The cost of modular homes vs. traditional building

The Importance of modular construction since Coronavirus

The construction industry – like most industries – has been significantly affected by the recent Coronavirus outbreak. And the shutdown of building sites across the country does seem to have been something of a catalyst for modular construction, which didn’t grind to a halt in the same way.

While it hasn’t suddenly replaced traditional building, modular construction has been promoted as a method to boost the property market right now, to help overcome the issues caused by the construction industry lockdown. Modular construction also benefits from factors like being less labour-intensive than traditional building, making social distancing more viable, and factories are more controlled environments than building sites, potentially making it easier to establish safe working practices in this new world we all find ourselves in.

This may not affect cost, but the value of reliable modular construction timelines is certainly something that could push this industry forward faster than anyone might have expected a few long months ago.

In addition modular build is better equipped to meeting the net zero carbon targets for 2050 – this in turn is another driver that is likely to increase the appetitive for modular construction in the market; and pose as an alternative to traditional build.

Ultimately, the market choices in respect of modular construction or other modern methods of construction are on the increase. This "availability of alternatives" will allow a wider range of products emerging, which will in turn have an impact on cost.

How does modular construction reduce lead times?

In general, modular home construction makes it far more likely you’ll get an accurate, reliable breakdown of pricing and timescales before the project begins. The entire process is more linear and predictable in the way it unfolds. Throughout the planning, manufacture, site preparation and construction phases, shorter turnaround times almost always result in reduced expense.

For one thing, modular construction is a very high quality process, now largely based around advanced CAD (computer-aided design)/ BIM technologies. This immediately lowers the risk of encountering structural or layout issues during construction.

Where this is the case, a more robust and uniform supply chain in factory assembly also reduces the scope for encountering certain types of problems further down the line. Materials are always fully traceable, and aren’t exposed to unfavourable conditions or haphazard storage in any phase of the process. Supplies tend to be plentiful and consistent, as manufacturers generally have a greater number of projects on the go at any one time.

Checks and certifications

By contrast, potential longer-term issues arising from poor workmanship, design or supplier choices can be very difficult to identify midway through a build handled by multiple subcontractors. Indeed, the quality and speed of modular factory builds now regularly exceeds that of equivalent traditional designs, which remain heavily reliant on the competency and dedication of numerous individuals or companies.

Another easily overlooked factor in the smooth progress and short lead times for modular construction relates to issues of certification and code inspection. Factory builds typically benefit from all necessary third-party checks being performed as an integral part of the design and assembly process. This removes another common stall point for location builds, where inspections are carried out in situ, and problems flagged as they arise.

It’s widely understood that modular homes can provide much greener living spaces than even the most eco-aware bespoke builds. Moreover, prebuilt design will play an increasingly central role in shaping the future development of our housing landscape in the UK and overseas.

Here we should return to the Passivhaus. This eco standard could help the British construction industry reduce its carbon output by 80% - the UK government’s current legislative target. Passivhaus buildings reduce space heating requirements by 75%, compared to the average UK new build. And modular construction in factories allows the level of design and uniformity required to build a Passivhaus.

Below are a few key ways in which modular construction directly benefits local and global environments, and enables the building of Passivhauses:

• Modern factory builds are far more energy efficient, both in terms of the homes themselves, and the methods used to produce them
• Factory design uses modern, high-performance materials to ensure tighter seals, better heat retention, enhanced wear resistance, reduced waste, and sharper focus on issues like consumption, sustainability and recycling
• Modular homes provide a range of options in terms of utility hookups – depending on the most appropriate solution, they can either be mains-supplied, or run on low-impact tank storage, battery, LED and recycling systems
• Reduced need for material and labour transport during modular construction means a significant reduction in the overall carbon footprint of a given project
• It’s a self-feeding cycle: the more modular homes are produced, shipped and constructed, the more efficient their design and manufacturing processes become
• Land development for modular homes tends to be carried out on new plots, using the latest and most eco-aware techniques available
• Because techniques like soil surveys and exploratory digging are fairly standard aspects of plot selection, the location of modular homes often ends up being more environmentally sensitive than for many other building types

Our services

At Foot Anstey, we firmly believe that modular construction and other modern methods of construction (together MMC)  represent a pathway to a more sustainable, cost-effective housing future. With a true advisory approach at the heart of how we operate, our cross-sector team advises funders, developers, suppliers and public sector bodies - including housing associations - on all aspects of MMC.

We bring dedicated expertise and oversight to project areas ranging from timely delivery, asset management, building next-gen housing stock and streamlining supply chains, through to social value generation, sustainability factors and carbon reduction. Using our knowledge of the industry and connections with key industry operators, we’re able to track major trends and sector disruptions in relation to issues including data handling, net zero carbon construction, and mobility/access.

If MMC is a route you’re considering, you’ll find our team is dedicated to supporting you at every stage in the lifecycle of a new modular development project. Our full range of project oversight, financial and legal expertise in the real estate sector includes: