Residential Fire Sprinklers .com

Protecting Your Home & Family

Part three of a five part series focusing on the rapidly growing residential fire sprinkler market and why plumbing contractors are best positioned to capture this opportunity.

To view part two of the series visit “Plumbing Contractors Needed for Residential Fire Sprinkler Work“

Growing up in the home building business provides a very unique opportunity to learn about micro and macro economics without ever having to pay a single tuition bill. In fact, when taking these courses in college, I found myself arguing with the establishment most of the time, because not one of my instructors had ever experienced grossing $1 million one year and then struggling to stay in business with it for the next five. Mowing lawns to buy basketball shoes and cancelling family vacations, because interest rates changed as fast as the weather does. None of them had experienced living in a thriving community with great growth potential for several years to come and then see it completely stopped by a select group of community activists using a gas moratorium as a way to stop future growth. Now, several years later, ironically, a similar event has taken place, which is going to have one of the most significant impacts on the home building industry since 1.5 gallon toilets were mandated. Of course, I am speaking of the new IRC requirement for all new single and two family dwellings to have fire sprinkler systems installed.

The impact is estimated to be as high as $3 billion a year in potential revenue. Of course, there are those that are for this and those who are not. Nevertheless, it is here and the potential market that is now open to those who install fire sprinklers is also open to the plumbing industry as well. I say this because, contrary to many of the reports and articles written about this subject, the fire sprinkler industry is not large enough to absorb this type of demand. And, even with the pressure our capitalistic economy is currently feeling, demand for designers and installers of these systems is going to be very deliberate. So the question is, do you want to be a part of this market?

Before you answer, allow me to impart some observations that only someone in my position can share. First, I doubt anyone would argue with me about the significant differences there are between commercial and residential construction. Certainly this discussion alone would warrant several pages. However, when narrowed to the introduction of fire sprinklers to the home building process there are specific issues to consider. First, consider the fact that the plumbing industry can be characterized into three major groups. There are the large major mechanical contractors consisting usually of both HVAC and plumbing capabilities. These companies are found predominately on commercial types of projects, which require more than 2-3 man crews with construction schedules that can stretch out for months and many times years. Then there are those companies that concentrate on the residential markets. These would include multifamily as well as single family projects. These companies are usually much smaller than those involved in the commercial markets and tend to have smaller crews. The final group is those companies that have chosen to focus on the service side of the plumbing market. They are typically small to medium sized companies, less than 25 employees, and are structured to accommodate the general public’s plumbing service needs. They are not involved with new construction much, if any at all.

Of these three groups, it is the residential companies that are most prevalent and have the most opportunity to gain from the emerging residential fire sprinkler market. There are several simple reasons for this. First and foremost, they have the most to gain with the least amount of investment required. Let me explain. In residential construction, there are usually only five or six sub-contractors involved. They include the foundation, framing, mechanical, electrical, finish and painting contractors. Of course this will vary for several reasons, but for the purpose of this discussion these would be considered the core group for a home builder to contract with on a regular basis. Since the residential plumbing market is already very competitive the potential profit margins are very tight, especially when you consider the fact that average tract housing plumbing contracts only total $8 to $10k to begin with. So most residential contractors are looking for volume as well as the occasional custom home that comes along. Any chance one has to increase the base cost of their services means that while the actual margins may not increase, the amount of that margin allows opportunities for more rapid growth or internal capital improvements such as tools, trucks or even employee benefits.

Second, as long as I can remember, and my father before me and his father before him, every house that our family built had running water in it. What I mean by this is that plumbers have been on site for decades. Not so for fire sprinklers contractors. Plumbing contractors already have relationships built with current clients. They are familiar with home building trends, contracts and market conditions. The overwhelming majority of all fire sprinkler contractors in this country are commercial contractors. They do not have the years of experience with residential markets. Over the years, some have diversified into the residential markets but one thing is for sure, very few are capable, or for that matter, even want to participate in both markets. The reasons for this are the same reasons there are three groups of plumbing contractors. The bottom line costs are not as high as commercial construction and they have found that trying to accommodate both markets usually involves higher overhead which makes it harder to compete.

