This year, Ottawa builder Richcraft is celebrating its 25th anniversary and as with all anniversaries, this one is a great time to reflect on the journey that has brought them to this point. So today, let's take a look at what the last quarter century has meant for one of Ottawa's most successful home construction companies.

Kris Singhal, the millionnaire CEO and owner, says the ride hasn't always been an easy one. 

Singhal grew up in New Delhi, India one of eight children of a lawyer. He and his wife Manju studied and prepared for a better life in Canada, and arrived in 1974. He was the only one of the siblings to emigrate.

He worked hard and continued formal studies, and in less than 10 years in his new country, he was established as a Canadian.

The Singhals had an upper-middle-class income, a secure job in government service at a management level, and could look forward to an indexed pension. They could make annual trips to New Delhi to visit family, and replace the family compact car every six years. Their two daughters could attend university.

What more could he want?

Fateful Decision

It was then that they decided to build their own home... without really knowing how. 

"At that time, if you sent me to the store to get a two-by-four, I wouldn't have known where to look, or what one looked like," says Singhal. 

But he never lacked confidence, and always believed that if somebody else could do something, he could too. (It just might take him a little longer.)

To save money, he decided not to buy from an established builder, but instead to buy a lot and build his own home on it.

Campeau Corporation was selling lots around the Ottawa Hunt and Golf Club, so they bought one. To build the house, they hired a contractor, and Singhal was there every day, watching and learning. The land was swampy and they had the unexpected and costly problem of building on a slab.

But finally, the day came when they could stand in front of their finished dream home.

Sadly, however they had to sell it almost immediately. They had built a home that, with all the cost overruns, was just out of their reach. Luckily, though, it sold quickly.

A Eureka! Moment

When it was all said and done, they looked at their bank account and had an epiphany...  They had just made a pile of money.

With that realization, Singhal asked for, and was granted, a one year leave-of-absence from his government job. They bought two more Hunt Club lots and got permission from Campeau to build two copies of the popular Bennington Ultra with 3,000 square feet of luxury living. He invested in a white hardhat and went to work as supervisor. The hours were long, but the new job gave him a feeling of freedom that no 9-5 would allow. 

A year later the houses were sold for handsome profits, and their bank account said they were on the right track. It was 1983, and they decided to give up job security and pension plan, and ride the rocket instead.

Sleepless in South Ottawa

When asked to give an example of the sleepless nights of an entrepreneur, Singhal admits: "I still have them. I look around me and I can't believe I've done this. I can't believe I've got so many people dependent on me to keep making decisions. Right decisions." 

He goes on to point out that there are 75 people employed at their 2280 St. Laurent Blvd. headquarters, and estimated there must be about 3,000 subtrades working with them.

Early on, he first placed a small ad in the Ottawa Citizen to sell his homes. He soon had as much work as he could handle, building custom homes for people who already owned the lots. That way, no large outlay of cash was needed.

Then came some sleepless nights after he sat down over a lunch with Campeau vice-president Vic Whittaker, and watched him scribble out a deal on a paper napkin. Singhal went to the meeting hoping to get some building lots. He left with a huge tract of land that is now the heart of the Hunt Club subdivision. The deal on the napkin was worth $14 million. For a man who didn't have that kind of money, it was terrifying.

Whittaker remembers that day, and says that's the way deals were done. His orders were to sell the land. Hardest part of the sale was convincing Singhal that the napkin, presented to the right bank manager, would close the deal.

Kris Singhal now found himself steering a corporation that had just blasted into hyperdrive. He talks about being frightened then, but there's no sign of fear now as the confident CEO sits in his polished headquarters, routinely making multi-million dollar deals. Often there isn't even a napkin. He can close a deal by telephone.

Richcraft homes are in singles, rows and highrises. It's getting difficult to maintain a count. Richcraft is one of the city's major players in the world of land banking, owning the majority of land in the city available for new construction.

Singhal is determined to never again let himself be caught thinking inside the box, as he had been accustomed to doing in his government job.

Aiming to Be Part of The Family

His mind is still reaching over the walls of Richcraft to the living rooms of those who buy his homes.

He thinks back to his year as a start-up contractor and says he doesn't want to ever forget what he learned from a happy customer who was impressed by his battered Chevy Malibu. It was to her a selling point that made her accept him as her builder. In her mind, home builders were a flashy lot. She wanted somebody she could trust, afford and work with.

"Building a home for somebody makes you almost a member of the family. There's a trust factor."

