In this issue...
Factory-Built Housing: Overcoming Negative Perceptions
A key to selling factory-built housing is to show potential customers that they can be as attractive as traditional, stick-built homes.
Factory-built homes have numerous, well-documented advantages for both builders and homeowners. Indoor fabrication can improve quality control and precision, eliminate weather delays, and significantly reduce on-site construction time.
In fact, according to the Partnership for Advancing Technology in Housing (PATH), the strategies used in the PATH Concept Home (www.pathnet.org/concepthome) can reduce the construction cycle, from site preparation to finished home, to 20 days — a fraction of the average six to nine months for constructing a conventional, stick-built house.
Improving quality while reducing costs may seem like a win-win situation for the housing industry, yet negative perceptions about factory-built housing within the industry and among consumers have hindered its success in the market.
"Constructing the homes is the easy part," says David Cohen, principle of Cohen Brothers Homes (www.cohenbrothershomes.com), which plans to build full-size, architec-turally flexible homes in an on-site factory, using their proprietary Whole-House Building System. "The entire infrastructure of the housing industry supports conventional stick-built housing," Cohen adds. Builders may find that although indoor fabrication can improve the speed and ease of construction, it may have the opposite effect on the approval process.
For builders at the forefront of factory-built housing, education and persistence are crucial to overcoming industry resistance. Skeptical code officials may be more likely to respond to builders armed with data backing up the benefits of factory-built homes. "Every municipality is different, so we have the code officials come to the plant, and explain what we're doing," says Jim Petersen, who heads up the the factory-built initiative at Pulte Home Services (PHS). PHS (www.pulte.com/PressRoom/PulteHomeSciences.asp), the research and development group of Pulte Homes, is currently exploring component manufacturing as one approach to improving home building.
Advocating regulatory changes may be a painstaking process, but it can result in success. For example, the city of Tulsa, Okla., recently approved modular housing — a long-fought success gained after five years of efforts by local advocates. "There has been a lot of resistance from code officials who have negative perceptions about factory-built housing," says Doug Gorman, a Tulsa-area modular home builder who worked with INCOG, a voluntary association of local governments, to receive approval from the city.
Working with the current code is another approach. "We try to package our process in a way that is digestible to the existing code," explains Cohen. "Then we educate code officials about how to deal with our innovative system while working within the code."
The U.S. Department of Housing and Urban Development (HUD) suggests that builders visit HUD's Regulatory Barriers Clearinghouse (RBC), available at www.huduser.org/rbc, to investigate how others are overcoming regulatory obstacles to factory-produced housing.
Potential customers may also come equipped with pre-existing negative perceptions about factory-built homes. Many equate them with unattractive, poorly-constructed "trailer homes" that are prone to fire and wind damage.
As with code officials, direct education often has a significant impact on wary customers. "Once the customers are educated about what we do, we're very successful," says Petersen, who emphasizes the importance of a well-educated sales force. "Right now, this is very market-specific, so we rely mostly on our sales people being educated about factory-built housing so that they have all of the information to properly inform the customer," he says.
For many customers, seeing is believing. Model homes can immediately improve a customer's perception of factory-built homes. "What we can do is present homes that are absolutely first-rate," adds Cohen, who stresses the importance of homes that both look terrific and have solid, third-party verification.
Because factory-built home builders are confident about the technology and processes behind their homes, many see negative perceptions as the last significant barrier to widespread acceptance — a barrier that can be overcome by educating the industry and consumers about the facts behind factory-built homes.
Panelized Construction Comes of Age
Like all factory-built housing, panelized homes start indoors. Generally, prefabri-cated interior and exterior wall panels — complete with sheathing, siding, windows and wiring — are shipped to the building site, along with roof trusses and floor decks.
According to Art Breitenstein, general sales and marketing manager of John Wick Homes of Mazomanie, Wis., panelization allows builders to work smarter, not harder. "[Builders] buy the land, pour the foundation, and thatÕs it," he explains. Eric Fulton, communications manager of the Building Systems Council, agrees. "Builders can see their production capabilities skyrocket," he says.
Panelized construction cycles are usually a fraction of traditional site-built homes. As a result, builders can build more homes, homebuyers can enjoy quicker move-in dates, and materials are not exposed to the elements or left vulnerable to theft.
