Message from Doug

Housing Affordability and Regulation

With home appreciation on the rise, and the cost of new homes increasing, out come the predictable cries for affordable housing.

But fear not, local groups have come to the rescue with “solutions” to the affordable housing crisis. In a recent Atlanta Business Chronicle article, along with an op-ed piece in Georgia Trend magazine, solutions to the problem have been identified.

One suggestion is to offer more down-payment assistance for first-time affordable buyers. That sounds similar to what happened prior to the housing collapse and the Great Recession.

Another is to issue a $250 million bond for housing, with some of that money providing short-term and emergency solutions for people facing evictions. It that a long-term solution?

The Atlanta Business Chronicle article said that a housing task force visited Seattle for a peer exchange. In Seattle, they approved a special levy of property taxes to go towards housing affordability. Will that “rob from the rich and give to the poor” scheme be proposed for Atlanta?

Throughout all of these talks and grandiose solutions, has anyone bothered to talk with actual developers and homebuilders? Have any of these think tanks invited the Greater Atlanta Homebuilders Association to the table? That association is filled with some of the best building minds in the Southeast. Have their opinions been asked?

Have the people that actually build the houses been consulted on the subject of housing affordability?

If they had been consulted, Metro Atlanta homebuilders would have easily identified one big factor that contributes to the overall cost of the house: government regulation.

According to an NAHB/Wells Fargo Housing Market Index report, government regulation of some form or another accounted for six out of the top nine significant problems builders faced in 2017.

In a recent study by NAHB/NMHC, regulation imposed at all levels of government (local, state and federal) accounts for 32.1 percent of the cost of an average multifamily development. One-fourth of the time the cost can reach as high as 42.6 percent.

For single-family homes, government regulations account for, on average, 24.3% of the final price of a new single-family home.

When you apply the percentages from NAHB’s studies to Census data on new home prices between 2011 and 2016, it shows that regulatory costs for an average single-family home went from $65,224 to $84,671 – a 29.8% increase.

By comparison, disposable income per capita increased by 14.4% in that same five-year span. So, the cost of regulation in the price of a new home rose more than twice as fast as the average American’s ability to pay for it. That is certainly a big factor in housing affordability.

I was recently told by a local developer that it can take three years to convert raw land into vacant developed lots in Metro Atlanta, primarily due to regulation and red tape.

Everybody wants affordable housing, just not in their backyard. Residents and local jurisdictions say they want affordability. Then, they put strict guidelines on lot size and density. This forces the builder/developer to build larger houses on that property.

If we really want to address housing affordability, let’s ensure that those that actually build the homes have a voice in the process. Only then will real progress be realized.

To Your Success,

Recent Referrals - Thank You!

As we welcome the cooler temperatures, the changing of the leaves and football season, we also want to recognize our Herbert Construction clients who refer us to their families, friends and business associates. We appreciate your kind words, and your recommendations help continue to grow our business. THANK YOU!!!

David Goldschmidt, DiG Architects – Architect   www.DiGArchitects.com

Chip Aaron, Skywark Engineering – Engineer   www.SkywarkEngineering.com

Vince Longo, Vincent Longo Custom Builders – Builder   www.LongoCustomBuilders.com

Game On!

With college football season bringing out the fans, cookouts and the posturing that goes hand-in-hand with bragging rights, we have compiled a few interesting facts to get you through those commercial interruptions and half-time breaks.

¨ The Oklahoma Sooners hold the record for the longest winning streak in college football. The streak lasted 47 games, from 1954 until 1957.

¨ College football fields were originally 120 yards long and 100 yards wide.

¨ The most popular names for four-year college mascots are Eagles and Tigers.

¨ The white stripes on a college football are designed to help the receiver see the ball better.

¨ According to studies, it is estimated that 30% of tailgaters never make it inside the stadium.

¨ The longest field goal in college football was a 69-yarder by Ove Johansson of Abilene Christian in 1976.

¨ Goal posts were moved to the rear of the end zone in 1927. Before that, numerous injuries occurred when players would accidentally run into them.

¨ The record for most consecutive games without being shutout belongs to BYU (361 games over 28 years).

¨ In 1895, the North Carolina Tar Heels became the first college team to utilize the forward pass.

¨ Miami Hurricane quarterback Vinny Testaverde became the first (and only) player to win the Heisman, the Maxwell, the O’Brien and be selected first overall in the NFL Draft (1987).

¨ Michigan cornerback Charles Woodson was the first Heisman Trophy winner not to play an offensive position. The award, handed out since 1935, did not go to a defensive player until Woodson won it in 1997.

¨ The first college football game took place in 1869 between Princeton and Rutgers University. Each team had 25 players on the field, and no forward passing was allowed. Rutgers won by a score of 6 to 4.

¨ The oldest football still in existence, which is thought to have been made circa 1550, was discovered in the roof of Stirling Castle, Scotland, in 1981. The ball is made of leather (possibly from a deer) and a pig's bladder.

Herbert Construction Company Becomes First Certified Foundation Company in Georgia

This article originally appeared

in Concrete Facts Magazine

on May 29, 2018.

