Dispatches from Big Sky, Montana

Top Outdoor Living Trends

Chad Rothacher — Wed, 30 Mar 2011 12:00:00 GMT

A recent survey by the American Society of Landscape Architects (ASLA) pinpointed the residential outdoor living and landscaping design elements that are developing in 2011, and many of them are continuing from 2010. While getting back to basics was the guiding theme for much of the outdoor living market last year, "basic" is a relative term. Homeowners at nearly every level are still very much interested in creating livable outdoor spaces that function like indoor rooms, according to ASLA's executive vice president Nancy Somerville. "The economy is trimming back a little bit on activity and preferences, but it's certainly not keeping people from adding outdoor rooms," she says. What's keeping the market going is the value—up to 13 percent—that creating outdoor living spaces and landscaping adds to a home, she adds. In 2011, homeowners' landscape design and outdoor living plans are still scaled down somewhat because of economic concerns, but they're not eliminating the elements that make outdoor ...

10 Ideas for your next home

Chad Rothacher — Wed, 30 Mar 2011 12:00:00 GMT

Just a couple of ideas... Radiant-heated bathroom floors Forget fancy water-filled tubes embedded in concrete. You can now buy simple mesh-and-wire mats that install fast and easy under ceramic tiles. They cost as low as $15 a square foot and come with a variety of thermostats. Put a toasty floor in your homes' bathrooms and watch your buyers melt. Butcher block countertops Wood is the original solid surface. Used as an island or a bar, it holds nostalgic memories for older buyers and offers a fresh natural look for younger customers. It traditionally comes in maple, but butcher block is available in other species such as cherry and birch. An 8-foot-long top measuring 1.5 inches thick and 25 inches wide can be had for as little as $189. Glass tiles Yes, glass is cool. And yes, it’s pricey. But used sparingly as a kitchen or bath backsplash, glass can’t be beat. It reflects light, shimmers with color, and is virtually maintenance-free. If you shop carefully, ...

Construction Material Prices Continue to Rise

Chad Rothacher — Mon, 07 Mar 2011 13:00:00 GMT

The prices contractors must pay for many essential construction materials continued to increase in January, even as the amount they charge for completed projects remains flat, according to an analysis of January producer price index figures released today by the Associated General Contractors of America. Association officials noted that the price trends are cutting into already tight bottom lines for contractors, undermining chances for an industry-wide recovery in 2011. “The last thing contractors need after two years of depression-like conditions is to pay more to make less,” said Ken Simonson, the association’s chief economist. “With margins continuing to shrink, few contractors are likely to benefit even if construction demand picks up this year.” Prices for materials used in construction jumped 0.9 percent in January and 4.9 percent during the past 12 months, while price indexes for finished buildings barely changed during the same timeframe, the economist noted. He ...

Houses are a good deal

Chad Rothacher — Tue, 01 Mar 2011 13:00:00 GMT

There might finally be some good news this year about the nation's dismal housing market. Or, at least, the bad news could stop. Either way, it will be welcome relief for current homeowners as well as for potential real-estate investors. Reasons to be optimistic have been sadly lacking since the housing bubble burst in 2006. For sure, last week we learned the widely watched S&P/Case-Shiller home-price index fell 1% in December, its fifth straight decline. The index tracks 20 major markets. But that figure belies real reasons to be optimistic, according to some experts. If they are right, it might make sense to jump into real estate. The trick is avoiding getting burned again, and it doesn't necessarily mean owning a home. First, let's recap the economic signs a bottom is close. Houses Are a Good Deal Housing is the most affordable it has been in decades, according to analysts at Moody's Analytics. They don't just look at house prices. They also look at incomes. Nationally, ...

Home Affordability Returns to Pre-Bubble Levels

Chad Rothacher — Wed, 09 Feb 2011 13:00:00 GMT

Home affordability returned to pre-bubble levels in a growing number of U.S. markets over the past year as price declines laid the groundwork for a housing recovery. Data provided by Moody's Analytics track the ratio of median home prices to annual household incomes in 74 markets. By that measure, housing affordability at the end of September had returned to or surpassed the average reached between 1989-2003 in 47 of those markets. Most economists believe the housing boom took off in 2003. During the boom, lax lending and speculation pushed house-price inflation far beyond the modest rise in household income. Nationally, the ratio of home prices to annual household income reached a peak of 2.3 in late 2005. But by last September, it had fallen to 1.6, matching the lowest level in the 35 years the data have been collected and well below the historical average of 1.9 between 1989 and 2003. "Based on incomes, this is as affordable as it gets," said Mark Zandi, chief economist at Moody's Analytics. "If you can ...

20 Kitchen design ideas

Chad Rothacher — Mon, 24 Jan 2011 13:00:00 GMT

Source: BUILDER Online Publication date: January 14, 2011 By Jenny Sullivan Houses are shrinking in the recessionary economy, but kitchens? Not so much. As other rooms are eliminated from downsized plans, their functions are naturally migrating to the kitchen, placing more pressure than ever on this culinary zone to perform double or triple duty as the home's primary living space. Flexibility is a must in open areas that are used not only for cooking, but also dining, entertaining, homework, family time, and even telecommuting. Thrift is also a virtue. And there are other ingredients in the mix, too. Aging baby boomers, sustainability, health consciousness, stricter energy regulations, new technologies, and the rise of the single woman buyer are all factors shaping kitchen aesthetics and functionality today. These were just a few of the observations noted by kitchen designers Mary Jo Peterson and MaryJo Camp, and architect Doug Van Lerberghe in a January 13 session on "Reinventing the Kitchen" at the Int ...

