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.
A turnkey modular home package is an all-inclusive construction plan where the builder provides full service, from start to finish, to complete the home and make it habitable. In this scenario, the builder is responsible for every element of coordination and detailing. This means arranging and supervising all the subcontractors and their schedules, and managing any complications that arise.
After the site has been prepared and the modular units are set on the permanent foundation there is still a good amount of finishing work that is needed before anyone can start living 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, from permitting and getting the foundation in, to managing all the work through getting the certificate of occupancy.
While turnkey is a bit more expensive, it is the least stressful option for the homeowner, because the builder is the one on the line for the details, deadlines, and problems.
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 provided by the owner, then the homeowner steps in to orchestrate the subcontractors needed to finish the project.
In this arrangement, the factory has done much of the heavy lifting. While all of the same detailed style and décor decisions will still need to be made, most of the home construction is handled in a factory offsite. But in this option, the homeowners have complete control of bringing their project in for a landing.
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 good homeowner-general contractor must become an expert in supervising subcontractors and managing permitting and budgeting, among other skills. 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.
For our next blog post, we’ll address when a homeowner might safely benefit from the drop-ship method, and being their own general contractor.
If you think you’re in that category, call us for more information, and to check out our schedule of seminars helping homeowners navigate the drop-ship option. Let us help educate you on the steps involved so that you can better assess 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 usually at a lower cost than traditional construction methods while still meeting the most exacting standards for quality workmanship.
We serve Westchester, Putnam, Dutchess, Orange, Rockland, Ulster, and Sullivan counties in New York, along with 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 and 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.
