questions about replacing the bottom few inches of panel siding


My house has T-111 type plywood panel siding on it. When it was installed long before I bought the house, on an addition it was installed much too close to the ground. Unsurprisingly, in these areas, the siding has rotted and is falling apart.
Because the foundation of the addition is not nearly as high as the original house, the only way to fix the problem is to regrade or find another answer. For various reasons, regrading is not possible. So I want to cut off the bottom 10" or so of the siding and replace it with something more resilient like pressure treated lumber or cedar. The idea is that either will be more resistant to rot and insects, and further can be easily replaced in the future if it does succumb to the elements.
This raises two issues: 1) I'm having trouble finding z-flashing that accommodate anything thicker than 3/4" combined with 2) which is that that I'm having trouble finding pressure treated or cedar that is thinner than 1".
Ideally I'd have this board be the same thickness as the siding (3/8" or 5/8" probably), but I don't think I'll find that. Any ideas where to find 1" z-flashing?
Also, any suggestions for how to affix the z-flashing under the existing siding edge given that I'm installing this 'backwards'? Usually you'd start from the bottom and go up, so the flashing install is simple.
Will pressure treated accept a solid-color stain well enough to blend with the rest of the siding?
Comments on the whole plan or suggestions for alternatives are welcome.
thanks
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snip
This doesn't answer your questions, but are you certain the old siding is treated? I did this job several years ago and it shows no sign of rot or any other problems:
http://flickr.com/photos/joearnold/158621674/sizes/o /
Also there are several 'patterns' and thicknesses of T1-11. Joe
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Other projects, also. http://flickr.com/photos/joearnold/158339277/sizes/o/in/photostream/
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snipped-for-privacy@pookmail.com wrote:

Try some hardiboard. Very durable and takes all kinds of solid color stains and paints. Comes in various thicknesses and widths. Should have something that you can use. I would not use treated as it tends to warp. Cedar would not be my first choice for that application, either. Cypress would work, but it too has a tendancy to check and warp. Hardi would be my first choice.

Try a real lumberyard, or failing that, get a sheet metal shop to make some for you. All you have to do is call and tell them the dimensions that you want. I prefer to do this as I can get Z flashing with larger flanges, which helps to protect what it is designed to protect.

Slip it up under the siding above and nail through the siding and through the flashing at the top of the flashing. This is where those wider flanges come in handy and make it harder at the same time. You must remove all nails in the siding above in the area that the flashing will extend behind it. Gives a wider nailing area, but requires you to remove more nails (sometimes).

See above about PT.

--
Robert Allison
Rimshot, Inc.
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Robert,
Thanks so much for your smart suggestions. I can't believe I didn't think about hardiboard. I had originally been looking at replacing all of my plywood siding with cement fiber siding, but the quotes I got were out of my budget (about $40-50k). I need something at least 10" tall for this fix, but I suspect they'll have a product that fits the bill. The other suggestions on flashing and how to affix it are great. Thanks!!
b

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