Ask the Building Expert

May 2012 Article

Hello readers from all of us here at Amron Homes!

Common sense.  Not so common.  So why do they call it common sense?  Really…what does that mean?  I always assumed it to mean that simple tasks can be carried out with virtually no thought because it just makes sense to do it that way.  Having said that I pulled out my Webster’s New World Dictionary and looked up common sense.  Yes; it’s even in there.  It says “good sense or practical judgement”.  So with such a short definition I would say that…yes; common sense is…not that difficult to achieve…we would think???

Common sense should not be like buying a bottle of vitamins for your eyes; but the instructions for use are in such small print that you cannot read them; even with the help of a magnifying glass.  Housing, just like eye medication, need to make sense.  Over the years I have seen a lot of designs in housing that equal and surpass the “non-sense” used by the eye medication manufacturer.  Non-sense in my dictionary defines the word as “actions, etc. that are absurd or meaningless”.  How true!

When Amron entertains starting a new home we have a number of questions we ask ourselves.  Who do we want this model home to appeal to?  If it is a mid-range move-up home, we are looking for buyers who are leaving their smaller home and want to upgrade to a little bigger and a little better.  Chances are that their children are older so we could pick a two bedroom model since an older child does not mind a basement bedroom.  In fact they very often prefer that extra privacy.  Or possibly a 3 bedroom model but in a two-storey home.  We assume our “target market” is still fairly young and does not mind the stairs.  Being that this new home would be the proposed purchasers 2nd or 3rd home; we assume that this buyer will be a bit more secure financially and that they will be expecting a few more “perks” than their last home had.  Those perks might include basement development for that second child, or maybe a jetted tub or fireplace or hardwood flooring, etc etc.  We need to ask ourselves, what features would this type of buyer want?  What price range would they want?  And how many buyers are out there that can afford the home we plan to build?

After all the home planning decisions are made we now need to determine in what area of the city we should build this home.  We assume these “young family” buyers are active and involved in their kids sports and schools.  So…the homes location should be reasonably close to these things.  The home needs to be surrounded by homes of equal or greater value.  Planting this home in a starter community would be “senseless”.  Senseless…in my Webster’s New World Dictionary means unconscious, stupid (not a nice word), foolish, meaningless.

Aren’t so many things in our lives today senseless?  We all need to work on that; builders need to work on that, pharmaceutical companies need to work on that.

So goodbye till next month from “the Amron Gang”

 

 

April 2012 Article

Hello again readers and welcome to Amron’s page of this great little paper.

There’s a lot of things we talk about and a few that we don’t, or at least shouldn’t.  As an individual we can get away with expressing our views (otherwise known as: “shooting off your mouth”); but as an organization, my feeling is that we need to stay away from certain subjects and issues.

The first that comes to my mind is Politics.  Now Amron is a builder and the topics I write about are to be building related so that’s pretty straight forward…but…

A while ago Chiquita Banana’s announced that they would boycott Alberta Oil Sands products and stay clear of the “Dirty Oil” which it produces.  Without taking sides, my first thought was that a statement like that just might affect their banana sales in Alberta.  After all, we are just emerging from one of the worst recessions I have ever lived through.

Last year alone, combined, various companies spent $24 Billion on that project and employed many thousands of people not only on their sites but also trades and suppliers all over Canada and even in our own city.  My nieces’ husbands welding company which is located in Medicine Hat does a whole lot of work fabricating product for the oil sands.  And guess what?  That money stays here and supports our own little mini economy.  Maybe some of that money from the oil sands enters into your pocket too.

So…the big question.  Do you knock something because on the surface it doesn’t look like a good thing?  The Keystone Pipeline is the next controversial project but that’s another story.

In closing, our economy is recovering and our new home sales are reflecting that fact.  People are working.  They are making and spending money; and that…without doubt is a good thing.  We’re finally on the mend and any threats to that recovery is serious stuff. So long till next month and we’ll talk to you again.

 

 

March 2012 Article

Hello again readers.  Everyone here at Amron Homes says hi.

Today I would like to discuss basement development.  It seems that most people who do this themselves pick winter as the time to tackle this job.  Makes sense I guess as it gives those people with too much energy something to do on those long dark evenings.  But be careful; if this sort of thing appeals to you, don’t let the excitement of doing something new and different replace the orderly and correct way of doing things.