And here at New Home News, that's what we like to hear: builders aiming to create consumer trust, and that's what we're trying to help do with our free New Home Association builder-finding service, too.

(This story originally appeared in the Homes section of one of our partner publications, the Ottawa Citizen - interview and writing by Dave Brown. It has been edited for this blog's audience, but the original article can be accessed online here.)

BUILDERS GIVING BACK 

It is often said that the homelessness problem in any given city, Ottawa included, is much worse than it appears. It's not just the stereotypical "homeless" we see lying on sidewalks in the downtown core who are under-sheltered. 

In reality, for each of these poor souls on park benches, there are several times as many people who are living with family, or in shelters, or even in crowded rental units, and often with multiple children and little money for other necessities like food and clothing. 

These are the somewhat more invisible "homeless" of our cities, and the ones that charities like Habitat for Humanity seek to help. And since homebuilders house people for a living, by definition, it is always refreshing to see builders step up to the plate and partner with Habitat to give back. 

That's what Ottawa builder Urbandale was doing this week, as they prepared to break ground on one of the local HFH chapter's two home projects for this year.

The two projects will house two families in need of help, in side-by-side homes in Orleans. One home has been sponsored by The Home Depot Canada, and the other by Urbandale.

The Urbandale home will house Angela Durant and her two sons Sherwin and Sheldon (pictured at left.) It will be built to the stringent R-2000 Environmental standard, which is a first for the National Capital Region Habitat chapter.    

Orleans (Otawa East) city councillor Bob Monette spoke at the ground-breaking ceremony earlier this week and encouraged the Durants to be hopeful for their future in the new home. 

"You'll notice the community you're moving into is a beautiful one," he said. "It's very safe and you'll feel very welcome here."

Indeed, as Platinum Sponsors, Urbandale has made a significant impact upon the future of this family, donating $75,000 towards the construction of their new family home. The builder has made this donation as part of its 50th Anniversary celebrations. 

As with all Habitat projects, the home, when finished, will be sold to the Durants on an interest-free mortgage that will be paid back in full. The family has also already begun the 500 hours of "sweat equity" required of participants in the program, helping out at fundraising BBQs, delivering flyers and the like.

Despite this generous donation from Urbandale, Habitat is still always in need of volunteers to help make their projects a reality. If you would like to participate in this build, either by doing a skilled trade, committee person or coordinator, they would love to hear from you. You can reach the Ottawa office at 613 749 9950 or via email here. 

If you don't live Ottawa, but would like to help this great hand-up-instead-of-out charity, you can find a chapter near you on their Canadian site here, or their American one here. 

Kudos to Urbandale for giving back to the community in such an apropos way.

A New Direction

With one successful multi-lot development under their belt and another underway, Ottawa builder Dharma Developments has announced that they will be bringing their eco-conscious, high-quality building style to the custom home market starting this winter.

Dharma impressed many with its first development, Powers Enclave, a 29-home neighbourhood in Stittsville, just minutes from Kanata Centrum, because of the quality of their construction and the durable products they use, as well as for their innovative approach to sustainable building. 

A new loft-style homes development called Orville Station is set to break ground next spring and has attained the lofty environmental designation of LEED Silver for its eco-friendly design. 

And this reputation for quality and innovation is exactly what is driving Ottawans to enlist Dharma's help in building their custom dream home, now that the service is being offered. 

"The feedback we've gotten so far from clients about why they're choosing us is because of our quality workmanship and our focus on green technology," says Dharma Sales and Marketing Manager Wendy Bissonette. "One potential client who viewed Powers Enclave recently was really impressed with the finishing detail and the attention we pay to the quality of products used in the home." 

   

The move into custom homes does not signify a shift in priorities for Dharma, says Bissonette. The company will continue to plan and execute innovative communities like Powers and Orville Station in the future. Instead, the new division is meant to complement their existing work, and help home owners who may already have their own lot or would prefer to live in an area outside Dharma's current communities to achieve their vision. 

"A lot of people have this dream of building their own home, but when they get to the point of actually doing it, they realize they don't know how," says Bissonette. "We want to be there as a partner for them and help them through the process." 

For Dharma, this business transition is partly about expanding their reach and keeping busy between major multi-lot projects, but it is also about making a contribution to the Ottawa community, a value that Dharma has always espoused (evidenced by their commitment to charity and the local arts community.) 

"Offering custom homebuilding for us is about being able to pass on the knowledge that we've gained with Powers Enclave  and Orville Station, in terms of LEED and green technologies," says Bissonette. "We want to help build smart homes that are efficient and as green as people want them to be - we always look at new technologies to be able to relay those options to our customers. With our custom homes, the client really has a blank canvas."

