GOING MOD- Modular Construction Solutions in Urban- Metro areas
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The document discusses how modular home construction can help reduce housing costs in Philadelphia. Modular construction involves building much of the home off-site, which can significantly lower costs compared to traditional stick-built construction. Philadelphia has some of the highest construction costs in the country, making it difficult to provide affordable housing. Adopting modular construction techniques could increase the number of affordable housing units built each year by 20% or more. While modular homes offer cost savings and other benefits, stick-built construction provides more design flexibility and supports local labor jobs. The report provides a full analysis of the pros and cons of each approach.
![STICK MOD STICK
$180,496
MOD
$180,939 5 High finish costs charged by contractors
lacking modular-construction experience or
CONSTRUCTION COSTS
$173,939
$164,213
by those who prefer stick-built construction
$130,411
$135,698 can significantly reduce modular
construction’s cost efficiencies.
At present, many union contractors in Philadelphia are not motivated to give
good prices for finish and set work. Others are carving out this market niche
16-ft.-wide suburban home
16 ft wide suburban home 20 ft wide suburban home
for themselves with the understanding that participating in more projects
20-ft.-wide suburban home
makes good sense, even if their role in each is smaller. As the New Kensington
Community Development Corporation wrote in 2008, “the initial costs savings
produced by modular construction may be reduced by an increase in labor
expenses” when union laborers complete finish work. Several building industry
Modular Minimal
members interviewed said that union contractors have bid well over 25 percent
saves 17% Savings with
of project cost to finish the house on the site. We found this to be the case,
modular in the
In the Suburbs
suburbs though estimated finish costs differed substantially from firm to firm. The lowest
bid to finish a 16-foot-wide modular home was $44,045. The highest to finish
the same home was $115,324—a rather startling difference in estimated price
3
to connect utilities, attach the facade and complete a home that had so far
costed $71,279. There are ways to reduce the cost of finishing a modular home;
M
odular only provides cost savings in
one developer told us that he uses his first modular unit on every project as a
the suburbs when a single modular box
test case. Whenever the plumbing or electrical contractors identify a component
is used per floor. that raises finish costs, he has these components changed on later versions of
the unit coming out of the factory.23
This study found that modular’s primary cost benefits come from
reducing labor costs, and in the suburbs labor costs are already competitive.
That said, if a 16-foot-wide townhouse were a viable product in the suburbs,
there would be substantial savings of more than 17 percent compared to the “ ne of the biggest challenges to the integration
O
cost of stick-built construction. The reality, however, is that a 16 x 40-foot house of prefab and modular by CDCs [Community
is too small to be attractive in current suburban markets. For the 20-foot-wide Development Corporations] and housing agencies is
house no savings were achieved from using modular-construction techniques,
related to perceived union labor issues. The reduction
according to the cost comparison.22
of work completed on site may threaten union
workers, although should not be a deal-breaker.”
4
The weeHouse - Modular Housing for Kensington, New Kensington Community
The four contractors’ bids differed significantly Development Corporation (2009)
for both stick-built and modular construction.
The estimated prices in their bids to build the same house using the same
construction method differed in some cases by over $80,000. (See bids on
pages 14 to 15 and 38 to 45.) Several developers interviewed for this report
said that they find significant price differences to be typical when they solicit
bids. This makes it extremely important for any new homeowner or nonprofit
or for-profit developer to shop around to obtain the most competitive price.
Cost Comparison | 17](https://image.slidesharecdn.com/goingmod-121220134827-phpapp01/85/GOING-MOD-Modular-Construction-Solutions-in-Urban-Metro-areas-17-320.jpg)
![City of Philadelphia development-review More local workers are employed to
agencies are comfortable with modular and construct stick-built housing.
stick-built construction. Modular manufacturing employs its labor at the factory. At this time, there
Although many building industry leaders mentioned that in years past, are no modular factories located in Philadelphia; therefore, the jobs will not
inspectors were uncomfortable with modular construction, all agreed that be located in Philadelphia. There is no available data that shows how many
today, the city inspectors and plan examiners are equally confident with both Philadelphians are employed in nearby modular factories. However, a 2009
construction methods. The one difference in how the homes are examined is mayoral report looking at local and minority participation in construction
that modular homes must pass rigorous inspection at two points in the process. found that a substantial number of construction workers in the city are not
The first takes place in the factory, where third-party inspectors inspect and Philadelphia residents.36 If more builders chose modular housing methods, it
approve the manufacturing process and the construction of each unit. The would create an inducement for factories to open in or near the city—helping
second occurs when city inspectors inspect the home once it has been set Philadelphia to create new jobs and to achieve many of its sustainability
and finished. Because the modular sections are inspected and certified in the objectives by reducing the carbon footprint of home construction.37
factory, less city inspector time must be dedicated to ensuring their quality
and safety. City inspectors are able to limit their inspection to checking the Modular construction requires the hiring of
foundation, the joining of modular units and party walls, any final installation
a general contractor, just like stick-built does,
of siding or roofing, and site utility connections.
to avoid issues regarding liability.
Leaders of Philadelphia CDCs have reported that when considering modular
Transportation of modular units requires
construction, liability is a major concern. Their fear is that the modular
skill and knowledge.
manufacturer will not be considered liable for building defects that might be
Modular construction requires the modular manufacturer or developer to said to have occurred during set and finish. Nationally, there are reports of
evaluate whether road conditions, highways, bridge heights, street widths conflicts between the manufacturer and the on-site builder, with both trying to
and other factors will permit transport of the large boxes to the building site. shift legal responsibility onto the other.38 The solution, and the general practice
Modular builders who were interviewed had very different perceptions about in many communities, is to hire a general contractor who will buy the box, set
the ease of obtaining permits to move the modular units through traffic: while and finish it and take on liability for any failure, regardless of whether they
some said that it involves numerous government agencies and large amounts of intend to seek compensation from the manufacturer.39
paperwork, others who are accustomed to government paperwork reported that
the transportation permitting process is nothing unusual.34 Some developers
voiced concern that truck and crane access is not feasible on urban in-fill
lots, while others have brought in cranes even on small lots off of narrow
Philadelphia alleys.35
“ T]here are . . . several basic principles intrinsic to the modular-construction process
[
that make it more eco-friendly than conventional construction. They spend significantly
less on-site time . . . which notably minimizes the overall impact on a site. And . . .
modular-construction methods and materials allow a building to be more readily
“deconstructed” and moved to another location should the need arise, so complete
building reuse or recycling is an integral part of the design technology.”
“ xternal Issues and Trends Affecting Architects, Architectural Firms, and the AIA,” American Institute of Architects, February 2008
E
http://www.aia.org/aiaucmp/groups/aia/documents/pdf/aiab046303.pdf
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![Recommendations
Educate developers, contractors and potential owners Attract a modular factory to the city or near its
about modular single-family construction. borders to further reduce the costs of modular.
Builders of single family homes have been slow to adopt new technical Modular builders in the state are currently limited to shipping boxes no wider
approaches to construction or to use innovative products. As the New than 16 feet on state highways. One builder has found a way around these
Kensington Community Development Corporation (NKCDC) found in 2008, restrictions in New York City—by shipping exclusively on local roads and
“[T]here is a general lack of knowledge within the Philadelphia development obtaining an agreement with the city that allows the transportation of wider
community with regard to modular construction. At present, inexperience is boxes. New York City, in order to bring down the cost of constructing affordable
a primary limitation to developing, building and investing in this method.”
45
housing, has authorized the shipping of 18- and 20-foot-wide boxes on local
roads between midnight and 4:00 a.m. This allows for larger homes to be built
The When We Fix It Coalition, the Building Industry Association and other key using a single box.46
players in new construction should provide a series of trainings and open
houses to educate building professionals about modular construction. Architects, Capsys Corporation, located in the Brooklyn Navy Yard, transports modules of
contractors and builders need good information well in advance of their next 20 feet wide and up to 45 feet long in the early morning hours on local roads.
residential new construction project in order to select the most appropriate Capsys has found that the 20-foot width of the modules allows just one module
construction method. The current building slump provides the perfect to constitute a single floor and reduces the number of plumbing, heating and
opportunity to get builders in a room and familiarize them with the benefits electrical connections that must be made in the on-site finish process. Capsys
of new technologies. obtains permits through the New York City Department of Transportation, and
the city provides a police escort; the streets are not closed. Engineers hired by
Capsys are responsible for performing thorough surveys of the entire transport
route in advance and submitting them to the city.
As modular construction takes over a greater percentage of total building in the
city, Philadelphia certainly could offer the same arrangement to a new or existing
local modular company in order to lower costs further. Having a manufacturer
in or nearer to Philadelphia’s borders would allow for the training and hiring
of more Philadelphia workers, particularly minority workers, who currently are
underrepresented on union construction-site crews.
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![22
Developers are using modular-construction methods for larger homes in the suburbs 35
Interview with Nic Darling, partner, PostGreen (March 24, 2009); interview with David
and making a profit. Perlman, Philadelphia Residential Development Company (May 18, 2009); interview
with Scott Miller, Miller Purdy Architects (May 18, 2009.)
23
Interview with David Perlman, Philadelphia Residential Development Company (May
18, 2009). 36
“Mayor’s Advisory Commission on Construction Industry Diversity Report and
Recommendations” (March 2009), http://www.econsult.com/articles/031609_
24
Peter J. Cameron and Nadia G. DiCarlo, “Piecing Together Modular: Understanding MACCID_Exec_Sum.pdf
the Benefits and Limitations of Modular Construction Methods for Multifamily
Development,” Massachusetts Institute of Technology Thesis in Satisfaction of a 37 carbon footprint is is a measure of the impact human activities have on the
A
Master of Science in Real Estate (September 2007), http://dspace.mit.edu/bitstream/ environment in terms of the amount of greenhouse gases produced, measured in
handle/1721.1/42038/228657327.pdf?sequence=1 units of carbon dioxide.
25
Murdock, James, “Modular Makes a Comeback,” Multi-Housing News 40, no. 3 38
“Modular System Design Test and Evaluation Results, prepared by The Hickory
(March 2005), pp. 1–27. Consortium, Building America Initiative,” submitted to National Renewable Energy
Laboratory (April 18, 2002).
26
Interview with David Perlman, Philadelphia Residential Development Company (May
18, 2009). Shelley Christiansen, “Modular Houses Barge in,” Martha’s Vineyard Magazine
39
(Summer 2008), http://www.mvmagazine.com/2008/home_and_garden_spring-
27 fact, modular companies offer to design homes for free, but this is done without a
In summer/modular.php
professional architect. Most of the design constraints come at the beginning of the
process. Once they are understood, many different types of designs are possible. 40
These advantages will be markedly increased when modular builders routinely begin
Interview with Scott Miller, Miller Purdy Architects (May 18, 2009.) to offer upgraded materials and environmentally preferred products.
28
Interview with David Perlman, Philadelphia Residential Development Company 41
Telephone interview with Brian Phillips, Interface Studio Architects LLC, Philadelphia
(May 18, 2009). (May 2009). Phillips points out that shorter site disruption can be especially helpful in
dense urban settings.
29 is important to note, however, that modular homes often fail to be completed by the
It
agreed-upon schedule. According to a 2006 study by J. D. Power and Associates of 42
Suzanne Morphet, “Local Prefab among 25 Selected for New Book,” Vancouver
modular homes built in 2005, “[O]nly 35 percent of modular homebuyers reported Sun (November 14, 2009); interview with David Johnston, green building expert at
the home was ready for move-in by the date originally promised.” Thayer Long, “J. WhatsWorking.com (June 3, 2009), http://www.vancouversun.com/business/Local+pr
D. Power and Associates Surveys Modular Customer Satisfaction,” Building Systems efab+among+selected+book+book/2222641/story.html
Magazine, March-April 2007, http://www.modularcouncil.org/mc/pub_mod/default.
asp?id=14article=192 43
Lifecycle Construction Resource Guide, Environmental Protection Agency (February
2008), http://www.lifecyclebuilding.org/files/Lifecycle%20Construction%20
30 J. Newman and Patrick Fleming, “Manufactured Housing: A Misunderstood
Eric Resource%20Guide.pdf
Real-Estate Market,” Journal of Business and Economics Research 4, no. 5 (May
2006), http://www.cluteinstitute-onlinejournals.com/PDFs/2006349.pdf; Lynn 44
Susan Conbere and Asa Foss, “Modular and Green,” Professional Builder 71, no. 7
Lofton, “Modular Homes May Solve Coast Shortage, but What Are They?” Mississippi (July 2006), pp. 87–90.
