SmartMarket Report

Prefabrication and
Modular Construction 2020

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Research Partners:
■ Design and Construction Intelligence

SmartMarket Report

Dodge Data & Analytics Prefabrication and Modular

Construction 2020
Chief Executive Officer SmartMarket Report
Neal G. Bibeau
Executive Editor
About Dodge Data &
Dodge Data & Analytics Stephen A. Jones
Research & Analytics/
Analytics
Managing Editor Dodge Data & Analytics is North
Industry Insights
Donna Laquidara-Carr, Ph.D., LEED AP America’s leading provider of
Senior Vice President
Custom Solutions Director, Marketing & analytics and software-based
Communications workflow integration solutions for the
Tim Waal
Jennifer Shelgren construction industry. Building product
Senior Director, Innovation
& Product Management Design & Production manufacturers, architects, engineers,
Dave DiNitto Erbach Communications Group contractors, and service providers
Contributors leverage Dodge to identify and pursue
Senior Director, Industry
Insights Research Bruce Buckley unseen growth opportunities and
Stephen A. Jones Katharine Logan execute on those opportunities for
Timothy Schuler enhanced business performance.
Director, Industry Insights Research
Donna Laquidara-Carr, Ph.D., LEED AP Research Project Manager Whether it’s on a local, regional or
Susan Barnett, MRA, PRC national level, Dodge makes the
hidden obvious, empowering its
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 SmartMarket Report
Introduction

P
refabrication and modular applied on projects, respondents to the
PREFABRICATION AND MODULAR CONSTRUCTION 2020

construction are both experiencing survey were routed into separate lines
a significant expansion of interest of inquiry about either prefabrication
and use as the construction industry or modular construction based on their
seeks to improve safety, productivity, quality, experience level, and this report presents the
cost, schedule and sustainability performance resulting data in two separate sections.
while continuing to face workforce shortages, Key findings reveal both commonalities
cost uncertainties and other challenges. While and contrasts between the two approaches. Stephen A. Jones
major advances have been made in both For example, over three quarters of current Senior Director
prefabrication and modular construction users of each are receiving a significant level Industry Insights Research
Dodge Data & Analytics
since Dodge Data & Analytics published its (medium, high or very high) of these seven
first SmartMarket Report on these topics valuable benefits from their use: Stephen A. Jones leads
in 2011, many of the underlying drivers ■  Improved Cost Predictability DD&A’s Industry Insights
Research division. He
and benefits of these approaches remain ■  Improved Productivity
is active in numerous
powerfully consistent in this new research ■  Improved Quality industry organizations
study.Then, as now: ■  Improved Safety Performance and frequently speaks at
■ Improved productivity and quality are top ■  Increased Client Satisfaction
industry events around
the world. Before DD&A,
benefits driving usage. ■  Increased Schedule Certainty
Jones was vice president
■ Positive impacts on budget and schedule ■  Reduced Waste Generated with Primavera Systems
performance are widely experienced. by Construction (now part of Oracle), a
global leader in project
■ Construction sites are greener due to less
But interestingly, the percentages are higher management software.
waste being generated, and safer due to Prior to that, he was
among the users of modular construction for principal and a Board of
working with assemblies and modules
each of these benefits than from the group Directors member with
produced offsite. Burt Hill, a major A/E firm
responding about their use of prefabrication.
(now merged with Stantec).
While practitioners in both studies forecast This study also examines the positive
ambitious plans to increase the amount of impact of BIM on the achievement of benefits
prefabrication and modular construction related to these approaches.
they will do over the next few years, the top ■ Less than a quarter (22%) of respondents

obstacles they cite to achieving those goals who report using no BIM claim that
are also familiar: they experience schedule performance
■ Contractors continue to say that architects improvement from the use of
and engineers are not adequately prefabrication, whereas among the
enabling prefabrication and/or modular companies that use BIM on half or more of
construction in their design solutions. their projects a significant majority (61%)
■ Meanwhile design professionals point to cite improved schedule performance.
Donna Laquidara-Carr,
a shortage of prefabrication facilities close ■ Similarly, with modular construction,
Ph.D., LEED AP
to their project sites and to owners’ lack only 21% of non-BIM users report cost Industry Insights
of understanding of the value of modular performance improvement compared with Research Director
construction as the main reasons they do 46% of those using BIM frequently. Dodge Data & Analytics
not design in these approaches from the Donna Laquidara-Carr
Clearly the future is bright for continued
beginning of a project. currently provides
growth in use of both prefabrication and editorial direction,
To help address this, one of the main modular construction, and this report analysis and content
objectives of Dodge’s new study is to will serve as a benchmark of our recent to DD&A’s SmartMarket
Reports. Prior to this
provide all industry participants with progress and a baseline against which to
position, she worked for
more quantification of the benefits of track exciting future expansion. Dodge nearly 20 years with DD&A’s
prefabrication and modular construction, wishes to thank Bradley Corporation, the Dodge division, where she
especially the latter, which has experienced Modular Building Institute, Pinnacle Infotech, gained detailed insight into
the construction industry.
dramatic growth since the previous study. the Mechanical Contractors Association
Because of the differences in how, when, of America and Skender for supporting
where and why each approach is being this research.

Dodge Data & Analytics   1  www.construction.com SmartMarket Report

 SmartMarket Report
PREFABRICATION AND MODULAR CONSTRUCTION 2020

TABLE OF

CONTENTS
4 Executive Summary

7 Data
7 Introduction

8 Prefabrication Trends
8 Most Frequent Building Types for Use of Prefabrication
Most Frequently Prefabricated Assemblies
11
Impact of Prefabrication on Schedule and Cost Performance
15
Impact of Prefabrication on Seven Specific Benefits
16
Impact of Project Delivery Method on Prefabrication
19
Prefabrication Suppliers and Procurement
20
Use of BIM for Model-Driven Prefabrication
22
Top Factors That Influenced Use of Prefabrication (Last Three Years)
24
Top Positive Impacts That Will Drive More Prefabrication in the Next Three Years
25
Top Obstacles Inhibiting More Use of Prefabrication
26
27
sidebar Prefabricated and Modular Multifamily

28 Modular Construction Trends

28 sidebar Define Disruption

30
sidebar Hares and Tortoises: A Global Perspective on Modular Construction

Use of Specific Types of Modular Construction

32
Most Frequent Building Types for Use of Permanent Modular Construction
35
Impact of Modular Construction on Schedule and Cost Performance
38
Impact of Modular Construction on Seven Specific Benefits
39
Impact of Project Delivery Models on Modular Construction
42
Selection of Modular Construction Suppliers
43
BIM-Driven Modular Construction
44
Cover Image Courtesy of Skender; Adjacent Page: Image courtesy of Pyatok Architects

Top Factors That Influenced Use of Permanent Modular Construction (Last Three Years)
46
Top Positive Impacts That Will Drive More Permanent Modular Construction (Next Three Years)
47
Top Obstacles Inhibiting More Use of Permanent Modular Construction
48

50 Perspectives of Modular Builders/Manufacturers

50 Differences Between Modular Specialists and Other Respondents
Benefits of Modular Construction
51

62 Owner Perspectives
62 Owner Perspectives on Using Prefabrication and Modular Construction

SmartMarket Report Dodge Data & Analytics   2  www.construction.com

CONTENTS

At Right:
Coliseum Connections, a modular 110-unit
housing development in Oakland, Calif.

Case Studies
52 Using Prefabrication to Mitigate Skilled Labor Shortage Risks
University of Delaware’s Science Technology and Advanced Research Campus, Newark, Delaware
54 Modular Construction and Sustainability’s Triple Bottom Line
The Union Flats Housing Development, Union City, California
56 Doing It Right the First Time
Coliseum Connections, Oakland, California
58 A High-Rise Stylish Modular Hotel Rises in NYC
citizenM Bowery, New York, New York
60 Systemic Modularization
Advocate Aurora Health, Illinois and Wisconsin

49 Thought Leader Interview

Stacy Scopano, Chief Technology Officer, Skender

4 Methodology
6

5 Resources
6

Dodge Data & Analytics   3  www.construction.com SmartMarket Report

 Executive Summary

Design firms and contractors agree that both prefabrication and modular construction are providing significant
PREFABRICATION AND MODULAR CONSTRUCTION 2020

improvements to cost, schedule, quality and safety performance, productivity, client satisfaction and their ability to
reduce waste. These companies are forecasting expanded use of both approaches over the coming years as the benefits
are more widely measured, owners become increasingly comfortable with the process and the outcomes, and the
industry develops more resources to support innovative applications.

Benefits of Using Prefabrication and Impact of BIM on Budget and

Modular Construction Schedule Performance When
Users report receiving many important benefits from Using Prefabrication or Modular
both prefabrication and from modular construction. The Construction
chart below shows the percentages reporting significant Modeling technologies are impacting all aspects of the
(medium, high or very high level) positive impacts from design and construction industry. This study reveals a
the use of each on seven key metrics. strong correlation between companies’ BIM use and
the degree to which they enjoy improved schedule
Benefits From the Use of Prefabrication and
and budget performance from using prefabrication or
Modular Construction (Percentage of Users
modular construction. The findings are similar for both
Citing Medium, High or Very High Levels)
users of prefabrication and of modular construction, so
Dodge Data & Analytics, 2020
percentages in the chart below reflect their combined
Prefabrication reporting of positive impacts, differentiated by their level
Modular Construction of BIM implementation.

Improved Productivity Impact of BIM on Schedule and Budget

Performance When Using Prefabrication or
89%
Modular Construction (Percentage of Companies
93% by BIM Usage Reporting Improved Performance)
Improved Quality Dodge Data & Analytics, 2020
90%
Improved Schedule Performance
90%
Improved Budget Performance
Increased Schedule Certainty 60%
87%
48% 47% 50%
90%

Improved Cost Predictability

30% 28%
81%
88%

Reduced Waste Generated by Construction

81%
86% Companies Not Companies Companies
Using BIM Using BIM on Using BIM on
Increased Client Satisfaction Less Than 50% 50% or More of
of Their Projects Their Projects
80%

86%

Improved Safety Performance

79%
83%

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 Executive Summary  CONTINUED

Forecast for Building Types With Most Forecast for Increased Use of
PREFABRICATION AND MODULAR CONSTRUCTION 2020

Frequent Use of Prefabrication and Prefabrication and Permanent Modular

Modular Construction in the Next Construction in the Next Three Years
Three Years Current users forecast increased engagement over the next
Survey participants predict a high frequency of three years.
prefabrication and of modular construction over the next
Forecast for Increased Use of Prefabrication
three years on many major building types. The summary
and of Permanent Modular Construction in
chart below is based on an index combining their
the Next 3 Years (Percentages Reporting Use on
forecasts for each. (See the Prefabrication Trends and the
at Least 10% of Projects Over the Past 3 Years and
Modular Construction Trends sections of this report for
Forecasting That Level of Use in the Next 3 Years)
more detail on the specific forecast for each.)
Dodge Data & Analytics, 2020

Most Likely Building Types for High

Frequency of Prefabrication and/or Modular More Than 50% of Projects
Construction (Index Based on Respondent 10% to 50% of Projects
Forecasts for the Next 3 Years)
PREFABRICATION
Dodge Data & Analytics, 2020
75%
Healthcare Facilities
62%
82 58%
33%
Hotels and Motels 25% 18%
74 33%

11%
Multifamily 37% 40%
42%
71 22%
College Buildings and Dormitories Past 3 Next 3 Past 3 Next 3
70 Years Years Years Years

Offices Low-Rise (1–4 Stories) Prefabricated Prefabricated

58 Single-Trade Assemblies Multi-Trade Assemblies

Schools K–12
PERMANENT MODULAR CONSTRUCTION
57
59% 61%
Public Buildings 48%
51 21% 44% 21%

17%
Commercial Warehouses 17%
50

Manufacturing Buildings 40%

31% 38%
27%
49

Offices High-Rise (5+ Stories) Past 3 Next 3 Past 3 Next 3

44 Years Years Years Years

Retail Stores and Shopping Centers Panelized Construction 3D Modules/Full

37 (e.g., Wall Panels) Volumetric Construction

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 Executive Summary  CONTINUED

Most Important Drivers for Increased Top Obstacles Preventing Increased

PREFABRICATION AND MODULAR CONSTRUCTION 2020

Future Use of Prefabrication and Future Use of Prefabrication and

Modular Construction Modular Construction
The survey probed design firms and contractors to Survey participants selected their top three most
identify the most compelling benefits or process important from a list of factors that are preventing
improvements that would drive them to increase their increased future use of prefabrication and a separate list
implementation of prefabrication and of modular for modular construction. Numbers in the charts at right
construction over the next three years. The chart below reflect an index created from those responses.
shows the top five reasons that will be most impactful to
Impact of BIM on Schedule and Budget
spur deeper engagement with both approaches, based
Performance When Using Prefabrication
on an index that combines the findings for each.
or Modular Construction (Index Based on
Benefits That Would Most Encourage Responses for Next 3 Years)
Increased Use of Prefabrication or Modular Dodge Data & Analytics, 2020
Construction in the Next 3 Years (Index Based
on Respondent Forecasts for Next 3 Years) PREFABRICATION
Dodge Data & Analytics, 2020
Project Delivery Method Prevents Effective Prefabrication Planning
Improves Project Schedule Performance 96
97
Prefabrication Not Part of Project Design
Decreases Construction Costs 94
81
Our Project Types Not Applicable for Prefabrication
Improves Project Quality 92
72
Availability of Prefabrication Shop Locally
Helps Deal With Skilled Labor Shortages 81
61
Availability of Trained Workforce to Install Prefabricated Components
Improves Project Safety
70
39
MODULAR CONSTRUCTION

Owner Is Not Interested in a Modular Approach

90

Availability of Modular Component Manufacturers

66

Our Project Types Not Applicable for Modular Construction

54

Project Delivery Method Prevents Effective Modular Use Planning

51

Availability of Trained Workforce to Install Modular Components

41

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 Data:­Introduction
Prefabrication and Modular Construction

T
his SmartMarket Report is a follow-up to a study
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

originally conducted by Dodge Data & Analytics Analysis in This Report

(when part of McGraw Hill Construction) and To support this separate analysis approach,
published in 2012 as the Prefabrication and Dodge created an online survey with two
Modularization: Increasing Productivity in the Construction lines of inquiry, one for prefabrication
Industry SmartMarket Report. Its purpose is to establish and the other for modular construction.
66% of total respondents to the study,
the current and likely future use of both prefabrication
including architects, engineers, GCs/
and modular construction, quantify users’ benefits CMs, trade contractors and modular
and challenges related to each, and increase industry builders/manufacturers, responded to
understanding of which factors will most effectively drive the prefabrication line of inquiry and the
growth and expand future use. remaining 34% responded to the modular
ones. See the Methodology on page 64 for
About Prefabrication and more information.
The findings reported in the Prefabrication
Modular Construction Trends section of this report represent
Although each can be considered as part of a larger the respondents to the prefabrication
category of offsite construction, there are meaningful line of inquiry, and those in the Modular
differences between prefabrication and modular Construction Trends section reflect those
construction. For example, they are at very different stages that responded to the modular construction
of maturity in the US construction market: line of inquiry. Because of the unique
• 94% of survey respondents cite experience with nature of their perspectives, the responses
provided by the modular builders/
prefabrication over the last three years.
manufacturers in both lines of inquiry
• 38% have used permanent modular construction. were aggregated and are reported on in a
• 28% have used relocatable modular construction. separate section of this report.

They also require different planning approaches and

implementation strategies, provide different types of
benefits and will require different drivers to spur their
future growth.
For these reasons prefabrication and modular
construction are each analyzed and reported on
independently in the body of this study.

Definitions From the Modular Building

Institute That Are Used in This Survey
• PERMANENT MODULAR CONSTRUCTION—A design
and construction process performed in a manufacturing
facility that produces building components or modules
that are constructed to be transported to a permanent
building site.
• RELOCATABLE BUILDING—A partially or completely
assembled building that complies with applicable codes
or state regulations and is constructed in a building
manufacturing facility using a modular construction
process. Relocatable modular buildings are designed to
be reused or repurposed multiple times and transported
to different building sites.

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 Data:­Prefabrication Trends
Most Frequent Building Types for Use of Prefabrication

Prefabrication of single and multi-trade assemblies can Architects/Engineers’ Top 10 Most Frequent
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

be used on a wide variety of building types. This section Building Types for Using Prefabrication
of the report compares the recent experience of the (Forecast for Next 3 Years Compared With History
designers, GCs/CMs and trade contractors designated of Last 3 Years)
for the prefabrication line of inquiry with their respective Dodge Data & Analytics, 2020

forecasts for the next three years. Architects/Engineers (Next 3 Years)

Architects/Engineers (Last 3 Years)
Architects’ and Engineers’
Perspectives Offices Low-Rise (1–4 Stories)
The chart at right shows the top 10 building types (from 48%
an overall list of 14) that architects and engineers believe 22%
will have frequent use of prefabricated single and/or
multi-trade assemblies over the next three years. To Commercial Warehouses
evaluate the dynamics of the market, the chart also 25%
compares those forecasts with this group’s experience 20%
with prefabrication frequency over the past three years
on those same 10 types of projects. Public Buildings
24%
OFFICE BUILDINGS
While nine of the top 10 show forecasted growth over 14%
the next three years, low-rise office buildings (1–4 stories) Healthcare Facilities
stand out, surging from less than a quarter of firms (22%) 23%
citing high frequency in the past to nearly half (48%)
19%
forecasting it in the near future. That building type
was already the second most common, so this prediction Retail Stores and Shopping Centers
of strong organic growth suggests that prefabrication
23%
is well on its way to becoming a standard practice in
that market. 15%
By contrast, high-rise office (five or more stories) Multifamily
ranked 11th among the 14 with only 13% of design firms
21%
predicting high frequency of prefabrication. (High-rise
office is not included in the chart at right since it did 39%
not rank in the top 10.) This may be due to the greater College Buildings and Dormitories
complexity of lifting and installing single and multi-trade
20%
assemblies on these projects.
15%
MULTIFAMILY RESIDENTIAL
Contrasting with design firms’ generally positive Manufacturing Buildings
prefabrication forecast, multifamily residential shows a
19%
dramatic decrease in the predicted level of prefabrication.
11%
This contrasts with their bullish forecast for the use of
permanent modular construction in this market (see page Hotels and Motels
35), so it may be a matter of replacing prefabrication with
17%
modular in their view.
12%

Schools K–12
16%
10%

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 Prefabrication Trends 
Most Frequent Building Types for Use of Prefabrication  CONTINUED

General Contractors’ and Construction GCs/CMs’ Top 10 Most Frequent Building Types
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Managers’ Perspectives for Using Prefabrication (Forecast for Next 3 Years

The forecast by GCs/CMs for which building types will Compared With History of Last 3 Years)
have frequent use of prefabricated single and multi- Dodge Data & Analytics, 2020

trade assemblies over the next three years differs from GCs/CMs (Next 3 Years)
the design professionals’ view, as does their reported GC/CM (Last 3 Years)
experience. The chart at right shows the top 10 building
types (from an overall list of 14) that they believe will Healthcare Facilities
show the most prefabrication activity. 49%

HEALTHCARE FACILITIES TOP THE LIST 40%

GCs/CMs predict growth of prefabrication in each of Multifamily
these top 10 building types. Among them, healthcare 36%
facilities rank as both the most frequent over the past
three years and, with nearly half (49%) including it among 26%
their top predicted building types going forward, the top Offices Low-Rise (1–4 Stories)
future market as well. By comparison, only 23% of design
32%
firms agree with that forecast.
26%
MULTIFAMILY RESIDENTIAL SHOWS GROWTH
Contrasting with the negative perspective of design Public Buildings
firms, GCs/CMs rank multifamily residential as 32%
second most frequent in their prediction for future 22%
usage of prefabrication.
College Buildings and Dormitories
LOW-RISE OFFICE (1–4 STORIES) SEE SOFTER
32%
GROWTH PREDICTIONS
Though both groups see future growth, GCs/CMs are 24%
more muted, with less than one third (32%) predicting Hotels and Motels
a hot future market compared with almost half (48%) of
30%
design firms.
21%
HOTELS AND MOTELS LOOK PROMISING
Almost one third (30%) of GCs/CMs are bullish on the Manufacturing Buildings
future demand for prefabrication in this building-type 29%
compared with just 17% of design firms. 27%
RETAIL STORES AND SHOPPING CENTERS SEE
Commercial Warehouses
LITTLE EXPECTED ACTIVITY
29%
This building type does not even rank in the top 10
for GCs/CMs, whereas it ranks fourth for design 26%
professionals, with almost a quarter (23%) of design
Schools K–12
professionals including it in their three-year forecast of
25%
high prefabrication activity.
19%

