FAQs
Introduction
Modular construction is growing rapidly, but many stakeholders still have important questions about how it works, how it’s financed, and how it impacts communities. This FAQ section is designed to provide clear, concise answers for the three groups we work with most closely: developers, lenders, and municipalities.
FAQs for Developers
Q1. Is modular construction actually faster than traditional building?
Yes. By running factory production and site preparation in parallel, projects can be delivered 30–40% faster than conventional methods.
Q2. Will modular restrict my design flexibility?
No. While modules have standardized structures, façades, layouts, and finishes are highly customizable. From modern high-rises to mixed-use communities, modular adapts to your design vision.
Q3. What project types are best suited for modular?
Multifamily housing, hotels, student housing, healthcare facilities, and offices — essentially, any project with repeatable units and a need for speed-to-market.
Q4. How does modular affect my pro forma and IRR?
Faster delivery means revenue begins sooner. On average, developers see a 20–25% increase in IRR compared to conventional schedules.
FAQs for Lenders
Q1. Why does modular require a different lending approach?
Because most project value is created upfront in the factory, financing must align with earlier capital needs. Traditional draw schedules tied only to on-site progress don’t work for modular.
Q2. How is my risk protected if funds are released earlier?
Safeguards include:
● QA/QC inspection records,
● third-party certifications,
● escrow accounts tied to module production, and
● collateral value of completed modules.
Q3. What happens if modules are built but not yet set on-site?
Completed modules are tangible, insurable assets that hold real value. They can be stored in bonded facilities until set, protecting lender investment.
Q4. Is modular riskier than traditional construction?
No. In fact, modular offers greater transparency — with documented inspections and faster delivery reducing long exposure periods.
FAQs for Municipalities & AHJs (Authorities Having Jurisdiction)
Q1. Does modular meet local building codes?
Yes. Modules are designed to comply with the same codes as traditional buildings and are inspected at both the factory and the site level.
Q2. Will modular projects disrupt neighborhoods less?
Absolutely. With most work done off-site, neighborhoods experience less noise, dust, and traffic. Modules are craned into place in days or weeks, rather than months of on-site disruption.
Q3. How does modular help address housing shortages?
Faster timelines mean units come online months earlier, directly easing housing supply gaps. Modular also supports affordability by reducing waste and labor inefficiencies.
Q4. Are modular buildings permanent?
Yes. These are not temporary structures — they are built with steel and concrete to last decades, just like conventional buildings.
Conclusion
Whether you’re a developer evaluating feasibility, a lender underwriting risk, or a municipality planning community growth, modular provides faster, safer, and more sustainable solutions.