10 Green Building Trends for 2011

Chad Rothacher — Mon, 24 Jan 2011 13:00:00 GMT

Green building is going mainstream, no doubt. But exactly how is building science evolving, and where are eco-minded builders and consumers likely to focus their attention in the year ahead, in light of current economic conditions? The nonprofit Earth Advantage Institute, which to date has certified more than 11,000 sustainable homes, makes some predictions for 2011 in its annual forecast of green building trends. Affordable green. Many consumers typically associate green and energy-efficient homes and features with higher costs. However, the development of new business models, technologies, and the mainstreaming of high-performance materials is bringing high-performance, healthy homes within reach of all homeowners. Leading the charge are affordable housing groups, including Habitat for Humanity and local land trusts, now building and selling LEED for Homes- and ENERGY STAR-certified homes across the country at price points as low as $100,000 (in the case of land trusts, homeowners do not own the land th ...

The new car smell

Chad Rothacher — Mon, 24 Jan 2011 13:00:00 GMT

With the average cost return of green building (8 years) being about the same duration as home ownership (7 years) – how do you sell it? With the economy in the dumps and the main concern of buyers being cost, where is the benefit to build green, let alone quality finishes and fixtures within the building package?

Looking forward to your responses.

Level of finish vs. quality

Chad Rothacher — Fri, 14 Jan 2011 13:00:00 GMT

With budget being the driving force of new construction these days, more than once have I been asked the question "What kind of quality will I get for the budget?"

The answer is quite simple and always the same –

The level of finish is a direct reflection of the budget; the quality is a direct reflection of the builder, regardless of the budget. Your budget will dictate the level or type of finishes your home will have: tile vs. granite, carpet vs. wood, drywall vs. plaster, etc. The quality will be dictated by the builder, his or her selection of subcontractors and protocol for managing the project and materials installation.

Do your homework and qualify your bidders, ask for references, and always ask to view a couple of completed homes with difference levels of finish – the quality should be the same.

How to hire a construction manager

Chad Rothacher — Mon, 10 Jan 2011 13:00:00 GMT

Most consulting firms today offer “construction management services.” However, the interpretation of construction management and the services it entails greatly varies. According to the Construction Management Association of America, “construction management is a professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost, and quality.” While that definition may seem simple enough, the selection of the proper firm can make or break your project. By selecting the proper firm, you can help manage risks and control costs at every stage of the project, from preconstruction planning and complete construction oversight to post-construction services. What Is Their Role? Undertaking a construction project is a complex endeavor. It is critically important that public works directors and municipal leaders clearly articulate their goals for the project to all mem ...

Do I need an Owner's Representative?

Chad Rothacher — Mon, 10 Jan 2011 13:00:00 GMT

1. Feasibility Study / Due Diligence / Permitting - “Is there someone (with experience in construction) who can create the pro-forma for my project and see it through to completion?” - “What is the best infrastructure system for my building site site?” 2. Cost Estimating and Monitoring - “I want the best value, not necessarily the lowest bid – who can give me the options?” - “What is the real cost of construction?” - “Who will qualify and evaluate all bids?” 3. Buyout and procurement - “Is there someone who can buy materials for me at cost?” - “Who will qualify (quality and price) the subcontractors th ...

Ups and downs continue for residential construction

Chad Rothacher — Fri, 07 Jan 2011 13:00:00 GMT

Signs of strengthening conditions in the housing industry emerged in the final months of 2010. November's new-home construction and sales data released by the U.S. Census Bureau—while a mixed bag of declines and increases—were mostly positive, reflecting on-going economic volatility within the broader recovery along with housing's slow return to health. Existing-home sales and pending home sales also increased, according to the National Association of Realtors (NAR). Overall residential construction permits and completions declined in November by 4 percent and 14.1 percent, respectively, while overall housing starts increased by 3.9 percent to a seasonally adjusted annual rate of 444,000. Single-family permits rose by 3.0 percent, and starts of single-family residences jumped by 6.9 percent to a rate of 465,000. Completions of single-family homes dropped by 10 percent, however, to a rate of 436,000. New single-family home sales rose 5.5 percent in November to a rate of 290,000, but this is sti ...

Construction costs down 15% - 25%

Chad Rothacher — Mon, 13 Dec 2010 13:00:00 GMT

Times have been tough for homebuilders these days. Sales have fallen to their lowest level in decades. And the buzz of saws and staccato beat of hammers are sounds seldom heard as production rates drop to lows not seen since World War II. But developers are benefitting from a little reported side-effect to the housing slump: It's cheaper now to build a home. Builders say construction costs are down 15 to 25 percent. That translates into an average cost of $100,000 to $140,000 for just the "sticks and bricks" (without land) for a modest, 2,000-square-foot house. That same house cost $140,000 to $190,000 to build during the peak of the housing boom just four years ago. Builders from Fort Worth's D.R. Horton to Arizona's Meritage Homes and Newport Beach's William Lyon Homes have crowed in recent earnings reports about improved profit margins due to construction cost savings. The savings could benefit consumers as well when passed on through lower prices, some industry officials say. But the news isn't so ...

Inventory of homes for sale shrinks for first time since January

Chad Rothacher — Mon, 22 Nov 2010 13:00:00 GMT

After rising for nine straight months, the number of homes listed for sale fell for the first time in October across many U.S. markets. The supply of homes available for sale in 26 major metropolitan areas fell by an average 3.3% last month compared to the previous month, the first month-over-month decline since January, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. Inventory fell on a monthly basis in 22 of those markets. The figures include all single-family homes, condominiums and townhouses listed on local multiple-listing services in markets where the firm operates. Nationally, inventories typically increase in October as sellers make one last push before the seasonal downturn in sales hits. Zelman & Associates, a research firm, says October listings have typically increased by 0.8% from September over the past 28 years. Compared to one year ago, the October inventory in the 26 markets covered by ZipRealty was up 13%. Home sales have bee ...

Did your contractor skip town with your $

Chad Rothacher — Sat, 20 Nov 2010 13:00:00 GMT

When a project is in trouble, usually an outside party is brought in because the problems on the project are bigger than the current project manager realizes or can handle. By definition, troubled projects have major problems. These problems sometimes include:

The Owners Representative explained

Chad Rothacher — Sat, 20 Nov 2010 13:00:00 GMT

In its basic form, the Construction Owners Representative is defined as a qualified third party who provides construction leadership for a defined scope. As owner’s rep, RMR will work as an agent for the owner to provide consultation and oversight on the project. The key to as unbiased approach in this position is the real and actual lack of financial gain from any aspect of the project. To achieve the highest results, we typically have an administrative relationship with the architect/engineer and general contractor (or prime contractors), but a contractual relationship only with our owner client. As owner’s representatives, we provide comprehensive management and coordination of all construction project activities. Our primary goal is to ensure that each member of the owner’s team of specialists collaborates in a manner that serves the owner’s overall interest. We monitor and coordinate the efforts of all members of the project team, enabling the owner to achieve ...

RMR Construction Manager as Agent

Chad Rothacher — Sat, 20 Nov 2010 13:00:00 GMT

Under the standard Construction Manager as Agent delivery program, RMR Group acts as a first party manager to the owner and a third party manager of the construction process. This delivery method utilizes an open book approach, where owners have access to all of our project documents and are made aware of aesthetic, schedule and cost trade-offs before making program and design decisions. Owners have the opportunity to be involved at each stage of the process from pre-construction and trade contractor selection through construction and closeout. As a CM as Agent, we are typically brought on board to help with projects where a contractor has not been selected or started the project. We simply work as a direct arm and agent for the owner to verify and oversee all aspects of the project. Our clients are primarily from out of town and/or a group of owners looking for a local representative with extensive construction knowledge who can look after and manage scope as well as the full progr ...

The Construction Manager at risk

Chad Rothacher — Sat, 20 Nov 2010 13:00:00 GMT

RMR’s Construction Manager at Risk delivery program is similar to our Agency based program with the added benefit of having the CM completely manage the entire project on-site. At RMR we promote a non-adversarial management approach, combined with a strong advocacy for the owner’s interests. This process allows a client to select a construction manager based on qualification; make the CM a member of a collaborative project team; centralize responsibility for construction under a single contract; obtain a guaranteed maximum price (GMP) proposal; produce a more manageable, predictable project; save time and money; and reduce risk for the client, the architect and the CM. Unlike the many general contractors acting as construction managers in the industry, RMR believes it is bad practice for a CM to furnish construction labor or do any portion of the construction work while acting as an owner’s representative. This leads to a perceived and real conflict of interest that undoubt ...

Home buyers want Green

Chad Rothacher — Sat, 20 Nov 2010 13:00:00 GMT

Why is its new “green” product working? Home buyers are attracted to houses that offer energy savings, affordability, and sensible design choices. For the past four years, the nation’s largest study of home design conducted by AVID Ratings confirms this fact. In 2010, the “AVID Home Design Driver Report” was released at the International Builders’ Show and outlined the results of its latest survey. Following the show, the study was reported by Market Watch and MSN, and became a headline news article on Yahoo’s front page, making it one of the most read articles in the U.S. that week. The study surveyed over 11,335 homeowners throughout the U.S. who built a new home in the last nine years or purchased a newly constructed home within that same time period. Since these people lived in a newly constructed home, they had a higher probability of buying new construction again. So, we asked them to rate various home features as “if they were in the market to buy a newl ...

Bidding Transparency

Chad Rothacher — Sat, 20 Nov 2010 13:00:00 GMT

A key ingredient of the competitive bidding process is transparency. Everyone has access to the required scope of work and the budget available to procure that work. Once sealed bids are opened, they become public information. When a bid is accepted for contract award, grounds for selection are stated on the record. Transparency keeps the competitive bidding process honest. It also maintains public confidence in the integrity of the system. When procurement authorities refuse to operate in the open, it should be cause for concern. In a recent California case, a public project owner provided a copy of the low bid to the second low bidder immediately after bid opening, enabling the second low bidder to get the low bid rejected. The low bidder asked to see the second low bidder’s submittal. The owner stalled. The low bidder was eventually provided with the documents, but only after its petition for injunctive relief had been denied. The low bidder then discovered that the second low bidder had t ...

