10 Things You Need to Know About Modular Homes

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: