10 Things You Need to Know About Modular Homes

Modular building has gotten a steady flow of ink in recent years, thanks, in no small part, to the consumer shelter magazine dwell, which has made the construction system its darling, and Web sites such as www.fabprefab.com. A squadron of young-turk designers (Michelle Kaufmann, Charlie Lazor, Jennifer Siegal, Joe Tanney, Robert Luntz, and Rocio Romero, among many others) championing the technology has helped the process along as well. But the modular housing industry itself deserves the lion's share of the credit for the expansion of its business. One of the fastest-growing segments of the construction industry, modular housing production increased 48 percent from 1992 to 2002, the NAHB's Building Systems Councils says. Even now, the industry says the slowdown in the housing market has not been as pronounced for them as it has been for stick builders. So what does any of this have to do with you? Everything, the modular industry says.

Surely you've heard the industry's sales pitch by now: lower costs, speedy construction, excellent craftsmanship, and quality building products in a controlled setting. Builders who use modular systems say you can believe the hype. But before you run out to your local supplier or modular home manufacturer, you need to do your homework. On the following pages is a list of important items you should know before you place that order for your first modular home. As always, the devil is in the details. Read these items, study them, then go forth with confidence.

1 FAMILIARIZE YOURSELF WITH THE MODULAR PROCESS. This may seem like a no-brainer, but it's important. Building a modular house is a different ball game from stick framing in a subdivision. The homes are built in a factory in programmed stages from flooring to finished product and then set in place at your jobsite. “Floor treatments, framing, insulation, drywall, roofing, windows, siding, cabinetry, plumbing, and lighting fixtures are all installed and completed by skilled craftsmen utilizing state-of-the-art production technology,” the Building Systems Councils' Web site says. “The home is then shipped, 90 percent complete, to the building site and assembled on a foundation.” This means you will have to assume a different, but no less important, role and fret about a different set of issues (more about these later).

2 ALL MODULAR MANUFACTURERS ARE NOT CREATED EQUAL. Finding a good modular manufacturer is not like throwing a brick in a crowd—unless your aim happens to be very good. Modular construction can be better than stick-built housing in principle—tight tolerances, controlled production, and all that—but the quality of modular houses varies from manufacturer to manufacturer just as much as site-built homes do, so you'll need to do some leg-work. “There are some high-quality companies out there doing really good work, but you have to find them,” says Joe Tanney, a principal at New York City–based Resolution: 4 Architecture, a firm that specializes in custom architecture, including custom modular homes. Clyde Kreider, sales manager at modular builder Clemleddy Construction in Hawley, Pa., agrees. “I've been burned in the past with bad modular and cheap products,” he says. Check the reputation of the modular manufacturer and ask to see some finished homes. If you can, ask a previous builder customer for a reference.

3 BUT IT'S NOT ONLY ABOUT THE FINISHED PRODUCT. How the house looks when it's done is fine enough, but your choice of manufacturer should depend on much more. “Choosing a modular manufacturer is a big decision for a builder,” says Jeremy Bertrand, executive director of the Building Systems Councils. “To determine the right company, a builder should consider a company's geographical reach, their range of designs offered, whether there are protected territories, marketing support, training offered, etc. A builder should not focus solely on how much a company can save them on price per square foot—these other issues are just as, if not more, important.”

4 THINK ABOUT THE SITE, PARTICULARLY THE FOUNDATION. On a conventional stick-frame home, you can easily make adjustments for foundations that aren't exactly plumb, level, or square. Because the modular house is built in a factory and brought to the site, you don't have this luxury. “The foundation has to be perfectly square to within a half inch,” says Vinnie Lanza, with Ringwood, N.J.–based Environmental Construction, a builder that does modular spec homes and some modular custom homes. “That is set in stone.” Lanza, who has done over 100 modular homes, says the site also needs to be level and cleared of trees and wires to accommodate a crane.

5 MODULAR MANUFACTURERS CAN DO A LOT MORE THAN THE TWO-BOX RANCH, BUT REMEMBER TO KEEP THE DESIGN (RELATIVELY) SIMPLE. You can design almost any type of modular house—from sleek Modernist shrines to quaint cottages and Mediterranean-inspired mansions—but just because you can design anything doesn't mean you should, especially if you're trying to save some dough and hit a deadline. “You should stay away from complicated roof designs and the like,” says Steve Scharnhorst, president and CEO of modular manufacturer Excel Homes in Liverpool, Pa. Though complicated designs are possible, he says they “eliminate the savings you achieve. You don't want to overcomplicate things.” Plus, complex designs will likely result in more site work and, thus, more time.

