Modern Engineering Solutions

Most Texas MUD developers are leaving $3M or more on the table on every single project. And most of them don't realize it until the infrastructure bill comes in.

Here is how the math works on a typical 550 lot community with homes in the $320,000 to $425,000 range.

Your maximum MUD reimbursement is capped at 10.5% of total home values. On that community that ceiling is $20.4 million.

But the average MUD utility build on a project like that runs $26 to $28 million.

That is a $6M gap sitting right there before you have even looked at ways to close it.

Traditional water and wastewater infrastructure alone on that project is going to cost around $6.5 million. That is the line item we focus on first.

At MES https://lnkd.in/eWVKd6WW, we partner with groups like Flow Utility to bring a turnkey design and wholesale utility model to this problem. They own and operate the facility for the MUD and take on the risk. What that does to the infrastructure cost is significant.

That $6.5 million plan comes down to $2.9 million. That is a 55% reduction.

The $3.5 million that does not get spent is money that stays in the MUD's pocket instead of being fronted by the developer. The developer collects their reimbursements, exits the MUD with zero ongoing expenses, and moves on.

This works best if you are building entry level communities in the $300,000 to $500,000 home range, 100 plus lots, somewhere in DFW, Houston, Austin, or San Antonio.

If that sounds like your project, send me your lot count, acreage, anticipated home price, and where you are in the MUD setup process. We will run a free feasibility analysis and tell you straight whether this model makes sense for your numbers.

What part of the MUD infrastructure cost has been the hardest line item to get under control on your projects?