4
LRBA LEADERSHIP PRESIDENT Tim Roble, Lavelle Company SECRETARY/TREASURER Jason Coley, Don Tietz Construction PAST PRESIDENT Al Clark VICE PRESIDENT Bryan Schoenberger, Pike Creek Builders/Modern Living Concepts EXECUTIVE OFFICER Sharon Westerholm Tim Roble, Lavelle Company Marga Ybarra Floor to Ceiling Carpet One Bryan Schoenberger, Pike Creek Builders/Modern Living Concepts Mike Hough, Hough, Inc. Ross Gailfus, Schiller Insurance Jeff Boehm, Paul Davis Restoration Greg Neisen, Crane Johnson Lumber, Perham BOARD OF DIRECTORS September is now here and with summer fading fast it is now time to start having our monthly membership meetings. The board has been meeting this summer and Sharron has some really good meetings and events planned for the upcoming months. Check out the sched- ule for the meeting dates, time and locations. We have several opportunities for members to get involved on some committees, this is a great way to get to know others in our asso- ciation. There are members who have already committed to help on some committees and we have a need for a few more. Education plays a big part in our association and Sharron has more classes planned as well. If you have a need for a class let Shar- ron know and she can help you out with that. I hope everyone has had a good summer I am looking forward to long fall, see you at the meetings. Be safe Tim Roble BUILDERS BUZZ We will be holding our first General Membership Meet- ing of the fall at Zayic Con- crete located about 1 mile East on Highway 34 on the north side of the road. (by Team Lab). Our host is John Brehm and his wife Dawn, owners of Zayic Concrete. John purchased the business from his brother Ron Zayic 3 years ago, after working for Zayic concrete for 30 years. Dawn works at the business and also does custom de- sign flooring. Bring a member prospect with, have a fun night and learn something. — Visit bam.org each week for up to date happenings — 525 Park Street, Suite 150 • St. Paul, MN 55103 p. 1.800.654.7783 or 651.646.7959 f. 651.646.2860 www.bamn.org 1201 15th Street, NW • Washington, DC 20005 p. 800.368.5242 or 202.266.8200x0 f. 202.266.8400 www.nahb.org A CUT ABOVE Lake Region Builders Association SEPTEMBER 2010 A MONTHLY NEWSLETTER SERVING BECKER, OTTERTAIL, NORMAN, WILKIN AND MAHNOMEN COUNTIES 30614 SunSet Road • detRoit LakeS 218-847-1946 Residential • new Homes & Remodeling licensed & Bonded • electRical contRacting 1040 Randolph Road • Detroit Lakes 218-847-7459 www.ModernHeatingAndPlumbing.com For Your Familys Comfort 18872 Co Hwy 21 • Detroit Lakes Tom Kirby, manager 218-847-1133 or 1-888-757-1133 Safety is a Way of Life Local 218.846.1621 Toll Free 877.597.6994 1135 Washington Ave. #8 Detroit Lakes • Home Warranty Program • 24 Hour/7 Day A Week Hotline Service • Home Profile Flyers • Comparative Market Analysis • Detroit Lakes and St. Paul-Minneapolis Multiple Listing Service • Corporate Relocation • Recreational and Lakeshore Properties • HomeDocs • Sell My Home • Home Impressions Fargo MLS The Call You need to Make! Only Congressman Collin Peterson met with members of the Lake Re- gion Builders Association on August 12th to discuss issues that are affecting the building industry. One topic in particular was the Lead Renovate, Repair and Paint ruling and how it is making it difficult for the total costs to be certified and all the rule changes. The housing market as far as banking and realty was another important topic es- pecially with all of the foreclosures and loan issues. Pictured from left front row: Tom Crowell - Crowell Construction, Perry Nodsle - Nodsle Construction, Congressman Collin Peterson, Denise Fredrickson - Midwest Bank. Back row: Dean Foss - Edina Realty, Tim Roble - LRBA President, Duane Wellenbring - Builders Association of Minnesotas State Government Affairs Chair and Dave Baranson - Edina Realty and not pictured was Jane DeAustin - Government affairs, St. Cloud and Sharon Westerholm - Executive Officer for LRBA. ZAYIC CONCRETE THE PLACE TO BE SEPTEMBER 14 AT 6:30PM

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Page 1: A Cut Above - September 2010

LRBA LEADERSHIPPRESIDENT Tim Roble, Lavelle Company

SECRETARY/TREASURER Jason Coley, Don Tietz Construction

PAST PRESIDENT Al Clark

VICE PRESIDENT Bryan Schoenberger, Pike Creek Builders/Modern Living Concepts

EXECUTIVE OFFICER Sharon Westerholm

Tim Roble, Lavelle Company

Marga Ybarra Floor to Ceiling Carpet One

Bryan Schoenberger, Pike Creek Builders/Modern Living Concepts

Mike Hough, Hough, Inc.