Contract change order limitations

Chad Rothacher — Sat, 07 Aug 2010 12:00:00 GMT

Change order limitations are sometimes imposed on public works contracts by statute, regulation or the contract itself. The underlying policy is to protect the project budget and the integrity of the public procurement process by limiting the expansion of the contractual scope of work. A limitation typically states that if the estimated cost of a change order exceeds a certain percentage of the original contract price, the additional work must be put out to bid. Change order limitations can lead to devious tactics, however. In a recent California case a public project owner and its construction manager tried to circumvent a ten percent limit in a site work contract in order to avoid the delay of competitive bidding. New grading work was to be added to the general building contract and the building contractor would sub the work to the site contractor. The project owner never amended the building contract and the building contractor wouldn’t pay the site contractor fo ...

Disclosure of Superior Information

Chad Rothacher — Sat, 07 Aug 2010 12:00:00 GMT

The concept of “superior knowledge” or “superior information” is unique to construction contracting. Contract law in general holds a party responsible for intentionally withholding significant information in order to mislead the other party. This is usually characterized as “fraudulent misrepresentation” or “fraudulent inducement.” With construction contracting, a project owner may be liable to a contractor for failing to disclose significant information even though the nondisclosure was not intentional or fraudulent. The California Supreme Court recently issued an important decision on nondisclosure of superior information by public project owners. If a public project owner (1) possesses information which will affect the contractor’s bid price or performance cost; (2) knows the contractor does not possess that information; and (3) includes nothing in the contract documents which would cause the contractor to inquire about the information; then ...

Fixed Price Contracts

Chad Rothacher — Sat, 17 Jul 2010 12:00:00 GMT

From one of my favorite email blogs - The Construction Claims Advisor. A fixed-price construction contract is usually just that. Sometimes, however, prices for materials or commodities such as asphalt or fuel are stipulated in the bid documents, with payment to the contractor adjusted to reflect the actual costs indicated in periodic published indexes. From a project owner’s point of view, a price adjustment clause promotes accurate bidding. Bidders are not forced, or allowed, to speculate on future costs. There is no need for bidders to carry large contingencies as protection against volatile swings in cost. And of course for the successful bidder these features reduce the risk and uncertainty of contract performance. In order for price adjustment clauses to work fairly and effectively, however, they must tie adjustments to the contractor’s real costs. The Mississippi Supreme Court recently struck a provision from a state highway contract because it froze “actual” costs ...

How quickly time passes

Chad Rothacher — Tue, 06 Jul 2010 12:00:00 GMT

What happened to the plain white business card with a name and number clearly printed on the front? How quickly time passes – it’s already been over five years since we had our “new” web site designed. At this point, I struggle to even remember what our old site looked like, let alone how it performed. However simple it may have been, it certainly served the purpose of the time. Although we’ve have a good run with the current site, it’s once again time for not only a refreshed look, but upgrade in performance. I’ve always tried to exceed expectations not only in the field with quality and schedule, but also in the office with the level of detail and accuracy we provide for any given program. The new site is a great new tool as we move into the next generation of the custom home market. With the new site I’ve put more emphasis on our Owner Representation services as well as some extensive upgrades to the back end Client interface system ...

The Role of the Owners Representative

Chad Rothacher — Fri, 16 Apr 2010 12:00:00 GMT

Construction contracts are rife with requirements that the contractor provide the owner or owner's representative with written notice of occurrences: delay, changed work, unforeseen site conditions, anything that can lead to a contractor's claim for relief under the contract. The issue which arises time after time is whether the contractor's failure to provide timely written notice deprives the contractor of a remedy. Usually, if the project owner had actual knowledge of the occurrence and was not denied any legal or practical options, the owner cannot use lack of written notice against the contractor. Differing site conditions, however, are a challenge in this regard. Once a physical condition has been disturbed or work has continued, the owner's ability to respond to the situation may have been compromised. Notice requirement are more strictly enforced in this context. This was illustrated in a recent Kansas case. The contractor failed to provide timely written notice of ground water conditions, but conte ...

Discussion on the role of Owner's Representative

Chad Rothacher — Fri, 09 Apr 2010 12:00:00 GMT

Many milestones in a construction project are established or acknowledged through certification by a third party designated by the project owner. This individual, stipulated in the construction contract, is typically the project architect or engineer. It may be a different owner's representative. But the operative word is owner's representative. The denial of certification or a delay in certification can be very costly for a contractor. The contractor, however, has very little influence over or leverage with the certifier. The certifier is the agent of the owner with a duty to protect the owner's interests. The certifier has few obligations to the contractor, possibly just the obligation to avoid bad faith or fraud. The nature of this relationship was illustrated in a couple of recent court opinions, one involving a project engineer and the other a construction manager. In both cases it was ruled that the owner's representative could not be sued by a contractor for delay damages allegedly incurred as a resu ...

Andiamo

Chad Rothacher — Fri, 09 Apr 2010 12:00:00 GMT

If you haven't been to Big Sky in a while - not only has the skiing been great, the dining at Andiamos Restaurant is exceptional. If you're looking for a unique dining atmosphere, check out this design/build project by RMR Group.

