8 Questions to Ask Before Buying Modular Products in California

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Albeit newer to the construction industry, modular construction has been around for over two decades and is no different than traditional construction when it comes to licensing requirements, contractor responsibility, safety, durability, and installation. For those reasons alone always protect yourself when hiring a modular company / contractor by asking the right questions, and do your research.

1. Are they a contractor?

The first thing to do before hiring a contractor is to check if the person / company you are considering is licensed to build in California. Search the Department of Consumer Affairs State License Board website by their company name, or a person’s name. If they are not listed, then run. By NOT being licensed your business will be solely responsible if something goes wrong.

Special Note: Do not let a contractor just tell you that the person doing the work is licensed or “I am using someone else’s license.” Do your research and get proof. You can’t borrow or use someone else’s driver’s license or contractor’s license in California.

2. Is the person doing the work a contractor?

There are countless stories of people losing their careers and companies getting sued because they did not check for the proper insurances and licenses. Don’t let this happen to you. Many times, sub-contractors are hired by contractors to do the work on site. Unfortunately, there are instances where untrained workers, unfamiliar with the install of modular products, are hired. Just as in traditional construction, check to make sure subcontractors are familiar with the modular product they are hired to install, and that they are insured or, on the payroll of the person you bought the product from. If this person operates their own company, make sure they have the proper contractor’s licenses, insurance and bonds necessary. That way you are covered if anything goes wrong.

3. Do they have General Liability Insurance?

More often than we’d like to think, many companies operate without any insurance at all. If they have it, the policy should clearly state the producers’ name, insured person’s name, a policy number and the effective and end dates. In addition, it will show the limits of coverage. There will also be a place on the bottom that identifies the certificate holder which is where your company name and address should be listed.  View an example by clicking this link.

4. Are they Bonded?

A contractor license bond is a very important type of security that actually serves a purpose among the different parties involved in a contractor project. A contractor’s license bond not only helps you as the contractor, but helps others who could be involved and affected by unethical or costly business decisions.

Contractor’s license bonds legally protect the following three parties: you, the contractor; the company who hired you; and the state bond issuing agency.  By getting the contractor license bond, you are ensuring that you will always provide ethical and professional services. It also protects the public in that you, and the company that hired you, are indicating that you will provide professional services that will do no harm to them. Should someone be negatively affected by an unethical decision made, then they can file against the bond for financial recompense.

5. Are they a manufacturer or a reseller?

Laws in California are very strict for Contractors. Unless they are a manufacturer you should only be asked to provide 10% or $1000.00, whichever is less, when starting a job. You should never pay for more than the performance of the work that is being completed. Remember, they are not a manufacturer you are only buying materials and labor to install. Read more about the laws in California including, what should be included in the contract.

6. Do you know who you are doing business with?

With technology today, you have the ability to find out who you are doing business with at the touch of a button. If they are operating from a house or a PO Box, you should be very cautious. Often times these businesses shut down quickly and disappear instantaneously. If you want to research more via the web, click here. If you don’t have the time, assign the research to an intern or junior employee. But never skip this step.

7. What are 20-day lien notices?

A 20-Day Preliminary Notice, also known simply as a Preliminary Notice, is filed with the County Clerk-Recorder Department by a contractor, subcontractor or material supplier to inform a property owner, direct contractor, project lender or other interested party that they are working on a project and have a right to file a Mechanic’s Lien in the event they are not paid. Preliminary Notices must be filed 20 days from first furnishing labor or materials.

This means that you should not pay the person you have a contract with until you have received confirmation that the bill has been paid. If you do pay them and they don’t pay the contractor or material provider, they can put a lien on the property and in extreme cases, seize the property, auction it off and provide the proceeds back to the land or building owner. In short, you will be paying the bill twice. Even if the person filed for bankruptcy protection, you are still on the hook.

8. Who are you buying from?

One of the easiest ways to check to see if the person or company you’re dealing with is new, or has been in business for a while is to check California’s Secretary of State website. California does a great job in making sure you can check the status of a company, partnership, LLC or corporation. The secretary of state website is a great place to start. You can also check to see if they are an entity and when they were formed.

Special Note: In California, there is no sales tax charged on construction projects that include installation. If the company is charging you sales tax, they should not be. It’s better to have these conversations up front, but if it’s too late, don’t pay the sales tax.

When you are ready to start your modular project, follow these suggestions and ask all of the right questions. You’ll be sure to save yourself a lot of trouble and money. If you’re ready to start your modular construction project today, contact Allied Modular Building Systems or visit our website for more information on modular construction, modular products, and helpful resources. You can also call and one of our knowledgeable staff members will be able to help you.

Allied Modular has been doing business in California for over 27 years and we know exactly what it takes to complete a successful project!