Yet unlike manufactured homes, which are fully assembled in a factory, panelized construction also offers more of the flexibility associated with site-built homes. According to Fulton, it's a common misconception that panelized housing limits building designs. He explains that most panelized manufacturers have software that allows builders to use their own plans.
Panelized construction can also add flexibility to homes that are more fully assembled in the factory. Hybrid modular/panelized construction allows panelized components, such as garages, sunrooms and porches, to be added to a modular structure. PATH's "Dove Street" project, in Boston, Mass., used this hybrid process to set homes in just two days, at an estimated savings of 10 percent over site building.
However, panelized homes still have limited customization compared with traditional site-built homes. Foundations must be poured to precise specifications, and room sizes cannot be changed once the panels have been fabricated without incurring large expenses. For more infor-mation on panelized construction, visit the ToolBase Technology Inventory at www.toolbase.org/techinv.
Resource Review: Builidng an Affordable House
The National Green Home Building Guidelines will provide a valuable resource for those that do not already have a green building program.
In writing Building an Affordable House (The Taunton Press, 2005), Fernando Pagés Ruiz, was able to take his experience as a builder and use it to produce one of the most comprehensive and thorough guides of its kind. In his book, Ruiz offers cost-saving techniques and tips to simplify the construction process, and up-to-date technologies to help builders reduce environmental impact while building a high-quality and energy-efficient home.
Many books on affordable housing concentrate on specific systems, such as land planning and layout, structural
framing, foundations, HVAC, plumbing, electrical, or building enclosures. However, in addition to those areas, this book covers the latest information on materials, products, designs, and systems needed to construct affordable housing.
With typically more than 1,000 line items in a standard home construction budget, significant savings can be achieved, starting with material selection and efficient design. Readers can not only learn how to achieve these savings, but obtain in-depth information on whole-house systems, as well all aspects of the construction process. The approach described in the book gives readers the knowledge they need to make the right decisions, and control expenses at the onset and throughout the construction process.
The graphics in the book also make it easy for readers to understand, regardless of their construction background. The pictures follow the text clearly, and offer a visual aid for practicing the techniques introduced. Ruiz also offers information for a number of different climates, and for areas outside the United States. He highlights a number of research projects, demonstrations, field evaluations, reports, and information on systems and tech-nologies developed as part of the Partnership for Advancing Technology in Housing (PATH) Program.
To purchase this informative source on building an affordable house, shop the Taunton Press online store at www.taunton.com, or visit your local bookstore.
Defining Differences
The term "factory-built housing" serves as an umbrella for several types of homes: manufactured, modular, panelized, pre-cut, and mobile. Although often misused interchangeably, each of these terms designates a distinct type of construction. Differentiating among the various types of factory-built housing is vital to educating both homebuyers and the housing industry about these structures.
Manufactured Homes.* These are homes built entirely in the factory under a federal building code administered by HUD. The Federal Manufactured Home Construction and Safety Standards (HUD Code) went into effect June 15, 1976. Manufactured homes may be single- or multi-section and are transported to the site and installed. The federal standards regulate manufactured housing design and construction, strength and durability, transportability, fire resistance, energy efficiency, and quality. The HUD Code also sets performance standards for heating, plumbing, air conditioning, thermal, and electrical systems. On-site additions, such as garages, decks, and porches, must be built to local, state, or regional building codes.
Modular Homes.* These factory-built homes are built to the state, local, or regional code where the home will be located. Modules are transported to the site and installed.
Panelized Homes.* These are factory-built homes in which panels — a whole wall with windows, doors, wiring, and siding — are transported to the site, and assembled. They must meet state or local building codes where they are sited.
Pre-Cut Homes.* This is the name for factory-built housing in which building materials are factory-cut to design specifications, transported to the site, and assembled. Pre-cut homes include kit, log, and dome homes. They must meet local, state, or regional building codes.
Mobile Homes.* This is the term used for factory-built homes produced prior to June 15, 1976, when the HUD Code went into effect. By 1970, these homes were built to voluntary industry standards that were eventually enforced by 45 of the 48 contiguous states.
(* Definitions courtesy of the Manufactured Housing Institute.)