Business Journal 28, no. 51 (Dec. 18, 2006), pp. 30-31, http://proxy.library.upenn.
45
“The weeHouse—Modular Housing for Kensington,” New Kensington Community
edu:2054/login.aspx?direct=truedb=kehAN=23590769site=ehost-live
Development Corporation (2009).
31
Cameron and DiCarlo, “Piecing Together Modular.”
46
http://www.capsyscorp.com/portfolio.php?c=13,
32
Matthew Power, “Made to Order,” Builder Magazine (February 2002), http://www.
47 See note 21.
builderonline.com/sales/made-to-order.aspx
33
“Mitigation Assessment Team Report: Hurricane Andrew in Florida: Observations,
Recommendations and Technical Guidance,” Federal Emergency Management Agency
(December 21, 1992), http://www.fema.gov/library/viewRecord.do?id=2765
34
Cameron and DiCarlo, “Piecing Together Modular.”
Appendix | 47](https://image.slidesharecdn.com/goingmod-121220134827-phpapp01/85/GOING-MOD-Modular-Construction-Solutions-in-Urban-Metro-areas-47-320.jpg)
GOING MOD- Modular Construction Solutions in Urban- Metro areas
- 1. GOING Reducing Housing Costs in Philadelphia with Modular Construction
- 2. Since 2004, the When We Fix It Coalition, a group of nonprofit and for-profit builders, architects, engineers, environmental groups and others who seek increased investment in the city, have worked to bring down the cost of construction in Philadelphia. Most of their efforts have been directed at the costs attributable to obtaining permits and approvals from the city of Philadelphia. In partnership with the city, the coalition’s successes in this area include the passage of a referendum to form a Zoning Code Commission to reform the city’s zoning code, the creation of the city’s Coalition members include the following: first comprehensive electronic zoning map, the production Building Industry Association of Philadelphia of the first development review guide to set down city 10,000 Friends of Pennsylvania requirements in a single document, and many other key American Institute of Architects, Philadelphia Chapter reforms to improve the investment environment. Central Philadelphia Development Corporation Housing Alliance of Pennsylvania Local Initiatives Support Corporation Philadelphia A joint publication of Pennsylvania Environmental Council Philadelphia Association of Community Development Corporations The Reinvestment Fund ULI Philadelphia FixItPhilly The Community Design Collaborative and the American Planning Association, Pennsylvania chapter, join the coalition in releasing this report. We gratefully acknowledge the William Penn Foundation for funding this report. 2
- 3. GOING MOD Contents Executive Summary Introduction Section 1: Modular Home Construction 101 4 6 8 Section 2: Cost Comparison: Modular Provides Substantial Savings 13 Section 3: Speed and Sustainability 19 Section 4: Recommendations 22 Conclusion 23 Appendices 24 • Methodology • Request for Information (RFI) • Scope of Study • Design Specifications, Architectural Plans • Cost Breakdown Sheet • Request for Information Supplement • Bids/Responses to RFIs • References | 3
- 4. Executive Summary going modular } 340 Philad grown than th U.S. av Philadelphia’s high construction costs compromise the 290 In addition, modular home construction offers speed, city’s ability to meet the housing needs of residents, durability and environmental-sustainability benefits. Philadelphia attract investment and redevelop abandoned land. 240 Stick-built construction, however, offers the advantages of more design Philadelphia’s construction costs are the fourth highest of any major city in flexibility and a greater use of local labor. A full picture of the pros and cons of 20-City U.S. Average each method is included within the report in order to help for-profit and nonprofit the nation and 18 percent above the national average for all United States communities. The city’s house values—the price for which homes can be sold 190 developers choose the best construction method for individual projects. —are the third lowest of any major city in the nation and are 40 percent below the national average. As a result, construction costs often exceed the prices of Modular home construction means that limited public subsidy dollars can new homes. This makes government subsidy a prerequisite for 140 home building in go further; the adoption of modular home building for 16-foot-wide rowhomes most Philadelphia neighborhoods to fill the gap between building costs and the in Philadelphia can mean an immediate annual increase of 20 percent in the sales price of a home. High labor costs, 39 percent above the national average, volume of publicly subsidized housing built each year, thus providing decent, 90 drive the construction industry’s out-of-scale cost structure. These labor costs safe and sanitary housing for many more low- and moderate-income families 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 make up over half the total cost of an average project in Philadelphia. and reducing the number of families and individuals who become homeless each year. Modular single-family-home construction significantly lowers the cost to build a new home in Philadelphia. Modular construction requires much of the house to be built off site $250,000 in a modular factory and then shipped to the site, placed on a foundation and $218,534 $200,000 finished by workers on site, who complete the facade and make $200,016 $199,702 Construction Costs all necessary utility connections. $159,090 $150,000 A detailed cost comparison found that, on average, an owner or developer $100,000 saved 20 percent of total project costs by building a 16-foot-wide x 40-foot- Stick-Built Modular Stick-Built Modular long rowhome in the city using modular versus stick-built construction. Average $50,000 savings for the modular construction of a 20-foot-wide x 40-foot-long home in 0 the city were 9 percent. 16-ft.-wide home in city 20-ft.-wide home in city Modular Modular saves saves 4 20% 9% 25000 16-ft.-wide stick built 16-ft.-wide modular 20000 $200,016
- 5. This report was commissioned by the Philadelphia must find ways to reduce the cost of When We Fix It Coalition. building new homes in the city. The coalition is a group of nonprofit and for-profit organizations in the city of Modular technology offers the opportunity to lower the cost of a single-family Philadelphia dedicated since 2004 to lowering construction costs and achieving house in Philadelphia by an average of $22 per square foot. Homes are high consistency and fairness in the city’s development review process. quality, durable, and environmentally sustainable. Through the process described in this report, the When We Fix It Coalition found that replacing stick-built with To complete a price comparison between modular and stick-built construction, modular construction would result in savings of 20 cents on the dollar for the coalition issued a Request for Information (RFI) in the fall of 2009 to four 16-foot-wide homes and 9 cents on the dollar for 20-foot-wide homes. While construction contracting firms that build single-family homes in the city and its these numbers are not sufficient to close the market gap between the high cost surrounding suburbs and that have a reputation for quality work. Each firm was to build in Philadelphia and the city’s low market values, they do offer substantial asked to provide an accurate bid to build a 16-foot-wide rowhome/townhouse help in making the numbers work. Modular homes are high quality, durable and and a 20-foot-wide rowhome/townhouse using modular and stick-built environmentally sustainable. The savings created by using modular construction, construction on two identical sites—one in the city and one in the suburbs. The along with the city’s very successful property-tax-abatement program for RFIs, the responsive bids, the architectural plans and the detailed specifications residential construction, make viable the construction of much-needed middle- are included in the appendix to this report. Firms were told to assume that union class housing, as well as low-income and luxury housing. With recent census labor would be used in the city, per industry custom. For the smaller home, a estimates showing that Philadelphia finally stopped its 60-year pattern of 16-foot-wide x 40-foot-long size was selected because it is fairly standard for population decline and is open to growth, competitively priced housing becomes workforce housing in the city and can be completed with a single modular “box” even more important to achieving Mayor Nutter’s promise to attract 75,000 new from the factory per floor. A 20-foot-wide x 40-foot-long size was selected for the city residents over the next decade. suburban home, both because it reflects the size of a small marketable suburban home and because it requires the construction and fastening of two “boxes” per floor, which adds substantial cost. replacing stick-built with modular construction would save 20 cents on the dollar for 16-foot-wide homes, or $32 per square foot. Executive Summary | 5
- 6. “ ecessions are times for innovation and reeducation of the way the building industry R works to make it more competitive and give people new options.” Brian Phillips of Interface Studio Architects LLC introduction During much of its recent history, Philadelphia’s This report examines whether the technologies offered combination of low property values and high construction by modular housing, which is built off site in modules costs has made new residential housing prohibitively for later assembly on site, present an opportunity to expensive to build. This has been a significant factor in the significantly lower the costs of new house construction in absence of quality housing for low- and moderate-income Philadelphia. It also analyzes what conditions must be in residents and in the loss of middle-income residents over place for modular construction to offer advantages over the last five decades. stick-built construction and compares modular versus stick-built construction with respect to durability, speed, environmental sustainability and other factors. The report concludes with recommended next steps to bring savings to Philadelphia homebuyers. Construction costs in the city of Philadelphia are 18 percent higher than the national average, while home market values are 40 percent lower than the national average.1 As a result, the cost to build a new house in Philadelphia often exceeds the Philadelphia market values are too low to cover its sales price that buyers are able and willing to pay for a new home. In fact, 2 high construction costs, deterring investment in many neighborhoods the only major cities in the United States with higher construction costs are Boston, New York and San Francisco, each of which has significantly Construction Costs Market Values are higher than in most cities are lower than in most cities higher housing prices to support the elevated building costs. To date, the 3 city has filled the significant market gap created by low property values Phila National Average National Average and high construction costs for affordable housing with government Phila subsidy. As a result, housing built for low-income households dominated the Philadelphia housing market for decades, making up 60 percent of all The median cost of a home sold in Philadelphia new single-family homes as recently as 2002.4 in the first quarter of 2009 was $139,000, compared to the national average of $175,500.5 6
- 7. 100000 50000 0 Philadelphia’s share of regional residential development has grown due to rising market values tax abatements. By 2007, the city’s decision to provide tax abatements for residential Philadelphia’s small share of the region’s residential building permits has grown construction made it possible for residential developers to invest in the city for the first time in years, building new luxury and workforce housing. In 2007, the City and County of Philadelphia 3% 100 total number of homes built in the city increased by 600 percent, with only 8 11% 15% percent of total new homes being subsidized affordable housing. Even with this 80 huge increase, Philadelphia’s housing production still lagged behind that of the 1st-Tier Suburban Counties 52% 48% 47% 60 surrounding suburbs and other large cities across the country. 6 40 Urban Fringe Counties 45% 41% 38% In 2000, the city expanded an existing ten-year property-tax-abatement 20 program that had been limited only to renovation to include new construction 0 1990–95 2002–07 2007 of any type, including housing. The abatement has been credited with allowing $139,000 private-sector development of workforce and middle-class housing in the city Philadelphia’s Share of Total Residential Building Permits in the Region (Phila-Camden-Wilmington, PA-NJ-DE-MD) from 2000 to 2008, after decades of disinvestment. 7 $175,500 90-95 02-07 2007 High labor costs make it impossible to construct a house in Philadelphia at a regionally competitive price. Philadelphia’s high labor costs caused one major national builder to build its first and only modular homes in the United States in 2008. Initial calculations showed that the company could not produce their usual home products for a profit in Philadelphia. Modular-construction savings allowed them to build to their standards at a profit.8 Labor costs drive Philadelphia’s high construction costs. The cost of construction Philadelphia construction costs higher than 20 peer cities labor in Philadelphia is 39 percent above the national average, and labor From 1983 to 2008, Philadelphia’s construction costs grew 17% faster than those in other cities, material costs increased 85% and labor costs increased by 170%.11 accounts for 45 percent to 60 percent of a project’s cost. While union labor 9 } is required by custom in the city, labor in the surrounding suburbs is not so 340 Philadelphi constrained. As a result, the cost to build a house in the city is significantly grown 17% than the 20 higher than the cost to build the same house in the surrounding Pennsylvania U.S. avarga 290 and New Jersey suburbs. Despite the uncompetitive position in which this Philadelphia places Philadelphia, the city has not achieved comprehensive cost reductions 240 in housing construction labor in the past two decades.10 As a result, this report seeks to find a method to lower the labor costs required to build a house in the 20-City U.S. Average 190 city through technical advances and the use of modular-construction techniques. Importantly, in 2009 the Building Industry Association of Philadelphia’s Labor 140 Committee achieved a landmark agreement with the Carpenter’s Local 1073 1978=100 that effectively reduces the costs associated with the work performed by the 90 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 carpenters by 34 percent on private market housing. In 2010, there is an overwhelming need to create competitive building conditions in Philadelphia. $250,000 Development spurred by the residential new-construction tax abatement This report is offered with the hope of helping builders innovate during this $218,534 $200,000 screeched to a halt in 2008 due to the recession. High construction costs, recession, as well as during the$200,016 next market upturn. $199,702 dropping property values, shrinking credit, growing unemployment and declining $159,090 $150,000 income growth make this a critical time in which to address the issue of how to $100,000 make the city’s housing market more robust. $50,000 0 16-ft.-wide home in city 20-ft.-wide home in city Introduction | 7