View a photo gallery

The Dirty Project

Chad Rothacher — Fri, 09 Apr 2010 12:00:00 GMT

It's hard to believe spring is already knocking on the door. We don't have a lot of work this spring, but we're feeling quite fortunate to have what we do. It was almost a year ago to date when I wrote in our newsletter about how great it was to have good clients that were excited to get under construction last spring. Somehow we are in the same boat again this year - great clients and great projects (just not many of them). We've bid several residential projects over the winter with a myriad of General Contractors, where the winning bid has been around 30% lower than the median average bid. For the majority of the projects we've observed, the low bidder has predominantly been awarded no matter what the average of the bids have been. When the winning bid is below the actual cost of the "sticks and bricks" of the project - undoubtedly it's only a matter of time before there is a problem. Welcome to "the Dirty Project"... We saw a little bit of the fallout in 2009 with low bidder contractors front loading p ...

How log will the low mortgage rates last?

Chad Rothacher — Thu, 01 Apr 2010 12:00:00 GMT

March 31 loomed for months as the day when the U.S. Treasury would stop purchasing $1.25 trillion worth of mortgage-backed securities and effectively remove a major support to the fragile housing market.

But now that the program has ended, economists interviewed by BUILDER suggest that builders-and others involved in the housing market-don't need to panic. "This has been so well advertised," says Scott J. Brown, chief economist for Raymond James & Associates in St. Petersburg, Fla. "Investors have had plenty of time to get used to it. The Fed has been gradually unwinding its liquidity programs. ... This is just one more step toward getting back to equilibrium."

How will the custom home market change in the next 10 years?

Chad Rothacher — Thu, 01 Apr 2010 12:00:00 GMT

Around the year 500 B.C., the Greek philosopher Heraclitus said, "Nothing endures but change." Over the centuries his wisdom has proven correct time and again-except, for the most part, in the field of custom home building. True, new developments have taken place in materials science, mechanical systems, and building products, but generally speaking, the way a custom home comes together hasn't changed much in the past 100 years. The home building industry has always moved very, very slowly," says timber-frame guru Tedd Benson of Bensonwood Homes in Walpole, N.H., who for years has been calling on his fellow builders to evolve more quickly. "Historically, it moved even more slowly. It was the same for about a thousand years, and then there were many changes at the end of the 19th century and in the first part of the 20th century-mostly concerning the integration of various mechanical systems." Custom builders tend to be skeptical of anything new, and with good reason: Plenty of unproven prod ...

Top 10 places to buy a vacation home

Chad Rothacher — Tue, 09 Mar 2010 13:00:00 GMT

There's at least one major upside to the bursting of the real-estate bubble: The kind of adventure-ready second home you've always dreamed about is suddenly within reach. From mountain retreats to lakefront outposts to slopeside condos, here's your primer on where to invest for the long haul.

No, Big Sky is not the billionaire's Montana. OK, so Ted Turner has a ranch in the area, and two exclusive communities, the Yellowstone Club and Spanish Peaks, are also here. But Big Sky itself is a tiny (pop. 2,200), old-school skiers' destination with a base area sporting 1970s condos and nothing remotely resembling a "village."

Read the full article from Outside Magazine

10 Questions for Homebuyers who want to go Green

Chad Rothacher — Tue, 09 Feb 2010 13:00:00 GMT

For homebuyers, green is fast becoming a priority - whether its because they want to reduce their energy costs, minimize their carbon footprint or improve air quality.

From MSN. Real Estate - Here are 10 questions that prospective buyers or renters ought to ask to find out how green a house or apartment is.

10 Must have home features

Chad Rothacher — Tue, 09 Feb 2010 13:00:00 GMT

Americans want smaller houses and they are willing to strip some of yesterday's most popular rooms -- such as home theaters -- from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show here this week.

From Yahoo market watch - Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed 'green' from the outset," she said. The key for home builders is "finding the balance between what buyers want and the price point."

Read full article

Powder Ridge Cabins

Chad Rothacher — Mon, 01 Feb 2010 13:00:00 GMT

The sun has long since set and the rosy glow on Lone Mountain is giving way to a smoldering purple as I sink into my club chair and gather my thoughts to write this letter. A fresh snowfall blanketed the ski slopes yesterday and the only audible sounds are the crackle of seasoned pine on the fire and the occasional clink of ice as I tip my glass. If it's true that how we spend an afternoon is how we spend our lives, then our place of retreat - our shelter - surely must reflect that which we value and hold most dear. For me, living in a log home is about more than the romance of living simply or the beauty of artistry in wood. For me, it is about appreciating where I am and recognizing how I got here. These walls were trees that were hand-scribed by someone who recognized and appreciated every curve, every knot. There is a tradition of craftsmanship visible in every stone detail, in the ubiquitous joinery, and in the way that the rooms flow into one another seamlessly. Day or night, the amber hue of the logs ...

Federal Tax Credits for Energy Efficiency

Chad Rothacher — Fri, 04 Dec 2009 13:00:00 GMT

If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Existing homes and new construction for primary AND secondary homes are eligible for a 30% return on cost with no upper limit.

What the American Recovery and Reinvestment Act Means to You:

The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343).

Department of Energy web site with a full description of the tax credits

Energy Star web site

Ski in and stay a while

Chad Rothacher — Fri, 04 Dec 2009 13:00:00 GMT

This home is located slope side in the Diamond Hitch development of Moonlight Basin.

