coming up with better ways of thinking and hence, the way they will respond to trouble and problems, and to slow down.

Tom: Interesting that you seem to make a distinction between trouble and problems. What do you see as the difference between the two?

Deborah: Simply put: Trouble stems from an inward hostility or varying degrees of resentment that I spoke of earlier; problems are the external symptoms and often the result of a negative cyclical lifestyle nourished by unresolved trouble. To further answer Sandy’s question about how I can help, together with the client, I reveal the root to their trouble. We gain insight into their deeply held values and beliefs that most often are limiting in nourishing and providing positive behaviors. By identifying them, we can begin to teach how to replace bad habits with good or positive habits of thinking and responding.

Sandy: That sounds so fascinating. And, Deborah, you are also ordained and use the title “Reverend.” How does that play into your process?

Deborah: Spirituality plays a large role in how we formulate our responses to trouble and problems. I work within the client’s theology as this is a very powerful means to help unlock new perspectives.

Tom: Once those new perspectives are recognized, what happens next?

Deborah: To use your remodeling metaphor, together we begin the design and construction of principle-based thinking so the clients’ outcomes better fit their values. I also show my clients how to be self-actualizing individuals, which really helps initiate some intrinsic motivation to move forward.

Sandy: What an exciting process. And, Tom, now you have Deborah using remodeling metaphors. You are incorrigible.

Deborah, what a delight to have you join us. You have helped our readers and me better understand the positive role a life coach can make in ourselves and our lives.

Deborah: It’s an honor to be a part of yours’ and Tom’s column. I love the opportunity to relate all the positive things we can accomplish in our lives to as many people as I can. Thanks for the invite and fun!

Sandy: Tom, here is my takeaway. Life coaching is an asset to get the job done and you, as a contractor, life-coach your clients. It is a form of communication that builds client awareness and trust. A life coach helps people make conscious choices.

Tom: Sandy, you are right. Deborah is indeed a valuable resource, talent and blessing to people. She helps others increase their clarity and move forward in their lives.

Sandy: How do you know if life coaching works and if someone is ready for the process?

Deborah: I offer a free 30-minute consultation to determine the person’s readiness in making this significant life transition.

Sandy: OK, Tom, back to construction and life coaching. It sounds to me like Deborah works with a door. A door closes off a room. A door provides a barrier. We can’t see through a door, but Deborah can help by adding a window. A door can lock us out, a door can let us in, a door protects us, keep us safe and even more exciting, Deborah can provide access to a beautiful space where anything is possible by opening the door.

Tom: This was indeed fun – taking a detour from our normal column. Deborah, thanks so much for offering your insight and value to the foundation of problems, the tools available and knowledge that doors can be opened.

Thanks for stopping in and reading “At Home with Tom and Sandy.” You’re in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, Architect, 928-925-5692

Sandy Griffis, Executive Director, Yavapai County Contractors Association. 928-778-0040.

Deborah Peterson, Coaching Clarity By Definition coachingclarity15@gmail.com

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7 a.m. on KQNA 1130 AM/99.9 FM/95.5FM or the web kqna.com. Listen to Sandy and Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.

Practicing Efficient Water Use

July 3, 2022 By quadcities Leave a Comment

Now, more than ever, everyone should be practicing wise and efficient use of water through conservation.

Welcome to “At Home with Tom and Sandy.” As I always like to say, “Sit back, relax and enjoy.”

Tom and I hope you enjoy our column this month.

Tom: Hi Sandy! This month, we are having our conversation more than 1,500 miles apart. I am safely ensconced in Vermillion, South Dakota.

Sandy: South Dakota – how and why?

Tom: Kids and grandkids. I’m spending the entire month just being a small part of their lives.

Sandy: Tom, that is so cool. Enjoy and have fun, but we have a column to write! I was hoping we could talk about water conservation this month. There is a lot of continued discussion about water being one of the effective tools we as a community can participate in.

Tom: What a great topic. Now, mind you, here in Eastern South Dakota, we are east of the 100th meridian, so water usage does not carry the same sense of urgency as it does in Arizona.

Sandy: I get it. Don’t they utilize the same codes as we do regarding water-saving devices?

