I didn’t really understand the duties of a Modular Project Broker until recently. They are a different breed from a Project Manager or a Consultant.
Project managers are hands-on, directly involved in execution, and responsible for the success of a project. Project management consultants offer advice or support. They are more involved in the change and transformation aspect of a project.
Modular Project Brokers (MPB) are relatively new and what they do has them functioning in uncharted waters and that’s where the Pros and Cons live.
The best definition I could find for a Modular Project Broker is an independent consultant that agrees to help find a modular factory to build a developer’s housing or commercial project. Sounds like a great business to go into.
However, if you are a developer of housing and commercial properties and have wanted to look into the advantages of modular construction, you need to know what a modular project broker can and can’t do to help.
PRO
1. MPBs know what a factory needs in order to give the developer a quote. They have probably worked at one or more modular companies as a sales rep and know what happens on the production line.
2. MPBs know the language of modular construction. They are able to communicate to the developer what the modular company needs and return that information back to the factory in terms both parties understand.
3. MPBs, especially if they were involved with commercial or housing projects as factory sales reps, know the different steps each project goes through at the factory and can head off problems before they happen. This is really important if the developer is new to modular factory’s needs, which are different than an on-site General Contractor built project.
CON
1. Many MPBs have little knowledge of what actually happens at the job site in terms of preparing for the arrival of the modules, helping the developer with finding set crews, and how to finish and connect each module as it’s put into place on the structure.
2. MPBs tend to only shop the developer’s plans to the factories they actually know. Wouldn’t we all like to take the path of least resistance?
3. They must get paid for their efforts. Most will require a retainer and an additional payment from the developer at the time the contract is signed between the factory and the developer. However, some MPBs want the factory to pay them also. This could have the developer buying from a factory that isn’t right for their factory.
These are just some of the Pros and Cons. So how does a developer find his first factory, work with both the Architect and the factory’s engineering department, learn what is needed at the job site to get ready for the modules, how to get them erected and finished and how to work with inspectors? For those final jobs, you will probably do best to get a Project Manager with commercial modular experience.
Or a second and maybe better choice is to learn which modular factories serve your area, which could be up to 750 miles away for a modular factory, contact them and find out if they are vertically integrated. This means they can take the developer’s plans, rework the plans to fit their production line, transport the finished modules to the job site, have the crane, set and finish crews ready, and have the knowledge of what the local inspectors will want to see. Total Vertical Integration.
A note to developers: Don’t let anyone tell you must use a Modular Project Broker. Do your due diligence and only use an MPB if you can’t find any other way to get your project done.
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder magazine. Email at [email protected]
Gary Fleisher, the Modcoach
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