Ross Gailfus, Schiller Insurance

Jeff Boehm, Paul Davis Restoration

Greg Neisen, Crane Johnson Lumber, Perham

BOARD OF DIRECTORS

September is now here and with summer fading fast it is now time to start having our monthly membership meetings. The board has been meeting this summer and Sharron has some really good meetings and events planned for the upcoming months. Check out the sched-ule for the meeting dates, time and locations.

We have several opportunities for members to get involved on some committees, this is a great way to get to know others in our asso-ciation. There are members who have already committed to help on some committees and we have a need for a few more.

Education plays a big part in our association and Sharron has more classes planned as well. If you have a need for a class let Shar-ron know and she can help you out with that.

I hope everyone has had a good summer I am looking forward to long fall, see you at the meetings.

Be safeTim Roble

BUILDERS BUZZWe will be holding our first General Membership Meet-ing of the fall at Zayic Con-crete located about 1 mile East on Highway 34 on the north side of the road. (by Team Lab). Our host is John Brehm and his wife Dawn, owners of Zayic Concrete. John purchased the business from his brother Ron Zayic 3 years ago, after working for Zayic concrete for 30 years. Dawn works at the business and also does custom de-sign flooring. Bring a member prospect with, have a fun night and learn something.

— Visit bam.org each week for up to date happenings —

525 Park Street, Suite 150 • St. Paul, MN 55103p. 1.800.654.7783 or 651.646.7959f. 651.646.2860 www.bamn.org

1201 15th Street, NW • Washington, DC 20005p. 800.368.5242 or 202.266.8200x0f. 202.266.8400 www.nahb.org

A CUT ABOVELake Region Builders AssociationSEPTEMBER 2010

1602 45TH Street N ▪ Fargo

701–237–4131 ▪ ferguson.com

Your vision…

Delivering your dreams.

Our knowledge…

A MONTHLY NEWSLETTER SERVING BECkER, OTTERTAIL, NORMAN, WILkIN AND MAHNOMEN COUNTIES

EMAIL: [email protected]: 218.847.0699VISIT OUR WEBSITEwww.lakeregionbuilders.com

Lake RegionBuildersAssociation

30614 SunSet Road • detRoit LakeS

218-847-1946

Residential • new Homes & Remodelinglicensed & Bonded • electRical contRacting 1040 Randolph Road • Detroit Lakes

218-847-7459www.ModernHeatingAndPlumbing.com

For Your Familys Comfort

18872 Co Hwy 21 • Detroit LakesTom Kirby, manager

218-847-1133 or 1-888-757-1133

Safety is a Way of Life Local 218.846.1621Toll Free 877.597.6994

1135 Washington Ave. #8 Detroit Lakes

511 washington avenue n detroit lakesphone 218-847-3151 n fax 218-847-9409

www.dl-online.com

Homes of DistinctionGeneRaL ContRaCtoR

New Homes

RemodeLinG

ReSidentiaL

CommeRCiaL

Call us today to start planning your perfect home.

DON TIETZ CONSTRUCTION, INC.

“The name built on quality” 439-6271

Thirty years of excellence

mn lic# Bc-20460621nd lic# 32002

Detroit Lakes, MNHome (218) 846-0079

Cell (218) 849-4489

“Committed to Quality & Service”• Post Frame Buildings• Residential• New Construction• Remodeling• Garages

• Doors & Windows• Decks• Siding• Light

Commercial

• Home Warranty Program

• 24 Hour/7 Day A Week Hotline Service

• Home Profile Flyers

• Comparative Market Analysis

• Detroit Lakes and St. Paul-Minneapolis Multiple Listing Service

• Corporate Relocation

• Recreational and Lakeshore Properties

• HomeDocs

• Sell My Home

• Home Impressions

FargoMLS

The Call You need to Make!

