Reduce Cost

Based on recent US modular projects, modular projects can result in cost savings of approximately 5 - 15% from a conventional site built project, primarily due to a reduction in time based activities. Pilot projects (projects that are built with a newer team with less modular experience) will be either cost neutral or start to see some beneficial reductions and increases. Having an experienced modular architect or consultant on the team will significantly help in realizing savings. Better cost reduction results will come in subsequent projects by a team experienced in modular construction, brought to scale (over 12 units). These projects can see further cost savings, brought on by a reduction in time-based project activities, manufacturing efficiencies, modular repetitive design, reduction in financing costs, and additional income from earlier occupancy. Cost trending will be up for conventional construction. Cost trending will be downwards and then plane off for modular construction.

Project Cost $/Unit

Modular pilot project

Conventionally constructed

Future modular projects to scale

$200,000

$100,000

$150,000

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