- 8. Modular home construction 101 The Basics: How Modular Construction Differs from Stick-Built Construction Stick-Built Construction Foundation Framing of the Walls Facade and Interior and Floors Finishes Constructed in the field Constructed in the field Facade • Poured-in-place concrete • Most materials delivered directly to the site • Front and rear facades constructed in the field • Concrete masonry units • Field-assembled by carpenters • acades and roof are installed following the framing on the F • Panelized systems • Linear process—one floor after another walls and floors • Sheathing is field applied • teps and sidewalks are usually poured or constructed after S Can build on top of foundations or slab on grade. facade work is underway or completed MEP-related items Coordinate site work and utility connections. • abricated and installed on site by related trades— F Interior Finishes plumbers, electricians, sheet-metal workers • nterior finishes such as kitchens, bathrooms, finished drywall I • rocess follows framing P and flooring are constructed and installed in the field and by a • abricated and installed on site by related trades— F process determined by the framing of the home requires incremental sign-offs by building inspectors • inal utility connections are done in the field F Stick-built construction is the standard practice in the Philadelphia region. About 97 percent of the 1.2 million annual new housing starts in the United The homes are constructed out of lumber and other materials that are cut States are stick built. The stick-built method for framing a house has been 12 and fastened together into walls and roof trusses, then finished on the interior used since the 1800s and has more or less remained the same. When a single- with drywall and on the exterior with siding, stucco or brick. While the home family house is built using stick-built construction, the house is constructed on is typically completely assembled on site, prefabricated panels or roof trusses site outdoors by several work crews, who build the foundation, do the framing are used more and more often to save cost and time. Stick-built homes must and install plumbing, electrical and other systems in accordance with an conform to local building codes. architect’s plans. Often, these work crews are subcontractors hired for a single aspect of the project. 8
- 9. Modular Construction Foundation Framing of the Walls Facade and Interior and Floors Finishes Constructed in the field Built within the factory Facade • Poured-in-place concrete • Product delivered to the site by truck • Front and rear facades constructed in the field • Concrete masonry units • Boxes set by modular manufacturer • acades and roof are installed following the setting F • Panelized systems • oxes are manually connected to the foundation in the field B of the boxes • Factory-set levels of quality controls • teps and sidewalks are usually poured or constructed after S Minimum requirement of a foundation with • Exterior sheathing already installed facade work is underway or completed a 30” crawl space. MEP-related items Interior Finishes Coordinate site work and utility connections. • ost MPE-related items come assembled in the box M • nterior finishes such as kitchens, bathrooms, finished drywall I • inor connections and hook-ups required in the field M and flooring are constructed in the factory and delivered within the boxes • inal finishing and minor touch-up is required after boxes are F set in place • inal utility connections are done in the field F The maximum width of a modular unit that can be conveyed on a state highway in Pennsylvania is 16 feet. The maximum height is 14 feet 6 inches, including the height of the trailer. The maximum length feasible for modules is 80 feet. As a result of the height limit, indoor ceiling heights for modular homes cannot exceed 9 feet 6 inches. Using modular-construction methods, the majority of the house is built in an indoor, factory setting and then shipped to the site. Three percent of single-family homes nationally are built using modular When building with modular methods, workers assemble the frame, roof, drywall construction. In the rainy, snowy Northeast, this percentage climbs to 11 13 and flooring inside a factory, in accordance with an architect’s plan. Several percent.14 With several major national homebuilders starting to use modular modular factories are located within a two-hour drive of Philadelphia. The construction, including Warren Buffett and his i-house produced by a Berkshire module, also referred to as the box, is constructed in the factory using the same Hathaway subsidiary, Clayton Homes, many experts forecast that modular materials as those used for stick-built housing. Windows, cabinets, flooring, construction will increase its share of the market. 15 carpeting, walls, doors and lighting fixtures are installed inside the factory. Upon completion, the box or boxes are encased in house wrap (such as Tyvek) and shipped by truck to the site. Modular Home Construction 101 | 9
- 10. “The Arbours at Eagle Pointe,” Westrum Development Company The primary restriction placed on this type of construction is the 16-foot Finish work also includes the building of the foundation that the modular maximum width allowed for any modular unit that must be transported on a boxes will be set on, even though this work takes place at the beginning of the state or federal highway. When the completed home will be larger than 16 feet process. Finish work typically costs about 25 percent of total construction and wide, more than one box must be shipped, set onto a permanent foundation is performed over the course of one or two months.17 using an 80- to 160-ton crane and fastened together to create the home. The thickness of the structure is doubled along the “marriage line” where the boxes Modular homes can be built in accordance with any architectural plan, but if cost meet. The onsite crew fastens the boxes together, as though attaching Lego is an issue, the factory’s standard designs with modified floor plans are typically pieces, using big wrenches and huge bolts. This process is called the set. used. Developers and users agree that the final product is indistinguishable from its stick-built counterpart.18 Modular units are inspected while in the factory to Most modular manufacturers provide a rough set—that is, they place the ensure that they meet national International Building Code standards, and they box or boxes by crane onto the foundation and seal the home—and give the are inspected again on site to ensure that they conform to local building codes, responsibility for the finish work to the builder or contractor hired by the owner which in Philadelphia is the International Building Code as well.19 (including installation of HVAC equipment, interior and exterior finishes for mate walls16 and floors, utility hook-ups, drywall touchups, painting, porch and deck construction, garages and brick work.) The Pennsylvania Supreme Court has held that municipalities cannot prohibit modular housing or, without a strong reason, treat it differently than housing built on site.20 10
- 11. Modular homes are not the same as mobile or trailer homes. Modular homes are built with the same materials and using the same techniques as stick-built homes, although in an indoor, factory environment. Modular homes are indistinguishable from stick-built homes once they have been built. For the purposes of this study, smaller homes referred to as rowhomes or townhouses were examined, but modular methods can be used to build any type of home design. | 11
- 12. “ t first I was skeptical that a house made up of boxes from a factory could create a A house with as high quality a design as a traditional stick-built home, but it can. With good architectural design, modular homes are indistinguishable from stick built and can be significantly less expensive to build.” Matthew Koenig, AIA, JKR Partners LLC 12
- 13. cost comparison: Modular provides substantial savings In fall 2009, the When We Fix It Coalition hired two locally respected developers to issue an RFI to four contracting firms requesting bids to build identical homes using modular or stick-built construction methods. (A full description of the methodology employed for this study is included on pages 24 to 25. ) In brief, a detailed RFI supported by complete sets of architectural plans Bids were also requested from manufacturers to build the modules that will developed by JKR Partners LLC was issued for two home designs—a make up the house, transport them and set them onsite. The modular boxes 16-foot-wide rowhome/townhouse and a 20-foot-wide rowhome/townhouse. were to be transported with completed kitchens and bathrooms as detailed All companies were asked to provide bids for the construction of homes with in the architectural plans. Bids were requested from two respected Southeast identical specifications and comparable requirements regarding the quality of Pennsylvania factories. Neither of these modular manufacturers ran union shops. finishes, fixtures, doors, walls, carpeting, electrical systems, plumbing and HVAC. Their bids came in fairly close to one another, with the 16-foot modular home The bids were for single-family homes to be constructed on identical lots in the bids at $84,522 and $90,266 and the 20-foot modular home bids at $111,939 city and in an area suburb. and $130,737. The average cost for the work of these modular manufacturers was then added to the contracting firms’ bids to finish the houses in order to Bids were requested for eight homes, described below. Three contractors arrive at the total cost of construction for a modular 16-foot house and a provided estimated costs for each of the eight home types requested. One 20-foot house. contractor provided estimated costs for the four homes located in Philadelphia only, due to inadequate experience in the suburbs. The width of the homes was selected for two reasons. First, as mentioned earlier, a 16 x 40-foot rowhome is fairly standard for workforce housing in the city, while a 20 x 40-foot house is a small but marketable housing product in the suburbs. Second, a 16-foot-wide house can be built using only one modular box from the factory, while a 20-foot-wide house requires the construction and fastening of two modular boxes, which increases the costs of building and setting the larger house using modular. None of the total estimated construction costs included site improvements.21 These are the eight homes for which bids were requested: 1. 16-foot townhouse or rowhome on a specific urban site in Philadelphia, A 5. 16-foot townhouse or rowhome on a specified suburban site, A using stick-built construction; using stick-built construction; 2. 16-foot townhouse or rowhome on a specific urban site in Philadelphia, A 6. 16-foot townhouse or rowhome on a specified suburban site, A using modular construction; using modular construction; 3. 20-foot townhouse or rowhome on a specific urban site in Philadelphia, A 7. 20-foot townhouse or rowhome on a specified suburban site, A using stick-built construction; using stick-built construction; and 4. A 20-foot townhouse or rowhome on a specific urban site in Philadelphia, 8. A 20-foot townhouse or rowhome on a specified suburban site, using modular construction; using modular construction. Cost Comparison | 13
- 14. cost comparison: The Findings 16’ Stick Built - Urban Cost $ Per Sq. Foot SITE BUILT Bid Breakdown Contractor 1 $205,503 $161 Contractor 2 $259,156 $202 Contractor 3 $156,199 $122 Contractor 4 $179,205 $140 Average Average Cost with No Site Work $200,016 $156 Modular construction significantly lowers the cost of construction in the city. 16’ Modular - Urban Cost $ Per Sq. Foot MODULAR Average Average Cost with No Site Work $159,090 $124 Modular Modular Vendor 1 Vendor 2 Bid Breakdown Modular Vendor Cost of Box $84,522 $90,266 Contractor 1 Finish Costs + Box $158,798 $164,542 Contractor 2 Finish Costs + Box $190,956 $196,700 Contractor 3 Finish Costs + Box $121,267 $127,011 Contractor 4 Finish Costs + Box $153,852 $159,596 14
