Built Modular: Cost Drivers in Modular Building Systems

+ more

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

Latest

Bitcoin’s Impact on Cash Storage for American Retailers
June 17, 2021
Has the hype around cryptocurrency blinded people to the drawbacks? Is it a payment method or an investment? Will it still be relevant in 20 years? With all the noise around cryptocurrency, it can Read more
Can Instacart Make its Automation Vision a Reality?
June 17, 2021
Some businesses found themselves as well positioned as they could have been for the disruption left in the wake of the COVID-19 pandemic. As the world shifted to remote interaction and online shopping, companies Read more
How Pat Mahomes and NFTs Bring New Life to Fashion & Sports Communities
June 17, 2021
“Sports collectibles have been around forever, and they’re never going to go out of fashion.” The future of the NFT market is up in the air after the market bottomed out, especially for NFT Read more