The third reason is the nature of the trade itself. It is pipe and water. Who better to adapt to this market than skilled labor that already knows how to work with the majority of the components involved with fire sprinkler systems. I have read several articles and reports from those on both sides of the residential fire sprinkler argument. And in response I say this: As a guy who started on his dad’s framing crew at age 14, going on to become the Vice President of the company and getting my Class A contractor’s license at age 21, only to end up as NICET IV fire sprinkler designer as well as a member of the NFPA committees that put the codes and standards for fire sprinklers into place, this is NOT hard. It will not take years of training and expense to merge the design and installation of fire sprinkler systems into an already successful residential plumbing contracting company.

While residential fire sprinkler systems have been required in select markets and geographic locations since the mid 1980’s, it has really only made its presence known in multi-family projects and even then it is fairly marginal. Today’s residential plumbing contractors have a very clear and distinct advantage coming into the residential fire sprinkler market. It would be prudent for them to consider this advantage as well as the education and training tools that are being made available by Fire Smarts and the Plumbing-Heating-Cooling Contractors Association (PHCC). 2011 when the IRC requirement comes into effect is not far off. And given the current economic conditions in the residential market, demand can only grow. Like my father always said, “people will always need a place to live”. For me, these are words to build a company by.

In Part 4 of this series, “Residential Fire Sprinklers: Plumbing Contractor Competitive Advantage #2”, Steven Scandaliato, SET, will discuss how plumbing contractors that provide both domestic water and fire sprinkler services have a competitive advantage by reducing the general contractor’s administrative burden, while increasing their own profit margin.

Steven Scandaliato is a Fire Smarts Faculty member and Vice President of Business Development of Telgian Corporation. With over 23 years of fire protection engineering, design and project management experience he holds a Level IV certification from NICET in Fire Sprinkler Layout and serves as a member of the NFPA 13, 101 and 5000 committees.

The U.S. Fire Administration has promoted research, development, testing, and demonstrations of residential fire sprinkler systems for more than 30 years. The research regarding residential fire sprinkler systems has indisputably demonstrated the following:

- Residential fire sprinklers can save the lives of building occupants.

- Residential fire sprinklers can save the lives of firefighters called to respond to a home fire.

- Residential fire sprinklers can significantly offset the risk of premature building collapse posed to firefighters by lightweight construction components when they are involved in a fire.

- Residential fire sprinklers can substantially reduce property loss caused by a fire.

The time has come to use this affordable, simple and effective technology to save lives and property where it matters most – in our homes.

In the past year, the National debate about the benefits of residential fire sprinklers passed a major milestone with the adoption of a change to the International Residential Code that will require fire sprinklers in all new construction. This code change survived rigorous scrutiny, during which all interested parties had ample opportunity to comment on the technical merits of the issue. Since then, parties who oppose this life-saving technology have started a vigorous campaign to enact laws at the state level that will prohibit adoption of sprinkler requirements for new homes.

I encourage every member of the fire service to stay abreast of this rapidly changing situation, and to be ready to voice any concerns that you have about proposed legislation to your respective state legislature. The Fire Sprinkler Initiative website has been established to provide a central clearing house for up-to-date information. Log on to the site at http://firesprinklerinitiative.org – stay vigilant and keep the fire service community informed of developments in your area. Only by working together can we save lives.

It is the position of the U.S. Fire Administration that all Americans should be protected from death, injury, and property loss resulting from fire in their residence. All homes should be equipped with both smoke alarms and residential fire sprinklers, and all families should have and practice an emergency escape plan. The U.S. Fire Administration supports all efforts to reduce the tragic toll of fire losses in this nation, including the recently adopted changes to the International Residential Code that require residential fire sprinklers in all new residential construction.

Glenn A. Gaines
Acting Assistant Administrator
U.S. Fire Administration

The U.S. Fire Administration Announces its Support of a New Building Code Calling for the Use of Fire Sprinklers in New Homes

After 30 years of testing, research and development, the Federal Emergency Management Agency’s (FEMA) U.S. Fire Administration (USFA) has announced its support of the 2009 International Residential Code (IRC), which mandates the installation of fire sprinklers in all new homes beginning in 2011.

“Every day firefighters bravely enter homes to rescue people from fire and risk their lives under collapsing roofs and floors, because of the lightweight construction that’s so prevalent these days in home building. This endorsement by the USFA comes as great news to fire service professionals across the country, who are supporting the IRC to include residential fire sprinklers as a critical component in fire protection in the home,” said John Viniello, president of the National Fire Sprinkler Association, the longest-tenured fire sprinkler advocacy organization in the U.S.