- 15. 20’ Stick Built - Urban 16’ Stick Built - Suburban 20’ Stick Built - Suburban Cost $ Per Sq. Foot Cost $ Per Sq. Foot Cost $ Per Sq. Foot $220,953 $138 - - - - $275,919 $172 $206,045 $161 $218,184 $136 $180,122 $113 $141,668 $111 $163,798 $102 $197,140 $123 $144,925 $113 $159,505 $100 $218,534 $137 $164,213 $128 $180,496 $113 20’ Modular - Urban 16’ Modular - Suburban 20’ Modular - Suburban Cost $ Per Sq. Foot Cost $ Per Sq. Foot Cost $ Per Sq. Foot $199,702 $125 $135,698 $106 $178,939 $112 Modular Modular Modular Modular Modular Modular Vendor 1 Vendor 2 Vendor 1 Vendor 2 Vendor 1 Vendor 2 $111,939 $130,737 $72,864 $82,558 $105,821 $129,789 $192,730 $211,528 - - - - $226,430 $245,228 $148,365 $161,705 $192,907 $217,675 $154,528 $173,326 $108,652 $121,992 $143,009 $167,777 $187,523 $206,321 $130,068 $143,408 $163,748 $188,516 Cost Comparison | 15
- 16. cost comparison: } Analysis Philadelphia 16 FT WIDE STICK BUILT 16 FT WIDE MODULAR 20-City U.S. Average $218,534 1 2 $200,016 $199,702 CONSTRUCTION COSTS M odular construction significantly lowers the C onstructing a house in Philadelphia costs $159,090 cost of construction in the city. substantially more than building an identical STICK in the suburbs. house MOD STICK MOD The average cost savings for building a 16-foot-wide rowhome using modular construction in Philadelphia were 20 percent, reducing the cost by $32 per For bids based on stick-built construction, building a house in the city was square foot. The average cost savings for a 20-foot-wide rowhome using estimated 16-ft.-wide home in city $37,000 20-ft.-wide home in city of an identical to cost an average of more than the building modular construction in Philadelphia were 9 percent, reducing the cost by house in the suburbs. For bids based on modular-construction methods for $12 per square foot. building the same homes, the cost of the boxes was identical between city and suburb, but the on-site finish costs were an average of $24,000 higher in Philadelphia. This price difference puts Philadelphia at a significant regional disadvantage in terms of attracting residents who prefer new homes. $250,000 20 mod $218,534 $200,000 20 stick $200,016 $199,702 16 mod Construction Costs $159,090 $150,000 16 Stick $100,000 Stick-built Modular Stick-built Modular 16-FT.-WIDE 16-FT.-WIDE STICK BUILT MODULAR $50,000 $200,016 CONSTRUCTION COSTS 0 16-ft.-wide home in city 20-ft.-wide home in city $164,213 $159,090 $135,696 Modular Modular saves saves 20% 9% 250000 CITY 16sub SUBURBS CITY SUBURBS 16-ft.-wide stick built 16-ft.-wide modular 200000 16city $200,016 16 suburb $164,213 $159,090 150000 16 City $130,411 Suburban 100000 Construction Cost is 18% 50000 lower for Both stick-built and 0 CITY SUBURBS CITY SUBURBS modular homes City Stick Built City Modular Construction STICK MOD STICK MOD Construction Costs Costs More than Suburbs More than Suburbs (even with identical costs $180,496 $180,939 for modular box) ONSTRUCTION COSTS $173,939 $164,213 $130,411 $135,698 16 200000
- 17. STICK MOD STICK $180,496 MOD $180,939 5 High finish costs charged by contractors lacking modular-construction experience or CONSTRUCTION COSTS $173,939 $164,213 by those who prefer stick-built construction $130,411 $135,698 can significantly reduce modular construction’s cost efficiencies. At present, many union contractors in Philadelphia are not motivated to give good prices for finish and set work. Others are carving out this market niche 16-ft.-wide suburban home 16 ft wide suburban home 20 ft wide suburban home for themselves with the understanding that participating in more projects 20-ft.-wide suburban home makes good sense, even if their role in each is smaller. As the New Kensington Community Development Corporation wrote in 2008, “the initial costs savings produced by modular construction may be reduced by an increase in labor expenses” when union laborers complete finish work. Several building industry Modular Minimal members interviewed said that union contractors have bid well over 25 percent saves 17% Savings with of project cost to finish the house on the site. We found this to be the case, modular in the In the Suburbs suburbs though estimated finish costs differed substantially from firm to firm. The lowest bid to finish a 16-foot-wide modular home was $44,045. The highest to finish the same home was $115,324—a rather startling difference in estimated price 3 to connect utilities, attach the facade and complete a home that had so far costed $71,279. There are ways to reduce the cost of finishing a modular home; M odular only provides cost savings in one developer told us that he uses his first modular unit on every project as a the suburbs when a single modular box test case. Whenever the plumbing or electrical contractors identify a component is used per floor. that raises finish costs, he has these components changed on later versions of the unit coming out of the factory.23 This study found that modular’s primary cost benefits come from reducing labor costs, and in the suburbs labor costs are already competitive. That said, if a 16-foot-wide townhouse were a viable product in the suburbs, there would be substantial savings of more than 17 percent compared to the “ ne of the biggest challenges to the integration O cost of stick-built construction. The reality, however, is that a 16 x 40-foot house of prefab and modular by CDCs [Community is too small to be attractive in current suburban markets. For the 20-foot-wide Development Corporations] and housing agencies is house no savings were achieved from using modular-construction techniques, related to perceived union labor issues. The reduction according to the cost comparison.22 of work completed on site may threaten union workers, although should not be a deal-breaker.” 4 The weeHouse - Modular Housing for Kensington, New Kensington Community The four contractors’ bids differed significantly Development Corporation (2009) for both stick-built and modular construction. The estimated prices in their bids to build the same house using the same construction method differed in some cases by over $80,000. (See bids on pages 14 to 15 and 38 to 45.) Several developers interviewed for this report said that they find significant price differences to be typical when they solicit bids. This makes it extremely important for any new homeowner or nonprofit or for-profit developer to shop around to obtain the most competitive price. Cost Comparison | 17
- 18. Modular construction can also offer additional savings in areas that were not captured by our cost comparison. $$$$$ Modular costs are fixed. The risk of extra charges, backcharges and surprise costs is typically eliminated in modular construction because a detailed contract is developed between the general contractor or developer and the manufacturer. One local developer who has bought modular boxes and accompanying services for eight or Construction financing costs and other nine years reports that he has never had a backcharge or a surprise cost.26 soft costs are lower. Developers also noted that it is important to carefully negotiate the terms of the contract between the manufacturer and the general contractor or developer. Construction financing is lower for modular because the construction cycle Standard modular contracts tend to ask for high deposits and initial payments, time is 50 percent or less of the time required to construct a stick-built home. but developers report that negotiated terms have allowed them to pay This shorter financing period results in lower financing costs and fewer draws 80 percent or more of the total cost after the boxes were built and set. from the bank, as higher-interest construction loans can be converted into final mortgages within weeks rather than months. Builders’ risk insurance can be Modular units can be paid for as needed. lower, as well, due to the shortened construction timeframe.24 Once plans are completed, a developer can order a few modular units at a Overhead is lower. time and set them as they sell, committing to each group of units as the market allows rather than building an entire project and hoping sales will occur. It is For the developer using modular-construction methods, site supervision is less important to note, however, that starting and stopping construction repeatedly intensive for the period before the box is delivered, and this saves money.25 will entail additional cost. Modular may also reduce staffing needs. For instance, the site may not require a full-time accountant to pay regular bills, since 60 to 70 percent of the bills are taken care of in a single payment to the modular manufacturer. Finally, architect fees may be reduced because, when working in partnership with a modular manufacturer, the home’s architect will create the layout and design for the house, but the factory’s staff will produce the drawings and wall sections, and then review them with the architect to fully document the final product. 18
- 19. 90 90 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Speed Sustainability $218,534 $250,000 $21 $200,000 In a city of high-cost construction, cost is the key factor when $200,016 $199,702 $200,016 $159,090 $150,000 $159,090 choosing between the two construction methods. But other important $100,000 advantages and disadvantages to modular-construction methods can $50,000 also be considered by nonprofit and for-profit developers. 0 16-ft.-wide home in city 20-ft.-wide home in city 16-ft.-wide home in city 20 Stick-built construction provides greater Modular versus Stick-Built Construction: design flexibility. Which Delivers? Architects who have used both modular and stick built attest to the fact that 250000 using stick-built construction methods allows them to imagine and create any 16-ft.-wide stick built 16-ft.-wide modular 16-ft.-wide stick built 16-f style of home. Modular housing, made up of rectangular units, does not allow for Modular Stick Built 200000 $200,016 Design Flexibility $200,016 3 the same level of creativity from the ground up.27 Factories will customize home Speed $164,213 3 $159,090 $164,213 150000 $1 designs in accordance with architectural plans, but to achieve savings through Value over time 3 $130,411 3 the use of modular, the plans must stick fairly closely to traditional floor plans. Theft reduction 3 100000 Durability 3 50000 Modular construction delivers speed. Environmental Benefits 3 Familiarity 3 0 Modular projects typically go up in one-third to one-half of the time it takes to CITY SUBURBS CITY SUBURBS CITY SUBURBS CIT Local Workforce 3 complete a stick-built home, regardless of location. One developer who has TransportationStick Built City Costs City Modular Construction City Stick Built 3 built in Philadelphia using both methods stated that in his experience, modular Construction Costs Costs More than Suburbs Construction Costs More than Suburbs (even with identical costs More than Suburbs saves two months off the time it would take to build a stick-built house.28 In part, for modular box) this time savings is explained by the assembly-line mode of building, which is unaffected by weather delays.29 When there is high demand for new homes, as Modular homes have the same or greater durability. occurred from 2005 to 2008, the ability to construct them more quickly allows Modular construction uses more materials than stick-built construction: several developers to keep up with demand and quickly meet customers’ needs. 200000 manufacturers estimate that anywhere from 10 to $199,702 more materials $218,534 25 percent $2 $200,016 $200,016 are used in a modular home in order to make it strong enough for highway Modular homes’ appraisals, financing, insurance, transport. For example, 2 x 6 lumber is typically used to build a modular $159,090 home 150000 $159,090 rents, appreciation and resale values are similar to instead of 2 x 4 lumber, which is standard for stick built. This offers greater 100000 those of stick-built homes. strength as well as two extra inches of insulation.31 Drywall and sheathing are A well-built modular home will have the same longevity as its stick-built both nailed and glued to every framing member on a modular box in order to 50000 counterpart, increasing in value over time.30 allow it to withstand shipping, which includes the potential for exposure to high winds, as well as the box being lifted by a crane.32 After Hurricane Andrew 0 hit in 1992, FEMA’ssuburban home 16-ft.-wide Mitigation Assessment Team conducted a16-ft.-wide see 20-ft.-wide suburban home study to suburban home 20-f Modular construction lowers the risk of Modular saves 20% how various building types 20% Modular saves weathered the storm.provides Modular The team concluded that theft and vandalism. only limited savings “overall, relatively minimal structural damage was noted in modular housing Developers report lower rates of theft and vandalism on modular sites, developments. The module-to-module combination of the units appears to since fewer materials need to be stored on site. Also, modular houses have provided an inherently rigid system that performed much better than can be locked and secured as soon as they are put into place on the conventional residential framing.”33 building site. Speed and Sustainability | 19
