prefab economics

Modular Construction: When Factory-Built Saves Time and Money, and When It Doesn't

Modular construction — building volumetric modules in a factory, shipping to site, and assembling — has been promised as the future of construction for decades. The reality is more nuanced. Modular works well for specific applications (hospitality, multifamily, healthcare with repetitive spaces) and poorly for others (custom commercial, unique geometries). Understanding when modular makes sense, what coordination it requires, and what risks it carries is essential for contractors evaluating modular approaches.