Allied Modular Building Systems, Inc.
642 W. Nicolas Ave.
Orange, CA 92868
CA LIC. # 730592 B

Why Successful Companies Are Using Allied Modular


One of the often-cited positive aspects of Allied’s modular building systems is the speed and ease of design, but just what does that actually suggest? One thing it indicates is cash savings. Speed has a genuine impact on the bottom line, in manner ins which are apparent and also in some that you could not understand.

First off, if the structure becomes part of a commercial enterprise, then it’s component of the procedure of making money … when it is in solution. Whether it’s in solution or not, it’s setting you back cash in property taxes, insurance coverage, as well as perhaps financings, also while it’s still incomplete. So, the sooner you get a new structure right into service, the sooner it begins off-setting its prices and also assisting to make cash.

After that there’s the effect of speed on the expense of building. When putting up a modular building, labor is the most significant cost savings. The longer it requires to create, the even more man-hours are invested, the greater the labor expenses. Jobsite labor is generally the most expensive. Prefabrication means quicker onsite building, and less onsite labor.

Quick construction additionally decreases service provider’s overhead. The service provider has insurance coverage, possibly leased tools, financings with mounting passion, and also other time-based costs that he needs to pass on to the proprietor. Fast design lowers those costs and also enables the professional to make a much more competitive proposal.

Where does the speed originated from? Primarily, from the performance of the system itself. Prefabrication in a manufacturing facility setting with contemporary manufacturing methods is quite quick. Onsite erection of premade parts is similarly quick, because it does away with a lot of the labor-intensive onsite jobs related to various other building systems.

Throughout design, there are certain critical points in the process whose timing has a huge impact on the general speed of conclusion. The concrete foundation needs to cure for 28 days to get to 90 % of its ultimate stamina, there’s no speeding it up. With a modular structure system, bulks of the framework are made in the manufacturing facility, and that could happen concurrently with concrete healing. By the time the concrete is ready, much of the building’s framework has actually currently been developed, and also simply awaits erecting onsite. This is among the resources of speed.

Since the building fasts to set up, it can be confined earlier, another crucial point. When the building is enclosed, the various professions function inside, shielded from the aspects. This is one more source of rate.

So, when planning a new structure, it deserves considering the speed of a modular structure system as more than merely a comfort: it’s likewise an asset. – See even more at: http://www.alliedmodular.com

The Future Is Modular


The space and way people live today is changing quite dramatically from what it was a generation or two ago. With a shift in population sizes to big cities, construction and adequate housing are a constant issue.

At Allied we’ve never been a stranger to solving complex construction issues. We pride ourselves in finding unique solutions for difficult projects.

Modular construction is great for these sorts of applications and is actually being used to help meet the demands of housing in large urban areas. By building apartments in an offsite factory, they can be transported over and quickly assembled with a crane. This yields a cost savings and means to easily manage a large scale construction project.

Modular construction is clearly the future of the way things are built, and we are excited to see it grow in popularity. Check out this great article over at The Guardian for more information.

Uberblox: Modular Construction

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Modular construction is often compared to building blocks as an easy way to understand the process. We build all the components at our facility and then ship them out to your site where they are easily assembled and installed.

A new product demonstrates this process quite well, as it looks like it would be a lot of fun to use! Check out Uberblox and their unique approach to building.

Modular Chinese Skyscraper


One of the reasons that our customers love modular construction is because of how fast it is. Modular construction shifts the construction process to an offsite facility, and all that is left is merely the onsite assembly.

A Chinese company recently took modular to a whole new level by creating a skyscraper in record time. In about 19 days, a 57- story skyscraper was completed. That is almost 3 stories each day! This structure will include places for living and working and was designed with sustainability in mind. Check out this video to see how the whole project came together:

The Patriot Express Guardhouse


The safety of any business is a serious matter. There are many solutions that businesses turn to for safety, but there is one solution that is unparalled in quality and speed. It is our Patriot Express Guardhouse.

We’ve streamlined our production process to quickly create our Patriot Express Guardhouses. We can typically have these guardhouses shipped within 10 days or less!

The Patriot Express Guardhouse comes in four different sizes based upon the needs of your facility. These guardhouses are quality made and incredibly durable. Here are some of the features you’ll find with our guardhouses:

-4” wall panels

-Tempered glass windows

-High quality steel embossed door

-Forkliftable base for easy placement

-Energy efficient lighting

-And more!

Our guardhouses are currently being used by companies like Facebook, all branches of the U.S. Military, and many of the nation’s largest publically traded companies. Our Patriot Express Guardhouses will help keep your facility safe without breaking the bank.

Do you need a guardhouse quickly? Head over to our website to learn more about accessories and other options available for our Patriot Express series. Additionally, you can call us at 888-836-7850 to speak with one of our design managers.