Tom: Some, yes. Not all, though. By way of example, in Prescott, xeriscape landscaping is encouraged. Here, everyone has a green lawn. The ubiquitous sound of lawnmowers is a given.

Sandy: Ahhh, and the smell of freshly-mowed grass. Well, let’s stick to our area for now. The xeriscape you mentioned is a very real way our readers can contribute to water conservation. Desert landscaping using colored rock in lieu of grass, and low water-use plants really can help keeping water usage low.

Tom: True, and having the plants watered on a timed drip system also helps keep unnecessary water use down.

Sandy: At this time of year, it is critical that we pay close attention to our outdoor activities. That might even include washing your car. Car washes typically recapture all the water used to clean the car.

Tom: They do. Some folks still do not want to spend the extra money though.

Sandy: I get that. Some day, the cost of water might be greater than the car wash, though.

Tom: LOL, you are onto something there!

Sandy: Another outdoor activity I see that makes me wonder if any of the conservation word is getting out there, are people who wash down their driveways, patios and walkways instead of using a broom.

Tom: Yeah, that really makes me wonder as well.

Sandy: Indoor water usage also can contribute to savings. If you have an energy and water efficient dishwasher, that often uses less water than filling the sink and hand washing and rinsing the dishes.

Tom: With a quick scrape into the compost bin and a very quick rinse, you can stack them in the dishwasher to run when you have a full load.

Sandy: For me, that takes a week, unless I have company.

Tom: The plumbing and building codes have recognized the need to conserve water. Prescriptive use of certain water-saving fixtures has really helped our water use decline.

Sandy: These codes have been around for quite a while and have gotten tighter over the years. Toilets are down to 1.2 gallons per use or less. That is down from the old five-gallon flush types. And that is just for starters. And Tom, I will say I am doing my part – I recently purchased two Toto toilets and they are 1.2 gallons per flush and super cool.

Tom: Faucets, washing machines and, as you mentioned, dishwashers are all saving increasingly more water. These are good additions to the conservation arsenal.

Sandy: Even with all these savings, we are not at the Safe Yield goal – the water we use from the aquifer equals the water we recharge. That is why Prescott and Prescott Valley are looking to the Big Chino to replenish the Little Chino aquifer.

Tom: That would be the goal. I believe an agreement with SRP has been reached regarding any impact to the Verde River system. If I am incorrect, I am sure we will hear about this, though. Will Rogers was right when he said, “Out here in the West, liquor is for drinking, water is for fighting.”

Sandy: Now, more than ever, everyone should be practicing wise and efficient use of water through conservation. We have heard of the hippie generation lifestyle, the 70s, the frugal lifestyle, the low-stress lifestyle, the low-maintenance lifestyle, the lifestyle of the rich and famous, the vegan lifestyle, the minimalist lifestyle and now we had all better jump on board and practice a low water-use lifestyle.

Tom: You are right, Sandy. This is a lifestyle and a way everyone can help ensure a long-term, sustainable water supply. Reducing your water use helps meet future needs, results in cost savings, decreases energy use and helps preserve the environment.

Sandy: Tom, did you know the City of Prescott has a rebate program for practicing a low water-use lifestyle? This is a way everyone can help ensure a long-term, sufficient water supply.

Tom: Kudos to the city! Efficient water use helps meet current and future needs, results in cost savings, decreases energy use and helps preserve the environment.

Sandy: To help customers who live in the City of Prescott, the city offers resident and business rebates through the Water Conservation Incentive Program. For more information, call the water resource project manager at 928-777-1645.

Tom: Let’s all do our part to be water smart!

Sandy: Tom, I like how that sounds. I am going to say it again! Let’s all do our part to be water smart!

Thanks for stopping in to read At Home With Tom and Sandy. QCBN

Tom Reilly, Architect, Renovations, 928-445-8506 renovationsaz.com

Sandy Griffis, Executive Director, Yavapai County Contractors Association, 928-778-0040

Sharing Big Thoughts About Tiny Homes

May 27, 2022 By quadcities Leave a Comment

Given the current cost of housing, it is certainly not surprising that the Tiny Home trend is on the upswing.

Welcome to another edition of “At Home With Tom and Sandy.” We are here to give you the inside scoop on real estate, the construction industry, what’s up, what’s down, what’s hot and what’s not. We’ll share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment. We will talk about products, how to take care of your home and so much more.

