In 2007, more than 40,000 modular homes were built in the United States. Multi-unit modular options now are gaining in popularity as they become more viable for commercial projects.

More than 40,000 modular homes were built in the United States in 2007. More are expected in 2008, as builders and developers realize the benefits that modular construction has to offer. But just as single units are soaring in popularity, multi-unit modular options are also gaining steam, with builders around the world considering modular products for a wide range of commercial projects.

The commercial modular movement has no shortage of eager participants – from colleges to the U.S. military and educational facilities.

West Virginia University recently turned to modular construction to complete a four-building dormitory on its Morgantown, W.V., campus. The 138,000-square-foot project included 176 separate protected wood-frame modular units installed over full basements. Doors opened just in time for the university to welcome one of its largest freshmen classes in its history.

Even the U.S. Army is embracing multi-unit modular options. On the Fort Lewis U.S. Armed Forces Base in Pierce County, Wash., 127 modular buildings were installed to permanently house more than 300 military families, making it the largest permanent housing project in the country using modular construction. Not only did the Army save money by going modular, but they were able to create high-quality homes for families and allow them to move in ahead of schedule. The off-site construction of the modules also allowed for minimal disruption to daily operations of the base and the existing neighborhood.

Modular Rewards

To understand why so many projects are shifting from the site to the factory, one need only look at the changing perceptions of the modular construction industry. The word “modular,” once synonymous with ugly, inflexible or shoddy housing options, is now recognized by builders and commercial developers as being stylish, easy to customize and financially rewarding.

As for quality, modular homes are stronger and better built than most site-built options, a benefit resulting from the climate-controlled, indoor precision manufacturing process done by highly skilled and specialized tradespeople. This process also provides the opportunity for more thorough inspection procedures – once at the factory and again when the modules are delivered and installed. The use of additional lumber and materials during the construction process (to help the structure withstand transportation) also contributes to modular’s superior strength. Even with those benefits, modular construction can cost 10 percent to 15 percent less than site-built methods.

Modular is often quicker than site-built construction. This time-saving perk stems from the fact that while the foundation of a structure is being prepared, the modules can be built simultaneously. A faster build time can prevent financial losses that often stem from fluctuating commodity prices and interest rates, ever-changing subcontractor schedules and delayed completion dates.

Financial benefits include:

• Modular construction often requires fewer workers than site-built construction. The factory crew also alleviates labor concerns and reduces risks associated with working with multiple subcontractors.

• Purchasing building supplies in bulk means modular manufacturers are not as affected by price fluctuations in commodities and key supplies like lumber. Bulk-material purchasing also means more efficient use of materials and less waste.

• Modular units are often built “tighter” than site-built homes to prepare them for transport, making them more energy-efficient, thus saving the homeowners money on heating and cooling costs.

• Shorter construction times can equal lower insurance fees for builders.

• Up to 85 percent of modular costs are fixed up front, reducing financial risks and unforeseen expenses.

• Strong warranty packages reduce risks for developers, bankers and creditors.

• Some modular manufacturers provide engineers and draftsmen who can update plans quickly, trimming time from the typical permit process.

Modular building is also flexible enough to meet the unique requirements of most builders, developers or local regulators. Excel Home, a modular construction company based in Camp Hill, Pa., recently partnered with Quinn Co. on a multi-unit modular project in Manchester, Vt. Working together, the team developed homes that were environmentally friendly and met the state’s mandated levels of affordable units along with upscale “market-priced” units. At all stages of the construction process, Excel and Quinn worked closely with the builder and the state’s Home Energy Rating System inspectors at the plant and on site. As a result, the Manchester project qualified for all local and federal environmental rebates and also met the state’s efficiency standards.

With a mastery of individual home construction and these benefits, the modular-building industry is more than ready for the next phase of commercial modular construction. From private, multi-unit residential complexes to retirement-living communities to health care facilities, there appears to be no limit to the growing demand for multi-unit modular projects.

Steven Scharnhorst is president and chief executive officer of Excel Homes (www.excelhomes.com) in Camp Hill, Pa.