Systems Building is the process of residential construction wherein the component parts of the dwelling are built in a controlled environment. This industry is comprised of three primary categories.

• Mobile

• Modular

• Panelized

Along with several secondary categories

• SIPs (Structural Insulated Panels)

• Pre-cast concrete structures

• Steel Frame structures

• Log Homes

• Post and Beam (Timber) Frame

Mobile homes are built to minimum requirements as set forth by HUD. Benefits include speedy setup and portability. Each home is self-contained and simply has to be transported and set up on the customer’s lot. However, mobile homes are not real estate; they are vehicles that are issued titles rather then deeds. The primary disadvantage of mobile home ownership is depreciation. This kind of housing tends to lose value over time and is not an investment but an expense.

Modular homes are similar to mobile in that they are completed for the most part in a factory and shipped in large sections, with final assembly completed on site. This kind of housing differs from mobile homes in that once the unit is assembled it can be considered real estate. While generally considered an improvement over mobile, modular housing is limited in a number of ways. Modular homes face the same over-the-road restrictions as mobile homes; they can be no more then 12’ 6” high and 14’ to 16’ wide. This severely curtails design freedom. Rooms tend to be long and thin, joined with large dropped headers and a double thick wall in the center of the home. Because of these factors modular homes typically do not appreciate in the same way that a traditional home does.

Panelized homes share many advantages with modular homes without the limiting factors. A panelized home is fully engineered using the latest AutoCAD technology. Precise plans and specifications are produced for each assembly in the home including floor systems, wall panels, stairs and roof systems. These components are then fabricated under strict quality controlled conditions by a highly skilled and experienced work force. These components can be shipped using standard size 48’ and 53’ semi trailers, eliminating the need for specialized tractors, chase cars and heavy lift cranes, thereby reducing costs. Most importantly design flexibility is maintained; if a home can be “stick-built” it can also be panelized.

Panelized structures are considered conventional construction by Fanny Mae, FHA and the VA allowing them to receive the same appraisals and financing benefits of site built homes.

While the idea of systems building seems revolutionary, the concept is hundreds of years old. The first recorded example of panelized construction is in England, circa 1624 where panelized houses were used as temporary shelter for northern fishing fleets. During the California Gold Rush, “pre-cut” home packages were shipped by rail from factories in the East to rapidly growing settlements in the West. The Eiffel Tower was constructed by building sections in a factory that were assembled on site, thus utilizing systems building technology.

During the Industrial Revolution, concepts such as standardization, interchangeable parts and automation were applied to housing. Every home today benefits from standardized lumber dimensions, window sizes and even nails.

In the 1950’s roof trusses gained popularity, allowing for stunning and dramatic new looks at a fraction of the cost in both labor and materials. The advent of computer aided design (CAD) is especially useful to truss engineers. Complex hips and valleys, once only found on large and expensive homes, have become commonplace today.

Because of its significant advantages, systems building has emerged as the preferred construction method, not as an alternative to stick building but as its replacement:

• In 1999 65% of all new homes utilized some form of systems building, 36% were fully panelized.

• In 2005 95% of all new homes utilized some from of systems building, 48% were fully panelized.

Advantages of Systems Building:

Cost Control

In a groundbreaking study the Wood Truss Council of America in cooperation with the Building Systems Council of the NAHB, built two identical house plans using two different methods – “stick building” and “systems building”.

Here are their findings –

 

Floor Framing
	Stick Building	Systems Building	Savings
Man Hours	38 Hours	12 Hours	26 Hours
Materials	4256 Bd. Ft.	3147 Bd. Ft.	1109 Bd. Ft.
Wall Framing
	Stick Building	Systems Building	Savings
Man Hours	93 Hours	26.5 Hours	66.5 Hours
Materials	4598 Bd. Ft.	4598 Bd. Ft.	0 Bd. Ft.
Roof Framing
	Stick Building	Systems Building	Savings
Man Hours	256 Hours	99.5 Hours	145.5 Hours
Materials	11,543 Bd. Ft.	7,353 Bd. Ft.	4,190 Bd. Ft.
Job Site Waste
	Stick Building	Systems Building	Savings
Lumber Waste @ Site	17 Yards	4 Yards	13 Yards
Total Man Hours to Dry-In Structure
	Stick Building	Systems Building	Savings
	401 Hours	148 Hours	253 Hours

*Source - Wood Truss Council of America

Foundations and framing account for the majority of cost overruns in stick building. There are several reasons for this. Often builders fail to account for all required materials in their estimate. For example, blocking for sheetrock, cabinets, curtains are not considered at all. Corner and “T” posts, cripples, jacks, beam pockets and extra studs required to transfer loads are likewise rarely accounted for. Examples like these can account for up to a 30% increase in the cost of rough framing.

Optimized Designs:
Owner Builder Solutions’ homes are designed to maximize efficiency and reduce waste. Floor, wall and roof layouts utilize standardized dimensions, reducing wasted labor and materials.

Superior Quality
Beginning with engineering and throughout the construction process quality is built into your new home. Before the first board is cut, the entire structure is “built” in virtual space. Design flaws which could take hours or even days to fix in the field are identified and corrected in moments on the computer.

Skilled Labor The pool of skilled carpentry labor is becoming more and more difficult to fill. This coupled with today’s far more complicated home designs has created a vacuum in the area of qualified framing labor. By centralizing this function in a climate controlled environment, Owner Builder Solutions can attract and retain highly skilled craftspeople. Benefits such as medical, dental and 401k plans are available to the plant staff. Ongoing training in new construction techniques (which is impractical in the field) is commonplace in this setting.

Construction Loan Issues Construction Lenders have long understood the value of panelization. The shorter the course of construction, the lower the risk is to the lender. Additionally, with the cost of the dry-in package guaranteed the client and bank’s exposure to cost overruns is greatly reduced.

Environmental Responsibility Wood is the most environmentally responsible material for use in residential construction. It requires far less energy to manufacture lumber then any other building material. Nine times less energy is used to produce a wood 2x4 compared to a steel stud and twenty-four times less energy is used in a wood framed floor compared to a concrete floor. Each day nearly five million trees are planted. Wood is the only renewable building resource. However, wasting wood is costly. In a controlled environment such as the plant, cut-off, short and badly warped pieces of lumber can be used to maximum efficiency. Lumber which is typically thrown away on a job site can be used for things like fire blocking, sheet-rock nailers, cripples and jacks in the plant. This has the additional benefit of insuring that only the best lumber ends up in the structure of the home because workers are required to “cull” out poor pieces of lumber to stock these other areas.

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