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Modular
Building Associates
Creditors
have better memories than debtors.
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Modular buildings offer a wide variety of
financial options unavailable with other forms of construction. Below
is a sample of the financial flexibility available with modular construction.
As you can see, you have various financial arrangements available to create
a winning budget formula for your space needs.
I.
PURCHASE OPTION
A.
Cash Purchase Price
$340,496
B.
Finance the Purchase Price (example below uses a balloon loan)
Initial down-payment required
$31,340
Finance payment over 48 months
$5,000
Balloon payment due at end of 48 months $188,966
II.
OPERATING LEASE OPTIONS
A.
Lease payment over 48 month term
$5,580
B.
Initial down-payment for delivery
$65,389
or
Finance 75% of the initial $65,389 down payment over the 48 month term
25% initial down-payment required
$16,347
Additional payment per month for 75%
$1,390
C.
Dismantle and return charges due at end
$36,104
D.
Purchase option at the end of lease term
$200,000
III.
REPURCHASE OPTION
Exercised within two years from manufactured
date $225,000
(Click here to see another financial example)
Below is a cost breakdown of a site-constructed
building. This information is provided to assist you in your overall
budget planning and comparison with modular construction. The percentages
presented are based upon a site-constructed building between 10,000-15,000
square feet in size. Of course, a 5,000 square foot site-constructed
building will have different percentages. You should always consider
your total project costs when evaluating various construction options.
General construction costs for a site-constructed
building
Drywall 7.90%
Air Conditioning
5.26%
Electrical 6.49%
Masonry Veneer 9.94%
Structural Steel
9.14%
Misc Labor and Materials
19.23%
Subtotal 57.96% or $80.62 per square
foot
(This is where modular construction
can save you money and time! Modular construction would have provided
the same building for around $60 per square foot with the ability to save
even more by using a variety of factory installed finishes. This
site-constructed project required over seven months to complete.
Modular construction would have completed the project in four months.)
General construction costs for site development
Concrete 15.52%
Utilities 9.22%
Sitework 7.12%
Brick Screen Wall 5.04%
Subtotal 36.90% = $51.32 per square
foot
Miscellaneous
Bonds/Insurance/Dues
1.62%
Arch/Engineer 1.02%
Furniture/Equipment
2.50%
Subtotal 5.14% or $7.14 per square
foot
Total project costs 100.00% or $139.10
per square foot
You should also include your land cost
into your budget evaluation.
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