- 20. City of Philadelphia development-review More local workers are employed to agencies are comfortable with modular and construct stick-built housing. stick-built construction. Modular manufacturing employs its labor at the factory. At this time, there Although many building industry leaders mentioned that in years past, are no modular factories located in Philadelphia; therefore, the jobs will not inspectors were uncomfortable with modular construction, all agreed that be located in Philadelphia. There is no available data that shows how many today, the city inspectors and plan examiners are equally confident with both Philadelphians are employed in nearby modular factories. However, a 2009 construction methods. The one difference in how the homes are examined is mayoral report looking at local and minority participation in construction that modular homes must pass rigorous inspection at two points in the process. found that a substantial number of construction workers in the city are not The first takes place in the factory, where third-party inspectors inspect and Philadelphia residents.36 If more builders chose modular housing methods, it approve the manufacturing process and the construction of each unit. The would create an inducement for factories to open in or near the city—helping second occurs when city inspectors inspect the home once it has been set Philadelphia to create new jobs and to achieve many of its sustainability and finished. Because the modular sections are inspected and certified in the objectives by reducing the carbon footprint of home construction.37 factory, less city inspector time must be dedicated to ensuring their quality and safety. City inspectors are able to limit their inspection to checking the Modular construction requires the hiring of foundation, the joining of modular units and party walls, any final installation a general contractor, just like stick-built does, of siding or roofing, and site utility connections. to avoid issues regarding liability. Leaders of Philadelphia CDCs have reported that when considering modular Transportation of modular units requires construction, liability is a major concern. Their fear is that the modular skill and knowledge. manufacturer will not be considered liable for building defects that might be Modular construction requires the modular manufacturer or developer to said to have occurred during set and finish. Nationally, there are reports of evaluate whether road conditions, highways, bridge heights, street widths conflicts between the manufacturer and the on-site builder, with both trying to and other factors will permit transport of the large boxes to the building site. shift legal responsibility onto the other.38 The solution, and the general practice Modular builders who were interviewed had very different perceptions about in many communities, is to hire a general contractor who will buy the box, set the ease of obtaining permits to move the modular units through traffic: while and finish it and take on liability for any failure, regardless of whether they some said that it involves numerous government agencies and large amounts of intend to seek compensation from the manufacturer.39 paperwork, others who are accustomed to government paperwork reported that the transportation permitting process is nothing unusual.34 Some developers voiced concern that truck and crane access is not feasible on urban in-fill lots, while others have brought in cranes even on small lots off of narrow Philadelphia alleys.35 “ T]here are . . . several basic principles intrinsic to the modular-construction process [ that make it more eco-friendly than conventional construction. They spend significantly less on-site time . . . which notably minimizes the overall impact on a site. And . . . modular-construction methods and materials allow a building to be more readily “deconstructed” and moved to another location should the need arise, so complete building reuse or recycling is an integral part of the design technology.” “ xternal Issues and Trends Affecting Architects, Architectural Firms, and the AIA,” American Institute of Architects, February 2008 E http://www.aia.org/aiaucmp/groups/aia/documents/pdf/aiab046303.pdf 20
- 21. Experts agree that a home built using either stick-built or modular construction can be environmentally sustainable and energy efficient. There are some green features that favor modular.40 Modular building provides shorter site disturbance during the Modular building is more easily deconstructed and the materials are construction process.41 The modular structure is constructed off site more easily reused.43 If the need for a modular home on a particular site simultaneously with foundation and other site work, thereby reducing disappears, the modular building can be disassembled and the modules the time and impact on the surrounding site and reducing the number relocated or refurbished for their next use. The entire building can be of vehicles and equipment needed at the site. Completing construction recycled, in some cases. in a far shorter time offers significant benefits to the community, as well. Neighbors experience fewer trucks, less noise and minimal dust and Modular construction presents fewer indoor air-quality issues due debris compared to stick built. to less material exposure to inclement weather. Because the modular structure is substantially completed in a factory-controlled setting using Modular can create a more uniformly airtight building. With site-built dry materials, the potential for high levels of moisture being trapped in the construction, the wood expands and contracts as it is being built, which new construction is eliminated, and the home is less prone to mold. This may affect the feasibility of creating an airtight structure. In addition, advantage is lost if the modular units are stored outdoors at the factory some experts have found that the delegation of the work to different after completion, or left sitting in the rain on site for days before being subtrades may cause similar problems: for instance, a worker may set or finished.44 inadvertently tear holes in a vapor barrier on the inside of a wall designed to prevent moisture damage.42 This is far less likely to happen in the indoor environment of a factory, where a single team works full time together on the houses. To achieve airtightness, however, a modular home must be accurately set and sealed, and whether this is accomplished effectively depends on the experience and skills of the crew involved. Speed and Sustainability || 21 21
- 22. Recommendations Educate developers, contractors and potential owners Attract a modular factory to the city or near its about modular single-family construction. borders to further reduce the costs of modular. Builders of single family homes have been slow to adopt new technical Modular builders in the state are currently limited to shipping boxes no wider approaches to construction or to use innovative products. As the New than 16 feet on state highways. One builder has found a way around these Kensington Community Development Corporation (NKCDC) found in 2008, restrictions in New York City—by shipping exclusively on local roads and “[T]here is a general lack of knowledge within the Philadelphia development obtaining an agreement with the city that allows the transportation of wider community with regard to modular construction. At present, inexperience is boxes. New York City, in order to bring down the cost of constructing affordable a primary limitation to developing, building and investing in this method.” 45 housing, has authorized the shipping of 18- and 20-foot-wide boxes on local roads between midnight and 4:00 a.m. This allows for larger homes to be built The When We Fix It Coalition, the Building Industry Association and other key using a single box.46 players in new construction should provide a series of trainings and open houses to educate building professionals about modular construction. Architects, Capsys Corporation, located in the Brooklyn Navy Yard, transports modules of contractors and builders need good information well in advance of their next 20 feet wide and up to 45 feet long in the early morning hours on local roads. residential new construction project in order to select the most appropriate Capsys has found that the 20-foot width of the modules allows just one module construction method. The current building slump provides the perfect to constitute a single floor and reduces the number of plumbing, heating and opportunity to get builders in a room and familiarize them with the benefits electrical connections that must be made in the on-site finish process. Capsys of new technologies. obtains permits through the New York City Department of Transportation, and the city provides a police escort; the streets are not closed. Engineers hired by Capsys are responsible for performing thorough surveys of the entire transport route in advance and submitting them to the city. As modular construction takes over a greater percentage of total building in the city, Philadelphia certainly could offer the same arrangement to a new or existing local modular company in order to lower costs further. Having a manufacturer in or nearer to Philadelphia’s borders would allow for the training and hiring of more Philadelphia workers, particularly minority workers, who currently are underrepresented on union construction-site crews. 22
- 23. Conclusion Too often, Philadelphia fails to keep and attract residents and businesses because of regionally uncompetitive taxes, costs and fees. In the residential construction area, high labor costs that are 18 percent above the national average raise the cost of building a new home in the city by more than $35,000 over the cost of an identical stick-built house in the suburbs. This higher cost presents a tremendous obstacle to building affordable and middle-class housing in the city for residents, refreshing Philadelphia’s aging housing stock and redeveloping abandoned land. After decades of fruitless efforts to lower the cost of union housing-construction labor to a competitive level, this report looks to technology to help make new, single-family-home construction viable in the city without the need of substantial subsidy by the city, state or federal governments. The analysis provided in this report shows conclusively that the cost to build single-family homes can be meaningfully reduced by using modular construction. Savings of 20 cents or 9 cents on the dollar are not sufficient to close the market gap between the high cost to build in Philadelphia and the city’s low market values, but these savings do offer substantial help in making new housing construction viable in the city of Philadelphia. Recommendations | 23
- 24. Appendix METHODOLOGY Many factors contribute to the cost of building a house, including land, Matt Koenig at JKR Partners LLC in Philadelphia furnished architectural site development, labor, materials, utility hook-ups, permits and all the plans and specifications for the two house designs. (These are included overhead costs of equipping and operating a building company. The goals in the Architectural Plans section of the appendix.) The 16-foot-wide for this analysis are to keep as many of these factors as constant as and 20-foot-wide homes were designed to be attractive, functional possible and to determine whether the cost of construction of an identical and affordable. Both home designs offer a two-floor home with a house on an identical site varies significantly depending upon whether brick facade. Each contains a full-service kitchen, three bedrooms, modular or stick-built construction methods are used. one bathroom and an optional powder room. In addition to the plans, each contractor received elevations, site details, a materials list and The coalition hired AMC Delancey Group, Inc. and RMR Real Estate a narrative description. Advisors, Inc. as consultants to obtain accurate, objective cost estimates for each aspect of building a house with either stick-built or modular The bids assumed that 12 houses would be built, allowing the product construction. AMC Delancey Group and RMR Real Estate Advisors selected to benefit from some economies of scale. Contractors were told that four contractors based upon their past work in residential construction their bids should reflect the customary use of union labor in the city and their reputation for reasonable pricing that reflects the general of Philadelphia. market. AMC Delancey Group and RMR Real Estate Advisors issued an RFI requesting cost estimates in writing as part of a complete bid package. Each of the four contractors furnished bids for constructing one rowhome/ Contractors were informed that their bids would be used for the purposes townhouse that was 16 feet wide and one that was 20 feet wide using of a study but were strongly encouraged to provide the most accurate stick-build construction and the same using modular methods. Three pricing possible due to the report’s audience. Initially, two firms were contractors provided bids for both a suburban and an urban location. asked to bid for each location and type of construction. This created a One did not provide cost estimates for the suburban location due to significant range of prices. In October and November 2009, two additional a lack of past experience in the suburbs. For the purpose of this study, building firms were asked to respond to the identical RFI in order to offer a the suburban and urban locations were assumed to be identical. fuller representation of the range of prices for constructing a home using the two methods. 24
