These days, modular buildings are everywhere, from school campuses to laboratories, retail spaces, and even cleanrooms. Unfortunately, when asking about modular building costs, most manufacturers have to simply throw up their hands because it’s difficult to give exact answers before the design phase. But in this article, we’ll try to add a little clarity by narrowing in on the biggest factors that influence how much they cost. We’ll also take a look at how modular construction compares to traditional building methods. (If you’re looking only to determine the cost of a modular office, check out our article on that specifically here.)
The Most Important Factors in Modular Building Costs
In truth, there are many factors that can inflate the costs of modular buildings. However, we’ve singled out the biggest ones to help you understand what drives prices.
1. Size
As you may expect, with modular buildings, the bigger they are, the more they’ll cost. However, this does not mean that the cost per square foot will go up; in fact, larger buildings often cost less per square foot than smaller ones, as manufacturers tend to offer discounts.
A single-room break area in a warehouse will cost less than a multi-story office building. Adding a second floor doubles the square footage, but it also may need a stronger foundation, more materials, and whatever features you choose for it.
In short, the bigger and more complex your space, the more you’ll pay in the end.
2. Type of Building
The type of modular building you choose will also affect the final costs. A modular classroom and a modular cleanroom might be the same size, but the latter will require significantly more costs because of the strict requirements of such spaces.
Each type of building, whether it’s a classroom, mezzanine, conference room, or a guard house, will require different types of panels, materials, designs, and other parts that may vary in cost, which is part of the reason it’s so difficult to put an exact number on the price (before the design phase).
3. Customization & Features
Furthermore, along the same lines, basic buildings will be cheaper. In practice, there are few businesses that order barebones spaces, as many require soundproofing, HVAC systems, extra windows and doors, special lighting, custom finishes, and more. Of course, the more features you add, the more costs will increase.
4. Materials
What you decide to build with also matters. Materials determine the look, but also the longevity of the modular building. Some materials can help prevent damage from chemicals or general wear and tear, and others can be more cost-effective.
Some common low cost materials are vinyl-covered gypsum, fiberglass-reinforced plastic, and PVC. On the more expensive end, there’s stainless steel, high-pressure laminate finishes, honeycomb panels, and more. Panels are often composite, which means they are made of a mix of materials. What you choose will end up influencing the cost.
5. Delivery & Installation Costs
A relatively hidden cost, or at least one that people don’t think about often, depends on location. The more distant your area is from the manufacturer, the higher your transportation costs will be. So, if you’re in a remote location in Alaska, for instance, and there’s not a manufacturer nearby, you can expect to pay a premium for delivery.
Installation is usually billed around 30 to 50% of materials, and freight is also usually billed a percentage of material costs, and is generally around 10%, assuming you’re not too far away.
6. Long-Term Maintenance Costs
Finally, there’s the costs that come after the building has been installed. With modular, though, when used properly, there won’t be heavy maintenance costs. In fact, if you damage a wall panel, it can be easily switched out with another, without having to take down the building. HVAC systems will also need to be taken care of, but in general these costs can be kept to a minimum.
Another great part about modular buildings is their flexibility. They can moved, expanded later, or downsized as needed. This can make a huge difference in terms of return on investment. Because these buildings can be changed easily, there’s no need to demolish and rebuild parts of it, which of course gives it a much greater long-term value.
Modular vs. Traditional Construction
While we’re on the subject, let’s compare the differences between modular and traditional construction with regards to cost.
| Modular Construction | Traditional Construction | |
|---|---|---|
| Construction Timelines | Shorter | Longer |
| Labor Costs | Lower, as fewer on-site labor hours are required | Higher |
| Material Waste | Less waste | More waste, on-site cutting and storage lead to excess |
| Weather Delays | Minimal | Common |
| Change Orders | Fewer, as design is finalized before fabrication | More, as site conditions and unknowns can lead to unexpected costs |
| Site Disruption | Minimal (faster install and fewer workers on-site) | High |
| Total Project Cost | Often lower due to speed, labor savings, and fewer delays | Often higher due to timelines, labor, and unexpected issues |
The Bottom Line
As you can see, modular building costs will depend on many factors, including size, materials, features, location, and more. The more complicated the design, the higher the cost will be. That being said, modular construction can help you save money in a variety of ways, especially when compared to traditional buildings. For an accurate estimate, reach out to Allied Modular today!
