National Partitions Product; 
Why You Should Build This Way

Clegg Co.
1444 S. Kelly Rd.
Schenectady, NY 12306
518 864 5396 - 800-761-3122
518 864 5474 fax - 866-569-8801

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Stick Built Versus Modular

Relocate and reuse the modular room. The number one reason for buying National is the ability to take the building down and relocate it. This feature benefits the small firm that leases because the modular rooms always remain their asset, when it is time to move, the modular rooms can go with them. This feature also benefits the larger company. Should their needs change and the modular room would be better suited elsewhere then it can be moved and they never lose their original investment.


Redesign to adapt to new requirements.
Companies grow, needs change and so can the modular room. Whether you need more space or need to change your current modular room configuration your not locked into your original design. All panels are interchangeable and can be assembled to fit any current need. The non-progressive post design provides the ability to swap or replace individual panels without disturbing adjacent panels. For example, if a solid wall panel now requires a door it can be switched out for a door panel in a matter of minutes.


Stronger construction
that's suited for an industrial environment. Many rooms today are built using drywall and studs, leaving unsupported cavities that can be punctured easily. National's modular rooms use much stronger materials and utilize an important design feature, fully supported wall substrates using either insulated polystyrene or honeycomb cores, this gives the walls true impact resistance for long useful life. In addition the availability of steel facings adds even more strength.


Better sound deadening
than conventional rooms, to create a comfortable work area even in the loudest manufacturing plants. installing an industrial modular room is more than just putting up walls, it involves utilizing a system that will meet the specific requirements of the plant. One of the most important requirements is sound control, without the proper sound control a room could be rendered useless. National has sound controlled modular rooms that are acoustically designed to out perform any typical conventional construction. The more extreme the noise the more Nationals products are better qualified. National can design a structure for any sound problem.


Faster Occupancy
so you can get back to business. The standard small modular room is assembled and ready to move in, in one day, with conventional construction that time can be weeks. Weeks of sub contractors and inspections can put any company behind schedule and this can translate directly into money lost. The faster you are back to normal the faster you get back to business.


Fewer plant disruptions
that can cause expensive loss of productivity. All construction even modular causes plant disruption, however the longer it takes to complete a project the more disruption you get. A serious evaluation of costs would include this often over looked expense, most people are amazed how fast these costs add up. For an estimate, multiply the number of people in the area of construction by just 10 minutes of distractions, then multiply that by the number of days it takes to complete the project, from this you can determine the number of hours lost, now multiply this by the average cost per labor hour. The loss of productivity is real and expensive.


Less mess
to contend with means lower cost. Sealing off areas, and detailed cleaning of equipment all can be expensive for the average industry, but if a company is involved in food processing or clean environments the costs to shut down and handle this are enormous.


No engineering
or architectural fees to design your buildings, another cost savings. Our design service is included with our package. Each job gets detailed drawings and a complete bill of materials. The product is pre-engineered and can meet any building code. At most you may be required to have an engineer or architect review and seal our drawings this is much less expensive than if he started from scratch.


Permits
are not always needed. Small modular rooms within a plant can usually be assembled without permit . This is never the case with conventional construction, it always requires a permit and can tie up a project for weeks. (consult your local building department)


Warranty and Quality.
National's product is quality inspected before it ships and is manufactured to exact standards. The finished product is never questionable, a clear point that conventional construction can not make. How good is conventional construction? It depends on the work crew. The truth is that most construction, if not closely watched can turn into a disaster. A buyer must always be on the watch for shortcuts and sub standard work, this is never the case with National and the proof of the quality is in the warranty. National warrants their modular rooms for 10 years.


National always costs less
than conventional. Compare any project fairly, each room is to have identical specifications and each is to perform to the same requirements and National will always cost less. Add to this the other benefits previously listed and the much faster depreciation allowed for modular construction (as illustrated below) and you will see why the popularity of National's buildings has grown tremendously and why many companies are so convinced that they no longer consider conventional construction for their in-plant needs. 

Faster Depreciation On our request National's accounting firm Grant Thorton® rendered an opinion of the wall systems with regards to depreciation and its classification. In general, by definition (which has remained consistent over the years), the product is considered equipment and depreciates accordingly. Thus allowing a company to completely write off the expenditure over 5 times faster than typical construction.

How does this advantage effect the cost?

With current tax laws,
the bottom line is that conventional construction's initial cost would need to be over 32% less to match the tax advantages of National product. The following breakdown illustrates this and lists the assumptions.

Assumptions 
Maximum corporate tax is 39.6% 
National product qualifies for 7 year depreciation, yearly write off is 14.3% (1/7 project cost) 
Construction depreciation is 39 years, yearly write off is 2.6% (1/39) 
After seven years National building is completely written off, and only 17.9% of conventional is written off. 
Using the above tax (39.6%) to determine a projects true cost, National returns 39.6% in tax savings to the company where conventional
returns only 7.6% (17.9% x 39.6%) in the first seven years. (100% - 39.6%) = 60.4% modular cost = 92.4% conventional cost x 
(Y being the cost difference) 
Y = .604 - Conclusion, National has a 32% price advantage
(1 - .604 = .39.6). 


*As a foot note, many situations can cause other rulings to apply, Grant Thorton ® does recommend companies discuss the matter with their CPA's to determine if their particular situation would qualify for this depreciation

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