Links to Additional Information:
PATH Tech Sets: Innovation Made Easy
Ever feel stunned by the sheer volume of new technologies out there? The ride just got easier. PATH has introduced "Tech Sets," a new resource to help builders implement innovative technologies in manageable, systems-based packages. Often blending tested, high-performance building technologies with advanced building techniques, the Tech Sets take the guesswork out of choosing cost-effective technologies that can improve home quality and deliver distinct market advantage. Each Tech Set offers an options package, so builders can use all technologies in a set for maximum performance, or just a few.
The Tech Sets program was announced to industry leaders and members of the media at the International Builders' Show in Orlando this January. Housing and Urban Development Assistant Secretary Dennis Shea introduced the new resource.
"Each Tech Set will offer a cost-effective package of technologies that work together to improve one or more of the PATH building priorities: durability, energy efficiency, environmental performance, disaster resistance, and safety," said Shea.
The first set demonstrates elements of resource-efficient plumbing. The five technologies in this Tech Set are easy to install, result in efficient and speedy delivery of hot and cold water, and allow for future, simplified retrofit of a greywater reuse system:
- Home Run Plumbing Systems run flexible water supply piping directly to each fixture from the central manifold, allowing for faster and easier installation and more efficient delivery of hot water.
- Tankless Water Heaters provide domestic hot water (DHW) on demand, reduce or eliminate standby losses, use less space, and last longer than conventional water heaters. They can be sized to provide DHW to the whole house or individual, remote fixtures.
- Air Admittance Vents (AAVs) are pressure-activated, one-way vents that eliminate the need for conventional drain venting and roof penetrations.
- Greywater Reuse Piping should be plumbed to facilitate greywater reuse by keeping greywater (shower, dishwasher, clothes washer, and lavatory sink drains) separate from toilet blackwater.
- Low-flow Fixtures save both water and energy, and provide similar performance to their standard counterparts.
The second Tech Set, released in April, helps builders create a durable building envelope. These techniques decrease the cost of construction and maintenance through technologies that benefit both the foundation and the frame, and through reduced moisture infiltration. Some of the innovations in this set include:
- Framing: Use advanced framing techniques, structural insulated panels (SIPs), light-gauge steel framing, or engineered wood wall framing to maximize the durability and energy efficiency of the walls and roof, minimize the use of resources, and lower labor costs.
- Headers: Insulated headers are a strong, lightweight, energy-efficient, cost-effective alternative to beam headers. Steel "L" headers simplify header installation and save time by reducing the amount of cutting and fastening, making it much easier to use steel framing in residential applications.
Trimmable Open Web Floor Trusses allow the truss to be shortened in the field, overcoming the problem of having to know precise truss dimensions in advance to fairly close tolerances. This makes it easier to take advantage of open web trusses' relatively long spans and light weight, and to route larger ducts and piping through open spaces between the webs.
- Alternative Materials for Exteriors and Trim: Cellular PVC lumber, recycled wood/plastic composite lumber, and fiber-cement siding are long-lasting, recycled-content alternatives to wood that resist termites, moisture, and rot, and are less likely split or crack during installation.
- Smart Vapor Retarders, unlike their standard counterparts, are permeable when humidity levels are high, limiting the transmission of water vapor from inside the house into the wall or roof cavity.
Learn more about each technology on ToolBase's Technology Inventory. Look for the release of PATH's third Tech Set in July.
New Information Technologies Help Transform the Business of Home Building
Many builders are dedicated to quality assurance in home building. But how many can prove it without digging deep into their customer service policies, quality assurance plans, and other paperwork? By concentrating on quality and creating the tools needed to ensure that quality is incorporated throughout its construction process, Grayson Homes of Ellicott City, Md., is building higher quality homes for lower cost.
Grayson Homes has achieved the highest industry awards and recognition for its quality assurance focus and use of technology to ensure its success. For example, the company earned the 2005 National Housing Quality Gold Award, the highest recognition for quality achievement in the home building industry. In June 2004, Grayson Homes also became the first privately-held home builder in the nation to earn NHQ Certification from the NAHB Research Center's National Housing Quality (NHQ) Program.
Construction Quality Manager® (CQM), Grayson's automated inspection application, runs on a BlackBerry handheld, and is now an out-of-the-box solution. CQM not only serves as a way to track, manage, and resolve defects, but also provides a database and management reporting system that gives builders a comprehensive view of their businesses. It allows field supervisors to improve productivity, facilitates the efficient operation of construction processes, enhances the effectiveness of trade contracting partners, and uses a single device in the field to remotely communicate voice, email, and other data to main offices.
