In my previous article, I introduced what I refer to as the scope gap—the difference between what the modular factory delivers and what must still be completed on site to obtain a Certificate of Occupancy.
That gap is not theoretical.
I’ve seen it play out on real projects over the years in many different ways, but this recent example is a simple one to understand—and one that illustrates the issue clearly.
A Small Detail That Wasn’t So Small
I was working with a developer who was putting together a proposal for a 180-unit single-family modular project.
As part of his budgeting, he had included the cost of the factory, transportation, and set crew. On the surface, the developer thought all was covered.
But there was one assumption built into the proposal that turned out to be incorrect.
He assumed that the set crew’s scope of work included completing the roofing. The proposed set crew contract said “buttoned up” and he didn’t ask what that actually meant.
That phrase sounds clear enough—but in practice, it can mean different things depending on how the scope is defined.
In this case, the manufacturer was providing 24-inch roof overhangs that were shipped as “flipped” assemblies. The set crew would flip those overhangs into place and install a waterproofing membrane.
Technically, the structure would be “buttoned up.”
But it would not be fully finished.
The installation of the final two rows of shingles on those overhangs was not included in the set crew’s scope.
That responsibility fell to the builder.
The cost to complete that work was approximately $160 per home.
Not a large number on its own.
But across 180 homes, that added up to $28,800 in additional site cost that had not been included in the original proposal.
What This Example Reveals
Nothing about this situation was unusual. I’ve seen similar examples dozens of times over the years.
The factory performed as expected.
The set crew performed as contracted.
The issue was simply this:
The scope was not defined with enough precision. The manufacturer’s building system was neither explained nor understood.
A single phrase—“buttoned up”—was interpreted differently by different parties.
And that difference created a gap. A potentially costly gap.
Not in construction.
But in understanding.
Why These Gaps Matter
In traditional construction, gaps like this sometimes get worked out over time.
In modular construction, they don’t.
The factory is moving.
The schedule is compressed.
Decisions happen earlier.
If the scope is not clearly defined up front, the impact shows up later—when changes are more difficult and more expensive to address.
What looks like a small oversight early in the process can become a meaningful cost item when multiplied across an entire project.
A Practical Takeaway
Developers considering modular construction should approach scope definition with one simple mindset:
Assume nothing. Define everything.
Especially when it comes to:
• what the factory is delivering
• what the set crew is responsible for
• what work remains on site
• who is responsible for completing that work
Phrases like “buttoned up,” “substantially complete,” or “ready for finish” may sound clear—but they often leave room for interpretation.
And in modular construction, interpretation is where problems begin.
Over more than four decades in the modular industry, I’ve seen how early decisions—particularly around scope, coordination, and factory selection—can shape the outcome of an entire project. For developers and builders considering modular construction, bringing experienced perspective into the planning process can help avoid costly missteps and lead to better results.
If you are serious about continuous improvement, reach out to us via email. We’ll schedule a brief phone call to explore the possibilities. Contact Gary at: [email protected], contact Bill at:[email protected]. We’ll respond promptly and schedule a brief call.
