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Modular Construction Premium Calculator

Modular sometimes costs premium. This calculator compares.

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Modular premium

-$50,000

Modular all-in

$21,950,000

Net savings/premium

$50,000

How the math works

Modular all-in = modular + transport + site prep premium + design. Premium = all-in − site-built.

Run modular math at full all-in cost, not just factory unit price. Transport, crane set, and precise site prep often add 10-15% that isn't in the factory quote. Modular wins most clearly on 200+ unit projects in high-labor-cost markets; below that threshold, math often disappoints.

How to Use

  1. Enter site-built hard cost.
  2. Enter modular hard cost.
  3. Enter transport and set cost.
  4. Enter modular site prep premium.
  5. Enter design/engineering.
  6. Read net modular premium or savings.

Frequently Asked Questions

Modular vs site?

Modular: whole rooms or sections built in factory, shipped, set on site. Cost varies by market — sometimes 10-20% premium (high-cost markets), sometimes 5-15% savings (mid-cost markets). Schedule usually 30-50% faster.

Best use cases?

Repetitive units (hotel rooms, apartments, dorm rooms). Remote sites (labor cost premium). Short schedules. Each benefits modular. Custom/complex buildings or non-repetitive spaces: not modular-friendly.

Hidden costs?

Transport costs 2-8% of modular cost. Site prep often more rigorous (precise foundations). Crane set day costs $30-80k. Design must accommodate transport clearances. Add 5-10% for these often-overlooked items.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.

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