Only

Congressman Collin Peterson met with members of the Lake Re-gion Builders Association on August 12th to discuss issues that are affecting the building industry. One topic in particular was the Lead Renovate, Repair and Paint ruling and how it is making it difficult for the total costs to be certified and all the rule changes. The housing market as far as banking and realty was another important topic es-pecially with all of the foreclosures and loan issues. Pictured from left front row: Tom Crowell - Crowell Construction, Perry Nodsle - Nodsle Construction, Congressman Collin Peterson, Denise Fredrickson - Midwest Bank. Back row: Dean Foss - Edina Realty, Tim Roble - LRBA President, Duane Wellenbring - Builders Association of Minnesotas State Government Affairs Chair and Dave Baranson - Edina Realty and not pictured was Jane DeAustin - Government affairs, St. Cloud and Sharon Westerholm - Executive Officer for LRBA.

at a glance

OFCALENDAR

EVENTSSeptember 14th Board Meeting 5:30 General Meeting 6:30 Zayic Concrete will host the

meeting at his new loca-tion.

October 19th Eric Sundbee from DOT Hear what the DOT

requires at the meetingOctober More RRP classes coming November General Meeting Speak Easy – Pam Perri-

Weaver will be the speaker

ZAYIC CONCRETE THE PLACE TO BESEPTEMBER 14 AT 6:30PM

Page 2: A Cut Above - September 2010

MEMBER NEWSmy ViewCODE OF ETHICSMembers of the Home Builders Association subscribe to the following Code of Ethics

n Members shall constantly seek to provide better val-ues for the customers they serve.

n Members shall at times share their knowledge with fellow members in the public in the best interest of those they serve.

n Members shall not obtain any business by means of fraudulet statements or by use of implications unwar-ranted by fact or reason-able probability.

n Members shall comply, both in spirit and letter, with rules and regulations prescribed by law and government agencies for health, safety and progress of the community.

n Members shall not perform a cause to be performed at any act which would tend to reflect on or bring into disrepute any party of the industry served by this as-sociation.

“To Promote Professionalism and to educate members and

consumers on legislative issues, while fostering

cooperative relationships for all stakeholders”

Sharon Westerholm, EO

847-1022M-F 8:00am-5:00pm

Evenings & Weekends by Appointment

1034 Hwy. 59 South • Detroit Lakes, MN 56501

Geo-Thermal HeatingHydronic Radiant Heating

[email protected]

www.midvalleygeothermal.com

HUNTER BRIARD218-439-6043 • Cell: 218-841-3238

Email: [email protected] E. Pearl Lake Road • Detroit Lakes, MN 56501

BRIARD CONSTRUCTIONNEW CONSTRUCTION • REMODELING • SHINGLING

SIDING • DECKS • ADDITIONS • GARAGES • DOORS • WINDOWS

francis construction

— Dave Francis — 218-847-4054

— Scott Francis — 218-847-3556

Specializing In...

Offering...•  State of the art construction   materials & techniques •  High quality workmanship • Complete satisfaction guaranteed

• New Homes • Steel Siding • Remodeling • Garages  • Additions • Replacement Windows • Decks • Sunrooms

“Your Hometown Quality Builder & Remodelers”

Over 50 Years in the Lakes Area

New Construction

& Remodeling

NODSLE CONSTRUCTION

1473 Legion Road • Detroit LakesRes. 218-847-8347 • Lic. #1834

Perry Nodsle 847-7603

• Residential • Commercial• Cottages • Cabinets

EStAbLiSHED 1955

Crane JohnsonLumber Co.

established 1883

620 East Main • Perham, MN 56573phone 218.346.5555 • fax 218.346.9200

GreG NeiseNsalEs MaNagEr

D.L. WINDOW & DOOR914 8th st. s.e. • detroit lakes, mn 56501

DaN muLLIkINoffice: 218-847-8708

Fax: 218-847-0489mobile: 218-841-6387

call toll Free: 800-201-8706

Anderson Int. & Ext. Doors Siding Windows Millwork Vinyl & Steel

Building a New Home?

Lock InTodays Low Rates onPermanent Home Financing12 Months from Application Date

The BAM Board had its quarterly meeting in Duluth, Wednesday, July 21st. It was a full agenda and much was accomplished. Below is a recap of the discussion and deci-sions made by the BAM Board.

NAHB ResolutionNAHB recently gave official notice of a possible dues-in-

crease. The issue will be discussed at the NAHB Fall Board meeting in New York. The BAM Board discussed at length whether Minnesota supports or opposes a dues increase of $15 per year over the course of three years. NAHB is projecting a $10 million deficit. The BAM board voted to put forth a resolution stating BAM opposes any NAHB dues in-crease and calls on NAHB to present a good-faith balanced budget proposal.