A custom home built for the the true ski enthusiast. One of our favorite projects, designed by Van Bryan of Studio Architects, considered to be one of the areas finest architects.

View a photo gallery

Geothermal Heating

Chad Rothacher — Fri, 04 Dec 2009 13:00:00 GMT

Geothermal energy has been used to heat and air condition buildings for several decades, and, during that time, these geothermal systems have been called many different things. Some of the more popular variations include geo-thermal, geoexchange, ground-water, ground-water assisted, ground-water-source, water-to-water, as well as water furnace heating and cooling. Geothermal heat pumps use the relatively constant temperature of the ground or water several feet below the earth's surface as source of heating and cooling. Geothermal heat pumps are appropriate for retrofit or new homes, where both heating and cooling are desired. In addition to heating and cooling, geothermal heat pumps can provide domestic hot water. They can be used for virtually any size home or lot in any region of the U.S. The ground is able to maintain a higher rate of temperature consistency because it absorbs 47% of the suns energy (heat) as it hits the Earth's surface. Geothermal systems are able to tap into this free energy with an ea ...

National Green Building Code

Chad Rothacher — Sat, 28 Nov 2009 13:00:00 GMT

When it comes to building projects, this one's a monster. The construction zone is essentially the entire country. The builders are a variety of specialists, including architects, plumbers, masons, and lighting, heating, ventilation, and air-conditioning experts. Since July, they have been meeting in cities - they were in Philadelphia last month - to construct not with bricks and steel beams, but with words. The goal: a code to guide all development of green commercial buildings in the United States. The International Green Building Code would, as its name implies, also be available to other countries. But drafting it has been the work of U.S. construction professionals who share a desire for the built environment to incorporate more green features. Pennsylvania is one of only two states with a government representative on the 28-member drafting body. The other is California, the only state to have a green building code. The Sustainable Building Technology Committee is an arm of the Inter ...

Is the McMansion Dead?

Chad Rothacher — Tue, 24 Nov 2009 13:00:00 GMT

"In lieu of a 7,000-square-foot palace that antes up to the neighbors, they're planning a house less than half that size with energy-efficient features, panelized construction to reduce waste, and a variety of flexible, multipurpose spaces. One of its four bedrooms will double as a guest room..."

It's the scapegoat of the housing bust, and that's not all. From accusations of ostentatious overconsumption to environmental indifference, the McMansion has taken some brutal hits in the recession economy. Are those blows lethal enough to send starter castles to their grave? Or will they live to see another boom?

Read full story from Builder Online

Who are the next wave of home buyers?

Chad Rothacher — Fri, 20 Nov 2009 13:00:00 GMT

Over the last several years, I have taken every opportunity to attend classes from Charles Shinn when I hear he will be in Northwest lecturing. When Charles talks - people listen. Take a moment to read a recently published article on the next wave of buyers. Every time we have had a housing cycle, the industry has had to change. I have always said, the buyer coming out of a downturn is different from the buyer going in, and this is definitely the case this time. The housing product that was in demand prior to the collapse of the market is not what the new customer wants during the recovery. The longer and deeper the housing cycle is, the greater the change in customer preferences. For the last 40 years, we have been following the baby boomers through their life cycle changes with our housing products. Coming out of this cycle, the baby boomers are moving into the downsizing stage of their lives. However, they will not return to the market in any significant number until the housing prices at lea ...

10 Ways to increase the value of your home

Chad Rothacher — Thu, 12 Nov 2009 13:00:00 GMT

In a dour housing market, wouldn't it be nice to know that your remodeling project would pay off when you went to sell the property? Remodeling Magazine evaluated the top remodeling projects, how the cost-to-value has changed since the housing market implosion, and which projects are still worth the investment. Using the magazine's "Cost Vs. Value Report for 2008-2009," let's look at some of the best projects you can undertake and recoup the majority of your cost. Siding Replacement With the economic slump, home buyers aren't being dazzled by bells and whistles as much as they are improvements that will ensure lower repair and utility bills. Although replacing current siding with fiber-cement has lost value from 2007, it still nets an astonishing 87% ROI. If you prefer a foam-backed vinyl product replacement instead, you can still look to recoup 80% of your cost. Got wood? Dont forget about wood siding and trim applications for the high end applications. Window Replacement (vinyl or wood) Wind ...

Wikipedia - Solar Water Heating

Chad Rothacher — Sun, 08 Nov 2009 13:00:00 GMT

I am not really one to quote from a Tertiary source, but in this case Wikipedia has a great section on Solar Water Heating systems. I have found the posted info to be quite thorough and accurate. Read the full article and post your thoughts in the blog. Solar water heating or solar hot water is water heated by the use of solar energy. Solar heating systems are generally composed of solar thermal collectors, a fluid system to move the heat from the collector to its point of usage. The system may use electricity for pumping the fluid, and have a reservoir or tank for heat storage and subsequent use. The systems may be used to heat water for a wide variety of uses, including home, business and industrial uses. Heating swimming pools, underfloor heating or energy input for space heating or cooling are more specific examples. In many climates, a solar hot water system can provide up to 85% of domestic hot water energy.[1] This can include domestic non-electric concentrating solar thermal systems ...