As we all know, there is plenty going on in the housing and construction industry and we want to share some fantastic, cool, groovy and helpful information with you. We are going to use our insight and local expertise to help you save time and money, and surmount obstacles of all kinds. So, settle in and enjoy.

Sandy: Hi Tom, for some reason I have been hearing more lately about “tiny homes,” and I do believe the reason is because of the need for affordable housing and workforce housing. I have been doing some reading about tiny homes and have learned quite a bit. As an architect, I’m sure you are familiar with this subject.

Tom: Yes, this is a subject that has had my attention for some time now. Tiny living spaces have been around for most of human history. What I always found fascinating is how sophisticated the designs have become.

Sandy: So, they are both trending and classic. Not just a contemporary phenomenon, then? You know, Tom, you can binge watch “Tiny House Big Living.” For sure, a girl can dream and try to get everything in 300 square feet.

Tom: Yup! Given the current cost of housing, it is certainly not surprising that the Tiny Home trend is on the upswing. Tiny living is about more than just residing in a small building, it is an entire lifestyle, and I am sure these TV shows delve into the details of what it is like to have your own tiny house.

Sandy: I know the IRC (International Residential Code for building), says the minimum size of a home is 320 square feet. But a house can be 120 square feet with a minimum of one habitable room. Not sure of the distinction there but I am not sure I could live in 120 square feet. I would have to become a real minimalist to rid myself of excess shoes, hardhats, glassware, scarves and the list goes on.

Tom: Me either. That being said, there are all manner of designs for tiny homes. Some are prefab, some site built and some on wheels.

Sandy: Well, the ones on wheels certainly are the more flexible when is comes to land purchase.

Tom: LOL. That is certain. Prefab models, manufactured homes and park models have been around for quite some time.

Sandy: And they still represent a more affordable housing alternative to a site-built home. I have seen some tiny homes that are extraordinary in their design. I am talking cool spaces that I think I might want to spend time in.

Tom: There are some excellent tiny home designs. An architect that has focused her career on the development of tiny homes is Sarah Susanka. Our readers can go to Susanka.com. She is both an architect and author who has championed the tiny home in both design and lifestyle.

Sandy: I asked Dr. Google about her. There are some outstanding designs. I am impressed with the careful thought that goes into the tiny home. Living in a tiny home requires a real lifestyle commitment as well.

Tom: I would think so. One certainly cannot be a collector of things. Lifestyle goals need to be radically different from most mainstream thinking. The accumulation of things as a representation of our achievements is not in the cards.

Sandy: The lifestyle choice begins with the mindset of a minimalist. Our accomplishment is measured by how little we need to live on.

Tom: He or she who has the least gets top bragging rights!

Sandy: LOL, probably. Getting back to the design of these homes, I have seen examples that are two stories. And there are folks who have used shipping containers as the basic structure for their tiny homes.

Tom: There are as many different material choices for the tiny home as there are for a conventional home. Tiny home design tends to not only be minimalist with space, but also structural integrity.

Sandy: The thin walls of a container as an example: To meet energy codes, you will need to use the high-density foam sprayed onto the walls, and then cover with a material that gives the space its finished look. Wow. Shipping containers have jumped in price, for sure. I saw some for sale the other day $6,500.

Tom: Shipping containers used for housing have become a real trend. The designs I have seen make them so open. Cutting in doors, large glass areas and even stacking them has produced truly spectacular homes.

Sandy: Shipping containers come in different sizes. Our readers should know they are all eight feet wide and come in 20 feet to 40 feet lengths. Most are 8’ 6” high, although you can get them 9’ 6” as well. When you start stacking and putting these puppies together, you are no longer talking a tiny home.

Tom: True. Also, the stick-built tiny homes are smaller, making structural spans shorter and affording the builder the opportunity to use smaller structural components. This also saves on precious space.

Sandy: Every inch counts. Whatever you can save on means more interior space.

Tom: Absolutely. The same space typically has several uses. Toilet rooms also serve as a shower space with no separate spaces. You might look at some of the more compact motor homes for examples of the types of multiple uses a space can have.

Sandy: Some motor homes are tiny homes on wheels!