LEEDing The Way

This commitment to green building has set Dharma apart from other builders in the Ottawa market. While some smaller local homebuilders have been afraid to experiment with eco-technologies for fear that homebuyers wouldn't willing to pay the necessary premiums, Dharma has consistently led the way in offering stylish, environmentally friendly and affordable homes, proving that the combination is indeed possible.

And as is often the case, daring to be different has paid off for Dharma. Bissonette says more than half of the inquiries they are currently receiving for custom home quotes involve requests for green technologies, so it is clear that their reputation precedes them.

On every build, Dharma considers a strict set of eco-criteria in planning, design and construction, including but not limited to: 

• Use of building supplies that are locally available, contain recycled material and/or are themselves salvaged and recycled; 
• Use of durable products that won't end up in landfills in the near future; 
• Low toxicitiy in indoor materials; and minimal emissions of Volatile Organic Compounds (VOC's) during construction.
  

But perhaps more importantly, "green building" isn't just a glorified checklist for this builder, it's a company mantra. 

Not only does Dharma try to make each and every project as environmentally low-impact as possible, but every employee is committed to the cause as well. As Bissonette says, it's the little things that make the difference. 

"We always recycle in the office, we power down lights and computers when not in use, we don't use paper plates or napkins unnecessarily, we all drive fuel-efficient vehicles. Each employee is very conscious of their impact, we all do our part for the environment in our own lives, and we bring that commitment to work, too."

For more information any of Dharma's developments, or about their new custom homes service, you can visit them on the web at www.dharmadevelopments.com, leave a comment on this post or send me an email and I will be happy to put you in touch with the custom homes team. 

For a detailed look at the few lots still available in their Powers Enclave community or to pre-order for Orville Station lots, head over to NHA.ca and take a look. 

FIND YOUR DREAM HOME

The homebuilding industry is so competitive and the incentive to cut corners and lower prices so great for builders, that when companies go above and beyond to ensure that the quality of their product exceeds customers' expectations, they deserve to be recognized. 

Today, Mattamy Homes falls into that category. The builder, which has developments in Southern Ontario, Ottawa Ontario, Calgary Alberta, Minneapolis Minnesota, Phoenix Arizona, Jacksonville Florida and Charlotte North Carolina, has been awarded the prestigious J.D. Power award for Highest Rank in Satisfying New-Home Buyers for the third consecutive year!

Each year, J.D. Power and Associates conducts a survey of new home purchasers across Canada to rank all builders by customer satisfaction. They ask questions to evaluate companies like Mattamy in 8 different categories, which are, in descending order of weighted importance: Home readiness, construction and site teams, warranty service, sales staff, price and value, physical design, home quality, and design centre.

This year, Mattamy scored 893 out of a possible 1000 to top the field, with industry-leading rankings in all 8 categories. Congratulations are in order - a three-peat victory in customer satisfaction is truly something to be proud of!

All Builders Continue to Improve

Another point worth mentioning about this year's survey results is that overall customer satisfaction has increased across the board for all builders for the 4th straight year as well. This is great news for consumers!

"Builders should feel proud of their achievements in satisfying new-home buyers over the past four years," says Mark Thibeault of J.D. Power. "The majority of builders -- not simply a select few -- have contributed to this overall improvement, which bodes well for homeowners."

The questionnaire also asked respondents about their primary source of information on builders and their products and the most overwhelming answer to this question is telling, if not entirely surprising: recommendations from friends, family and colleagues. The study also found a clear correlation between those who rated builders a 9 or 10 out of 10 and those who were willing to provide a recommendation for that company to friends and family. (Again, not rocket science here.)

"When prospective buyers are in the market for a new home, they look to a trusted resource to assist with their decision-making resource," says Thibault, "and those builders with a track record of high customer satisfaction performance will have a distinct competitive advantage in a softening housing market."

It is great to see that builders here in Canada are taking customer satisfaction really seriously, and that homebuyers are willing to repay the best of the best in the industry by referring them to their friends and family. After all, for all the talk you'll see on this blog outlining innovative ways to find new home information on the web, you still can't beat good old word of mouth recommendations when it comes to finding a builder you can trust. 

Here at NewHomeAssociation.ca, we strive to provide the most comprehensive information about new home developments in Ottawa (and soon other major markets.) In light of this study, however, do you think we could improve our existing offering by providing an area within each model profile for clients to leave testimonials for builders and their products as well? We'd love to hear your feedback, so please let us know what you think in the comments!

