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Step 01
Study one success and one overrun side by side
Vancouver delivered 606 supportive homes in about eighteen months. Toronto's initiative ran 63 percent over budget and five to thirteen months to occupancy. Same method, same building type, same country, opposite outcomes — and the auditor told us why.
- Toronto Auditor General — Modular Housing Initiative report (2023) — read the findings on site due diligence, cost tracking and change orders in full
- BC Gov News — temporary modular housing programme (2019)
- Pillar 05 · Case studies — 'Public programmes'
You should now be able to answerWhich three management failures did Toronto's auditor identify, and which of them happened in the factory? -
Step 02
Standardise the typology before you procure
Modular economics rest on repetition. A programme that lets every site have its own design has bought site-built economics with factory risk. Hong Kong, Singapore and BC standardised first; Canada's Housing Design Catalogue is an attempt to do it nationally.
- CMHC — Canada's Housing Design Catalogue is ready to use (Oct 2025)
- HKSAR Government — MiC in public housing (Mar 2023)
- Pillar 03 · Codes — 'The design-standardisation track'
DoReduce your programme to the fewest unit types and building configurations that meet the need. Pre-engineer them as modules. Count what you have left.You should now be able to answerHow many distinct designs does your programme require, and have they been pre-reviewed as modular by the authorities that will permit them? -
Step 03
Commit to a pipeline, not a project
The most valuable thing a public buyer can offer this industry is not a grant but a decade of predictable orders for the same thing. Factories invest against backlog; they close on pipeline gaps. Harbinger's Vallejo plant, ninety percent affordable housing, is the 2026 example.
- Pillar 09 · Consolidation year — 'Harbinger: the third strike' and 'Alberta consolidates'
- Build Canada Homes — MMC Request for Information (Feb 2026)
- Pillar 01 · Market — 'The government bet'
DoDraft the volume commitment you could defend across an electoral cycle: units per year, for how many years, with what standardised product. If you cannot commit to more than one project, plan for site-built economics.You should now be able to answerWhat volume, over what term, are you prepared to publish — and what happens to a factory that tools up for it if the second year's funding is cut? -
Step 04
Write wage terms a factory floor can meet
Oregon, New York and Pennsylvania tried to extend site-based prevailing wage into factories; the industry sued and lobbied. Neither side asked the question public buyers must answer: on what terms does factory work count as public work? Write those terms into the procurement.
- Pillar 08 · Prevailing wage & the labour question
- Bond, Schoeneck & King — legal challenge to New York's off-site prevailing wage expansion (2026)
- MBI statement on Pennsylvania SB 908 (Jul 2025) — the industry's operational objections
You should now be able to answerDoes your procurement define a factory wage classification, an area rate, an apprenticeship ratio and a reporting method for a multi-project floor — or does it import a job-site rule and hope? -
Step 05
Set site-readiness and contract controls before the budget is fixed
The factory keeps its schedule. Programmes lose theirs on site and in change orders approved without review. Budget only after due diligence; track cost in one place; make change control formal. These are the auditor's recommendations, in advance.
- Toronto Auditor General — recommendations section
- Developer's trail — Step 6, 'Get the site ready before the modules are'
DoWrite the site-readiness gate: what must be complete, verified by whom, before a module order is released. Put it in the contract.You should now be able to answerWhat is your site-readiness gate, who signs it, and what happens to the factory order if it is not met? -
Step 06
Read the vendor's proposal with the two evidence bars
Every proposal will cite '20–50% faster' and 'up to 20% cheaper'. The first is robust; the second is McKinsey's own exception case. Accept schedule certainty as the value; treat cost parity as the target; and price the approvals, transport and financing frictions a site-built bid does not carry.
- Pillar 02 · Cost & schedule — 'Two claims, two evidence bars'
- Pillar 07 · Reading the trade body
- Terner Center — Potential Pathways (Mar 2026): demand aggregation and financial-risk themes
You should now be able to answerWhich claims in the proposal are schedule claims, which are cost claims, and what conditions does each depend on that your programme does or does not provide? -
Step 07
Plan for disaster recovery before the disaster
Factory speed is necessary and nowhere near sufficient for fast rebuilding. Altadena's modular ADUs moved in months; Lytton's rebuild took years, held up by remediation, insurance and permitting. Pre-approved designs and standing supply arrangements are what convert factory speed into occupancy.
- Pillar 06 · Sustainability — 'Disaster rebuild: Altadena and Lytton'
- MBI · Rebuilding Hope — Lahaina modular housing (industry account; no independent assessment yet)
- Village of Lytton — first municipal building rebuilt since the 2021 fire
You should now be able to answerIf a wildfire took two hundred homes in your jurisdiction next month, which pre-approved modular designs and which factories could you call on, and what would delay the first foundation?
Check yourself
If you can answer these without looking, you have finished the trail. If not, the step number tells you where to go back.
- Name the three failures Toronto's auditor found and where each occurred.
- State the number of standardised designs in your programme and their pre-review status.
- Give the volume commitment you can defend across an electoral cycle.
- Describe the factory wage classification in your procurement.
- Recite your site-readiness gate and who signs it.
- Separate the schedule and cost claims in the last proposal you read.
- Name the pre-approved designs and factories in your disaster-recovery plan.