I suppose the cost per square foot for building a tiny home can be high.

Tom: I have seen some tiny home kits that vary between $225 to as much as $300 per square foot. The cost to build depends on how you build it and what you want. The advantage is a 250-square-foot home at $250 per square foot costs a lot less than a 2,500-square-foot home.

Sandy: They are fun to see completed. I love the level of creativity that the tiny homes have. You can live simply and elegantly.

Tom: And, more affordably.

Sandy: It is important to look at zoning requirements and make changes where our jurisdictions can allow tiny homes and more manufactured homes to help with the affordability crisis.

Tom: Sandy, I could not agree more!

To end our column this month, here are a few pointers: Some tiny house owners across the U.S. are struggling to find places to park their tiny houses legally because of strict and often confusing zoning codes. Most local governments have a minimum square-footage requirement, so tiny houses are too small to be considered for full-time living. Tiny houses are also considered RVs in the eyes of most municipalities, which means people are not allowed to live in them all year.

Before spending money on a tiny house, you should consider what type of dwelling it will be and check your municipality’s zoning code. You might even have to work with the local zoning board to pass new tiny house-friendly codes.

Thanks for stopping in to read “At Home With Tom and Sandy.” You are in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, Architect, Renovations, 928-445-8506 renovationsaz.com

Sandy Griffis, Executive Director, Yavapai County Contractors Association, 928-778-0040

Should You Remodel Before Selling Your Home?

April 30, 2022 By quadcities Leave a Comment

Should you remodel your home to sell for a higher price?

Welcome to another edition of “At Home with Tom and Sandy.” We are here to give you the inside scoop on real estate, the construction industry, what is up, what is down, what is hot and what is not. We will share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment. We will talk about products, how to take care of your home and so much more.

Tom: Well, Sandy, I am back from gallivanting about the Caribbean, as you told everyone last month.

Sandy: I hope you had a good time, Tom, and the major question in the column is: Did you drink lots of rum and smoke Cuban cigars?

Tom: Yes, I did; most definitely, I did.
With the increased costs in construction materials and the remodeling taking place, I thought we could talk about the insured value of your home vs. the cost to replace.

Sandy: Tom, I totally agree. The discrepancy in cost to replace vs. insured value is huge and as you said, with the rising construction costs, people need to be aware of the necessity to up their insured values.

Tom: I agree. I know we have chit-chatted in the past about this, and I recently took a look at our insurance and reached out to our carrier and discussed coverage. I made a few modifications and I feel much better about our coverage.

Sandy: That is a relevant topic given today’s volatile markets. Housing costs are skyrocketing and selling your home has become so much easier.

Tom: Remodeling Magazine publishes a “Cost vs. Value” report each year. The study includes about 150 U.S. markets to obtain information for different remodeling projects that folks undertake.

Sandy: I am familiar with this report. They divide the U.S. into nine different regions that are geographically and economically connected. There is always a lot of great information there.

Tom: We use that study to approximate the cost of various projects from deck additions to master bath remodels. There are 22 typical projects in the report.

Sandy: I have read the report and remodeling just to increase your home’s investment does not seem to be the smartest route in our region. That region spans from Idaho through Colorado, Utah and Arizona.

Tom: Yes, it covers a lot of territory and the markets in this area are consistent with each other. Our material and labor costs are similar, and the availability of products is equal as well.

Sandy: The data collected suggests that as well. Also, you can click on any of the listed cities to get a drill down on that specific market. How cool is that for all the data nerds! You will have to register though to get it.

Tom: Yes, and they will send you emails on occasion. You can always opt out of them though. I have found the data between cities in a region are remarkably close.

Sandy: The cost of jobs that are depicted can also fluctuate, depending upon the design and finishes chosen by the homeowner.

Tom: Very true. The real question this report answers is not so much what a project costs, it really addresses whether a project will add value to your home and, if so, how much.

Sandy: That is important to a lot of people. Most people think it is a dollar-for-dollar add to their home’s value and it is not.

Tom: I have talked us out of work on many an occasion. We will get a call from someone wanting to sell their home and think they will get a better price if they remodel the kitchen or bathroom.

Sandy: I understand that. This report, however, tells a much different story. By way of example, a modest bath remodel costing about $25,000 will only increase the home’s value by $15,000. That is only a 60% recoup of the cost.