- 25. Specifically, the scope asserted the following assumptions: Each contractor received a cost-breakdown sheet and a qualifications form in order to provide a detailed cost estimate for each aspect of construction 1. he urban and suburban sites are identical in size, dimensions and T of the homes. The same sheet needed to be completed for each house configuration. at each location using modular and stick-built methods. (See the Cost 2. ll utilities are immediately available to the site, with no off-site A Breakdown Sheet in the appendix.) requirements for infrastructure improvements. For modular construction, two price estimates were obtained from local 3. ites do not require any demolition and are flat, and the indigenous S modular firms for the box or boxes, and these prices included the cost to soil is suitable for foundations and backfill. There are no underground set the boxes on the permanent foundation at the site. Neither of the two obstructions or contaminants in the soil, with no requirements for modular manufacturers used for the purposes of this study were union export or import or any soil exchange. There are no sheeting, shoring shops. The contractor was responsible for “finishing” the house. Contractor or underpinning requirements for adjacent roads or structures. finishing obligations were spelled out in the scope as follows: a. Exterior siding and trim 4. he sites are accessible to all construction activities, with no T b. Foundations, basements and waterproofing requirements for off-site staging, special permits for access into c. Gutters and downspouts the site or street/sidewalk closure permits. d. Utility extensions and connections to public service 5. n order to avoid urban versus suburban charges for utility company I e. Exterior painting backcharges, water and sewer connection permits, wastewater f. Site work, landscaping and exterior pavements discharge permits, etcetera, estimates will be predicated on not including these fees. In order to provide a single cost number for the construction of a modular home, the cost of the box and set were added to the finish costs. The costs 5. ontractor shall assume houses front on existing public streets, with no C cited in this report do not include site work.47 requirement to repair/replace front sidewalks, and shall assume surface parking for two vehicles immediately behind the home, with connecting sidewalk. Contractor shall use a landscape/hardscape allowance of All questions posed by contractors were answered in a written supplement $2500 per home. to the RFI in order to assure that each contractor’s bids were based upon the same assumptions regarding design specifications, materials and code 6. he bid is for an interior attached house unit. Contractors are asked to T compliance. (See the Request for Information Supplement, page 37, in the estimate separately the added cost to build an end unit. appendix.) APPENDIX | 25
- 26. Appendix Request for Information (RFI) Request for Information (RFI) 1. Background/Introduction: About the BIA of Philadelphia 4. RFI Response Instructions Established in 1937, the Building Industry Association of Philadelphia has Contractors should review the RFI and use best efforts to diligently base become a leader in the real-estate development industry by addressing their responses on the information provided. When responding, Contractors significant business-related issues. The BIA of Philadelphia is recognized must utilize the format provided in Attachment 3 in the RFI documents and as the leading organization in its industry for providing local and regional exercise care in furnishing all information requested in the particular format information and advice from policy makers and elected officials. Many BIA requirements. Responses are due to Paul J. Commito of AMC Delancey members hold positions of influence on various boards and commissions, and Group, Inc. via email at “[email protected]” not later than others have been deeply involved in helping to craft policies in the city 5:00 pm (EDT) on 25 September 2009. Late responses, failure to use the of Philadelphia. requested format, and incomplete information may render the Contractor’s response “Non-Responsive.”Attachments 1 to 3 are provided to assist Objectives of this study directly coincide with many ongoing goals of the BIA: Contractors in developing their response. • ducating members through reports addressing important industry E topics as well as sponsoring forums, including the BIA’s Annual Housing 5. Milestone Schedule Conference The table below reflects the milestone schedule. Contractors should note that • orking with the housing agencies and neighborhood Community W this schedule is subject to change upon prior written notice. Development Corporations to promote skilled and competent minority Event Target Completion Date workers Release of RFI Package 8 September 2009 • ducating BIA members and members of city government about the E benefits of sustainable building techniques and practices Receipt of Contractor Responses 25 September 2009 • xpanding the market for all housing, paying particular attention to policies E Analysis of Contractor Responses 6 October 2009 that promote middle-income housing Internal Distribution of Data Compilation 13 October 2009 • romoting housing affordability by reducing construction costs P Draft Report 20 October 2009 • orking with city government and agencies to remove barriers to W Final Report 30 October 2009 re-investment in the neighborhoods 2. Glossary of Terms and Definitions 6. Disclaimer This RFI does not constitute a solicitation for proposals or the authority to Client: NeighborhoodsNow and/or the Building Industry Association of enter into negotiations to award any contract. This RFI is for research and Philadelphia (“BIA”). reporting purposes only and shall not be considered as a request for proposal Consultant: of the following consulting entities participating in the Any or as an obligation on the part of the Client or Consultant to acquire any research and development of this RFI and ultimate reports products or services. Unless specifically agreed upon to the contrary, no to Client: AMC Delancey Group, Inc.; JKR Partners; May 8 entitlement to payment of direct or indirect costs or charges by the Client Consulting; and RMR Real Estate Advisors. or Consultant will arise as a result of Contractor submission of responses to this RFI or the use of such information by Client or Consultant. Responses to Contractor: of the general contractors, construction managers or Any this RFI will not be returned. Whatever information is provided in response modular housing manufacturers responding to this RFI. to this RFI may be used to assess tradeoffs and alternatives available for Report: draft or final report emanating from Consultant related to Any determining the contents of any reports produced based wholly or in part on this RFI. the information furnished. Any data, material and the like, in whole or in part, that is submitted may be used as part of any private or public dissemination RFI: Request for Information (‘RFI”) comprising this document, The of information, but specific Contractor submitted documentation will be along with all attachments and exhibits. safeguarded as proprietary. By the Contractor submitting a response to this RFI, Contractor agrees to the use of its company name in any draft or final 3. Purpose and Objectives reports generated by the Client or Consultant. Consultant is currently conducting market research for Client. This RFI is part of this market research effort. This RFI requests industry input on a number of 7. Attachments topics and issues that are reflected in Attachment 1. Consultant will use the information collected to develop a report or reports to be potentially released A. Narrative Description of Scope of Study in the near future to Client and/or the public. B. Plans and Specifications C. Response Format / Cost Breakdown Sheet and Qualifications 26
- 27. Scope of Study Narrative Description of Scope of Study Cost Comparison of Site-Built and Modular Construction The goal of this study is to obtain accurate, objective cost estimates 7. Consultant will determine average absolute pricing and pricing per for each aspect of building a townhome as either site-built or modular square foot for the two product types in both environments. Consultant construction. AMC Delancey Group, Inc. and RMR Real Estate Advisors, will provide an analysis of what aspects or stages of the construction Inc. (Consultant) will obtain cost estimates in writing as part of a complete process caused the differences in pricing. bid package. Contractors asked to bid will be selected based upon past work in residential construction and a reputation for reasonable pricing 8. Consultant will ask for bids with the understanding that it will be that reflects the general market. used for purposes of a BIA study, but contractors will be strongly encouraged to provide the most accurate pricing reasonably feasible 1. onsultant will describe two generic sites—one urban, one suburban. C due to the report’s audience and potential real benefits to the The goal is to ensure that both the urban and suburban sites share contractors via public relations. basic attributes and do not provide any unique challenges that would raise the cost to build at either location. Consultant will provide May 9. Final bids and analysis will be provided to May 8 Consulting no later 8 Consulting with the generic descriptions of these sites for the than October 13, 2009. purposes of writing the report and will furnish the same description to the contractors asked to bid. 2. onsultant will identify two (2) union and two (2) non-union contractors C for each site, each of whom would bid as both stick-built and for finishing the boxes. Consultant will identify two modular manufacturers to bid on providing a 16-ft.-wide and 20-ft.-wide box for the two locations. The designs for these homes will be based on a 16-ft. and 20-ft. home design by JKR Partners. Consultant will work with Matt Koenig at JKR Partners to ensure specifications are complete for these two home designs. 3. onsultant will request bids and will ensure that they have at least two C complete and credible bids for each size home and for each mode of construction for the urban and suburban locations. Consultant will request bids from contractors for the same two home designs for generic sites in the city and suburbs. Consultant will provide May 8 Consulting with the plans and specifications, which will be furnished to the contractors asked to bid. 4. ased on general industry practices, it will be assumed that union B labor must be used in the city of Philadelphia and non-union labor will be used at the suburban location. 5. onsultants will receive the bids by September 25 and provide C analysis of the bids by October 6, 2009. 6. onsultant will perform a de-scoping and valuation analysis to make C certain that a “level playing field” is established and “apples to apples” estimates are being utilized. Where bids are incomplete and consultants must obtain supplemental information by phone, accurate notes of these conversations will be kept and will be used to provide footnotes to the information to ensure continuity and accuracy. Appendix | 27
- 28. 28 Design Specifications, Architectural Plans 16-Ft. Unit Plan Appendix
- 29. Appendix | 29
- 30. 30 Design Specifications, Architectural Plans 16-Ft. Unit Plan Appendix
- 31. Appendix | 31
- 32. 32 Design Specifications, Architectural Plans 20-Ft. Unit Plan Appendix
- 33. Appendix | 33
- 34. 34 Design Specifications, Architectural Plans 20-Ft. Unit Plan Appendix
- 35. Appendix | 35
- 36. Appendix Cost Breakdown Sheet COST BREAKDOWN Generic Site Description i. General Conditions $________________________ Construction estimates shall be based on the following set ii. Site Improvements $________________________ of assumptions for site improvements: iii. Foundation Work $________________________ 1. he urban and suburban sites are identical in size, T iv. Masonry Work $________________________ dimensions, and configuration. v. Framing Rough Carpentry $________________________ 2. ll utilities are immediately available to the site, with no A vi. Exterior Siding $________________________ off-site requirements for infrastructure improvements. vii. Roofing $________________________ 3. ites do not require any demolition and are flat, and the S indigenous soil is suitable for foundations and backfill. viii. Doors Windows $________________________ There are no underground obstructions or contaminants in ix. Interior Finishes the soil, with no requirements for export, import, or any soil 1. Drywall Paint ________________ exchange. There are no sheeting, shoring, or underpinning 2. Trim ________________ requirements for adjacent roads or structures. 3. Flooring ________________ 4. he sites are accessible to all construction activities, with T 4. Cabinets Countertops ________________ no requirements for off-site staging, special permits for access into the site or street/sidewalk closure permits. 5. Appliances ________________ 5. n order to avoid urban versus suburban charges for I 6. Other ________________ utility company backcharges, water and sewer connection Sub-Total Finishes $_________________________ permits, wastewater discharge permits, etc., estimates x. Sprinklers (Complete) $_________________________ will be predicated on not including these fees. xi. Plumbing Work (Complete) $_________________________ 6. ontractor shall assume townhomes front on existing C xii. HVAC Work (Complete) $_________________________ public streets, with no requirement to repair/replace xiii. Electrical Work (Complete) $_________________________ front sidewalks; and shall assume surface parking for two vehicles immediately behind the townhome, with TOTAL $_________________________ connecting sidewalk. Contractor shall use a landscape/ hardscape allowance of $2500 per home. Vertical Construction Construction estimates shall be based on the following set of 5. modular applications, Contractor obligations shall be as follows: On assumptions for vertical construction: a. Exterior siding and trim 1. Contractor must use the same sheet for both site-built and modular b. Foundations, basements, and waterproofing construction cost breakdowns. c. Gutters and downspouts d. Utility extensions and connections to public service 2. facilitate analysis, the plans have been drafted with a modular To e. Exterior painting orientation. However, for site-built applications, Contractor is encouraged f. Site work, landscaping and exterior pavements to make normal and customary changes (2x4 framing v. 2x6; substitute standard mate-wall construction detail; etc.) provided Contractor 6. Other than Item 5 above, Contractor shall assume that modular documents such change(s) and resulting cost impact (i.e., deduct manufacturer will deliver, set, and make all inter-modular connections. alternate of $XXX.xx). However, Contractor shall provide on this qualifications sheet break-out pricing for the following: 3. Contractor shall price parapet and fiberglass cornice as an “Add Alternate.” Standard shall be termination of brick soldier Delivery of Modular Units $_________________________ course at cornice with typical metal coping. Setting of Modular Units $_________________________ 4. Contractor shall use side elevation with brick (see 3/A2.1) for Crane Service $_________________________ standard pricing and provide “Deduct Alternates” for both stucco and vinyl side elevations. Inter-Modular Connections $_________________________ 36
