What You Don’t Know About Modular Prefab

In reality, modular and prefab elements are variable systems that help builders create their own designs and esthetics, says Chad Hamilton, project executive at Silicon Valley-based XL Construction, which has incorporated modular and prefab to complete several projects in healthcare, technology, education, and government. 

Finish, materials, color — everything can be customized and made from high-quality materials that are often more durable than conventional construction materials. 

McKinsey says digital technologies are enhancing modular design capabilities and increasingly providing builders and architects with more choices, “countering the old reputation of prefabricated housing as an unattractive, cheap, poor-quality option.” 

With modular and prefab, there’s no need to sacrifice quality or style, says Matt Larson, director of preconstruction at XL Construction. 

“You’re taking what has already worked and has been tried and true on a hundred jobs, and you’re modifying dimensions and picking finishes, but keeping that framework the same,” he says. 

Off-site manufacturing is often mistakenly considered more expensive than conventional construction. When you factor in scalability and versatility of design over time enabling space to be repurposed more easily, the savings become clear. 

Real estate players that switch to modular and prefab for scale can realize more than 20% in construction-cost savings, according to McKinsey. The cost advantages over conventional methods include less need for on-site labor, particularly amid labor shortages that are driving up wages and extending project time frames. McKinsey estimates that modular construction can reduce timelines by 20% to 50%. 

“At times, it can be a misconception that it’s costly because it’s not considered in totality with the other trades that are affected,” says Hamilton, citing drywall, electrical, mechanical systems, and interior finishes. “It’s incumbent upon the project teams to dive in and understand everything that’s included within that total system, and what you’re comparing it to. When you do that, you get a more realistic picture of the true cost of the system [versus] traditional construction.” 

Plus, the more complex a wall system is — for example, with a lot of mechanical and electrical elements as well as different materials such as glass — the more value you get from modular, adds Hamilton. 

Some in the industry believe that modular and prefab are untested and therefore too risky in terms of cost, timelines, and other potentially unknown outcomes. On the contrary, modular and prefab have been around for decades. They’re also increasingly popular in many countries worldwide, given the reliability and predictability of cost and schedule. Technology is also helping to enhance design capabilities and facilitate logistics, McKinsey notes. 

For instance, DIRTT’s proprietary interior construction software enables builders to design a space and estimate the cost of building it right to the penny. The software allows the space to be visualized in 3D on a phone or in virtual reality. Then it empowers real-time changes to design, which updates pricing in real time.  

“You’re effectively solving a lot of dimensional issues early on,” says Hamilton. “[With off-site manufacturing], you can lay things out, and understand constraints. Nothing goes into fabrication until everybody feels like it actually fits inside the building. That forces people to have things solved in the field and reduces risk.” 

Larson says there’s also a higher level of certainty because you know exactly what you’re getting. 

“You’ve got a 3D model that you can walk through and visualize versus a 2D plan on paper that may not show everything that’s really happening,” he says. “When you get a manufactured system, you take all that uncertainty out of the equation. You take the finger-pointing out of the equation; you have one product that has been proven to work together. That’s really the advantage. You’ve got a tested system.”