Introduction

From a developer’s perspective, timely payments of invoices are critical to getting a project finished on time and under budget.  But, what if your lender refused to issue the next draw?  You’ve paid all the interest payments on time and achieved the agreed upon milestones, so what basis would the lender have to withhold the next draw?  In the case where you are financing a modular construction project, there is one scenario that can cause this to happen.Read More

Introduction

Over the past 5 years, construction costs in the Puget Sound region have risen by over 30%.  Expansion from large tech firms continue to drive high demand for commercial projects. At the same time, increased levels of hiring have also driven demand for housing and the shortage of available construction labor has resulted in rising construction costs.  While we have seen some tempering of construction prices recently, it is important to consider that the largest section of the US population is the Millennials.  As the average age of Millennials are between 25-29, this demographic is the prime age for family formation, which will likely continue to drive demand for housing for years to come.

The Modular Method

Modular construction has gained increasing popularity over the past few years as an alternative to traditional construction methods, promising reduced project timelines and increased cost savings.  A recent article by Mckinsey showed that modular could speed up construction times by as much as 50% and has the potential to reduce costs by 20%.  But to this date, there has been no evidence of consistent savings using modular construction and in some cases, the modular route ends up being more expensive.  This article answers the question of what types of projects would benefit the most from modular construction and what types of projects would be better suited using traditional methods.Read More