- 37. Request for Information Supplement RFI for BIA Study 6. Q: Is the attic required to receive a dry sprinkler system? Follow-Up Clarifications A: Please price base house without sprinkler system and provide 1. Q: What is the HVAC scope desired for these units? an add alternate for sprinkler, but do not include sprinkler in A: VAC is design-build based on typical workforce housing H the attic or interstitial space of the home. specification: single zone, air-to-air split system, with gas- 7. Q: Please confirm the exterior walls are to have a fired heating and electric cooling. 1-hour fire rating. 2. Q: Should we factor in an economy of scale in our pricing? A: Correct. A: es—assume 6 units for each product type of 16’ and 20’ Y 8. Q: Please provide the demising partition rating/design for the wide townhomes. unit demising wall. 3. Q: Are we to price a single end unit or a middle unit? A: 1-hour for the entire demising wall assembly. A: lease price interior unit and provide the additional cost for P 9. Q: For the foundation walls, please confirm we can substitute the end unit. concrete in lieu of masonry. 4. Q: re we to assume all floor to be wood as no carpet is A A: es, feel free to substitute concrete in lieu of masonry, Y specified, except at the powder room? whichever is more economical. A: lease assume carpeting in bedrooms, and carry $15/yd. P for material only. As a supplement to the RFI, please provide the time difference, 5. Q: lease confirm for the roofing that we should use the P in weeks, for site-built versus modular construction, assuming no single ply membrane and not the shingle product noted. delays under either scenario due to weather, lack of availability of A: ue to flat roof, you may use single ply membrane, D materials, and all subcontractors, vendors, and material suppliers modified bitumen, or other roofing system appropriate to hitting their schedules. these roofing conditions. Appendix | 37
- 38. Appendix Bids/Responses to RFIs 16’ SITE BUILT - URBAN Bid 1 Bid 2 Bid 3 Bid 4 General Conditions 23,449 44,349 17,190 31,773 Foundation Work 9,232 46,254 16,427 9,647 Masonry Work 25,899 in 3 above 7,250 21,744 Framing Rough Carpentry 34,485 77,550 18,500 41,542 Exterior Siding 1,315 2,000 1,500 1,900 Roofing 4,714 5,440 3,250 4,694 Doors Windows 2,288 6,930 9,207 6,635 Interior Finishes Drywall Paint 19,326 20,708 14,330 13,438 Trim 8,870 2,650 7,586 2,146 Flooring 11,017 6,330 9,120 6,013 Cabinets/Countertops 3,278 4,350 9,975 5,065 Appliances 3,272 3,680 4,165 2,650 Other 151 935 3,500 545 Sprinklers 0 0 Plumbing Work 21,376 12,580 6,963 9,375 HVAC Work 18,087 13,600 9,750 9,000 Electrical Work 13,483 11,800 5,375 13,038 Fee incl. incl. 12,111 incl. TOTAL 214,734 293,806 163,499 205,892 Total Adjustments* 5,261 0 0 0 TOTAL w/out Site Work 205,503 259,156 156,199 179,205 Per Square Foot Cost 172 230 128 161 Site Improvements 14,492 34,650 7,300 26,687 TOTAL with Site Work 219,995 293,806 163,499 205,892 Per Square Foot Cost 161 202 122 140 Add/Deduct Alternates Add Sprinkler 4,800 2,672 3,800 Add Parapet Fiberglass Cornice Detail 4,300 4,275 2,585 Change from interior unit to end unit 37,833 30,000 16,232 20,000 Delete brick exterior side elevation, replace w/ Stucco -9,100 Delete brick exterior side elevation, replace w/ Vinyl -10,900 * After the written bid was submitted, a cost adjustment was made by this bidder based on an improved understanding of the scope requirements. 38
- 39. 20’ SITE BUILT - URBAN Bid 1 Bid 2 Bid 3 Bid 4 General Conditions 23,449 45,313 17,190 31,773 Foundation Work 9,969 50,451 19,810 11,237 Masonry Work 31,233 in 3 above 8,765 24,660 Framing Rough Carpentry 36,339 83,920 20,750 48,150 Exterior Siding 1,644 2,400 1,750 2,200 Roofing 5,591 3,508 4,188 5,470 Doors Windows 2,288 6,930 9,203 6,635 Interior Finishes - Drywall Paint 21,518 21,700 18,053 14,831 Trim 9,188 2,700 8,250 2,291 Flooring 13,730 7,650 11,400 7,763 Cabinets Countertops 3,934 4,350 11,850 5,975 Appliances 3,272 3,680 4,165 2,650 Other 151 935 3,500 545 Sprinklers - - 0 0 Plumbing Work 21,376 12,580 6,963 9,450 HVAC Work 18,087 14,100 14,625 9,000 Electrical Work 13,703 12,600 5,738 14,510 Fee incl. incl. 13,922 incl. TOTAL 229,964 311,119 187,947 224,601 Total Adjustments* 5,481 0 0 0 TOTAL w/out Site Work 220,953 275,919 180,122 197,140 Per Square Foot Cost 138 172 113 123 Site Improvements 14,492 35,200 7,825 27,461 TOTAL with Site Work 235,445 311,119 187,947 224,601 Per Square Foot Cost 147 194 117 140 Add/Deduct Alternates Add Sprinkler 4,800 3,980 4,800 Add Parapet Fiberglass Cornice Detail 5,100 4,575 2,750 Change from interior unit to end unit 37,833 30,000 16,232 20,000 Delete brick exterior side elevation, replace w/ Stucco -9,100 -7,385 Delete brick exterior side elevation, replace w/ Vinyl -10,900 -8,846 * After the written bid was submitted, a cost adjustment was made by this bidder based on an improved understanding of the scope requirements. Appendix | 39
- 40. Appendix Bids/Responses to RFIs 16’ SITE BUILT - Bid 1* Bid 2 Bid 3 Bid 4 SUBURBAN No Site General Conditions NA 40,816 15,590 24,853 Foundation Work NA 33,923 14,814 7,885 Masonry Work NA in 3 above 6,300 15,280 Framing Rough Carpentry NA 63,890 16,500 34,246 Exterior Siding NA 1,350 1,120 1,750 Roofing NA 3,540 3,000 4,262 Doors Windows NA 6,930 8,828 5,910 Interior Finishes Drywall Paint NA 12,986 12,805 9,970 Trim NA 2,650 6,586 1,924 Flooring NA 4,675 8,320 5,375 Cabinets Countertops NA 4,350 9,450 4,605 Appliances NA 3,680 4,165 2,650 Other NA 935 3,000 545 Sprinklers NA - 0 0 Plumbing Work NA 8,500 6,490 7,525 HVAC Work NA 8,700 9,000 7,200 Electrical Work NA 9,120 4,725 10,945 Fee NA - 10,975 incl. TOTAL NA 230,315 148,168 169,075 Total Adjustments NA 0 0 0 TOTAL w/out Site Work NA 206,045 141,668 144,925 Per Square Foot Cost NA 161 111 113 Site Improvements NA 24,270 6,500 24,150 TOTAL with Site Work NA 230,315 148,168 169,075 Per Square Foot Cost NA 180 116 132 Add/Deduct Alternates Add Sprinkler NA 4,800 2,244 2,850 Add Parapet Fiberglass Cornice Detail NA 3,200 3,800 2,200 Change from interior unit to end unit NA 21,600 14,428 15,200 Delete brick exterior side elevation, replace w/ Stucco NA - -8,800 -8,353 Delete brick exterior side elevation, replace w/ Vinyl NA - -10,350 -9,824 *Contractor 1 declined to provide bids for suburban locations. 40
- 41. BUILT - 20’ SITE Bid 1* Bid 2 Bid 3 Bid 4 SUBURBAN No Site General Conditions NA 41,506 15,590 24,853 Foundation Work NA 37,011 17,815 9,213 Masonry Work NA in 3 above 8,000 17,420 Framing Rough Carpentry NA 68,510 18,500 39,556 Exterior Siding NA 1,600 1,400 2,020 Roofing NA 4,150 3,850 4,950 Doors Windows NA 6,930 8,828 5,910 Interior Finishes Drywall Paint NA 14,427 16,082 10,966 Trim NA 2,700 7,200 2,049 Flooring NA 5,585 10,400 6,938 Cabinets Countertops NA 4,350 11,250 5,425 Appliances NA 3,680 4,165 2,650 Other NA 935 3,000 545 Sprinklers NA - 0 0 Plumbing Work NA 8,700 6,490 7,585 HVAC Work NA 8,900 13,500 7,200 Electrical Work NA 9,200 5,050 12,225 Fee NA incl. 12,678 incl. TOTAL NA 242,704 171,148 184,339 Total Adjustments NA 0 0 0 TOTAL w/out Site Work NA 218,184 163,798 159,505 Per Square Foot Cost NA 136 102 100 Site Improvements NA 24,520 7,350 24,834 TOTAL with Site Work NA 242,704 171,148 184,339 Per Square Foot Cost NA 152 107 115 Add/Deduct Alternates Add Sprinkler NA 6,000 3,337 3,600 Add Parapet Fiberglass Cornice Detail NA 4,000 4,100 2,425 Change from interior unit to end unit NA 21,600 14,428 15,200 Delete brick exterior side elevation, replace w/ Stucco NA - -8,800 -8,353 Delete brick exterior side elevation, replace w/ Vinyl NA - -10,350 -9,824 *Contractor 1 declined to provide bids for suburban locations. Appendix | 41
- 42. Appendix Bids/Responses to RFIs MODULAR - 16’ Bid 1* Bid 2 Bid 3 Bid 4 Modular Modular URBAN Vendor 1 Vendor 2 General Conditions 16,123 - 3,915 19,532 0 Foundation Work 9,232 46,254 16,427 9,647 0 Masonry Work 25,899 in 3 above 7,250 21,744 800 Framing Rough Carpentry 419 12,800 0 2,675 1,950 Exterior Siding 1,315 2,000 1,500 1,900 655 Roofing 789 5,440 900 4,694 250 Doors Windows - 200 0 650 0 Interior Finishes 875 500 Drywall Paint 0 9,420 0 0 250 Trim 0 500 0 0 0 Flooring 0 5,340 0 0 0 Cabinets Countertops 0 0 0 0 0 Appliances 0 0 0 0 0 Other 0 0 0 0 0 Sprinklers - - 0 0 0 Plumbing Work 9,866 4,200 1,450 1,250 2,940 HVAC Work - - 0 7,500 4,300 Electrical Work 6,577 7,400 1,165 7,238 2,950 Sub-Total - - - - 61,864 70,473 Fee incl. incl. 3,263 incl. incl. incl. TOTAL 84,712 115,324 44,045 103,517 76,459 70,473 Total Adjustments* 4,056 12,880 0 -7,500 0 12,083 Subtotal (no site improvements) 74,276 106,434 36,745 69,330 Site Improvements 14,492 21,770 7,300 26,687 0 TOTAL 88,768 128,204 44,045 96,017 76,459 82,556 Transportation incl. 3,229 Set Crew 2,263 741 Crane Service 3,000 3,150 Intermod Connections 2,800 590 Modular Total 84,522 90,266 Per Square Foot Cost 66 71 Grand Totals (Contractor + Mod Vendor 1) 173,290 212,726 128,567 180,539 Per Square Foot Cost 135 166 100 141 Grand Totals (Contractor + Mod Vendor 2) 179,034 218,470 134,311 186,283 Per Square Foot Cost 140 171 105 146 Add/Deduct Alternates Add Sprinkler 4,800 1,114 960 1,120 7,900 Add Parapet and Fiberglass Cornice Detail 4,300 4,275 2,200 Change from interior unit to end unit 33,036 30,000 14,550 15,200 Delete brick exterior side elevation, replace w/ Stucco - -9,100 -8,711 Delete brick exterior side elevation, replace w/ Vinyl - -10,900 -10,433 * After the written bid was submitted, a cost adjustment was made by this bidder based on an improved understanding of the scope requirements. 42
- 43. 20’ MODULAR - Bid 1* Bid 2 Bid 3 Bid 4 Modular Modular URBAN Vendor 1 Vendor 2 General Conditions 16,123 - 3,915 19,532 0 Foundation Work 9,969 50,451 19,810 11,237 0 Masonry Work 31,233 in 3 above 8,765 24,660 0 Framing Rough Carpentry 446 13,770 0 2,675 800 Exterior Siding 1,644 2,400 1,750 2,200 2,790 Roofing 877 6,610 1,025 5,470 775 Doors Windows - 200 0 650 750 Interior Finishes - 975 0 Drywall Paint 0 9,420 0 0 1,900 Trim 0 500 0 0 775 Flooring 0 6,660 0 0 0 Cabinets Countertops 0 - 0 0 0 Appliances 0 - 0 0 0 Other 0 - 0 0 0 Sprinklers - - 0 0 0 0 Plumbing Work 9,866 4,200 1,450 1,250 2,940 HVAC Work - - 0 7,500 4,750 Electrical Work 6,577 7,400 1,165 7,910 3,100 Sub-Total - - 85,296 102,570 Fee incl. incl. 3,734 incl. incl. incl. TOTAL 91,227 123,931 50,414 110,559 103,876 102,570 Total Adjustments* 4,056 12,880 0 -7,500 0 14,933 Subtotal (no site improvements) 80,791 114,491 42,589 75,584 Site Improvements 14,492 22,320 7,825 27,475 0 TOTAL 95,283 136,811 50,414 103,059 103,876 117,503 Transportation - 6,458 Set Crew 2,263 1,264 Crane Service 3,000 4,550 Intermod Connections 2,800 962 Modular Total 111,939 130,737 Per Square Foot Cost 70 82 Grand Totals (Contractor + Mod Vendor 1) 207,222 248,750 162,353 214,998 Per Square Foot Cost 130 155 101 134 Grand Totals (Contractor + Mod Vendor 2) 226,020 267,548 181,151 233,796 Per Square Foot Cost 141 167 113 146 Add/Deduct Alternates Add Sprinkler 4,800 1,856 1,600 1,120 8,784 Add Parapet and Fiberglass Cornice Detail 5,100 4,275 2,750 Change from interior unit to end unit 33,036 30,000 14,550 20,000 Delete brick exterior side elevation, replace w/ Stucco - -9,100 -6,620 Delete brick exterior side elevation, replace w/ Vinyl - -10,900 -7,930 * After the written bid was submitted, a cost adjustment was made by this bidder based on an improved understanding of the scope requirements. Appendix | 43
- 44. Appendix Bids/Responses to RFIs 16’ MODULAR - Bid 1* Bid 2 Bid 3 Bid 4 Modular Modular Vendor 1 Vendor 2 SUBURBAN General Conditions NA - 3,650 15,299 Foundation Work NA 33,923 14,814 7,885 0 Masonry Work NA in 3 above 6,300 15,280 0 Framing Rough Carpentry NA 10,940 0 1,775 800 Exterior Siding NA 1,350 1,120 1,750 1,400 Roofing NA 3,540 800 4,262 400 Doors Windows NA 200 0 650 250 Interior Finishes NA 700 0 Drywall Paint NA 6,620 0 0 500 Trim NA 500 0 0 250 Flooring NA 3,685 0 0 0 Cabinets Countertops NA - 0 0 0 Appliances NA - 0 0 0 Other NA - 0 0 0 Sprinklers NA - 0 0 Plumbing Work NA 2,700 1,100 1,000 1,800 HVAC Work NA - - 6,000 3,800 Electrical Work NA 4,580 965 5,840 1,800 Sub-Total NA - 61,864 70,473 Fee NA incl. 2,876 incl. incl. incl. TOTAL NA 88,308 38,825 83,891 72,864 70,473 Total Adjustments** NA 4,000 0 -6,000 0 12,083 Subtotal (no site improvements) NA 72,038 32,325 53,741 Site Improvements NA 20,270 6,500 24,150 0 TOTAL NA 92,308 38,825 77,891 72,864 82,556 Transportation incl. 3,229 Set Crew 1,863 654 Crane Service 1,600 2,700 Intermod Connections incl. 528 Modular Total 76,327 89,667 Per Square Foot Cost 60 70 Grand Totals (Contractor + Mod Vendor 1) NA 168,635 115,152 154,218 Per Square Foot Cost NA 132 90 120 Grand Totals (Contractor + Mod Vendor 2) NA 181,795 128,492 167,558 Per Square Foot Cost NA 142 100 131 Add/Deduct Alternates Add Sprinkler 4,800 1,056 960 750 7,900 Add Parapet and Fiberglass Cornice Detail NA 3,200 3,800 2,200 Change from interior unit to end unit NA 21,600 12,800 15,200 Delete brick exterior side elevation, replace w/ Stucco NA - -8,800 -7,411 Delete brick exterior side elevation, replace w/ Vinyl NA - -10,350 -8,716 *Contractor 1 declined to provide bids for suburban locations. ** After the written bid was submitted, a cost adjustment was made by this bidder based on an improved understanding of the scope requirements. 44
