School Climate & Safety

Builder of Modular Schools Closes; Projects Stalled

By Joetta L. Sack — March 08, 2005 3 min read
  • Save to favorites
  • Print

The recent closure by a Southern California manufacturer of modular buildings has left several districts there stranded with half-completed school projects.

TurnKey Inc., a privately held company in Temecula, Calif., that built modular classrooms and other school facilities, filed for voluntary dissolution, in which directors and most stockholders agree to shut a company down.

It was the second modular-classroom manufacturer in Southern California to shut down in the past half-year. In August, Moreno Valley-based Aurora Modular filed for bankruptcy, also leaving behind several unfinished projects.

See Also

The shutdowns come as the modular industry, by and large, is enjoying a robust period.

Worldwide, the construction and sale of modular, or factory-built, commercial facilities is a $5-billion-a-year industry, said Tom Hardiman, the executive director of the Modular Building Institute, based in Charlottesville, Va. School facilities—mostly in California and Florida—account for about $1.5 billion of that market, he said.

“The advantage we provide is not cost savings … but time,” said Mr. Hardiman. A factory-built facility can be finished in nearly half the time of a school built on site, he said.

Meanwhile, one of the districts most affected by TurnKey’s closure is the 140,000-student San Diego Unified School District, which had contracted with TurnKey to build dozens of classrooms at four schools at a total cost of $34.5 million. One project is nearly complete, and the district was about to begin construction on two others. One was at the beginning of the design phase.

The company’s shutdown in January will translate into delays in the opening of the schools, or portions of the schools, said Bob Kiesling, the district’s chief facilities executive. He said he expected the district to recover all of the money lost by the TurnKey’s closure through the insurance that the state requires on such projects.

“If a construction entity goes out of business, you’re out of luck, and you need to have safeguards in place to complete those programs,” said Tom Kube, the executive director of the Council of Educational Facility Planners International, based in Scottsdale, Ariz.

“It’s bad enough we have to house our kids in modular classrooms,” he said, “but it’s even more dreadful when a company like this goes out of business and leaves districts stranded.”

Several telephone calls and e-mails to two TurnKey officers seeking comment for this story were not returned. A hearing on the company’s dissolution in the Riverside County Superior Court was postponed from last month to early this month.

A June 2004 press release from the company said that TurnKey was founded in 1998 and had grown since 1999 from just 12 employees to 330.

Quick Expansion

That quick expansion could have led to the company’s demise, said three California architects and facility planners familiar with TurnKey, who asked not to be identified.

“They had a reputation for more marketing than substance,” said one architect. “They overexpanded and sold to the moon.”

The company advertised a design process that prevented mold and cut down on maintenance costs. As part of that process, prebuilt construction components would be shipped to a school site and then attached to a concrete foundation. The company said the process cut down on building time and cost about 20 percent less than traditional construction.

But one former employee interviewed for this story, who asked not to be identified, alleged that TurnKey preyed on small districts that were not well versed in construction practices. The company, according to the former employee, had lawyers who wrote stringent contracts that did not allow for any change orders in construction. The company had also offered some districts temporary financing until they could receive state money for their construction projects.

But, according to the former employee, if a district asked for a change or could not secure all the financing within the specified period, TurnKey voided the contract and demanded that the district pay all the costs.

According to news reports, some former TurnKey employees had asked state and federal officials to investigate the company’s labor practices and handling of retirement accounts.

Mr. Kiesling of San Diego said that district officials there had researched the company, including visiting its factory, to determine that TurnKey could handle the district’s volume of the work.

“They gave an excellent product—the school building that they were mostly done with is very good quality, and was a very good price,” Mr. Kiesling said.

Reporter-Researcher Marianne D. Hurst contributed to this report.
A version of this article appeared in the March 09, 2005 edition of Education Week as Builder of Modular Schools Closes; Projects Stalled

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
Unlocking Success for Struggling Adolescent Readers
The Science of Reading transformed K-3 literacy. Now it's time to extend that focus to students in grades 6 through 12.
Content provided by STARI
Jobs Regional K-12 Virtual Career Fair: DMV
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
Restoring Writing in Grades K-3 as a Core Pillar of Literacy
Explore research on handwriting automaticity and sentence construction, plus strategies to improve writing instruction across grades K–3.
Content provided by Learning Without Tears

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School Climate & Safety School Buses Should Have Alcohol Detection to Prevent Drunken Driving, NTSB Says
The push follows a West Virginia crash that forced a student to have his leg amputated.
4 min read
Emergency personnel respond to the scene of a bus crash, March 4, 2024, on West Virginia Route 16 in Calhoun County, W.Va.
Emergency personnel respond to the scene of a school bus crash on March 4, 2024, on West Virginia Route 16 in Calhoun County, W.Va. The crash, which resulted in one boy having a leg amputated and other student injuries, has led the National Transportation Safety Board to recommend that all school buses feature alcohol detection systems that disable the vehicle if the driver is impaired.
WCHS TV via AP
School Climate & Safety Steps to Follow for a Smooth, Successful, and Safe Graduation Ceremony
Graduation ceremonies pose unique logistical challenges for school districts. Preparation is key.
5 min read
There was minimal police presence as the Los Angeles County Sheriff's department kept an eye on the Maywood Academy High School graduation ceremony at East Los Angeles College in Monterey Park, CA on Thursday, June 12, 2025.
Law enforcement kept an eye on proceedings at the Maywood Academy High School graduation ceremony at East Los Angeles College in Monterey Park, Calif., on June 12, 2025. Graduation ceremonies pose a unique logistical challenge for school districts, with many considerations to take into account.
Myung J. Chun / Los Angeles Times via Getty
School Climate & Safety Q&A Restorative Practices Aren't Consequence-Free, Says a Student Discipline Expert
Consistent consequences are important to managing student behavior, says the author of a new book on discipline.
6 min read
Students pass a talking piece during a restorative justice exercise at a school in Oakland, Calif., on June 11, 2013.
A student receives the talking piece from another student during a restorative justice session at a school in Oakland, Calif., on June 11, 2013. Nathan Maynard, the author of a newly released book on student discipline, says restorative practices are often misunderstood.
Lea Suzuki/San Francisco Chronicle via AP
School Climate & Safety States Push AI Weapons Detection as Part of School Safety
Three states are considering whether to require weapons-detection systems at school entrances.
5 min read
A display indicating a detected weapon is pictured on an Evolv weapons detection system in New York City.
A display indicating a detected weapon is pictured on an Evolv AI weapons detection system in New York City, on March 28, 2024. Lawmakers in Georgia are weighing a bill that would require all public schools to have weapons-detection systems or metal detectors at building entrances. While supporters say the systems make schools safer, critics say the technology has limitations.
Barry Williams/New York Daily News via TNS