Offices High-Rise (5+ Stories)

25%
15%

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 Prefabrication Trends 
Most Frequent Building Types for Use of Prefabrication  CONTINUED

Specialty Trade Trade Contractors’ Top 10 Most Frequent

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Contractors’ Perspectives Building Types for Using Prefabrication

The findings from specialty trade contractors are similar (Forecast for Next 3 Years Compared With History
to GCs/CMs in seeing healthcare as the top project type of Last 3 Years)
that has and will feature frequent prefabrication. They Dodge Data & Analytics, 2020

also rank multifamily second, with over twice as many Trades (Next 3 Years)
(47%) including it in their forecast as those who cited it in Trades (Last 3 Years)
their history (23%).
But interestingly, trade contractors differ from GCs/ Healthcare Facilities
CMs in that low-rise office projects (1–4 stories) are not 63%
even in their top 10 (among 14 possible building types), 58%
and high-rise office buildings (5+ stories) are fourth in
their forecast, compared with 10th for GCs/CMs and 11th Multifamily
for design firms. 47%
23%
Impact of BIM Use on Prefabrication
College Buildings and Dormitories
Forecasts by Building Type
The data show a strong correlation between the use of 45%
BIM by design firms, GCs/CMs and trade contractors 37%
and the frequency with which they all predict a high
Offices High-Rise (5+ Stories)
frequency of prefabrication, especially on commercial
and institutional projects where BIM use is increasingly 43%
common. The matrix below demonstrates that direct 37%
relationship for six of the top 10 building types. This
underscores the powerful role of BIM in enabling model- Schools K–12
driven prefabrication. (See page 22 for more findings 39%
related to model-driven prefabrication.) 33%

Manufacturing Buildings
39%
31%
Percentage of All Respondents Predicting
Frequent Use of Prefabrication (by Level of Commercial Warehouses
BIM Usage) 38%
Building Types No Projects Use BIM Use BIM on
29%
Use BIM on Less 50% or More
Than 50% of Projects Hotels and Motels
of Projects 37%
Healthcare Facilities 24% 44% 57% 33%
Public Buildings 20% 25% 39%
Public Buildings
College Buildings
18% 33% 45% 34%
and Dormitories
Hotels and Motels 20% 34% 38% 34%

Schools K–12 13% 30% 31%

Retail Stores and Shopping Centers
Offices High-Rise 23%
9% 23% 41%
(5+ Stories)
21%

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 Prefabrication Trends  CONTINUED

Most Frequently Prefabricated Assemblies

Prefabrication can be carried out by a single trade on Percent of Projects With Prefabricated Single-
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

their part of the work such as behind-the-wall plumbing Trade Assemblies (Past 3 Years and Next 3 Years
assemblies for headwalls or large public bathrooms, or By Type of Company)
by several trades working together to create multi-trade Dodge Data & Analytics, 2020

assemblies such as above-the-ceiling corridor racks in

75% or More of Projects
hospitals. This part of the report explores current and
50 to 74% of Projects
future use of both types of assemblies.
25 to 49% of Projects 69%
Frequency of Using Single-Trade 60% 59%
Assemblies by Company Type
To explore the current usage and future growth of single- 48% 39%
42% 23%
trade prefabricated assemblies, respondents identified
the percentage of projects where they have been used 8% 21% 35%
over the past three years, and the percentage on which 28% 11%
8%
they are likely to be used over the next three years. 6% 14%
9%
The chart at right shows that all three company-types 7% 26% 12%
that participated in the survey predict significant growth 26%
15% 18% 16%
in the use of single-trade assemblies over the 12%
next three years.
Architects/ Architects/ GCs/CMs GCs/CMs Trades Trades
■  Trade contractors are the most enthusiastic, with 53%
Engineers Engineers (Past 3 (Next 3 (Past 3 (Next 3
predicting that they will employ single-trade assemblies (Past 3 (Next 3 Years) Years) Years) Years)
on half or more of their future projects. Years) Years)
■  GCs/CMs are similarly positive, with over one third

(34%) predicting that a majority of their projects will

include single-trade assemblies.
■  Although predicting a strong increase over the next

three years, design professionals forecast the lowest

overall percentage, with only 16% anticipating usage
on most of their projects. This indicates a need for them
to become more engaged with designing in a way that
PREFAB Charts Assemblies (1.04S-TAs)
enables contractors to implement prefabrication.

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 Prefabrication Trends
Most Frequently Prefabricated Assemblies   CONTINUED

Frequency of Using Specific Types of Percentage of Companies Using Specific

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Single-Trade Assemblies Prefabricated Single-Trade Assemblies

The companies that reported using single-trade (Past 3 Years, By Type of Company)
assemblies were asked to indicate how many Dodge Data & Analytics, 2020

specific types they have used. The chart at right Architects/Engineers GCs/CMs Trades
shows those results.
■ The growth of prefabrication in healthcare and HVAC, Plumbing and Electrical Racks,
similarly MEP-intensive projects gives rise to the Risers and Other Assemblies (Single-Trade)
high percentage of all respondents citing racks, risers 49%
and other single-trade assemblies, especially among 65%
trade contractors who can often make the decision 72%
to prefabricate their trade’s part of the work without
significantly impacting or involving other trades. Steel Assemblies
■ Steel assemblies are a well-established use of single- 74%
trade prefabrication, as demonstrated by the high 62%
percentage of architects (74%) indicating experience 30%
with them.
■  Single-trade headwall assemblies are a healthcare
Headwall Assemblies (Single-Trade)
specialty, frequently involving piping for medical 23%
gases. The relatively low percentage of trade 43%
contractors citing their use (30%) is more a reflection of
30%
the fact that this is most frequently done by mechanical
contractors, which represent only a portion of all trade Other Single-Trade Assemblies
contractors participating in this study. 23%
23%
The “Other” category of single-trade assemblies
identified by respondents includes aluminum storefront, 25%
a variety of precast concrete elements, millwork, wood
framing and trusses, subfloor systems, equipment skids
and racks for conduit or equipment.

SmartMarket Report Dodge Data & Analytics   12  www.construction.com

 Prefabrication Trends
Most Frequently Prefabricated Assemblies   CONTINUED

Frequency of Using Multi-Trade Percent of Projects With Prefabricated

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Assemblies by Company Type Multi-Trade Assemblies

Similar to the question about single-trade prefabricated (Past 3 Years and Next 3 Years by Type of
assemblies, respondents identified the percentage of Company)
projects where they have used multi-trade assemblies Dodge Data & Analytics, 2020

over the past three years, and the percentage on which

75% or More of Projects
they are likely to use them over the next three years.
50 to 74% of Projects
The chart at right shows that, although the total
percentages predicting use of multi-trade assemblies 25 to 49% of Projects
27%
on over half of their projects is notably smaller than with
single-trade ones, all respondents are predicting very
23%
strong growth over the next three years.
■ Trade contractors have the highest level of use 3% 10%
19%
currently of multi-trade assemblies.
3% 17%
■ A 10-point increase is expected in the next three
7%
years among both GCs/CMs and trade contractors in 4%
4% 13% 5%
this area. Trade contractors in particular see the most 1%
dramatic growth on the high end of the scale. 3% 3%
■ Designers lag in their use of these approaches, but the
7%
participation is expected to more than double in the 12% 13% 13%
next three years. 5% 9% 9%
■ Design professionals will need to enable multi-trade
1%
assemblies in their design solutions in order to support 1%
the ambitious targets all of these groups are setting. Architects/ Architects/ GCs/CMs GCs/CMs Trades Trades
Engineers Engineers (Past 3 (Next 3 (Past 3 (Next 3
(Past 3 (Next 3 Years) Years) Years) Years)
Years) Years)

PREFAB Charts Assemblies (1.05 MTAs)

Dodge Data & Analytics    13  www.construction.com SmartMarket Report

 Prefabrication Trends
Most Frequently Prefabricated Assemblies  CONTINUED

Frequency of Using Specific Types of Percentage of Companies Using Specific

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Multi-Trade Assemblies Prefabricated Multi-Trade Assemblies

The companies that reported usage were asked to (Past 3 Years by Type of Company)
indicate how many specific types they have used. The Dodge Data & Analytics, 2020

chart at right shows those results. Architects/Engineers GCs/CMs Trades

■ Like the findings for single-trade assemblies, two thirds

of GCs/CMs and three quarters of trade contractors HVAC, Plumbing and Electrical Racks,
Risers and Other Assemblies (Single-Trade)
report experience over the past three years with
39%
MEP-oriented multi-trade assemblies. Coupled with the
overall strong forecasts for growth by these groups, this 64%
suggests that these assemblies are well on their way to 77%
becoming standard practice for MEP-intensive projects.
Curtainwall Assemblies
■ Also like the findings for single-trade steel assemblies,
59%
over half of design firms cite experience with multi-
trade curtainwall and exterior wall assemblies, which 39%
also bodes well for future growth. 8%
■ Past experience using interior wall or soffit panels also
Exterior Wall Asemblies
scores well and should increase as the overall market
54%
for prefabricated assemblies continues to mature. This
38%
familiarity among nearly half of designers and GCs/CMs
also may presage a rapid adoption of modular versions 10%
of these types of assemblies. Interior Wall or Soffit Panels
45%
BIM Use Has a Strong Impact
40%
As the matrix below demonstrates, the level of BIM use
impacts the predicted frequency of both single and multi- 10%
trade assemblies, further reinforcing the powerful role of Headwall Assemblies (Multi-Trade)
model-driven prefabrication. 19%
32%
32%

Percentage of All Respondents Predicting

Frequency of Prefabricated Assemblies
(by Level of BIM Usage)
Predicted Use of No (0%) Use BIM on Use BIM on 50%
Assemblies on Projects in Projects Use Less Than 50% or More of
Next 3 Years BIM of Projects Projects

Over 50% Single-Trade 27% 27% 51%

Over 11% Multi-Trade 16% 41% 55%

SmartMarket Report Dodge Data & Analytics    14  www.construction.com

 Prefabrication Trends  CONTINUED

Impact of Prefabrication
On Schedule and Cost Performance

Compliance with the project schedule and the Impact of Prefabrication on Project
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

construction budget are two of the most important Schedule Performance (Percentages Reporting
metrics in the construction industry. This page of the Each of Three Levels of Improvement)
report examines the positive impact of prefabrication on Dodge Data & Analytics, 2020

schedule and cost performance.

Decreased by More Than 10%
Decreased 6–10%
Schedule Performance
Decreased by 5% or Less
The chart at upper right shows the percentage of schedule
73%
performance improvement that respondents experienced
over the past three years by engaging in prefabrication.
■ Trade contractors experience the greatest 58%
positive impact with half citing better than 5% 33%
11%
schedule compression.
■ Although only 31% of design firms report a schedule

benefit from prefabrication, most of those (21%) indicate 31%

it has a very strong impact. 17%
26%

Cost Performance 21%

The chart at lower right shows the percentage of cost 21% 23%
performance improvement that respondents experienced 4%
over the past three years by engaging in prefabrication. 6%
■ Trade contractors are even more enthusiastic about Architects/ GC/CM Trades
Engineers
improved cost performance (82%), with well over half
(55%) citing better than 5% budget impact.
■ Design firms are also far more positive about cost
Impact of Prefabrication on Project Budget
impact, even slightly exceeding GCs/CMs in the
Performance (Percentages Reporting Each of
top category.
Three Levels of Improvement)
■ GCs/CMs are about equal with their positive

evaluation of both cost and schedule improvement Dodge Data & Analytics, 2020

from prefabrication.
Decreased by More Than 10%
Decreased 6–10%
BIM Use Enhances Improvements Decreased by 5% or Less
As shown in the matrix below, higher percentages of 82%
1.07 CS Ben
the companies that use BIM report schedule and cost
performance improvements over the last three years
from prefabrication.
59% 58% 38%
Percentages Reporting Improved Schedule
and Cost Performance From Prefabrication
(by Level of BIM Usage) 35% 31%
Companies Companies That Companies That 17%
That Do Not Use BIM on Less Use BIM on 50%
Use BIM Than 50% of or More of
Projects Projects
12%
Percentage Reporting 11%
Improved Schedule 22% 49% 61% 27%
Performance 15%
13%
Percentage Reporting
Improved Cost 31% 49% 52%
Performance Architects/ GC/CM Trades
Engineers

Dodge Data & Analytics    15  www.construction.com SmartMarket Report

 Prefabrication Trends  CONTINUED

Impact of Prefabrication on Seven Specific Benefits

In addition to improved compliance with project Architects/Engineers: Impact of Prefabrication

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

schedule and construction cost, the survey examined on Seven Key Performance Factors (Percentages
the impact of prefabrication on seven other specific Reporting Medium, High or Very High Contribution for
aspects of project delivery. Each Factor)
Dodge Data & Analytics, 2020
RESPONSES BY COMPANY-TYPE
To examine contrasts and commonalities between Very High High Medium
their perspectives, the charts in this section of the
Improved Productivity
report separately show the findings from the three
11% 39% 39% 89%
main respondent groups (Architects/Engineers, GCs/
CMs, Trades). In each, the order reflects the sum of their Reduced Waste Generated by Construction
medium, high and very high rating levels. 20% 32% 34% 86%

Architects/Engineers Increased Schedule Certainty

The chart at right shows the responses from design firms 11% 38% 34% 83%
in the survey.
Improved Quality
■ Although improved productivity scores first overall

(89%), reduced waste generated by construction is the 10% 42% 28% 80%
second-highest rated, and, importantly, it garners the Improved Cost Predictability
most very high impact votes (20%), demonstrating this 9% 35% 34% 78%
group’s strong interest in green.
■ Two thirds (66%) cite improved safety performance, Increased Client Satisfaction
even though design firms are less directly involved in 13% 29% 33% 75%
that aspect. This finding is encouraging for the potential
Improved Safety Performance
growth of Prevention Through Design and other means
by which design solutions can actively enhance safety. 8% 24% 34% 66%
■  Three quarters (75%) report increased client

satisfaction and it earns the second-most number

of first-place rankings. This should increase in the
future as prefabrication usage grows, its benefits are
quantified and owners are more engaged in the process
of deciding what to prefabricate, all of which will
contribute to their appreciation of its positive impact on
project delivery.

PREFAB Charts Benefits 1.08-9 OtherBn (2)

SmartMarket Report Dodge Data & Analytics    16  www.construction.com

 Prefabrication Trends
Impact of Prefabrication on Seven Specific Benefits  CONTINUED

GCs/CMs GCs/CMs: Impact of Prefabrication on Seven

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Compared with design firms, the responses from Key Performance Factors (Percentages Reporting
GCs/CMs shown at right are generally higher and the Medium, High or Very High Contribution for Each Factor)
combined totals of medium, high and very high scores Dodge Data & Analytics, 2020

fall in a narrower overall range (79% to 90%), indicating Very High High Medium
more widespread support among these practitioners for
all seven benefits. Improved Productivity
■ Improved productivity again is highly rated (90%),
14% 42% 34% 90%
which is particularly meaningful because it is such a
critical metric for GCs and CMs. Improved Quality
■ The impact of prefabrication on improved quality 19% 36% 35% 90%
scores noticeably higher with GCs/CMs than with Increased Schedule Certainty
design firms, both for total score (90% compared with
14% 45% 31% 90%
80%) and very high impact (19% compared with 10%).
■ 90% cite increased schedule certainty, which is a Reduced Waste Generated by Construction
different type of schedule-related benefit than schedule 18% 42% 25% 85%
reduction (see page 15). Regardless of whether an
overall project is ahead, behind or on schedule, this Improved Safety Performance
finding suggests that prefabrication improves certainty 20% 33% 30% 83%
by reducing risk of schedule variances.
Improved Cost Predictability
■ Among the very high impact responses, improved
10% 31% 42% 83%
safety ranks first (20%), providing perhaps the most
compelling reason to increase the use of prefabrication. Increased Client Satisfaction
■ The strong very high impact score for reduced waste
9% 29% 41% 79%
generated by construction (18%), reflects
an appreciation for the importance of green
construction practices.

PREFAB Charts Benefits 1.08-9 OtherBn (3)

Dodge Data & Analytics   17  www.construction.com SmartMarket Report

 Prefabrication Trends
Impact of Prefabrication on Seven Specific Benefits  CONTINUED

Trade Contractors Trade Contractors: Impact of Prefabrication on Seven

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Scoring highest among all respondent groups (range of Key Performance Factors (Percentages Reporting Medium,
81% to 93%), trade contractors’ responses (shown in the High or Very High Contribution for Each Factor)
chart at upper right) reveal meaningful differences from Dodge Data & Analytics, 2020

those of design firms and GCs/CMs.

Very High High Medium
■ The percentages of trades giving very high impact

scores is significantly larger for every aspect studied, Improved Quality

as much as tripled over other groups. 32% 43% 18% 93%
■ Improved quality ranks first overall, compared

with second place for GCs/CMs and fourth place for Improved Productivity
design firms. 25% 46% 21% 92%
■ Their strong rating for improved safety (31% very high
Increased Schedule Certainty
and 86% overall) is especially meaningful because it is
15% 42% 31% 88%
the trade contractors that provide jobsite labor.
■ Even trade contractors’ lowest rated benefits among Improved Safety Performance
the seven, reduced waste generated by construction 31% 35% 20% 86%
and increased client satisfaction both show strong very
high ratings (25%) and perfectly respectable overall Improved Cost Predictability
ratings of 81%. 14% 40% 30% 84%

Increased Client Satisfaction

The Impact of BIM on 25% 35% 21% 81%
Performance Factors
To see the impact of BIM on those receiving the top levels Reduced Waste Generated by Construction
of benefits, the chart at lower right shows, on average 25% 35% 21% 81%
across all seven of these factors, the percentage of all
respondents who report high or very high positive impact
from their use of prefabrication, broken down by their
level of BIM usage. Percentages Reporting Improved Project Delivery
■ Significantly less than half (44%) of the companies Performance From Prefabrication
currently not using BIM report they are receiving this (Average Percentage Reporting High or Very High
high level of benefit from prefabrication. Contribution Across All Factors, by Level of BIM Usage)
■ By contrast, almost two thirds (64%) of those who Dodge Data & Analytics, 2020

report using BIM frequently are enjoying high levels of

these performance improvements from prefabrication, 64%
and companies still growing their BIM implementation 54%
PREFAB Charts Benefits 1.08-9 OtherBn (4)
are outperforming those that have not yet adopted, with 44%
well over half (54%) seeing improved performance.

