The Cost of Modular Commercial Building Construction
What to consider when determining the cost per square foot of a modular commercial building project
How Much Do Modular Commercial Buildings Cost?
Choosing modular for commercial building projects offers many benefits, chief among them cost savings. While speed is the top reason to go modular over on-site construction, cost is the second. Universal Modular, Inc. (UMI) offers clients a pendulum of services, from handling the building and installation alone to completing full turnkey projects.
With numerous design options available, rarely are two projects the same. Universal Modular completes each project to fit the customer’s needs in accordance with the land footprint available. While many factors affect costs, project estimates benefit from the details that customers are able to provide early on. The more you can communicate about your project goals, the better.
Modular Building Types
Customers can think of modular buildings like Legos—space and materials permitting, there is no footprint size limit. Universal Modular primarily deals with traditional roll-on modular buildings, ISO shipping container conversions and portable modular buildings. The type of building each customer needs depends on how they plan to use it.
Traditional Roll-on Modular Buildings
This kind of modular building is used often by the U.S. Department of Defense and is a go-to pick for many commercial clients. In addition to standard applications, traditional roll-ons are ideal for customers who need a modular component to fit within a larger building project, those who want a project completed expeditiously, and customers who need a swing space for employees while a long-term building renovation is underway.
ISO Container Conversions
As the name suggests, this modular process involves converting a 20- or 40-foot ISO container into the customer’s space of choice. Customers who need smaller spaces for workstations, break stations or office storage often choose this option.
Portable Modular Buildings
While traditional modular buildings are attached to the ground, each portable modular building is attached to a large metal skid, providing customers with a mobility option. Instead of being permanently attached to the earth, a portable modular building can be pulled onto a flatbed truck or transported by crane if it needs to be relocated.
Cost and Logistical Benefits of Modular Buildings
On-site construction projects always involve a bit of a learning curve, but modular projects embrace a factory production process that is more efficient and cost-effective.
Cost
With on-site construction, your project’s physical location can involve extra costs associated with local safety and union requirements. Once construction is underway, all the materials required for that process need to be at your project site.
Modular building projects use an assembly line production process off-site, which results in an efficiency that is difficult, if not impossible, to replicate with on-site construction. This factory-style process also enables the factory to purchase raw materials in bulk, a big cost saver that translates directly to customers.
Logistics
While site development must finish first with on-site projects before building can begin, the factory-style process used with modular construction allows site development and building fabrication to happen concurrently. The modular method can thus cut the total lifecycle of many projects in half when compared with on-site building.
The biggest wildcard is the planning and permitting process, much of which is dictated by a project location’s local jurisdiction. This is true for both on-site and modular projects. Design fabrication and building completion are the steps that benefit most from modular construction in terms of costs and overall project timelines.
What Tends to Increase (and Decrease) Cost
Though modular commercial building projects are ultimately less costly than on-site construction projects, there are several elements that can fluctuate costs from one modular project to the next.
Size
It might sound counter-intuitive, but the smaller a modular building project is, the more it costs per square foot. This is due to the fixed costs associated with every project. For example, the entry door can cost the same for a small ISO container conversion project as it will for a project triple the size, but that fixed cost equates to more money per square foot when it covers a smaller space.
Function
Your project’s intended use also impacts the costs needed to build it. A modular building used for office space might require restrooms, kitchenette appliances, fire sprinklers and more. The layout also affects cost, with open-air office spaces costing less than those outfitted with individual offices.
Cost similarly varies for buildings intended for storage or server equipment. For example, a storage space used for heavy equipment or documents requires more floor loading capacity, while a space intended for multiple loaded data racks will require additional floor loading capacity as well as additional cooling equipment.
Finished Materials
Another swing in cost can come from customers’ finish materials selections. Paint-grade doors, commercial carpet squares and laminated countertops tend to cost less. Swapping those for choices like stain-grade doors, luxury carpet and stone countertops will increase costs.
Location
Customers who handle site development and permitting themselves can save money by eliminating the need for Universal Modular to serve as an intermediary. Excluding site development, a project’s location can affect the cost of its construction if it is difficult to access during the installation process. Though it is possible to transport modular units to their final destination by crane, it costs more to do so.
Cost Examples
While costs are mostly driven by project size, there are several factors specific to each project that can impact the overall cost estimate. Below are a few general estimates without those important factors added in:
500 to 1,500 square feet: $250 to $350 per square foot
1,500 to 5,000 square feet: $200 to $300 per square foot
5,000 square feet or larger: $175 to $250 per square foot
Modular commercial building construction enables you to have your projects completed faster and at lower cost than on-site construction. It is always our goal to fit the needs of each individual customer. Before the process starts, it is vital for you to know what you want and need, as those details help Universal Modular in drafting cost estimates and project execution. Contact us to help you determine those details and receive a custom quote for your project.