This afternoon, I had the pleasure of attending a tour of the Minto Eco-Home in Manotick  (about a 15 minute drive south of Ottawa, Ontario), a joint presentation by Minto's project director Serge Desjardins, Minto's manager of innovation and green solutions Robert Smith (that that title exists at all is a testament to the power of the green building movement), and Douglas Rowland from CMHC, whose EQuilibrium program  provided the grants that made this development possible (or at least viable.)

The home is called Inspiration and it is a project that Minto is using to test innovative construction and envelope techniques and materials to achieve a net zero energy building. The EQuilibrium program bills itself as "a national housing initiative ... that brings the private and public sectors together to develop healthy homes that produce as much energy as they consume on an annual basis." 

In other words, the CMHC uses this vehicle to promote and fund net zero builds across Canada. They will also coordinate and fund a metering initiative for one year after the home is sold to track how it performs under actual usage scenarios. (In other words, the first owner of this home will be a bit of a guinea pig - but that's a worthy tradeoff for living in a home that actually produces excess energy and sells it back to the hydro company at a profit!)

This building achieves net zero by employing a highly insulated building envelope (double wall construction with an R-Value of 40 and ceilings at R 60), triple-pane low-e argon filled windows, a solar HRV ventilation system, and a gaggle of roof-installed photovoltaic panels.

 

What does that all mean for you, the prospective homebuyer? Well, put simply, it means that the home is so well insulated in every way that it takes much less heat to warm in the winter, and much less AC to cool it in the summer.

Another neat feature of the home is its sophisticated green-plug-enabled electrical system, which will allow the homeowner to use special green outlets in any room for any items that do not need continuous power when no one is home. With this cool feature, you could, with the flick of a switch, turn off computers, cable boxes and that TV the kids left on downstairs before heading out, and thus avoid unnecessary energy consumption.

Perhaps the most interesting thing about the tour (aside from seeing the home itself) was the interesting discussion it promoted from the 10 or so guests who were present. As we were waiting for stragglers to arrive before heading into the house, a stimulating conversation about the strengths (and weaknesses) of LEED broke out. 

You can check out the above link for a thorough explanation, but basically, LEED is a special certification given to builders whose projects meet a stringent list of Green qualifications. If you are interested to know just how and for what LEED awards points, I have uploaded their checklist and published it here  for your viewing pleasure.

In any case, during this discussion, I mentioned the difficulties that many developers have expressed around trying to meet the certification in rural areas, a statement to which both Minto reps nodded in agreement: the Eco-home is in the middle of a giant field on the south end of the south end of Ottawa, so there were no LEED points to be had here for, say, convenient access to transit! 

Another attendee expressed some degree of pessimism around what he viewed as the trend of people in the construction industry jumping on the 'green bandwagon', to paraphrase, and he wondered if there was any real meat behind all the green potatoes being promoted. 

But Robert Smith from Minto (who is a certified LEED consultant) made a great point here that I agree with 100 percent: He replied that despite its problems and shortcomings, he believes LEED is still good for the industry because it allows builders to quantify their green initiatives in a meaningful way, and encourages them to consider new ways of doing business.

I think what Minto is doing here is a really great sign and I hope they continue with the program. While I think it is admirable and important that smaller developers like Dharma Developments here in Ottawa go out on a limb and innovate in the green building space despite the additional up-front costs associated with doing so, the reality is that the industry as a whole can't truly change until the big dogs like Minto (and Tamarack and Richcraft...) start using their relatively massive RND budgets to really drive innovation and progress in sustainable homebuilding.

As Serge explained to me, at the end of the day, market demand is simply impossible to ignore. You, the customers are asking for ecologically friendly dwellings and are willing to pay a higher up-front cost to purchase them, knowing that you will recoup the difference in energy savings relatively quickly, and Minto is not going to leave that money sitting on the table for smaller custom home builders and niche developers to take without a fight. 

There used to be a terribly vicious cycle that held true when it came to green construction: Builders didn't want to shell out extra cash to offer ecologically-friendly homes because they were afraid that competitors would just continue business-as-usual and steal away all the customers with their lower prices. 

At the same time, some consumers claimed to be environmentally conscious, but still made price their top concern when push came to shove. The end result was, for the longest time, a huge disincentive for builders to bother catering to the "green niche" at all. 

It's nice to finally see that cycle breaking and that "green niche" becoming the general home-buying population. 

How about you - Will you consider ecological factors when searching for your new home? Even if it costs more up-front? Let us know in the comments.