Contractor Credentialing: Managing Risk

Raising the Bar in Home Performance Contracting

Larry ZarkerBPI

This Home is 90 Years Old and It Has Never

Had a Physical

Whole House Contracting Starts

with a Comprehensive Energy Audit

Energy Audits Waste Energy and Money…

…If They are Not Converted into Work

But, as we all know…

______________ ______________

The Challenge

Nearly 130,000,000 housing units in U.S. NY HPwES program reaching 7,000 units per

year; after 9 years only 1% of the housing stock transformed.

How do we ramp up to a ten year upgrade on all existing homes in the country?

Ramping Up Home Performance

State Units of Housing

10,000 Years

1000 Years 100Years

10 Years

U.S. Total 130,000,000 13,000 130,000 1,300,000 13,000,000

Pennsylvania 5,477,864 548 5,478 54,779 547,786

Scenarios for Achieving Scale:

* Source: U.S. Census, 2009

We are currently on a 10,000 year path to systematically upgrading the performance of the nation’s housing stock.

Home Performance Provides Solutions Dust and Allergies Comfort Issues High Utility Bills Hazardous Materials Moisture Climate Change ENERGY INDEPENDENCE

Typical home…full of systems… Drainage system Foundation system Flooring system Wall system Ceiling system Roof system Heating system Air conditioning system Ventilation & IAQ systems Moisture control systems Distribution system Exhaust systems Plumbing systems in/out Electric, Appliance

& Lighting systems Energy management system

Key Question: Do you know where your fresh air comes

from?

Furnace Filter Slot

Return Air

Corrosion on Hot Water Tank

Pipe Insulation

What BPI Offers National technical standards for the home performance

industry based on sound building science (open, transparent, consensus-developed process)

Certification of individuals in professional technical designations

Accreditation of contractors committed to delivering quality, home performance improvements

Quality assurance to verify conformance with BPI Standards and provide feedback for continuing improvement

Affiliation of organizations that deliver BPI testing services in their market

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Serving you since 1993

BPI Certification Model

Field Exam for Building Analyst

BPI Certified Building Analyst

Professional

Written Exam for Building Analyst

BPI Certified Heating

Professional

Written Exam for Envelope

Field Exam for Envelope

BPI Certified Envelope

Professional

Written Exam for Gas or Oil

Furnaces or Gas or Oil Hydronics

Written Exam for Manufactured

Housing

Field Exam for Heating

Field Exam for Manufactured

Housing

BPI Certified Manufactured

Housing Professional

BPI Certified Air Conditioning or

Heat Pump Professional

Field Exam for Air Conditioning or

Heat Pump

Written Exam for Air Conditioning

or Heat Pump

Certification Provides Differentiation

Building “Stackable” Credentials

From entry level worker to seasoned veteran Across technician skills sets (auditing, envelope,

heating, AC/Heat Pump, QA Inspection, etc.) Including sales and marketing, management, and

other job classifications Working with DOE WAP designations of Energy

Auditor, Installer, Crew Chief and QA Inspector

BPI’s Home Energy Auditing Standard in final comment resolution before publication.

New Installer/Crew Chief Certifications

Whole House Air Leakage Control Installer Whole House Air Leakage Control Crew

Chief Accessible Areas Air Leakage Control

Installer

Red Rocks CC ALC Installer Props

Driven by Affiliate Growth: 305 Total

Produces Huge Influx of Certifications

What is BPI Accreditation?

A professional credential awarded by

BPI to contracting companies who commit

to offering comprehensive “whole

house” home performance solutions

for their customers.

BPI Home Performance Contractor Model

Educate Customers on Whole-House Offer Comprehensive Solutions Get Key Staff Trained & Certified Follow BPI Standards in Your Work Last Do No Harm by “testing out” Participate in Independent, Third-Party

Quality Assurance Program

Positioning in the Market

Greed Ad for Individual Technicians

Differentiation Ad for Contractors

BPI AccreditedHome Performance

Contractor

BPI CertifiedBuilding Analyst

BPI CertifiedSpecialty

Professional

Customer ServiceTeam Sets

Appointment

BPI Accredited Home Performance Contractor Model

SalesContract

ConductsComprehensive

HomeAssessment

EducatesCustomer onWhole House

Approach

Defines Scope ofWork Based on

Findings

OverseesWork in Home

PerformsInternal QC

Tests Out toStandards

Signs Off onJob

ObtainsCustomerSign-off

Solutions BasedSelling

VerifiableResults

BPI Home Performance Contractor Model

Civil suit targets 12 for carbon monoxide deaths

Three local men indicted for manslaughter

BPI Accreditation Costs

How much does it cost to get BPI Accredited?

Training for 2 Certifications: ($790 - $2,400)BPI Certification Exam Fees: $550 x 2 = $1,100Accreditation and Quality Assurance: 1,500/yearTotal Estimated Initial Cost: $3,390 - $5,000

EmbroidMe Franchise Fees

How much does it cost to openan EmbroidMe Franchise?

Total Investment: $66,300-$187,400Initial Franchise Fee: $35,500Royalty Fee: 5%Advertising Fee: N/ATerm of Agreement: 35 yearsRenewal Fee: $1.5K