SNBA Territory The Suburban Northwest Builders As-sociation recently voted to dissolve, and the BAM board voted to remand the territory back to CMBA from which the territory came.

Building Performance Standards The Board created a task force to revise the current BAM performance standards. The law, requiring builders to provide a copy of building performance standards along with the homeowner’s con-tract, goes into effect January 1st and the task force will be producing the revised document in October.

NAHB Position Recommendation The BAM board also discussed at length the reports NAHB recently published about the reorganization of NAHC. Those three reports can be found by following the links listed below:

1) http://www.bamn.org/Documents/NAHBAssessmen-toftheAssociation.pdf

2) http://www.bamn.org/Documents/NAHBRecommen-dationsMatrix.pdf

3) http://www.bamn.org/Documents/NAHBReportof-TaskForcePositioningNAHBfortheFuture.pdf

BAM President and state rep Mike Gohman attended the meeting in Washington, D.C. where these documents were discussed and Gohman said the Lang Assessment of the Association is getting the most traction. The items up for discussion at NAHB are:

1. Including Associate members on the senior officer team

2. Option to discontinue life and senior life director posi-tion, sun setting in 2020.

3. Term limits for exec board of two years, 3-term limit4. Limit number of face-to-face meeting to save cost5. Reduce the number of full committees from 21 to 136. Convert councils to networking groups up to 10,000

relying on social media to distribute information7. Review social media outlets and streamline8. Consolidate local association The BAM board elected to create a task force to review

NAHB’s organization plans and survey, and to put out a sur-vey of BAM’s member.

New EPA Lead Rules The BAM board participated in a grassroots effort the day of the meeting wherein all mem-bers signed letters to the EPA asking them not to make the cleaning requirements more stringent. If you want to help us advocate, please send one of these three letters:

1. www.bamn.org/Documents/EPAAssociateMembers-Letter7.21.10.pdf

2. www.bamn.org/Documents/EPARemodelerLetterW.

CostEsimates7.21.10.pdf 3. www.bamn.org/Documents/EPARemodelerLetterW.O.

Costs7.21.10.pdf

Also put in this article on Waiving mechanics lien: Waiving Mechanic’s Liens Contractors are very familiar with the concept of me-

chanic’s liens and the use of lien waivers. Most commonly, the waivers are signed after the contractor or subcontrac-tor has received payment for all or a portion of its work. However, in the past there were owners and lenders who by contract, wanted to eliminate the possibility of a contrac-tor or subcontractor filing a lien against the project. They would have the contractor agree, in the initial contract or loan documents, not to file a lien against the project. The legislature responded to that abuse by passing a law that is contained at Minn. Stat. § 337.10. Subdivision 2 of that statute states that:

Provisions contained in, or executed in connection with, a building and construction contract requiring a contractor, subcontractor, or material supplier to waive the right to a mechanic’s lien or to a claim against a payment bond before the person has been paid for the labor or materials or both that the person furnished are void and unenforceable. . .

This provision was recently the subject of a case out the Minnesota Court of Appeals entitled Kraus-Anderson Con-struction Company v. Superior Vista, LLC. Superior Vista was the owner of a property in Duluth which was to the sub-ject of a large renovation. The contract for the renovation and the building work was signed prior to the construction loan being obtained, and by the time funding was found, some of the demolition work had occurred at the property. Under that scenario, it was arguable that Kraus-Anderson, and every other subcontractor and supplier on the project, would have priority over the mortgage. Obviously, that is not acceptable to the lenders. As a result, the lender, owner and Kraus-Anderson entered into a subordination agree-ment. A subordination agreement is a document which in its simplest form, states that one party agrees to give up its priority in favor of another party; it subordinates its rights to the rights of another. The purpose of such an agreement can benefit both parties. The lender is secure that it has first position with its mortgage and the contractor, although giving up its position, is assured of getting the work. With-out funding, the project would not move forward.

The problem with the subordination agreement in Kraus-Anderson, was that it accomplished too much. Not only did it state that Kraus-Anderson was subordinating its rights to the mortgage, it stated that Kraus-Anderson would not even file a mechanic’s lien until the mortgage had been paid. The trial court found that in the current economic conditions, it was not likely that the lender would be paid in full prior to Kraus-Anderson’s mechanic’s liens expiring. Under that scenario, the document they signed was not re-ally a subordination agreement, it was an unenforceable lien waiver under Minn. Stat. § 337.10, subd. 2.

