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Modular Homes and Prefab Housing Can Save Time and Money

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It is hard to know where modular housing ends and prefab building begins. Probably they, as well as the manufactured homes and the building kits we discussed earlier, can all be placed on a continuum we can call "factory assisted" housing. In some cases the factory just assists more than in others.

What is usually thought of as a modular house is two or more three-sided structures that are shrink-wrapped at the factory and shipped by truck or train to the building site where each is lifted by crane on to a prepared foundation then joined together. The modules are usually shipped with windows, doors, cabinets, electrical, plumbing and HVAC systems in place and take very little time to finish on site. Some modular homes look, from the outside, very much like manufactured housing except for the foundation that links them to the land and enables them to be deeded with the land. However, modular building has advanced to a state that enables the building of elegant two (or more) story homes in virtually any architectural style and with interesting design features that make them indistinguishable from their stick-built neighbors.



Hard construction prices have been difficult to come by, which is understandable when one considers the many variables such as finish quality, shipping, and customization that go into a project. One modular manufacturer, however, has provided a little guidance with price estimates for a 1,600 square foot home, exclusive of land. Many of the site-related numbers below can be used to arrive at rough estimates for other types of factory assisted construction.

Modular home, including shipping $ 89,000
Garage (also modular)   20,000
Permits   15,000
Utility connections (if close to site)   8,000
Site prep & foundation   15,000
Set up on foundation   17,000
Engineering and survey (if needed)   3,500
     
Total $ 167,500

This is about $104 per square foot but does not include any finish work or landscaping and is going to vary according to location. Generally, estimates vary on the overall cost savings from modular construction. Estimates are out there that range from 10 percent to 50 percent.

Other types of prefabs need a good deal more work at the site than modulars.

If you watched volunteers assemble 67 homes for shipping to the Gulf on the Today Show this past week you have seen a form of panelized home construction. The frames of the homes were assembled by hundreds of volunteers then taken apart (probably into four separate walls although that detail wasn't mentioned) and shipped to Louisiana where other Habitat for Humanity volunteers will assemble and finish the homes. On-site finish work was estimated at 30 days per house, but this work is being down with sometimes inexperienced workers.

The Today Show houses are an example of open panels. When factory-built, open panels usually have plywood cladding on the exterior of the frame but interior studs are exposed. Insulation, wires and pipes, and wallboard are installed on site. With closed-panel construction, each panel is finished and inspected at the factory with insulation, pipes, and wiring enclosed behind the interior drywall.

Many stick built homes are actually partially panelized. Roof trusses and floor trusses are increasingly built in factories in controlled environments and checked for compliance with building codes and blueprints then shipped to the site.

Panels, once at the site, are typically assembled by local construction crews, however, some manufacturers ship their product complete with an experienced crew which does the assembly work on site.

One manufacturer of building panels estimates that the units can cut the process of closing the home to weather from 10 to 14 days to 2 to 4 days, at which point weather, normal weather at least, ceases to be a construction factor.

Wooden studs are not the only materials used in panelized home construction. Lightweight steel or concrete are also used in the place of much of the wood. In one interesting variation expanded polystyrene panels can be snapped together to create walls of any thickness in 2 to 4 inch increments. Space between the panels is then pumped full of concrete which hardens into a strong monolithic core. Any exterior or interior finish can then be applied. The polystyrene panels can be cut to allow for arches or other architectural details. According to the manufacturer this construction method provides significant energy savings, noise reduction and a four hour fire rating. The construction method can be used to build to any seismic or hurricane standard and won't support growth of mold or mildew.

There are other processes and materials in use and an Internet search on prefab, panelized construction, and concrete home construction will keep you busy for days.

Any of these alternatives to totally site built construction offer the benefit of factory conditions mentioned earlier – greater adherence to standards, computer-assisted construction, freedom from weather delays, and the greater buying power of a mass-market purchasing. One manufacturer pointed out a cost benefit that we hadn't thought about. Back in 1996 the National Association of Home Builders estimated that a 2,000 square foot home results in 8000 pounds of "waste" that ends up in dumpsters and eventually in landfills. At that time builders were paying an average of $511 for disposal not to mention the labor costs involved in policing the site. Panelized construction supposedly virtually eliminates waste on the site and material waste is also reduced because the manufacturer pre-determines the most efficient use of materials when designing the panels.

Prefabs and modulars have long been an accepted form of building in Europe and some of the most exciting new concepts are heading here from European builders and designers. IKEA, the innovative Swedish design company, is now doing homes in boxes for large scale developments in Scotland and other areas. Imagine the day when you can pull up your Penske truck at the IKEA loading dock in Atlanta or Elizabeth, New Jersey and load it up with not only tea candles, a couple of wastebaskets, and the furniture you need for the living room, but the whole new house, assembly instructions included.


