The Challenges Facing Modular Build Companies

As the construction industry grapples with a shortage of skilled labor, modular build companies offer a solution that is billed as faster, cheaper and better quality than traditional building methods. The concept is simple: buildings are made in a factory-controlled environment and transported to the final building site where they’re assembled with cranes. But the reality is that the method has been slow to gain traction due to complex regulatory challenges and cultural changes that require new ways of working for both general contractors and subcontractors.

Modular building companies offer a variety of products, from individual modules to complete buildings. They can be custom built to a client’s specifications or based on prefabricated plans. They may include electrical and plumbing, drywall, flooring and insulation. They can also be outfitted with windows, doors and trim.

In addition to lowering costs and timeframes, modular modular build companies uk construction offers environmental benefits including reduced emissions and waste, according to the McKinsey Global Institute. It can also reduce the need for landfill space and create more efficient use of resources. But the industry must overcome a number of obstacles before it can realize its full potential, says the institute.

The first challenge is the need for a change in culture and processes. The industry needs to train architects, engineers and design professionals on how to work with modular projects. In addition, contractors need to develop new ways of collaborating with subcontractors, and the suppliers that serve both traditional construction and modular projects will need to adapt to an entirely different go-to-market approach.

Another problem is that many of the same building codes and approvals apply to both conventional and modular construction, but the process varies by jurisdiction. For example, in some states, modular buildings are subject to local inspections and can’t have walls closed or finishes applied until the unit is delivered to the site. In others, the buildings are inspected offsite but must undergo a similar process at the site to receive local approvals.

While these obstacles exist, some builders are succeeding with modular construction. Some are taking it to extreme climates, where the harsh winter and short construction season make conventional construction difficult or impossible. For example, Nunavut-based Modular Build Ltd. was founded by Amanda Doiron and Stuart Rostant who saw the need for better Arctic homes. They teamed with the construction technology company MiTek to develop homes that can be fully built offsite, shipped in pieces and stacked in place by a crane.

Other builders are experimenting with modular construction in less challenging environments, such as commercial office spaces and classrooms. They’re looking to cut their project lead times and increase the flexibility of their spaces by working with a smaller group of modular manufacturers. They may be able to coordinate delivery dates more easily and negotiate prices, and they can focus on their clients’ unique requirements. For instance, some buyers may prefer to work with a modular manufacturer that offers diversity status because that can be an important consideration when bidding for projects with municipalities, the federal government or other large buying organizations that have established formal business policies and practices around increasing the diversity of their supplier base.