As seen in Contractor's Business Management Report, a publication of IOMA. Business Intelligence at Work
Remember Expo 67 and the Habitat ‘67 exhibit in Montreal? It seemed, at the time, that Habitat ’67 represented a new, ultra-modern form of construction: large modular boxes constructed elsewhere, delivered to the site, and stacked at different angles—each box a separate overall unit for high-class family living. It was beautiful. In fact, Habitat ’67 was our favorite exhibit in Montreal. (See expo67.ncf.ca/expo_habitat_p1.html here.)
The modular building prototype back in 1967 did not catch on as well or as quickly as had been hoped. But modular building sure seems to be gaining in popularity. In fact, we’ve recently seen a number of different types of commercial and residential projects where modular building is either being considered or is the preferred approach of both owner and consultant to get the project built.
Modular work can range from designing and delivering a turn-key fully functional, integrated building, to working as a subcontractor and installing modular component parts such as modular bathrooms. The attraction of the method seems to be the speed with which the project can get done. We understand that modular construction costs can compare favorably to conventional construction, especially when one takes into account the speed with which the modular work can be accomplished. In fact, any higher costs tied to modular work may be more than offset by the speed with which the method produces finished results.
The range of modular projects seems to be expanding. Sure we’ve heard of the modular building that is going on in Iraq as a means of getting housing done quickly. But it also is in vogue on a variety of college dormitory and Army projects—as a means to get housing built quickly.
That’s not all. We know of a residential project in Brooklyn that will likely go modular based on the speed and ultimate cost savings.
Modular building is not only a domestic alternative; it’s an international trend as well. Recently, we read about a Travelodge Hotel that was being built in London by London-based Verbus Systems. The rooms are manufactured in China and then shipped in metal containers from the factory . When the modular rooms arrive in London, they are ready to be stacked up to 16 stories.
It is clear that modular construction will not substitute for conventional construction in the foreseeable future. However, perhaps the vision that the builders had with Habitat ‘67 is taking hold somewhat. While we are far removed from Expo 67, our experience tells us that contractors should not only be aware of the modular trends but should also consider developing a plan to adopt modular practices moving forward. One important topic to cover along the way is how modular building interfaces with conventional construction. That is, what roles do a general contractor (GC) and the standard subcontractor trades have on a modular project?
The modular industry is usually thought of as divided into two segments: permanent modular structures versus temporary modular structures (e.g., construction trailers and mobile classrooms). The permanent modular industry is further segmented into commercial modular (military housing, dormitories, hotels, fast food restaurants, office space, and schools) and residential modular (single family detached homes).
According to Tom Hardiman, executive director of the Modular Building Institute (www.MBInet.org), the trade organization for the commercial modular industry, commercial modular construction is a $5-billion-a-year industry with permanent modular structures making up approximately $2 billion of that annual number.
Since the annual gross sales of the construction industry are estimated to be roughly $400 billion, the modular industry makes up just over 1 percent of construction revenue. Given this statistic, it’s unlikely that modular building will overtake site building in the near term.
That said, there are many applications for which modular building seems to work extremely well. Key areas or applications that might make modular construction attractive are repetitive interior structures; projects where exterior construction may be constrained by either weather or the facility itself, such as college dormitories; or buildings built in the cold Northern states or provinces where it is more difficult to work outside.
Hardiman suggests that the costs for modular projects nearly equal the costs for site built projects and that the customer experiences an average time savings of 20 percent to 30 percent. Frankly, we believe this time savings is what makes modular building so attractive. Indeed, we see that Verbus Systems’ commercial director, Paul Rollett, has been quoted by the New York Times as saying that Verbus can put up a hotel any place in the world in 20 weeks. Hard to match that time frame with a site built project.
This month, New York City’s Museum of Modern Art opens its modular building exhibit, “Home Delivery: Fabricating the Modern Dwelling.” The exhibit is intended to be a survey of the past, present, and future of the prefabricated home. The exhibit’s Web site (www.momahomedelivery.org) shows the process of the design and production of five full-scale modular houses currently being erected on the museum’s west lot.
While the MOMA is highlighting what may be cutting edge in modular building design and technique, other more traditional modular building methods are gaining ground in certain types of projects.
CBMR spoke with Phil Slingerland, COO of the Warrior Group, a Texas-based company. The Warrior Group specializes in commercial permanent modular projects. According to Slingerland, Warrior is currently under contract to build and deliver permanent modular structures to two military bases in Texas and one in Colorado and is bidding work on several more. Their first military installation is as a subcontractor to GC Hensel Phelps Construction Co. at Fort Bliss in El Paso, Texas. Warrior is building 11 modular buildings there, which will include 706 apartments.
Warrior’s scope of work on their Fort Bliss project involved assisting with the overall design, providing project management services, and manufacturing and installing the modular pieces. Hensel Phelps, the GC, partnered with an architect to prepare the design and also prepared the foundation, brought the utilities to the building, and installed the outside finishes and electrical systems. Often on permanent modular installations, local subcontractors are used to bring the utilities to the building line and perform HVAC work, foundation work, and electrical work.
Is modular construction “green”? According to Slingerland, while there currently is no LEED program for modular buildings, the Fort Bliss structures are designed and built to the U.S. Green Building Council’s Silver LEED standard. Warrior believes modular construction is a very “green” method of building. Slingerland points to the fact that there is very little waste in the building process, less noise pollution on the project site (because there is less of a presence of a builder on site), and less vehicular pollution at the project site because most materials are delivered in bulk to the manufacturer’s facility.
The building code standards that modular projects must meet depend on where the installation takes place. Warrior’s Fort Bliss structure is built to International Building Code Standards. Other nonmilitary structures are typically built to the site’s local and state building code.
Hardiman of MBI reports that many states have modular certification programs. He advised us that New York state has a statewide modular inspection program run by the New York Department of State.
There are many notable existing and planned permanent modular projects. Here are just a few to keep an eye on moving forward:
In the United Kingdom, the tallest modular project is the 18-story Paragon Project, which contains 577 en-suite student bedrooms(www.cbuildings.com).