Companies Companies Companies

That Do Not That Use BIM That Use BIM
Use BIM On Less Than on 50% or More
50% of Projects

SmartMarket Report Dodge Data & Analytics   18  www.construction.com

 Prefabrication Trends  CONTINUED

Impact of Project Delivery Method on Prefabrication

Frequency of Project Delivery Method Frequency of Project Delivery Method When

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Participants were asked how frequently various project Prefabrication Was Used in the Last 3 Years
delivery methods were in use on their projects that (Top 3 Most Frequent Methods)
involved prefabrication over the past three years. The Dodge Data & Analytics, 2020

chart at upper right shows these broken out by the First Most Frequent
percentages of all respondents who cited each method as Second Most Frequent
having been either first, second or third most frequent.
Third Most Frequent
■ As the most common project delivery method currently

in use, it is not surprising that traditional design-bid- Traditional Design-Bid-Build

build shows the highest correlation to prefabrication 19%
42% 15%
projects, with 42% citing it as the most frequent.
■ Design-build ranks as the second most frequent Design-Build
method. And when its first and second place rankings 28% 38% 11%
are added together, they surpass that combination for
Construction Manager at Risk
design-bid-build, certainly identifying it as a highly
14% 13% 17%
conducive environment for prefabrication.
■ The other two methods are each included among the
Integrated Project Delivery
three most frequent by nearly half of respondents,
9% 14% 20%
so both have a meaningful correlation to the use of
prefabrication, especially when compared with the total
for design-bid-build, which occurs in the market at a far
greater proportional frequency than this comparison
Degree to Which Prefabrication Was Enabled
would indicate.
by the Project Delivery Method
(By Company Type)
Degree to Which Delivery Method Dodge Data & Analytics, 2020
Supports Prefabrication
Respondents indicating prefabrication experience with Helped Significantly
any of the methods shown in the chart at lower right were Helped
asked how much they believe that method enabled the
use of prefabrication. 76%
75%
While all three methods garner very positive ratings,
67%
integrated project delivery and design-build both score
26% 30%
especially well, with 30% and 26%, respectively citing 17%
significant help with their use of prefabrication.

DESIGN-BID-BUILD HINDERING Proj Del (1)

PREFABRICATION
Participants were also asked the degree to which
50% 49% 46%
they believe traditional design-bid-build hinders
prefabrication. Importantly, only 18% stated that belief,
so the fact that it may be in place on a project is not a
legitimate reason to assume prefabrication cannot be Construction Design-build Integrated
successfully deployed. Manager at Risk Project Delivery

Dodge Data & Analytics   19  www.construction.com SmartMarket Report

 Prefabrication Trends  CONTINUED

Prefabrication Suppliers and Procurement

The survey examined how participants learn about Top Sources of Information About
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

and select prefabrication suppliers and what channels Prefabrication Companies (Percentages Citing
they most frequently use to procure products for Each Source Over the Last 6 Months)
prefabrication projects. This part of the report addresses Dodge Data & Analytics, 2020

those findings. Architects/Engineers GCs/CMs Trades

Learning About Prefabrication Print and Digital Trade Publications

Suppliers 54%
The chart at right shows where they have heard about 65%
prefabrication companies in the last six months.
48%
■ Design firms are most frequently informed through

industry publications (54%) and the GCs/CMs they work Friends and Colleagues
with (54%). 34%
■ The GCs/CMs rely more than any other group on 51%
industry publications (65%) but are also strongly 36%
influenced by friends and colleagues (51%).
■ In addition to publications (48%) trade contractors learn
Clients
more than others from trade shows (48%). 35%
■ Social media is still an emerging source but can 33%
be expected to grow as its use expands in the 30%
construction industry.
Trade Shows
31%
37%
48%

GCs/CMs They Work With

54%
NA
1%

Social Media
13%
24%
23%

SmartMarket Report Dodge Data & Analytics   20  www.construction.com

 Prefabrication Trends
Prefabrication Suppliers and Procurement  CONTINUED

Selection of a Prefabrication Supplier Top Factor That Influences Selection of a

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Participants identified the one factor among six that is the Prefabrication Company (Most Influential From
most influential in selecting a supplier of prefabrication a List of 6 Factors)
services on their projects. The chart at right shows the top Dodge Data & Analytics, 2020

four responses. Architects/Engineers GCs/CMs Trades

■ Design firms and GCs/CMs value expertise far more

than low price, owner input or any internal criteria they Company With the Best Expertise for the Project
may have. 45%
■ Design firms are much more influenced by owners than
47%
GCs/CMs or trades, perhaps because they are not as
29%
knowledgeable about alternatives available to them.
■ About half of the trade contractors that participated
Lowest Bidder
in this part of the survey report that they self-perform
14%
prefabrication, so they were deducted from the
responses shown in the chart. 20%
39%
The other two options (“We use the same prefabrication
company for all of our projects” and “We use whoever
Owner Preference
is closest to the project (distance-wise)”) are much
less influential. 23%
7%
Procuring Products for Prefabrication 14%
Contractors were asked if they most often go through
traditional distribution channels to procure products Have Their Own Set of Criteria
for their prefabrication projects or if they primarily buy 3%
directly from manufacturers. 8%
As the matrix below indicates, while nearly two thirds
15%
(59%) of GCs/CMs and over three quarters (76%) of trade
contractors report primarily going through traditional
Same Prefabrication Company for All Projects
distributor channels, over one third (37%) of GCs/CMs are
4%
mostly buying direct.
(Note that the percentages for each company type 6%
do not add up to 100% because a small percentage (4%) 12%
of each group indicated they are procuring through
other methods, such as owner-procured or locked-in Company Closest to the Project (by Distance)
purchasing agreements.) 2%
2%
3%

Most Frequent Method of Procuring

Products for Prefabrication Projects
Traditional Direct From the
Distribution Channels Manufacturer

GCs/CMs 59% 37%

Trade Contractors 76% 20%

Dodge Data & Analytics   21  www.construction.com SmartMarket Report

 Prefabrication Trends  CONTINUED

Use of BIM for Model-Driven Prefabrication

Most companies (89%) that participated in the survey Percentage of BIM Users Engaged With
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

say that BIM is being deployed on at least some Model-Driven Prefabrication

percentage of their projects (for more information on (Comparing Current Implementation Levels With
BIM engagement, see Methodology page 64). Within Predicted Levels in 3 Years)
that group, the companies also designated for the Dodge Data & Analytics, 2020

prefabrication line of inquiry were asked about how BIM

Over 50% of Projects
is being applied specifically to prefabrication (i.e., model-
25% to 49% of Projects      
driven prefabrication). This part of the report addresses
those findings. Less Than 25% of Projects
No (0%) Projects
Current and Future Implementation
of BIM for Prefabrication
The chart at upper right shows the percentages of 27%
the BIM users described above that are currently 42%
engaged with model-driven prefabrication at several
17%
levels of implementation, and the percentages that
believe they will be operating at those levels within the
33%
next three years.
■ The percentage using BIM for prefabrication on at least
49%
a quarter of their projects will grow dramatically, from 24%
44% to 75% in the next three years.
7% 1%
■ Within three years, virtually all BIM users (99%) will be
Current 3 Years
engaged in model-driven prefabrication.

High-Level Implementation by High-Level Implementation of BIM for

Company-Type Prefabrication by Company-Type
The chart at lower right shows the current and future
(Percentages Using BIM for Prefabrication on More
percentages by company-type that use BIM for
Than 50% of Projects (Current and Next 3 Years)
prefabrication on 50% or more of their projects.
■ Trade contractors are the most deeply engaged, with
TypsMOD01
Dodge Data & Analytics, 2020

over half (53%) predicting a high level of implementation Currently Using BIM for Prefabrication on
in the next three years. More Than 50% of Projects
■ Though currently the least active, design firms will Planning to Use BIM for Prefabrication on
nearly double their current number of high-level More Than 50% of Projects in the Next 3 Years
implementers over the next three years, which is 53%
a positive indicator that they will be doing more to
actively enable prefabrication in their design solutions.
38%
35%
31%

22%
17%

Architects/ GCs/CMs Trades

Engineers

SmartMarket Report Dodge Data & Analytics    22  www.construction.com

1.10-11 BIM (2) prefab
 Prefabrication Trends
Use of BIM for Model-Driven Prefabrication  CONTINUED

Reasons to Use BIM for Prefabrication Most Important Reasons to Use BIM for
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

To understand the drivers for its adoption and the Model-Driven Prefabrication (Percentages by
expectations for its impact, current users of BIM for Company-Type Who Selected Each Reason to be
prefabrication were asked to select up to three reasons Among Their Top Three)
(from a list of 10) that they are engaging with it. The chart Dodge Data & Analytics, 2020

at right shows the leading eight reasons by company-

Architects/Engineers GCs/CMs Trades
type, with percentages indicating how many selected
each to be among their top three most important. They Improved Coordination
are listed in order of the average percentage across all 38%
company-types.
38%
■ Successful prefabrication requires comprehensive
40%
spatial coordination between systems and disciplines.
These findings reinforce this by the first-place ranking Improved Schedule Performance
and the nearly equal acknowledgement by all the 28%
company-types of the value of BIM for improved 44%
coordination.
40%
■ Of equally high importance for trade contractors are

improved schedule and cost performance (40% for Improved Cost Performance
each). GCs/CMs agree regarding schedule (at 44%, it 24%
is their top reason) but are less focused on expecting 23%
cost reductions. This may be because trade contractors
40%
experience internal operational cost savings by
prefabricating, but that may not always lower the overall Reduced Onsite Rework
construction cost, which is the concern of GCs/CMs. 18%
■ Interestingly, twice as many design firms (34%) select
34%
improved quality compared with trades (17%), which 27%
are more attentive to cost and schedule improvements.
Improved Quality
MANDATING THE USE OF BIM FOR 34%
PREFABRICATION
25%
Demand by another project team member shows
significant influence in these findings, ranging from a low 17%
of 20% (from GCs/CMs citing demand from owners) to a Owner Demand
high of 34% (from trade contractors citing demand from 20%
GCs/CMs). As the use of BIM for prefabrication grows
20%
and its benefits become more widely understood, it is
reasonable to expect that its use will be mandated on an 25%
increasingly wide variety of projects. Contractor/CM Demand
26%
N/A
34%

Architect or Engineer Demand

N/A
28%
25%

Dodge Data & Analytics   23  www.construction.com SmartMarket Report

 Prefabrication Trends  CONTINUED

Top Factors That Influenced Use of Prefabrication

(Last Three Years)

Respondents were asked to rate the level of influence Top Factors Influencing Use of
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

that each of six factors had on their decision to use Prefabrication in Last 3 Years
prefabrication over the last three years. The chart at right (Percentages Citing High or Very High Level of
shows the percentages that cite either high or very high Influence)
levels of influence, represented by company-type. Dodge Data & Analytics, 2020
■ Larger percentages of trade contractors rate each

of the factors as influential than the other types of Architects/Engineers GCs/CMs Trades
companies, underscoring their level of enthusiasm for Improved Productivity
prefabrication found throughout the survey results.
49%
■ All three company types rate improved productivity

highest for its influence, reinforcing similar findings for 66%

the top benefits generated by using prefabrication (see 77%
pages 16, 17 and 18). Remaining Competitive
■ Remaining competitive is the second most influential
37%
factor for GCs/CMs and trades, and it ranks third for
57%
design firms, indicating that prefabrication capability is
69%
becoming an expectation in the marketplace.
■ Improved cost performance ranks second highest with Improved Cost Performance
design firms, even slightly outscoring GCs/CMs. This 48%
demonstrates that architects and engineers understand
45%
prefabrication can have a positive influence on cost
63%
control and should lead to more development of design
solutions that consciously enable it. Workforce Shortages
■ As with the evaluation of safety as a benefit of 24%
prefabrication (see page 18), safety scores far higher
43%
with trade contractors because of its direct impact on
49%
their workforce.
■ Speaking of workforce, although fewer than half of Safer Working Conditions
GCs/CMs and trades rate workforce shortages as a 13%
strong influence over the past three years, this may
42%
change if the current workforce challenges continue.
■ Owner demand has been the least influential factor,
58%
but this should change as they become more aware of Owner Demand
the benefits, more familiar with the process and more 23%
comfortable with the outcomes.
27%
30%

SmartMarket Report Dodge Data & Analytics    24  www.construction.com

 Prefabrication Trends  CONTINUED

Top Positive Impacts That Will Drive More

Prefabrication in the Next Three Years

To understand their future expectations, participants Top Impacts That Will Influence Use of
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

were asked to identify which benefits they believe will Prefabrication in the Next 3 Years
be the most influential to drive more prefabrication over (Percentages Forecasting High or Very High
the next three years. The percentages in the chart at right Level of Influence)
represent how many from each type of company predict Dodge Data & Analytics, 2020

a high or very high level of influence. The order reflects Architects/Engineers GCs/CMs Trades
the averages of their scores.
■  All respondents agree that improving project
Improves Project Schedule Performance
schedule performance will be the top future driver 60%
for prefabrication.
■  Decreasing construction cost is almost as highly rated,
69%

and, similar to the findings for past influences, it is even 66%

more influential with design firms than with GCs/CMs. Decreases Construction Costs
■  Improving project quality is third-ranked overall
57%
and is a particularly high demand from design firms,
54%
which suggests these companies are ready to
58%
embrace prefabrication as a valid element of their
design solutions. Improves Project Quality
■  GCs/CMs and trades will be very focused on 59%
prefabrication’s positive impact on workforce 40%
and safety in the coming years. 43%
Helps Deal With Skilled Labor Shortages
Impact of Industry Resources
27%
As shown in the matrix below, about half the respondents
believe externally developed resources would also help 47%
to drive future use of prefabrication. 44%
Improves Project Safety
3%
28%
36%

Impact of Industry Resource on Use of

Prefabrication (Next 3 Years)
Percentages Indicating High or Very High Level
of Influence

More Design Guides BIM Objects for

Availability of or Prefabricated
Prefabricated Standardization Components
Components for
Prefabrication

Architects/Engineers 58% 59% 41%

GCs/CMs 60% 47% 40%

Trade Contractors
46% 46% 47%

Dodge Data & Analytics    25  www.construction.com SmartMarket Report

 Prefabrication Trends  CONTINUED

Top Obstacles Inhibiting More Use of Prefabrication

Having rated the benefits and the drivers, respondents Top Obstacles to Increasing Numbers of
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

also identified the three biggest obstacles (from a list Projects That Use Prefabrication
of 10) that they believe are preventing their companies (Percentages That Include Each Factor Among
from doing more prefabrication. The percentages in the Their Top Three Out of 10)
chart at right represent how many, by type of company, Dodge Data & Analytics, 2020

selected each obstacle among their top three. The order Architects/Engineers GCs/CMs Trades
reflects the averages of those scores.
■  Prefabrication not being part of a project’s design is Prefabrication Not Part of Project Design
the top obstacle for both GCs/CMs and trades. Since NA
design firms report experiencing significant benefits 54%
from prefabrication (see page 16), this should be a
40%
strong message that they need to develop design
solutions that more effectively enable it. Project Delivery Method Prevents Effective Prefabrication Planning
■  Project delivery method and the type of project are 30%
both about equally cited by all company types. These 33%
may improve as prefabrication becomes more of a 33%
standard practice regardless of delivery method and
Our Project Types Not Applicable for Prefabrication
more types of assemblies are developed for use in a
wider variety of project types. 34%
■  Availability of local facilities and trained labor to 31%
implement prefabrication are not major obstacles for 27%
GCs/CMs and trades, even though design firms identify
Availability of Prefabrication Shop Locally
them as their greatest concern.
■  Trades express very low concern about owners not 43%
wanting prefabrication, perhaps because they often 26%
implement it as an internally driven business practice 12%
regardless of owner permission or awareness.
Availability of Trained Workforce to Install Prefabricated Components
Very small percentages (average 10%) cite either of 36%
two other obstacles that were included in the survey:
21%
Inspection uncertainty and concern about quality.
13%
Costs Too Much
15%
17%
10%
Owner Doesn’t Want Prefabricated Elements
16%
19%
6%

Inspection Uncertainty
17%
11%
2%

Concern About Quality

21%
5%
SmartMarket Report Dodge Data & Analytics   26  www.construction.com
4%
 Sidebar:  Residential

Prefabricated and Modular Multifamily

Housing crises in multiple major US cities are driving interest and municipal
PREFABRICATION AND MODULAR CONSTRUCTION 2020

support for prefab residential developments, but regulatory hurdles remain.

D
espite some growing Time Savings fabrication and construction through
pains, factory-built housing The primary financial benefit of acquisitions or strategic partnerships.
is finally on an upswing. offsite construction, from a In 2018, CertainTeed, a leading
Faced with rising housing developers’ perspective, is the speed materials manufacturer, partnered
costs, cities in particular are beginning with which prefabricated building with Unity Homes to develop higher-
to invest in offsite construction as a components—in some cases fully performance assemblies and
way to deliver multifamily residential finished modules—can be assembled. components for factory-built housing.
developments at a rapid pace. A 2019 report from McKinsey & “We are trying to connect the dots
Company found that although early between the companies that design
Housing Shortages modular projects had a mixed track and build, and those that make and
Across the US, prefab and modular record of cost savings, more recent supply the materials and parts for
construction are being employed to projects “have consistently been those buildings,” says Sarah Kossayda,
help alleviate the housing shortages completed 20%–50% faster than the communications director for
that plague metro areas such as traditional onsite builds.” Bensonwood, the owner of Unity
San Francisco and NewYork City. Because building components Homes. “We hope to establish the basis
Municipalities’ embrace of offsite are built inside a factory, oftentimes for a homebuilding operating system,
construction comes amid one of the concurrently with sitework, when leading to better industry cohesion.”
greatest housing crises in American they arrive onsite, all that is left to do
history. “We in the US have never had is crane them into place. In Oakland, Hurdles to Growth
such a perfect storm of significant a 110-unit apartment project led by Although the industry is poised for
increases in labor rates, material Holliday Development and built by continued growth, challenges remain.
costs, land costs and permit fees its sister company, Factory OS, was The news that RAD Urban, an Oakland-
meeting diminished labor and erected in 10 days. In Vancouver, based modular housing developer,
increased demand,” says Steve Glenn, the 52 units of M. Mitchell Place, a would be laying off 170 employees at
the CEO of Plant Prefab, whose Nest transitional housing development its factory in Lathrop, Calif., combined
LivingHomes concept won $1 million by Vancouver Affordable Housing with concerns over the rapid growth
in the Los Angeles County Housing Agency, were constructed offsite and of startups such as Katerra, which has
Innovation Challenge in 2018. craned into place in three days. raised more than $1 billion in venture
In San Francisco, where the average capital funding and acquired several
price of a two bedroom apartment is Continued Integration leading architecture firms, have fueled
between $2,400 and $3,650, the city is For private housing developers, a sense of uncertainty.
exploring partnerships with modular reducing onsite construction States also need to amend building
builders in order to address the time means that units can be codes to better fit the realities of
housing crunch, while NewYork City occupied more quickly, resulting offsite construction, Kossayda says,
recently entered into an agreement in quicker returns, as well as less citing California as a leader. “States,
with Brooklyn-based FullStack exposure to market cycle risks. districts, cities and towns all have
Modular to deliver 167 units of At the same time, prefabrication different codes and programs,” she
affordable housing in East NewYork. often means increased upfront design says, “or they don’t have a program
The support of local governments has and logistics costs, depending on the and they’re not able to accept our third-
meant growth for companies such nature of the project. party certification. Duplicate efforts
as Plant Prefab, which has tripled its For this reason, builders and are driving the price up and making
revenues and its workforce in the manufacturers are increasingly it difficult for prefab and modular
past year. integrating the roles of design, structures to be built.” n

Dodge Data & Analytics   27  www.construction.com SmartMarket Report

 Sidebar:  Industry Disruption

Define Disruption

Enthusiasm for the benefits of prefabrication and modular

PREFABRICATION AND MODULAR CONSTRUCTION 2020

construction is often also shadowed by concerns about whether they

will be a disruption to the standard business of construction.