Solar Hot Water Basics

Chad Rothacher — Sun, 08 Nov 2009 13:00:00 GMT

For my fellow construction geeks who have already read this article in "Home Power Magazine" this may be old news to you... but for those who haven't, this is a great summary on a few different types of Solar Heating Systems. While most people are captivated by the high-tech nature of solar-electric (photovoltaic; PV) systems, in most cases, a solar hot water system will harvest more energy at a substantially lower cost. In fact, compared to PVs, solar hot water (SHW) collectors are more than three times as efficient at producing energy from the sun. Investing in an SHW system is a smart solar solution for most homeowners. This proven and reliable technology offers long-term performance with low maintenance. And with federal, state, and utility incentives available, these systems offer a quick payback-in some cases, only four to eight years. A thoughtfully designed SHW system could provide all, or at least a significant amount, of your household hot water needs for some portion of the year. The ...

Tankless water heaters vs. conventional storage tank systems

Chad Rothacher — Thu, 01 Oct 2009 12:00:00 GMT

This seems to be one of the hot topics we always address when working on mechanical designs.

Hot water is a hot issue for builders, architects, and remodelers these days. Why? Many current buyers are interested in homes that are energy efficient and economical to operate, which are factors that can be dramatically affected by a home's hot water usage. According to the DOE's Office of Energy Efficiency and Renewable Energy, water heating is the third-largest expense in most homes, accounting for 14% to 25% of a home's expenses. In some cases, that percentage may even be higher, which means energy-conserving hot water solutions also could result in big cost savings for homeowners in this difficult economy.

Read the full article

New Montana Contract Law to take effect Oct 1, 2009

Chad Rothacher — Thu, 01 Oct 2009 12:00:00 GMT

Long overdue is the standardization for permits, contracts, inspections and licensing in the Montana Building Industry. The new contract laws are a small step forward in a very needed update.

A new Montana law that requires contracts between builders and customers goes into effect October 1, 2009. The law, which looks to add a bit of standardization to the building process, will benefit both the consumer and the reputation of the building industry.

Read the new provisions

Black Bull Clubhouse

Chad Rothacher — Thu, 01 Oct 2009 12:00:00 GMT

The Clubhouse at Black Bull, like the golf course, is designed by one of the country's premier practitioners of his trade-architect Jerry Locati. Jerry has created a "rustically-elegant" Clubhouse that embodies upscale-yet-casual Western living. As the centerpiece of Black Bull, the Clubhouse will be a tastefully commanding presence, featuring timber and stone accents, and expansive picture windows that enhance the breathtaking 360-degree views of the Gallatin Valley and surrounding Rocky Mountains. The Corral, Black Bull's temporary clubhouse, is open for members and features men's and women's locker rooms, shoeshine area, golf shop, restaurant and bar, and has direct access to the pool and hot tub. Professional-grade tennis courts have been designed to take advantage of the panoramic views that define the community. View a photo gallery

As prices dip - Home sales on the rise

Chad Rothacher — Tue, 01 Sep 2009 12:00:00 GMT

Inevitably as construction and land costs bottom out - new home sales have started rising throughout the country. The term "buyer's market" has been tossed around plenty in recent months. But most home buyers don't grasp the full meaning of the term until they get ready to shop. After a rough second half in 2008 and a devastating spring, the region's housing market has made some gradual improvements in recent months. But while sales are increasing slightly, the selling price of homes remains as low as most real estate agents can recall. "They are still really low, which means it's a good time to buy. I don't think the prices have really moved upwards yet. I'm not sure when they're going to," said Richard Spencer, real estate agent with Ron Spencer Real Estate. Read Full article at Builder Online

Big Sky - Past & Future

Chad Rothacher — Tue, 01 Sep 2009 12:00:00 GMT

With the highs and lows of the national economy - Big Sky continues to grow up as a town & community.

For a couple of decades after Chet Huntley opened Big Sky Resort in 1973, the Southwest Montana ski destination was an odd anomaly - not quite developed enough to compete with the Vails and Aspens of the world, not quite big enough and charming enough to have a strong sense of place, and not quite close enough to anything to be a likely spot for intensive real estate development.

Read the full article on New West.net

Just large enough

Chad Rothacher — Tue, 01 Sep 2009 12:00:00 GMT

This Moonlight Basin cabin is 800 sf, has 2 full bathrooms, full kitchen, and sleeps 6 comfortably. We recently remodeled this little unit and turned what was a very ordinary cabin into a little gem. Take a look at the gallery of photos for an inside look.

View a photo gallery

Bids fall to the bottom

Chad Rothacher — Mon, 27 Jul 2009 12:00:00 GMT

Is there a benefit to the Owner as bids fall below cost? Will the contractor be able to complete the project for the contracted price?

What a difference a year makes. In the second quarter of 2008, construction starts had moved slightly off the record-run rate of the previous three years. The economic bloodletting set off by the sub-prime meltdown did not really spill over into construction until the second half of the year.

Read the full artile from ENR

What home buyers want

Chad Rothacher — Mon, 27 Jul 2009 12:00:00 GMT

As the dust settles from the housing bust, what are buyers now looking for?

The homes that sold like gangbusters during the good times - to the tune of nearly 1.4 million in 2005 alone - are not what the buyers of tomorrow say they are looking for.

Big Sky Cabin

Chad Rothacher — Mon, 27 Jul 2009 12:00:00 GMT

As we continue to see the trend of smaller is better - take a look at this unit at only 1500 sf.

