Built Modular: Cost Drivers in Modular Building Systems

An August 2019 report from the commercial construction index showed the modular construction industry doubling its growth over the past five years.

Now an $8-billion industry, modular construction is experiencing even more growth with the onset of the pandemic, with the need for health centers to build quick and efficient solutions for emergency treatment facilities and other solutions growing.

What considerations drive the costs associated with these projects, and how do businesses strategize around these costs? Paul Lubertine, Director of Construction & Contract Services for Vanguard Modular Building Systems, provided his insights.

Many of the project inquiries Lubertine said Vanguard’s recently received have been COVID-19-related, including educational systems trying to plan out various overflow and social-distancing scenarios.

“We are getting orders, putting in units, and doing projects now for schools, but it’s early in the process,” Lubertine said.

While education, commercial and industrial office space, and healthcare are industries doing a lot of business with modular construction these days, the cost factors vary.

“Building use, equipment and utilities required to run the equipment within those buildings determine the cost differences of a project,” Lubertine said.

“The cost drivers that affect a project primarily are building size, its application—whether it’s a typical office, or a classroom, or a laboratory, or a medical facility. Building specifications will impact the cost. But these costs can be controlled through offsite design and manufacturing.”

Looking at all of the cost variables, Lubertine pinpointed a building site’s location and condition as the one that loomed the largest over a project.

“Each site is different and has its own set of challenges,” Lubertine said.

Topography, building placement (is it freestanding or connected to another building), and access to utilities all possess varying cost implications.

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Recent Episodes

When it comes to building a complete IntelliFinishing system, Midwest Finishing Systems is a key partner—and for good reason. As John Claman of IntelliFinishing explains, the partnership isn’t just based on quality equipment, but on years of close collaboration and a shared commitment to delivering top-tier finishing systems. One of the biggest advantages of working…

Planning for growth is a critical part of any capital investment—especially when it comes to finishing systems. One of the biggest advantages of an IntelliFinishing system is its modular, flexible design, which makes it far easier to scale than traditional chain-based monorail or power-and-free systems. As John Claman of IntelliFinishing explains, these systems are built…

Although the company wasn’t known as IntelliFinishing’s back then, the company’s roots date back to 2008, . The story began when Caterpillar identified the IntelliTrak conveyance system as a promising foundation for a new kind of finishing system—one that could offer smarter control and greater flexibility. To bring the concept to life, three companies…