Mt. Vernon, Iowa – Concrete foundations constructed in the state of Georgia will now be produced by the state’s first CFA certified foundation company, Herbert Construction Company based in Marietta, Georgia.  “Certified Residential Foundation Company” is a program rating established by the Concrete Foundations Association, headquartered in Mount Vernon, Iowa, www.cfawalls.org, offering third-party quality assurance for professional concrete foundation companies.

Recognizing the need for a national program to establish a consistent base of knowledge and quality assurance for the cast-in-place concrete foundation industry, the Concrete Foundations Association™ of North America (CFA) created the Certified Residential Foundation Company over a decade ago. The program recognizes certified companies in the states of Missouri, Iowa, Pennsylvania, Illinois, Maryland, Nebraska, Wisconsin, Virginia, North Carolina, Ohio and now Georgia.

“The Certified Foundation Company program was an ideal extension of the Certified Residential Foundation Technician that is offered through the American Concrete Institute,” states Jim Baty, Executive Director for the CFA.  “Introduced in 2007, the technician program established a grueling examination of the knowledge base for understanding the codes and standards that shape the minimum requirements for today’s residential concrete foundations.  However, having a person on staff or even multiple project managers that knows the important sections of code documents was just the start.  This industry needed a recognizable standard for operation of a quality foundation company.”

Herbert Construction became involved early on in the program as company President, Doug Herbert, participated in the formation of the market development package offered to companies achieving the benchmark.  The aggressively growing economy set the wheels in motion for the company to follow up on its original intent to become a certified company. “It became increasingly important and eventually essential for us to show our region that we are serious about our foundations and this program,” states Doug Herbert.  “I became an ACI/CFA Certified Technician several years ago and all along it has been my intent to have the company follow suit.  This shows our current and future customers that we are committed to being the best company that we can be.  We’ve put in a considerable effort to become a Certified Residential Foundation Company.  Our employees are what makes this certification possible, and we believe this will set our company apart from other construction companies as we continue to hire great people to join our company.”

Company certification was the obvious next step in Herbert Construction’s consistent involvement in the CFA. From their multiple awards in the CFA’s annual Projects of the Year competition, to their leadership and involvement in the association’s Board of Directors. That was instilled in the second generation, family-run company early on from founder and CEO, Barry Herbert, his daughter and V.P. for the company, Amanda Morris and now Doug Herbert. A member of the CFA since 1992, the process to become a certified company forced the family to look deeper into their processes, understanding their safety culture and identifying new ways to step forward in their commitments.  “Certified companies must prove their safety programming, commitment to workforce safety and performance, financial stability and quality of relationships,” states Ed Sauter, CFA Manager for Certification Programs.

“I’m quite proud of the statement this certification makes to our company culture and to our customers,” states Barry Herbert.  “Our goal has always been to commit ourselves to leadership through our processes, our relationships and our performance.  We are very pleased to have been through this process as it demonstrated just how much we already knew about our company but also some new ways to improve our processes and our commitments.”

Message from Doug

Learning and Getting Better

It has been estimated that there are more than 150 concrete contractors in Metro Atlanta. Before the Great Recession, that number was well over 200 concrete contractors plying their trade in this metropolitan area.

That’s a lot of foundation contractors. In spite of that large number, our company was the only local contractor at the recent Concrete Foundations Association Convention – an event where concrete contractors go to learn how to be better contractors. (You can read more about that event on page 2.)

So, why is that? Why were we the only concrete contractor in all of Georgia to attend that important event? Are we the only foundation contractor in Metro Atlanta that cares about building better basements? Where were the other contractors?

If your concrete contractor isn’t interested in keeping up to date on codes, reducing jobsite injuries, and improving their business, then what are they interested in? Are they interested in doing the right thing? In ensuring that you are getting a straight, square, correct foundation?

If you have a problem with a foundation they put in for you, will they still be around in a year to fix it? Do they know how to prevent problems from occurring in the first place?

What kind of company have you chosen to construct your foundations – the most important part of your house?

They say that if you aren’t growing, then you are dying. I believe that. I think a similar truth can be said about business: If you aren’t getting better, then you are getting worse. Is your concrete contractor getting better or worse?

To Your Success,

While in Utah for the concrete convention (see article here...), my kids and I went to Moab, which was our home base for hiking in Arches National Park.

Recent Referrals -- Thank you!

It’s that time of year again…when the academic season gets cranked back up and into high gear! Yes, it is a shock to all of our systems, whether for the children, who have become accustomed to packing maximum fun and leisure into every moment, or for the adults, who relished the time with their families (not to mention the lighter morning commute)! While we are thankful for the terrific summer adventures, we also want to convey our gratitude for your continued support and referrals. Your kind words are the backbone of what helps our company grow and thrive. THANK YOU!!!

Rocky Devotie, White Oak Landscape – Landscaper   www.WhiteOakLandscapeCo.com

Kirk Boggs, Benchmark Homes – Builder   www.BenchmarkAtlanta.com

Bill Hale, Whale Ventures – Developer   www.WhaleCompanies.com

Charlotte Moorehead – Homeowner

Mike Henson, JR Industries – Construction Supplies   www.JRIndustries.net

Herbert Construction Co. Attends Concrete Conference

We recently attended the Concrete Foundations Association Convention in Midway, Utah.

