MODULAR MYTHBUSTING:5 Facts About Manufactured Construction Here are a few—and the truths that might surprise you—addressed by the industry’s leading volumetric modular consulting team.

2 • Prefab Logic | MODULAR MYTHBUSTING

Modular is difficult to finance.

It finances essentially the same way as any other build.

By the time your modular project ships from the manufacturing facility and arrives at the job site, the building is 90-95% complete, including most of the subcontractor work.

MYTH 1

FACT 1

As a contractor or developer, you may actually find it easier to obtain financing for your modular projects. This is because volumetric modular construction offers a more reliable experience from start to finish, reducing financial risk for everyone involved.

The manufacturing process follows proven best practices that can be repeated with a high degree of accuracy on each unit, often using a much smaller team than a traditional build. This approach produces buildings that meet the highest quality standards in the industry, but at significantly lower cost. A controlled factory environment also means fewer environmental delays. On average, a modular project can be completed 30% to 50% faster than traditional construction.

Aside from a more favorable lending experience, the financing process for a modular project has one key difference: the largest financial draws will come

up front. “Instead of money spread out across the project, you’ll be spending most of the funds early—about 50%-60% up front,” explains Doug Pill, Vice President. “Because by the time the pieces leave the factory, the building itself is 90%-95% complete.”

So instead of doing a draw for framing, then a draw for drywall, then a draw for plumbing, electric and so on, all of the subcontractors are employed at the manufacturing facility and their work happens simultaneously. By the time the modules leave the factory, your building is 90-95% complete. The major upside to this approach? Since costs are fixed in the manufacturing contract, you are protected from unanticipated overage costs.

“Once you sign a contract with a modular manufacturer on a building plan, the cost is fixed,” says Curtis Fletcher, Prefab Logic CEO. “That means no unanticipated draws or losses after the fact.”

3 • Prefab Logic | MODULAR MYTHBUSTING

There are very few manufacturers, and each company has a different process.

The industry is growing quickly and each company follows modular engineering best practices.

Modular manufacturing is not proprietary. Instead, it’s a system that a number of manufacturers currently practice, with many more on the way.

The Prefab Logic team approves modular manufacturers based on their ability to execute and complete a very broad range of project types. “We can secure multiple competing bids, just like a traditional build. This gives you plenty of options when it comes to finding the right manufacturer for your project or the option to use multiple manufacturers,” explains Doug Pill, Vice President of Prefab Logic.

This was exactly the strategy at Coburn Crossing, a multifamily modular project in Truckee, California.

To ensure the project stayed on time and on budget, Prefab Logic recruited three highly qualified volumetric modular factories to produce the units.

Even though the units for Coburn Crossing were built on opposite sides of the country, each one is identical in infrastructure, appearance, and quality from trusted Prefab Logic partners that follow Prefab Logic’s established best practices.

“Prefab is here to facilitate contracts,” says Prefab Logic cofounder Curtis Fletcher. “We’re independent of manufacturers. And we’re here to help you negotiate the best manufacturing arrangement for your project needs.”

MYTH 2

FACT 2

Modular manufacturing is a standardized construction process, not a proprietary technology. Each manufacturer Prefab Logic works with follows industry-established best practices.

4 • Prefab Logic | MODULAR MYTHBUSTING

Prefab construction is cheap, temporary, and won’t hold its value.MYTH

FACT

Modular is constructed to the same standards as tradition builds and appreciates in value like any other building.

Many builders might think about modular the way they think about mobile homes. Mobile homes in the 1950s and 1960s—immediately depreciated in value when they shipped—with an expected lifespan or a decade or two.

This is not the case with contemporary modular building.

Today’s modular buildings are made with the highest quality materials available. They adhere to the same local, state, and federal building codes, but offer precision and consistency controls not available with traditional on-site construction.

“Modular buildings are built to the same site-specific requirements and standards as traditional buildings, but in a controlled environment where

precision can actually be enhanced,” explains Doug Pill, Vice President. “So they stand up to all the conditions found at the final site, and they can be remodeled or renovated just like a traditional building.”

When it comes to modular, it’s not all or nothing. Volumetric modular units can easily integrate with Type I steel and concrete structures.

“Modular is versatile and varied in terms of types, sizes, and specifications of buildings,” says Prefab Logic cofounder Curtis Fletcher. “Our projects range from single-story up to 30-story structures.”

3

3

Buildings constructed using modular techniques do not have the fixed lifespan one might expect. Today’s modular buildings are permanent structures that can be remodeled and expanded with the changing needs of the client.

5 • Prefab Logic | MODULAR MYTHBUSTING

Modular buildings and fixtures are unattractive.MYTH

FACTModular buildings can be as beautiful as you want them to be. They are also customizable based on client needs.

Each project is built to the specifications set out in the project planning stages. Whether you are after a snug multifamily unit with all the comforts of home or a boutique hotel with unique touches throughout, modular construction can accomplish it.

The proof is in the projects. Examples led by the Prefab Logic team include stylish hotel chains like Citizen M and the Moxy by Marriott. Marriott and many other companies have turned to modular to get their new hotels up in a fraction of the time with the designer finishes their fashion-forward clientele expect.

Prefab Logic consulting services are not just reserved for high-end projects. In San Francisco, Prefab Logic is working with local nonprofits to create an affordable housing community for homeless veterans. This community complex, Maceo May, is named after a long-time advocate for veteran welfare in the Bay Area, and includes spaces for a food pantry and social assistance programs.

Visit the Projects page on our website to see the variety of options—from luxury hotels to senior communities—made possible by the efficiency of modular construction combined with the unrivaled expertise of Prefab Logic.

4

4

Modular projects are built to the architect’s specifications. Whether the plans call for luxury finishes or homey touches, they will be included in the final product—without exception.

6 • Prefab Logic | MODULAR MYTHBUSTING

Modular isn’t green.MYTH

FACTModular can build LEED-certified buildings all the way up to LEED Platinum.

Modular projects are built to some of the most stringent builder and developer specifications, including all LEED certification levels. If you want a building that uses sustainable or recycled materials, that goes into the project specifications just like any other design component. Modular projects can be designed for LEED certification all the way up to Platinum.

Going green is not just about certifications. The volume of construction waste produced worldwide is expected to double

to 2.2 billion tons by 20251. Volumetric modular construction has the potential to reduce waste by up to 90% by limiting use of wood pallets, shrink wrap, cardboard, and other disposable materials used in on-site traditional builds2.

Choosing a modular approach also reduces the footprint of the build, subjecting the surrounding environment to significantly less material exposure and physical damage.

1. Hoornweg, Daniel; Bhada-Tata, Perinaz (2012). What a Waste: A Global Review of Solid Waste Management. World Bank.

2. Hartley, Andrew; Blagden, Alex (2007). Current Practices and Future Potential in Modern Methods of Construction. Waste & Resources Action Programme.

5

5

The Canyon Village hotel complex in Yellowstone National Park was completed in half the time and with 20% of the crew needed for a traditional build of this size. Using locally sourced, recycled building materials and other energy and waste saving features, the project earned a LEED-Gold certification.

Prefab Logic is a construction consultancy firm specializing in modular construction planning, development, sourcing, and completion services. Our veteran construction professionals are pioneers in the modular industry, and can help developers, general contractors, and architects take advantage of the benefits of modular for their projects.

See the difference modular will make on your next project with our comprehensive Modular Feasibility Study.

800-756-3074PrefabLogic.com