Built Modular: Cost Drivers in Modular Building Systems

August 4, 2020

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

Strategies for Successful Automation Implementation
View episode

Today, on “On Time In Full,” hosted by Gabrielle Bejarano, we delve into the realm of supply chain automation with our guest, Fred Rudolph, Senior Account Executive at Designed Conveyor Systems. This episode explores how automation can revolutionize supply chain operations, making them more cost-effective and responsive to market demands. Key Questions Explored: Creating a […]

powder coating
View episode

  In this video presented by Kasa Companies’ Driving Automation, President of Prime Powder Coating, Cory McCabe, delves into his company’s transformative use of the IntelliFinishing system. This discussion provides insights into the latest advancements in powder coating technology and its impact on industry operations. McCabe highlights how the IntelliFinishing system has expanded Prime Powder […]

View episode

    The age-old adage of “knowledge is power” has evolved into “knowledge is digital.” In today’s fast-paced manufacturing world, there’s a gap widening between experienced craftsmen, who have honed their skills over decades, and the tech-savvy newcomers who expect instant access to information. This so-called “skills gap” is far from new, but what sets […]