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
1-888-836-7850

Why Successful Companies Are Using Allied Modular

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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 Experts Agree About Modular Construction

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The experts agree; construction is changing. What was once the standard of “stick- built” construction has shifted to modular construction for a wide variety of reasons.
Modular construction is taking the industry by storm as it presents an alternative to construction that is not only more efficient to the build, but also a better solution for the environment. This is achieved through modular’s unique structural wall panels which are fabricated with materials that are resistant to termites, warping, and shrinking.
While we here at Allied Modular focus on partnering with businesses to provide modular solutions, modular construction is growing in all sectors of construction. Global Construction did a wonderful write up on construction, and you can read more about it here.

Do You Know How Solar Power Works?

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We’ve been building green solutions since our company’s creation over 25 years ago. We saw a way to do things differently, and we’ve been providing sustainable solutions ever since.

Solar power has been around for a long time, but do you know how it works? Check out this informative video from DNews that shows how we can get electricity from the sun:

Modular Solutions In China

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China is growing in leaps and bounds and so is their need for housing. Housing needs to be affordable and to be set up quickly. Chinese companies are continuing to break construction size and speed records, and they have been able to do this thanks to modular construction.

One company out of Changsha, China recently built a 57-floor skyscraper in just 19 working days. They used modular construction to accomplish this speed and averaged about 3 floors per day. You can definitely expect to see more projects like this in the future! Head over to MSN to learn more.

Have You Seen Our Stone Brewing Project?

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Did you know that Allied Modular has a YouTube page? We’ve been privileged to bring cameras to some of our large products and film the whole process as well as hear what our customers had to say about our install services and modular wall systems. Check out this video below of our project at Stone Brewing Company, and be sure to visit our YouTube Channel!