The new IRC mandate, a response to the growing fire problem in the U.S., is an initiative that could prevent more than 3,000 fire-related deaths and 60,000 serious fire-related injuries across the nation each year. About 90 percent of all fires occur in the home, fueled by new lightweight construction and more flammable home contents. In fact, the new sprinkler regulations are being endorsed by fire service professionals across the country, such as the U.S. Fire Administration, the International Association of Fire Chiefs, the National Fallen Firefighters Foundation, and the International Association of Firefighters. Groups including these agree smoke detectors are no longer enough in residential fire protection, as lightweight construction has become more prevalent, house contents are more flammable than ever, and the time available to escape a house fire has reduced from 17 minutes 20 years ago to three minutes today, according to a cost-benefit analysis by FEMA.

“It is the position of the U.S. Fire Administration that all Americans should be protected from death, injury and property loss resulting from fire in their residences. All homes should be equipped with both smoke alarms and residential fire sprinklers, and all families should have and practice an emergency escape plan. The U.S. Fire Administration supports all efforts to reduce the tragic toll of fire losses in this nation, including the recently adopted changes to the International Residential Code that require residential fire sprinklers in all new residential construction. The time has come to use this affordable, simple and effective technology to save lives and property where it matters most – in our homes,” said Glenn A. Gaines, Acting Assistant Administrator for the U.S. Fire Administration.

USFA’s research regarding residential fire sprinkler systems has indisputably demonstrated that residential fire sprinklers can save the lives of civilians and firefighters and can reduce property loss as well as offset the risk of premature building collapse by lightweight construction when involved in a fire.

By Eric Lindberg – The Daily Sound

Fire sprinklers will become an integral part of construction in Santa Barbara after city leaders unanimously agreed to require new homes and commercial buildings to install sprinkler systems, a mandate that also applies to major remodels or additions.

After the concept took several laps through the approval process — particularly to answer concerns from the community about the increased cost of a sprinkler installation — the city council deemed the proposal had been thoroughly vetted and made sense from a safety standpoint.

“Although we lose more homes to wildfires, we lose more people to home fires,” Councilmember Das Williams said.

The new code requirement, which will be officially adopted next week as a procedural matter, mandates sprinklers in all new buildings regardless of square footage, although small utility buildings are exempt.

Residential remodels or additions involving 75 percent of the total square footage would also trigger the sprinkler requirement, as would commercial renovations or additions larger than 50 percent of the floor area.

The issue of cost cropped up during the hearing when several community members questioned the need to impose more expensive requirements on construction projects in Santa Barbara, an area already struggling in the arena of affordable housing.

“There is no question that this ordinance would add to the cost of construction in Santa Barbara, perhaps by as much as $7,500 per unit,” said Lanny Ebenstein, president of the Santa Barbara County Taxpayers Association.

City officials, however, noted that insurance carriers typically offer discounts on fire policies in the range of 2 to 20 percent if sprinkler systems are installed.

“It’s obvious this is an increase in construction costs, but there’s also a gain in reduced insurance costs,” Williams said, adding that the concept had been thoroughly reviewed during stakeholder meetings. “This was not considered onerous by our local Realtors,” he said.

Fire Marshal Joe Poire touted the lifesaving benefits of fire sprinklers, telling city leaders that homeowners are 82 percent less likely to be killed in a house fire if they have functioning sprinklers and smoke detectors.

He also addressed comments from a few public speakers asking for the city to consider an ordinance requiring residents in high-fire hazard areas to build exterior fire protection systems, such as rooftop sprinklers, rather than interior sprinkler systems.

“You are much more likely to be killed by a fire in your home than a Tea Fire or Jesusita fire,” Poire said.

The fire marshal noted concerns about sufficient water flow to single-family homes that had fire sprinklers installed. Questions had been raised during public meetings about whether the standard 5/8-inch water meter would provide enough pressure to supply a sprinkler system.

“Unfortunately, we can’t answer that in every single instance,” Poire said, explaining that it depends on a number of factors, such as the height of the building and how much distance the water pipe covers. However, he added, “I can’t remember the last time it failed to meet the water flow requirement.”

