They say that Rome wasn’t built in a day, but modular might be changing that!
Modular construction techniques are benefiting both hospitality and multifamily industries. Former barriers to entry for developers and owners are shrinking as more architects, contractors and financial institutions understand how to work in a modular arena.
These are sweet spots for modular construction:
- Scalable developments. Ideally over 50 units (100 rooms) to reach efficiency.
- Markets with high local construction costs or where building seasons are limited by inclement weather.
- Rectilinear projects create the greatest efficiencies.
- Projects demanding consistency in final project. Modular units are built in a controlled environment.
Modular hospitality appears to have found a strong niche in the select service market. Rooms are produced much faster than with on-site construction. Three modules per day equates to roughly 150 rooms in five weeks plus one-week to place on site. This can significantly reduce the construction schedule.
The financial impacts of a shortened overall construction period can outweigh the lower costs of labor in certain markets. A two-year construction project can be condensed to one year, going to market in half the time. An owner can convert their construction loan into a lower cost permanent loan earlier while at the same time creating revenue, too. These factors have a big impact on a project’s bottom line.
There are numerous projects and applications for modular. We are working with clients to understand value and efficiencies. If you aren’t learning, you aren’t growing! Here are additional benefits of modular construction:
- Sustainable: Modular construction produces less waste than traditional.
- Strength: Modular units are supported by 6 structural sides.
- Safety: 96% of contractors report that leveraging modular helps them improve or maintain safety of their crews.
- Weather Protection: Modules are shipped fully contained and sealed.
*(information provided from Deluxe Modular)
While modular construction might not be for everyone, it is coming and will be readily seen as more people see the benefits. CSHQA is learning what is required on the design side to provide our clients with the opportunity to use modular construction.