N
owadays it’s a that’s affected. It’s mainly the mainstream customers require,
common point of view housing and hospitality sectors while preserving the advantages
that construction is that are now ripe for this particular that drove their early success.
ripe for disruption, innovation. (Panel-based systems When mainstream customers start
and prefabrication is one of the are adaptable to a range of building adopting the entrants’ offerings in
technologies to do it. But each types, but that’s a separate story volume, disruption has occurred.
of those three terms is wide, and on its own timeline.) The advent of Alternatives to disruptive
participants in the conversation startups such as Katerra, Entekra, innovations include sustaining
(researchers, consultants, industry Factory O/S, Stack Modular, Blueprint innovations that make incremental
practitioners and media pundits) Robotics, Z Modular, Blokable, improvements on previous practice,
often use them loosely, to the point Kasita and BONE Structure; the and radical innovations that introduce
where confusion arises about what’s vertical integration of legacy new products or processes that
really going on. For developers, construction firm Skender as it completely replace existing ones.
project delivery teams and pivots to modular; and the upscaling So in business terms, what’s
manufacturers wanting to get ready and/or upskilling of established happening now with the rise of
for changes coming over the horizon, volumetric builders such as Clayton, modular construction isn’t accurately
it may be helpful to get a clearer view Bensonwood (with Unity Homes), described as a disruption. “We don’t
of the landscape. and Guerdon—to name a few—are yet see any major ‘disruptions’ in this
aimed at housing and/or hospitality sector, certainly not in the US,” says
Coming to Terms construction almost exclusively. industry expert Ivan Rupnik, associate
First, prefabrication. Based So does—or will—the rise of professor at Northeastern University’s
on input from our subject matter modular construction in the housing School of Architecture.
experts, this report distinguishes and hospitality sectors constitute He and Ryan Smith, director of
between “prefabrication” and a disruption? In day-to-day usage, Washington State University’s
“modular construction.” While a disruption is a major disturbance School of Design + Construction,
both are types of offsite construction, in the way things are done. But in see utility in distinguishing between
modular construction is a factory- business, the word means something an “industry” and a market or
based process, producing building more specific. Here’s how the business sector, and they make the
components or modules, which originator of the business usage, case that the absence or minimal
are then transported to site. Clayton Christensen, professor of presence of qualifying factors—
Modules may be volumetric, (like business administration at Harvard such as a focus on productivity,
the ones used in citizenM Bowery, University, encapsulates the idea: efficiency and improvement,
Coliseum Connections and Union “Disruption” describes a process manufacturing-based and factory-
Flats, profiled in this report) or a kit whereby a smaller company oriented production processes,
of panelized, flat-packed parts (for with fewer resources is able to and a critical mass of companies
example, the IKEA-sponsored Urban successfully challenge established to foster competitiveness—means
Village Project). While prefabrication incumbent businesses… Entrants that modular construction in the US
can achieve great results, it’s that prove disruptive begin by is not yet an established industry.
modular construction that’s successfully targeting overlooked Before there can be meaningful talk
generating the talk of disruption. market segments… [and] then of disruptive, sustaining or radical
Second, construction. It isn’t the move upmarket, delivering the innovations, the industry needs
construction industry as a whole performance that incumbents’ to develop.

SmartMarket Report Dodge Data & Analytics   28  www.construction.com

 Sidebar:  Industry Disruption  CONTINUED

Developing an Industry Project delivery will depend on terms, is really happening, and it
PREFABRICATION AND MODULAR CONSTRUCTION 2020

Development as an industry will earlier access to financing: draws to may misdirect businesses that are
include practices that new and support the start of superstructure considering the strategies available
renewing companies are now fabrication are needed sooner than in to them. As companies develop a
introducing: vertical integration, a conventional process. Integration map for navigating the housing and
supply chain management, of project design and delivery teams, hospitality sectors’ evolving terrain,
standardization, incremental now still the exception, will need to they may be better served by what
improvement, data, operational become the norm. Scope will change: Smith calls “a more judicious and
management, lean practices and general contractors can expect to see careful way of explaining it.” n
new labor practices, for example. 65% to 70% of a contract executed in
Fabricators will need to understand a factory, for example. Module and
their ecosystem, and upgrade their panel setting and assembly require a
capacity and competence. They’ll redesign of the construction process
need to cultivate relationships—with to include near-site staging, or just-
regulators, researchers, investors in-time delivery.
and unions—invest in research and Permitting and code officials
development, embrace technology, will need to be brought on board.
make iterative improvements to their When the manufacturer and the
products, connect to markets and jobsite are located in separate
manage the risks of fixed plant costs jurisdictions, complexities will
in a volatile market sector. compound. Projects may need to
Across the entire supply chain, hire a third-party inspector to act
owners, design teams and general on behalf of the authority having
contractors will need to develop jurisdiction. To get out in front of
the new skills and knowledge this issue, at least one modular
that procuring modular systems manufacturer, Katerra, is seeking to
requires. Design teams will need pre-certify its systems with major
to optimize their decisions for municipalities across the country.
modular construction: looking for Even building supplies can
opportunities for standardization be expected to change. All the
to facilitate mass customization, large building product companies
taking account of transportation and are taking this seriously, says
assembly, and making decisions Rupnik. They’re looking at their
much earlier than they’re used product lines and considering what
to. That includes the decision on they’d change if tomorrow, instead
whether to use modular construction of selling products to distributors
in the first place. It isn’t always the and installers, they started supplying
best way to go; and, even when it factories making 60-ft.-long
is, research suggests that making a modules, with a robot doing
commitment to modular at or later the lifting.
than the design development stage It may be tempting to refer to this
will end up costing the project more widespread change as a “disruption.”
than if the team had continued with The word is fittingly dramatic. But it
conventional construction. mischaracterizes what, in business
National Institute of Building Sciences Offsite Construction Council: https://www.nibs.org/page/oscc_resources
Modular Building Institute publications: https://www.modular.org/HtmlPage.aspx?name=foundation_resources
ModX publications: https://www.modx.network/media
Ryan E. Smith and John D. Quale, Offsite Architecture: Constructing the Future, Routledge, 2017.

Dodge Data & Analytics    29  www.construction.com SmartMarket Report

 Sidebar:  A Global Perspective on Modular Construction

Hares and Tortoises

A Global Perspective on Modular Construction

The findings of this report demonstrate the benefits of modular

PREFABRICATION AND MODULAR CONSTRUCTION 2020

construction, but it still has not seen wide use in the US.
Understanding what has led it to flourish in other markets globally
may suggest ways to encourage broader use in the US.

T
here’s little sign of it today, expertise to India. The government new rather than renovated housing;
but the US was once a of Hong Kong is piloting modular in state ownership or policies that
modular construction its public works projects, with the promote prefabricated dwellings;
pioneer. Back in the most recent budget injecting US$128 and a large multiresidential
1960s, the Department of Housing million to support innovation in building sector. The report also
and Urban Development (HUD), in construction technology, including highlights the need for better
collaboration with the Department modular. China’s growth in this data: Despite many years of active
of Defense, initiated Operation sector is nothing short of astounding. academic and industry interest,
Breakthrough, a demonstration the authors say available data on
project for the commercial potential Why Has Modular Taken prefabrication uptake internationally
of modular construction. Despite Off in Some Countries is still insufficient to support robust
significant public funding, Operation and Not Others? conclusions. Even so, it’s clear the US
Breakthrough did not in fact break Among factors contributing to the is lagging.
through; it was discontinued in viability of modular construction, The upside of falling behind is the
1975 due to a lack of private sector a 2019 McKinsey report identifies opportunity to learn from the front
uptake. Today modular construction unmet housing demand and the runners. A focus on the enduring
accounts for less than 4% of relative scarcity and high cost of success of modular construction
America’s housing market. construction labor as the most in Japan and Sweden, and the
In the meantime, other countries significant indicators. (Additional recent growth in Poland, may yield
have developed modular housing supply-side factors include supply the most productive insights.
manufacturing into viable industries. chain logistics and access to “What we’ve seen in China and
In Sweden, panelized construction materials, while demand-side Singapore is impressive numbers
displaced conventional methods factors include site constraints and and impressive speed,” says Ivan
to the point where it now accounts consumer perceptions of quality, Rupnik, associate professor at
for more than 80% of all housing with regulatory context as an over- Northeastern University’s School
construction. In Japan, panelized arching factor.) Mapping the two of Architecture, “but if we’re talking
and volumetric modules account primary predictors along X and Y about sustainability, and working
for some 20% of the million-odd axes shows Sweden and Japan in within a free market, in societies with
new single and multifamily homes the top right quadrant. Also present competition, then Japan, Sweden
built annually. In Poland, thriving in that quadrant are Australia, the and Poland continue to be the
steel and furniture industries have United Kingdom,and America’s West countries that are doing very, very
cross-pollinated to produce modular Coast, suggesting strong potential innovative things in ways that the US
construction companies exporting to for growth in those lagging markets. can learn from.”
the international hospitality sector. A six-country analysis in 2016
In Singapore, pressure from the by Australian researchers Dale Learning From
government’s productivity-focused Steinhardt and Karen Manley found the Leaders
Building and Construction Authority the uptake of modular construction With a modular construction
is speeding the growth of modular to be a function of four main industry nearly as old as America’s,
(mainly in precast concrete), with an determinants: a large housing Japan is now the most automated
initiative now underway to export industry, with a sudden spike in market in the world, says Rupnik, “so
the country’s rapidly developing demand; a consumer preference for automated that they haven’t changed

SmartMarket Report Dodge Data & Analytics   30  www.construction.com

 Sidebar:  A Global Perspective on Modular Construction

their equipment for 20 years, and companies participate to varying support for offsite construction in
PREFABRICATION AND MODULAR CONSTRUCTION 2020

it’s still probably 20 years ahead of degrees in design and development leading countries. “It’s perceived
even the Europeans.” Light gauge as well as fabrication. They market as an industry that produces high-
steel is the primary material used in modular construction as a green quality, secure jobs,” says Rupnik.
the country, although light wood is technology, a strategy that has “That’s something politicians like.
not uncommon. And while panelized proven successful with consumers And something we don’t associate
systems predominate, volumetric and also anticipates stricter with construction in this country.”
modular is growing. Arguably the environmental regulations coming America’s modular manufacturers
single most significant factor in that down the pipe. can learn a great deal from the
growth is a regulatory and inspection Poland is a recent arrival on the successes of their international
system specific to the sector. modular construction scene. It is counterparts, and potentially save
In its early days, Japan’s modular notable for translating its unique themselves a lot of effort. But it takes
industry emphasized affordability strengths—the second largest humility to learn from the success of
and speed, but soon shifted to furniture industry in the world (after others. “Sweden, Japan and Poland
marketing its advantage in quality. China) and a major steel industry— are much more humble in saying,
Supporting that, proprietary into two competing export-based ‘America’s done some neat things;
software and an expanded role volumetric fabricators almost we need to learn from them.’ They’ve
for architects (including at point entirely focused on supplying the been learning from us since the
of sale) facilitate a high degree of hospitality sector. Between them, ‘70s,” says Rupnik. “But we in the US
customization and increased client they have so far shipped units to have not done our homework. We are
satisfaction without sacrificing hotel developments in Holland, not looking at them enough.” n
standardization in fabrication or France, the United Kingdom,
predictability in delivery. Germany and the US. “Poland
Sweden’s modular industry continues to be the only country
is exceptional in its degree of that’s delivering to hospitality sector
automation, sustainability and specifications,” says Rupnik. “China
market share. It is unique in its hasn’t. Singapore hasn’t. We in the
double-digit percentage of taller US haven’t.”
buildings (multifamily and/or While American manufacturers
hospitality) using modular. Having and other actors in housing
started in panelized construction, and hospitality can learn from
the country’s major modular many aspects of these countries’
manufacturers began experimenting experience, one of the most
in the 1990s (in the context of significant aspects pertains to
regulatory, market and funding corporate culture: “the way that
changes) with a value-added process labor is treated, the way that craft
for turning panels into volumetric and know-how are valued across
modules. With Sweden’s light-wood the board,” says Rupnik. In global
volumetric modular housing now front-runners’ facilities, instead of
surpassing eight stories in height, unskilled or temporary labour, “it’s all
the method competes with concrete people who are very much involved
frame construction. in the entire practice,” he says.
Sweden’s vertically integrated That’s a major factor in public sector

That number excludes relocatable buildings. Adding them in would bring it closer to 9 or 10%.
Bertram, Nick et al. (2019) Modular Construction: From Projects to Products.
Japan, Sweden, Germany, Netherlands, United State, United Kingdom.
Steinhardt, Dale A. & Manley, Karen (2016) Adoption of prefabricated housing – the role of country context. Sustainable Cities and Society, 22, pp. 126-135.
Smith, Ryan E. & Rupnik, Ivan (2018) 5 in 5 Modular Growth Initiative: Research Roadmap Recommendations; Modular Building Institute, p. 13.

Dodge Data & Analytics    31  www.construction.com SmartMarket Report

 Data:­Modular Construction Trends
Use of Specific Types of Modular Construction

Frequency of Using Panelized Percentage of Projects Using Panelized Modular

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Modular Construction Construction

The chart at upper right shows the percentage of projects (Past 3 Years and Forecast for Next 3 Years)
on which respondents, by company-type, say some type Dodge Data & Analytics, 2020
of panelized modular construction was used over the past
three years and the percentage on which they believe it 50% or More of Projects
will be used during the next three years. 25% to 49% of Projects
■ Design firms report the greatest current use, and while Less Than 25% of Projects
the overall number predicting future usage does not
increase, the percentage of projects using panelized 84% 85% 83%
80%
modular construction shows growth. 76%
■ Trade contractors show the most future growth, 23% 27% 15% 20% 68%
15%
10%
although their overall usage is lower than the other 19% 19% 8% 15%
groups because not all of them do work where panelized 19% 22%
modular construction applies.

42% 36% 46% 44% 50% 46%

Types of Panelized Modular
Construction Being Used
The respondents reporting some level of panelized Architects/ Architects/ GCs/CMs GCs/CMs Trades Trades
modular construction usage were asked to identify, from Engineers Engineers (Past 3 (Next 3 (Past 3 (Next 3
(Past 3 (Next 3 Years) Years) Years) Years)
a list of four specific types, which ones they have had Years) Years)
experience with on their projects over the past three
years. The chart at lower right shows that breakdown.
Percentage of Projects Using Types of
■ Wall modules are the most frequent among the four
Panelized Modular Construction (Past 3 Years)
types of panelized modular construction, especially by
Dodge Data & Analytics, 2020
the architects who participated in this part of the survey
(95%), who report higher usage than the engineers. Architects/Engineers GCs/CMs Trades
■ High proportions of both design firms (69%) and GCs/
Wall Modules
CMs (77%) report using structural insulated panels over TypsMOD01
92%
the past three years. It makes sense that fewer trade
87%
contractors (45%) report use because many do not work
on the building envelope. 82%
■ Nearly half of design firms and GCs/CMs have utilized
Structural Insulated Panels
modular roof panels.
69%
■ The relatively high percentage (47%) of design firms

using modular floor panels may generate a future 77%

uptick among contractors (currently at 32%) because 45%
they will ultimately be implementing the design
Roof Panels
solutions that involve the modular floors. 46%
47%
21%

Floor Panels
47%
32%
18%

SmartMarket Report Dodge Data & Analytics   32  www.construction.com

 Modular Construction Trends 
Use of Specific Types of Modular Construction  CONTINUED

Frequency of Using Full Volumetric Percentage of Projects Using 3D Modules/

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Modular Construction Full Volumetric Construction

Today, full volumetric is less frequently used than (Past 3 Years and Forecast for Next 3 Years)
panelized modular, but future predictions are strong. Dodge Data & Analytics, 2020

■  Over one third of design firms (36%) forecast

50% or More of Projects
significant involvement (25% or more of their projects)
25% to 49% of Projects
with full volumetric over the next three years,
Less Than 25% of Projects
compared with less than a quarter (24%) of them over
the past three years. 87%
■  GCs/CMs forecast the greatest future use, with one
81% 79%
72% 75%
quarter (24%) predicting they will see full volumetric on 13% 24%
17%
half or more of their upcoming projects, and only 13% 12% 59% 19%
23% 10%
anticipating no involvement. 12% 20% 13% 10%
■  Trades show the biggest projected rise in total users
6%
(59% to 75%).
48% 45% 42% 53% 40% 46%

Types of Full Volumetric Modular

Construction Being Used Architects/ Architects/ GCs/CMs GCs/CMs Trades Trades
Similar to the frequency evaluation of the specific types of Engineers Engineers (Past 3 (Next 3 (Past 3 (Next 3
panelized modular, respondents reporting some level of (Past 3 (Next 3 Years) Years) Years) Years)
usage of full volumetric modular were asked to identify, Years) Years)
from a list of three, which ones they have had experience
with on their projects over the past three years. The chart
at lower right shows that breakdown Percentage of Projects Using Types of 3D
■  3D modules meant to be joined together onsite are Modules/Full Volumetric Construction
the most frequently used among the three types, with (Past 3 Years)
similar percentages reported by design firms, GCs/CMs Dodge Data & Analytics, 2020

and trades.
Architects/Engineers GCs/CMs Trades
■  Experience with a flat-packed construction system for
TypsMOD (4)
site assembly is consistent across company-types, but 3D Modules Built to Be Joined Together Onsite
not as frequent as 3D modules joined onsite. 81%
■  3D modules slotted into a structure that can be
87%
transported are most commonly used by trade
86%
contractors (46%), and least frequently cited by both
design firms and GCs/CMs. A Flat-Packed Construction
System for Site Assembly
44%
47%
43%

3D Modules Slotted Into a

Structure That Can Be Transported
32%
40%
46%

Dodge Data & Analytics   33  www.construction.com SmartMarket Report

 Modular Construction Trends 
Use of Specific Types of Modular Construction  CONTINUED

Frequency of Using Factory-made Percentage of Projects Using Factory-made

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Turnkey Modular Building Units Turnkey Building Units

About three quarters (ranging between 68% and 83%) of (Past 3 Years and Forecast for Next 3 Years)
the company-types surveyed report some use of factory- Dodge Data & Analytics, 2020

made turnkey building units (e.g., bathroom pods, utility

50% or More of Projects
rooms, exam rooms, etc.) over the past three years,
25% to 49% of Projects
although most say that has taken place on less than 25%
of their projects. Less Than 25% of Projects
■ Trade contractors forecast the most growth in usage,

with 31% predicting they will use them on 25% or more 83% 81%
78%
72% 7% 68% 10%
of their projects in the next three years, compared with 68% 8%
only 10% currently at that level. 5% 2%
6% 8% 22% 8%
■ Design firms and GCs/CMs also plan more usage, 7% 18% 21%
generating a predicted average that 29% of all company-
types will be implementing factory-made turnkey
building units on at least a quarter of their projects in 55% 52% 59% 54% 58% 50%
the next three years.

