Handling the General Liability Insurance (GLI) Crisis
Buying affordable general liability insurance coverage is getting harder all the time, but you can do plenty to manage risk in your business — making you a more attractive customer to insurance companies. According to Bruce Harrell, CEO of HBW Insurance Services, which provides warranty insurance to the home building industry, effective risk management comes down to a few critical steps.

• Keep good records. Document all aspects of the building and selling process — those records will be crucial if you ever get sued. Retain all plans, materials lists, schedules, change orders, trade contractor agreements, certificates of insurance, and sales contracts.

• Pay attention to site conditions. Most GL policies don’t cover defects related to soil movement, so it’s up to you to ensure that your lot doesn’t have expansive or collapsible soils. Retain all soil testing records.

• Transfer risks to trade contractors. Your trade contractor agreements should include “hold harmless” indemnity agreements, specify the required insurance coverage ($500,000 minimum for each home on which trades work), and require all disputes to be resolved through binding arbitration. Include a waiver of subrogation, which protects you if trades get sued for work performed on your homes.

• Manage supervisors with care. Site supervisors are the front line of defense in your risk management program, as they oversee construction quality and enforce job-site safety procedures. Make sure you thoroughly train and manage them.

• Make safety a priority. Follow all standard job-site safety procedures to prevent falls and keep workers safe from other hazards. Document your safety and safety training programs. Post “Private Property — Unauthorized Entry Prohibited” signs at all points where someone might access the site, and notify home owners and vendors in writing that they cannot visit the site without an escort. These steps will demonstrate in court that you warned people to stay away.

• Use a comprehensive sales contract. Have an attorney review all your contracts. Make sure they contain strong arbitration provisions. Document all changes and have homeowners sign the change orders.

• Implement a solid warranty program. Proactively handle all requests for warranty service after the sale. Make sure your employees and trades understand the importance of customer service and warranty calls. Document all requests for warranty service and keep copies of work orders showing you handled the requests.

All of these steps help demonstrate your commitment to running your business safely, responsibly, and professionally. That makes you a better risk and can make it easier to buy affordable general liability insurance. [return to top]

Fall Board — Hope to See You There
In conjunction with the Fall Board Meetings, Sept. 29-Oct. 3, the Women’s Council will be convening in Columbus, OH. WC meetings begin on Thursday, Sept. 30, and are open to all council members and prospects. Be sure to attend the Working Groups and Board of Trustees meetings on Friday, Oct. 1, and we encourage you to stop by the Women’s Council Hospitality Headquarters for snacks and refreshments.

Time	Program	Room
Thursday, Sept. 30
7:30 – 5:00	Headquarters	H- Clark, 2nd floor
9:00 – 5:30	Regional Trustees	CC- D 142, level 1
Friday, Oct. 1
7:30 – 5:00	Headquarters	H- Clark, 2nd floor
8:00 – 9:30	Advisory/Leadership Dev.	H – Madison, 2nd fl
9:30 – 10:30	PNP/Past Chair	H – Madison, 2nd fl
11:30 – 1:00	Area Trustees	H-Union A, 2nd fl
1:00 – 2:30	Working Groups	H-Union A, 2nd fl
3:00 – 3:30	Bylaws/Regional Trustees	H – Madison, 2nd fl
3:30 – 5:30	Board of Trustees	H – Harrison
7:00 – 9:00	Gold Key	Off-site
Saturday, Oct. 2
7:30 – 5:00	Headquarters	H –Clark, 2nd floor
8:00 – 10:00	Area Caucuses
2:00 – 5:00	NAHB Board	CC – Grand Bllrm, Level 1
Sunday, Oct. 3
8:00 - Noon	NAHB Board	CC – Grand Bllrm, Level 1
12:00 -5:00	Regional Trustee Planning	H – Knox, 2nd fl

CC is the Columbus Convention Center
H – Hyatt Regency
For more information, contact Carmel Nayman at 800-368-5242 x8410. [return to top]

You're Invited — Fall Board Reception
NAHB Associates Committee and Women’s Council invite you to attend a joint Fall Board Reception for our members.

