Developers FAQ & Information

DETAILS Provides the Developer/Builder Advantages

Steve Hullibarger, former National Director for Kaufman and Broad writes concerning  off-site constructed housing, “a few of the most common advantages are cost savings, a reduction in building time, elimination of the nuisance elements of construction, better quality and more predictable results”.

Whereas time savings and reduction of on-site problems can be expected, cost savings will vary depending on several variables.  The following discussion describes the virtues and variables in greater detail.

Labor Shortages

One of the most pressing problems facing builders and developers is the high cost and availability of qualified labor.  Although the industry has sustained labor shortage cycles in the past, recent polls and research has found that fewer and fewer young people are showing interest in the trades as a long-term career path.  The erosion of skilled workers seems destined to continue.

DETAILS is able to accomplish a high quality of craftsmanship consistently for the following reasons:

• We are able to locate and retain skilled craftsmen by offering them a steady job, a single location where they can work under controlled and comfortable conditions, and benefits that provide stability for their families. 
• We seek out people who are passionate about their craft and we reward creativity.
• DETAILS provides an environment of teamwork and trust.
• DETAILS employees, once vested, share in the profits of the company.

There are not many subcontractors who can offer their workers the kind of opportunity that DETAILS can. 

Additionally, the method of construction and the narrower scope of work allow each of the craftsmen to become expert at his work.  In the same way that Toyota wouldn’t hire a “shade tree” mechanic to build their cars, we make sure our people are skilled technicians that know how to deliver their craft with consistency.     

Saving Time

Utilizing DETAILS’s off-site construction process will likely shave months off of your normal site-built methods and provide assurance that you will complete projects on schedule.  Here’s why:

Construction. Imagine having your best subs on-site, eight hours per day, without any material or weather interruptions or delays for inspections. 

Transportation. Our homes can be prepared for transportation the day after they leave the factory.  Except in cases of extreme distances or severe weather, the home should reach its destination the same day.  DETAILS can help coordinate the transportation.

Installation. Because our delivery schedule is normally very reliable (see exceptions above), a builder can pour his foundations a few days before our delivery date and incur a minimum amount of costs in advance.  The builder should make sure that everything is ready for the house to arrive, including the installation contractor.  Our homes are normally set with a crane, which should be set up and ready.  If there is reason to believe that there will be a delay due to weather, it is prudent to schedule installation for the day after the home’s arrival.  Because it may cost $1,500 to $2,000 for a single day of the crane, the builder/developer who is ordering five to ten houses at a time will achieve economies of scale by setting several homes in a day.  The same efficiencies apply to the installation contractor.  Once set on its basement or foundation, the remainder of the installation process will proceed as structural connections are made and the interior and exterior are matched and patched.  DETAILS can provide a list of installation contractors and mobile crane companies.

Completion. The next step in the process includes the construction of any site-built structures and equipment such as air conditioning.  Depending on the plan, there may be site-built garages (or attached garages) or added work on porches that are completed during this time.  Inside the home there will be the final sheetrock work, paint touchup and carpet installation. 

Concurrently, there are the major site tasks common to every construction project: concrete flatwork, landscaping, and fencing.  Finally, all systems are tested and the home undergoes its final inspection to receive a certificate of occupancy.  Depending on the complexity of each project, the elapsed time for completion work should range from 15 to 60 days.

Saving Money on Soft Costs

By taking advantage of the shorter construction cycle, the developer will save money from each of the “soft costs” that are a function of time.  These costs include, but are not limited to, interim financing for land and construction, property taxes, and course-of-construction insurance.  The predictable nature of our process lends itself to more sophisticated project management and scheduling practices such as Program Evaluation and Review Technique (PERT) or Critical Path Method (CPM).

Saving Money on Hard Costs

Saving money on the hard construction costs is naturally an area of great interest.  The modular industry is regularly recognized by outside sources – including trade magazines and case studies – for achieving savings of five percent to twenty percent and more.  The primary variables to be accounted for in order to conduct a direct comparison of relative costs are:  variations in local building costs, a comparable scope of work and transportation.

Variation in Local Building Costs. Construction costs are generally higher along the coast and mountain areas than in areas where the cost of living and real estate values are lower.  For example, Marin or Monterey County may have construction costs that are 30% to 50% higher than Fresno or Kern County, even though the specific sites compared may be less than 100 miles from each other.

Similarly, costs tend to be higher in urban markets than in suburban or rural markets, although in remote areas, costs rise again.  As a result, projects in higher priced areas will enjoy a greater savings.

Comparable Scope of Included Work and Transportation. The following items must be considered in order to execute a qualified comparison. They include

Engineering and Plans. These are included in DETAILS’s price but are normally an added cost of a site-built home.

Foundation. A DETAILS home is set on a raised foundation or a foundation that works as a basement as well.  Although this type of foundation in its simplest form is less expensive than a slab-on-grade, it is not included in DETAILS’s price.

Transportation. Costs will vary depending on how far the site is from our facility in Sacramento.  The cost to transport a single module will normally average between seven and ten dollars per mile.  For example, the cost to move a module (15' x 50' = 750 s.f.) to San Francisco at $9.00 per mile (85 miles) plus a loading and unloading fee of $500 will be approximately $1,260; the cost to San Diego (500 miles) would be approximately $5000; and the cost to Seattle would be approximately $7,250.  Freight quotes can be easily obtained in advance of your order.  This service can be coordinated by DETAILS and added to our invoice.

