One of my modular builder friends, Harris Woodward of Finish
Werks in Savage, MD, sent me a series of emails from a couple that want to
build a modular home because they feel they can save money by being their own
GC. He sent me this interaction between the parties to show how complicated
building a house can be today compared with just 5 years ago before the states
tightened up the regulations to the point of strangulation.
What follows is Harris explaining to them the difficulties
now facing anyone that wants to be in charge of building their own home in MD
and the couple’s, Jim and Jane (not their real names) responses.
You can tell that he is frustrated with the new regulations
put in place in MD, one of the toughest states in the nation to build a new
home.
I’ll let the builders among the readers comment on this
and maybe some of their own experiences in similar situations.
*******************************
June 4, 2013
Harris – here is the rest of the information.
I guess for the set, since you are talking about GCing that
portion of it, and you will not be setting the house directly, please provide
the breakdown of what you will provide (services), crane, oversight, testing
once complete, and the set price. We can compare that to the other pricing
that we got to see what will work – ie the set price only.
Good speaking with you, please let me know if you have any
questions.
Thanks.
Jane
**********************************************
June 5, 2013 5:45 PM
Hi Jane – sorry for the wait. We are still waiting on
speaking with set crew, but I wanted to give you at least some information as
promised, by today.
Ray and I agreed that we would schedule the Set (time the
factory convoy, set crew, and crane to the weather), manage the crews
(orchestrate scopes between crane and set crews), arrange steel erection prior
to module placement, and oversee the set including all shiploose parts for as
long as the sun shines on that day. It will be Ray, our key man Don Althoff,
and I onsite all day to make sure this most critical part of the project goes
off with minimum trouble with the benefit of our decades of experience.
Fee for all preparation planning and a full day onsite:
$xxxx
Fee for additional set-related management: TBD
Set Crew Price: best available secured directly (no markup
by Finish Werks)
Talk to you more, tomorrow.
Thanks,
Harris
*******************************
June 5, 6:29 PM
Thanks Harris – do we really need 3 people there to watch it
– is it possible to have less people and have it be less expensive? The
steel will be temporarily set by the foundation contractor – I want to make
certain that all sealing is done properly and all strapping, columns and
leveling etc. Should this set be done in 1 day? I got the
impression it might be 2 days.
The other pricing that you will give me is the pressure test
etc to have it released or will you just hire someone to do that. Please
let me know when you have more information. As am FYI – I took the
modular course at MHTI, and have seen one set, of course, it doesn’t make me an
expert, I think I at least understand what I don’t know.
Thanks,
Jane
************************
June 6, 2:07 PM
Jane, I’m glad to know you took the training course. This
makes you a wiser owner.
Like the Set of a modular home, we don’t do the work
ourselves on the blower door testing of our homes. This can only be done by a
RESNET certified HERS Rater. This person is a specialist with specific training
no different from an AHRI certified HVAC contractor. Or an experienced Set Crew
with thousands of dollars of rigging equipment. As an experienced GC and home
builder, we are the proverbial “jack of all trades” with expertise in
predictably managing ALL trades in a fiscally prudent way. We are the glue that
brings it all together.
We’ve seen/heard about so many Sets gone bad over the years,
usually due to a lack of experience (with the precursor being a desire to save
money by cutting out middlemen). We’ve also witnessed the legal entanglement of
owners acting as their own GC’s and attempting to separate scopes of work with
distinct accountability.
Building modular has gotten so difficult in
the Maryland Codes Administration. I reviewed the attached documents (required
starting this year) and they definitely enjoin the owner and licensed builder
to the end of the project. We can no longer simply work part of the job, and
remove ourselves from the rest of it. We are legally obligated until U&O.
I spoke with Set Crew owner and he confirmed that they are being
pressured to get MHBR numbers by modular factories selling into
they do, they will not allow their number to be used to build the building
because of the inherent problems of being drawn into legal entanglement. They
have challenges enough when owners and inexperienced builders attempt to pin
blame for their construction finishing problems on their Set. They often get
called back for problems not of their making. Regardless, entanglement is now
inevitable with the obligation written into the attached paperwork. We are on
the hook, by law.
So while modular construction has value in speed and
quality, it does not erase code and regulatory obligation (County and MD) and
financial accountability (particularly with bank financing).
Finally, and this is the most sensitive issue of all to
discuss with anyone in an objective, “politically correct” way, is the issue of
cost cutting. We have found over the years that owners acting as their own GC’s
have gotten into trouble on their projects more often than not. Attempting to
build to IRC 2000 was admirable and achievable. Then IRC 2006 hit, then
sprinkler systems, then IRC 2009 with energy, then BAT septic systems, then
elaborate site plans with Storm Water Management and sediment control plans,
and now IRC 2012 with blower door testing and duct pressure testing. Building
one’s own home has gotten so difficult that there isn’t a bank in the land that
will lend construction money to anyone without a builder’s license. For the
very same reasons
protect them from liability. For the same reasons, any seasoned, experienced
builder will not get involved. The liabilities are simply much too great, no
matter how friendly the project appears from a subjective standpoint.
The way we are reading the tea leaves on your project leaves
only 2 possible outcomes as we see them:
– Finish Werks contracts with you to build the entire house,
including Set, Sprinkler System design and installation, IECC 2012 testing with
our RESNET certified HERS Rater, finishing construction, trades, etc, OR
– You secure your own MHBR number and General Liability
insurance policy and attempt to GC your home yourself.
Jane – there’s a lot to discuss here. We would like to bid
your entire project, but we don’t want to work with anyone that doesn’t fully
understand “the process” and our process. As the investor you deserve that
much, too.
Best regards,
Harris
***************************************
(And just when Harris thought the couple understood
everything, this email shows up)
June 6, 3:52 PM
Harris, we are not required to put sprinklers in since we
got the permit in prior to the deadline. The head of the department has
approved this.
Thanks
Jane
