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What is Modular Construction and is it Right for Me?

Grant

Posted on September 15th, 2025

Crane lifting modular construction module on jobsite.

While it has been around for centuries, arguably even millenia, modular construction is currently having a moment as more and more companies adopt it. This cost-effective and convenient build method has applications across industries, from residential to commercial and industrial.

What is modular construction?

Modular construction is the process of building structures off-site as opposed to on-site. The different parts or “modules” of the structure are assembled in a plant or factory and then transported to the construction site, where they are then put together.

Benefits of modular construction

Modular construction offers a wide range of benefits, mostly due to its lower cost and reduced build time. 

Reduced cost

Choosing modular construction for structures can significantly reduce costs by cutting back on things like material waste, weather delays, and labor hours. In fact, it’s estimated that companies can complete projects 30-50% faster when using modular construction.

Safety

By bringing construction indoors in a more controlled environment, you can significantly reduce many jobsite hazards, including those related to extreme heat, cold, and lighting strikes. Not only does this create a safer environment for workers, but it reduces the chance of litigation as well.

Quality control

Because of the nature of modular construction, it takes place under much closer supervision and is more easily managed throughout its process. That means fewer missed issues that could lead to rework down the road.

Drawbacks of modular construction

While it’s convenient and can save a lot of time and money, modular construction also has some potential drawbacks. Here are a few things to consider before deciding whether or not it’s right for you:

High upfront costs

Although modular construction can save money in the long run, the upfront cost can be steep because it requires a facility for construction, rather than allowing construction to take place on a lot owned by the customer.

Limited design options

Because the components are assembled beforehand and then put together later, customization with modular construction can be challenging. This can also make design changes after construction difficult.

Regulatory challenges

Local building codes vary based on location, which makes standardized construction difficult. This can cause delays and lead to additional inspections after construction.

Getting started with modular construction

There are two primary areas of investment for modular construction: the plant for assembling the building modules, and vehicles for transportation. It’s also important to understand the regulations surrounding modular construction in your area and whether it’s practical for what your customer base needs.

Even with the high upfront costs and other challenges, modular construction has the potential to save you a significant amount of time and money over the years. It’s worth looking into!

Track production, equipment, labor, and materials with Raken

Modular construction can make your processes more efficient, but effective resource management is crucial no matter what construction method you choose. Raken offers tools to help with things like equipment and material management, resource scheduling, and production tracking so you can more effectively monitor your budget against estimates and achieve your goals.

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