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How to build a bird house

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Prepare the pieces of wood. Align them as shown in Figure 1.

Start with the nails. Tap them into position at the joints. Then, apply waterproof glue along the joint edges.
Butt and glue the two bottom sides together.
Glue and nail the back section to the bottom sides.
Glue and nail the inside supports; see Fig. 1 for positioning on the back.
Drill a hole in the front section with the 1-3/8" (4.1 cm) hole saw, making sure the top of the hole is 2" (5 cm) down from a corner (see finished photo for details). Use a 1/4" (.63 cm) bit to drill a hole for the dowel perch, 5-3/8" (14 cm) below the bottom of the larger entrance hole. Sand the edges smooth, and sand all of the other inner parts of the bird house before nailing down the front.
Glue and nail the front to the bottom sides and the inside supports.
Position the roof sections so that they meet but do not butt at the top. Glue and nail the roof sections into place. Notice how the roof overhangs the sides.
Glue the 5" (12.5 cm) dowel in the channel between the roof sections to complete this joint.
Sand all of the surfaces.
Glue the 3" ( 7.6 cm) dowel into position as a perch. [This perch may be eliminated as birds do not need perches and it may in fact allow a predator a place to launch an attack on the nestlings.]
Stain or paint your birdhouse's exterior to your liking! [Keep in mind, lighter colors attract less heat]

While it's a good idea to make the roof watertight, it's important to drill some small holes in the bottom of the box for drainage, so any rainwater that does get in can drain away. Also, air circulation helps keeps insect populations down.
Never put food in a birdhouse. It's a nursery, not a kitchen. Food attracts predators and insects! In fact, nest boxes and bird feeders should be placed far away from each other. Bird feeders are great fun, and will attract a variety of birds, but place them in a different part of the yard.

Put the birdhouse up high if you have any cats, or know that cats come into your garden. It is safe to just presume that you should keep the house up high to discourage all predators.
Before using your birdhouse, make sure the paint or stain is dry.
Never paint or stain the inside of the bird house.
Be careful when using treated lumber which often contains many dangerous chemical compounds, such as arsenic which could poison the birdhouse's inhabitants.

Things You'll Need
1/2" (1.25 cm) finishing nails
Waterproof glue
Drill with 1-3/8" (4.1 cm) hole saw and 1/4" (.63 cm) drill bit
1/2" (1.25 cm) plywood in sizes shown in Figure 1, for two bottom sides and two inside supports
1/4" plywood for two roof sections, each 7" (17.5 cm) x 5" (13 cm)
1/4" (.63 cm) plywood for the front and back sections, each 5-7/8" (15 cm) square
5" (12.5 cm) length of dowel to finish the top
Optional: 3" (7.6 cm) length of dowel for bird perch
Optional: bird-safe paint or stain