Start with a plan.  Know what you want to do in the space and balance that with the space available.  Ask friends and others for opinions; and you’ll get lots…once you know it will fit, go for the permit.  Do not miss this step.  Some people have the attitude that, “this is my home and I’ll do what I want”.  Sorry but it doesn’t work that way.  You may get away with it today but it will catch up to you.  Even as late as when you sell your home years later and then…you can tear it all out.

Ok, paperwork is done so let’s start building.  Here is a step where it doesn’t hurt to have some skilled help on site.  Do not frame too close to concrete walls because if you do…do not frame tight to the floor system above because if you do…do not forget to keep your heat ducts on the “warm” side of your “building envelope” because if you don’t…fire codes…  There is a lot to this and if it isn’t done correctly there can be some very serious consequences.  Not that I’d be concerned about the quality of your work but I would be very concerned about the type of mistake where air and moisture in the home can’t move as they must and you end up with black mould and moisture problems.  This is much like Science 101.  It’s serious stuff!  Almost like one of those new cars where you lift the hood, take a long look, then put the hood back down.  Maybe best left to the professionals.

Honestly though; if you’re determined to do this, I certainly have no problem with giving you advice or answering questions.  Hey…I’ll even come to your home and point a finger.  Maybe all you need is a little guidance.  Call me at 403-952-4071.  So…goodbye for now from everyone at Amron and we’ll catch you again next month.

 

 

February 2012 Article

Hello readers from all of us at Amron Homes.  Much has been said and written about our economy which has become as unpredictable as our weather.

In past articles I’ve suggested to you that we are on the mend and the economy is recovering.  I’ve said that now would be a real good time to get into the housing market because interest rates are down and so are home prices.  Well…I still stand by those statements.

Apparently other Canadians share my thoughts and they have been buying new homes.  Too many new homes in fact.  This, believe it or not, is causing problems of a different nature.

You have no doubt heard of the Canada Mortgage and Housing Corporation (CMHC).  Their function is that they are an Insurance Company for the Banks.  When a Bank lends money to someone purchasing a new home and they have only 20% or less to inject as a down payment, the bank must have “mortgage – default” insurance.  That means…if the customer defaults on his loan, the Bank simply gets its money back from CMHC; it’s insurer.

So where does CMHC get its money?  CMHC is backed by the Federal Government.  In 2009 CMHC had a maximum limit of $450 billion available to insure home loans.  Business was good back then with a booming housing market, so the Government approved another $150 billion.

So now…the problem…with our low interest rates and low priced housing; yes, people are buying new homes.  So much so that CMHC is approaching their $600 billion maximum limit.  Will CMHC request another increase?  Well…they might.

So now…my opinion…they can always ask but my guess is that the answer will be NO and this is why I say that.  We are hearing and reading that interest rates will remain low.  It has to if our economy is to recover quickly.  The low interest rates cannot be sustained forever and when they do go up, and yes they will; it is believed that there will be so many repossessions that it could cause the housing market to collapse.  In short, the Government is very worried about this possibility.  CMHC has already started cutting back on mortgages that it insures for the Banks.  Stricter lending rules are coming and when the maximum $600 billion is reached…then what happens??  Minimum down payments of 20% or more on a new home happens.  Young families may never know what home ownership feels like.

Impossible you say?  Hey…this scenario already exists in other countries where the children’s inheritance is the family home passed down from generation to generation.

And last…my advice.  Buy now before changes are implemented.  But use caution!  Ask your Banker or Broker; “what would my payment be if my mortgage rate went to 8%, 10%?”  Then decide if it’s right for you.

If you need assistance with your decision call me @ 403-952-4071.  So long for now!

 

 

January 2012 Article

I have often said that a company is only as good as the people that work for it.  Amron people know that and they also know that they represent our company.  They are the company!  What we give today is what we get back tomorrow.

Amron Construction had the honour of employing many fantastic people over the years and we owe our reputation, past and future, to these hard working, dedicated professionals.

Carpentry can be a very rewarding career.  I started my adult life as a motor mechanic and after 10 years it wasn’t fun anymore.  Every vehicle that came through the doors was broken and the owner was not typically happy about that.  My days were filled with negative comments and quite frankly I agreed with most of those comments.  How could something so expensive have so many problems?  I needed a change.  A positive change.  A career where I could create something positive.  Something that I could look back at the end of the day and feel proud of what I had accomplished.  Carpentry was the answer for my dilemma and the rest is history. (33 years of history)

I would encourage anyone who has lost momentum in their chosen field to consider construction work.  Especially if that element of satisfaction and pride has abandoned them.  It’s a rewarding and satisfying career.  It sure was for me.