Tom: That is the case for most projects. According to this report, the most value comes from replacing the garage doors. That comes in at almost a 94% return.

Sandy: That does not surprise me. I have heard realtor after realtor talk about curb appeal when staging an existing home for sale. It is the simple things that count the most.

Tom: So true. I usually advise people to fix that which is broken, but not to replace the flooring unless the carpet is in terrible condition.

Sandy: So, you really do talk yourself out of work!

Tom: Yup, I do. Trying to second guess what a potential buyer would want to see is a bad gamble. I have said it before, we have torn out new countertops and whole kitchens that are less than a year old because the sellers thought they needed to do that to sell.

Sandy: Both of us have always talked about the reasons to remodel. A remodel project should be one that people want to do to enhance their lives and improve their comfort level.
So, Tom, we will end our column with this question: Should you remodel your home to sell for a higher price?

Tom: If you are remodeling to sell your property for a higher price, you must think about the return on your investment. Again, according to Remodeling Magazine’s Cost vs. Value report, most ROIs are not actually all that great. I will say to ask our readers: will the renovation help your house sell faster?

Sandy: And I want to chime in, make sure to spend your money on remodels that will help it sell, not just things you like. Spend money on remodels that offer unique and popular home features, because many people move when their physical needs change or when they are looking for newer technology. For example, if you are redoing the bathroom, add features like a walk-in shower with a bench and handrails to appeal to buyers concerned with limited mobility. Or, you could add home automation features for buyers who want to control their thermostat or lights when they are away.

Tom: That is a great point, Sandy. And, the bottom line when asking: “Should I remodel my house?” Before shelling out big bucks on a home renovation project, consider what is standard in your community. Talk to a real estate professional or contractor if you are primarily concerned with whether a home renovation will add value to your house and help it sell more quickly. After all, different trends are popular in different places; a pool might be a valuable addition in Arizona but a poor investment in Minnesota.

Thanks for stopping in to read At Home with Tom and Sandy. You’re in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, Architect, Renovations, 928-445-8506 renovationsaz.com

Sandy Griffis, Executive Director, Yavapai County Contractors Association, 928-778-0040

Experiencing the Extraordinary Rising Costs of Construction Materials

March 31, 2022 By quadcities Leave a Comment

YIKES, YIKES, and more YIKES!!! What is going on with the cost of construction materials?

Welcome to “At Home With Tom & Sandy.” We are here to give you the inside scoop and tips on everything A to Z for your home and we love talking about the construction industry. Settle in, enjoy and have fun reading our column. We sure do enjoy sharing our words with you. Thanks for being such loyal and great readers.

Tom is on vacation, floating in the beautiful blue seas and kayaking somewhe re in the San Juan Islands, drinking beer, eating great food and having a super time. He is not here for me to yak with, so consequently I am recycling a column, so I do not have to talk to myself. This is a column from June 2021, and I hope you will find it interesting and together we can miss my sidekick. Next month we can hear about his vacation travels.

Sandy: YIKES, YIKES, and more YIKES!!! What is going on with the cost of construction materials? I have never seen industry prices like this before.

Tom: Oh, boy. You said it! In preparation for this conversation, I talked with several contractors and some suppliers. And they are all shaking their collective heads.

Sandy: I have heard everything from COVID to the Suez Canal blockage to tariffs causing material supply issues and rising prices.

Tom: Me, too. It is amazing at how intertwined our economic systems are.

Sandy: The labor supply is no real big news to me. That is why the YCCA started the “Boot Camp” process a few years back. It was created to get younger people interested in a career in the construction industry.

Tom: And wow, were you were successful at that. How many souls got jobs from that effort?

Sandy: Thirteen, and I am proud to say they are still working in the industry for the original companies that hired them – all local.

Tom: But the labor problem has many facets to it. From young folks being drilled for years that college is the only route to happiness and success and eschewing blue-collar jobs.

Sandy: COVID contributes to the shortage as well. With the stimulus package paying higher unemployment, the motivation to work is lessened for some. Not necessary the skilled trades, but the manual labor force as well.

Tom: True. Our readers need to know that construction costs are skyrocketing though. The labor shortage is only part of it.

