Modular Building: The Difference Between Turnkey & Drop-ship
When you are building a modular home, you can do it one of two ways: turnkey, or drop-ship.
What a Turnkey Modular Home Package Includes
A turnkey modular home package is an all-inclusive construction plan. The builder provides full service, from start to finish, to complete the home and make it habitable. In this scenario, the builder handles every element of coordination and detailing. That means arranging and supervising all the subcontractors and their schedules, and managing any complications that arise.
First, the crew prepares the site and sets the modular units on the permanent foundation. After that, a good amount of finishing work still needs to happen before anyone can live in the home. This includes carpentry, electric, plumbing, HVAC, siding, flooring, painting, and so on. In a turnkey package, the builder handles all design and coordination of professional services. That covers everything from permitting and getting the foundation in, to managing all the work through the certificate of occupancy.
Turnkey is a bit more expensive. However, it is the least stressful option for the homeowner, because the builder is the one on the line for the details, deadlines, and problems.
How Drop-Ship Differs From Turnkey
Drop-ship is the colloquial term for acting as your own general contractor for finalizing the modular construction. The factory can deliver and set up the modular home on the foundation the owner provides. Then the homeowner steps in to orchestrate the subcontractors needed to finish the project.
In a drop-ship arrangement, just as with turnkey, the factory has done much of the heavy lifting. You still need to make all of the same detailed style and décor decisions. Still, the factory handles most of the home construction offsite. But in this option, the homeowners have complete control of bringing their project in for a landing.
The Risks of Being Your Own General Contractor
However, they also have complete responsibility. There could be — it costs approximately 5-10% less when you cut out the general contractor. To complete the job, a homeowner acting as general contractor must become an expert in supervising subcontractors. They also need skills in permitting and budgeting, among others. If they don’t have the knowledge and the time, they may not save as much money on the project as they hoped at the start.
If the owner-builder doesn’t handle materials properly or manage sub-contractors well, they may have to pay more to get it done correctly. Surprises can be expensive. And when something goes wrong, those savings disappear quickly.
Choosing Between Turnkey and Drop-Ship
In our next blog post, we’ll explain when a homeowner might safely benefit from the drop-ship method instead of turnkey, and being their own general contractor.
If you think you’re in that category, call us for more information. You can also check out our schedule of seminars helping homeowners navigate the drop-ship option. We can walk you through the steps involved. That way, you can better judge whether it’s really something you can take on — or whether it’s an over-your-head hassle that’s best left to your builder.
About Westchester Modular Homes Construction Corp.
Westchester Modular Homes Construction Corp. has built thousands of premium custom homes. They usually cost less than homes built with traditional construction methods. Still, they meet the most exacting standards for quality workmanship.
We serve Westchester, Putnam, Dutchess, Orange, Rockland, Ulster, and Sullivan counties in New York. We also serve Sussex County in New Jersey and Pike and Wayne Counties in Pennsylvania.
Learn more by joining one of our convenient virtual tours of our factory. You can sign up at Modular Home | Westchester Modular Homes Construction Corp (wmhconstruction.com)
You’ll learn first-hand about our quality, service, innovation, and agile speed. You will also have a chance to ask your questions about modular home building.
Or call us at (845) 278-1700 and we’d welcome the chance to help you start planning your dream home.
Want to learn more? Download our free guide that outlines the many advantages of building a modular home.