The timing to enter construction couldn’t be better either.  Our recession is over and new starts are again on the rise.  In Alberta, Edmonton and Calgary are leading the recovery and we are right behind.  I would also suggest that any “fence sitters” seriously consider now as the best time to own your own brand new home.  We all know that prices can only go one way.  It’s still your ball game so take advantage of the opportunities folks.

So till next time, enjoy our wonderful weather and should you want to speak with me about my construction issues, just call.  403-952-4071

 

 

December 2011 Article

Merry Christmas to everyone from the Amron gang! Where does the time go? You’re thinking that I’m not the first person to ever ask that question; and you are so right. Time is something that we cannot get back. We cannot “rewind” what we just said or did. We live in the present and not the past or the future. We live life today and now at this very moment. What we do today determines the consequences that we have to live with tomorrow.

What is it about Christmas that makes us think about all these things? I’m not sure but I think for me, being a businessman; I think about the friends and customers who have helped Amron grow. Who without we would not exist. Who we hope have been treated exactly like a “customer” should be treated…..and appreciated.

So Christmas should be a time when all of us relax, slow down, and reflect on our life and actions. Maybe we should have Christmas two or three times a year just so that we have a reason to slow things down. This morning I had a visit from my good friend Denny who said to me; “We are so busy….”living life”…..that we don’t have time to…”live life”.

So on that note, I and everyone at Amron Construction wish all of you a blessed Christmas and wish you all the best for the New Year.

 

 

November 2011 Article

Hello all from everyone here at Amron Homes.  Today we’re all going back to school.  Our subject is called “The Fine Art of House Building 101”.

I’ve always said life is a learning experience.  So here follows my feeble attempt at being your teacher for the day.  My question to you is…..if you were in the market for a new home, what criteria would you use in choosing your builder?

To help you with that answer, I’m going to provide you with a few statistics and facts on the subject.

My textbook tells me that the “survival rate” for builders is rather dismal.  It says that only 1 in 3 upstarts lasts longer than three years.  That in itself tells us a lot about this industry that Amron has chosen for itself.

So why such a high failure rate?  Well…..my textbook tells me that it could be a number of reasons.  It might be the huge financial investment that it takes; it might be a product marketing issue or possibly just plain and simple…..poor management or…..the product itself.

I personally believe that management is “everything”; so let’s address that first.  Most construction companies start when someone who loves what they do decides to go into business.  They’re terrific at building homes but their not skilled in managing all the aspects of their company.  And trust me there are many to be managed.

Then again maybe it’s their lack of skill in marketing their completed product.  Amron’s salesman has told me numerous times how important marketing is and I would expect to hear that from someone whose expertise is in that area.  As a matter of fact he has told me the story of a former employee in Calgary who grew their business to be one the largest in that city.  “They were not builders” he said, “They were a family of marketing experts”.

So Ladies and Gentlemen…..all of that being said, the answer to what it takes to run a successful construction company is…..I don’t know…..But I do know what a customer should be using as criteria to pick their builder.  The textbook gives me a number of helpful suggestions.

1) Look for a company who loves what they do.

2) Look at the management team.  Are they carpenters AND business people?

3) Look at the company’s track record and their history.  How long have they been here?

4) Warranty!  Warranty!  Warranty!!  Do they stand behind their product?  If by chance they wouldn’t; would an organization like the Alberta New Home Warranty Program be there for them?  For how long?

I’m sure you can think of more but this teacher has already exceeded the number of words that he is allowed for the space allotted.

But be sure…..if you’d like to speak to me about this or any other issue just call me at (403) 952-4071.  Thank you for reading!

 

 

October 2011 Article

Have you ever wondered what our world would be like without taxes and without Government?  First thing that comes to mind is that I’d have a lot more money and you as well I imagine.  Government, over times, has become a very “big wheel”.  I’ve always thought of private construction companies that grow themselves to a point where they have to keep rolling because if they don’t and that “big wheel” stops, it falls apart.  One position affects to next and it goes down the line.  A very simple example of that is; if Amron doesn’t sell a home, what do the people in the cabinet shop do three months down the road?  That’s a small example of “big wheel” scenario!