Sandy: I agree. The price of a piece of OSB plywood ½” thick has almost tripled since this time last year. Can you imagine – $64 for a 4’x8’ sheet!

Tom: That is only the tip of the iceberg. Dang near everything is up 50% to 250%.

Sandy: People are still building like crazy, though. There is a lot of pent-up demand. Talking with contractors, the funnel is not slowing down.

Tom: It is almost the perfect storm of craziness. I do not think the average consumer has a clear picture of the depth of negative impact COVID has had on our economy.

Sandy: The industry is grateful that construction was considered an essential service in Arizona; that was not the same elsewhere.

Tom: Exactly. Let us look at something as simple as granite countertops. Quarry workers in other countries could not work because of the quarantine. Therefore, the granite is not mined, and the supply dries up. The demand is still there, just not the product. If the quarantine is lessened and some mining is done, the next cog in the wheel is shipping. Cargo ships are sitting in Long Beach harbor waiting to be unloaded.

Add to that a trucking shortage. I think I heard it takes more than 800 trucks for a ship to be unloaded. And stacking container space has swallowed up the docks.

Sandy: That same scenario touches almost every aspect of the supply chain, including mining for aluminum windows and manufacturing – everything from a 2 x 4 to sinks, mechanical equipment – you name it.

Tom: In the last year, many facilities were either shut down completely, or partially opened then shut down multiple times, adding to the low supply.

Sandy: And the high demand all leads to the classic economic theory of supply and demand affecting the price of a service or commodity.

Tom: What our readers need to know is how the construction industry is handling this craziness. Estimating a project normally takes a few weeks – depending, of course, on the project’s complexity. Before the pracademic, a supplier or subcontractor would hold their numbers for 30 to 45 to 60 days. I am told that currently, seven days is the max.

Sandy: I have heard that also. How can anyone sign a contract at a fixed price when the project might take three, four, six or 12 months to complete?

Tom: Therein lies the dilemma. Some of the tools being used are pre-orders with price guarantees. This works for some products but usually not the most volatile.

Sandy: One could delay construction until things settle, but we are not really seeing a lot of that.

Tom: Some savvy contractors and smart owners are agreeing to a shared price clause in the contract. That allows a project to move forward with both parties agreeing to something akin to a floating cost. This allows the project to move forward without delays because of price increases.

Sandy: Contractors are also going to cost-plus contracts.

Tom: Prices are rising. Construction materials are surging amid higher demand and as we talked about earlier in our column, supply constraints are big.

Sandy: I have seen construction costs rising since last June and we know the increase is having a big effect on the residential construction industry. Everything from lumber to asphalt to cement to insulation has soared in price as the home-building industry has heated up.

Tom: When this thing called the pandemic happened, many suppliers cut their output, expecting that the subsequent economic disruption would cause severe reduction in demand.

Sandy: Tom, that drop in demand never occurred and because the industry was deemed essential, we avoided a shutdown. In fact, home building and renovation have been leaders in the post-pandemic economy.

In one year, from March 2020 to March 2021, lumber has increased 83%.

Tom: From everything I have read, prices show no signs of abating amid the surge in home building driven by the receipt of stimulus money and higher consumer saving because of stay-at-home restrictions. Remote work is also supporting the trend, with many people forced to live, work and play at home.

Sandy: Adding to the squeeze on supplies, wildfires struck the Pacific Northwest last fall, burning through forests slated for market. Many construction companies and suppliers have turned to central Europe to fulfill lumber orders. Forest Economic Advisors has stated that it expects lumber imports in the United States to rise 14% to 15% for 2021.

Tom: The takeaway of this is: For construction companies, higher material and shipping costs are adding to margin pressures. Through the past year, final demand pricing for construction services has grown only 2% year over year through March. This means that contractors are absorbing these cost increases without passing them on to their customers.

Sandy: Tom, our region is growing and there is no doubt about it – the housing market and the construction industry are two strong sectors keeping our economy going.

Thanks for stopping in to read At Home With Tom and Sandy. You are in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, Architect, Renovations, 928-445-8506 renovationsaz.com

Sandy Griffis, Executive Director, Yavapai County Contractors Association, 928-778-0040

Tom Reilly

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