AUGUST NEW MEMBERS - None Every new member the Association gains, makes it a stronger business tool for everyone! If you do business with someone who is not a member of LRBA, encourage them to join! It will benefit you, them, and every member of the Lake Region Builders.

NEW MEMBERS – WE WELCOME YOU

Call Today!Mark Hagedorncell 218.234.6185 • phone [email protected] lake avenue

Your Membership is Appreciated and Valued

GETTING INVOLVED

IS kEY!!

You Will Get Out Of YourMembership What You Put In!* Join An Event Committee* Attend Monthly Meetings* Attend All Of Our Events

BAM Board Held Third Quarter Meeting

The falling leaves will be right around the corner. I hope all of you have the opportunity to work

throughout the fall and winter months.Our first event of the fall is the General Mem-

bership meeting at Zayic Concrete. Come out, bring a friend – prospective member and have a fun night.

We need to have feedback from our members as to how we can serve you better. Shortly a let-ter will go out asking for your involvement.

Let us know if there is a committee you would like to be on. There are a lot to choose from. The events we hold raise the money needed to oper-ate. We really appreciate all of our active mem-bers that have made this association GREAT! And we need to keep it growing and strong.

Make sure you take advantage of all the ben-efits that our association offers. Our office is open for meetings with clients, I am available to help with issues, and there are many monetary benefits.

There will be several opportunities to com-plete the Renovate, Repair and Paint class that many of our members need. There will be full days of education or online classes with our as-sociation organizing the 3 -4 hours of hands on classes.

BAM is sending out flyers to all contractors, but there are more than contractors that need the certificate. See you on the 14th

WELCOME BACK MEMBERS!

UP FOR RENEWALMaplewood Construction –

Stephen PatrickHough Inc. – Mike HoughPro Systems – Mike BrodshoG & R Hill Construction, Inc.-

Gene and Randy HillB & M Electric – Mike EidenschinkColor-Tek Coatings, Inc. – Tom JessopMid-Valley Geo-Thermal, Inc. –

Kevin OlsonNoah’s Home Furnishings –

Mike Noah

Don Gravelle would like to invite all of our members, and especially those that helped him get his home closed in, to a House Warming get together on September 18th.

It will start about 4:00 - 5:00 p.m. Bring lawn chairs, & whatever you would like for beverage. He will have plenty of food but if you would like to bring something that would be fine too.

MEMBER NEWS:

Is there something happening in your business? With your family? Let us know; we would like to acknowledge it.

September is ASSOCIATE MEMBER MONTH Be sure and thank the associates that help

make this a Great organization!!!!

Page 3: A Cut Above - September 2010

MEMBER NEWSmy ViewCODE OF ETHICSMembers of the Home Builders Association subscribe to the following Code of Ethics

n Members shall constantly seek to provide better val-ues for the customers they serve.

n Members shall at times share their knowledge with fellow members in the public in the best interest of those they serve.

n Members shall not obtain any business by means of fraudulet statements or by use of implications unwar-ranted by fact or reason-able probability.

n Members shall comply, both in spirit and letter, with rules and regulations prescribed by law and government agencies for health, safety and progress of the community.

n Members shall not perform a cause to be performed at any act which would tend to reflect on or bring into disrepute any party of the industry served by this as-sociation.

“To Promote Professionalism and to educate members and

consumers on legislative issues, while fostering

cooperative relationships for all stakeholders”

Sharon Westerholm, EO

847-1022M-F 8:00am-5:00pm

Evenings & Weekends by Appointment

1034 Hwy. 59 South • Detroit Lakes, MN 56501

Geo-Thermal HeatingHydronic Radiant Heating

[email protected]

www.midvalleygeothermal.com

HUNTER BRIARD218-439-6043 • Cell: 218-841-3238

Email: [email protected] E. Pearl Lake Road • Detroit Lakes, MN 56501

BRIARD CONSTRUCTIONNEW CONSTRUCTION • REMODELING • SHINGLING

SIDING • DECKS • ADDITIONS • GARAGES • DOORS • WINDOWS

francis construction

— Dave Francis — 218-847-4054

— Scott Francis — 218-847-3556

Specializing In...