So… back to Government… it is a huge “wheel”; and if it stops, we are in huge trouble.

Amron’s Commercial department is a very busy place.  This seems rather odd when our economy is just emerging from a recession and our neighbour to the South is still not recovering, the European economy is struggling, Greece is on the verge of bankruptcy, the Stock Market is like a teeter-totter depending on the news of the day.  Why should Amron be so busy?  Well… look in the newspaper.  Check out the Career section and you’ll see that Amron isn’t the only one who is busy.  Gosh!  Everyone in almost every area of the economy is busy.  They’re all looking for more help!  Why are all those businesses so busy?

They are busy because the Government has made them so.  When you and I sense hard times ahead we stop buying.  We tighten up our belts and spend our money only on the most absolute necessities and that is what stops those “big wheels”.  Government knows this and knows what will happen if too many “wheels” stop turning at the same time.  It would be catastrophic; so this is when Government steps in and saves us from ourselves.  We really are our own worst enemy sometimes.

I can’t believe I’m saying this but maybe taxes aren’t such a bad thing.  What would have happened to our economy if the Government hadn’t financed all the infrastructure and construction work?

Till next time.

You can reach me at (403) 952-4071.

 

September 2011 Article

I’m looking through an RV magazine and I’m spotting some interesting ads, and there are a lot of them.  I know what space in newspapers and magazines sell for, so I assume these ads were well thought out before they were submitted for printing.  After all, these RV manufacturers want you to buy “their product”.

So I think back to a conversation I had a couple of days ago with my friend Ted who just traded his RV on another make.  The reason… he says his old one was “a piece of junk”.  It had 39 deficiencies in the first month of ownership.  My first thought to that news was, of course, what if Amron passed over a new home and that had 39 deficiencies??

That’s unthinkable!  Then I look at my own situation.  In 2008 when we retired we purchased a brand new motor home.  We had all sorts of plans for our new lifestyle… but… I didn’t count.  We had as many or more deficiencies which for us didn’t stop after the first month.  Then as a double whammy, we made the mistake of purchasing it from a “Service” Center whose motto was “You bought it… You own it”.

So take that story and compare that to a new home.  Yes, unfortunately there are new homes built by unscrupulous builders which come with their own little bag (or big bag) of issues.

How do you avoid a catastrophic mistake like that?  Know your builder!  Know the management team, know the “attitude” of the company and the people that work for it.  Ask for and check out references.  Ensure that the home has a warranty provider that will warranty it even if the builder will not. (Amron has the Alberta New Home Warranty Program who backs every home we build for a full ten years.)

Don’t risk your investment.  Make the correct choice.  Don’t buy deficiencies, buy a dream home that you know was built by a company that has pride in what they do, a company that uses professional and licensed trades people, and a company who has achieved its reputation through honesty, integrity and commitment.

Questions?  Call me at 1-403-952-4071.  Otherwise, we’ll be talking again next month.

 

 

August 2011 Article

Hi again to all from everyone here at Amron Homes. Another month gone by but it was a month of fantastic summer weather.

Today I’m going to discuss what a customer should mean to a business. Again I’ve just returned to my office from a day of making purchases, paying bills, having lunch etc. etc. Today I was the customer and I’m rather disappointed. A customer shouldn’t have to apologize to a merchant for “interrupting” whatever it was they were doing so they can serve their customer.

So when I got back to work, I went straight to our lunch room bulletin board and read something I had posted for our people many years ago. I’d like to share it with you all and it goes like this.

Eleven Commandments of good business
A customer… is the most important person in any business.
A customer… is not dependent on us- we are dependent on him.
A customer… is not an interruption of our work- he is the purpose of it.
A customer… does us a favour when he calls- we are not doing him a favour by serving him.
A customer… is part of our business- not an outsider.
A customer… is not a cold statistic- he is a flesh and blood human being with feelings and emotions like our own.
A customer… is not someone to argue or match wits with.
A customer… is a person who brings us his wants- it is our job to fill those wants.
A customer… is deserving of the most courteous and attentive treatment we can give him.
A customer… is the fellow that makes it possible to pay your salary whether you are a truck driver, plant employee, office employee, salesman or manager.
A customer… is the life-blood of this and every other business.

Well business people, are you guilty of any of the above? Think about it.

One last thought… It takes months to find a customer… and seconds to lose one.

Until next time folks. Enjoy the summer and we will catch you next month.