Should a 5/8-inch meter be deemed insufficient for a specific home, he said the homeowner could install an onsite water supply and pumps, connect to a larger meter, or build a dedicated fireline.

Upgrading to a larger meter or trenching for a new fireline would include one-time costs between $2,000 and $9,200, city officials said.

Councilmember Dale Francisco said he had been initially opposed to the proposed requirement, but decided to offer his support after hearing from fire officials in prior meetings and noting the amount of public input that had taken place.

However, he warned that it is growing increasingly difficult to gauge the value of incrementally improving safety through building code requirements at the cost of making construction more expensive.

“We are reaching a point of diminishing returns,” Francisco said.

Mayor Marty Blum likened the fire sprinkler requirement to mandating that automobiles include seatbelts, recalling her father saying years ago that he didn’t want seatbelts in his car simply because he didn’t want them.

“I think this is the same kind of thing in some ways, because it’s a safety issue,” she said.

To read the full article click here.

By Carol Hazard – Madison Messenger

Builders in Virginia won’t be required to install sprinkler systems in new homes—at least for now.

Firefighters hope that will change, as the Virginia Board of Housing and Community Development considers whether to adopt regulations regarding residential sprinkler systems.

The board voted Monday, after a public hearing, to move proposals for residential sprinklers through the regulatory process in Virginia.

Firefighters say sprinkler systems save lives. Home builders say the requirement would add thousands of dollars to the cost of homes in an already soft market.

A final decision on the regulation and whether it will be optional or mandatory is expected in the spring, said Hollie Cammarasana, spokeswoman for the Virginia board.

Firefighters argue that the installation of sprinkler systems is already optional. Builders want to keep it that way. “As long as it is an option, we are not opposed,“ said Barrett Hardiman, spokesman for the Home Builders Association of Virginia.

The debate was sparked by the International Code Council, a membership association dedicated to building safety and fire prevention, which approved a code this year calling for the installation of fire sprinkler systems in new oneand two-family homes.

Several localities across the country, including Prince George’s County, Md., and Scottsdale, Ariz., have adopted mandatory home-sprinkler regulations. No state has adopted the requirement.

The Virginia Chamber of Commerce is opposed to mandating the installation of fire sprinklers in new single-family houses, duplexes and town houses of three stories or less.

“Our greatest concern is with how an increase in the cost of production will damage efforts to develop more affordable housing and how that would affect economic development in Virginia,“ said Tyler Craddock, a chamber spokesman.

Art Lipscomb, spokesman for the Virginia Professional Firefighters, compared the argument against sprinkler systems to the same claims made in the 1970s by the auto industry regarding air bags.

The argument then was that air bags would make cars too expensive for most people, he said. But the cost and safety of air bags are no longer disputed.

The average cost to repair fire damage in a house with a sprinkler system is $2,900, compared with $40,000 without a system, Lipscomb said.

The initial cost for a home with a sprinkler system would be higher, but the higher price could be recouped in lower insurance premiums, he said.

The cost is a subject of debate. Firefighters claim the national average to install a system is an additional $1.60 per square foot.

Kevin McNulty, president of Lifestyle Builders & Developers Inc. in Midlothian, estimated the cost at $2.66 a square foot, which would add $5,000 to the cost of an 1,800-square-foot home.

“And that assumes the house in on a public water and sewer system,“ McNulty said.

A house in a rural area with a well-water system would cost even more, because a holding tank and separate system would be necessary, he said.

“We don’t need the additional stress on the home-building industry and the consumers, especially in this environment,“ McNulty said.

The building industry has suffered through one its worst declines in decades.

“We don’t believe it’s a cost-effective way to deal with a public-safety issue,“ McNulty said. The focus should be on properly functioning smoke detectors, he said.

Charlottesville Fire Chief Charles Werner, spokesman for the Virginia Fire Chiefs Association, said the argument shouldn’t be all or nothing.

“Home builders and firefighters need to come together to see if we can come up with a middle ground,“ he said.

It’s important to sort out the truths and the myths, Werner said. “The most important thing is to start a dialogue. The issue is complex and emotional.“

Monday’s board decision calls for creating work groups that represent different interests to come up with a consensus position and a recommendation to the board.

To read the full article click here.