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Eric Jackson wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Wed, Mar 1 2006 8:00 AM
Can this be done in Atlanta, Georgia?
Panelized Home Buyer wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Thu, Apr 20 2006 7:00 AM
Yes, these can absolutely be done in Georgia, and all over the USA and Canada. These are great new technologies, they make stronger houses while costing less money... I'm building a new panelized house next month!
Amy wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Fri, Jun 2 2006 7:00 AM
What kind of financing do you use for these types of homes? Do you use a construction loan through your bank or do you have another type of lending in mind? Then do you get a separate loan for the permanent financing?
Foxhunt wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Sat, Jul 22 2006 7:00 AM
You use traditional financing. However I imagine you could get a construction loan for the actual up front costs.
Theo wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Fri, Oct 6 2006 7:00 AM
I have been doing some research these past few weeks on basically how to best build a home. So far from what I can tell this "panelization method" seems to be a very good avenue. I am building my first home and I am looking to save as much money as possible, since I will be building in the Los Angeles, CA area, not to mention on an up-hill slope. I am wondering if this panelization method is cost effective given my location and if so would I need to hire a general contractor or do it myself.
Richard Schultz wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Mon, Jan 15 2007 8:00 AM
Do you have any recommendations as to who the most economical and/or well made manufactured houses are to serve the Monmouth County , New Jersey Market? We're looking to buy a dump, raze it, clean up the site and spot a manufactured home on it. Within 6 -12 months.
Gemma Gadishaw wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Mon, Mar 12 2007 7:00 AM
Question: I am in the Caribbean area and am seriously interested in erecting a prefab home. What Prefab companies ship to this part of the world? What would be the costs involved? Building codes differ greatly in this area from Europe of North America so hopefully they are 'more than required for the Caribbean? The island is Trinidad.
james McP wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Tue, Apr 24 2007 7:00 AM
Comment to Gemma. Have you considered bamboo ? Take a look at ( for example) www.bambouhabitat.com which certainly is close by you. These houses seemed to originate in Hawaii and are certainly attractive and economical. Good luck in your project. James
Patrick Hodge wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Wed, Jun 13 2007 7:00 AM
I have property down on the island of St. Martin/French side, and I am interested in the feasability of putting up a pre-fab unit. Would you know of any companies in the Caribbean or anyone who would ship there?
Renee wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Mon, Jul 2 2007 7:00 AM
Do these have the walls where you can tell that they are paneled? Or are the walls like a regular house?
Jacqueline wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Sun, Jul 8 2007 7:00 AM
Gemma, I am from Trinidad, as well, and I would like to have a modular home constructed there. In my internet search, I came across Northstar Homes, a company that advertises that they ship to the Caribbean. Their web address is how I plan to contact them. Good luck.
Media wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Wed, Jul 11 2007 7:00 AM
Our company has developed some very unique interlocking technologies. One potential application is within panelized/modular home construction. Our approach to modular/panelized is both very similar but yet radically different from other technologies.
Silvia wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Fri, Aug 17 2007 7:00 AM
Hello, I am interested in purchasing a modular home for the L.A. area as well but am considering a "green" modular home. Any suggestions? Price ranges? Thanks!
Mike wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Mon, Sep 3 2007 7:00 AM
Media, Renee and James, I also am interested in building in Anguilla, BWI. If any one of you know of any sites that list prefab housing info do share. I plan to build in three months.
Steve wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Tue, Sep 25 2007 7:00 AM
I am so glad to see this report! I came across the technology through a relative in Florida in 1997 and have been a huge advocate since then. I had a chance to help design and build several of these houses, including 2 in LA. this year. I am about to build 2 more in Florida this year. There is no better way to build.
Nadia wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Tue, Sep 25 2007 7:00 AM
Is a modular house the same as a mobile home? I would like to install a mobile home on my land in Cluj-Napoca in Romania as this is the only option that the municipality will consider. All other constructions are not permitted on my plot of land. There is no mobile home manufacturer in Romania, where else can I turn to in Europe? Thanks
Kirma wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Tue, Dec 18 2007 8:00 AM
James McP - My husband and I are in the same situation and are looking for a prefab to set up in Grenada. I did come across a website, modulex-international.com, that does ship internationally. However, I'm not sure if they ship to Trinidad. Hope this helps.
info wrote RE:Modular Homes and Prefab Housing Can Save Time and Money
on Wed, Feb 13 2008 8:00 AM
hi i live in the virgin islands and am looking to buy a pre fab home but i would like to buy one from the caribbean any sugestions?????