Frequency of Using Relocatable

Modular Structures Architects/ Architects/ GCs/CMs GCs/CMs Trades Trades
To distinguish them from permanent modular Engineers Engineers (Past 3 (Next 3 (Past 3 (Next 3
(Past 3 (Next 3 Years) Years) Years) Years)
construction, the Modular Building Institute defines Years) Years)
relocatable modular structures as ones that are
“designed to be reused or repurposed multiple times and
transported to different building sites.”
Percentage of Projects Using Relocatable
There is notable variety across company types in
Modular Structures
their reported and predicted use of relocatable
(Past 3 Years and Forecast for Next 3 Years)
modular structures.
■ Two thirds (66%) of design firms report some level of Dodge Data & Analytics, 2020

usage, but predicted growth only increases to 69% in

TypsMOD (3) of Projects
50% or More
three years.
■ GCs/CMs are the current leaders (71%) in using 25% to 49% of Projects
relocatable modular, and more (79%) believe they will Less Than 25% of Projects
79%
be doing so in the next three years.
■  By contrast, trade contractors are least active now and 69% 71%
66% 22%
show a reduction going forward. Interestingly, only the 4%
4% 61%
19%
companies at the lowest level of implementation (25% of 10% 14% 53%
their projects) will decline. The higher implementation 8%
5% 23%
levels are expected to remain the same.
23%

15%
52% 51% 47% 49%
15%

23%
15%

Architects/ Architects/ GCs/CMs GCs/CMs Trades Trades

Engineers Engineers (Past 3 (Next 3 (Past 3 (Next 3
(Past 3 (Next 3 Years) Years) Years) Years)
Years) Years)

SmartMarket Report Dodge Data & Analytics   34  www.construction.com

 Modular Construction Trends  CONTINUED

Most Frequent Building Types for Use of

Permanent Modular Construction

Distinct from relocatable modular structures, Architects/Engineers’ Top 10 Most Frequent

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

permanent modular construction refers to the Building Types for Using Permanent Modular
process of creating buildings from premanufactured Construction (Forecast for Next 3 Years
deliverable modular sections that are meant to remain Compared With History of Last 3 Years)
in place after completion. Dodge Data & Analytics, 2020

Architects/Engineers (Next 3 Years)

Building Types Where Permanent Architects/Engineers (Last 3 Years)
Modular Construction Is Most
Frequently Used Multifamily
Practitioners are finding uses for permanent modular 51%
construction on numerous types of buildings. To examine 16%
the dynamics of this market, survey respondents in the
Hotels and Motels
modular line of inquiry were shown a list of 14 building
34%
types and asked to identify those on which modular
construction has frequently been applied over the last 43%
three years, and also those they believe will see high Schools K-12
frequency in the next three years. The charts in this 25%
section of the report compare, for each type of company,
19%
their top 10 most frequently predicted building types with
their historical experience. Offices Low-Rise (1-4 Stories)
24%
Architects’ and Engineers’ 20%
Perspectives College Buildings and Dormitories 
The chart at right shows the top 10 building types
22%
identified by architects and engineers.
■ Design firms are extremely positive about the role of 19%
modular on multifamily projects going forward. This Commercial Warehouses
contrasts sharply with their pessimistic future view for 19%
prefabrication (see page 8).
14%
■ Fewer, however, predict frequent use of permanent

modular on hotels and motels, healthcare facilities and Retail Stores and Shopping Centers
to a smaller degree on public buildings. 17%
■ The other six building types each show a solid increase
12%
over past levels, although none garner more than 25%
predicting high future frequency. Manufacturing Buildings
16%
11%

Public Buildings
14%
17%
Healthcare Facilities
14%
24%

Dodge Data & Analytics   35  www.construction.com SmartMarket Report

 Modular Construction Trends
Most Frequent Building Types for Use of Permanent Modular Construction  CONTINUED

General Contractors’ and Construction GCs/CMs’ Top 10 Most Frequent Building

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Managers’ Perspectives Types for Using Permanent Modular

GCs/CMs selected the 10 building types (out of 14) that Construction (Forecast for Next 3 Years
they believe will have the highest frequency of permanent Compared With History of Last 3 Years)
modular construction in the next three years. The chart at Dodge Data & Analytics, 2020

right compares the percentage that chose each with how

GCs/CMs (Next 3 Years)
many say they experienced a high frequency over the last
GCs/CMs (Last 3 Years)
three years.
While GCs/CMs and design firms selected the same Healthcare Facilities
10 buildings from the list of 14, there are interesting 41%
differences in their perspectives.
■ Healthcare facilities top the list for GCs/CMs, with 41%
22%
predicting high frequency of permanent modular. This Hotels and Motels
is nearly twice the number who report experiencing 37%
high frequency over the last three years (22%) and 29%
starkly contrasts with design firms, only 14% of which
College Buildings and Dormitories
predict strong future use.
■ The hotel/motel market shows another contrasting
32%
dynamic between GCs/CMs, who forecast a strong 24%
increase in permanent modular, and design firms
Multifamily
who predict less activity. Interestingly, though, the 32%
proportion of each group predicting high future
frequency is nearly equal (37% and 34%, respectively). 34%
■ Educational buildings (both higher ed and K-12) are
Schools K-12
both forecasted for significant upticks. 31%
■ GCs/CMs agree with the outlook of design firms
24%
that public buildings are likely to see less permanent
modular activity. This may be due to general concerns Offices Low-Rise (1-4 Stories)
by both groups about available public funding for 24%
projects in that market, but it represents a significant 22%
part of the US construction industry and should be a
focus for the use of innovative approaches. Commercial Warehouses
■ GCs/CMs foresee a slight pullback in permanent 20%
modular for multifamily projects (to 32% from 34%), 15%
compared with the high percentage of design firms
Retail Stores and Shopping Centers
making a strong growth prediction (51%).
17%
14%

Manufacturing Buildings
17%
19%

Public Buildings
15%
22%

SmartMarket Report Dodge Data & Analytics   36  www.construction.com

 Modular Construction Trends
Most Frequent Building Types for Use of Permanent Modular Construction  CONTINUED

Specialty Trade Contractors’ Trade Contractors’ Top 10 Most Frequent

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Perspective Building Types (Forecast for Next 3 Years

Trade contractors also chose which building types they Compared With History of Last 3 Years)
believe will most frequently feature permanent modular Dodge Data & Analytics, 2020
construction over the next three years. The chart at right
Trades (Next 3 Years)
shows the percentages designating each of their overall
top 10 as high future growth markets compared with how Trades (Last 3 Years)
many experienced high frequency with them over the last Healthcare Facilities
three years.
56%
Trade contractors’ forecasts align with those of the
other types of companies in several ways but also 31%
contrast with them, sometimes quite significantly. College Buildings and Dormitories
■ Healthcare facilities, higher ed buildings and 52%
hotels/motels top the list, and all earned high 35%
frequency growth projections from 50% or more of
Hotels and Motels
trade contractors.
■ While trade contractors join the unanimous view that
50%
K-12 projects should see more permanent modular in 13%
the next three years, they are alone in their positive Schools K-12
outlook for public buildings, almost doubling from 31%
those citing a high level of past experience (17% to 31%).
■ Trade contractors are in alignment with the others in
25%

forecasting growth in the low-rise office market, but Public Buildings

are the only company-type to include high-rise office 31%
buildings among their top 10, with over a quarter (27%) 17%
predicting frequent activity.
■ Interestingly, trade contractors agree with design firms
Manufacturing Buildings
on the outlook for permanent modular in multifamily, 27%
with only a quarter feeling optimistic in spite of nearly 25%
half (46%) having seen high activity in recent years.
Offices High-Rise (5+ Stories)
27%

23%

Offices Low-Rise (1-4 Stories)

27%

15%
Multifamily
25%
46%
Commercial Warehouses
23%
27%

Dodge Data & Analytics   37  www.construction.com SmartMarket Report

 Modular Construction Trends  CONTINUED

Impact of Modular Construction on

Schedule and Cost Performance

This page of the report examines the positive impact of Impact of Modular Construction on Project
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

modular construction on schedule and cost performance. Schedule Performance (Percentages Reporting
Each of Three Levels of Improvement)
Schedule Performance Dodge Data & Analytics, 2020

The chart at upper right shows the percentage of

Decreased by More Than 10%
schedule performance improvement that respondents
Decreased 6%–10%
report experiencing over the past three years from
Decreased by 5% or Less
modular construction.
■ Almost all (88%) GCs/CMs report positive impact with 88%
60% citing better than 5% schedule gains.
■ Nearly two thirds (65%) of design firms agree on its

positive impact, with 20% reporting the highest level 65% 40%
(over 10% improvement).
20%
■ While over one third (36%) of trade contractors report

improvement in schedule performance, they are less 36%

13% 20%
enthusiastic overall than design firms or GCs/CMs.
18%
Cost Performance 32% 28%
The chart at lower right shows the percentage of 18%
cost performance improvement that respondents
report experiencing over the past three years from Architects/ GCs/CMs Trades
Engineers
modular construction.
■ GCs/CMs are even more enthusiastic about improved

cost performance (91%), with over two thirds (68%)

citing better than 5% positive budget impact. Impact of Modular Construction on Project
■ Almost half of trade contractors (46%) and design firms Budget Performance (Percentages Reporting
(47%) are positive about cost impact with the similar Each of Three Levels of Improvement)
percentages citing more than 10% gains. Dodge Data & Analytics, 2020

Decreased by More Than 10%

BIM Use Enhances Improvements
Decreased 6%–10%
As shown in the matrix below, BIM use correlates
strongly to improved cost performance from modular Sched Cost Bens
Decreased (1) or Less
by 5%
construction and also, to a lesser degree, schedule gains.
91%

Percentages Reporting Improved Schedule

48%
and Cost Performance From Modular
Construction (by Level of BIM Usage) 47% 46%

Companies Companies That Companies That 20% 18%

That Do Not Use BIM on Less Use BIM on 50% 20%
Use BIM Than 50% of or More of
Projects Projects 8% 8%
Percentage Reporting 23%
Improved Schedule 46% 46% 59% 19% 20%
Performance
Percentage Reporting Architects/ GCs/CMs Trades
Improved Cost 21% 44% 46% Engineers
Performance

SmartMarket Report Dodge Data & Analytics    38  www.construction.com

 Modular Construction Trends  CONTINUED

Impact of Modular Construction

on Seven Specific Benefits

As shown with prefabrication earlier in this report, the Impact of Modular Construction (Percentages
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

survey also examined the impact of modular construction Reporting Medium, High or Very High Contribution
on seven other specific aspects of project delivery. The for Each Factor)
chart at upper right shows the percentage of respondents Dodge Data & Analytics, 2020
rating each as either making a medium, high or very high
level of positive contribution. Improved Productivity
■ Improvements to productivity, quality and schedule 93%
certainty top the list across all company types. Improved Quality
■ The other benefits rate strongly as well, with no fewer
90%
than 83% of respondents citing the contribution of
Increased Schedule Certainty
modular construction to their achievement.
90%
RESPONSES BY COMPANY-TYPE
Improved Cost Predictability
To examine contrasts and commonalities between
their perspectives, the other charts in this section of 88%
the report separately show the findings from the three Reduced Waste Generated by Construction
main respondent groups (Architects/Engineers, GCs/ 86%
CMs, Trades). In each, the order reflects the sum of their
medium, high and very high rating levels. Increased Client Satisfaction
86%
Architects/Engineers Improved Safety Performance
The chart at lower right shows the responses from design
83%
firms in the survey.
■ Improved quality, schedule certainty and cost

predictability all garner over 90% acknowledgement.

■ Improved productivity and client satisfaction (both Architects/Engineers: Impact of Modular
89%) follow close behind. Construction (Percentages Reporting Medium,
■ Reduced waste earns more very high impact High or Very High Contribution for Each Factor)
votes (23%) from this group compared with Dodge Data & Analytics, 2020

prefabrication (20%), although the total positive Very High High Medium
numbers are similar (86% and 85%, respectively).
■ Most (81%) cite improved safety performance,
Improved Quality
even though design firms are less directly involved 16% 46% 31% 92%
in that aspect. Notably this is a significantly higher
percentage than gave a positive safety rating to Increased Schedule Certainty
prefabrication (66%). 14% 43% 34% 91%

Improved Cost Predictability

14% 42% 35% 91%
Improved Productivity
14% 43% 32% 89%
Increased Client Satisfaction
14% 40% 35% 89%
Reduced Waste Generated by Construction
23% 41% 22% 85%
Improved Safety Performance
14% 31% 36% 81%

Dodge Data & Analytics   39  www.construction.com SmartMarket Report

 Modular Construction Trends
Impact of Modular Construction on Seven Specific Benefits  CONTINUED

GCs/CMs GCs/CMs: Impact of Modular Construction

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Similar to design firms, the responses from GCs/CMs on Seven Key Performance Factors
shown at right are all 80% or higher, showing enormous (Percentages Reporting Medium, High or Very
positive enthusiasm for modular construction. High Contribution for Each Factor)
■ Improved productivity earns nearly unanimous Dodge Data & Analytics, 2020

acknowledgement (99%) firmly establishing it as a

Very High High Medium
reasonable expectation by any user.
■ Schedule certainty (92%) and cost predictability (91%)
Improved Productivity
exceed this group’s ratings for prefabrication (90% and 27% 99%
27% 45%
83%, respectively).
■ The impact on client satisfaction (80%) is strong even Increased Schedule Certainty
though it places last on the list in relation to the six other 17% 47% 28% 92%
outstanding benefits.
Improved Cost Predictability
23% 33% 35% 91%

Improved Quality
20% 40% 30% 90%

Reduced Waste Generated by Construction

27% 38% 23% 88%
Improved Safety Performance
20% 40% 25% 85%

Increased Client Satisfaction

17% 38% 25% 80%

Other Bens (3)

SmartMarket Report Dodge Data & Analytics   40  www.construction.com

 Modular Construction Trends
Impact of Modular Construction on Seven Specific Benefits  CONTINUED

Trade Contractors Trade Contractors: Impact of Modular

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Trade contractors align in most cases with the other Construction on Seven Key Performance
respondents, and are equally enthusiastic, with more Factors (Percentages Reporting Medium, High or
than 80% reporting medium or higher achievement of Very High Contribution for Each Factor)
each performance factor. Dodge Data & Analytics, 2020

■ As is the case with their ratings for prefabrication, the

Very High High Medium
percentages of trades giving very high impact scores
is notably larger than that of design firms or GCs/CMs Improved Productivity
for most of the aspects, indicating a true appreciation of 35%
27% 27% 89%
the benefits provided.
■ In second place, improved quality garners almost Improved Quality
twice as many very high impact votes (29%) as were 29% 41% 18% 88%
granted by design firms (16%), even though it ranked it
first for designers. Improved Safety Performance
■ Even more emphatic than their acknowledgement for 39% 29% 18% 86%
prefabrication, their strong rating for improved safety Increased Client Satisfaction
from modular construction (39% very high and 86% 27% 37% 22% 86%
overall) is again especially meaningful because these
Increased Schedule Certainty
are the companies that provide the jobsite laborers
most at risk for safety incidents. 25% 33% 27% 85%
Reduced Waste Generated by Construction
24% 39% 22% 85%

Improved Cost Predictability

16% 43% 22% 81%

Other Bens (4)

Dodge Data & Analytics   41  www.construction.com SmartMarket Report

 Modular Construction Trends  CONTINUED

Impact of Project Delivery Models on

Modular Construction

Frequency of Project Delivery Method Frequency of Project Delivery Method When

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Participants were asked how frequently various project Modular Construction Was Used
delivery methods were in use on their projects that (Last 3 Years)
involved modular construction over the past three Dodge Data & Analytics, 2020

years. The chart at upper right shows the responses

First Most Frequent
broken out by the percentages of all respondents who
Second Most Frequent
cited each method as having been either first, second or
Third Most Frequent
third most frequent.
■ Design-build ranks as the most frequent method. This
Design-build
is different from prefabrication, where it is second to
39% 29% 14%
traditional design-bid-build.
■ The second-place ranking of design-bid-build suggests Traditional Design-bid-build
that modular construction can be deployed even in a 31% 20% 15%
traditional bid environment.
■ As with the prefabrication results, CM at Risk and IPD
Construction Manager at Risk
are each included among the three most frequent by 15% 18% 22%
about half of respondents. Integrated Project Delivery
8% 20% 20%
Degree to Which Delivery Methods
Help Enable Modular Construction
Respondents with modular construction experience with
any of the methods shown in the chart at lower right were
asked how much they believe that method enabled the
use of modular construction.
Degree to Which Modular Construction Was
While all three methods garner very positive ratings,
Enabled by Project Delivery Method
integrated project delivery and design-build both score
(By Company Type)
especially well, with 45% and 34%, respectively, earning
Dodge Data & Analytics, 2020
“significant help” ratings. This is even more positive than
the prefabrication findings, where the percentages citing Helped Significantly
“significant help” are 30% and 26%, respectively. Helped
DESIGN-BID-BUILD HINDERING MODULAR
76% 79%
CONSTRUCTION
Participants were also asked if they believe traditional
63%
design-bid-build hinders modular construction. Although
34% 45%
37% of the architects responding say they believe Proj
13%Del (1)
design-bid-build hinders the effective use of modular
construction, the contractors ranged between 8% and
12%, yielding a total of 20% across all respondents. This
suggests that a traditional bid method on a project should
50% 42%
not impede the use of modular construction. 34%

Construction Design-build Integrated

Manager at Risk Project Delivery

SmartMarket Report Dodge Data & Analytics    42  www.construction.com

 Modular Construction Trends  CONTINUED

Selection of Modular Construction Suppliers

Top Factor That Influences Selection of a

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Factors Influencing Selection of a Modular Builder/Manufacturer

Modular Construction Supplier (Percentage Identifying Each as the Most
Participants were asked to identify which of six factors
Influential Factor)
is the most influential on their decision-making about
Dodge Data & Analytics, 2020
selecting a supplier to provide modular construction
services on their projects. The chart at right shows the Architects/Engineers GCs/CMs Trades
percentages, by company-type, who selected each.
■ As with the findings for selecting a prefabrication
Company With the Best Expertise for the Project
supplier, design firms and GCs/CMs most highly 39%
value expertise. 35%
■ Owner input is far greater for modular (average 24%)
23%
than for prefabrication (average 12%). This is especially
true for trade contractors (27% compared with 14%). Owner Preference
Yet similar to the findings for prefabrication, design 31%
firms (31%) are far more influenced by owners on their 15%
modular supplier decisions than GCs/CMs (15%). 27%
■ Price is not a highly influential factor for selection of

a modular construction supplier. This contrasts with Have Their Own Set of Criteria
prefabrication where it ranked second overall on this 6%
same list of six factors and was cited as the primary 12%
influencer by 20% of GCs/CMs. This may reflect the
8%
different maturity levels between these two markets,
where because there are more suppliers available Same Modular Builder/Manufacturer for All of Our Projects
for prefabrication, price can be more readily used for 4%
competitive evaluation. As more providers enter the
7%
modular market, price can be expected to become more
of a factor. 4%

Lowest Bidder
8%
6%
0%

Company Closest to the Project (by Distance)

3%

0%
0%

Dodge Data & Analytics   43  www.construction.com SmartMarket Report

 Modular Construction Trends  CONTINUED

BIM-Driven Modular Construction

Most of the companies (89%) that participated in this Percentage of BIM Users Engaged With
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

survey say that BIM is being deployed on at least some Model-Driven Modular Construction
percentage of their projects (for more information on BIM (Comparing Current Implementation Levels With
engagement, see Methodology, page 64). Within that Predicted Levels in 3 Years)
group, the companies also designated for the modular Dodge Data & Analytics, 2020

construction line of inquiry were asked about how BIM is

being applied specifically to that activity (i.e., BIM-driven Over 50% of Projects
modular construction). This part of the report addresses 25% to 50% of Projects           
those findings. Less Than 25% of Projects
No (0%) Projects
Current and Future Implementation of
BIM for Modular Construction
The chart at upper right shows the percentages of the
34%
BIM users described above who are currently engaged
55%
with BIM-driven modular construction at several levels of
implementation, and the percentages who believe they
will be at those levels within the next three years. 23%
■ The percentage using BIM for modular construction

on at least a quarter of their projects will grow 22%

dramatically, from 57% to 77% in the next three years.
41%
■ Within three years virtually all (99%) BIM users will be

leveraging it for modular construction. 23%

3% 1%
High-Level Implementation by Current 3 Years
Company-Type
The chart at lower right shows the current and future
percentages of BIM users, by company-type, using
Percentage of BIM Users Who Are Highly
it for modular construction on 50% or more of their
Engaged in Model-Driven Modular
projects. The findings align with those for model-driven
Construction (High/Very High Use, Current and
prefabrication but with higher percentages forecasting
Forecasted Over Next 3 Years)
future use (average 54% compared with 40%). Dodge Data & Analytics, 2020
■ Trade contractors are the most deeply engaged, with

nearly six out of 10 (59%) predicting a high level of Currently Using BIM for Modular Construction
implementation in the next three years. at High or Very High Level
■ The number of design firms at a high level of Planning to Use BIM for Modular Construction
implementation will almost double, reaching near at High or Very High Level in the Next 3 Years
parity with contractors. This should help to drive an 59%
integrated approach to modular construction on 53%
project teams. 50%
BIM (1)
38%
33%
29%

Architects/ GCs/CMs Trades

Engineers

SmartMarket Report Dodge Data & Analytics    44  www.construction.com

 Modular Construction Trends
BIM-Driven Modular Construction  CONTINUED

Most Important Reasons to Use BIM for

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Reasons to Use BIM for Modular Construction