- 45. 20’ MODULAR - Bid 1* Bid 2 Bid 3 Bid 4 Modular Modular Vendor 1 Vendor 2 SUBURBAN General Conditions NA - 3,650 15,299 0 Foundation Work NA 37,011 17,815 9,213 0 Masonry Work NA in 3 above 8,000 17,420 0 Framing Rough Carpentry NA 11,400 0 1,775 800 Exterior Siding NA 1,600 1,400 2,020 2,200 Roofing NA 4,150 900 4,950 500 Doors Windows NA 200 0 650 750 Interior Finishes NA 800 0 Drywall Paint NA 6,620 0 0 1,900 2,850 Trim NA 500 0 0 775 Flooring NA 4,595 0 0 0 Cabinets Countertops NA - 0 0 0 Appliances NA - 0 0 0 Other NA - 0 0 0 Sprinklers NA - 0 0 0 Plumbing Work NA 2,700 1,100 1,000 1,800 HVAC Work NA - 0 6,000 4,200 12,083 Electrical Work NA 4,580 965 6,400 1,950 Sub-Total NA - 85,296 102,570 Fee NA incl. 3,358 incl. incl. incl. TOTAL NA 94,026 45,338 89,575 100,171 102,570 Total Adjustments** NA 14,530 0 -6,000 0 14,933 Subtotal (no site improvements) NA 87,886 37,988 58,727 Site Improvements NA 20,670 7,350 24,848 0 TOTAL NA 108,556 45,338 83,575 100,171 117,503 Transportation incl. 6,458 Set Crew 3,000 1,090 Crane Service 1,850 3,900 Intermod Connections incl. 838 Modular Total 105,021 129,789 Per Square Foot Cost 66 81 Grand Totals (Contractor + Mod Vendor 1) NA 213,577 150,359 188,596 Per Square Foot Cost NA 133 94 118 Grand Totals (Contractor + Mod Vendor 2) NA 238,345 175,127 213,364 Per Square Foot Cost NA 149 109 133 Add/Deduct Alternates Add Sprinkler NA 6,000 1,320 1,200 750 8,784 Add Parapet and Fiberglass Cornice Detail NA 4,000 4,100 2,425 Change from interior unit to end unit NA 21,600 12,800 15,200 Delete brick exterior side elevation, replace w/ Stucco NA - -8,800 -7,411 Delete brick exterior side elevation, replace w/ Vinyl NA - -10,350 -8,716 *Contractor 1 declined to provide bids for suburban locations. ** After the written bid was submitted, a cost adjustment was made by this bidder based on an improved understanding of the scope requirements. Appendix | 45
- 46. Appendix References 1 he average costs per square foot are derived from the cost-comparison analysis T 11 builder did use union labor for set and finish. Interview with Chris Gillen, vice The of a 16-foot-wide home and a 20-foot-wide home using modular construction president of Beazer Homes (May 18, 2009). methods rather than stick built. 12 Census Bureau Construction Statistics for New Residential Construction, The U.S. 2 evin C. Gillen Ph.D., Econsult, and Ira Goldstein, Ph.D., The Reinvestment Fund, K 2008 Annual Housing Units Authorized by Building Permits Data (2008), citing “Empirical Results from the Women’s Community Revitalization Program Barriers- statistics from 1996 to 2007. to-Affordability Study Presentation to WCRP” (2007). Data based on 2005 American Community Survey, Census NAHB, and RS Means data. http://beta.phila.gov/ 13 Ibid. philagov/taxpolicy/PDFs/empiricalResultsWRCPBarriersToAffordability.pdf 14 Barry Rehfeld, “Even Some Contractors Are Choosing Modular Homes,” New York 3 hiladelphia’s average household income is also well below the national average. P Times (September 30, 2006), citing 2005 data. As a result, it is a far better solution to the disparity between high construction costs 15 Justin Moresco, “Four Green Building Trends to Watch in 2010,” Earth2Tech.com and low market values to lower the cost to build rather than to raise home sales (December 23, 2009), http://earth2tech.com/2009/12/23/4-green-building-trends- prices beyond the reach of Philadelphians. to-watch-in-2010/ downloaded December 29, 2009. 4 Gillen and Goldstein, Empirical Results. 16 When assembling two units, you need a mate wall. This mate wall does not have to 5 Alan Mallach, “A Strategic Approach to Building Affordable Housing in occur where two equally sized modular units meet. For example, when building a Philadelphia,” Women’s Community Revitalization Project (February 2009, http:// 22-foot-wide townhouse, there is no reason that the mate wall has to occur at 11 www.williampennfoundation.org/news_keywords3559/news_keywords_show. feet. The mate wall is a stud wall that is about five inches thick. This support wall htm?doc_id=832362 The number of subsidized units represents all homeowner will be about 3 inches wider than a typical wall. Interview with Scott Miller, Miller units subsidized by the city. The figures were provided by the Philadelphia Office of Purdy Architects (May 18, 2009). Housing and Community Development on May 20, 2008. 17 Mullens, M., and M. Kelley, “Lean Homebuilding Using Modular Technology,” 6 Total homeowner new construction single-family units data are provided by Ibid. Housing and Society, 31(1), 41-54, 2004; Mullens, M., and M. Kelley, “Lean Econsult Corporation and are based upon Philadelphia Board of Revision of Taxes Homebuilding Using Modular Technology,” NAHB International Builders Show: 2006 property tax data. (These numbers do not include condominium units in Conference Proceedings, Las Vegas, published by Michigan State University, East multifamily buildings.) Lansing, MI (January 2003), p. 2. 7 Kevin C. Gillen, Ph.D., Econsult, “Philadelphia’s Ten-Year Tax Abatement: Updated 18 Naomi Cytron, “Some Assembly Required: Using Manufactured Housing in Statistics on the Size and Distribution of Abated Properties in Philadelphia,” Building Affordable Housing Development,” Federal Reserve Bank of San Francisco Industry Association (August 2008), http://www.econsult.com/articles/041609_ Community Investments (September 2005). Abatement.pdf 19 passage of Bill 090841 amended the Philadelphia Building Construction and The 8 Building Industry Association: Analysis of Inclusionary Zoning Bill # 071005-A, Occupancy Code by adopting the 2009 edition of certain International Codes on Econsult Corporation (May 8, 2008), http://www.biaofphiladelphia.com/pdf/IZ- December 17, 2009. Report-Final-2008.pdf 20 Geiger v. Zoning Hearing Bd. of the Twp. of N. Whitehall, 510 Pa. 231 (1986); 9 Building Industry Association: Analysis of Inclusionary Zoning Bill # 071005-A, Trumbauer v. Zoning Hearing Bd., 73 Pa. D. C.2d 20 (Pa. Com. Pl. 1975); and Econsult Corporation (May 8, 2008), http://www.biaofphiladelphia.com/pdf/IZ- Anstine v. Zoning Bd. of Adjustment of York Twp., 411 Pa. 33, 37 (1963). Report-Final-2008.pdf; Theresa Agovino, “Construction Unions Agree to Cut Labor 21 simple definition of site work for the purpose of this report includes clearing Our Costs: Building Contractors and Unions Have Reached an Agreement to Slice Labor and grubbing, earthwork, underground utilities (including separate house utilities Costs, but the Long-Sought Deal Falls Well Short of Developers’ Goals,” Crain’s New to within a few feet of the foundation), curbing, paving, sidewalks, landscape and York Business.com (April 24, 2009). hardscape. The decision to omit site work from the cost of building the homes is 10 Other union towns have successfully lowered costs. In late April 2009, New York based on a belief that the cost of the home construction should represent the actual City construction unions agreed to take action to modify their terms in order to vertical construction cost, or hard cost, and should not include the horizontal, or site make construction more affordable in the city and allow stalled projects to continue. work, portion of construction. Excluding site work should help the developer clearly The deal covers 25 different unions. While few were willing to cut their members’ isolate project costs and simplify the comparative cost process. Costs with site work pay, they did agree to change work rules, which union leaders state will result in included are identified in the summary chart on pages 38 to 45. savings on construction projects of 15 to 20 percent and which builders say will more likely result in savings of 3 to 8 percent. Agreed-upon work-rule changes included unions agreeing to work an eight-hour day instead of a seven-hour day. They have also agreed to honor a common list of holidays. Agovino, “Construction Unions Agree”; ibid., “NYC Construction Unions Ink Cost-Cutting Pact,” Crain’s New York Business.com (May 29, 2009). 46
- 47. 22 Developers are using modular-construction methods for larger homes in the suburbs 35 Interview with Nic Darling, partner, PostGreen (March 24, 2009); interview with David and making a profit. Perlman, Philadelphia Residential Development Company (May 18, 2009); interview with Scott Miller, Miller Purdy Architects (May 18, 2009.) 23 Interview with David Perlman, Philadelphia Residential Development Company (May 18, 2009). 36 “Mayor’s Advisory Commission on Construction Industry Diversity Report and Recommendations” (March 2009), http://www.econsult.com/articles/031609_ 24 Peter J. Cameron and Nadia G. DiCarlo, “Piecing Together Modular: Understanding MACCID_Exec_Sum.pdf the Benefits and Limitations of Modular Construction Methods for Multifamily Development,” Massachusetts Institute of Technology Thesis in Satisfaction of a 37 carbon footprint is is a measure of the impact human activities have on the A Master of Science in Real Estate (September 2007), http://dspace.mit.edu/bitstream/ environment in terms of the amount of greenhouse gases produced, measured in handle/1721.1/42038/228657327.pdf?sequence=1 units of carbon dioxide. 25 Murdock, James, “Modular Makes a Comeback,” Multi-Housing News 40, no. 3 38 “Modular System Design Test and Evaluation Results, prepared by The Hickory (March 2005), pp. 1–27. Consortium, Building America Initiative,” submitted to National Renewable Energy Laboratory (April 18, 2002). 26 Interview with David Perlman, Philadelphia Residential Development Company (May 18, 2009). Shelley Christiansen, “Modular Houses Barge in,” Martha’s Vineyard Magazine 39 (Summer 2008), http://www.mvmagazine.com/2008/home_and_garden_spring- 27 fact, modular companies offer to design homes for free, but this is done without a In summer/modular.php professional architect. Most of the design constraints come at the beginning of the process. Once they are understood, many different types of designs are possible. 40 These advantages will be markedly increased when modular builders routinely begin Interview with Scott Miller, Miller Purdy Architects (May 18, 2009.) to offer upgraded materials and environmentally preferred products. 28 Interview with David Perlman, Philadelphia Residential Development Company 41 Telephone interview with Brian Phillips, Interface Studio Architects LLC, Philadelphia (May 18, 2009). (May 2009). Phillips points out that shorter site disruption can be especially helpful in dense urban settings. 29 is important to note, however, that modular homes often fail to be completed by the It agreed-upon schedule. According to a 2006 study by J. D. Power and Associates of 42 Suzanne Morphet, “Local Prefab among 25 Selected for New Book,” Vancouver modular homes built in 2005, “[O]nly 35 percent of modular homebuyers reported Sun (November 14, 2009); interview with David Johnston, green building expert at the home was ready for move-in by the date originally promised.” Thayer Long, “J. WhatsWorking.com (June 3, 2009), http://www.vancouversun.com/business/Local+pr D. Power and Associates Surveys Modular Customer Satisfaction,” Building Systems efab+among+selected+book+book/2222641/story.html Magazine, March-April 2007, http://www.modularcouncil.org/mc/pub_mod/default. asp?id=14article=192 43 Lifecycle Construction Resource Guide, Environmental Protection Agency (February 2008), http://www.lifecyclebuilding.org/files/Lifecycle%20Construction%20 30 J. Newman and Patrick Fleming, “Manufactured Housing: A Misunderstood Eric Resource%20Guide.pdf Real-Estate Market,” Journal of Business and Economics Research 4, no. 5 (May 2006), http://www.cluteinstitute-onlinejournals.com/PDFs/2006349.pdf; Lynn 44 Susan Conbere and Asa Foss, “Modular and Green,” Professional Builder 71, no. 7 Lofton, “Modular Homes May Solve Coast Shortage, but What Are They?” Mississippi (July 2006), pp. 87–90. Business Journal 28, no. 51 (Dec. 18, 2006), pp. 30-31, http://proxy.library.upenn. 45 “The weeHouse—Modular Housing for Kensington,” New Kensington Community edu:2054/login.aspx?direct=truedb=kehAN=23590769site=ehost-live Development Corporation (2009). 31 Cameron and DiCarlo, “Piecing Together Modular.” 46 http://www.capsyscorp.com/portfolio.php?c=13, 32 Matthew Power, “Made to Order,” Builder Magazine (February 2002), http://www. 47 See note 21. builderonline.com/sales/made-to-order.aspx 33 “Mitigation Assessment Team Report: Hurricane Andrew in Florida: Observations, Recommendations and Technical Guidance,” Federal Emergency Management Agency (December 21, 1992), http://www.fema.gov/library/viewRecord.do?id=2765 34 Cameron and DiCarlo, “Piecing Together Modular.” Appendix | 47
- 48. going mod Author: Karen Black, May 8 Consulting Editor: Robert Rosenthal, RMR Real Estate Advisors Cost Analysis: Paul Commito, AMC Delancey Architectural Drawings: Matthew J. Koenig AIA, JKR PARTNERS LLC Graphic Design: Maskar Design, Philadelphia Copy Editor: Janet Benton, Benton Editorial www.biaofphiladelphia.com FixItPhilly www.fixitphilly.org 48