That’s one reason we are seeing more traditional
contractors making the leap and turning to modular
construction. In some cases, GCs are contracting
with modular manufacturers on “hybrid” projects
that incorporate the best of modular and site-built
processes. In other cases, contractors are establishing
their own prefab divisions as a hedge against this labor
shortage.
PCL Construction, one of the largest general
contractors in North America, created its “Agile” division
about three years ago to move into the modular
construction industry. MBI wanted to find out what
drove PCL to this decision.
According to Terry Olynyk, Director of Business
Development for PCL Construction, “The world of
construction is rapidly moving towards the digital age
and with that [so is] industrialized construction. PCL did
not want to stay on the sidelines while this paradigm
shift is occurring and wanted to lead the market by
being the first fully integrated general contractor with its
own modular factory.”
PCL’s strategy when approaching a project is to first
ask how much of the project can be built offsite. “Our
end goal is to target scopes that reduce the project
critical path and gain us valuable time,” Olynyk said. He
continued, “Another consideration is the complexity of
the scope and challenges we have with hours of work,
work location, available sub-trades to perform the work,
geographical area. We then assess these constraints
against our ability to ship the volumetric spaces and the
associated costs. With advanced digital tools combined
virtual models we are getting better at decoupling
spaces and finding advantages with modular.”
Anthony Zarilli’s transition took place more than
15 years ago while building homes in New Jersey.
According to Zarrilli, he knew modular home building
had the potential to change the future of new home
construction when he first started researching it.
It all started when Zarrilli, while working alongside his
father constructing custom “stick-built” houses, saw an
article about modular homes which piqued his interest.
After visiting several modular plants and receiving
approval to build, he ordered his first modular home.
Zarrilli set the home in Point Pleasant, New Jersey by
himself, and because his real estate agent wasn’t quite
sure how to market a modular home, he decided to sell
it himself.
Once the home sold, Zarrilli repeated the process, but
this time in Point Pleasant Beach. While working on that
project, people started to take notice. Before he knew
it, Zarrilli was being asked to build modular homes for
others.
“I went from building four homes per year to eight to
12 and it just kept on growing from there,” he said.
“That’s really how it all started.” Today, Zarrilli Homes is
expanding into new markets such as multifamily.
Making the move to modular construction is not without
some challenges. Every aspect of the construction
industry is considered from the perspective that the
materials and labor show up on a specific site and work
begins there. Moving construction to an offsite location
requires greater coordination and communication
among all parties. Everything from insurance to legal
consideration to payment schedules need to be
discussed and agreed upon in in advance.
MBI is actively working with other organizations to
address many of these site related barriers, including
providing more resources in the building codes,
a design guideline for architects, and a standard
contractual language between general contractors and
modular manufacturers.
But for many contractors, it’s simply a matter of time
before this process is mainstream. Olynyk sums it
up this way, “design tools and materials have greatly
advanced over the past 20 years. The construction
industry has been building the same for over 100
years and is about to change. A significant skilled
labor decline has started in North America coupled
with the rising cost of labor and productivity falling.
The construction industry will soon be forced to look
at alternatives that will keep the projects on track. We
will soon realize a cost shift where onsite “stick-built”
becomes more expensive than modular construction.
Lack of construction labor, quality concerns, and
project certainty with modular solutions will force the
construction industry into a long overdue change.”
Other Contractors Making the Leap
Chicago-based Skender recently
announced plans to open a new
Skender Manufacturing facility that
will assemble modular building
parts for senior housing, multifamily,
healthcare, and other commercial
buildings in the Windy City.
Manufacturing will begin as soon as
this November.
Baltimore-based general contractor Whiting-Turner has a history of
delivering successful modular
projects including student housing
and hotels. The company touts
“prefab and modular” as part of their
corporate expertise now. According
to their website, “Prefabrication of
building systems and components
is made possible by the accuracy of
the digital submission process. This
saves costly rework; reduces waste,
installation time and onsite labor;
and significantly enhances quality
and safety.”
This article originally appeared in the Modular Advantage Magazine - Fourth Quarter 2018 released in November 2018.