Modular Construction Dodge Data & Analytics, 2020
To understand the drivers for its adoption and the
expectations for its impact, current users of BIM for Architects/Engineers GCs/CMs Trades
modular construction were asked to select up to three
Improved Schedule Performance
reasons (from a list of 10) why they are engaging with
38%
it. The chart at right shows the leading eight reasons
54%
broken out by company-type with percentages indicating
how many selected each to be among their top three 52%
most important. They are listed in order of the average Improved Coordination
percentage across all who responded. 47%
■ Schedule performance is the most widely reported,

reinforcing it as a key benefit of modular construction. 41%

■ Improved coordination ranks second overall and 41%
first with design firms. This is an integral benefit of Reduced Onsite Rework
modular construction because modules are coordinated 17%
in production, limiting coordination issues to site 31%
alignment and connection.
39%
■ Of nearly equal importance to trade contractors is

reducing onsite rework (39%) and improving cost Owner Demand

performance (35%). 36%
■ Similar to the findings for prefabrication, many more
26%
design firms (34%) select improved quality compared
26%
with trade contractors (20%), who are more attentive to
process-related improvements. Improved Cost Performance
17%
MANDATING THE USE OF BIM FOR
26%
MODULAR CONSTRUCTION
Also like the findings for prefabrication, demand by 35%
another project team member appears prominently Improved Quality
among many companies’ top three reasons for becoming 35%
engaged in BIM-driven modular construction. For
22%
example, 36% of design firms cite demand from owners
and 30% of trades identify demand from GCs/CMs. 20%
Contractor/CM Demand
26%
NA%
30%
Architect or Engineer Demand
NA
22%
20%

Dodge Data & Analytics    45  www.construction.com SmartMarket Report

 Modular Construction Trends  CONTINUED

Top Factors That Influenced Use of

Permanent Modular Construction (Last 3 Years)

Respondents were asked to rate the level of influence Top Factors Influencing Use of Permanent
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

that each of seven factors had on their decision to use Modular Construction in Last 3 Years
modular construction over the last three years. The (Percentages Citing High or Very High Level
chart at right shows the percentages who cite either of Influence)
high or very high levels of influence, divided by type of Dodge Data & Analytics, 2020

company, and in the order of the average of the three Architects/Engineers GCs/CMs Trades
company-type ratings.
■ The desire to improve productivity is the most Improved Productivity
influential factor overall, reinforcing similar findings for 53%
the top drivers of prefabrication (see page 24).
78%
■ Notably larger percentages of GCs/CMs cite the
65%
influence of workforce shortages (51%), safety (59%)
and productivity (78%) than do the other types of Remaining Competitive
companies, clearly identifying these as the top drivers 47%
for that group. 53%
■ Trades lead in identifying the need to remain
60%
competitive (60%), and being competitive is the second
most influential factor overall. Improved Cost Performance
■ Owner demand is a powerful driver for all respondents 58%
and will likely increase as more become aware of the 49%
benefits of modular construction. 50%
■ Interestingly, design firms report having been
Safer Working Conditions
most highly motivated by seeking improved cost
performance (58%), outscoring both GCs/CMs (49%) 36%
and trades (50%). This finding aligns with this group’s 59%
drivers for prefabrication as well, clearly indicating 52%
that architects and engineers understand both Owner Demand
prefabrication and modular construction can have a
45%
positive influence on cost control and should lead to
more development of design solutions that consciously 49%
enable both. 50%
■ Over one third (36%) of design firms cite safety as a
Workforce Shortages
motivator, and while that is significantly less than either 41%
GCs/CMs (59%) or trades (52%), it is an encouraging
51%
sign that design professionals are aware of the safety
42%
ramifications of using offsite construction and are
thinking about everyone involved in the project Commercial Availability of Permanent Modular Components
delivery process. 41%
32%
17%

SmartMarket Report Dodge Data & Analytics    46  www.construction.com

 Modular Construction Trends  CONTINUED

Top Positive Impacts That Will Drive More

Permanent Modular Construction (Next 3 Years)

To understand their future expectations, participants Top Factors That Will Influence Use of
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

were asked to identify which benefits they believe Permanent Modular Construction in Next
will be the most influential to drive more modular Three Years (Percentages Forecasting High or
construction over the next three years. The percentages Very High Level of Influence)
in the chart at right represent how many of each Dodge Data & Analytics, 2020
company-type predict a high or very high level of
Architects/Engineers GCs/CMs Trades
influence. The order reflects the averages of the three
company-type scores for each factor.
Improves Project Schedule Performance
■ As with the findings for prefabrication, all respondents
60%
agree that improving project schedule performance will
be the top future driver for modular construction and 67%
decreasing construction cost is almost as highly rated. 65%
■ Again echoing the prefabrication results, improving
Decreases Construction Costs
project quality is third-ranked overall and is a 53%
particularly high demand from design firms. But
somewhat differently, trade contractors also note it 52%
as a strong future motivator (56%) compared with the 52%
number acknowledging that for prefabrication (43%). Improves Project Quality
■ And also similar to the findings for prefabrication, 54%
almost half of GCs/CMs and trades indicate they will 34%
be very focused on modular construction’s positive
56%
impact on dealing with workforce shortages in the
coming years, and about one third of design firms Helps Deal With Skilled Labor Shortages
(31%) concur. 31%
■ Safety scores strongly with GCs/CMs (36%) and trades 48%
(42%), and even though fewer design firms give it a top 46%
rating (10%), that percentage is still significantly higher
Improves Project Safety
than those rating it as highly for prefabrication (3%).
10%
The other three drivers (year-round construction, 36%
streamlined inspection and achieving green objectives) 42%
resonated with design firms more than contractors, Enables Year-Round Construction
although they scored less highly overall. But as more
27%
experience with modular construction across the
industry generates evidence of its beneficial impact, 21%
future studies are likely to show an increased awareness 6%
and value related to these and other usage drivers. Streamlined Inspection Process
16%
12%
4%
Helps Achieve Green Objectives
16%
7%
6%

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 Modular Construction Trends  CONTINUED

Top Obstacles Inhibiting More Use of

Permanent Modular Construction

The survey asked respondents to select which three Obstacles to Increasing Number of Projects That
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

factors (from a list of eight) are the biggest obstacles Use Permanent Modular Construction
preventing their companies from doing more modular (Percentages That Include Each Factor Among Top Three)
construction. The percentages in the chart at right Dodge Data & Analytics, 2020

represent how many, by company-type, selected each Architects/Engineers GCs/CMs Trades

obstacle as among their top three. The order reflects the
averages of those scores for each obstacle. Owner Is Not Interested in a Modular Approach
■ Lack of owner interest is the top obstacle for about half 52%
of all respondents. Hopefully this will change as more 51%
owners become familiar with the modular process and
48%
comfortable with its results. Notably, unfamiliarity with
the modular process is a relatively low obstacle for Availability of Modular Component Manufacturers
each company-type, only ranking sixth among eight, so 47%
owner awareness is the factor needing most attention. 41%
■ Availability of modular component manufacturers is
23%
the second-most cited obstacle by design firms (47%)
and GCs/CMs (41%), though significantly less so by Our Project Types Not Applicable for Modular Construction
trades (23%), perhaps because they are not as involved 37%
in sourcing suppliers. 24%
■ As with the findings for prefabrication, the type of
29%
project and the project delivery method are both
meaningful obstacles for all company-types. These Project Delivery Method Prevents Effective Modular Use Planning
obstacles should lessen as modular becomes applicable 20%
to more project types and is included more frequently 31%
during design so it can be implemented regardless of
33%
delivery method.
■ One third (32%) of GCs/CMs express concern about Availability of Trained Workforce to Install Modular Components
adequately trained workers, as do 25% of design 25%
firms. Since workforce shortages are an issue across 32%
the industry, finding resources specifically trained to 10%
assemble and install modular components would be
even more challenging. This identifies an important Not Familiar With Process of Modular Construction
need that can be addressed by associations, trade 18%
unions, academic and training institutions, and 12%
companies themselves. 25%
■ Encouragingly, relatively low percentages of

respondents cite either cost or quality as among their Costs Too Much
top three obstacles. 17%
25%
8%

Concern About Quality

25%
14%
8%

SmartMarket Report Dodge Data & Analytics   48  www.construction.com

 Interview:­Thought Leader
Stacy Scopano, Chief Technology Officer, Skender
Stacy’s experience includes a broad spectrum of technologies
used by real estate, architecture, engineering and construction
industries. Most recently, he was vice president of innovation
at Skanska USA. Previously, he was the senior strategist for
PREFABRICATION AND MODULAR CONSTRUCTION 2020

building construction at Autodesk, Inc. He has served as a past

chairman of technology for the AGC BIMForum. He holds a
degree in economics from the Georgia Institute of Technology.

What role has the development opportunity, we start with this catalog or downstream to power production,
of BIM played in the rise of parts, which we ultimately develop we’ve looked to extend that effort in
of prefabrication and into fully detailed, production-level a variety of ways, and specifically
modular construction? models.These literally turn into the through virtual or augmented reality.
SCOPANO: Prefab has always been information flows in our factory that At the early stages of designing
present in the trades, and it’s also we’re cutting steel from, that we’re the factory, we created virtual and
telling that BIM had its earliest assembling walls from, that drive the augmented reality experiences for
applications in prefab. Steel and MEP production process. our internal teams to validate the
trades in the ’90s and early 2000s At the end of the project, we look at production flow, the design and the
created models, first and foremost, any modifications that were made to ergonomics of the line itself. So at that
to maximize their own coordination a standard module, wall or detail, and high-end level, we were internalizing
and production processes—driving update that source catalog where we the process as we were developing
detailed shop drawing, bills of start the next project. So it’s a virtual our production capabilities.
material and automated equipment feedback loop that makes an iterative As these visual expressions that
in production. learning environment. inform design are maturing, they’re
The majority of designers and giving us the ability to immerse a
contractors followed in the 2000s, What challenges or obstacles broader set of stakeholders. We can
generating visualizations, simulations, would you highlight? put a client in a small, medium or big
drawing production and trade SCOPANO: The architectural and space. We can put them in spaces with
coordination, ultimately expanding design community is largely different levels of natural light. And we
those early trade applications of BIM. standardized around some common can quantify the flavors of investment
So as we now see an expansion sets of platforms. But the closer you that come with those outcomes.That
of prefabrication to integrate more get to reality, the more it fractures into immersion is sensory. But it’s also
disciplines, trades and material a lot of specialty platforms for each quantified and informed.
products in the modern offsite discipline and trade. Our approach
process, it’s natural that we also see was to take the design platform, and Where do you see modeling
the integration of the entire lifecycle of try to push it as far downstream as technology heading? What’s next?
BIM applications in parallel. possible.That ended up creating a SCOPANO: In the next five-year
whole host of challenges for us. For horizon, these experiences will
Could you walk us through the second-generation effort, we’re get richer—with added elegance.
the use of BIM in a vertically trying to rationalize which of our But I think there’s another axis of
integrated design and products and projects can take this productiveness. We’re in the early
fabrication facility? single platform all the way down, and stages of talking about whether
SCOPANO: BIM is embedded across where we need to make some hand- this should only be for clients.
the lifecycle for us. Very early on, even offs to complementary platforms. Why wouldn’t we use these same
before we engage the client, we do a techniques to train our labor force?
lot of modeling to understand what How are virtual and augmented There’s a lot of opportunity to get
our offering is. It’s almost like creating reality complementing your use really intimate with the means of
an early product catalog that we begin of BIM? production with some of these
testing, property by property. SCOPANO: When we develop these platforms and techniques.That’s
When we then get a project models, either upstream for design very promising.

Dodge Data & Analytics   49  www.construction.com SmartMarket Report

 Data:­Perspectives of Modular
Builders/Manufacturers

Differences Between Modular Specialists and

Other Respondents

Among the 608 companies that responded to this Biggest Variances in Forecast for Frequent
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

survey, 15 focus solely on modular construction as Use of Permanent Modular Construction in

their core business. the Next 3 Years (Comparing Modular Builders
■ In the last three years, 87% of modular specialists and Manufacturers With All Other Respondents)
report having used permanent modular construction, Dodge Data & Analytics, 2020
and almost all (92%) cited a high level of experience
(more than five completed projects). Modular Builders/Manufacturers
■ By comparison, only 37% of all the other respondents All Respondents
have used permanent modular construction in the
Public Buildings
last three years, and among those, only 29% claim a
similarly high level of experience. 46%
■ They also have about twice the level of 21%
experience with relocatable modular construction Offices Low-Rise (1–4 Stories)
as other respondents. 46%
To share their valuable perspective, this section of the 26%
report provides highlights of their responses compared
with the other participants. College Buildings and Dormitories
46%
Forecast for Frequent Use of 33%
Permanent Modular Construction in
the Next Three Years Healthcare Facilities
In general, the modular builders and manufacturers are 46%
more optimistic in their view of the future for modular 34%
construction than the other participants in the survey. An
example can be found in their forecast for which building Hotels and Motels
types will frequently feature modular construction in the 54%
next three years. The chart at upper right shows the five 40%
building types that feature at least 10 percentage point
differences between how many modular specialists
foresee high utilization of modular and the number of
other types of companies that agree with them. The order
reflects the magnitude of the variance.
The modular specialists are more pessimistic than
the full study group regarding future modular use for
commercial warehouses, manufacturing buildings and
retail stores/shopping centers, but these are less targeted
markets in general, garnering no more than 20% from
either group.

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 Perspective of Modular Builders/Manufacturers  CONTINUED

Benefits of Modular Construction

Benefits Reported From the Use of Biggest Variances in Benefits Reported From
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

Modular Construction the Use of Modular Construction

In addition to being more optimistic about forecasting (Comparing Modular Builders and Manufacturers
its future use, the modular builders and manufacturers With All Other Respondents Rating High/Very
that participated in this research also report significantly Positive Impact)
higher receipt of the benefits of modular construction. Dodge Data & Analytics, 2020

The chart at right shows five benefits with the greatest

Modular Builders/Manufacturers
difference between how many of the modular specialists
report receiving a high or very high level of that benefit Architects/Engineers
from the use of modular construction and the number GCs/CMs
of other participants that report similar results, by Trades
company-type.
Although the variances are extreme, they provide Reduced Waste Generated by Construction
an encouraging target for all practitioners, pointing the 56%
way toward a far more efficient future of the industry by
23%
embracing modular construction.
27%

24%
Safety
50%
14%
20%
39%
33%
Productivity
44%
14%
27%
27%

Schedule Certainty
38%
14%
17%
25%

Cost Predictability
31%
14%
23%
16%

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Using Prefabrication to Mitigate
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Skilled Labor Shortage Risks

University of Delaware’s Science Technology and Advanced Research Campus
NEWARK, DELAWARE

W
hen contractor IMC We saw that we couldn’t get enough opportunity to create long MEP racks
PREFABRICATION AND MODULAR CONSTRUCTION 2020

Construction was first people to do the work.” down the 10-ft.-wide corridors.
brought on to the $150 Certain trades, such as mechanical, IMC contracted H.T. Lyons, a
million University of electrical and plumbing, were subsidiary of ENGIE North America,
Delaware’s ScienceTechnology and especially scarce. “This particular work to help design and manufacture the
Advanced Research (STAR) Campus is very high end,” he says. “You can’t racks at its Allentown, Pa., facility,
project, it quickly became clear just call the plumber down the street. which is located roughly 100 miles
that the project faced a significant We had people tell us they’d like to north of the project site.
challenge—lack of available skilled do the job, but on the schedule that “By outsourcing that portion of
labor.The project owner, global we were laying out, they couldn’t find the work and going two hours north
chemical company Chemours, wanted 30 guys to put on the job when we of the jobsite, they were able to tap a
the 312,000-sq.-ft. laboratory and needed them. It was evident we were pool of skilled craftsmen, who could
office facility in Newark, Del., to be going to have a problem.” work in a controlled environment with
delivered in two years. But the project all of the added benefits of working
was scheduled to start in 2017, just Utilizing Labor Resources in a shop,” says Chris Bernecker, vice
as the local construction market was Across the US Through president at H.T. Lyons.
heating up. According to Dodge Data & Using Prefabrication
Analytics statistics, construction starts To help meet labor demands, IMC Designing and Building
by value in the Philadelphia/Camden, employed a prefabrication strategy that MEP Racks Offsite
N.J./Wilmington, Del., area rose 58% would allow the team to manufacture With much of the project still in
from 2016 to 2017. Manufacturing building elements in areas with more schematic design, Bernecker says
sector starts, specifically, rose 257% available labor. “We decided, ‘The Philly his team was able to provide both
during that same period. area and Wilmington are stretched design and schedule input. Racks
“We had projects (under right now—let’s take the resources consisted of supply duct, exhaust
construction) in the area, and we had and spread them around the country,’” duct, lab services (including RODI,
been bidding projects,” says Bob Liberato adds. breathable air, elemental gases and
Liberato, project executive at IMC The STAR building was designed vacuum), high-pressure steam, chilled
Construction. “We knew the other by architect L2 Partridge in a U-shape, water and hot water. In total, the
projects that were ongoing in the which created two long corridors that racks consisted of 153,650 pounds
market, and we had a difficult time provide access to offices on one side of welded stainless steel duct and
getting bids (from subcontractors). and labs on the other. IMC saw an galvanized duct with approximately
32,463 linear feet of HVAC, potable
plumbing and laboratory gas
system piping.
“We took two-dimensional
drawings, and, in a virtual model,
we conceived a way to build and
sub-assemble these racks and ship
them in 25 foot-long, 3,000 pound
assemblies,” he says.
Completed racks were shrink-
wrapped and shipped to the site,
Image courtesy of IMC Construction

where they could be installed with the

protective wrap still on.This would
prevent the racks from being exposed
MEP racks were preassembled in a shop about 100 miles away and shipped to the to the elements until the building was
site in 25ft-long 3,000-lb assemblies. closed in.