Offering...•  State of the art construction   materials & techniques •  High quality workmanship • Complete satisfaction guaranteed

• New Homes • Steel Siding • Remodeling • Garages  • Additions • Replacement Windows • Decks • Sunrooms

“Your Hometown Quality Builder & Remodelers”

Over 50 Years in the Lakes Area

New Construction

& Remodeling

NODSLE CONSTRUCTION

1473 Legion Road • Detroit LakesRes. 218-847-8347 • Lic. #1834

Perry Nodsle 847-7603

• Residential • Commercial• Cottages • Cabinets

EStAbLiSHED 1955

Crane JohnsonLumber Co.

established 1883

620 East Main • Perham, MN 56573phone 218.346.5555 • fax 218.346.9200

GreG NeiseNsalEs MaNagEr

D.L. WINDOW & DOOR914 8th st. s.e. • detroit lakes, mn 56501

DaN muLLIkINoffice: 218-847-8708

Fax: 218-847-0489mobile: 218-841-6387

call toll Free: 800-201-8706

Anderson Int. & Ext. Doors Siding Windows Millwork Vinyl & Steel

Building a New Home?

Lock InTodays Low Rates onPermanent Home Financing12 Months from Application Date

The BAM Board had its quarterly meeting in Duluth, Wednesday, July 21st. It was a full agenda and much was accomplished. Below is a recap of the discussion and deci-sions made by the BAM Board.

NAHB ResolutionNAHB recently gave official notice of a possible dues-in-

crease. The issue will be discussed at the NAHB Fall Board meeting in New York. The BAM Board discussed at length whether Minnesota supports or opposes a dues increase of $15 per year over the course of three years. NAHB is projecting a $10 million deficit. The BAM board voted to put forth a resolution stating BAM opposes any NAHB dues in-crease and calls on NAHB to present a good-faith balanced budget proposal.

SNBA Territory The Suburban Northwest Builders As-sociation recently voted to dissolve, and the BAM board voted to remand the territory back to CMBA from which the territory came.

Building Performance Standards The Board created a task force to revise the current BAM performance standards. The law, requiring builders to provide a copy of building performance standards along with the homeowner’s con-tract, goes into effect January 1st and the task force will be producing the revised document in October.

NAHB Position Recommendation The BAM board also discussed at length the reports NAHB recently published about the reorganization of NAHC. Those three reports can be found by following the links listed below:

1) http://www.bamn.org/Documents/NAHBAssessmen-toftheAssociation.pdf

2) http://www.bamn.org/Documents/NAHBRecommen-dationsMatrix.pdf

3) http://www.bamn.org/Documents/NAHBReportof-TaskForcePositioningNAHBfortheFuture.pdf

BAM President and state rep Mike Gohman attended the meeting in Washington, D.C. where these documents were discussed and Gohman said the Lang Assessment of the Association is getting the most traction. The items up for discussion at NAHB are:

1. Including Associate members on the senior officer team

2. Option to discontinue life and senior life director posi-tion, sun setting in 2020.

3. Term limits for exec board of two years, 3-term limit4. Limit number of face-to-face meeting to save cost5. Reduce the number of full committees from 21 to 136. Convert councils to networking groups up to 10,000

relying on social media to distribute information7. Review social media outlets and streamline8. Consolidate local association The BAM board elected to create a task force to review

NAHB’s organization plans and survey, and to put out a sur-vey of BAM’s member.

New EPA Lead Rules The BAM board participated in a grassroots effort the day of the meeting wherein all mem-bers signed letters to the EPA asking them not to make the cleaning requirements more stringent. If you want to help us advocate, please send one of these three letters:

1. www.bamn.org/Documents/EPAAssociateMembers-Letter7.21.10.pdf

2. www.bamn.org/Documents/EPARemodelerLetterW.

CostEsimates7.21.10.pdf 3. www.bamn.org/Documents/EPARemodelerLetterW.O.

Costs7.21.10.pdf

Also put in this article on Waiving mechanics lien: Waiving Mechanic’s Liens Contractors are very familiar with the concept of me-

chanic’s liens and the use of lien waivers. Most commonly, the waivers are signed after the contractor or subcontrac-tor has received payment for all or a portion of its work. However, in the past there were owners and lenders who by contract, wanted to eliminate the possibility of a contrac-tor or subcontractor filing a lien against the project. They would have the contractor agree, in the initial contract or loan documents, not to file a lien against the project. The legislature responded to that abuse by passing a law that is contained at Minn. Stat. § 337.10. Subdivision 2 of that statute states that:

Provisions contained in, or executed in connection with, a building and construction contract requiring a contractor, subcontractor, or material supplier to waive the right to a mechanic’s lien or to a claim against a payment bond before the person has been paid for the labor or materials or both that the person furnished are void and unenforceable. . .