Thursday, Sept. 30
5:30-7:00 p.m.
Blue Jackets Bistro (southwest corner of the Arena)
200 West Nationwide Boulevard
Columbus, OH

It’s only a short walk from the Hyatt and the Columbus Convention Center.

We MUST have RSVPs for this event by Sept. 24. Names will be checked at the door.

RSVP: E-mail Petra Beane or call her at 800-368-5242 x8433. [return to top]

WOMEN IN THE NEWS: Air-Lock Log Homes’ Susan Oster-Conrad

The Institute of American Indian Arts (IAIA) in Santa Fe, NM presented an honor award last spring to Susan Oster-Conrad, Air-Lock Log Homes’ President and CEO, for their commitment to higher education of American Native youth.

Oster-Conrad is a member of the Women’s Council of the Building Industry Association of Southern California, Inc.

Oster-Conrad, a long time supporter of Indian causes, in partnership with several philanthropic foundations, donated a specially customized version of their popular 44-foot diameter Hogan as the first building of the new IAIA Santa Fe campus.It now serves as the campus’ two-story cultural center.

Della Warrior, president of IAIA, said, “Air-Lock Log Homes’ commitment to and support of higher education for America’s Native youth…has made the dream of IAIA’s campus a reality and has instilled hope within those who dream of pursuing a college degree. For that, we are forever grateful.” Air-Lock Log Homes went on to complete more Hogan structures on four other American Indian Higher Education Consortium campuses in Arizona, New Mexico and Montana.

Air-Lock Log Homes is a log home manufacturer and designer using Ponderosa Pine logs harvested in quality controlled, environmentally correct ways yielding high quality logs. For more information visit www.airlockloghomes.com. [return to top]

Realtors Predict 7.1% Increase in New Home Sales in 2004
The latest sales forecast from the National Association of Realtors® expects new-home activity to hit 1.16 million units this year — up 7.1% from 2003. Resales, meanwhile, are slated to climb 6.5% to land at 6.5 million units for 2004.

The residential real estate market is being propped up by a continued drop in mortgage rates that is coinciding with increased housing construction. As such, NAR officials believe that new-home prices will jump 8.9% to a median of $212,300 and that existing-home prices will rise 7.5% to $182,700. 

"Price appreciation is projected to be only higher than historic norms next year, as supply levels come closer to market demand," notes NAR Chief Economist David Lereah. "Although we expect the number of home buyers to continue to exceed the number of sellers, the situation should improve in 2005." (www.cbs.marketwatch.com)
CBSMarketWatch.com (09/07/04) Kilgore, Tomi [return to top]

Avoiding the High Cost of Jobsite Crime
You’ve probably heard about the Earth Liberation Front (ELF), a group of environmental extremists that’s taken responsibility for burning homes under construction in New York, Michigan, and California.

The FBI is on ELF’s tail, but rarely is jobsite crime so localized and high-profile. Theft, vandalism, and arson plague home builders across the country. It’s an expensive problem that’s getting worse.

“The number of products installed in homes, the cost of those products, and the market for stolen items have all increased in recent years,” says Jim Spratt, director of risk management and loss control for Aurora, CO-based HBW Insurance Services. “Losses are proportionately greater than in years past.”

Jobsite crime sucks money from builders’ contingency budgets, impacts production schedules, drives up insurance costs and home prices, and puts the construction industry on edge. “We are all affected by this,” says Denise Emmons, special events director of the Capital Region Builders Association (CRBA) in Baton Rouge, LA. “Someone has to pay.”

Builders needn’t fight the problem alone. Associations work with local and national law enforcement agencies to combat crime in their areas, and several are developing jobsite protection programs for their members. Here are some common-sense strategies from builders, associations, and other industry pros you can use on your sites to avoid the high cost of crime. [return to top]

Order Your Women's Council Polo Shirts Today!