CONTINUED

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NEWARK, DELAWARE

H.T. Lyons, which is a union the basis of design and the footprint. modular, Liberato notes that the team
PREFABRICATION AND MODULAR CONSTRUCTION 2020

contractor, was able to build all of We had working sessions to also benefited from other advantages.
the racks using its existing shop nail down the final design and get For example, quality control of the CUP
employees. However, Bernecker says things tweaked.” was assured before it was shipped
the company has the option to bring Liberato says Chemours facility to the site. “We did all of the pre-
in additional union workers as needed mangers participated in several of the commissioning [at the Systecon shop]
on large projects.The multi-trade crew working sessions to make sure they and then they take it apart and ship it,”
first built the frame, then the duct work, would approve the access points and he says. “You know that you have a
followed by the piping. Most of the spaces between units. running, working and tuned-up CUP
work was completed by 30 employees “It also eliminated that process before it’s delivered to the site.”
during a standard day shift, but at peak where the engineer designs then Liberato also notes that the strategy
production a second shift of 12 workers comes back, gets feedback from helped remove some potential safety
was added. contractors and goes back and designs risks by moving production to a
Because the racks were designed more,” Liberato says “It was all controlled shop environment.
at LOD 400 modeling, they could be designed simultaneously.” Thanks in part to the prefabrication
manufactured while steel erection was In order to enable the CUP to be and modular strategy, the project was
under way on the STAR building. Once delivered from Ohio to Delaware, it completed on time in December 2019—
the building was ready, it took IMC was designed as 16 segments that roughly two years after it broke ground.
crews roughly four months to install could be reassembled onsite. “Without the use of prefab, I don’t see
the racks. By comparison, Bernecker Because the CUP was manufactured how we could have met that schedule,”
estimates that if the systems had in Systecon’s shop, Liberato says work he says. n
been “stick built” onsite rather than on the CUP was able to begin three
preassembled, it would have taken months earlier than if it had been built Project Stats

st
crews roughly nine months. entirely onsite. Overall, he estimates University of Delaware’s

at
s
that the CUP would have taken roughly Science Technology and
Prefabricated Central nine months to build, if it had been Advanced Research (STAR)
Utility Plant constructed conventionally. By using Campus
Newark, Del.
Another major element of the building the modular option, the CUP project
Ground breaking:
that the team was able to manufacture only required 5.5 months.
December 2017
offsite was the central utility plant.The Most important, IMC estimates that Completion: December 2019
CUP was initially envisioned inside the the strategy transferred about 1,500 MEP Racks consisted of
building with an outside utility yard man-days offsite. “That’s a significant 140,000 lbs. of ductwork and
for equipment such as cooling towers. amount of labor that we just didn’t 24,900 linear feet of piping.
Liberato says that by moving the CUP have [onsite],” he added. MEP Racks consisted of:
outside and stacking it, the team was The modular CUP solution cost • Supply duct
able to move the entire CUP outside the roughly 3.3% more than was estimated • Exhaust duct
building and onto the planned utility to stick-build the CUP onsite. However, •L  ab services, including RODI,
yard site.This freed up roughly 5,000 Liberato says that cost increase was breathable air, elemental gases,
sq . ft. of space inside the building to be likely offset when accounting for the vacuum
• High-pressure steam
used for other purposes. shorter schedule. “When you build
• Chilled water
The team contracted Ohio- onsite, you’re going to run into things
• Hot water
based modular building systems like coordination issues that will set
MEP Rack Schedule
manufacturer Systecon, which is also you back,” he says. “In the end,
•P  refabrication required four
a subsidiary of ENGIE, to design, I believe [the modular strategy] was months of field installation
manufacture and deliver the CUP. cost neutral.” • I f conventional stick-built,
“It was basically a mini design-build Although labor was a driving force schedule estimated at 9 months
project,” Liberato says. “We gave them in the decision to use prefab and

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Modular Construction and

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Sustainability’s Triple Bottom Line

The Union Flats Housing Development
UNION CITY, CALIFORNIA

T
he Union Flats, a 2.4-acre, for millions in funding from the parking garage. Cladding materials
PREFABRICATION AND MODULAR CONSTRUCTION 2020

243-unit, mid-rise housing Infrastructure Infill Grant Program of include wood, stucco and strips of
development 30 miles the California Department of Housing fiber-cement panels in board-and-
southeast of San Francisco, and Community Development. But batten configuration.The massing
pioneered large-scale modular that funding mandated a completion is self-shading: At the southwest
construction in the region while date that conventional construction façade, balconies are recessed; at the
achieving exemplary environmental couldn’t meet. Modular—with its northwest and southeast, bays are
performance. Completed in 2018 by simultaneous construction of sitework articulated to provide shade while
developers CityView and Windflower and superstructure—could. opening up to daylight and views of
Properties as northern California’s The development consists of 388 the nearby hills. Helping to foster the
largest modular multifamily wood-framed modules, shipped casual interactions among neighbors
development, the Union Flats from Idaho and craned into place— that can build social connectivity,
epitomizes the advantages of offsite either onto a foundation, atop a a central courtyard provides a
construction in a tight market. Type I podium, or wrapping aType I swimming pool and green-roofed
The question for practitioners of concrete parking garage—at a rate pavilions with spaces for leasing,
green design and development is the of 12 per day.The resulting schedule co-working, fitness, events and a
degree to which modular construction compression allowed the project dog spa.
also enabled the project’s LEED to meet its funding deadline, and
Platinum certification. in that sense made the rest of its Sustainability
The vertiginous cost of housing achievements possible. Independent of Modular
in the Bay Area makes it impossible Designed by San Francisco-based But beyond that initial enabling
to forget here that sustainability has David Baker Architects (DBA), the schedule compression, how
economic and social dimensions, as building fronts onto a new civic plaza, much did modular construction
well as environmental ones. “It’s quite edges a landscaped promenade contribute to the project’s LEED
a struggle right now for those of us along one side, presents ground-floor Platinum achievements? As it turns
in the Bay Area trying to do housing front doors to a sidewalk along the out, surprisingly little. Reduced
development that is affordable to other and backs onto an embedded construction waste was the main
even middle-income earners,” says
Windflower CEO FeiTsen. She cites
such contributing factors as the
shortage of skilled labor that has
resulted from migration out of the
trades and/or the region during the
recession of 2008, and the inability
of housing development, with its
lower profit margins, to compete
with nearby big tech projects for the
remaining workers now commuting
two or three hours a day to work in
the area. “So it’s imperative that we
look at prefab and modular,” she says.

Modular to the Rescue

The Union Flats shows what is
possible. Its location—only a block
from an intermodal transit station— The Union Flats features 388 wood-framed modules, craned into place at a rate of 12
Image: OxBlue

made the development eligible per day.

CONTINUED

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factor, says Daniel Simons, a principal health, “that hasn’t really happened
PREFABRICATION AND MODULAR CONSTRUCTION 2020

st
Project Data
at DBA. And the manufacturer was with multifamily housing,”

at
s
also able to obtain linoleum flooring says Simons. Location:
at a price that allowed the project to But while individual housing Union City, California
substitute it for the VOC-emitting vinyl developments may lack access to the Completed: August 2018
more commonly used in multifamily economies of scale that have allowed Number of Units: 243
housing, which improved the project’s corporations building millions of Project Sq. Ft.: 289,987
indoor air quality. But, in general, says square feet to advance materials health Site Sq. Ft.: 107,522
Simons, “most of the things that we did in the office sector, modular factories Units/Acre: 99
that made the project more sustainable may have an opportunity. “They’ve Open Space Sq Ft.: +/-20,000
were independent of it being modular.” started getting purchasing agreements Parking: 244
The Union Flats was DBA’s first with manufacturers because they Certification: LEED
modular project.The firm now has know they’re going to need a lot of this for Homes Multifamily
another almost complete, and four stuff, and so they know they can get Mid-Rise—Platinum
or five more in design or about to good pricing,” says Simons. “But they  Innovation & Design
start construction. “We’ve learned a haven’t taken that next step to say, ‘not Process: 6.5/11
lot since the first one,” says Simons. only can we get good pricing, but we Location & Linkages: 9/10
“It was definitely a bit of a proving should also push for PVC-free flooring Sustainable Sites: 16/22
ground.” Even so, he says that the and other materials health priorities Water Efficiency: 9/15
environmental opportunities that that could be on our radar.’”  Energy & Atmosphere:
were missed on this project—and Another sustainability advantage 23.5/38
that continue to be missed in modular fabricators could offer lies in their Materials & Resources: 8/16
construction more generally—“mostly tighter control of quality standards.  Indoor Environmental
come from sustainability not yet “The quality of multifamily Quality: 9/21
being on the radar of the factories as construction is variable, to put it Awareness & Education: 2/3
a benefit.” Modular manufacturers generously, in terms of quality of Lead Developer: CityView
know that it is the method’s time and insulation installation, thinking Co-Developer:
cost savings that are selling their through thermal breaks and even Windflower Properties
products, he says, so their research down to mechanical systems,” says Architect:
and development efforts are aimed Simons. He sees these as areas where David Baker Architects
at improving those outcomes even modular fabricators could leverage Landscape Architect:
further. Now, however, he sees some their factory-based methods and April Philips Design Works
manufacturers beginning to realize that growing market position to improve General Contractor:
prioritizing sustainability can open up the sustainability options available to Cannon Constructors North, Inc.
more opportunities. the multifamily sector. “If it becomes Modular Fabricator:
a factory standard, we could bring in Guerdon Modular Buildings
Room for Improvement more advanced technologies to help
Top of Simons’ wish list is healthier with energy efficiency and ventilation
materials. DBA’s efforts to improve the at prices that are accessible,” he says. development and attaining LEED
quality of materials in their multifamily “There’s a bunch of areas like that Platinum certification—stand as a
projects are often stymied by a lack where multifamily housing isn’t milestone for the multifamily sector.
of product ingredient transparency, very sophisticated, and modular They demonstrate how modular
a lack of choice, prohibitive costs or could help.” construction’s schedule and labor
a combination of all three. Unlike the Such improvements will come too market advantages can help get
office sector, where money-backed late for the Union Flats. Nevertheless, an environmentally and socially
research and advocacy has been able the project’s parallel achievements— progressive project built and contribute
to improve materials transparency and in pioneering large-scale modular to sustainability’s triple bottom line. n

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Coliseum Connections
OAKLAND, CALIFORNIA

T
here’s a first time for principal in charge of the project at contractor. “It was a taxing approach,
PREFABRICATION AND MODULAR CONSTRUCTION 2020

everything. With design for Pyatok Architects, “so it had to be as but we all left thinking this was
manufacture and assembly efficient a construction approach as a fantastic, successful project,”
(DfMA) on the upswing we could manage.” she says.
across North America, a growing The wood-framed volumetric From a design perspective,
number of developers, design teams modular project’s straight-forward “overplanning” required the team
and contractors are embarking on layout consists of four buildings of to consider, coordinate and finalize
their first experience of modular two types: a five-story block decisions much earlier in the process
construction. Fresh from their first of 66 elevator-served flats along than conventional construction
foray into DfMA is the project team the west side of the site, facing requires, and those decisions had
behind the recently completed the transit lines, and three rows of to be right. “The advantages of
Coliseum Connections, a $43 million, two-story townhouses meeting the prefabrication are lost the moment
110-unit housing development located low-rise neighborhood to the east. you have to start opening up walls
adjacent to a rapid transit station in All units of both building types and changing things,” says Waller.
Oakland, Calif. were prefabricated at Guerdon “Working with modular instills a
As one of the first truly mixed- Enterprises, a manufacturing facility discipline in the process—for the
income developments in the Bay in Boise, Idaho. design team and also the owner.”
area, half of Coliseum Connections’ The result, he says, was both a
units are rented at rates accessible to Planning for Success more efficient process and a more
households earning 50% to 60% of the Except for the factory itself, no one on efficient design.
area median income (AMI), and the the project team had prior experience To give a boost to the team as
other half, to households earning 80% with DfMA. So the team adopted a it ramped up the learning curve, a
to 120% of AMI, with no segregation strategy of overplanning everything prefabrication consultant helped to
or differentiation of units by income. in order to execute well, says Purnima develop an effective set of drawings
“We knew from the start that it would Villanueva, project manager at Cahill for the modular system and to guide
be cost sensitive,” says Peter Waller, Contractors, the project’s general the permitting of them. A pleasant

Location: 801 71st Avenue, Oakland, Calif. Modular Consultant: Prefab Logic LLC

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at
Construction Type: I-A, III-A, V-B Civil Consultant: Luk and Associates

s
Completion: 2019 Structural Consultant: DCI Engineers
Construction Cost: $43 million MEP Consultant: Emerald City Engineers, Inc.
Site: 1.36 acres Energy Consultant: Davis Energy Group, Inc.
Building Sq. Ft.: 134,584 sq. ft. Waterproofing Consultant: SCH Simpson Gumpertz
DUA: 81 & Heger Inc.
110 Units: 1 BR Flats (48), 2 BR Flats (18), 1 BR Utility Consultant: Millennium Design and
townhomes (17), 2 BR townhomes (27) Consulting, Inc.
Car Parking: 86 Interior Design Consultant: DE + Dilworth Elio
Studio, Inc.
Bike Parking: 98
Acoustics Consultant: RGD Acoustics, Inc.
Certification: GreenPoint Rating Platinum (149)
Color: Colour Studio, Inc.
Owners: UrbanCore LLC, Oakland Economic
Development Corp Lighting: Minuscule Lighting Design
Architect: PYATOK architecture + urban design Landscape Architect: Golden Associates Landscape
Architects, Gates + Associates
General Contractor: Cahill Contractors
Specifications: Pawprint Specs, LLC
Modular Building Manufacturer: Guerdon
Enterprises LLC

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surprise was how smoothly the below-grade structure is being built

PREFABRICATION AND MODULAR CONSTRUCTION 2020

complex permitting process ran, says onsite at the same time, and both
Waller. In California, prefabricated require supervision. For the modular
volumetric modules are permitted at units, quality control is not just a
the state level, while site work, onsite matter of making sure the finishes
connections and building envelopes are to spec; it is also validating
are permitted locally. In keeping critical tolerances: alignments for
with their overplanning strategy, the anchor tiedown system that runs
the architect met with the city’s plan continuously through the stacked
checker early and often to maintain units from the foundations, for
communication lines throughout the example, and points of connection
complex approvals process. Far that have been coordinated with MEP
Intensive planning helped achieve
from setting up objections to the contractors in the field. “All of that at
goals like a shorter construction
innovative construction method, the once is a challenge people may not schedule for Coliseum Connections.
building department was keen to think about when they think modular,”
engage. “Everyone’s talking about says Villanueva.
modular, and we need to learn how The project had its own quality than estimated for a similar site-
to permit these projects,” is how control representative monitoring built project. Because the cost of
Waller describes the attitude. And production at the factory full-time, the modules themselves wasn’t
although the inspectors naturally but with over 20 workstations at the significantly less than conventional
wanted to consider the safety of the facility, “you’re not going to catch construction, much of the savings
project as a whole, they were able everything,” says Villanueva. (She accrued from reduced staffing
to limit their review to the plans to beef up factory monitoring overhead on the shorter construction
municipality’s jurisdiction. on modular projects Cahill has lined period. A shorter construction
Another key aspect of planning up for next year.) Atypical units, such schedule also meant the owner was
was the staging of the delivered as corner suites, seemed to give the able to begin collecting rent sooner,
modules prior to installation. Leasing most trouble, with egregious glitches which for an affordable housing
a nearby parking lot enabled units like missing plumbing or electrical project in the Bay Area’s notoriously
to be delivered at all hours and wiring necessitating remedial unaffordable real estate market,
placed in exactly the right order work onsite. Villanueva estimates makes a difference. “Schedule is
to be transported just a few blocks that finding and correcting such money,” says Waller.
to the site as they were needed. deficiencies post-delivery amounted Underlying these hard metrics,
Because the crane and crew that set to about 4% or 5% of the factory the major achievement of this first
the modules are in high demand— contract value. “The challenge is venture into DfMA was teamwork.
and expensive—having everything trying to account for these unknowns “The city, the developers, the
in place to increase efficiency is a big in a schedule,” she says. “How much contractor and the design team:
deal, says Waller. At peak flow, the out of tolerance units will be, how People were motivated to make
crew was setting 14 to 16 units a day, many deficiencies you’ll find—you this project a success,” says Waller.
taking only five weeks to set them all. just don’t know.” Villanueva agrees: “The fact that we
Even with those deficiencies, worked together, figured it out, over-
Challenges however, using DfMA still enabled planned it, saw it succeed and now
But even with exemplary planning, the project to shave about $4 million know what to expect so that future
Image Courtesy of Pyatok Architects

challenges arose. Chief among dollars off the construction cost projects will be even more successful,
them from Cahill’s perspective was compared with conventional stick- that’s a huge accomplishment,” she
quality control. It is the nature of built methods, and to reduce the says. As other project teams embark
prefabrication that modular units entire construction schedule to on DfMA for the first time, they may
are being built in the factory and 17 months, about 4 months less find that encouraging. n

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A High-Rise Stylish Modular Hotel Rises in NYC

citizenM Bowery
NEW YORK, NEW YORK

A
s adoption of modular
PREFABRICATION AND MODULAR CONSTRUCTION 2020

construction picks up
in the US, the high level
of repetition in hotel
buildings makes the hospitality
sector well positioned to capitalize
on the method. Standardization
maximizes the efficiencies of
modular, while the consistency
of hotel chains’ specifications
from project to project can unlock
even greater economies of scale.
Pioneering the way, with the world’s
tallest modular hotel, is citizenM
Bowery, a 19-story, 300-key building
completed in 2018 on Manhattan’s
Lower East Side.
“For hospitality, for some
healthcare, even for some residential,
modular makes total sense,” says citizenM Bowery, a 19-story modular building constructed in Manhattan,
demonstrates that modular hotels can be stylish high-rises.
Isaac-Daniel Astrachan, a principal
with Stephen B. Jacobs Group Each module typically comprises construction doesn’t necessarily
Architects and Planners, architect for a section of corridor with a 165- contribute to affordability. “From
the project with Amsterdam-based sq.-ft. guest room on either side. what I hear,” says Astrachan, “the
Concrete Architectural Associates. Dimensions of 48 feet by 8 feet by cost of construction is not that much
“Because there’s so much repetition, 9 feet allow the steel-framed different between conventional
and because it’s increasingly difficult modules to ride on a flatbed truck and modular.” What chiefly makes
to find skilled labor, the more we can through the streets of New York— citizenM affordable is its small unit
do in the factory, the better.” with only the units designed for size. The Bowery property fits in
ADA compliance requiring a about a third more guest rooms than
Piece by Piece Department of Transportation what a typical hotel with the same
Developed by Dutch hotel brand permit and special convoy. square footage would achieve.
citizenM, which earned its modular Transportation required careful With construction costs coming
construction chops on eight European planning to protect the modules en in about even, schedule is often one
properties, the Bowery building route. As each one was completed in of the main reasons to go modular.
consists of 210 modules, stacked the climate-controlled manufacturing (Units are under construction
in 15 stories on a three-story (plus facility, it was individually wrapped simultaneously with site work,
cellar), site-cast concrete podium. in a waterproofing membrane to which typically shaves weeks or
Modules were shipped complete prevent moisture ingress during months off construction.) But for this
with windows and thermal enclosure, transport. Delivered modules were project, a number of complicating
fire-proofing, finishes, lighting, fixed staged on a neighboring lot, then factors meant that advantage did not
furnishings and fittings, and a frosted- unwrapped as required and craned pan out. For example, the decision
glass-enclosed shower and toilet pod. and bolted into place. to use a manufacturing facility in
Added onsite were a wall-mounted Poland (which had built the modules
Image courtesy of citizenM

TV (pre-wired), art, movable furniture Pros and Cons for the client’s hotels in Europe)
and the room’s iPad—which controls Although citizenM markets itself as added shipping and customs to the
lighting, blinds, andTV. offering affordable luxury, modular schedule. Then wind speeds during

CONTINUED

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construction exceeded the crane’s steel. A concrete core and a blade completed in 2014) switched to
PREFABRICATION AND MODULAR CONSTRUCTION 2020

capacity, resulting in lost time. And shear wall support the building’s conventional when the DOB refused
there was a several-months-long lateral loads, with modules fastened to permit the incorporation of a
break in construction due to an to these elements and one another sprinkler system that could not be
extraneous circumstance. “Little via steel connections. locally inspected. Since then, the
things add up,” says Astrachan. “Marrying up the tight tolerances city has become more supportive
of a module with a cast-in-place of modular construction, and DOB
Modifying for Modular concrete core was a challenge,” inspectors travelled to Poland
And contrary to the usual says Michael Schwartz, a senior to inspect sprinklers in Bowery
recommendation to design with associate at DeSimone Consulting modules. With citizenM’s first North
offsite in mind from the outset, Engineers, structural engineers for American modular development now
citizenM Bowery didn’t start out as the project. Connections for the complete, “they’re over the hump,”
modular. The project was originally modules had to withstand the large says Schwartz, and the company has
intended to be site-cast concrete, forces a tall building generates, modular hotels for other American
and the design had already been while also providing sufficient field cities in the works. n
approved by New York City’s tolerances, avoiding interference
Department of Buildings (DOB) when with adjacent modules and allowing
a change in ownership structure room to assemble the modules.
resulted in the shift to the new Wherever the two structural systems
method. The design team filed a met, the engineers maximized
post-approval amendment to modify the connections’ tolerances, and

st
the building to facilitate modular. stood ready to respond in the field

at
s
Changes included relocating the with a sketch or site instruction Project Data
mechanical room from the 18th floor to keep the modules stacking at a Location:
to the third floor to reduce the weight rate of eight to 10 a day. Astrachan New York, NY
the modules would need to support describes the potential for problems Project Size:
and to allow work to begin on it while where conventional and modular 100,000 square feet
the modules were being placed. A systems meet as the project’s “No. 1
Construction Start:
structural redesign was also needed. lesson learned.” 2012
The structural solution entails Quality control may be the primary
Construction Complete:
three distinct layers. The lowest layer, advantage of modular construction 2018
up to the third floor, comprises large- that this project was able to realize.
Owner:
volume amenity spaces—such as a With work being conducted out of
citizenM
lounge with a cafe and bar, a ground the weather, at workbench height,
floor cafe, and a double-height and with assembly-line production Architect:
Stephen B. Jacobs Group
lobby—that were not well-suited to methods, “modular construction Architects and Planners
modular construction; rather than takes the pressure off the back end
Interior Design:
force things, this section remained in of the construction schedule,” says
Concrete Architectural
site-cast concrete. A massive, three- Schwartz. “There was none of the Associates
foot-deep transfer slab, with spans usual check-listing—cracked tile,
Structural Engineer:
reaching 34 feet, was introduced at loose wallpaper—when the hotel was DeSimone Consulting Engineers
the fourth floor to provide a base trying to open.”
General Contractor:
for the 15 stories of guest-room The Bowery location is citizenM’s
The Rinaldi Group
modules. And above them, the second shot at building modular in
top floor—which accommodates New York. The first initiative (which Modular Builder:
Polcom Group
a rooftop bar with outdoor seating became the brand’s conventionally
and views—is framed with structural constructed Times Square property,