Installation. A qualified contractor must place the home onto the foundation and join the sections.  He will also coordinate a crane service and make the final conections.  This is not included in DETAILS’s price.

Air Conditioning. Heating systems are normally included in our invoice. Air conditioning is not included but can be pre-plumbed and pre-wired.  The A/C contractor supplies the condenser, pad, and a coil for the furnace plenum and charges the refrigerant lines.

Avoid the Cost of Standing Inventory and Unnecessary Risk

A common dilemma that challenges developers is finding a balance between the requirement to supply subcontractors with enough repetitive work to receive “production” pricing and the threat of building too much and having standing inventory and the financing costs associated with sitting on unsold homes. 

Working together with DETAILS as a team, the builder/developer is able to provide homes for his on-going sales on a short schedule without the normal losses to the economies of scale that impact site-building so dramatically.

Reduction or Elimination of Site-Building Problems

By using a DETAILS off-site constructed home, you will be avoiding many of the problems associated with site-building, including : -

Bad Weather. Rain, wind, dust, snow, ice, extreme heat and cold—all of these elements are troublesome when you have an extended outdoor exposure during the construction cycle.  Not only do these weather events slow down or stop construction, but they can also contribute to inferior workmanship and material application as well as damage to on-site materials or completed and in-progress work.

Homeowners grow uneasy when they see their homes being rained on, with open lumber, plywood, sheetrock, insulation, and other susceptible material being soaked or blown around. No one wants to purchase a new home that has dirt, mold, mildew, or delaminating plywood in the walls, roofs, or floors.

Site Disturbances. Construction Debris – Because a DETAILS home is relatively complete upon delivery, you will generate only a fraction of the trash and waste that normally piles up on site-built construction projects and save on the cost of having it hauled away.  Because our process makes a more efficient use of materials, it’s an environmentally responsible choice as well.

Liability - Builders and their insurers worry about the potential liability for injury in the event that people, especially children, get hurt while walking around or playing in partially built homes.  A DETAILS home that is buttoned up upon arrival greatly reduces your overall exposure to liability.

Noise and Other Offenses to the Neighborhood - This can be a huge issue on in-fill sites surrounded by existing homes, particularly in high-brow areas.  Because the construction of the home is executed inside an industrial facility miles away, the noise and general day-to-day interference is greatly reduced, much to the relief of the neighbors.  The construction cycle impact on the traffic, parking, dirt and mud in the streets, trees, shrubbery and other vegetation is lessened as well.

Theft and Vandalism. Many builders who have repeatedly been stolen from will appreciate the lowered exposure you will have because your site jumps from 10 percent to about 80 percent complete in one day.  A DETAILS home is closed in and lockable upon delivery.

Higher Quality of Construction.

The manufacturing environment and the equipment that DETAILS uses allow us to construct a frame which is substantially stronger than what carpenters assemble on a jobsite.  Additionally, because of the higher quality framing materials  and the fastening methods, floors and ceilings are flatter, the walls are straighter and major components are square with each other.  Adhesives, paints and all other materials and products are installed in a controlled environment where the manufacturers’ specifications can be complied with.   Because the homes are designed to withstand the stresses of transportation, they have superior strength to withstand extreme winds and earthquakes.

Fewer People to Deal With

Instead of the semi-chaotic jobsite where 20 to 30 individual contractors, who are often unconcerned with each other’s work, are vying for space and workable conditions, you could be dealing with just two. The State of California has created the C-47 license that allows the holder to accomplish all tasks related to the installation and finishing of a modular home.  Using this kind of a small team you could conceivably write only two significant checks – one to DETAILS and one for the onsite work - which will reduce your administration demands and personnel as well.  

Financing

A DETAILS project is financed the same way as a site-built project.  Your conventional construction loan will typically make advancements to Details at two intervals:  a deposit prior to initiating construction and a final payment upon delivery. 

The Technology is Available

Ask us what we can do to help set up a website for your specific project.  Recent surveys show that sophisticated buyers are shopping the web long before they get down on the street.  Let interested buyers or renters know that you are coming by making your presence known on the web with a simple sign on the project site and within other appropriate marketing venues.  Once directed to your project’s website, they can find information, including floor plans and elevations for the upcoming project and fill out an Interested Party Contact Form.  This valuable profile information is collected and stored, allowing you to view, download, and update the information through an online interface.  The information gathered will help you gauge interest, take reservations, and make presales.

Services and a Warranty

You will also enjoy the security and professionalism of doing business with an established company in exchange for what sometimes is a temporary assemblage of small undercapitalized contractors and suppliers who, often with the best intentions, cannot provide the same services with consistency.  Because of our volume and relationships with suppliers, this can make a huge difference when your homeowner is, for example, trying to have an appliance manufacturer complete a repair within a warranty period.

DETAILS provides a comprehensive warranty program that can be extended up to 10 years.  If something happens to one of our homes, you don’t have to figure out if it was the framer or roofer or painter who is responsible.  

Predictability and Peace of Mind

All of the aforementioned items are unique advantages that you, the builder or developer, will enjoy to varying degrees depending on the specifics of each project and its geographic location.  Above all, we believe that allowing DETAILS to work with you as a team player on your next project will allow you to control your project in a much more predictable fashion.  The simplified construction process and quality assurance will provide the peace of mind necessary for you to focus on more important business.

*California builds with “green” lumber which shrinks, twists, and checks, while DETAILS uses kiln dried lumber.