"We liked the Construction Quality Manager on our BlackBerry handhelds right away," said Ron Swecker, director of home building at Grayson Homes. "It's customized for the construction industry and it makes more sense to have one handheld than having someone carry a separate PDA and a phone."
When Grayson supervisors inspect a home, they note any defects into their CQM-enabled handheld, which stays until the defect is resolved. At the end of each day, CQM compiles defect reports by project and job, along with all corresponding trade contractor contact information. It also produces a report that summarizes the number of defects by phase of construction, which helps the builder develop "hot-spot" correction training priorities.
CQM also creates a report for each trade contracting partner, summarizing the defects listed for each firm by phase of construction. Grayson's supervisors can then use this report to review trade contractors' overall performance, while the trades themselves can use the information to enhance the effectiveness of their business practices as well.
The handheld application is useful because it keeps Grayson's field supervisors where they can be most productive — in the field. "The email and phone capability allows for instant access wherever the supervisor is on the jobsite," says Swecker.
Grayson credits the implementation of CQM for measurable results, including:
- Reduced paperwork and manual report writing
- Standardized workflow process
- Ability to evaluate trends
- Increased jobsite management productivity
- Improved reporting on trade contractor performance and their need to address recurring issues
- Greater customer satisfaction
For more information on the CQM application, visit www.flowfinity.com.
Project Management Solutions for Home Builders
Home building has been a labor intensive process for centuries. Advancement in technology has brought some automation in this process by introducing a variety of project management solutions. These provide an effective means for collaborating with the key participants in the process, tracking project progress, and sharing critical project information without creating a sea of paperwork. The following is a brief overview of the various functionalities provided by some of these IT aids.
Pre-construction Planning
Project management solutions often have features that guide home builders through the pre-construction planning phase by providing templates for preparing finance documents, cost estimates, contracts, specifications, and bidding documents.
Document management systems offered by these solutions help project managers to keep track of contracts, estimates, drawings, specifications, and other important documents on a project-by-project basis. Programs such as UDA Contracts and EZHomebuild provide these features.
Estimating & Procurement
Estimating is an important element of project management. It begins before the bid is sent and continues throughout project life-cycle for tracking costs and projecting cash flow. Several project management solutions provide templates consisting of hundreds of material and labor items commonly used in home building projects. Material and labor costs are often based on industry standards such as RS Means for new construction and remodeling projects, based on the type and scope of the project. They also provide capability for adding, removing, and changing user-specific items and costs. Some of the solutions such as ProEst's General Construction Estimating Software provide built-in digitizer interface to take-off lengths, area, and count from blueprints, thereby reducing the substantial amount of time spent in quantity take-offs. This could be highly valuable during the bidding phase and may help cut costs considerably.
Some similar programs allow home builders to integrate estimating with procurement. For example, UDA's estimating software provides the capability to generate a material list, purchase order, RFP, and RFQ directly from the cost estimates. It also allows a user to integrate cost estimates with a project schedule in order to track project progress, project future costs, and project cash flow.
Scheduling
Maintaining, updating, and tracking construction schedules can be some of the most complex project management tasks for a home builder. Project management solutions such as Hyphen Solution's Build Pro allow project superintendents to review their daily schedules, make necessary changes, and send notifications to the various participants. Scheduled tasks can be associated with critical data such as material resources, supplier details, material and labor costs, and trade contractor information. This can be an effective tool for overseeing trade contractor performance, tracking project progress, and material delivery status, and even making payments.
Remote Access to Project Information
The influx of handheld devices and their usage have prompted several project management software vendors to extend the use of their software to remote users such as field superintendents and trade contractors. UDA and Hyphen Solutions provide PDA-friendly versions of their project management software for remote users. There are several software vendors such as Bosch (Punchlist), Virtual Boss, and AirWavz who provide software specifically designed for use on a PDA for performing on-site task management such as job inspections, schedule reviews, and communication from remote locations.
This is a very brief introduction to project management solutions, currently available in the market, and their potential usage in home building projects. Specific software and IT products will be the focus of the Resource Review section of future issues of ToolBase News. For further information, visit the "IT for Builders" section on ToolBase website (www.toolbase.org).