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Systematic Modularization
Advocate Aurora Health
ILLINOIS AND WISCONSIN

W
ith costs for medical Mockups to confirm design
PREFABRICATION AND MODULAR CONSTRUCTION 2020

■ 

office buildings decisions and their execution prior

trending upwards to starting production
at 12% annually, ■ Consistency of design across

Advocate Aurora Health (AAH), the pods

an Illinois- and Wisconsin-based ■ Teams consisting of properly

healthcare system comprising some trained union labor, and consistent

500 care centers and 27 hospitals, is teams from project to project
exploring the potential of modular ■ A quality review checklist for

construction. AAH has embarked on each pod

a program of standardization and ■ Productive and ergonomic setups,

modularization—not just on a single such as table-height work and

project, but across its billion-dollar production jigs
capital improvement program. AAH has begun to use modular ■ Nested prefabrication wherever
construction for patient exam rooms.
“By shifting to modular design and possible, including preassembled
construction approaches, healthcare plumbing, pre-bent electrical pipe
organizations can create competitive and pre-piped boxes, precut steel
advantage by accelerating speed-to- across three sites of care, including studs, and CNC-cut gypsum board
market, improving cost certainty and a 55,000-sq.-ft. outpatient center ■ Higher quality materials to

delivering consistent results across completed in 2017 in Chicago, a withstand transportation logistics
their system,” says CannonDesign, 8,630-sq.-ft. tenant improvement in ■ Kaizen learning (a process of

architects for AAH’s modular Lombard, Ill., and a 62,300-sq.-ft. new- continuous improvement)
program, in a written overview of build completed in 2019 in Oak Lawn,
Because manufacturing teams are
the initiative. Ill. With each iteration, the number
able to work eight hours a day (a
Working in collaboration with of variations that were needed to
25% improvement over the six-hour
Cannon, AAH has developed a set of achieve the design dropped: from
day that’s typical for construction
consistent design standards for its an initial five for the beta test (to
field work), productivity gains
frequently repeating spaces, such as meet the requirements of a building
improve the projects’ speed-to-
patient exam rooms, emergency care that had not been designed with
market. Overall schedule savings
stations, bathroom pods, inpatient modular in mind) to just two once the
attributable in whole or part to
care rooms, and reception and intake project-integrated modular fabricator
modularization range from two
spaces. Applying these standards, suggested a tweak to the Oak Lawn
weeks on the initial 55,000-sq.-ft.
AAH has now begun modularizing building’s structural grid.
care center to twice that on the most
construction of one of ambulatory Indicators of quality improvement
recent 62,300-sq.-ft. care center. A
care’s most common spaces: patient include no defects in delivered pods,
typical reduction in delivery time
exam rooms.To date AAH and its no need for onsite rework (typically
from use of modular is about 28%,
integrated project delivery team has 30% of construction cost is rework,
according to CannonDesign.
installed 137 exam room modules says CannonDesign), no punch
As an incident of the quality and
across three different sites of care, list items for modules across all
productivity measures, project waste
including a tenant improvement of an three sites of care and construction
has plummeted. When precutting of
existing building. tolerances of 1/8 of an inch per 10 feet.
drywall is possible, waste consists
In a set of notes generated for this
almost exclusively of packing boxes
Image Courtesy of CannonDesign

Iterative Improvements case study, project representatives

for the modules’ accessories and
The program began with a beta from owner, design, construction
fixtures: an average of only one or
test—a hypothetical modularization of and fabrication perspectives identify
two dumpsters of waste for the
a medical office building then under the following as the most significant
modular scope.
construction—and has progressed contributing factors:

CONTINUED

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Many of the factors contributing

PREFABRICATION AND MODULAR CONSTRUCTION 2020

st
Project Data Exam Pods: 53
to improved quality and efficiency

at
s
Owner: Advocate Aurora Health Exam Pod area: 6,360 sq. ft.
also foster worker safety—both in
User: AMG Schedule Compression: 2-3 weeks
the factory and, through reduced
Construction Manager: Medical Office Building (AMG
congestion, onsite. In 10,485 hours
The Boldt Company Lombard):
worked across the three projects,
Modular Standardization and Type: Tenant improvement
there were only two safety incidents,
Design: CannonDesign Completed: 2018
and neither was OSHA recordable.
Modular Fabrication: Project Area: 8,630 sq. ft.
Exam Pods: 12
A Collaborative Effort Integrated Modular Design
Examination Room Pod Area: Exam Pod Area: 1,440 sq. ft.
Underlying the achievements and
120 sq. ft. Schedule Compression: None
iterative improvement of AAH’s
Total Examination Room Pods Medical office building
modular program is an Integrated
(Three Projects): 137 (AMG Oak Lawn):
Project Delivery structure. “It took true
Total Pod Area: 16,440 sq. ft. Type: New build
team collaboration and effort to get
Total Project Area: 125,922 sq. ft. Completed 2019
this all to work,” says Greg Heiser, a
Medical Office Building Project Area: 62,292 sq. ft.
principal in CannonDesign’s Chicago
(AMG Sykes): Exam Pods: 72
office. “We can’t stress that enough.”
Type: New build Exam Pod Area: 8,640 sq. ft.
In particular, IPD’s characteristic
Completed: 2017 Schedule Compression:
cost transparency incentivizes
Project Area: 55,000 sq. ft. One month
wholehearted collaboration.
According to a joint statement from
owner, design, construction and
fabrication representatives, “without prior to finalizing the pod layout and collaborative approach to
IPD commercial structure, the true ■ Resolution of MEP and fire inspections in-shop and onsite
cost advantages of the exam pod protection routing before
Based on the success of its modular
integration with traditional construction prefabrication starts (coordination
initiative so far, AAH and its project
would be difficult to bring to fruition.” and routing that optimize the pods
delivery team are now exploring
The owner’s role as proponent is might not optimize MEP design
opportunities for expanding the
essential, as is the early onboarding efficiency and productivity)
use of modular construction to
of the CM, the design team and the ■ Reduction of onsite through-floor
other frequently repeated spaces.
modular fabricator. “It is a different penetration tolerances
As the modular program takes its
process,” says Heiser, “a different way ■ Planning of site logistics for
place in the organization’s suite of
of thinking.”The team also highlights unloading and hoisting the pods,
offsite construction strategies—
the role of technology in the projects’ with implications for the window
including building envelope panels,
successes: “You’re taking a completed of entrance, the rest of the building
multi-trade racks and interior wall
element and dropping it into something production schedule and the
panels complete with rough-ins—
that’s already partially constructed,” enclosure schedule: (a minimum
additional advantages are expected
says Heiser. “That wouldn’t have path of 12-ft.-wide-by-10-ft.-6-
to open up. “The things AAH wants
been possible without BIM to help us in.-high is typically needed to
to see next, and the volume of their
understand the tolerances involved and transverse the pods through the
capital demand, will drive some of
the coordination all this would take.” building, and must be coordinated
these,” says RyanYoho, director of
Prime examples of that coordination with all overhead work)
construction management at the Boldt
include: ■ Procurement of the pods
Company, CM for the projects. “If you
■ Early communication with the ■ Early engagement of the
have the right capacity, you can be
construction manager/build partner Authority Having Jurisdiction to
more bold with what’s next.” n
to bring all trade partners on board facilitate an efficient, systematic

Dodge Data & Analytics   61  www.construction.com SmartMarket Report

 Data:­Owner Perspectives
Owner Perspectives
On Using Prefabrication and Modular Construction

Owners who are engaged with prefabrication and modular

PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

construction sing its praises, but they also recognize that they have
to be the driving force to see wider use of it in the industry.

The Research ■ Nearly all of the owners who • Hospitality owner: “More
To gain the perspective of owners participated mentioned the ability consistent quality of finishes in
who are engaged with prefabrication to compress schedule as a major the guest rooms” was an
and modular construction, factor in their decision to use important driver.
interviews were conducted with these approaches. ■ Two owners mention dealing

five individuals with projects using • Healthcare owner: “You can do it with labor issues as a major
these approaches in four sectors: in parallel with other activities like factor driving the use of
healthcare, education, hospitality permitting or getting the sitework these approaches.
and residential. Interviews were kept done or the steel put up.” • Healthcare owner: “Trained,
confidential in order to encourage a • Education owner: “We originally skilled labor is becoming more
frank and open discussion of looked at modular because it was scarce ... it’s generally a different
the benefits and challenges a solution that could be completed labor pool that is doing the
of using prefabrication and relatively quickly.” prefabricated work.”
modular construction. • Residential owner: “We want • Residential owner: Since
• All participants are senior sustainable buildings, and we the homes they are building are
executives in their companies also want to build them faster and in New York, he mentions that they
and responsible for the decision cheaper, and modular provides all are using an offsite facility
to use these approaches, from of that.” in Pennsylvania with “much
a managing partner, to assistant • Hospitality owners: Both owners lower labor rates,” which are
and senior vice presidents, to an mention schedule as an important only partially offset by
executive director and acquisition driver, and one explains its exact transportation costs.”
and development manager. appeal: “You gain a lot more ■ Improved site logistics are

• The five participants have different operating history in your overall important drivers for two owners.
levels of experience with modular. hold period [for the property]. If • Healthcare owner: Many of
One has been building the majority you have an overall hold period their projects take place in
of projects using prefabrication for of 60 months, and 18 months of functioning medical facilities, and
a while. Two have completed one that is spent building traditional, he notes a key driver is reducing
or two modular buildings, and two then you only have 42 months of the impact on the operating
are in the midst of planning their operations. But if you only spend hospital because “you don’t have
first modular projects. 12 months building, you have as many people out there trying
• All are planning to increase six additional months of to park somewhere, [who] need
their engagement with these operations. That really attracted bathrooms and break areas.”
approaches in the future. us to this concept.” • Education owner: She notes that
■ Two owners mentioned quality they are constructing their multi-
Benefits Driving as a significant factor in their phase program on a two-and-
Use of Prefabrication decision. a-half-acre urban site. “We had
and Modular • Healthcare owner: “We think limited space, and we did not
Construction [modular construction] is better have interim housing, so we were
Many of the owners cited quality because a lot of it can be moving people around a Rubik’s
similar benefits driving their tested or it can be inspected in an Cube on a small piece of land. The
use of prefabrication and easier environment than out in fact that a lot of major construction
modular construction. the field. elements happen offsite shrunk

SmartMarket Report Dodge Data & Analytics   62  www.construction.com

 Data Sidebar:  Owner Perspectives  CONTINUED

the space needs as we went from are getting to the point where, comparing apples to apples. As
PREFABRICATION AND MODULAR CONSTRUCTION 2020  DATA

phase to phase.” instead of saying ‘I want you to an example, if I am building half of

■ Three of the five owners mention prefabricate,’ we are starting to the building offsite, I have half the
the desire to be innovative as a say, ‘We want you to optimize the amount of people onsite and all the
key driver. amount of prefabrication on this overhead associated with those
• Hospitality owner:“Taking project.’ In some cases we even folks. That cost is not accounted
part in an innovative approach set up a percentage goal of offsite for in the prefab model.”
to this industry is something hours versus onsite hours.” He ■ The residential builder notes

that is important to us because reports that their general contractors that the financing sector still
we believe that if you are and trade partners are seeing their needs to better understand this
not changing, then you are own advantages. “They are trying mode of construction, and he is
falling behind.” to find a workforce to get work part of a group in this industry
• Residential owner: “We are a done, and [using prefabrication] who are working on providing
new firm, and we like to think of is a force multiplier when they can big financial lenders with basic
ourselves as agile and moving build something in a shop with one guidelines on what to expect from
with technology.” superintendent managing multiple these projects.
• Education owner: Mentions that builds in one place instead of a • “Lenders are not used to
they selected their modular vendor superintendent required at every lending for modular. They don’t
because they “had the style and project.” He has seen them shift understand the parameters and
the environmental aspects that we from prefabricating components to the draw schedules.”
were attracted to.” prefabricating whole rooms. ■ The education owner finds that

■ Sustainability was an important there is a trade-off in terms of

factor for the education and Challenges With Using the limitations of the modular
residential owner. Prefabrication/Modular model. You have to work within
■ While only the residential owner While the owners agree on the its parameters.
mentioned cost savings as driver benefits, each brought up unique ■ Getting designers to change

(they have the expectation that it challenges they have faced in their processes to design for
will be at least 10% cheaper than implementing these approaches. prefabrication has also been a
traditional stick-build for them due ■ The healthcare and one of the challenge for the healthcare owner.
to their labor market), a few did hospitality owners find that the
It is important to note that the
mention that being cost neutral supply chain of prefabrication and
owners who raise most of these
was important in the decision. modular companies is still limited.
challenges expect them to be far
Both expect more activity to help
less of a factor as the industry
Decision-Makers for address this issue.
matures. All agree that, for their
Taking This Approach ■ On a related issue, the
types of buildings, the construction
One clear finding from the five healthcare owner also
industry will embrace these
interviews is that owners drive the notes that these companies
approaches. In fact, the healthcare
use of these approaches. The only are also still very manual, and
owner states, “The industry
owner who wasn’t the direct driver of he sees an opportunity for
is moving in this direction for
its use was one from the hospitality industry improvement with
survival ... I see major construction
sector, and he credits the leadership greater automation.
companies starting to buy their own
of the brand with which he is ■ Accurate cost estimation is
prefabrication shops and modular
affiliated as being the major driver. another challenge noted by the
building plants. The industry is
The healthcare owner notes healthcare owner.
moving in this direction naturally due
that after they initially drive • “Cost systems are not based on
to the workforce [shortage issues]
prefabrication, their construction modular and prefab. We are not
and the need for speed.” n
partners have embraced it: “We at the point where we are really

Dodge Data & Analytics   63  www.construction.com SmartMarket Report

 Methodology:­

Prefabrication and Modular Construction Study Research

Dodge Data & Analytics conducted GCs/CMs (category includes other questions were tailored
PREFABRICATION AND MODULAR CONSTRUCTION 2020

■ 

the 2019 Prefabrication and general contractor, construction specifically to the unique nature of
Modularization Study using an manager, design-builder, civil/ each approach.
online survey of construction site/geotech contractor)— Based on rules built into the initial
industry professionals in October 176 responses screening questions in the survey
and November of 2019. The data was ■ Specialty/trade subcontractors instrument, 34% of the 608 total
collected from the following sources: (category includes steel fabricator/ respondents were determined to
■ Dodge Data & Analytics erector, concrete fabricator/ have had enough experience with
Architect and Contractor Panels: erector, building enclosure modular construction to serve as the
The Dodge Data & Analytics fabricator/installer)— group representing those users and
Architect and Contractor Panels 219 responses respond to the modular construction
contain representative samples ■ Modular builders/ line of inquiry for the remainder of
of construction architects and manufacturers—15 responses the survey. The other 66% responded
contractors across the US. The to the prefabrication line of inquiry.
ADDITIONAL REQUIREMENTS
panelists are identified by many Below is the breakdown by discipline,
FOR PARTICIPATION
categories, including size, region, which meets statistical significance
To participate in the study,
types of projects undertaken thresholds for all groups involved.
respondents had to have worked
and specialty. The table below shows the
on a multifamily or non-residential
■ Dodge Database of percentages of overall survey
building project in 2018, and a
construction professionals respondents by type of company.
prefabrication or permanent modular
■ Participation from the
construction project in the last three BIM USE
memberships of association
years. In addition, no more than 50% Level of BIM use is used as an
partners, including both research
of their projects could be one or two- analytic variable in the analysis.
and funding partners.
family homes. ■ Do Not Use BIM:
• Associated Builders and
• Prefabrication Respondents: 11%
Contractors (ABC) PREFABRICATION AND
• Modular Respondents: 12%
• American Institute of Steel MODULAR RESPONDENTS
■ Use BIM on Less Than
Construction (AISC) The survey used in this project
50% of Projects
• Modular Building Institute (MBI) had two lines of inquiry, one
• Prefabrication Respondents: 46%
• Mechanical Contractors for prefabrication and the other
• Modular Respondents: 33%
Association of America (MCAA) for modular construction. For
■ Use BIM on 50% or More of Projects
• National Electrical Contractors consistency, some survey questions
• Prefabrication Respondents: 43%
Association (NECA) used similar response options for
• Modular Respondents: 55% n
• The Association of Union both lines of inquiry, but
Constructors (TAUC)

Respondents Prefabrication and Modular Respondents

A total of 608 qualified responses
Prefabrication Modular Construction
were received to the survey.
Line of Inquiry Line of Inquiry
FIRM TYPE Architects 62% 38%
Only respondents who worked Engineers 40% 60%
for the types of companies listed GCs/CMs 66% 34%
below were allowed to participate Trade Contractors 77% 23%
in the study. Modular Builders/
■ Architecture (excluding landscape
11% 89%
Manufacturers
architecture)—165 responses TOTAL 66% 34%
■ Engineering—33 responses

SmartMarket Report Dodge Data & Analytics    64  www.construction.com

 SmartMarket Report
Resources
Organizations, websites and publications to help you get
smarter about prefabrication and modular construction.

ACKNOWLEDGEMENTS:

We would like thank Bradley, a Premier Partner, for their vision in committing to this
research and their support of our efforts.

Dodge Data & Analytics We also thank the Modular Building Institute, also a Premier Partner, for their
Main Website : www.construction.com support, expertise and help with garnering participation in the study, both the
Dodge Construction Central : www. quantitative online survey and participation in the qualitative owner interviews.
construction.com/products
We thank our Supporting Partners Pinnacle Infotech and the Mechanical Contractors
Market & Competitive Intelligence :
Association of America (MCAA) and our Contributing Partner Skender, without
www.construction.com/products/
construction-market-data whose support this research and publication would not be possible.
Sweets : www.construction.com/ We thank all of our association research partners, including the Associated Builders
products/sweets
and Contractors (ABC), the American Institute of Steel Contractors (AISC), the
SmartMarket Reports :
National Electrical Contractors Association (NECA) and the Association for Union
www.construction.com/
Contractors for distributing the survey to their members. We again thank MCAA for
toolkit/reports
their participation in this effort as well.

We also thank the people who participated confidentially in the owners’ in-depth
interviews for candidly sharing their experiences.

Finally, we thank all those who participated in the case studies, interviews and
articles for sharing their insights, data and images to help the industry learn more
about this vital topic.

www.bradleycorp.com www.modular.org

Produced with support from

Premier Partners Contributing Partner Other Resources
Bradley : www.bradleycorp.com Skender : www.skender.com BIMForum : https://bimforum.org
The Modular Building Institute : Lean Construction Institute :
Association Research Partners
www.modular.org www.leanconstruction.org
Associated Builders and
National Institute of Building Sciences
Supporting Partners Contractors : www.abc.org
main website : www.nibs.org
Pinnacle Infotech : www. American Institute of Steel
National Institute of Building
pinnaclecad.com Construction : www.aisc.org
Sciences Off-site Construction
Mechanical Contractors Association National Electrical Contractors Council : www.nibs.org/page/oscc
of America : www.mcaa.org Association : www.necanet.org
The Association for Union
Contractors : www.tauc.org
 ■ Design and Construction Intelligence

SmartMarket Report
www.construction.com/toolkit/reports

Dodge Data & Analytics SmartMarket Reports™

Get smart about the latest industry trends.

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SmartMarket Report

The Business Value of BIM

for Water Projects
Premier Partners: Supporting Partners:

Research Partners:

SmartMarket Brief Premier Partner

LEADING THE FUTURE OF BUILDING

Connecting
Teams