This provision was recently the subject of a case out the Minnesota Court of Appeals entitled Kraus-Anderson Con-struction Company v. Superior Vista, LLC. Superior Vista was the owner of a property in Duluth which was to the sub-ject of a large renovation. The contract for the renovation and the building work was signed prior to the construction loan being obtained, and by the time funding was found, some of the demolition work had occurred at the property. Under that scenario, it was arguable that Kraus-Anderson, and every other subcontractor and supplier on the project, would have priority over the mortgage. Obviously, that is not acceptable to the lenders. As a result, the lender, owner and Kraus-Anderson entered into a subordination agree-ment. A subordination agreement is a document which in its simplest form, states that one party agrees to give up its priority in favor of another party; it subordinates its rights to the rights of another. The purpose of such an agreement can benefit both parties. The lender is secure that it has first position with its mortgage and the contractor, although giving up its position, is assured of getting the work. With-out funding, the project would not move forward.

The problem with the subordination agreement in Kraus-Anderson, was that it accomplished too much. Not only did it state that Kraus-Anderson was subordinating its rights to the mortgage, it stated that Kraus-Anderson would not even file a mechanic’s lien until the mortgage had been paid. The trial court found that in the current economic conditions, it was not likely that the lender would be paid in full prior to Kraus-Anderson’s mechanic’s liens expiring. Under that scenario, the document they signed was not re-ally a subordination agreement, it was an unenforceable lien waiver under Minn. Stat. § 337.10, subd. 2.

AUGUST NEW MEMBERS - None Every new member the Association gains, makes it a stronger business tool for everyone! If you do business with someone who is not a member of LRBA, encourage them to join! It will benefit you, them, and every member of the Lake Region Builders.

NEW MEMBERS – WE WELCOME YOU

Call Today!Mark Hagedorncell 218.234.6185 • phone [email protected] lake avenue

Your Membership is Appreciated and Valued

GETTING INVOLVED

IS kEY!!

You Will Get Out Of YourMembership What You Put In!* Join An Event Committee* Attend Monthly Meetings* Attend All Of Our Events

BAM Board Held Third Quarter Meeting

The falling leaves will be right around the corner. I hope all of you have the opportunity to work

throughout the fall and winter months.Our first event of the fall is the General Mem-

bership meeting at Zayic Concrete. Come out, bring a friend – prospective member and have a fun night.

We need to have feedback from our members as to how we can serve you better. Shortly a let-ter will go out asking for your involvement.

Let us know if there is a committee you would like to be on. There are a lot to choose from. The events we hold raise the money needed to oper-ate. We really appreciate all of our active mem-bers that have made this association GREAT! And we need to keep it growing and strong.

Make sure you take advantage of all the ben-efits that our association offers. Our office is open for meetings with clients, I am available to help with issues, and there are many monetary benefits.

There will be several opportunities to com-plete the Renovate, Repair and Paint class that many of our members need. There will be full days of education or online classes with our as-sociation organizing the 3 -4 hours of hands on classes.

BAM is sending out flyers to all contractors, but there are more than contractors that need the certificate. See you on the 14th

WELCOME BACK MEMBERS!

UP FOR RENEWALMaplewood Construction –

Stephen PatrickHough Inc. – Mike HoughPro Systems – Mike BrodshoG & R Hill Construction, Inc.-

Gene and Randy HillB & M Electric – Mike EidenschinkColor-Tek Coatings, Inc. – Tom JessopMid-Valley Geo-Thermal, Inc. –

Kevin OlsonNoah’s Home Furnishings –

Mike Noah

Don Gravelle would like to invite all of our members, and especially those that helped him get his home closed in, to a House Warming get together on September 18th.

It will start about 4:00 - 5:00 p.m. Bring lawn chairs, & whatever you would like for beverage. He will have plenty of food but if you would like to bring something that would be fine too.

MEMBER NEWS:

Is there something happening in your business? With your family? Let us know; we would like to acknowledge it.

September is ASSOCIATE MEMBER MONTH Be sure and thank the associates that help

make this a Great organization!!!!