6 MODULAR IS NOT ALWAYS BETTER. If you build in a remote area with little access to skilled labor or you build in an area where labor costs are high, modular is an easy call and a clear winner. But if highly skilled, cheap labor is readily available, it's a tougher decision. “It depends on your workforce and the cap-ability of that force,” says St. Paul, Minn.–based architect Geoffrey Warner, who designs a line of modular homes called WeeHouse. Because most of the work is done in the factory, fewer workers are needed on site. Moreover, if the architecture is too complex, stick with on-site stick framing. “Sometimes the design doesn't lend itself to modular,” Kreider says. He adds, “Some companies will be honest and say, ‘This house is better as a stick-built.' But the builder needs to have the right knowledge and ask the right questions.”

7 AND IT'S NOT NECESSARILY CHEAPER, EITHER. Once upon a time, modular was seen as the solution to America's housing problems, a way to provide quality, inexpensive homes to those with modest means. This is true and false. “Modular is not always a cheaper option,” Kreider admits. Modular's main benefit is speed of construction, which still affects the bottom line with increased productivity, so you'll likely make more money. “The savings in time will result in increased profits,” Lanza says. “The reduction of the subcontractor factor, which sometimes becomes difficult when building multiple projects, will help the stick builder to expedite his projects.” Advanced Custom Modular Homes, based in Cropseyville, N.Y., says on its Web site that you can save 10 percent to 20 percent over the cost of a stick-built home, but you get a 65 percent savings in time. Cost overruns are mostly nonexistent because the home is highly engineered and arrives largely complete. Still, some modular designs—especially those from high-end architecture firms—will set you back as much as any site-built custom home. The bottom line, says Kreider, is that modular “can be as cheap and as high end as you want it.”

8 TAKE ADVANTAGE OF THE MANUFACTURER'S SKILL SET AND WHAT IT HAS TO OFFER. Many manufacturers in the modular industry are still old-fashioned and haven't embraced change wholeheartedly, so it is important to know a company's strengths. “You need to understand what they do and how to take advantage of their systems,” Tanney says. He notes, for example, that when his firm decided to start using prefab modular systems, manufacturers were “less receptive” to the contemporary designs for which Resolution: 4 Architecture is known. “Now, we're getting calls from companies all over the country wanting to build our stuff.” If you're doing cottages, look for a company that is strong in cottages. The same goes if you're doing a multifamily project.

9 MAKE SURE TO CHECK YOUR DESIGNS 10 TIMES BEFORE YOU PLACE YOUR ORDER. When you're building in the field, you are free to indulge your whims—within reason—improvising and making changes and decisions on the fly. But that kind of behavior will cost you plenty with modular construction. “You can change your mind in stick built, but not in modular,” Lanza says. It is very important that you check your order invoice so you're getting everything you want. “Doing things in the factory is cheap, but it will be costly to add it later in the field, so go through the checklist carefully,” he adds. Also, ask your manufacturer how much of the house will be completed in the factory. Scharnhorst, for example, says his homes are delivered to the site 80 percent to 90 percent done. If you're looking at more than 40 percent site work, look elsewhere.

10 THE COMPONENTS ARE BUILT; NOW WHAT? Once the manufacturer has built the modules that will become your house, they have to be set on the foundation, and this is a crucial stage. “The modular company builds them well, but it still has to have a really good set crew to follow through,” Kreider says. Some manufacturers take full responsibility for the first house you do, but after that you're on your own to find skilled people who are up to the task. The manufacturer's service capability weighs heavily on the success of a project, and it comes into play once the house is done, Scharnhorst says. “With us, all service work is done in the first 30 days,” he explains. “We send someone out to take care of any [buyer complaints], but not all manufacturers provide it.” So make sure you ask.

“Builders need to know and understand the [modular] product and the process,” says Clemleddy Construction's Clyde Kreider, who is an instructional specialist at the Modular Housing Training Institute at Pennsylvania College of Technology in Williamsport, Pa. “It's so much more than buying the pieces and putting it together.” Kreider says builders should take advantage of the Institute's live, two-day or online seminars on modular housing. Once you're armed with the right information, then you can ask yourself: “Is modular construction right for my situation, and how do I fit it into my production?” For more information, visit: