Modular construction is becoming much more common, and we at Concept Capital Group understand why. Our manufacturing partners, Knight Mobile Homes, utilise the modular construction process to build the park homes at the centre of our Buy-to-Let Park Home Investment Opportunity. But what is modular construction? How does it differ from traditional construction? And is it better?
Modular construction is an off-site construction method, where individual elements are manufactured in a factory, transported to the site, and completed there. This is an alternative to ‘traditional’ construction, commonly known as ‘bricks and mortar’. Traditional construction involves the completion of individual steps to take place largely building on-site and each step needs to be completed before the next phase can start.
Modular construction takes place in precision engineered factories, so the standard remains consistent and weather conditions are often irrelevant. Moreover, not only does modular construction offer greater quality control during the manufacturing process but also many health and safety risks are reduced, if not eliminated. Traditional exposed construction environments can result in varying standards and inconsistency due to factors such as weather damage and inconsistent manufacturing environments.
Modular construction provides fixed build costs as manufacturing takes place in factories and is delivered to the site with 95% of the home already complete. The consistent standard and uniform manufacturing process reduces the chances of any surprise costs. Traditional construction is more likely to experience material delays, damage, and theft, resulting in varying build costs.
The modular construction process can be 50% quicker than traditional construction. Work can take place simultaneously on-site and in the factory, creating shorter and more predictable timelines, and assembly on-site can take just a few hours. Traditional construction is reliant on work being completed in stages, meaning any delays impact the entire project timeline as every step needs to be completed before the next can begin, plus, the schedule is heavily dependent on weather conditions.
Fun Fact: 66% of firms who currently use modular experience reduced project schedules, with 35% experiencing decreases of four weeks or more.
The shorter build times of modular construction allow our investors to receive their returns sooner and with less exposure to changes in market conditions, as opposed to the unpredictable build times in traditional construction which tie up an investor’s funds for longer. At Concept Capital Group, the manufacturing of park homes begins as soon as payment for the park home is received, after that, it is 60 to 90 days until the investor receives their first payment. This efficiency is possible because new homes are built quickly through modular construction.
Modular construction reduces waste and the build’s carbon footprint as fewer people are travelling to the site and units are produced exactly to specifications every time. Moreover, the impact on the surrounding community is significantly lower because of the reduced noise and traffic during the project build period. Lastly, the methods employed in modular construction often benefit the energy efficiency and airtightness of the final construction, keeping bills and energy usage low for the tenant.
Modular construction has triggered a new wave of construction innovation and is proving to be the most efficient, sustainable, and economic form of construction, while never compromising on quality. Our investors are excited about the solution our investment opportunity provides to the UK housing crisis and it is clear to see that more and more, the popular option is becoming modular construction.