Page 4: A Cut Above - September 2010

LRBA LEADERSHIPPRESIDENT Tim Roble, Lavelle Company

SECRETARY/TREASURER Jason Coley, Don Tietz Construction

PAST PRESIDENT Al Clark

VICE PRESIDENT Bryan Schoenberger, Pike Creek Builders/Modern Living Concepts

EXECUTIVE OFFICER Sharon Westerholm

Tim Roble, Lavelle Company

Marga Ybarra Floor to Ceiling Carpet One

Bryan Schoenberger, Pike Creek Builders/Modern Living Concepts

Mike Hough, Hough, Inc.

Ross Gailfus, Schiller Insurance

Jeff Boehm, Paul Davis Restoration

Greg Neisen, Crane Johnson Lumber, Perham

BOARD OF DIRECTORS

September is now here and with summer fading fast it is now time to start having our monthly membership meetings. The board has been meeting this summer and Sharron has some really good meetings and events planned for the upcoming months. Check out the sched-ule for the meeting dates, time and locations.

We have several opportunities for members to get involved on some committees, this is a great way to get to know others in our asso-ciation. There are members who have already committed to help on some committees and we have a need for a few more.

Education plays a big part in our association and Sharron has more classes planned as well. If you have a need for a class let Shar-ron know and she can help you out with that.

I hope everyone has had a good summer I am looking forward to long fall, see you at the meetings.

Be safeTim Roble

BUILDERS BUZZWe will be holding our first General Membership Meet-ing of the fall at Zayic Con-crete located about 1 mile East on Highway 34 on the north side of the road. (by Team Lab). Our host is John Brehm and his wife Dawn, owners of Zayic Concrete. John purchased the business from his brother Ron Zayic 3 years ago, after working for Zayic concrete for 30 years. Dawn works at the business and also does custom de-sign flooring. Bring a member prospect with, have a fun night and learn something.

— Visit bam.org each week for up to date happenings —

525 Park Street, Suite 150 • St. Paul, MN 55103p. 1.800.654.7783 or 651.646.7959f. 651.646.2860 www.bamn.org

1201 15th Street, NW • Washington, DC 20005p. 800.368.5242 or 202.266.8200x0f. 202.266.8400 www.nahb.org

A CUT ABOVELake Region Builders AssociationSEPTEMBER 2010

1602 45TH Street N ▪ Fargo

701–237–4131 ▪ ferguson.com

Your vision…

Delivering your dreams.

Our knowledge…

A MONTHLY NEWSLETTER SERVING BECkER, OTTERTAIL, NORMAN, WILkIN AND MAHNOMEN COUNTIES

EMAIL: [email protected]: 218.847.0699VISIT OUR WEBSITEwww.lakeregionbuilders.com

Lake RegionBuildersAssociation

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mn lic# Bc-20460621nd lic# 32002

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Cell (218) 849-4489

“Committed to Quality & Service”• Post Frame Buildings• Residential• New Construction• Remodeling• Garages

• Doors & Windows• Decks• Siding• Light

Commercial

• Home Warranty Program

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The Call You need to Make!

Only

Congressman Collin Peterson met with members of the Lake Re-gion Builders Association on August 12th to discuss issues that are affecting the building industry. One topic in particular was the Lead Renovate, Repair and Paint ruling and how it is making it difficult for the total costs to be certified and all the rule changes. The housing market as far as banking and realty was another important topic es-pecially with all of the foreclosures and loan issues. Pictured from left front row: Tom Crowell - Crowell Construction, Perry Nodsle - Nodsle Construction, Congressman Collin Peterson, Denise Fredrickson - Midwest Bank. Back row: Dean Foss - Edina Realty, Tim Roble - LRBA President, Duane Wellenbring - Builders Association of Minnesotas State Government Affairs Chair and Dave Baranson - Edina Realty and not pictured was Jane DeAustin - Government affairs, St. Cloud and Sharon Westerholm - Executive Officer for LRBA.

at a glance

OFCALENDAR

EVENTSSeptember 14th Board Meeting 5:30 General Meeting 6:30 Zayic Concrete will host the

meeting at his new loca-tion.

October 19th Eric Sundbee from DOT Hear what the DOT

requires at the meetingOctober More RRP classes coming November General Meeting Speak Easy – Pam Perri-

Weaver will be the speaker

ZAYIC CONCRETE THE PLACE TO BESEPTEMBER 14 AT 6:30PM