Updating a story MHProNews last posted Sept. 5, 2014 about the dispute between Ratner and Skanska in New York City that has brought to halt the construction of the largest modular tower in the world, concern is growing that if the project fails, financing for future modular projects may be in jeopardy. Forest City Ratner’s Bruce Ratner’s claim that he has “cracked the code” on low-cost modular construction may be on the line for this city following builder Skanska’s claim of “design issues” with the 32-story, 363 unit building that is one-third complete. Ratner’s response says Skanska approved the design at the beginning, has failed to meet deadlines and is riddled with cost overruns.

Industry experts, according to nydailynews.com, however, want clarification that Ratner does not have a design problem before interest will grow in large modular projects. While the lawsuits between Ratner and Skanska may drag on for months, if not years, Tom O’Hara, an executive at modular subcontracting company Capsys, which has built modular housing in the boroughs, said, “When there’s a problem with a developer and a contractor over a bridge, no one says it’s because the bridge is made of steel. People have been building high-rise modular all over the world for decades with no issues.”

Meanwhile, developers Kimberly Frank and Jeffrey Brown have begun renting the seven story, 28 unit, new modular apartment building in the Inwood section of New York. Brown says the modules were made in a vacant lot next to the site, and he saved 15 percent over traditional costs. ##

(Image credit: realesttateweekly.com–Forest City Ratner project)