This is a limited-time offer! Women's Council Polo Shirts are now available! You’ve asked and we responded!  Additional Women’s Council polo shirts have been ordered and are now available in all sizes.

The Women’s Council high quality polo shirt is a great idea for Habitat Builds, Legislative Rallies, Home Shows, Golf Tournaments or anywhere else you and your members want to show that they belong to the Women’s Council.

These shirts can be used:

To make your Council stand out at:

• At Habitat Builders
• At HBA Home Shows
• To let the world know you participate as a group in walk-a-thons and other community events

As gifts for:

• Sponsors
• Women’s Council state and local leadership
• HBA leadership
• HBA staff

Place your order today.  [return to top]

Earn Money and Recognition for Your Community Service Work
Associations, Women’s Councils and members donate thousands of volunteer hours to Home Builders Care projects each year. Make sure that your efforts are recognized by entering your project for the Home Builders Care/National Housing Endowment Project of the Year Award. To enter, submit an entry form accompanied by a no more than two-page detailed project description. You may include supporting material such as press clippings, programs or other project documents with your entry form. Home builder associations and individual members are eligible to enter. Entries are due Oct. 15.

The National Housing Endowment Board of Trustees will select a winner at their December 2004 meeting. The winner will be recognized at the 2005 International Builders’ Show, where the association or member will receive a $5,000 donation to a charity of choice, story in NBN Online, press release announcement and recognition plaque. Take a look at the story of last year’s winner on the NAHB Web site. Contact Kym Kilbourne at 800-368-5242 x8447 or kkilbourne@nahb.com for more information. [return to top]

September is Associate Member Appreciation Month
Recognize the contributions of associate members throughout September — and all year long — by doing business with them. Not only does it make good business sense, associate members are a vital part of the federation.

• Nearly two-thirds of all members in the federation are associate members and their dues help fund association operations.
• The strength that associate members bring to NAHB and the local associations helps to continually improve the building industry.
• Additional advertising, sponsorship and exhibit fees from associate members generate hefty sources of non-dues revenue for each local association.

Five Associate Members Deserve Special Recognition

• Lee Terry, of Lee Terry Associates in San Mateo, CA. Terry is immediate past chair of the NAHB Women’s Council and a member of BUILD-PAC’s Capitol Club.

• In addition, four associates were inducted into the Society of Honored Associates this year:

  • Tom Board, O.C. Cluss Lumber Company, Fairmont, WV
  • James Goodwin, a new Gold Key, Complete Home Concepts, North Kansas City, MO
  • Harlan Holsing, Saginaw Bay Underwriters, Bay City, MI
  • David Sanders, Sanders Engineering, Inc., Bixby, OK

This month and every month, show associates in your HBA that you appreciate their contributions and hard work by giving them your business. [return to top]

Run Your Business Better and More Profitably!
Just click www.nahb.org/biztools to access hundreds of timesaving, moneymaking, and cost-cutting resources. You’ll find guidance in a concise, easy-to-read format on topics like financial management, production, sales and marketing, customer service, and human resources … to name just a few! Plus, get answers to your tough questions about how to use software to improve your bottom line in the Talk About Business & IT section.

Home building is a competitive business — go to www.nahb.org/biztools and gain your edge today! [return to top]

Save on Dell® with NAHB
Dell, the world's leading computer systems company, offers discounts to NAHB members on Dell Dimension™ Desktops, Dell OptiPlex™ Desktops, Dell Precision™ Workstations, Dell Inspiron™ Notebooks, Dell Latitude™ Notebooks, Dell PowerEdge™ SC Servers and PowerVault™ Storage and Dell Printers™.

Go to http://premier.dell.com to order your Dell system. Enter access code “NAHB” and access key “NAHBDELL” (case sensitive). Your NAHB discount will be automatically applied.

Your dedicated Dell Association Sales Representative is available at 1-888-577-3355 Monday through Friday, 7 a.m.-8 p.m. (CT), and Saturday, 8 a.m.-5 p.m. (CT).

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org. Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state and national home builders associations. [return to top]