Modular construction can be cheaper than traditional construction methods for a number of reasons:
- Economies of scale
Modular construction manufactures modules in a factory setting using a standardised process. This means that they can benefit from economies of scale, producing large quantities of identical modules at a lower cost per unit than a traditional construction site can. - Reduced material waste
Because modular construction is a more controlled environment than traditional construction sites, there is, naturally, less material waste. Materials can be reused and recycled more easily, leading to lower material costs overall. - Reduced labour costs
Modular construction can require less manual labour than traditional construction because much of the work is done in a factory setting, with less need for tradespeople on site. This can lead to lower labour costs and faster construction times. - Faster construction times
Modular construction can be faster than traditional construction methods because much of the work is done in a controlled factory setting, with minimal delays due to weather, or other site-specific factors. This can reduce construction time, which can translate into cost savings. - Lower financing costs
Because modular construction projects typically have a shorter construction schedule, the financing costs can be lower than those for traditional construction projects. This can help to reduce overall project costs.
Reducing construction costs in the above ways means that, ultimately, modular projects are cheaper for the client, too.
