ERIC GLEASON 20 Years in Residential Construction & Land Development Multi Family, Single Family, Mixed Use, Arizona, Colorado, Delaware, Georgia, Maryland, North Carolina, Virginia & Washington DC 8 Years in Commercial Construction & Land Development Class A/B, Light Industrial, Low Rise Office & Hotel 3 Years National Management Facilitator for ProBuild 20 Years as a Licensed Broker Memberships NFPA Education Section & Building Fire Safety Systems Section NFPA 101 Committee, NFPA 5000 Committee ICC International Energy Conservation Code Committee Home Builders Association of Summit County, Colorado & NAHB Colorado, Utah & Wyoming Fire Sprinkler Coalition Chairperson Colorado Water Discharge Committee 3 Years with the National Fire Sprinkler Assoc. CHARADES WHO GIVES A RAT’S A$! ABOUT RESIDENTIAL FIRE SPRINKLERS? WHO MADE THE st 1 Production CAR? 1st SEAT BELT? Edward Claghorn 1st Patent 1885 1st AIRBAG? Walter Linderer 1st Patent 1951 WHAT IF CONSUMERS THOUGHT ABOUT SPRINKLERS LIKE WE DO AIRBAGS? 1975 IF YOU HAD THE MONEY 1990 DRIVER AIRBAG REQUIRED BY LAW PEOPLE OF INFLUENCE Fire Official Building Official Legislator General Contractor Sub Contractor Consumer Manufacturer Special Interest Groups How you see residential Fire Suppression Influences your conversation A publication of WHAT DO BUSINESSES WANT? • Repeat customers • Profitability • Great Employees • Longevity • Adaptability What Business is Different? A Case For BUILDERS BUILDERS - ARE YOU MARKETING UPGRADED…? • PREMIUM LOTS • ROOFING • STONE VENEERS • WINDOWS / SIDING • FLEX SPACE BUILDERS - ARE YOU MARKETING UPGRADED…? • GRANITE • CABINETS • APPLIANCES • LIGHTING • FIXTURES • FLOORING WHICH CODE? WHAT YEAR? WHERE AM I? WHAT CODE IS IT? Code Adoption ALL Exemptions Variances DR HORTON • 36/50 States • 10,000+ Jurisdictions HANDOUT / CARD REFERENCE Decreased Development Costs Narrower Street Widths Smaller Water Mains If you could build an additional 20-100 homes? 2-10% Yield increase How much would your lot cost decrease? QUICK MATH 1000 LOTS (Feasibility/Acquisition) X 4% YEILD INCREASE = 40 MORE HOMES Avg Sales Price $300k Avg Gross Margin 18% =$54k ea $54,000 x 40 = $2.16M THE EVOLUTION OF HOMES CONSUMERS DEMAND • Higher Ceilings • More Windows • More Finished Space BUILDERS/MFG’s RESPOND • Open Web Floor Joists • Engineered Floor Joists (TJI) • Laminated Beams • OSB RESULTS IN • • • • COST Faster Build Time Nominal Expense Higher Net Profit Margin Protection SAFETY • The consumer never wanted to be less safe • These systems compromise safety BUILDERS COST TO MAINTAIN AN OPTION OR A BASE INCLUSION PRODUCTION BUILDER EACH MODEL EACH ELEVATION EACH OPTIONAL ROOM SUBSEQUENT FLOOR PLAN SEMI-CUSTOM / CUSTOM BUILDER NEW ESTIMATES / RFP / JOB COSTING FOR EACH PURCHASER SEE ITEMS – PRODUCTION CHANGES PERIODIC UPDATES TO CODE SUB CONTRACTOR SURCHARGES WATER PURVEYOR REQ’S LOCAL AHJ INSPECTIONS REMODELER CODE COMPLIANCE BECOMES A SEMI-CUSTOM JOB INSURANCE CO INVOLVEMENT THEY’RE ALL THE SAME 13 VS 13R VS 13D A publication of RESIDENTIAL IS THE SAME AS HIGH PILED STORAGE, RIGHT? 13 Property Protection & Life Safety 4 Head Calculation Unlimited Water Supply FDC, FACP, Steel, Listed Fire Pump and components Periodic inspection, testing and maintenance Dedicated fire line and BFPD 13D (R313 / P2904) Life Safety Priority 1 & 2 Family Dwellings 1-3 Stories in Height Basement? Habitable Attic? 2 Head Calculation No Attic, No Garage, Water Flow 10 Minute Water Supply “Listed” Components A Case For THE MISSING PARTS OF THE STORY THESE WERE TOO EXPENSIVE COPPER WIRE • Late 60’s through mid 70’s • Aluminum Wire ELECTRICAL GROUNDING WIRE • NM (Non-Metallic) / Romex® required by 1980’s DOUBLE PANE WINDOWS • Storm windows obsolete for 40 years COPPER PLUMBING • Polybutylene (80’s & 90’s) • Billion Dollar Lawsuits Settled THESE WERE TOO EXPENSIVE EGRESS WINDOWS FOR BASEMENTS / BEDROOMS GROUND FAULT CIRCUIT INTERRUPTERS (GFCI) INTERCONNECTED SMOKE DETECTORS ARC-FAULT CIRCUIT INTERRUPTERS BUILDERS OPPOSE ELECTRICAL UPDATE ENERGY CODE (IECC) IECC COMMERCIAL BY STATE IECC RESIDENTIAL BY STATE BUILDERS OPPOSE ENERGY CODE 1980 2013 HIGHER ENERGY EFFICIENCY Saves building owners $$ in utility costs Reduces greenhouse emissions Creates marketplace opportunities for small business to install, maintain & replace The structure BURNS 800% FASTER Produces 200 TIMES more TOXINS FASTER AND MORE DEADLY NAHB SAYS BUYERS CAN AFFORD MORE BUILDERS ARE IN A FRAGILE STATE? BUILDERS ARE IN A FRAGILE STATE? SPECIAL INTEREST GROUP? According to the National Center for Environmental Health there were 200 Deaths between 1979 and 1998 Was it the LATEX INDUSTRY OR was it about PEOPLE DYING? IF YOU BOUGHT A CAR TODAY Would you even think to ask if it had airbags? WHY WOULD AIRBAGS BE AN ACCEPTABLE OPTION TO BUY? As builders begin to lose this argument and they respond with “Buyers can choose if they want fire sprinklers” Ask them “How much are your children’s lives worth? Granite counters, hand- scraped hickory floors or did you have something else in mind?” Indiana HBA THANK YOU FOR PARTICIPATING