On-Site House Factory
Summary
These associated savings enable the builder to "buy-down" the mortgage rate by one percent or more, pay closing costs and fees, and offer sale of the home with no down payment required since its sale price is sufficiently below its appraised value. This cost reduction is largely due to the method in which the homes are constructed - in a factory located at the subdivision site. The entire home (less the foundation) is constructed in a factory setting and is transported as a single unit to the home site, set in place by crane. This concept, first developed and patented in the United States, saw its first implementation in Poland as a measure to build affordable housing.
Details
International Operations, LLC uses a patented method to construct, transport, and set entire houses on pre-constructed foundations that they claim reduces the overall cost of construction by 30 to 40 percent. Like manufactured and modular housing, International Operations is able to trim down the cost of labor and materials for constructing homes by building them in a factory setting. Unlike traditional factory-built homes, International Operations transports the entire house to the site, not just modules, including garages and porches. Further, they are not limited to height and width restrictions as are other forms of factory housing, since they travel short distances within subdivision roads only.
Installation
| International Operations begins with purchasing a tract of land for the planned housing development. They then construct a 70,000 square foot factory with 14 large bays that open to allow the home to pass through when the construction is complete. A house takes typically about 14 days to construct. They use traditional subcontractor labor to build the house within the factory. Each trade then has access to the home for 24 hours, greatly reducing the construction time cycle. Traditional construction materials and techniques are used, so little worker training and orientation is necessary. Once the home is complete, it is transported to the site where it is set, by crane, on a completed foundation. Electrical, plumbing, and air conditioning hook-ups are completed; and, says the developer, the house is ready for occupancy the same day. When the development is completed, the factory can be sold for use as retail space or other use. The developer for the current project negotiated to transfer the factory to the county for use as a community center for development tax abatements that equal the cost of the factory. |
Benefits/Costs
Cost The primary benefit of this method of home construction is its efficiency and construction cost reduction. According to the developer, homes produced in this fashion cost approximately 30 to 40 percent less than site-built homes. Year-round ideal working conditions is the reason given for these savings. With production occurring around-the-clock, the construction cycle time can be radically reduced - daylight is no longer a necessity.
Limitations
This method of construction requires a larger capital investment than conventional site-built homes. It is, therefore, most cost-effective with high-volume developments. The footprint of the home is limited by what can be transported through the development, limiting it to simpler, affordable house designs.
Code/Regulatory
Homes are built to meet local building code requirements. Because the houses are transported from the factory to the site on private roads, state and local over-the-road laws do not restrict their height and width.
Availability
A development is underway using this system in Swartz Creek, Michigan, and the construction of four model homes is expected to begin in mid-1999. The first US development occurred in Davison, Michigan. International Operations, LLC desires to license this technique to builders in other areas.
Contact(s)
Do you have a specific question about this technology and/or its 'real life' applications? Try the contacts listed below:
International Operations, LLC
6992 Lancaster Lake Court, Suite 95
Clarkston, MI 48346
248-620-5270
Fax 248-620-5370
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