The Concrete Foundations Association is comprised of concrete foundation contractors throughout North America who are industry leaders in their local markets. Herbert Construction Co. has been a member of this great association since 1991.

We attend the Convention every year because it helps us become better contractors. It also allows us to stay on the leading edge of what is going on in our industry. We meet with other concrete contractors from around the country to learn best practices.

Herbert Construction was recognized during the awards dinner for becoming the first
Certified Foundation Contractor in Georgia. More on that in next month’s newsletter.

During the Convention, we attended seminars on important issues affecting our business such as:

¨ Jobsite Safety

¨ Hiring Laborers

¨ Risk Management

¨ Crane Safety

¨ Finances

¨ Leadership

¨ Company Operations

¨ Concrete Testing

In addition to seeing a great lineup of educational seminars, we shared ideas and learned about solutions by networking with our peers. Often, we’ve solved problems we were having just by talking with a fellow contractor that went through the same issue.

Doug Herbert Becomes
Vice President

Herbert Construction Co. has been active in the Concrete Foundations Association at the Board of Directors level for many years. Barry Herbert served many years on the Board and is a Past President of the association. Amanda Morris also served many years on the Board. Doug Herbert currently sits on the Board of Directors and was elected as Vice President of the association at the Convention.

Barry Herbert Joins
Legacy Committee

The association created a new committee within the organization, called the Legacy Committee. It is comprised of a select group of people that have contributed in a substantial way to the advancement of the association and the industry. It was created so the association can benefit from the vast amount of knowledge and experience these members have. Barry Herbert was chosen as a charter member of this committee.

Barry Herbert  (left) was chosen as a  charter member of the CFA’s Legacy Committee.

Doug’s Presentation

Doug Herbert was a seminar presenter at the convention. He gave a presentation to the attendees titled, “Increase Profits by Creating Systems in Your Company.” During the presentation he outlined his six steps to creating effective systems within a business that produce consistent, reliable results. The presentation was similar to his popular seminar that he often does in Las Vegas at the World of Concrete convention.

Doug Herbert gave a presentation that showed attendees how to
implement systems in their businesses.

Having Problems With Your Basement Construction?

We are adding crews and purchasing equipment. We will be taking on more work and adding new clients. If you are having scheduling problems, have a tricky basement coming up, or are just tired of spending so much time on your foundations, then give us a call. We can chat to see if our two companies are a good fit.

Call Us Now
770-795-0103

Steel Tarriffs

As most of you know, the tariffs against steel products has affected many industries in the U.S., construction being one of them. Our company has felt the repercussions of the tariffs.  Our steel product purchase costs have increased 35% since December of 2017. In order to continue giving our customers the strongest value for their dollar, we have tried to absorb as much of the cost inflation as possible.

America's Dumbest Criminals

Palm Beach, FL - Frank Singleton, a 21-year-old resident of Palm Beach, had just been released from jail after he finished his sentence for a trespassing charge. Right after he was released, the Palm Beach County Sheriff’s Office stated that, “He was no further than the jail’s visitor parking lot when he attempted to carjack a 2006 Nissan 250z.” The vehicle’s driver had just parked in the visitor parking lot. That’s when Singleton ran towards her and told her to, “Get out of the way,” then pushed her aside and got inside the car. However, he could not escape, since the car had a manual transmission which Singleton could not operate.

Livingston County, MI - Heather Quigley showed up at the jail with a document ordering the release of her husband. He did get released (when the time was right), but Heather is now being held. It seems she didn't do a very professional job of forging the release document and so was charged with attempting to effect an escape.

Pennsylvania, PA - Christopher Allen Koch, aged 28 from Pennsylvania, decided to rob a bank. He arrived at the bank around 11:40 am and sat in his car in the parking lot of the bank for 20 minutes. The robber didn’t read the opening or closing hours of the bank and was not aware that it closed at noon. He was surprised when he tried to enter at 12:01 pm while wearing his ski mask, gloves and holding a gun. The bank employees spotted Koch and wrote down his license plate number, which was enough for the police to find him. Koch was later charged with an attempted robbery and possessing instruments of a crime.

Tuscon, AZ – 56-year-old Leighton Deming and 42-year-old Thomas Marciano tried to sell a headdress, which they claimed had been worn by Geronimo, over the internet. Their ad included the wording "only serious candidates must respond because it is illegal to sell eagle feathers in the United States." Apparently the FBI was a serious candidate...

El Paso, TX – The Times reported the arrest of 47-year-old Dale Smith, who became violent in a bar, even brandishing a pistol. The hand holding the gun was attached to his, well, prosthetic arm. It-the arm-fell off.

Fort Worth, TX – Reuters News Service reported that a 17-year-old held up a Taco Bell in Ft. Worth and then ordered a chalupa. The police were there before his order was, and his waving a toy gun at the officers bought him a shot in the arm and in the leg.