View a photo gallery

Vanilla home loans?

Chad Rothacher — Mon, 06 Jul 2009 12:00:00 GMT

Are government regulated "vanilla" home loan packages the new standard? Builder Online explains.

WASHINGTON - If President Barack Obama gets his way, consumers who take out mortgages would automatically get a "plain vanilla" loan - such as a traditional 30-year fixed-rate mortgage - unless they opted for a riskier variety.

Obama's plan to revamp financial regulation aims to protect borrowers from the confusing and high-risk mortgages that fed a pandemic of delinquencies and foreclosures, led to the worst financial crisis in decades and thrust the nation into a deep recession.

Read the entire story

iPhone home automation control

Chad Rothacher — Mon, 06 Jul 2009 12:00:00 GMT

Would you like to control your home automation system from the convenience of your cell phone?

Far beyond just the music opportunities, the iPhone application represents a major development in digital platforms across the residential platform, controlling music is just one element. If people can mute a room from their iPhone, why not dim the lights and turn up the temperature a few degrees too?

Lutron agrees. The lighting-control company recently launched an iPhone/iPod Touch application that's available for free from the Apple Web site, although consumers likely will have to pay a nominal programming fee to have the application integrated with their HomeWorks lighting-control system.

Read the full article from Builder Magazine

A Cabin in the Woods

Chad Rothacher — Mon, 06 Jul 2009 12:00:00 GMT

Nestled in the foothills just minutes from Big Sky Resort - this cabin is another example of living large in a small space.

This Porcupine Park property is a great example of a true western motif Montana cabin.

View a photo gallery

Single Family Home Starts up 2.8%

Chad Rothacher — Tue, 19 May 2009 12:00:00 GMT

Although multi-family housing was down again this month - there is a little sun shining on the single family market.

Initial construction of U.S. homes and building permits both sank to record lows in April, according to a government report released Tuesday May, 19th, but the same report also showed signs of stabilization in the single-family core of the housing market.

Read the entire article

Union Pacific Dining Lodge

Chad Rothacher — Tue, 19 May 2009 12:00:00 GMT

With a lot of interest and phone calls coming in this month from our feature RMR website photo, I though it prudent to run the UPDL project as this months feature project. In 2007, RMR was awarded the bid and opportunity to do a full structural remodel on the UPDL building. Consisting of log & timber, structural steel, masonry, electrical, HVAC, roofing, and finishes upgrades, the challenge was performing all scope to be hidden to the eye. Each and every upgrade was completed with the end goal of keeping the historic structure unchanged by view and design. The project was a striking success. View a photo gallery

Free Green Building Advice

Chad Rothacher — Tue, 19 May 2009 12:00:00 GMT

Free green building advice - It comes at a good time: When the new-home construction market begins to recover in the next two to three years, sustainable, green construction could outpace conventional methods, with the value of green building construction starts reaching between $96 billion and $140 billion, according to McGraw-Hill Construction's "2009 Green Outlook: Trends Driving Change" report.

BuildingGreen's new greenbuildingadvisor.com is a one-stop database of green-building expertise. Nearly 1,000 construction drawings and other resources, including notes on building codes, installation videos, and products, detail ways to achieve sustainability for various home types and climates.

Six phases of a construction project

Chad Rothacher — Fri, 17 Apr 2009 12:00:00 GMT

This pretty much sums it up in six short segments.

Enthusiasm
Disillusionment
Panic
Search for the guilty
Punishment of the innocent
Praise and honors for the non participants

Head West

Chad Rothacher — Fri, 17 Apr 2009 12:00:00 GMT

5 out of the top 15 housing markets in the U.S. are found in Montana.

I had to double check to make sure this list wasn't published on April Fools Day - Fargo, ND made #2...?

Billings, MT
Fargo, ND
Lander, WY
Trenton, NJ
Morgantown, WV

Read the entire article.

Building Costs up 6.5% in 2009

Chad Rothacher — Fri, 17 Apr 2009 12:00:00 GMT

Although we are seeing quite a drop in local building costs - the national average is still elevated over 2008. With steel leading the way again this month, Engineering News Record reports the following figures for April 2009: 20-CITY: 1913 = 100 April 2009 Index Value % change Month % change Year Construction Cost 8528.39 -0.1 +5.1 Common Labor 18015.79 0.0 +5.4 WAGE $/HR. 34.23 0.0 +5.4 20-CITY: 1913 = 100 April 2009 Index Value % change Month % change Year Building Cost 476 ...

Federal Stimulus Plan

Chad Rothacher — Fri, 17 Apr 2009 12:00:00 GMT

Still in the dark about the fed stimulus plan and how it will affect the different streams of the economy - check out THE web site on the subject.

The American Recovery and Reinvestment Act is an unprecedented effort to jump start our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century.

Read the entire article

18 off the back porch

Chad Rothacher — Thu, 16 Apr 2009 12:00:00 GMT

Out of the 80+ projects I've built in the last 10 years - this floor plan easily makes the top five list. Designed by Locati Architects and built in the Black Bull Golf Community, this plan really hits a note for a smaller home with more than enough space to accommodate the crowds, yet not too large for the retired couple. Take a look at the photos - the home speaks for itself.

View a photo gallery

Trends: smaller, more friendly